Money Management

More rewards means more for you to enjoy. 

Although credit cards tend to get a bad rap, as long as you pay your bills on time and in full every month, they can actually be a helpful tool. Not only can they help you build credit, but they can also put extra money in your pocket.

It’s common for credit cards to offer reward programs that give you some sort of benefit for the purchases you’re making. In some cases, your rewards might come in the form of air miles. In other cases, they might come in the form of points you can redeem for gift cards.

But either way, your goal should be to snag the maximum amount of rewards you’re eligible for. And these tricks could help you ramp up your rewards balance in the new year.

1. Take advantage of bonus cash back

Many credit cards offer 1% cash back on most purchases, but will then give you 2%, 3%, or even 4% cash back on specific purchase categories, like gas and groceries. Make sure you’re well-versed in the details of your various credit cards’ rewards programs so you can capitalize on bonus reward points or cash back by using the right cards in the right places.

2. Pay attention to revolving reward categories

It’s common for credit cards to have revolving reward categories that change on a quarterly basis. You might, for example, be eligible for extra cash back or reward points at hardware stores during the first quarter of the year and then extra points at restaurants during the second quarter of the year. Pay attention to those different bonus categories and put them on your calendar so you know which cards to swipe at what point during the year.

3. Chase a sign-up bonus at the right time

Many credit card companies will give you a lump sum of reward points or cash back as a new cardmember. All you have to do is meet a specific spending threshold in a certain period of time — usually within three months of opening your new card. If you time your credit card applications strategically, you might manage to take advantage of those sign-up bonuses and earn added rewards or cash.

So, let’s say you’re planning a vacation in August. Applying for a new credit card with a sign-up bonus in July could be a good bet. That way, as you rack up charges for hotel stays, meals on the go, and entertainment, all of those extra purchases will count toward the spending requirement needed to score your bonus. If you apply at a time when you’re not spending more money than usual, you might struggle to meet the bonus requirements — or, worse yet, push yourself to spend money needlessly to get your sign-up bonus.

Credit card rewards are a wonderful perk — one you should try to make the most of in the new year. These tips could be your ticket to extra rewards and the many awesome things they can buy you.

Top credit card wipes out interest until 2024

If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.

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 

It’s a tactic that could really pay off. 

If you spent much of December running to stores and searching Amazon for hours to check gift items off your list, then the last thing you may want to do in January is shop online or set foot in a mall. And also, if you racked up a giant credit card tab last month, then you may want to go easy on the purchasing front this month.

But if you have some financial wiggle room and you’re not totally suffering from retail fatigue, then it could pay to do some shopping in January. Here’s why.

It’s all about snagging deals

You’ll often hear that the best deals to be found tend to drop during the holidays — especially during major shopping events like Black Friday and Cyber Monday. But that’s not always the case.

You’ll commonly find that retailers will offer the deepest discounts on products right after the holidays. The reason? They have excess inventory they’re looking to unload.

When you think about it, snagging great deals on products really boils down to supply and demand. During the holiday season, demand tends to be strong because consumers have gifts they need to buy. And also, many people end up with year-end bonuses they’re eager to spend rather than save. That, too, can lead to strong demand.

Meanwhile, come January, the demand for goods tends to wane. The holidays are over and many people, unfortunately, end up starting off the year with leftover holiday debt. And that makes it a great time to hit the stores and load up on items you need or even want (assuming money isn’t an issue).

What items should you shop for in January?

Money may be tighter than you’d like it to be these days due to factors like inflation and recent holiday expenses. If that’s the case, any shopping you do in January should be limited to needs only.

Did your toaster oven die on you recently? That’s a good item to replace this month, especially if you can find one at a discount. Has your go-to pair of sneakers started to show major signs of wear? You need good shoes to avoid injury if you do a lot of walking and exercising, so now could be a great time to replace them. But if you’re short on funds, stick to items that fall into the needs category, and save your wants for another time — even if it means forgoing some bargains.

On the other hand, if money isn’t an issue, then now’s a good time to scoop up some wishlist items you may not have purchased earlier. It could be that you got a giant raise to kick off 2023, which gives you more options for spending money. Or maybe you got a year-end bonus last month that you didn’t dip into yet. In that case, you can have a little more fun with your January shopping. Just do your best to stay out of debt.

All told, January can be a good time to buy things at a discount. And as long as you shop judiciously, you could land in a great position to enjoy some serious bargains.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If 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 review

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 

Don’t miss out on these discounts. 

We may be past the holiday season, but that doesn’t mean retailers aren’t continuing to offer a host of great deals across a range of categories. Amazon is certainly one of them. And it pays to check out these limited-time deals if you have wiggle room in your budget to make extra purchases on the heels of the holidays.

1. Amazon Essentials Men’s Sherpa-Lined Full-Zip Hooded Fleece Sweatshirt

That description alone might sound like a mouthful. But it’s winter, it’s cold, and it’s a great time to load up on cozy items for those times you need to be outdoors running errands or shoveling snow. And right now, you can snag 45% off of an Amazon Essentials fleece zip-up, bringing the price down to just $19.20.

2. Amazon Essentials Women’s Heavyweight Long-Sleeve Hooded Puffer Coat

It’s not just men who need to stay warm this winter. If you’re in need of a coat upgrade, it pays to head to Amazon. You can snag this versatile coat at a 45% discount, which brings its price to $41.10. Plus, if you’re a Prime member, you can use the Try Before You Buy option to sample this coat before getting charged for it.

3. TurboTax Home & Business 2022 Tax Software

Nobody wants to be thinking about taxes at the very start of the year. But unfortunately, the April filing deadline might arrive before you know it. And the last thing you want to do is get stuck rushing through your taxes and making a mistake as a result. Right now, Amazon has TurboTax Home & Business 2022 Tax Software on sale for 37% off. You’ll spend $75.99 for the option to file a federal and state tax return as an individual and small business owner.

4. XTERRA Fitness TR Folding Treadmill

If one of your New Year’s resolutions is to exercise more, then it may be time to invest in a treadmill. Better yet, get yourself a folding treadmill like this model so it doesn’t have to take up loads of space when you’re not using it. Right now, it’s on sale at Amazon for 7% off. That’s not the steepest discount, but it brings the price down to $359.99. Given that many of Amazon’s on-sale treadmills are coming in at over $1,000, this is a good way to kick-start your exercise routine without racking up too high a credit card balance.

5. SUNHE YHK Kids Magnetic Tiles Toys, 100 Pieces

If you have kids, you know how popular magnetic tiles are for children of all ages. And now, Amazon has this 100-piece set on sale for $35.19. That’s a 41% discount. Even though the holidays are behind us, you may want to stock up for next Christmas, or a birthday that might be in the middle of the year.

Although Amazon offers great deals year-round, these particular bargains may not last past January. In fact, just because these deals are available at the start of the month doesn’t mean they’ll be around the entire month. So if any of these appeal to you or check off a need, you may want to get moving and scoop them up sooner rather than later.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If 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 review

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, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

 Read More 

When investors become illogical, you may have the makings of an economic bubble. 

When a particular asset is valued significantly higher than its actual worth, it’s known as a “bubble.” And to be clear, economic bubbles burst. At some point, it’s as though everyone admits, “Yeah, we knew that was overvalued.”

1. Bubbles are nothing new

As long as there’s been money to be made, there have been economic bubbles. There are plenty of historical examples. Here are two of them.

Tulipmania (1634–1638)

The Dutch are known for their love of tulips and have poured their hearts and souls into developing the many different varieties. At first, it was wealthy Europeans who became tulip enthusiasts. By the mid-1630s, the tulip craze caught fire, and even middle-class and poor families wanted the bulbs to plant.

With so many people vying for bulbs, the tulip market went wild, reaching its peak in 1636. Now, this is where things get interesting. As the price of tulips increased, people started thinking, “Hey, if I can get my hands on bulbs at a fair price, I can resell them at a higher price and become rich.”

People mortgaged their homes and businesses just to buy bulbs for resale. And what they were willing to pay for a single Viceroy tulip bulb got out of hand. So many people bought into the myth that tulips were worth a king’s ransom that when the bubble finally burst, the Netherlands was plunged into an economic depression.

Takeaway: Just because others say an asset is hot doesn’t mean it will be a moneymaker.

Dot Com Bubble (1990s)

A bubble that may be more familiar to contemporary readers is the internet or dot com bubble of the 1990s. As the internet became available in consumers’ homes and the tech industry appeared ready to take over the world, investors wanted in on the action.

The more people invested money in dot com stocks, the more others developed FOMO (fear of missing out). Pretty soon, people who had no interest in tech were throwing all the money they could find into the industry. On Nasdaq, tech values soared, and many were convinced they’d invested in the right thing.

Soon, stocks were selling for far more than they were actually worth, and when the bubble burst and stock values crashed, millions lost money.

Takeaway: Economic bubbles have risen and burst time and time again. Because we know that it’s possible for any asset to become overvalued, it’s up to us to use our common sense when the rest of the world appears to be going mad.

2. There are four stages

The investors who make money in an economic bubble are those who get in early and then sell before the bubble bursts. Unfortunately, it’s impossible to accurately time the market. However, understanding that the typical bubble consists of four stages can give you a sense of when it’s time to see yourself to the door.

Stage one: Stealth phase

A small number of people see promise in a new investment opportunity.

Stage two: Awareness phase

More people want in, and prices increase. The media catches on and the investment gains further exposure.

Stage three: Mania phase

Prices continue to climb, the hype grows, and the potential for easy money appears limitless. Investors become irrational, willing to pay anything to get in on the “sure thing.”

Stage four: Blow-off phase

There’s a cooling of sorts. Suddenly, people begin to admit that prices have gotten out of hand and that the asset has an unrealistic value. The media reports become negative. Buyers lose interest, the bubble bursts, and prices plummet.

Takeaway: Avoid the rush to buy during the mania phase. You’re likely to overpay.

3. There’s still a chance to make money

Overly enthusiastic investors explain why bubbles are formed. However, what goes up must come down, and that’s where a smart investor picks up the best deals. Once buyers lose interest and investors sell off, you’re likely to find bargain basement prices.

Let’s say the bubble that burst was in the housing market. Prices drop, and you realize = you could snag a fair deal on a property to rent out or flip. A bubble bursting doesn’t necessarily mean that the asset was a stinker. It just means that people allowed their emotions (and greed) to drive their decision making for a time.

Takeaway: Once a bubble has burst, examine the asset from every direction to determine whether it’s a good investment at the new, lower price.

Few things in life are all bad or all good, and the same is true of economic bubbles. Knowing how to avoid the mania and capture a bargain basement price on your investments is your superpower.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If 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 review

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 

If you’re hoping for more stimulus money, you should check this tweet out. 

On Dec. 31, 2022, President Joe Biden sent out a tweet celebrating the accomplishments of his administration. The president indicated that “we signed historic legislation to lower costs for working families and seniors, help keep our communities safe from gun violence, and create good-paying jobs across the country.”

The first part of the president’s tweet, however, could be of special interest to those who are hoping more stimulus money will hit their bank accounts in 2023.

President Biden’s tweet makes clear there’s more to do to help families

Although the president’s tweet was optimistic and positive about all the steps that have been taken to help individuals and families, the first part of his statement makes clear that there is more on his agenda.

“We’ve got more work to do,” the president said.

Although he did not elaborate on the specifics of this statement in his tweet, he likely was referring to some of his unfulfilled priorities that were included in the Build Back Better legislation that was proposed throughout the first part of his term but that did not pass.

Build Back Better contained many different provisions, but one of the most important was the extension of the expanded Child Tax Credit.

Biden had campaigned on this credit, and it was included in the stimulus relief bill that his administration passed to help families out during COVID-19. Many Democrats have expressed their support for continuing it, and it is one of few possible forms of stimulus relief that could potentially have bipartisan support.

Will families get more help in 2023?

If Biden continues to push for the expanded Child Tax Credit, and if some Republicans get on board, there’s a very real possibility that parents will get more stimulus money in 2023.

The expanded Child Tax Credit did not offer direct payments to as many people as some of the other stimulus checks did. But, parents received generous assistance. The American Rescue Plan Act offered parents $3,600 per year for children under age 6 and $3,000 per year for children aged 6 to 17. The credit was fully refundable, and half the money was deposited into bank accounts throughout the year with the rest claimed upon filing tax returns.

There’s no guarantee the credit will be expanded this year and, in fact, it’s likely an uphill battle since Republicans are taking control of Congress and those on the right have different ideas of how this credit will work.

Still, Biden’s acknowledgement that there is more to be done to help families should be an encouraging sign for those hoping for this type of stimulus aid.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If 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 review

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