Money Management

It pays to open one if you qualify. 

Healthcare is one of those unavoidable expenses that can be a burden at any stage of life. And unfortunately, medical bills have the potential to drive consumers into debt — and even into bankruptcy.

Thankfully, there have been recent changes to credit reporting that can help protect consumers with medical debt from having their scores take a massive hit. But even so, owing money for healthcare can be a stressful situation.

It’s not surprising, then, to learn that 67% of Americans are worried about medical bills, according to the latest BMO Real Financial Progress Index. But there’s one specific account it pays to look at that can help you set money aside for healthcare costs.

Does your health insurance plan work with an HSA?

If you have a high-deductible health insurance plan — defined as an individual deductible of $1,500 or more in 2023 and a family deductible of $3,000 or more — then you may be eligible to contribute money to a health savings account, or HSA. And if so, it makes sense to jump on that opportunity.

The reason? HSAs come loaded with tax breaks that make it easier to save money for healthcare purposes.

The money you put into an HSA is tax-free, the same way you don’t pay taxes on money you put into a traditional IRA account or 401(k) plan. Then, you can invest any money in your HSA that you don’t need to use right away for healthcare spending.

As that money grows, you won’t pay taxes on your investment gains (whereas with a regular brokerage account, you do pay taxes on gains like that). And then, HSA withdrawals are tax-free as long as that money is used for qualified medical bills. Those, however, run the gamut from copays at doctors’ offices to medications to dental and vision services.

Another option to look at

If your health insurance plan is not compatible with an HSA, you can always put money into a flexible spending account, or FSA. But these plans aren’t quite as helpful as HSAs.

While you get to enjoy tax-free contributions with an FSA, and tax-free withdrawals for healthcare expenses, you can’t invest the money you don’t need right away. In fact, with an FSA, you’re forced to spend down your account balance every year, and you risk forfeiting any funds that are left over.

With an HSA, your money never expires. You can carry it forward for decades and use it in retirement if you want.

In fact, one of the best ways to benefit from an HSA is to specifically not deplete your plan balance every year if you can help it. That way, you can leave money invested so it can grow into a larger sum over time. And then, come retirement, you might have a dedicated means of covering healthcare costs at a time when they’re likely to rise.

No matter which type of plan you qualify for, though, it’s a good idea to set aside funds for healthcare purposes. Doing so could prevent you from losing sleep over the idea of costly medical bills — which, incidentally, is not exactly a good thing for your health.

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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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These tips could help you spend less and bank more cash. 

There’s a reason consumers on a budget often flock to Walmart for everything from holiday gifts to everyday shopping. Not only does Walmart offer a vast selection of products, but it also tends to offer competitive prices on the items it sells.

If you do a lot of shopping at Walmart, or if you plan to in 2023, then you should know there are different ways you can eke out even more savings. Here’s how to spend less — and save more — in the new year.

1. Take advantage of price matching

Like many major retailers, Walmart doesn’t shy away from price matching. If you buy something at Walmart and see it on sale a week later, don’t assume you’re stuck with that higher price, even if you’re no longer able to return the item in question. Just head over to Walmart with your receipt, and you may be eligible for a price match with no hassle.

2. Stick to Walmart brands

You’ll find a host of recognizable brands when you walk the aisles at Walmart. But if your goal is to enjoy added savings, you may want to stick to Walmart brands. Grocery items labeled Great Value, for example, are those that fall under the Walmart brand, and you’ll commonly pay a lot less for staples like dried goods and snacks with that label.

3. Sign up for Walmart+

If you only shop at Walmart on occasion, then a Walmart+ membership may not be so economical for you. But if you shop there often and tend to put in a lot of online orders, then it may be worth it to sign up for Walmart+ despite the cost involved.

With Walmart+, you get free shipping on any order. There’s no minimum to meet. Plus, you can earn rewards on eligible purchases and redeem them to save money on future purchases, the same way you can earn rewards on a credit card and redeem them later for things like gift cards or cash back.

Plus, Walmart+ members can save up to $0.10 per gallon on gasoline across a wide network of gas stations. If you drive a lot, the savings there can really add up.

You will be looking at $12.95 a month to join Walmart+. But if you’re willing to pay for a full year of the service upfront, it’ll cost you just $98.

Furthermore, if you’re on the fence about Walmart+, you can sign up for a free 30-day trial and see how useful it is for you. If you find that it doesn’t save you as much money as you would’ve hoped for, all you need to do is cancel, and your credit card won’t be charged. But you may find that hanging onto Walmart+ allows you to enjoy a world of savings throughout the year.

Get ready to enjoy big savings

The simple act of choosing Walmart over another retailer could be enough to save you money on things like food, household supplies, and apparel. But if you employ these tips, you might manage to squeeze out even more savings in the course of 2023. And since we’re starting off the year with still-high inflation levels, that’s very important.

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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 has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

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Ready to tackle some home projects? 

Ah, Home Depot. The smell of freshly cut lumber, the bustle of activity around the paint section. There’s something about home projects and all the materials you need for them that is just exciting. As we head into a new year full of possibilities, you might be making a list of all the projects you plan to take on over the course of the year. To that end, right now Home Depot has some excellent deals on tools to help you maintain your home and make it more comfortable for you and your family. Check out these items to keep your credit card tab low and make 2023 a great year at home. These deals run Dec. 29, 2022 to Jan. 5, 2023, so don’t miss out!

1. A closet organization system

Is your bedroom closet hiding a deep, dark secret? From the outside, no one would ever guess that your clothes and shoes are scattered within, in complete disarray. If it takes you many minutes every morning to find an outfit, you need the Closet Evolution Dual Tower Closet System. It fits closets from six to 10 feet, and comes with 30 feet of shelf space and nine feet of hanging space. The system hangs on your closet wall, so while you will have to assemble it (all required hardware comes with it), you won’t have to cut or remove your baseboards. This kit normally retails for $949, but it’s on sale for 15% off — you can get it for $806.65.

2. A freestanding garage cabinet

Garages are great to have, both to keep your car safe and out of the weather (especially this time of year) as well as for storage. And just like your closet, a disorganized garage can definitely make life harder. Consider picking up a Husky Freestanding Garage Cabinet to help with this problem. It assembles quickly and easily, and even comes with the tools required. When you’re finished, you’ll have a storage space six feet high by four feet wide, with adjustable shelves to fit all your garage gear. And the feet are adjustable too, so if your garage floor is a bit uneven, this cabinet can compensate. It usually retails for $499.99, but this week you can score it for 30% off — $349.99.

3. An adjustable height workbench

While you’re adding storage to your garage, you might want to look at your work space too. If you enjoy doing home projects and need space to spread out, consider the Gladiator Adjustable Height Birch Top Workbench. This gorgeous piece of functional furniture is eight feet wide and the height adjusts in 1.5 inch increments from 27.5 inches to 40.8 inches. It’ll hold up to 3,000 pounds! You can get it for $479.99 this week, a savings of 20% off its list price of $599.99.

4. A sleek space heater

I’d consider a good space heater to be a must-have purchase for surviving winter, and if you live in a cold part of the country and want to save money on your heating costs, I recommend you check them out. Space heaters let you heat one room at a time to a comfortable temperature, while keeping your whole-house heating system set lower, saving you money on those winter utility bills. Consider the Comfort Zone Radiant Quartz Tower Heater. This sleek black space heater comes with two heat settings and it will shut off automatically if it’s tipped over — a very important safety feature. In my area, it’s going for $64.98, but prices may vary at your store.

5. A compact pressure washer

Maybe you’re already tired of winter (I sympathize) and are making plans to do some major outdoor cleaning once spring is here. Or you’re planning to sell your home in 2023, and know how important curb appeal can be. Either way, you’re in luck, as you can score a RYOBI Electric Pressure Washer for $239 this week. This compact pressure washer is great for home use and has a 13 amp electric motor. It’ll help you clean your driveway, vinyl siding, windows, and more.

These deals are good until Jan. 5, 2023, so hit up your local Home Depot (or the Home Depot website) to scoop them up while you can.

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.

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Paying off your mortgage early can become more than a dream. 

There are pros and cons associated with paying a mortgage off early. On one hand, if your interest rate is very low and you can earn a higher APY on investments than the APR you’re paying your mortgage lender, paying the loan off may not be a priority. However, if you’re paying a higher interest rate, preparing to retire, or simply can’t stand a mortgage hanging over your head, here are six ways to pay it off early.

1. Refinance

Refinancing a home means taking out a new mortgage to pay off the old one. The cost to refinance a mortgage ranges from 2% to 6% of your loan amount. Unless you pay those refinance fees upfront, they’ll be rolled into your new mortgage. For example, if you owe $300,000 and refinancing fees total $12,000, if that’s rolled over into your new loan, that means you’ll finance a total of $312,000.

If you have a 30-year mortgage, refinancing is the perfect time to trade it for a 15-year fixed mortgage — one of the easiest ways to pay your property off fast.

2. Pay extra each month

Let’s say you have a 30-year mortgage at 5.5% and owe $300,000 on your home. Your principal and interest payment runs around $1,700 per month. By applying an extra $250 per month toward the principal, you’ll shave seven years and nine months from the time it takes to pay the loan in full. Better yet, you’ll save $93,300 in interest.

If you’re going to make extra payments, remember to inform your lender that you want them applied to the loan principal, not interest. Otherwise, you may find that your lender applies the extra payments toward future scheduled payments.

3. Round your payment up

If you want to keep it simple, pay more than is due each month by rounding up. For example, if you have a principal and interest payment of $1,580, round up to an even $1,600. Anything extra you pay cuts down on the time it takes you to retire the mortgage.

4. Make one extra mortgage payment per year

Let’s say you receive an annual bonus from work or routinely receive a tax refund. Applying it to your mortgage can make a huge difference. For example, using the scenario from above, let’s imagine you owe $300,000 on a home with a 30-year fixed rate of 5.5%. Applying $4,000 to the principal once a year cuts nine years and two months from the time it will take you to pay the mortgage off, and it saves you more than $108,600 in interest.

5. Pay biweekly

Using the same scenario once again, simply making half payments twice a month will slash the time it takes to have a mortgage-burning party. For example, instead of paying $1,700 per month, you would pay $850 every two weeks. Adopting biweekly payments means the loan will be paid off five years earlier and save more than $60,500 in interest since you’ll end up making a full extra payment each year.

6. Add $1 per month

The $1-extra-per-month plan is easy to implement and works well if you expect your income to increase over time. As the name implies, you simply increase your monthly mortgage payment by $1 each month. So, if your mortgage payment starts out at $1,700, the next month, you’ll pay $1,701, and so on. The first year you’ll only pay an extra $66, but that’s a good start. As long as you keep adding one dollar each month, you’ll cut years from the time it takes to retire your mortgage.

If paying your mortgage off early is a goal, you can always mix and match ideas to speed the process up even more. For example, you could make biweekly payments and add $1 extra to each payment. Just make sure your mortgage company knows that all extra payments should be credited to the loan principal.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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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Image source: Getty Images
What happenedThe Twitter account for Kevin O’Leary, a.k.a. Mr. Wonderful of Shark Tank fame, @kevinolearytv, appeared to be hacked by crypto scammers Thursday. It sent out multiple now-deleted tweets about a crypto giveaway of 5,000 Bitcoin (BTC) and 15,000 Ethereum (ETH), although the accompanying image listed 5,000 ETH. The links to these giveaways prompted respondents to send their own cryptocurrency funds first to verify their wallet address.These scams typically involve a fake Twitter account impersonating the celebrity in question. In this case, hackers were able to access O’Leary’s real account and send out a series of tweets. This included a tweet saying, “My accounts was not hacked! Last night I said on TV that I was going to do a giveaway. Enjoy,” as recorded by Jordan Major of Finbold in an early report on the hack.
Discover: Best places to buy bitcoinMore: Check out our updated list of best crypto apps including one offer with a $100 crypto bonus
So whatEarlier this year, crypto scam losses since 2021 hit $1 billion. Cryptocurrency scams are common, and as more people have started investing through crypto apps, fraud reports have skyrocketed. Crypto scams target unsuspecting people, and you could be one of them. A crypto giveaway scam, like the one in question here, is a popular type of scam designed to get people to send scammers their cryptocurrency. Scammers impersonate a celebrity online, normally choosing one associated with crypto such as O’Leary. They send messages claiming to be holding a giveaway for anyone who wants to participate. The link to the “giveaway” includes a crypto wallet address, instructions to send funds to verify your own address, and a promise that you’ll get twice as much or more back.Scammers keep all the cryptocurrency they’re sent as part of the supposed address verification and never send anything back. Since cryptocurrency transactions are irreversible, the victims have no way to recover the funds they send.Now whatIf you own cryptocurrency, or you’re planning to buy some, it’s imperative that you know how to protect yourself. When you send your cryptocurrency to another wallet, it’s gone. There’s no way to dispute the transaction and get it reversed. Cryptocurrency doesn’t have the safeguards of traditional financial products, like credit cards or bank accounts.Never send cryptocurrency to any unknown wallet addresses. Only transfer cryptocurrency to your own wallet or to someone else if you personally know the recipient. Make sure you have the correct wallet address, as well. Any mistake could result in your transfer being sent to the wrong place and lost forever.Understand too, what you should and shouldn’t be sharing about your crypto assets. You wouldn’t give out a credit card number, address, and security code to a random website, nor should you be giving out details of your crypto holdings.Remember that if your credit card gets hit with a scam, you usually have an ally in the financial institutions backing your card. That’s not the case with crypto. Don’t get fooled by crypto giveaways, no matter who announces them. It’s OK to be skeptical, and if it seems too good to be true, it probably is. The fact that hackers were able to share a scam through O’Leary’s Twitter account is another sign of how careful you have to be.
Our picks for the best credit cards
Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.
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.Ally is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Target. The Motley Fool has a disclosure policy. 

What happened

The Twitter account for Kevin O’Leary, a.k.a. Mr. Wonderful of Shark Tank fame, @kevinolearytv, appeared to be hacked by crypto scammers Thursday. It sent out multiple now-deleted tweets about a crypto giveaway of 5,000 Bitcoin (BTC) and 15,000 Ethereum (ETH), although the accompanying image listed 5,000 ETH. The links to these giveaways prompted respondents to send their own cryptocurrency funds first to verify their wallet address.

These scams typically involve a fake Twitter account impersonating the celebrity in question. In this case, hackers were able to access O’Leary’s real account and send out a series of tweets. This included a tweet saying, “My accounts was not hacked! Last night I said on TV that I was going to do a giveaway. Enjoy,” as recorded by Jordan Major of Finbold in an early report on the hack.

So what

Earlier this year, crypto scam losses since 2021 hit $1 billion. Cryptocurrency scams are common, and as more people have started investing through crypto apps, fraud reports have skyrocketed.

Crypto scams target unsuspecting people, and you could be one of them. A crypto giveaway scam, like the one in question here, is a popular type of scam designed to get people to send scammers their cryptocurrency. Scammers impersonate a celebrity online, normally choosing one associated with crypto such as O’Leary. They send messages claiming to be holding a giveaway for anyone who wants to participate. The link to the “giveaway” includes a crypto wallet address, instructions to send funds to verify your own address, and a promise that you’ll get twice as much or more back.

Scammers keep all the cryptocurrency they’re sent as part of the supposed address verification and never send anything back. Since cryptocurrency transactions are irreversible, the victims have no way to recover the funds they send.

Now what

If you own cryptocurrency, or you’re planning to buy some, it’s imperative that you know how to protect yourself. When you send your cryptocurrency to another wallet, it’s gone. There’s no way to dispute the transaction and get it reversed. Cryptocurrency doesn’t have the safeguards of traditional financial products, like credit cards or bank accounts.

Never send cryptocurrency to any unknown wallet addresses. Only transfer cryptocurrency to your own wallet or to someone else if you personally know the recipient. Make sure you have the correct wallet address, as well. Any mistake could result in your transfer being sent to the wrong place and lost forever.

Understand too, what you should and shouldn’t be sharing about your crypto assets. You wouldn’t give out a credit card number, address, and security code to a random website, nor should you be giving out details of your crypto holdings.

Remember that if your credit card gets hit with a scam, you usually have an ally in the financial institutions backing your card. That’s not the case with crypto. Don’t get fooled by crypto giveaways, no matter who announces them. It’s OK to be skeptical, and if it seems too good to be true, it probably is. The fact that hackers were able to share a scam through O’Leary’s Twitter account is another sign of how careful you have to be.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.Ally is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Target. The Motley Fool has a disclosure policy.

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These could all yield nice results. 

We’re getting to the point of the year when a lot of people are committing themselves to New Year’s resolutions. And some of those might be financial in nature.

Now you’ll often hear people say things like, “I’m going to spend less money this year,” or “I’m going to finally pay off my credit cards for good.” And boosting your savings is a popular New Year’s resolution to aim for. But in the course of putting together your list of pledges, it pays to consider adding these less common but important financial tasks.

1. Check your credit card balances every week

Some people don’t glance at their credit card balances until their actual bills come due. And by then, they’ve already racked up so many charges they can’t pay them off in full.

That’s why you should pledge to check your credit card balances on a weekly basis in 2023. If you see that they’re starting to climb, it might prompt you to spend more carefully for the remainder of the month to avoid landing in debt or adding to existing debt.

2. Check your credit report every quarter

Your credit report is something you probably don’t think about too often. But it’s an important document to read through.

Your credit report gives you a snapshot of your borrowing history, and it tells you how you present yourself as a borrower. It will list your outstanding loans and open credit card accounts and show how timely you are with paying bills and how much of your available credit you’re using.

Checking your credit report once a quarter will not only give you a sense of how you’re doing financially in terms of managing and paying loans and obligations, but it might also alert you to fraud you’ve fallen victim to. If you see an open account listed on your credit report that you don’t recognize, you’ll know to investigate.

Credit reports will be free on a weekly basis in 2023. But checking yours weekly may be overkill. A quarterly check will generally suffice, though if you’re following up on a specific issue, you may want to check every few weeks.

3. Invest $50 a month

Investing thousands of dollars every month may not be doable for you right now. So start small. Commit to investing $50 every month, either in an IRA account or taxable brokerage account, if you’re just starting out, and then do your best to ramp up over time. The sooner you begin investing money, the sooner you can start growing it into a larger sum.

If you’re not sure how to start investing, one option is to simply buy exchange-traded funds, or ETFs. These allow you to effectively buy a whole bunch of different stocks at once rather than have to choose companies on an individual basis. That may fall better into your comfort zone if you’re first learning how to vet a stock.

You may have a number of different New Year’s resolutions on your radar for 2023. But while these three may not have made your list initially, it certainly pays to give them a spot.

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.

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