Money Management

[[{“value”:”Image source: The Motley Fool/Upsplash
Most people think that opening a CD is a risk-free investment. You can put cash into a CD, get FDIC insurance from the bank, and earn a guaranteed fixed APY for the length of the term. There’s no risk of losing money on a CD, right? Well… Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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 truth about CDs is more complicated. CDs have a big hidden risk that a lot of people might not realize. But unless you’re careful, most CDs are not truly “risk-free.” Let’s look at the biggest hidden risk of CDs and what you might want to do with your savings instead. CDs’ biggest risk: Early withdrawal penalties The biggest problem with CDs, and why I don’t personally use CDs for my savings, is that CDs force you to lock up your money. When you open a CD, you have to commit to keep your cash in that CD for a fixed term of time, whether it’s three months or five years. And yes, you earn a guaranteed rate of interest for that time period, but CDs have one big downside: early withdrawal penalties. You’re charged these when you decide to take cash out of the CD before the agreed-upon term is up. The exact details vary based on the bank and the CD term, but early withdrawal penalties force you to give up some (or all) of the interest you’ve earned. The penalty amount could be (for example) 90 days’ worth of interest on a 6-month CD, or 180 days’ worth of interest on a 1-year CD — each bank sets its own rules for early withdrawal penalties. Do you want more flexibility for your cash savings, without worrying about penalties? The best savings accounts let you keep every dollar of interest you earn. Click here to learn more about the best high-yield savings accounts (with 4.20% APY or higher) — and see why they can be a better choice for your money than CDs. Yes, you can lose money on a CDEarly withdrawal penalties aren’t just a threat to the interest you earn on a CD. These penalties could also cause you to lose some of your initial deposit (principal), too. For example, let’s say you open a 12-month CD with an early withdrawal penalty of 90 days’ interest. And let’s say that just two months after opening the CD, you have a financial emergency and suddenly need to cash out the CD. The early withdrawal penalty will eat up more than the amount of interest you earned — two months’ interest, plus you’ll lose the equivalent of an additional month’s interest from your original principal balance. No savings account or money market account will make you lose money in this way. These other accounts pay high APYs (competitive with the best CDs) and give you more flexibility to access your cash. Who should open a CD? People with lots of cash Because of these costly risks, most people shouldn’t use CDs unless you have a healthy emergency fund (like three to six months of expenses). If you have plenty of non-emergency cash in the bank, you have strong job security, rock-solid financial stability, no big expenses on the horizon, and you’re 100% certain that you won’t need to take money out of the CD sooner than expected, then fine, open a CD. But most Americans don’t have that much cash. Most Americans might need to access their cash savings sooner than they think. Based on Motley Fool Money research, the typical American has $8,000 of cash in the bank. Instead of opening a CD, most people would be better off with the best savings accounts or money market accounts. Even if the APY on a savings account or money market account is lower than that of CDs, the flexibility and lack of early withdrawal penalties is worth it. Bottom line People need to start thinking differently about the hidden risks of CD early withdrawal penalties and how much they can really cost savers. Because of the possible hidden cost of early withdrawal penalties, even the best CDs are not truly “risk free.” Unless you have lots of money, unless you are 100% sure you can leave your CD deposit alone for the full term, you’re running the risk of earning 0% interest on your CD — or even losing money on a CD. Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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.”}]] [[{“value”:”

Most people think that opening a CD is a risk-free investment. You can put cash into a CD, get FDIC insurance from the bank, and earn a guaranteed fixed APY for the length of the term. There’s no risk of losing money on a CD, right? Well…

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 truth about CDs is more complicated. CDs have a big hidden risk that a lot of people might not realize. But unless you’re careful, most CDs are not truly “risk-free.”

Let’s look at the biggest hidden risk of CDs and what you might want to do with your savings instead.

CDs’ biggest risk: Early withdrawal penalties

The biggest problem with CDs, and why I don’t personally use CDs for my savings, is that CDs force you to lock up your money. When you open a CD, you have to commit to keep your cash in that CD for a fixed term of time, whether it’s three months or five years. And yes, you earn a guaranteed rate of interest for that time period, but CDs have one big downside: early withdrawal penalties.

You’re charged these when you decide to take cash out of the CD before the agreed-upon term is up. The exact details vary based on the bank and the CD term, but early withdrawal penalties force you to give up some (or all) of the interest you’ve earned.

The penalty amount could be (for example) 90 days’ worth of interest on a 6-month CD, or 180 days’ worth of interest on a 1-year CD — each bank sets its own rules for early withdrawal penalties.

Do you want more flexibility for your cash savings, without worrying about penalties? The best savings accounts let you keep every dollar of interest you earn. Click here to learn more about the best high-yield savings accounts (with 4.20% APY or higher) — and see why they can be a better choice for your money than CDs.

Yes, you can lose money on a CD

Early withdrawal penalties aren’t just a threat to the interest you earn on a CD. These penalties could also cause you to lose some of your initial deposit (principal), too.

For example, let’s say you open a 12-month CD with an early withdrawal penalty of 90 days’ interest. And let’s say that just two months after opening the CD, you have a financial emergency and suddenly need to cash out the CD. The early withdrawal penalty will eat up more than the amount of interest you earned — two months’ interest, plus you’ll lose the equivalent of an additional month’s interest from your original principal balance.

No savings account or money market account will make you lose money in this way. These other accounts pay high APYs (competitive with the best CDs) and give you more flexibility to access your cash.

Who should open a CD? People with lots of cash

Because of these costly risks, most people shouldn’t use CDs unless you have a healthy emergency fund (like three to six months of expenses). If you have plenty of non-emergency cash in the bank, you have strong job security, rock-solid financial stability, no big expenses on the horizon, and you’re 100% certain that you won’t need to take money out of the CD sooner than expected, then fine, open a CD.

But most Americans don’t have that much cash. Most Americans might need to access their cash savings sooner than they think. Based on Motley Fool Money research, the typical American has $8,000 of cash in the bank.

Instead of opening a CD, most people would be better off with the best savings accounts or money market accounts. Even if the APY on a savings account or money market account is lower than that of CDs, the flexibility and lack of early withdrawal penalties is worth it.

Bottom line

People need to start thinking differently about the hidden risks of CD early withdrawal penalties and how much they can really cost savers. Because of the possible hidden cost of early withdrawal penalties, even the best CDs are not truly “risk free.”

Unless you have lots of money, unless you are 100% sure you can leave your CD deposit alone for the full term, you’re running the risk of earning 0% interest on your CD — or even losing money on a CD.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 

[[{“value”:”Image source: Getty Images
Imagine you’ve finally hit your retirement goal and have a cool $4 million saved. Exciting, right? But now you’re probably wondering how much you can actually pull from that stash every month without running out of cash.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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. Like most things in personal finance, there’s no cut-and-dry answer. How much you can and should pull depends on what types of accounts the cash is in and what your long-term goals are.For example, you might not want to pull from an investment account like an IRA at first, but rely primarily on 401(k) funds. But the biggest factor is how long you plan to be retired…which is a nice way of saying, “How many years until you die?”Luckily, there are a few rules of thumb to tell how much you can withdraw each year.The 4% ruleThis rule was created by financial advisor Bill Bengen back in the ’90s. It’s a simple guideline used by many personal finance folks to figure out how much they can safely withdraw from their nest egg each year without depleting it too soon. The idea is that you can withdraw 4% of your total retirement savings annually and, theoretically, never run out of money for a 30-year retirement.So, if you have $4 million saved up, applying the 4% rule would give you an annual withdrawal of:$4,000,000 x 0.04 = $160,000 per yearThat’s right — you could theoretically pull $160,000 out every year without exhausting your funds too quickly. Sounds pretty great, right? That’s some serious money to live on and travel with, and you still have room to splurge a little. (Maybe you can finally take that European river cruise?)Planning to travel in retirement? These travel cards help you earn points toward free travel.The update to the 4% rule?Here’s the issue, though: the 4% rule was created in 1994. And as much as I hate to admit it, 1994 was 30 years ago. Personal finance changes, and so do the markets. Recently, Bergen has adjusted his stance on the 4% rule.He now suggests that most of us could withdraw 5% per year in retirement and are unlikely to run out of money in 30 years.$4,000,000 x 0.05 = $200,000 per yearIt’s not too shabby, especially if you’re planning on living it up in retirement. But others believe that since we’re living longer, retirees should withdraw closer to 3.5%.With the updated 3.5% withdrawal, your yearly withdrawal from a $4 million nest egg would be:$4,000,000 x 0.035 = $140,000 per yearWhile that’s still a lot of money, it’s a bit less than the original 4% rule. But it also means that your funds are more likely to last, giving you peace of mind as you kick back and enjoy your golden years. And hey, it’s still a significant number to work with!Don’t forget about minimum distribution requirementsWhile we’re talking about withdrawals, there’s one important detail you don’t want to overlook: required minimum distributions, or RMDs.RMDs are the minimum amounts you’re required to withdraw from certain retirement accounts like IRAs and 401(k)s once you hit age 73 (formerly 72, thanks to recent changes in tax laws). The government wants to get its share of tax revenue, so RMDs make sure you start tapping into those tax-deferred retirement accounts.The IRS calculates your RMD based on your life expectancy and the balance of your retirement accounts. If you don’t take your RMD, you’ll face a hefty 25% penalty (yikes!). It’s a good idea to plan ahead to avoid those penalties.If you’ve saved $4 million for retirement, you’ve got a great foundation. Using the 4% rule, you could withdraw $160,000 per year — but keep in mind that a more conservative 3.5% rule might be a safer bet in today’s unpredictable market. The key to a successful retirement is not just how much you withdraw, but also how you manage it to ensure your money lasts as long as you do.Need to up your retirement savings? An IRA lets you save even more — click here for our best IRA brokers.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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.”}]] [[{“value”:”

Imagine you’ve finally hit your retirement goal and have a cool $4 million saved. Exciting, right? But now you’re probably wondering how much you can actually pull from that stash every month without running out of cash.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.

Like most things in personal finance, there’s no cut-and-dry answer. How much you can and should pull depends on what types of accounts the cash is in and what your long-term goals are.

For example, you might not want to pull from an investment account like an IRA at first, but rely primarily on 401(k) funds. But the biggest factor is how long you plan to be retired…which is a nice way of saying, “How many years until you die?”

Luckily, there are a few rules of thumb to tell how much you can withdraw each year.

The 4% rule

This rule was created by financial advisor Bill Bengen back in the ’90s. It’s a simple guideline used by many personal finance folks to figure out how much they can safely withdraw from their nest egg each year without depleting it too soon. The idea is that you can withdraw 4% of your total retirement savings annually and, theoretically, never run out of money for a 30-year retirement.

So, if you have $4 million saved up, applying the 4% rule would give you an annual withdrawal of:

$4,000,000 x 0.04 = $160,000 per year

That’s right — you could theoretically pull $160,000 out every year without exhausting your funds too quickly. Sounds pretty great, right? That’s some serious money to live on and travel with, and you still have room to splurge a little. (Maybe you can finally take that European river cruise?)

Planning to travel in retirement? These travel cards help you earn points toward free travel.

The update to the 4% rule?

Here’s the issue, though: the 4% rule was created in 1994. And as much as I hate to admit it, 1994 was 30 years ago. Personal finance changes, and so do the markets. Recently, Bergen has adjusted his stance on the 4% rule.

He now suggests that most of us could withdraw 5% per year in retirement and are unlikely to run out of money in 30 years.

$4,000,000 x 0.05 = $200,000 per year

It’s not too shabby, especially if you’re planning on living it up in retirement. But others believe that since we’re living longer, retirees should withdraw closer to 3.5%.

With the updated 3.5% withdrawal, your yearly withdrawal from a $4 million nest egg would be:

$4,000,000 x 0.035 = $140,000 per year

While that’s still a lot of money, it’s a bit less than the original 4% rule. But it also means that your funds are more likely to last, giving you peace of mind as you kick back and enjoy your golden years. And hey, it’s still a significant number to work with!

Don’t forget about minimum distribution requirements

While we’re talking about withdrawals, there’s one important detail you don’t want to overlook: required minimum distributions, or RMDs.

RMDs are the minimum amounts you’re required to withdraw from certain retirement accounts like IRAs and 401(k)s once you hit age 73 (formerly 72, thanks to recent changes in tax laws). The government wants to get its share of tax revenue, so RMDs make sure you start tapping into those tax-deferred retirement accounts.

The IRS calculates your RMD based on your life expectancy and the balance of your retirement accounts. If you don’t take your RMD, you’ll face a hefty 25% penalty (yikes!). It’s a good idea to plan ahead to avoid those penalties.

If you’ve saved $4 million for retirement, you’ve got a great foundation. Using the 4% rule, you could withdraw $160,000 per year — but keep in mind that a more conservative 3.5% rule might be a safer bet in today’s unpredictable market. The key to a successful retirement is not just how much you withdraw, but also how you manage it to ensure your money lasts as long as you do.

Need to up your retirement savings? An IRA lets you save even more — click here for our best IRA brokers.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 

[[{“value”:”Image source: Getty Images
Many Americans might feel helpless against rising car insurance prices. Average car insurance rates went up 22% in 2024, and 23% in 2023. Faced with double-digit price hikes, what can people realistically hope to do differently to get cheaper car insurance?Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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. It’s true that some reasons for higher car insurance prices are beyond anyone’s control. Cars are getting more expensive, car repairs cost more money, and insurance companies are facing bigger, more expensive natural disasters that wreck people’s cars as well as buildings.But a few everyday habits make car insurance more expensive. Many people might not know this, but it’s important to take control of what can be changed.Let’s look at a few little-known habits and lifestyle choices that drive up car insurance premiums — and see how drivers can fight back against rising prices.1. Parking locationWhen signing up for car insurance, insurance companies always ask where the car will be parked. Cars that are parked inside of garages tend to get lower-cost car insurance, while vehicles parked on the street might cost more to insure.That’s because parking on the street is riskier. A car parked on the street is more likely to get stolen, vandalized, or side-swiped at night by a hit-and-run driver. Insurance companies charge extra for all of these extra risks.Anyone who has a garage or dedicated secure parking space should use it. People who park their car on the street instead of in a safer space are more likely to get hit with higher car insurance premiums.2. Staying with the same car insurance company year after yearNo matter where drivers park their cars, everyone deserves a chance to save money on car insurance. Shopping around for price quotes on car insurance can be a great way to save money. But surprisingly: most people don’t do this! Motley Fool Money research found that 74% of people do not shop for new auto insurance every year.By staying with the same car insurance company for too long, drivers might miss out on discounts. Want to see what else is out there? Click here to see our picks for the best cheap car insurance companies — and get fast, easy price quotes online.3. Miles driven per yearCar insurance premiums are based in part on how much the car is driven. People who have longer commutes and who drive 15,000 miles or more per year are likely to pay higher car insurance rates than people who drive 12,000 miles or less.But some companies offer pay-per-mile car insurance that charges drivers based on how much they drive. People who work from home, or who have short commutes, or who have a lifestyle that doesn’t involve lots of driving could save money by paying only for the miles driven per month. Based on a driver’s age and other risk factors, pay-per-mile insurance can be 30%-50% cheaper than a standard car insurance policy.4. Credit scoreOne of the biggest reasons why car insurance can be so expensive is something that has nothing to do with people’s performance behind the wheel: credit scores. People with higher credit scores tend to get much cheaper car insurance. Motley Fool Money research found that as of 2023, people with poor credit paid more than twice as much for car insurance as people with good credit.People often suffer downgrades in credit score due to temporary financial trouble or lost jobs. Having bad credit doesn’t mean that someone is an unsafe, irresponsible driver. But even if it’s not “fair,” insurance companies in most states are allowed to check credit history before offering insurance rates. Anyone who wants cheaper car insurance should try to boost their FICO® Score before shopping for car insurance price quotes.5. Marital statusAccording to Experian, married people tend to get 5% to 15% cheaper rates on car insurance than single people. For some reason, married people tend to be less likely to file claims for auto insurance coverage.Don’t get married just to get cheaper auto insurance. That’s not a good enough reason to commit to such a serious, long-term life partnership. (Unless insurance rates keep getting much more expensive…) But it’s good to know that married drivers are likely to get a little extra discount; cheaper auto insurance could be another financial benefit of married life.6. Unsafe driving habitsPeople with unsafe driving habits — speeding, aggressive driving, distracted driving — are much more likely to get in car crashes and get hit with higher car insurance premiums. Want cheaper car insurance? Consider signing up for special car insurance plans that reward safe driving.This type of insurance is called “telematics” or usage-based insurance. Some of the best car insurance companies offer plans that let customers share their driving data (with permission in advance) via mobile app or other device attached to the vehicle.By showing safer driving behaviors like obeying the speed limit, avoiding rapid acceleration and hard braking, and putting down the phone while driving, many people can qualify for lower rates on car insurance.Bottom linePeople can’t always control where they live, where they park, or their credit score — but every driver is legally responsible for controlling their behavior behind the wheel. Anyone who wants cheaper car insurance in 2025 should shop around for price quotes and consider telematics insurance that uses data to reward safe driving behaviors.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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.”}]] [[{“value”:”

Many Americans might feel helpless against rising car insurance prices. Average car insurance rates went up 22% in 2024, and 23% in 2023. Faced with double-digit price hikes, what can people realistically hope to do differently to get cheaper car insurance?

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.

It’s true that some reasons for higher car insurance prices are beyond anyone’s control. Cars are getting more expensive, car repairs cost more money, and insurance companies are facing bigger, more expensive natural disasters that wreck people’s cars as well as buildings.

But a few everyday habits make car insurance more expensive. Many people might not know this, but it’s important to take control of what can be changed.

Let’s look at a few little-known habits and lifestyle choices that drive up car insurance premiums — and see how drivers can fight back against rising prices.

1. Parking location

When signing up for car insurance, insurance companies always ask where the car will be parked. Cars that are parked inside of garages tend to get lower-cost car insurance, while vehicles parked on the street might cost more to insure.

That’s because parking on the street is riskier. A car parked on the street is more likely to get stolen, vandalized, or side-swiped at night by a hit-and-run driver. Insurance companies charge extra for all of these extra risks.

Anyone who has a garage or dedicated secure parking space should use it. People who park their car on the street instead of in a safer space are more likely to get hit with higher car insurance premiums.

2. Staying with the same car insurance company year after year

No matter where drivers park their cars, everyone deserves a chance to save money on car insurance. Shopping around for price quotes on car insurance can be a great way to save money. But surprisingly: most people don’t do this! Motley Fool Money research found that 74% of people do not shop for new auto insurance every year.

By staying with the same car insurance company for too long, drivers might miss out on discounts. Want to see what else is out there? Click here to see our picks for the best cheap car insurance companies — and get fast, easy price quotes online.

3. Miles driven per year

Car insurance premiums are based in part on how much the car is driven. People who have longer commutes and who drive 15,000 miles or more per year are likely to pay higher car insurance rates than people who drive 12,000 miles or less.

But some companies offer pay-per-mile car insurance that charges drivers based on how much they drive. People who work from home, or who have short commutes, or who have a lifestyle that doesn’t involve lots of driving could save money by paying only for the miles driven per month. Based on a driver’s age and other risk factors, pay-per-mile insurance can be 30%-50% cheaper than a standard car insurance policy.

4. Credit score

One of the biggest reasons why car insurance can be so expensive is something that has nothing to do with people’s performance behind the wheel: credit scores. People with higher credit scores tend to get much cheaper car insurance. Motley Fool Money research found that as of 2023, people with poor credit paid more than twice as much for car insurance as people with good credit.

People often suffer downgrades in credit score due to temporary financial trouble or lost jobs. Having bad credit doesn’t mean that someone is an unsafe, irresponsible driver. But even if it’s not “fair,” insurance companies in most states are allowed to check credit history before offering insurance rates. Anyone who wants cheaper car insurance should try to boost their FICO® Score before shopping for car insurance price quotes.

5. Marital status

According to Experian, married people tend to get 5% to 15% cheaper rates on car insurance than single people. For some reason, married people tend to be less likely to file claims for auto insurance coverage.

Don’t get married just to get cheaper auto insurance. That’s not a good enough reason to commit to such a serious, long-term life partnership. (Unless insurance rates keep getting much more expensive…) But it’s good to know that married drivers are likely to get a little extra discount; cheaper auto insurance could be another financial benefit of married life.

6. Unsafe driving habits

People with unsafe driving habits — speeding, aggressive driving, distracted driving — are much more likely to get in car crashes and get hit with higher car insurance premiums. Want cheaper car insurance? Consider signing up for special car insurance plans that reward safe driving.

This type of insurance is called “telematics” or usage-based insurance. Some of the best car insurance companies offer plans that let customers share their driving data (with permission in advance) via mobile app or other device attached to the vehicle.

By showing safer driving behaviors like obeying the speed limit, avoiding rapid acceleration and hard braking, and putting down the phone while driving, many people can qualify for lower rates on car insurance.

Bottom line

People can’t always control where they live, where they park, or their credit score — but every driver is legally responsible for controlling their behavior behind the wheel. Anyone who wants cheaper car insurance in 2025 should shop around for price quotes and consider telematics insurance that uses data to reward safe driving behaviors.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 

[[{“value”:”Image source: Getty Images
Finding affordable car insurance can feel like rolling the dice. And while the cost can vary widely from company to company, where you live can also greatly impact rates. So it can be helpful to know if you’re living in a state that offers affordable car insurance.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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. Here are the five cheapest states for car insurance, and what drivers need to know to get the best rate.Five states with the cheapest car insurance ratesDepending on where you live, drivers may be able to get the minimum coverages required for less than $40 a month, or a standard coverage policy for less than $300 a month. For context, the average car insurance rate in the U.S. is $251 per month as of 2023.Here are the cheapest states for car insurance, based on the lowest rates for minimum liability:StateAverage Monthly Rate: Minimum LiabilityAverage Monthly Rate: Standard CoverageAverage Monthly RateWyoming$30$221$199Iowa$30$211$191Hawaii$35$148$135South Dakota$35$297$268Montana$36$254$230Data source: Motley Fool Money research; calculations by author. Western states (Wyoming, Hawaii, and Montana) and midwestern states (Iowa and South Dakota) make up the entirety of this list, icing out northeast and southern states. And interestingly, the third-ranked state (Hawaii) is a no-fault state, which typically have higher premiums. That’s because no-fault states require drivers to file a claim with their own insurer if they’re injured in a car accident, regardless of who was at fault.You should note, however, that the minimum coverages will vary from state to state, so the rates there don’t necessarily translate to an apples-to-apples comparison for the amount of coverage you’ll actually get.Need a new car insurance policy, but you’re not sure where to start? Check out our list of the cheapest car insurance companies of 2024.How insurers set car insurance ratesOne of the most frustrating things about the insurance industry is that the costs can vary so widely because insurers consider so many factors when setting rates. And the car insurance industry is no different here. Auto insurers typically consider factors like:Driving history: Having accidents or a DUI, for example, can raise your rates.Age: Older drivers tend to be safer drivers.Gender: Women tend to get into fewer accidents than men.Car make and model: Some cars have a better safety history, or safety features, than others.Desired coverages: Minimum coverage will always be the cheapest option.ZIP code: Some areas may have a statistically higher risk of vandalism, theft, or even accidents.Credit: Many insurers weigh drivers’ risk of getting into an accident by looking at their credit. Only a few states (California, Hawaii, and Massachusetts) do not use credit-based insurance scores to set rates.The best car insurance companies will give you the best coverage for the lowest price. And while saving the most money upfront may be an important factor, it shouldn’t necessarily be the only one you consider when shopping for car insurance.Living in the five cheapest states for car insurance can help drivers score lower rates, but that doesn’t mean they have to move across state lines to access lower rates. And if you’re willing to put a bit of time into gathering multiple quotes, you’ll be able to strike the balance between affordability and coverage.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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.”}]] [[{“value”:”

Finding affordable car insurance can feel like rolling the dice. And while the cost can vary widely from company to company, where you live can also greatly impact rates. So it can be helpful to know if you’re living in a state that offers affordable car insurance.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.

Here are the five cheapest states for car insurance, and what drivers need to know to get the best rate.

Five states with the cheapest car insurance rates

Depending on where you live, drivers may be able to get the minimum coverages required for less than $40 a month, or a standard coverage policy for less than $300 a month. For context, the average car insurance rate in the U.S. is $251 per month as of 2023.

Here are the cheapest states for car insurance, based on the lowest rates for minimum liability:

Western states (Wyoming, Hawaii, and Montana) and midwestern states (Iowa and South Dakota) make up the entirety of this list, icing out northeast and southern states. And interestingly, the third-ranked state (Hawaii) is a no-fault state, which typically have higher premiums. That’s because no-fault states require drivers to file a claim with their own insurer if they’re injured in a car accident, regardless of who was at fault.

You should note, however, that the minimum coverages will vary from state to state, so the rates there don’t necessarily translate to an apples-to-apples comparison for the amount of coverage you’ll actually get.

Need a new car insurance policy, but you’re not sure where to start? Check out our list of the cheapest car insurance companies of 2024.

How insurers set car insurance rates

One of the most frustrating things about the insurance industry is that the costs can vary so widely because insurers consider so many factors when setting rates. And the car insurance industry is no different here. Auto insurers typically consider factors like:

• Driving history: Having accidents or a DUI, for example, can raise your rates.
• Age: Older drivers tend to be safer drivers.
• Gender: Women tend to get into fewer accidents than men.
• Car make and model: Some cars have a better safety history, or safety features, than others.
• Desired coverages: Minimum coverage will always be the cheapest option.
• ZIP code: Some areas may have a statistically higher risk of vandalism, theft, or even accidents.
• Credit: Many insurers weigh drivers’ risk of getting into an accident by looking at their credit. Only a few states (California, Hawaii, and Massachusetts) do not use credit-based insurance scores to set rates.

The best car insurance companies will give you the best coverage for the lowest price. And while saving the most money upfront may be an important factor, it shouldn’t necessarily be the only one you consider when shopping for car insurance.

Living in the five cheapest states for car insurance can help drivers score lower rates, but that doesn’t mean they have to move across state lines to access lower rates. And if you’re willing to put a bit of time into gathering multiple quotes, you’ll be able to strike the balance between affordability and coverage.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 

[[{“value”:”Image source: Getty Images
As we rapidly approach the end of the year, it can be tempting to take your focus off your finances and bask in the comfort of the holidays instead. But there are steps you can, and should, take before the year is out if you want to start off strong in the new year.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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 key is knowing where to put your focus to get the best results. Here are five important money moves to make before 2025.1. Review your budgetUnderstanding how you’re actually spending and saving is vital if you want to reach your various money goals. So taking a look at your money habits is a good first step to finding a budget that actually works for you.Interested in using a budgeting app to quickly assess your finances? Check out our list of the best budgeting apps.It can be easy to slip into a self-critical mindset here. But remember: Your habits and goals don’t have moral weight, and your budget can be whatever you want it to be. The key is treating it as a living document that can change over time.2. Change your 401(k) contribution amountIf you have a 401(k) and your employer offers a contribution match, now is the time to contact your 401(k) provider to make sure you’re contributing enough to reach that match. That’s especially true if you received a pay bump at any time during 2024 or if you haven’t adjusted your contribution in more than a year.For example, an extra $500 contributed (about $42 per month) at age 35 can grow to more than $10,000 in your retirement accounts by the time you’re ready to retire.3. Bulk up your emergency fundSavings rates for high-yield savings accounts (HYSAs) are still high, despite the Fed’s recent benchmark rate drops. And if you have money that you don’t need right now, adding that to your emergency fund is a solid way to grow, or at the very least prevent loss of value due to inflation.Ready to take the plunge and get an HYSA? Check out our picks for the top HYSAs available right now.4. Cancel unwanted subscriptionsNew years represent a fresh start, but if you’re still paying for subscriptions that you no longer want or use, that can put a damper on things. And unfortunately, as more and more companies jump on the subscription bandwagon, that can mean more of your money going toward these services.The Federal Trade Commission’s click-to-cancel rule isn’t yet in effect, so you may have to make a few phone calls or jump through hoops to cancel certain subscriptions. But if you’re spending hundreds of extra dollars per year on these services (for example, via a $15 and $35 subscription), it’s time that will be well spent.5. Use up any remaining FSA fundsFlexible spending accounts (FSAs) can be useful tools to reduce your taxable income and pay for medical expenses. But the major caveat there is that those contributions generally don’t roll over from year to year (with a couple of exceptions, such as a 2.5-month grace period if your employer offers one). So using up that cash is vital to make sure it isn’t going to waste.That money can be used on expenses like deductibles, copayments, prescriptions, crutches, and blood sugar kits.Waiting until the new year to tackle your finances can prove to be a misstep. But if you take the time to address these five areas beforehand, you’ll be set up to have an even better 2025. That way, you can focus on accomplishing your goals in 2025 — rather than playing catch-up.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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.”}]] [[{“value”:”

As we rapidly approach the end of the year, it can be tempting to take your focus off your finances and bask in the comfort of the holidays instead. But there are steps you can, and should, take before the year is out if you want to start off strong in the new year.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 key is knowing where to put your focus to get the best results. Here are five important money moves to make before 2025.

1. Review your budget

Understanding how you’re actually spending and saving is vital if you want to reach your various money goals. So taking a look at your money habits is a good first step to finding a budget that actually works for you.

Interested in using a budgeting app to quickly assess your finances? Check out our list of the best budgeting apps.

It can be easy to slip into a self-critical mindset here. But remember: Your habits and goals don’t have moral weight, and your budget can be whatever you want it to be. The key is treating it as a living document that can change over time.

2. Change your 401(k) contribution amount

If you have a 401(k) and your employer offers a contribution match, now is the time to contact your 401(k) provider to make sure you’re contributing enough to reach that match. That’s especially true if you received a pay bump at any time during 2024 or if you haven’t adjusted your contribution in more than a year.

For example, an extra $500 contributed (about $42 per month) at age 35 can grow to more than $10,000 in your retirement accounts by the time you’re ready to retire.

3. Bulk up your emergency fund

Savings rates for high-yield savings accounts (HYSAs) are still high, despite the Fed’s recent benchmark rate drops. And if you have money that you don’t need right now, adding that to your emergency fund is a solid way to grow, or at the very least prevent loss of value due to inflation.

Ready to take the plunge and get an HYSA? Check out our picks for the top HYSAs available right now.

4. Cancel unwanted subscriptions

New years represent a fresh start, but if you’re still paying for subscriptions that you no longer want or use, that can put a damper on things. And unfortunately, as more and more companies jump on the subscription bandwagon, that can mean more of your money going toward these services.

The Federal Trade Commission’s click-to-cancel rule isn’t yet in effect, so you may have to make a few phone calls or jump through hoops to cancel certain subscriptions. But if you’re spending hundreds of extra dollars per year on these services (for example, via a $15 and $35 subscription), it’s time that will be well spent.

5. Use up any remaining FSA funds

Flexible spending accounts (FSAs) can be useful tools to reduce your taxable income and pay for medical expenses. But the major caveat there is that those contributions generally don’t roll over from year to year (with a couple of exceptions, such as a 2.5-month grace period if your employer offers one). So using up that cash is vital to make sure it isn’t going to waste.

That money can be used on expenses like deductibles, copayments, prescriptions, crutches, and blood sugar kits.

Waiting until the new year to tackle your finances can prove to be a misstep. But if you take the time to address these five areas beforehand, you’ll be set up to have an even better 2025. That way, you can focus on accomplishing your goals in 2025 — rather than playing catch-up.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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 

[[{“value”:”Image source: Upsplash/The Motley Fool
By investing in a Costco membership, you can shop members-only deals. Many shoppers keep more money in their checking accounts by shopping at their local club and Costco.com. Some of the products the warehouse club sells can be purchased at other retailers. But there are also some exclusive finds that you can only get at Costco. Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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. If you’re a Costco member, don’t miss these unique buys. Here are a few incredible items exclusive to Costco. 1. $500 Southwest Airlines gift card: $449.99You can purchase Southwest Airlines gift cards from many retailers. But you’ll pay the standard sticker price. However, Costco members can buy these (and other) gift cards at a discount. The warehouse club sells $500 Southwest gift cards for $449.99 — a savings of $50. Sometimes this gift card goes on sale, too. You can get one for as little as $429.99 if you time your purchase to the sale. For frequent travelers, a Costco membership can be an excellent investment for this fantastic deal. This makes for a simple way to save money on airfare expenses. 2. Kirkland Signature Rotisserie Chicken: $4.99 Members rave about Costco’s rotisserie chickens. You can buy an entire Kirkland Signature Rotisserie Chicken for $4.99. You can pick up a rotisserie chicken elsewhere, but it’ll be difficult to beat that price. You’ll get about three pounds of deliciousness for less than $5. If you want to simplify meal prep each week, you may want to add this item to your cart. Just imagine all of the soups, sandwiches, and salads you can create with this find. Want to save more on your next Costco haul? Use a rewards credit card at checkout. Click here to explore our curated list of the top credit cards for Costco shoppers. 3. Kirkland Signature Paper Towels: $19.89 Another item you’ll only find at Costco is Kirkland Signature Paper Towels. I scooped up a package a few weeks ago, and I’ve been converted. I will not buy paper towels elsewhere. Why? They hold up to other name-brand paper towels that cost way more. Even if you were to buy generic paper towels elsewhere, you’d pay more. Prices vary, but at my local club I paid $19.89 for a 12-pack of Kirkland Signature Paper Towel rolls. Each roll features 160 two-ply sheets. You’ll get 1,026 square feet of paper towels per package, and depending on your needs, they can be torn as a whole sheet or half sheet.I researched prices for Target’s generic up&up paper towels to get a feel for the savings you’d get by shopping at Costco. A 12-roll package of up&up Make-A-Size Paper Towels costs $23.99. Each roll has 150 two-ply sheets that can be torn to a size of your choosing. One package contains 811.2 square feet of paper towels. At Costco, you’ll get more paper towels for less. In my experience, Costco paper towels work just as well as the competition, if not better. Plus, each roll is individually wrapped, which is a bonus perk for those of us with furry friends who like to claim everything in sight as their bed. Want to get more value from your warehouse club membership? Check out our favorite strategy to maximize your savings at Costco. Give new-to-you products a tryIf you’re a new Costco member, I recommend adding some Costco-exclusive items to your cart. New-to-you products sold at Costco could end up becoming your regular, go-to buys. Plus, Costco’s low prices can be a significant win for your wallet.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Target. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

By investing in a Costco membership, you can shop members-only deals. Many shoppers keep more money in their checking accounts by shopping at their local club and Costco.com. Some of the products the warehouse club sells can be purchased at other retailers. But there are also some exclusive finds that you can only get at Costco.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.

If you’re a Costco member, don’t miss these unique buys. Here are a few incredible items exclusive to Costco.

1. $500 Southwest Airlines gift card: $449.99

You can purchase Southwest Airlines gift cards from many retailers. But you’ll pay the standard sticker price. However, Costco members can buy these (and other) gift cards at a discount. The warehouse club sells $500 Southwest gift cards for $449.99 — a savings of $50.

Sometimes this gift card goes on sale, too. You can get one for as little as $429.99 if you time your purchase to the sale. For frequent travelers, a Costco membership can be an excellent investment for this fantastic deal. This makes for a simple way to save money on airfare expenses.

2. Kirkland Signature Rotisserie Chicken: $4.99

Members rave about Costco’s rotisserie chickens. You can buy an entire Kirkland Signature Rotisserie Chicken for $4.99. You can pick up a rotisserie chicken elsewhere, but it’ll be difficult to beat that price. You’ll get about three pounds of deliciousness for less than $5.

If you want to simplify meal prep each week, you may want to add this item to your cart. Just imagine all of the soups, sandwiches, and salads you can create with this find.

Want to save more on your next Costco haul? Use a rewards credit card at checkout. Click here to explore our curated list of the top credit cards for Costco shoppers.

3. Kirkland Signature Paper Towels: $19.89

Another item you’ll only find at Costco is Kirkland Signature Paper Towels. I scooped up a package a few weeks ago, and I’ve been converted. I will not buy paper towels elsewhere. Why? They hold up to other name-brand paper towels that cost way more.

Even if you were to buy generic paper towels elsewhere, you’d pay more. Prices vary, but at my local club I paid $19.89 for a 12-pack of Kirkland Signature Paper Towel rolls.

Each roll features 160 two-ply sheets. You’ll get 1,026 square feet of paper towels per package, and depending on your needs, they can be torn as a whole sheet or half sheet.

I researched prices for Target’s generic up&up paper towels to get a feel for the savings you’d get by shopping at Costco. A 12-roll package of up&up Make-A-Size Paper Towels costs $23.99. Each roll has 150 two-ply sheets that can be torn to a size of your choosing.

One package contains 811.2 square feet of paper towels. At Costco, you’ll get more paper towels for less. In my experience, Costco paper towels work just as well as the competition, if not better. Plus, each roll is individually wrapped, which is a bonus perk for those of us with furry friends who like to claim everything in sight as their bed.

Want to get more value from your warehouse club membership? Check out our favorite strategy to maximize your savings at Costco.

Give new-to-you products a try

If you’re a new Costco member, I recommend adding some Costco-exclusive items to your cart. New-to-you products sold at Costco could end up becoming your regular, go-to buys. Plus, Costco’s low prices can be a significant win for your wallet.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Target. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

“}]] Read More