Money Management

These tips can help you break that unfavorable cycle. 

If you’re living paycheck to paycheck, you’re most certainly not alone. Many people need to wait for their next paycheck to arrive to cover their bills and don’t have much breathing room in between.

But no matter why you’re in that situation, it’s not a great one to be in. It can make for a very stressful existence, especially when unplanned bills creep up on you.

If you’re tired of living paycheck to paycheck, worry not. There are steps you can take to bust out of that cycle in 2023. Here’s what to do.

1. Start following a budget

The better a pulse you have on your money, the easier it should be to manage it. To this end, it pays to set up a budget if you haven’t been following one. That budget should account for your various monthly bills, and, ideally, it should help you identify costs you can cut to free up some money for your savings.

2. Pick up a second job temporarily

You may not have a lot of time — or desire — to work a second job on top of your main one. But if you want to boost your income and stop living paycheck to paycheck, then you may need to make that sacrifice for a bit of time — say, six months or even a year.

That doesn’t mean your side job has to be burdensome, though. You can find a gig that’s flexible and works well with your schedule (for example, you can sign up to drive for a ride-hailing service and pick up fares when you have time). You may even manage to find a second job you can do completely from home.

3. Build an emergency fund

Having money in your savings account will make it so you’re able to pay your bills even before your next paycheck arrives. And following a budget and working a second job could make it possible to build up some savings you can tap for unexpected expenses.

In fact, you should ideally have enough of a savings account balance to cover three months of essential living costs in full. It might take some time to get there, and you may not hit that target in 2023, but the more you are able to save, the better.

4. Shed costly debt

If you owe money on your credit cards, your monthly payments are no doubt monopolizing a large chunk of your income. And so the sooner you pay off your balances, the sooner you can start freeing up money for other things.

A second job could make it possible to chip away at your debt more quickly. But also, you can try to find ways to make your credit card debt easier to pay off. That could mean consolidating your debt with a balance transfer or personal loan.

If you’re frustrated with the paycheck-to-paycheck lifestyle, know that you’re not trapped in it permanently. You can take these steps to improve your financial situation so you end up in a much better place by the end of 2023.

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 

A freebie could make your next hotel stay even better. 

If you’re traveling soon and plan to stay at a Kimpton Hotels property, you can score a free, valuable freebie. All you have to do is say the secret password at the check-in desk. Keep reading to learn the current secret password and learn more about what freebies you can earn. You can make your stay even more memorable by putting the password to use.

Kimpton Hotels goes above and beyond

Kimpton Hotels & Restaurants is a boutique hotel brand. The chain is known for doing things a bit differently than other hotels. How so? Kimpton Hotels is pet-friendly, doesn’t charge pet fees, has yoga mats available in each guest room, and offers an evening happy hour. Some properties also have hotel-specific extras to make your stay better.

The brand is also known for offering freebies to guests who say the secret password. The password changes seasonally, so you must keep up with the latest password to get free perks. Kimpton Hotels announces the latest password through social media. This is just another unique touch that makes the popular travel brand stand out.

Say “the snuggle is real” at check-in

Now through Feb. 20, 2023, the Kimpton Hotels winter password is “the snuggle is real.” Don’t forget to say the password during check-in. Otherwise, you’ll miss out on a free extra. Free perks vary by property.

Some examples of potential perks include:

Free bottle of wineRoom upgradeFree parkingDrink vouchersFree breakfast

The secret password program makes for an easy way to upgrade your next trip without spending extra money. Freebies like free parking, complimentary breakfast, and free drink vouchers can help you stretch your vacation budget further and could improve your stay.

Four tips to save on your next hotel stay

Booking a hotel for your next vacation? Don’t miss out on opportunities to keep more money in your pocket. These tips may help you save money on your stay:

Join the hotel’s free loyalty program: Don’t miss out on valuable perks offered to loyalty members. By joining the hotel’s loyalty program, you may get a cheaper rate when booking directly with the hotel. You may qualify for other perks as a rewards member, too.Use price comparison tools to find a better deal: Many online tools make it easier to find cheap travel deals. Use price comparison tools to research prices before deciding which hotel to book.Book a refundable reservation and monitor prices: If you’re booking far in advance, it can be beneficial to book a refundable reservation early on and then monitor prices as you get closer to your check-in date. You may be able to find a lower price and rebook at the lower rate.Don’t wait to book: If you book a hotel at the last minute, you’ll likely pay a much higher price than necessary. It’s best to book earlier if you want an affordable rate.

If you’re making travel reservations, using travel rewards credit cards is an excellent idea. You can earn valuable points and miles, which you can later redeem for free travel. Take a look at our list of best travel rewards credit cards to learn more.

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 

Could this explain why a card issuer turned you down? 

When you apply for a new credit card, there is no guarantee the card issuer is actually going to let you open up an account. In fact, card application denials are more common than you might think.

Before you request a new card to keep in your wallet, check out these common reasons why you could potentially be turned down.

1. Your credit score isn’t high enough

Card issuers check your credit score and credit report when determining if you should be approved for a credit card or not. There are some companies that cater to people with imperfect credit and that may approve you for a card even if you have a low score. But for other cards — especially those with generous rewards programs — you may need good or even great credit to get approved.

2. You applied for too many other credit cards recently

Some credit card companies have strict limits for how many cards you can apply for in a short time period before you won’t be approved any more.

Card companies limit you from opening too many cards for a number of reasons. Some fear that you’re going to get in over your head in debt. Others may be concerned that you’re only opening the card to get a sign-up bonus available to new customers — not to use it over the long term.

Whatever the reason, if you’ve been on a borrowing frenzy and you try to apply for lots of new credit cards, you’re inevitably going to get cut off at some point.

3. You owe too much money already

If you have a substantial amount of debt, credit card companies may be concerned that you aren’t going to be able to pay back all that you owe as well as the additional sums they lend to you.

While the exact amount of credit you can be extended can vary based on your income, as well as by card issuer, if you’ve maxed out your cards or owe thousands of dollars on loans and have high monthly payments, there’s a good chance you’ll be denied if you try to apply for more credit.

4. You’re too young

Typically, if you are under the age of 18, you will not be able to get credit without a cosigner. And, if you’re a college student without income of your own, it may also be difficult to get extended credit thanks to protections in the CARD Act that limit lending to students without proven income sources. There are credit cards that are especially for college students, though.

In each of these four situations, you may have options if you’re denied a card. You could apply again with a cosigner, for example, or you could work on improving your credit score or paying down existing debt and try to apply again. You can also look around for a different credit card that may have more relaxed qualifying requirements.

If you are denied credit, though, stop and consider whether perhaps you need to get your financial house in a little better shape before borrowing again. This denial could potentially be a wake-up call that debt paydown or improving your credit are the best moves you can make right now.

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 

You could qualify for free nutritious meals. 

The Supplemental Nutrition Assistance Program, also known as SNAP, is a vital resource for many Americans who are struggling to make ends meet. It is the largest federal nutrition assistance program. Eligible low-income individuals and families are able to purchase eligible food in authorized retail food stores. However, there are certain eligibility requirements that must be met in order to qualify for the program. Understanding these requirements is key to determining if you qualify and learning how to apply for benefits.

Who is eligible?

In order to qualify for SNAP benefits, an individual or family must meet certain income and asset limits. These depend on your household size and whether anyone in the household is elderly or disabled. Generally speaking, households must have a gross monthly income of less than 130% of the federal poverty line. For a family of three, the poverty line used to calculate SNAP benefits for 2023 is $1,920 a month. For a three-person family the limit is $2,495 a month, or about $29,940 a year.

Net income, which is gross income minus allowable deductions, must be at or below the poverty line. The poverty level is higher for bigger families and lower for smaller families. SNAP income limits are also higher in states like Hawaii and Alaska. Additionally, individuals may not have more than $2,750 in assets (or $4,250 if at least one person in the household is elderly or disabled). This includes cash savings but does not include your home, Social Security Income, retirement and pension plans, and other assets considered necessary for work or self-sufficiency.

How do you apply?

Once you determine that you meet the eligibility requirements for SNAP benefits, the next step is to complete an application form. You must apply for SNAP in the state where you currently live. You can contact your state agency by visiting your local SNAP office, your state agency’s website, or by calling your state’s toll-free SNAP Information hotline. Some states allow you to apply online from the state agency website.

When you fill out the application, you should be prepared to provide proof of identity as well as documents verifying your income and other factors that could affect eligibility (such as your assets). Once you submit your application, it will be reviewed by a caseworker who will determine whether you qualify for assistance.

What else do you need to know?

If you are eligible, you will receive SNAP benefits on an Electronic Benefit Transfer (EBT) card. The card works like a debit card and benefits are automatically loaded into your account each month. You can use your EBT card to buy groceries at authorized food stores and retailers.

It’s important to note that there are restrictions on the types of food items you can purchase using your benefits card. You can purchase food items such as fruits, vegetables, meat, dairy and bread products, and snack foods. However, you can’t use SNAP benefits to purchase items such as alcohol, tobacco, vitamins, medicines, and ready-made hot foods.

SNAP benefits can be an important lifeline for those facing financial hardship by providing access to nutritious meals they otherwise might not be able to afford. If you think you might qualify based on the criteria outlined above, don’t hesitate to fill out an application. It’s important that those who need help are aware of their options and learn how they can get access to this much-needed assistance.

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 

The market fell, but for a surprising reason. 

For months on end, there’s been talk that a recession could hit in 2023. But despite those warnings, the economy seems to be holding steady.

In fact, on Dec. 22, the Commerce Department released data on economic growth, and lo and behold, during the year’s third quarter, gross domestic product grew at an annual pace of 3.2%. That represented faster growth than expected.

Now, you’d think that would be a good thing. After all, growth is good, right?

But investors weren’t happy about it. Following that announcement, stocks took a tumble, with all major market indexes dropping in value. And if you’re surprised by that turn of events, you’re no doubt in good company.

Why did stocks sink?

One of the hardest lessons investors sometimes end up learning is that stock values have the potential to fall even in scenarios where you’d expect the opposite to happen. It makes sense to assume that strong economic growth would send stock values upward. Instead, investors got scared thinking that an uptick in economic growth might lead the Federal Reserve to implement more aggressive interest rate hikes.

It’s those rate hikes that have the potential to spur a recession. The Fed specifically wants to encourage a pullback in consumer spending so the gap between supply and demand that’s led to rampant inflation can close. But the Fed might cause a major reduction in consumer spending with its rate hikes, not a modest one. And if that happens, it could lead to very unfavorable economic conditions in 2023.

Should you stress if your portfolio just lost value?

It can be disheartening to see losses in your brokerage account or IRA, especially on the heels of what would seem like positive economic news. But remember, the stock market is just plain fickle like that. And while it may have had a negative reaction to one piece of news, it also has the potential to rally in response to another piece of news.

In fact, if you’re investing for a far-off goal, like retirement, then daily fluctuations in your brokerage account or IRA really shouldn’t be a source of concern for you. They may be annoying and frustrating, but try to remember that you really only lose money in the stock market if you unload investments at a price that’s lower than what you paid for them. So if you resist the urge to dump your stocks when their value drops, you won’t lock in any losses.

Meanwhile, in the coming weeks, we’re apt to see our fair share of economic data get released, from national unemployment levels to the Consumer Price Index’s latest reading, which is a key measure of inflation. It’s hard to say how the stock market will react to each piece of news, whether it’s positive or negative. So the best thing you can do is pledge to keep your cool and not react, even if your portfolio takes a dive for what seems like a very silly reason.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More 

If you need some help investing for retirement, you should read this. 

Individual retirement accounts (IRAs) are popular retirement accounts because of the perks they offer. These benefits include tax-deductible contributions, the ability to open an IRA with almost any brokerage firm or financial institution of your choosing, and flexibility in what you invest your money in.

Unfortunately, recent data shows that IRA balances are decreasing across the U.S. Here’s what you need to know about the decline, as well as about how you can try to keep your investment account balance stable.

What’s happening to IRA balances?

According to research from Fidelity Investments, there’s been an ongoing decrease in retirement account balances over the past several months.

In the third quarter of 2023, for example, the average IRA balance fell to $101,900. This is 24.9% lower than the average IRA balance of $135,700 during the same time period in 2022. The average 401(k) balance is also down about a quarter compared to a year ago, and the average 403(b) balance is down 21% year over year.

Balances have gone down for three quarters in a row, in large part because of downturns in the market.

The good news, however, is that the number of people with IRAs is going up each year — especially among millennials and members of Gen Z.

Here’s how you can protect your retirement security

Although it’s not great news to see IRA balances decline, the reality is that market downturns are part of life and if falling stock prices are to blame for the decrease (rather than people making withdrawals), then a rebound should be inevitable.

Still, if you’re concerned about the fact your own balance may be declining, here are five steps you can — and should — take to protect your retirement security.

Keep investing, even during a market downturn: Although it may be tempting to press pause on investing when stock prices are on the downswing, this is a bad idea. A downturn presents the opportunity to buy shares of stock that are on sale and you don’t want to miss out. It’s also hard to time the market, so you could miss the recovery and end up having to dive back in when share prices are already really high.Invest for the long term: It’s been proven time and again that long-term investing is the most reliable wealth-building path. If you try to day trade or buy stocks to make a quick buck, you are much more likely to end up losing money — especially in a volatile market.Don’t react based on fear: If your investments seem to be performing badly, it’s important to stay the course as long as you’re confident in them. Otherwise, you could end up selling at a low, locking in losses, and missing out on the gains you would have had as your portfolio recovered.Know how much you need to invest: It’s important to make sure you’re investing enough to amass your desired nest egg while assuming a reasonable return on investment. You can use savings goal calculators at Investor.gov to determine how much you need to invest to hit your target goals.Maintain an appropriate asset allocation: You should also make sure to build a diversified portfolio that exposes you to an appropriate level of risk for your age.

By following these five tips, you can make sure you’ll likely have plenty of money in retirement — even if you experience lots of market downturns along the way.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More