Money Management

Airline cards are most worth it in one particular situation. 

When it comes to credit cards, I’m always looking for ways to maximize the perks and the rewards I can earn. That’s why I’ve historically passed up airline credit cards. They just didn’t seem like the best fit given my spending patterns.

Recently, though, I actually signed up for an airline credit card with an annual fee. There’s a simple reason why I made this decision.

Why I signed up for an airline credit card

This year because my family and I will be making multiple plane trips — and we’ll be flying on the same airline for all of them, so an airline credit card now makes sense.

Traditionally, when I’ve flown back and forth, I’ve shopped around different airlines in order to find the best price on each flight and in order to get the best times for each trip we were taking. But, for a number of personal reasons related to flying with a dog and two kids, we’ve decided that we are only going to fly on one specific airline going forward.

Since we’re going to be loyal to our chosen airline and take numerous trips this year with that carrier, we decided it made a lot of sense to open up the card that the airline offers. In fact, we chose one of the cards offered that had a hefty annual fee.

The card offers us a huge number of perks related to flying on that airline. These cardholder benefits include, among other things, access to lounges in the airports we are flying in and out of, extra miles when we charge flights on the card, discounts on in-flight purchases, and free checked baggage when we fly. So, it’s worth paying the fee because we’re going to get all of these benefits.

Would an airline credit card be a good fit for you?

Airline credit cards come with and without big annual fees, but one thing they generally have in common is that you really benefit the most from them if you fly with the same airline for most or all of the travel you’re doing.

If you tend to follow the approach I did in the past and fly many different airlines based on which offers the best deal for each trip, an airline credit card probably isn’t the best choice for you. In these situations, a general purpose travel card makes a lot more sense since that card can give you rewards for all purchases regardless of who you fly with (and potentially lounge access too, even if you’re flying on different airlines).

But if you tend to fly with the same airline all the time, like I do now, then opting for an airline card could make a lot of sense for you. Just be sure to check the perks, benefits, and fees (if any) to confirm that the card will provide enough value to be worth a place in your wallet.

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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.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.

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Are any of these on your list of goals? 

Many people use the start of a new year as an opportunity to assess their finances and figure out if they need to do better. Now thankfully, I’m closing out 2022 in a decent place financially. This year, I added some money to my savings account and also maxed out my retirement account. And I didn’t accrue any debt on my credit cards or pay any of those bills late.

But still, there are certain spending habits I can definitely improve on. And with that in mind, here are three changes I’m hoping to make in the new year.

1. Being more mindful of what I buy at the supermarket

At several points this year, I purchased groceries that ended up going bad on me because my family didn’t consume them on time, or because I had the intention to cook but got lazy and ordered takeout instead. Next year, I hope to not be as wasteful. If I buy ingredients for a meal that are perishable, I intend to actually use them, even if I’m feeling tired and don’t want to spend the time in the kitchen.

2. Not paying for services I don’t get good use out of

My family uses a few different streaming services, and for the most part, these have provided good value for us. But I realized a short while ago that my family wasn’t really watching HBO Max, so I made the decision to cancel it. The only problem is, I paid for that service for a solid couple of months during which no one really watched anything on it.

Next year, I hope to have a better pulse on whether we’re getting good value for the services we pay for. I don’t have a problem with paying for multiple streaming services, for example, if they’re actually being watched. But it’s silly to spend money on things my family isn’t getting much out of.

3. Getting better about carpooling so I spend less on gas

Even though gas prices aren’t as high these days as they were earlier on in the year, carpooling could save me a bunch of money in 2023. It could also save me time during those jam-packed after-school hours. And so I’m hoping I’ll get better about being proactive and arranging carpools in the new year.

All I really need to do is put in the time to reach out to some fellow parents and set up a schedule. And if I make that effort, it could pay off in a big way.

What changes do you have in mind?

These specific changes of mine might seem minimal individually. But collectively, they have the potential to add up to a lot of savings.

As you gear up to ring in the new year, it pays to think about your financial habits and whether they’re serving you well. You may find that a few small changes put you in a much better place financially by the time 2023 comes to an end.

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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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It’s definitely worth putting on your list. 

Some people just aren’t fans of New Year’s resolutions. And it’s easy to see why. Once you put down your goals in writing, you might start to feel like a failure if you fall behind on them.

On the flipside, mapping out those goals could bolster your commitment to them. And that could really change your financial picture for the better.

A recent survey by Principal found that many Americans have big financial goals in mind for 2023. And some of the most popular things Americans are resolving to do are cut back on spending, boost savings, and pay off credit card debt.

By contrast, only 9% of Americans are resolving to look for a higher-paying job in the new year. But that’s a task worth adding to your list.

Higher wages could go a long way

Many people have spent the past year and change struggling financially due to inflation. And unfortunately, living costs aren’t expected to drop dramatically in the next few months.

That’s why now’s a really good time to go after a higher-paying job. The more money you earn, the easier it will be to keep up with your expenses.

A higher salary could also be your ticket to meeting some of the goals you’re mapping out for 2023. Let’s say one of your resolutions is to finally complete your emergency fund. Earning more money at work could help make that happen.

Similarly, you may have the goal of beginning to fund a retirement nest egg. A higher-paying job could make it possible to steadily contribute money to an IRA account.

How to bump up your pay

If you’re eager to see your income rise in 2023, you’ll need to have a good sense of what your job skills are worth. That will put you in a better position to ask for the salary you deserve.

Sites like Glassdoor are a good source for salary data. But also, talk to headhunters and people in your industry to gain insight on what workers with comparable skill sets are making.

At the same time, it could make sense to build some new skills so you’re in a better position to command a higher salary. If there’s a course or certification you can add to your resume, it could really help. And if that doesn’t apply to you, simply make an effort to learn something new that’s relevant to your line of work. It could result in a nice promotion — either at your current employer or at a new one.

Growing your income could make 2023 a less financially stressful year. And it could also make it a more successful one for you. So don’t hesitate to seek out a higher-paying job. And if you find that to be difficult, remember that you always have the option to boost your income with a side hustle. It’s not the same thing as locking in a higher salary at your main job, but it could help you achieve a similar outcome.

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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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You may want to spend your money elsewhere. 

Whether you bought your home somewhat recently or have been living in it for a long time, you may be in a place where you’re finally ready to move forward with renovations. Maybe you’ve been padding your savings account for years to swing some improvements. Or maybe you recently worked on boosting your credit score so you’re in a great position to qualify for a personal loan you can use to finance renovations.

There are many different projects that could enhance your living space and make it so your home better serves your needs. But here are a few home improvements you might regret making in the coming year.

1. Building an office

Working from home becomes much easier when you have a dedicated place to do it. There’s just something awfully distracting about setting up a laptop at a kitchen counter or balancing one on the floor while you lean against your couch.

But now may not be the ideal time to invest in a home office. The reason? More and more companies are putting an end to remote work and insisting that employees return to the office. And so if you spend money on a home office only to learn that your days of working remotely are numbered, you might really kick yourself afterward.

2. Putting in a bar or entertainment room

If you like hosting, you may be inclined to spend money on a built-in bar so you can take your parties to the next level. You might also be thinking of installing new lighting and other features to create a welcoming atmosphere for in-home entertainment.

But after several years of being cooped up at home during the COVID-19 pandemic, a lot of people have gotten tired of staying in and prefer to spend their evenings going out on the town. You might come to feel the same, so before you invest in features that will keep you tied to your home, think about whether that’s really what you want.

3. Remodeling an already-functional kitchen

It’s one thing to renovate a kitchen with cabinets that are falling apart and appliances that barely work. But if you have a functional kitchen, you may want to hold off on remodeling it.

First of all, a kitchen remodel is one of the most disruptive home improvement projects you can take on. When you can’t use your kitchen, it becomes difficult to feed yourself.

Meanwhile, renovating a kitchen means having to acquire a lot of different supplies, from flooring to countertops to updated appliances. But right now, there are still supply chain shortages that could slow your project down substantially. And while it’s one thing to experience delays when you’re renovating the guest bathroom in your home, it’s another thing to get stuck with an unusable kitchen for an extended period of time.

There are plenty of home improvement projects that could make sense to embark on in 2023. But before you sink money into these three, consider whether the timing is right to do so.

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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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