Money Management

Relocating involves far more than you might realize. 

If there’s one thing I can claim to be a reluctant expert on, it’s moving. As of this writing, I’m up to 35 moves, and 10 of those were in the last 10 years alone. I grew up moving around a lot, and it’s a practice I continued into adulthood, thanks to college, graduate school, and my old career, which was extremely location based and required me to pull up stakes every few years to get a new position and advance myself.

Moving is hard, but there are degrees of it. As an adult, I’ve moved short (one block) and long (more than 1,000 miles) distances multiple times, and the longer distance moves require a lot more logistics… and a lot more financial considerations. Keep reading to learn what you should consider in the process of planning such a move.

1. What’s the actual cost of living?

Your finances figure into moving in every case, whether it’s the shortest of moves or the longest. While you may only need to worry about the cost of renting a moving truck, hiring movers, and purchasing boxes if you’re moving within the same area, if you’re looking at a complete relocation, there’s a lot more to think about.

The area you’re considering moving to may have a very different cost of living than where you live now. As such, it’s important to do your research and find those numbers. Bestplaces.net is a great resource that will even let you compare cost of living factors for two cities side by side, so you can see how your finances will be impacted by a move. And if the city you’re interested in comes with higher housing, utilities, or healthcare prices, you will want to know before you take on the concrete tasks of moving, like finding housing or a new job. The cost of living will likely also have an impact on whether you’ll be renting or getting a mortgage to buy a home.

2. Where will you work?

With the exception of my last move (which coincided with the career change that made me a remote worker and no longer tied to an employer geographically), all of my moves were spurred by school or work. If you’re not moving for a specific job, you must suss out the employment opportunities ahead of time. If you’re an educator, a healthcare worker, or are in another field where people are always needed, you can probably find work just about anywhere. It may not pay what you’re hoping for, though. If you’re in a niche field (as I used to be), I’d caution you against choosing a new city without considering where you’ll work.

If you’re already a remote worker, you have less to consider as far as work is concerned. However, you may find yourself taking a pay cut if your employer’s pay scale is based on local cost of living and you’re moving from an expensive area to a cheaper one. Discuss a potential move with your employer to ensure you’re on the same page.

3. Does the climate and geography work for you?

Being comfortable where you live is a major factor influencing happiness. If you hate long cold snowy winters, maybe don’t move to a place that has them (and if you do — learn to grin and bear it, or appreciate the area for other reasons). Similarly, if you long to live near an ocean, moving to a landlocked place will likely work against your happiness.

4. Is it the right place for your whole family?

If you have a live-in partner, spouse, or kids (or some combination thereof), you need to think about everyone’s needs in planning a big move. Will there be employment opportunities for your spouse? How about good schools for your kids? Also consider activities on offer in your new potential city, like kids’ sports leagues and opportunities for outdoor recreation. Safety should also figure into your decision; everyone deserves to feel as secure and safe as possible at home, and if crime or severe weather events are a problem in your new city, it will eat away at your peace of mind (and likely cost you more for homeowners insurance or auto insurance).

5. Can you afford to move?

Finally, don’t get so tied up in figuring out the future costs and considerations for moving that you forget to also look at the cost of the move itself. You can move cheaply, but as I have found, it’s a far less traumatic experience if you can afford to rent the right size moving vehicle, buy moving supplies (such as plenty of sturdy boxes), and even hire help in the form of movers. If you’re relocating for a job, your employer may be willing to help you. If not, you could turn to your savings, or even a moving loan.

Moving is never as easy or cheap as you hope it’ll be, but it’s often worth it, whether you’re moving for a new employment opportunity, to be closer to family, or to find a place that feels like home. Consider the above factors before you start seriously working on a moving budget.

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It’s possible to dine out strategically and save money. 

Dining out is one of those everyday luxuries that nearly anyone can afford, at least once in a while. It’s very nice to walk into a restaurant, be seated, order whatever you want, and have it be served to you — no cooking or washing dishes afterwards required. That said, it’s extremely easy to blow your budget if you go overboard on dining out.

The most recent report from the Consumer Price Index showed that the cost of “food away from home” (as the U.S. Bureau of Labor Statistics designates non-grocery food spending) was up 8.5% from November 2021 to November 2022. Thanks, inflation.

I’m a fan of small non-chain restaurants in my city, and have definitely felt the pinch of paying more for my meals lately. I’m happy to still buy restaurant meals, because I want these businesses to survive — it’s been a hard couple of years for restaurants, too. To that end, I’ve been collecting little ways to save money on dining out. Read on for some ideas to try the next time you go out.

1. Skip the alcohol

Ordering alcohol in a restaurant has an immediate large impact on your final bill. Alcohol markup in restaurants is often about 200%, according to How Stuff Works. Plus, a restaurant that serves alcohol requires additional (and sometimes expensive) licensing, especially if it serves hard liquor and not just beer and wine. For this reason, it’s a good idea to skip the booze if you’re hoping not to run up a big credit card tab on your night out.

2. Consider the appetizers

I am frequently in the position of being more interested in the appetizer section of the menu than the meals. If this is you too, then why not lean in? You can save some money by picking an appetizer instead of a full meal, and if it doesn’t feel “complete” enough, tack on a side salad with it. You can also specify to your waitperson that you want it brought out with the meals (I’ve never been given grief for this).

3. Look for coupons or deals

It’s a fantastic move to use coupons or other direct ways to spend less. You can find restaurant coupons through various websites, apps, and even in your mailbox at home. It’s worth flipping through that sheaf of coupons you might get occasionally to see if there are any for restaurants you frequent. Also, check to see if your favorite places have deals like happy hour pricing, free kids’ meals on certain nights, and discounts for military members or seniors. Finally, your credit card might have cash back deals with certain restaurants. Your card’s mobile app is a great place to find them.

4. Don’t order something you’d cook at home

This is my mother’s trick, and I absolutely use it as well. Dining out should be special, and as such, I try to order food I don’t make myself at home. For one thing, I know how to cook a steak to the perfect medium rare, and I have yet to dine in a restaurant that can manage it. For another, if I order that steak, I’ll just feel bad that I paid three times as much as I would have to cook it myself. If you really want to feel as if you’re getting your money’s worth on a meal, order something you enjoy but is a rare treat. Note: this is not me giving you permission to order the $40 lobster if it’s not in your budget!

5. Check out the menu ahead of time

Every time I’m going to try a new restaurant, I look up the menu online. This prepares me in a few ways. I get to make sure the restaurant truly appeals to me (ever visit a restaurant where nothing on the menu sounds good?). And I also get to scope out the prices. This is an especially handy trick if you’re on vacation and unsure of which restaurants are more expensive. If you know you have $30 to spend for lunch, and based on menu prices, that bistro is going to sell you a $50 lunch, you know to find a different place.

6. Use the right credit card

While using a restaurant credit card won’t save you money directly, you will have the opportunity to earn some cash or points back on your restaurant spending, and that’s definitely a good thing.

One of the most common ways to save money you’ll find mentioned everywhere is “stop dining out!” While restaurant meals can be expensive, I’d argue that if something adds joy to your life, the best thing to do is find ways to save money on it. If you can change how you approach eating in restaurants and end up keeping more money in your bank account, that’s a win win.

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Here’s how a college student can decide if life insurance is a necessary purchase. 

As a college student, life insurance may not seem like a top financial priority. In fact, many people who are in college are still relying on their parents for financial support — rather than offering support to other people who would be affected by their untimely death.

But, the reality is, there are some circumstances when students may wish to buy a life insurance policy. Here’s why.

Should a college student buy life insurance?

Whether a college student should buy life insurance is going to depend both on current and future circumstances.

Not all college students are in the same position. Some students don’t work, earn income, or have anyone relying on them to provide services or financial support. But, others do. College students who have children of their own, or who have parents or other relatives relying on them for income or help doing life tasks, may need a life insurance policy to care for their loved ones.

College students who do not currently have dependents may also want to think about buying coverage for the future. It can be cheaper and easier to buy life insurance at a young age. Getting a term life policy while in college may cost very little. And buying the policy while young and healthy can enable a college student to get protection in place before any pre-existing conditions develop that could complicate the purchase of coverage later on.

A college student who plans to get married and start a family after graduating, for example, may benefit substantially from buying an affordable policy that will be in effect for the next 30 years or so. Once their plans come to fruition, the premiums on that policy will remain very low and it will offer important protection for their future spouse and children.

Likewise, college students whose parents or loved ones would face serious financial hardships if they had to cover funeral costs, may want to buy at least a small policy to spare their loved one that fate should tragedy strike.

How much coverage should a college student purchase?

In some cases, it can be difficult to determine how much life insurance to buy — especially if a policy is being purchased with the plan to care for future dependents.

Generally, a person who is buying life insurance will want enough coverage to:

Repay their debtReplace their income for the number of years their family will need itCover their mortgage loanPay for their children’s education

For a college student who doesn’t yet have income or kids or a mortgage, it can be a real challenge to come up with this estimate. In this case, it may be better to opt for a simpler formula — estimate the likely future salary that will be earned after graduating and multiply it by 12.

Buying any coverage can go a long way toward making sure future loved ones are protected, though, so college students should look at what coverage is available to them — and what fits within their budget — when deciding on the best course of action for getting life insurance.

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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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It’s a good time to find a reliable tax professional. 

Filing a tax return can be complicated. Granted, this may not be true if the only income you’re reporting is your salary and the interest you earned in your savings account. But if you’re itemizing on your tax return or claiming different deductions related to self-employment, then it absolutely pays to hire a professional to help get your taxes filed.

Some people, however, make the mistake of waiting until February, March, or even April to line up tax help. Here’s why it really pays to seek out tax help in January instead.

1. You want the pick of the litter

Tax professionals who are great at what they do tend to get booked up early on in the season. If you want to hire someone with solid experience and a great reputation, start making calls in January. If you wait too long, you might lose out on your first choice due to a lack of availability.

Even if you already have a tax professional you work with, it wouldn’t hurt to reach out to them in January, confirm their availability, and let them know you intend to use their services. The last thing you want is to reach out to your tax preparer in March only to learn that they retired in February.

2. You want your refund sooner

The IRS begins accepting tax returns at the end of January. The sooner you file yours, the sooner you can expect your refund to hit your bank account if you’re owed money. That’s an important thing given the way so many people are having trouble covering bills due to inflation.

But even if you aren’t struggling with inflation, your refund represents money the IRS owes you. Why wouldn’t you want to set yourself up to get it as early as possible?

3. You’re afraid of a big tax bill, and you want to start planning for it

Although most people who file a tax return wind up being due a refund from the IRS, some people end up owing money. If you’re convinced you’ll land in the latter category, then it definitely pays to line up tax help in January. The sooner you get a sense of what you’ll owe, the sooner you can plan for it.

There are penalties and interest that can begin to accrue against you if you don’t pay your tax bill in full by the filing deadline — which, this year, is April 18. If you meet with a tax professional in January and they run some preliminary numbers, you might come to realize that you owe the IRS $7,000 that you don’t have.

At that point, though, there may be options you can play around with in the coming months, like selling some investments to free up cash. So the sooner you get a sense of what your IRS bill looks like, the better.

January may not be a popular time to focus on taxes. But seeking out tax help this month could help you land a great tax preparer, snag your refund sooner, and cope with a giant tax bill.

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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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Image source: Getty Images
What happenedTesla has reduced the prices of some of its vehicles globally, including in the United States. Price cuts vary by model, with some cars reduced by nearly 20%. Consumers who take delivery of a qualifying new electric vehicle by March 2023 may be eligible for up to $7,500 in federal tax credits based on current clean vehicle tax credit rules that took effect on Jan. 1.So whatTesla is a leading brand in the electric vehicle industry, and news of recently slashed prices may entice more consumers to purchase an electric vehicle in early 2023. The following Tesla models are now discounted in the U.S. market — with the previous prices and new, lower prices listed for each Tesla model below: Vehicle Model Previous Price Current Price as of Jan. 13 Model 3 Standard Range RWD $46,990 $43,990 Model 3 Performance $62,990 $53,990 Model Y Long Range AWD $65,990 $52,990 Model Y Performance $69,990 $56,990 When purchased and delivered by March 2023, some new electric vehicles may qualify for federal clean vehicle credits of up to $7,500. Taxpayers hoping to take advantage of this tax credit must meet the adjusted gross income requirements outlined by the IRS. Not all taxpayers will qualify for up to $7,500 in credits, as it’s dependent on their tax situations. Vehicles must undergo final assembly in the U.S., meet manufacturing requirements, and have an MSRP that doesn’t exceed: $80,000 for vans, sport utility vehicles, and pickup trucks$55,000 for other vehiclesThe U.S. is set to outline new rules regarding sourcing raw materials and battery components for electric cars that qualify for federal tax credits. Plans to update these rules have been delayed at least until March 2023. Once the rules change, it could impact which electric vehicles qualify for the credit. Now whatThe newly slashed prices and potential EV tax credit opportunities could result in significant savings for eligible taxpayers. While electric vehicles are an investment, they can offer substantial savings. Along with rising food and living expenses, gasoline prices have greatly impacted many Americans’ personal finance situations in recent years. Consumers considering an electric car should verify whether the vehicle qualifies for current clean vehicle tax credits before buying, if they hope to take advantage of tax savings. If you’re unsure about current tax laws, speak with a tax professional. Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’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.Natasha Gabrielle has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. 

What happened

Tesla has reduced the prices of some of its vehicles globally, including in the United States. Price cuts vary by model, with some cars reduced by nearly 20%. Consumers who take delivery of a qualifying new electric vehicle by March 2023 may be eligible for up to $7,500 in federal tax credits based on current clean vehicle tax credit rules that took effect on Jan. 1.

So what

Tesla is a leading brand in the electric vehicle industry, and news of recently slashed prices may entice more consumers to purchase an electric vehicle in early 2023. The following Tesla models are now discounted in the U.S. market — with the previous prices and new, lower prices listed for each Tesla model below:

When purchased and delivered by March 2023, some new electric vehicles may qualify for federal clean vehicle credits of up to $7,500. Taxpayers hoping to take advantage of this tax credit must meet the adjusted gross income requirements outlined by the IRS. Not all taxpayers will qualify for up to $7,500 in credits, as it’s dependent on their tax situations.

Vehicles must undergo final assembly in the U.S., meet manufacturing requirements, and have an MSRP that doesn’t exceed:

$80,000 for vans, sport utility vehicles, and pickup trucks$55,000 for other vehicles

The U.S. is set to outline new rules regarding sourcing raw materials and battery components for electric cars that qualify for federal tax credits. Plans to update these rules have been delayed at least until March 2023. Once the rules change, it could impact which electric vehicles qualify for the credit.

Now what

The newly slashed prices and potential EV tax credit opportunities could result in significant savings for eligible taxpayers. While electric vehicles are an investment, they can offer substantial savings. Along with rising food and living expenses, gasoline prices have greatly impacted many Americans’ personal finance situations in recent years.

Consumers considering an electric car should verify whether the vehicle qualifies for current clean vehicle tax credits before buying, if they hope to take advantage of tax savings. If you’re unsure about current tax laws, speak with a tax professional.

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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.Natasha Gabrielle has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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