Money Management

Opening up new credit cards isn’t on my agenda in the new year. 

I opened a new credit card in 2022 in order to take advantage of some airline perks the card offered. This made a lot of sense now that our family is finally traveling again after the COVID-19 pandemic has waned.

I am really happy with the new card, but I’m committed to not opening up any new credit cards in 2023 — despite the fact that opening this one worked out well. There’s a simple reason why I’m just saying no to new cards in the coming year.

Opening up new credit cards could come at too big of a cost

I will not be opening up any new credit cards next year in case my family and I end up having to take out a new mortgage.

I had sworn off taking out new mortgage loans due to the hassle involved with the paperwork. But we have decided recently that we are going to buy a new home (rather than building one as we had originally planned).

With our desired neighborhood and our needs for a home that can accommodate our family, we may end up having to borrow money to make our purchase. Paying cash for a home isn’t the smartest decision, and if we can’t sell our current house for enough money to pay for the entire cost of the new home, we don’t want to tie up any new money that we would be better off investing elsewhere.

If we do end up taking out a mortgage loan, we want to qualify for the best rate possible at this time of high rates. And opening up a new credit card could mess that up for us, causing us to pay more money for the larger loan we’d be taking on.

How could a new credit card hurt our mortgage prospects?

Getting a new credit card could have an adverse impact on our ability to qualify for a mortgage at the best rate because the card could hurt our credit score and credit record.

Since I already opened a new card in 2022, I have an inquiry on my credit record that mortgage lenders will see when I apply for my home loan. If I were to open any more new cards in 2023, I’d have more inquiries, and this could make lenders worry about whether I’m being irresponsible or getting in over my head with debt.

The inquiry from my last card also lowered my credit score, as did the fact that the new card meant my average age of credit was shorter. I don’t want that to happen again and reduce my credit score even further before I potentially apply for a mortgage.

The good news is, I already have my airline credit card I can use for travel perks as well as a great general purpose rewards card I can use for everything else. But, even if I didn’t, it’s more important to prioritize a great rate on a mortgage I’ll have for decades than to get a better credit card — even if I have to miss out on some rewards and perks for a while.

If you’re also considering getting a new card, think first about whether you’ll be doing any major borrowing soon. If you will, wait until you get your bigger loan before you take a hit to your credit score by opening a new credit card account.

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If you’re planning on taking a trip, check out these tips to cut costs. 

COVID-19 put an end to travel for many people for several years. But with lockdowns over and safe vaccines and boosters now available, chances are good you’re taking trips again. While that may be good for your psyche, it’s not necessarily great for your wallet.

If you don’t want to give your credit cards too much of a workout as you make up for lost time, you may want to check out these tips from finance expert Dave Ramsey to help you save on travel costs.

1. Consider baggage costs when choosing your airline

Ramsey recommends bringing a carry-on instead of a checked bag when you can, as fees are generally lower for handheld luggage you bring aboard rather than for checking bags. If you do need a suitcase, though, Ramsey suggests checking out airlines that make it cheaper to bring one — like Southwest, which actually allows two free checked bags.

Packing light and paying attention to baggage fees is a great tip worth following, as paying to bring lots of luggage can sometimes double the cost of your flight (especially if you got discounted tickets).

Another way to reduce this expense (and one Ramsey wouldn’t recommend due to his anti-credit-card stance) is to sign up for a travel card that offers free checked bags as one of its perks.

2. Book your ticket at a strategic time

Your timeline for booking air travel can actually determine the price. Ramsey suggests buying a ticket around three and a half months before departure, or three weeks out.

If this works with your timing and you either know in advance where you want to go or aren’t afraid to book last minute, this advice is also worth listening to. There’s no reason to pay more than necessary for a flight just because you aren’t aware of the optimum time to buy your ticket.

3. Travel on cheaper days

If you can be flexible with when you leave for your vacations, Ramsey says this can also help save you money. Flights taken on Tuesdays, Wednesdays, and Saturdays tend to cost less than planes departing on other days of the week.

It may be hard to implement this advice depending on your work’s vacation policy and whether you have kids in school or not. But if it doesn’t matter to you when you leave, traveling on these days can both help you reduce costs and enable you to avoid bigger crowds.

4. Avoid big tourist attractions

Ramsey suggests you will usually pay less to go on vacation if you select areas off the beaten path rather than the biggest tourist destinations.

This can be great advice if you want to avoid crowded places and do something different. Of course, popular tourist destinations are usually popular for a reason, so don’t compromise on your wish to visit your dream city or island in paradise just to save a few bucks.

5. Ask for free upgrades

Finally, Ramsey’s last great tip is to simply ask for free upgrades. You can do this at the airport and your hotel. If you make your request politely, you never know when someone may give you a better seat or a nicer room — especially if you’re celebrating a special occasion.

Each of these tips can do a lot to help make your vacation cost less, so try them out next time you go on a trip.

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Should you jump at the opportunity to buy, or sit tight? 

It’s hardly a secret that the demand for homes has slowed down considerably this year. We can thank expensive borrowing rates for that.

Although mortgage rates dipped modestly in December compared to where they sat months prior, at this point, those who take out a mortgage are looking at more than twice the rate they would’ve gotten at the end of 2021. And that, combined with still-elevated home prices, has led to a notable decline in home sales.

In fact, existing home sales have now declined for 10 consecutive months, according to recent data from the National Association of Realtors (NAR). The question is: Should buyers rush to purchase a home in light of this trend? Or does waiting pay off?

It’s not a good time to buy

There’s a reason home sales have fallen in the course of 2022 — it’s really not a great time to be buying. If you purchase a home today, you’ll be hit with a higher mortgage rate and a higher home price than normal.

Plus, there’s still a glaring lack of housing inventory to contend with. The NAR reports that as of the end of November, there was only a 3.3-month supply of available homes on the market. For context, it generally takes a 4- to 6-month supply of homes to meet buyer demand in full. So not only might you get stuck paying more for a home today, but you might also get stuck having to compromise on the home you end up with due to a very limited selection.

Make sure you can afford to buy

You may decide that you’ve waited long enough to become a homeowner, and that you’re just plain going to take the leap, even with housing prices and mortgage rates being up. But if that’s the case, you’ll want to make sure you’re not getting in over your head. And to that end, the 30% rule can guide you in the right direction.

The rule essentially states that your monthly housing costs should not exceed 30% of your take-home pay. But your mortgage payment isn’t the only expense to account for in that equation. Rather, your total housing costs should come in at 30% or less of your take-home pay. Those include things like property taxes, HOA fees, if they apply to you, and homeowners insurance costs.

If you can stick to that 30% threshold, then you’re in pretty good financial shape to buy — even if you do get stuck with a higher purchase price and mortgage rate than you’d like. And remember, mortgage rates are apt to drop at some point down the line. Once they do, you can always try to refinance your mortgage and lock in a lower interest rate on it.

It’s definitely still a tricky time to buy — there’s no question about it. So while you may be motivated to dive in after seeing that home sales have been declining, that doesn’t necessarily set the stage for a successful endeavor.

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The quick answer? It depends on the source. 

A lot of us spend hours each week on social media — even if we’d rather not admit it. And while we might spend our fair share of time scrolling through our friends’ feeds, some people specifically use social media to get information, whether it pertains to local businesses, recipe tips, doctor recommendations, or investing advice.

If you tend to get a lot of investing advice from social media, you’re in good company. A recent FINRA Foundation report found that 60% of younger investors use social media as a big source of investment information. By contrast, only 35% of investors aged 35 to 54 and just 8% of those 55 and older do the same.

Meanwhile, the report found that YouTube is the most popular social media channel for investing advice. And over 50% of investors under age 35 turn to YouTube for that purpose.

But is getting investing advice from social media a bad thing? It sort of depends.

Know your source

There’s plenty of great advice on YouTube and other social media channels — if you know where to find it. Take Your Rich BFF, for example. Ex-Wall Street Trader turned financial literacy advocate Vivian Tu is a popular YouTube personality who puts out short videos educating investors on everything from buying stocks to managing debt. And her advice is often spot-on.

Twitter can also be a great source of investing advice. If you follow big names like Suze Orman and Ramit Sethi, you might get great advice that leads you to make sound decisions in your brokerage or IRA account.

But if you’re going to turn to social media for investment advice, it’s important to vet your sources first. Someone like Suze Orman is trustworthy — Orman has made a name for herself in the personal finance space.

But what if you stumble across a YouTube channel for a random guy named Bob who spends his days sharing investment advice? Should you listen?

Well, if Bob has a 20-year history as an investment banker, maybe. But if Bob’s just a guy who likes talking about investing, you may want to be more careful.

Of course, the tricky thing is that sometimes, everyday people and investors are full of great advice. So listening to Bob might actually be a good idea — it’s just hard to know. But even so, unless you’re familiar with the source or they have a solid reputation and large following, you may want to proceed with caution.

Another great place to get investment advice

It’s okay to tune into social media for investing advice, but another place you may want to look is your very own brokerage account. Many brokerages are filled with educational resources that can teach you what you need to know about investing. And it pays to take advantage of that material, especially when you’re first starting out.

Another good bet? Talk to a financial advisor. You don’t need to be rich to justify hiring one. And an advisor might be able to not only help guide you toward your personal goals, but also, help you filter out social media advice that’s just plain toxic.

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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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Talk about a nice payday. 

If you’ve been tempted to take on a side hustle, you’re no doubt in good company. And if you’ve decided not to take that leap, well, that’s understandable also.

The reality is that working a side hustle could mean making a pretty big commitment. And when you already have a full-time job, finding the hours can be a challenge.

You might also be hesitant to take on a side hustle because you’re not convinced it will pay off. And the reality is that some gigs aren’t as lucrative as others.

But in a recent Neighbor.com survey, two-thirds of Americans who have a side hustle earn up to $500 a month from it. And that’s not a small amount of money. So before you write off the idea of a side gig because you’re convinced there won’t be enough financial upside, you may want to reconsider.

A side hustle could work wonders for your finance

You may not manage to earn $500 a month from your side hustle. But what if right now, you’re struggling to pay your bills and are adding $100 a month to an already growing credit card balance? Even if you only earn $200 a month from your side hustle, it could be enough to help you avoid racking up debt and start digging out of the hole you’re in.

Plus, a side hustle could make it possible to pump more money into your savings account. That could buy you some protection in case unplanned bills pop up when you’re not in a good place to handle them.

Even if you’re doing reasonably well financially, wouldn’t it be nice to be able to take a vacation or spring for concert tickets on a whim? Your regular paycheck may not allow for that. But your side hustle could make it possible to spend money on the things you love without worry.

How to earn more from a side hustle

Earning a decent income from a side hustle could boil down to a few things:

Choosing the right gigPutting in enough hoursGetting really good and efficient at what you do

So, let’s say you decide to make jewelry as your side hustle. If you’re only able to make about $5 per piece, and it takes you an hour to make each piece, then you’re not going to earn a lot of money. But if you choose a gig like digital editing, where you can command, say, $25 an hour, you’ll boost your income a lot more.

Meanwhile, some gigs become more lucrative if you put in the time. Driving two hours for a week for a ride-hailing service may not do much for you financially. But if you ramp up to 10 hours a week, that’s a different story.

Finally, it’ll help to find something you’re good at. If you charge $300 for a small business website update and you’re able to do that work in three hours, well, that’s a nice hourly rate you’ll be looking at.

All told, there is money to be made in the world of side hustles. You just have to adopt the right approach to get it.

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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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With deals like this, why spend more than you have to at the drive-thru? 

Burger King makes it easy to get an affordable and quick meal. While fast food prices are low when compared to sit-down restaurants, you can save even more money by taking advantage of mobile app discounts. Burger King is one of many fast food eateries with discounts available in its app. Here are a few ways to save up to $9 with deals found in the Burger King mobile app.

1. BOGO Whopper

Burger King’s classic go-to burger is the Whopper. If you’re craving the flame-grilled taste, don’t forget to activate this mobile app deal. Instead of paying double the price, you can enjoy two Whopper sandwiches for the price of one.

Retail price for all menu items: $11.58

Discounted price: $5.79

Total savings: $5.79

2. $6 biscuit sandwich combo

This one is perfect for those mornings when you’re in a rush but want a filling meal. You can score two biscuit sandwiches, a small hash brown, and a small coffee for $6. That sounds like a delicious and affordable way to start the day.

Retail price for all menu items: $11.66

Discounted price: $6

Total savings: $5.66

3. $8 small Impossible Whopper meal

We didn’t forget about our vegetarian friends. Burger King sells a meatless Impossible Whopper. This deal goes for $8, so you’ll leave the drive-thru without draining your bank account. You’ll get one Impossible Whopper, small fries, and a small soft drink.

Retail price for all menu items: $11.77

Discounted price: $8

Total savings: $3.77

4. $7.99 for two Original Chicken sandwiches and two small fries

Here is a simple way to save money when buying lunch for you and a friend. For $7.99, you’ll get two Original Chicken sandwiches and two small fries. With this deal, you’ll pay less than half the regular menu price.

Retail price for all menu items: $16.56

Discounted price: $7.99

Total savings: $8.57

5. $22 ultimate bundle

You don’t want to miss this deal if you need dinner for the whole crew. While the $22 price tag may sound high, you’ll leave with a lot of food. For $22, you’ll drive off with two Whopper sandwiches, two Original Chicken sandwiches, and two 8-piece chicken nuggets. You don’t have to go into credit card debt to get a tasty meal for your family.

Retail price for all menu items: $28.14

Discounted price: $22

Total savings: $6.14

6. $11.99 small Whopper meal for two

This is one of the best bargains in the mobile app and is perfect for a day when you want to treat your favorite work pal to lunch. For $11.99, you can enjoy two Whopper sandwiches, two small fries, and two small soft drinks. It sounds too good to be true, but it’s not.

Retail price for all menu items: $21.14

Discounted price: $11.99

Total savings: $9.15

7. $4 biscuit sandwich and medium hash browns

This affordable breakfast combo is a nice choice if you need a fast meal that won’t leave you feeling too full. You’ll get a biscuit sandwich of your choice and medium hash browns for $4. This deal makes for a low-cost way to start a busy day.

Retail price for all menu items: $6.28

Discounted price: $4

Total savings: $2.28

All of these fast food deals are a win for your wallet. It’s worth noting that Burger King’s menu prices vary throughout the country, so these prices may be different in your area. While writing this article, we used Pittsburgh metro area prices, and the totals listed are pre-tax.

Keep more money in your pocket with discounts like this

If you’re not using fast food mobile apps to save money, you may want to start doing so. Apps are free to download and use and make it easy to keep more money in your bank account. These Burger King discounts will satisfy your fast food cravings while allowing you to continue to stick to your personal finance goals.

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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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