As it turns out, buying cheap stuff is actually quite expensive, and not only in the long term.
When shopping, do you opt for quality (buying a few expensive items with long lifespans) or quantity (picking up several cheaper options even though you know they won’t last)? Your answer to this question can say a lot about the state of your overall finances as well as your personality, new research suggests. While low price tags may initially lure quantity-focused shoppers, these folks tend to…
This “cheat sheet” that can help you save money the next time you need new wheels.
A car is likely one of the most expensive purchases you will ever make. And shopping for new wheels has only grown more expensive as inflation has spread through the economy. Fortunately, you may be able to save a little money simply by properly timing your vehicle purchase. Recently, iSeeCars identified the best times to buy a used car, as well as the worst periods to plunk down your cash.
Image source: Getty Images
Uh oh. It’s raining hard, and you just noticed a leak in your bedroom ceiling. And since you’re a homeowner now, there’s no landlord to call — a fellow homeowner I know likes to say, “You’re the landlord now!”
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
And after a call to a roofing company, you’re staring down a big repair bill. How will you pay it? Is a 0% APR credit card the right fit here?
There are a few ways a 0% APR card could help you cover a home repair.
In an ideal world, you’d have the money saved to pay for the repair, perhaps in the high-yield savings or money market account that houses your emergency fund. In this instance, it could still be worth using that 0% APR card to pay the bill, then immediately paying off the card with that money.
Why bother? There are a few reasons. You’d get the benefit of using the card in a way that creditors like to see, and being rewarded with a boost to your credit score. But the best reason to do this is to earn rewards, if your 0% APR card offers them.
Many of our favorite 0% APR cards come with rewards programs — click here to explore your options.
Home repairs don’t often fall under the umbrella of a card’s bonus categories, which is a bummer. But even earning 1% on a bill of, say, $10,000 is pretty sweet — that’ll get you $100 in cash back.
If you don’t have the money saved to pay for the repair, no shame — you’re in good company. According to the Federal Reserve’s October 2023 Survey of Consumer Finances, the median balance across transaction accounts (including checking and savings accounts) among Americans was just $8,000.
If you’re staring down a home repair bill of $10,000 and have that median balance in your own bank accounts, a 0% APR credit card could give you time to pay off the bill over time, without interest (or at the very least, with less interest). If your card has a period of 15 months with 0% APR and your bill comes to $10,000, you could make 15 payments of $667 and pay off the balance before interest comes due.
Even if you can only swing a payment of $500 a month, that’ll leave you with a balance of $2,500 by the time your 0% APR period is up. And paying credit card interest (which currently averages 23.37%) on a $2,500 balance is loads better than paying it on a $10,000 balance.
If you’re paying $500 a month toward a $10,000 balance without an intro APR offer, you’ll end up paying $2,792 in interest and pay the card off in 26 months. For a $2,500 balance, you’ll be debt free in five months and pay just $156 in interest.
Maybe your credit score isn’t quite high enough to qualify for a 0% APR card, or your income isn’t sufficient to get a large enough credit limit to fully cover your home repair bill. Either way, a 0% APR card won’t work for you in this case. You have other options, though.
You won’t get 0% APR on a personal loan, but you’ll still save plenty of money over using a credit card that’s charging you interest. Depending on your credit score, you may qualify for a loan with an interest rate as low as 7.99%.
And you’ll get a fixed monthly payment and know for sure when your loan will be paid off if you make all those payments. Check out our favorite personal loans here.
If you have been paying on your mortgage long enough to have built up equity in your home, you can tap into it to pay your repair bill.
A home equity loan is a set amount of money you borrow from your equity. It’s like a second mortgage with a fixed interest rate, and you’ll pay it back the same way. A home equity line of credit, or HELOC, is more like a credit card in that it comes with a variable interest rate and you can use money from it, pay it back, and then spend it again as needed.
If you need to make a home repair, it’s a good idea to consider all your options to pay for it. And that includes a 0% APR credit card, so be sure to add them to your list.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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
Image source: The Motley Fool/Upsplash
Savings are wonderful things. Last month, my boiler exploded and burst a bunch of pipes. Those kinds of emergencies are never fun, but the fact that I had cash in my emergency fund made it less stressful. I could pay for the plumber, builder, and emergency gas repairs without using my credit card.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
The high interest rates we’ve seen in the past few years mean there’s another bonus to having savings: the best high-yield savings accounts pay great interest rates. Recently, we’ve seen APYs of 4% or 5% or more. If you’ve got $8,000 in savings, you could have earned at least $320 in interest earnings for 2024.
But savings accounts are only one financial tool. And if you keep too much money in yours, you could be missing out on returns from investing.
It’s important to give each bucket of your money a purpose so that you can put it to work effectively. For example, checking accounts rarely pay enough interest to stay ahead of inflation. But they are an extremely useful way to manage all your everyday transactions.
Savings accounts are a great place for cash you might need to access quickly. Importantly, they are safe — your balance won’t fluctuate if the stock market performs badly and most accounts are covered against bank failure by FDIC insurance. Plus, some high-yield savings accounts are still paying APYs of over 4% right now. Click here to learn more about how this no-monthly-fee account could be a good home for your savings.
But the rate you’ll earn on your savings — even money in a high-yield account — won’t be enough to build your retirement nest egg. The ideal is to keep around three to six months’ worth of living expenses in your savings account. But if you put too much in there, you’re missing out on the potential gains you’d get from investing.
Investing carries more risk, but over time you can earn higher returns. If you’re thinking long term, investing is a proven way to build wealth. Even so, it doesn’t make sense to put your emergency fund in a brokerage account because the value of your portfolio can change from day to day. If you face an unexpected financial crisis, you might be forced to sell assets at a loss.
To summarize where your money goes:
The potential return on your investments depends on your strategy, how much risk you’re willing to take, and the way you manage your portfolio. Many financial planners use an average 8% investment return as a rule of thumb.
That’s a pretty realistic figure. The S&P 500 — often used as a benchmark for stock market performance — has averaged an 8% annual return over the past 100 years or so.
In contrast, the FDIC says average savings account APYs are just 0.43% right now. High-yield accounts pay more, but there’s a strong chance savings rates will fall further next year as the Fed continues to cut its benchmark interest rate.
You’re unlikely to be able to earn 4% on your savings for the coming 20, 30, or 40 years. But for the sake of simplicity, let’s assume you can. Let’s say you save or invest $500 a month. Here’s roughly how much your balance might grow at different rates over time.
| Timeframe | 4% APY | 8% APY |
|---|---|---|
| 10 years | $72,000 | $87,000 |
| 20 years | $179,000 | $275,000 |
| 30 years | $337,000 | $680,000 |
| 40 years | $570,000 | $1,554,000 |
Inflation is the boogeyman for savers and investors alike. As prices increase, the money you’ve saved won’t go as far. In summer 2022, inflation hit a 40-year high at 9.1% — way ahead of even the highest savings account APYs.
If the APY on your savings account is not as high as the rate of inflation, you’re effectively losing money. That’s the real cost of having too much in your savings account. Not only are you not earning the returns you might get from your investments in the long term, but you could also be falling behind any inflationary tides.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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
Image source: Getty Images
It’s pretty common to end a year by coming up with a list of resolutions for the next. And since our finances are something nearly everyone can stand to improve, a lot of people focus on different money goals for the new year.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
Motley Fool Money recently surveyed Americans about their financial New Year’s resolutions for 2025, and I was a bit surprised that “building an emergency savings fund” came in just fifth place. Here’s why this goal should be ranked higher — and how you can start creating an emergency fund next year.
“Building an emergency fund” came in fifth place in our survey (with 9% of respondents listing it), following these other goals:
All of these resolutions are certainly worthwhile, but having an emergency fund can make your day-to-day life easier — having an impact on your happiness now. With emergency savings, you’ll sleep better at night and can tackle life’s little (and not-so-little) catastrophes much more easily.
I’m glad you asked! An emergency fund is the cornerstone of good money management, because it gives you a pot of cash to draw on in the event of an unplanned expense that your checking account won’t cover. This could be a medical bill, a car repair, or even something like owing the IRS more taxes than you realized come Tax Day.
And if you get laid off or experience work upheaval of some kind, your emergency fund can help you handle your regular expenses until you get back on your feet. Whatever your reason for dipping into your savings, spending that money is better than taking on potentially expensive high-interest debt (like that on a credit card) to cover your costs.
That’s what I did before I built emergency savings, and I promise you, having to pay interest on top of the actual bill was never fun, and kept me in a deepening debt hole for years.
By this point, you may be saying, “That’s all well and good, but I live paycheck to paycheck and saving anything seems impossible.” And I feel you — I was you until fairly recently, and having an emergency fund is a new development in my life.
Where do you keep an emergency fund? I recommend a high-yield savings account — click here for our list and earn around 4% APY on your cash.
I was able to change my circumstances by undertaking a career change and finally being able to appreciably grow my income. If you lack enough money to keep up with the rising costs of just living your life, I recommend you do the same.
There are a few ways to approach this. You could ask for a raise at your current job, but you’re likely to do better by changing jobs altogether. An ADP study found that job switchers realized noticeably better salary gains (about 33% higher) than those who stayed and got raises.
Another option is to take on extra hours (if possible and if you work a job with hourly pay) or add a part-time gig of some kind. This could be joining the gig economy in some way (food delivery or driving for ride-hailing apps, perhaps) or taking on freelance work in your field or another, if you have some in-demand skills.
This is where I tell you that spending your evenings huddled under a 40-watt light bulb eating ramen noodles is no way to live, even if you need to save money. Instead, look to make reasonably painless cuts to your budget.
Get rid of the streaming service you watch just once a month, and if you order takeout three times a week, maybe cut back to just one time (cooking at home is actually more fun than you think it’ll be, especially if you can do it together with a partner or a kid).
And if you can save money on a bigger expense (like your auto insurance, for example), that’ll be even more effective than cutting $5 here or $10 there. Shop around for services like auto insurance, cellphone plans, and internet.
Any money you bring in or cut from your spending can be added directly to your high-yield savings account. Making temporary sacrifices to bulk up your savings balance is a move that Future You will thank you for. If you lack savings, the best way out really is through — I believe in you.
If you’re making a list of financial New Year’s resolutions for 2025, I recommend adding “build an emergency fund” to it — and put it higher than No. 5. This money move will improve your life by leaps and bounds.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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
Image source: Upsplash/The Motley Fool
If you’re a fan of traveling or want to travel more in the upcoming year, you may be considering getting a travel credit card that earns rewards. For some travelers, an airline credit card can be a great option.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
But for others, a general travel rewards credit card is ideal. The type of rewards credit card that is best for you depends on your travel preferences and rewards goals. I’ll explain why you may want to choose a travel rewards credit card over an airline credit card.
One of the biggest benefits of choosing a travel card over an airline card is to have more control over which airlines you fly with when traveling. Airline credit cards are specific to one airline. They typically offer bonus rewards on airline-specific purchases made with your card.
Here’s an example: If you have an American Airlines credit card, you may earn more rewards when using your card to book American Airlines flights. However, other airfare or travel purchases will likely earn rewards at a lower rate.
But many of the best travel credit cards reward cardholders for making general travel purchases, including airfare and hotel bookings. Since these aren’t airline-specific cards, you can earn rewards at an elevated rate no matter which airline you choose to fly.
Ready to get rewarded for traveling? Click here to explore our curated list of the top travel rewards credit cards to find your ideal travel card.
Another reason to choose a travel rewards card over an airline credit card is to have more flexibility with how you redeem your rewards. Many travel credit cards allow travelers to redeem their rewards in many ways, so they have greater flexibility.
You may be able to book hotels, car rentals, or airfare through a designated travel portal. With this option, you’re in full control when outlining your travel plans. Some premium travel credit cards allow travelers to transfer their rewards to select travel partners to book award flights or hotel stays. Again, this option provides flexibility.
Meanwhile, airline cards tend to be more restrictive. You’ll likely need to redeem your rewards for airfare with one specific airline to maximize the value of your rewards. Having more control in how you use your rewards is a win, especially if you’re not loyal to one airline or travel brand.
Related: Find out why this Chase card made our top travel credit cards list of 2024.
If you’re a traveler who doesn’t value flight perks, you may want to avoid getting an airline card. Many of these credit cards provide benefits that cater to the pre-flight and in-flight experience. For example, early boarding perks or a free checked bag may come with an airline card.
But if you don’t care about perks like this, it’s likely better to apply for a general travel rewards card. Many of the best travel credit cards offer travel protections like trip delay coverage, lost luggage reimbursement, and annual travel credits.
Depending on your travel style and habits, these perks may be more preferable or prove to be more valuable for you. Always review the card perks provided before applying for a new card. While there are many cards packed with perks, not every perk will appeal to every traveler.
As you explore rewards credit cards, consider your current and future travel habits. This can help you settle on the ideal rewards card for you. Understanding how a card earns rewards, the benefits provided, and the redemption options is key.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
“}]] Read More
© 2026 Madam Money®. All Rights Reserved. | Designed by SRJWebsites.com
