Money Management

[[{“value”:”Image source: Getty Images.
I’ve spent my entire life in Wisconsin, so I know a thing or two about sky-high utility bills in the winter. A balmy day for us is anything above freezing and sometimes we’ll hit 50 degrees below zero. Also, it’s dark around 4 p.m. so our electricity bill goes up a lot too.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. When I first moved into my own place, I didn’t think there was anything I could do other than budget for higher costs. But I’ve learned a few strategies since then that have made those long winter months a little easier for my bank account to bear, and the best part is, you can do them in less than a half hour.1. Switch to time-of-use billingRegular electric billing charges you a standard rate per kilowatt-hour (kWh). The more electricity you use, the higher the bill. It doesn’t matter whether you’re using this electricity in the middle of the day or the middle of the night. You’ll still pay the same based on your total hours of usage.Time-of-use (TOU) billing works differently. It charges different electricity rates at different times of the day. When a lot of people are typically using electricity, costs are higher, and when few people are using electricity, costs are lower.You can use this to your advantage if you’re willing to adjust when you do certain high-energy tasks, like running the dishwasher or the dryer. If you save these until late at night or early in the morning, for example, you might save money compared to doing them right after you get home from work.Not all utility companies offer time-of-use billing, but it doesn’t hurt to check if yours does. Contact the company to inquire about whether this is an option and which time blocks charge the highest and lowest rates.If you decide this option makes sense for you, consider paying for your utility costs with a cash back rewards credit card. You’ll earn a little extra cash back on each dollar spent that you can put toward future expenses. Start by comparing some of our favorite cash back credit cards to see which can maximize your savings.2. Switch to budget billingI signed up for budget billing years ago because it gives me a regular monthly payment rather than one that shoots up every winter. Basically, the utility company looks at how much electricity I’ve used on average over the last six months and assigns me a regular monthly payment for the next six months. That bill won’t change no matter how much I use, so I always know what I’ll have to pay.The downside to this is that it can make you less aware of how much heat and electricity you’re actually using, and that could lead you to overspend. At the end of the six-month period, the utility company re-evaluates your usage and updates your monthly bill. This could jump your monthly costs significantly if you’re not careful. You may also have to pay some extra at the end of the period for the amount you went over the initial billing estimate.Still, if you’re careful to take other cost-cutting steps, like turning off electronic devices when not in use and not setting your thermostat too high, you shouldn’t run into too many problems. You can always contact your utility provider if you want to check your usage at any point.3. Use smart devicesSmart technology can automate some of the money-saving moves we’d like to make but can’t or don’t always remember to. For example, if you’re gone at work all day, you probably don’t need your thermostat as high as you keep it when you’re home. But you also don’t want to come home to a cold house. That’s where a smart thermostat can help. You can program it to let your house cool down when you leave and heat it up again before you return.You can also get smart plugs that you can remotely disable when not in use and smart lights that are dimmable, so you use less electricity. All this requires a small bit of tech-savviness to operate, and possibly a visit from an electrician for installation. But once it’s up and running, you don’t have to give it much thought.If you give the above tips a try and find they’re still not enough to appreciably lower your bills, consider paying for a home energy audit to identify other areas where you can improve. You can find an approved assessor through the U.S. Department of Energy’s website. They should be able to provide you with more personalized guidance for lowering your energy costs.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”:”

I’ve spent my entire life in Wisconsin, so I know a thing or two about sky-high utility bills in the winter. A balmy day for us is anything above freezing and sometimes we’ll hit 50 degrees below zero. Also, it’s dark around 4 p.m. so our electricity bill goes up a lot too.

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.

When I first moved into my own place, I didn’t think there was anything I could do other than budget for higher costs. But I’ve learned a few strategies since then that have made those long winter months a little easier for my bank account to bear, and the best part is, you can do them in less than a half hour.

1. Switch to time-of-use billing

Regular electric billing charges you a standard rate per kilowatt-hour (kWh). The more electricity you use, the higher the bill. It doesn’t matter whether you’re using this electricity in the middle of the day or the middle of the night. You’ll still pay the same based on your total hours of usage.

Time-of-use (TOU) billing works differently. It charges different electricity rates at different times of the day. When a lot of people are typically using electricity, costs are higher, and when few people are using electricity, costs are lower.

You can use this to your advantage if you’re willing to adjust when you do certain high-energy tasks, like running the dishwasher or the dryer. If you save these until late at night or early in the morning, for example, you might save money compared to doing them right after you get home from work.

Not all utility companies offer time-of-use billing, but it doesn’t hurt to check if yours does. Contact the company to inquire about whether this is an option and which time blocks charge the highest and lowest rates.

If you decide this option makes sense for you, consider paying for your utility costs with a cash back rewards credit card. You’ll earn a little extra cash back on each dollar spent that you can put toward future expenses. Start by comparing some of our favorite cash back credit cards to see which can maximize your savings.

2. Switch to budget billing

I signed up for budget billing years ago because it gives me a regular monthly payment rather than one that shoots up every winter. Basically, the utility company looks at how much electricity I’ve used on average over the last six months and assigns me a regular monthly payment for the next six months. That bill won’t change no matter how much I use, so I always know what I’ll have to pay.

The downside to this is that it can make you less aware of how much heat and electricity you’re actually using, and that could lead you to overspend. At the end of the six-month period, the utility company re-evaluates your usage and updates your monthly bill. This could jump your monthly costs significantly if you’re not careful. You may also have to pay some extra at the end of the period for the amount you went over the initial billing estimate.

Still, if you’re careful to take other cost-cutting steps, like turning off electronic devices when not in use and not setting your thermostat too high, you shouldn’t run into too many problems. You can always contact your utility provider if you want to check your usage at any point.

3. Use smart devices

Smart technology can automate some of the money-saving moves we’d like to make but can’t or don’t always remember to. For example, if you’re gone at work all day, you probably don’t need your thermostat as high as you keep it when you’re home. But you also don’t want to come home to a cold house. That’s where a smart thermostat can help. You can program it to let your house cool down when you leave and heat it up again before you return.

You can also get smart plugs that you can remotely disable when not in use and smart lights that are dimmable, so you use less electricity. All this requires a small bit of tech-savviness to operate, and possibly a visit from an electrician for installation. But once it’s up and running, you don’t have to give it much thought.

If you give the above tips a try and find they’re still not enough to appreciably lower your bills, consider paying for a home energy audit to identify other areas where you can improve. You can find an approved assessor through the U.S. Department of Energy’s website. They should be able to provide you with more personalized guidance for lowering your energy costs.

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
Retirement is one of those milestones that seemed light-years away just 10 years ago. Now, it feels as if it’s coming at me like a freight train. This is why I spent the time figuring out our retirement number.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. For my spouse and me, that number is $3.5 million. While that might sound like a lot, it’s not a number we plucked out of thin air — it’s rooted in a careful look at our current investment accounts, an understanding of the type of retirement we want, and the 4% rule that many retirement experts swear by.Here’s how we arrived at this number and why it feels right for us — at least for now.Why $3.5 million?The 4% rule, a popular retirement guideline, suggests that you can safely withdraw 4% of your retirement savings a year without running out of money over a 30-year retirement. For us, that amount would generate $140,000 per year.This amount isn’t just about covering the basics. It’s about living the type of retirement we want, filled with travel, new experiences, and freedom from financial worries.Want to maximize your travel points right now, as well as in retirement? Check out the best travel credit cards.I don’t know that we’ll need quite this much money each year, but I worry about one of us needing nursing care in the future, health scares, and inflation. We’d also like to leave our kids with a nest egg that gives them a slight leg up in the world.Factoring in healthcareHealthcare spending is a wildcard in any retirement plan. While we have good health now, I know healthcare costs are likely to increase in retirement. That’s why we’ve been contributing to a health savings account (HSA) alongside our other retirement accounts.This tax-advantaged account is earmarked for medical expenses, and I plan to let it grow untouched until we need it. We also invest a portion of it, which allows the funds to grow even more. It’s a comforting buffer that helps me feel confident about our $3.5 million target.Why I don’t count Social Security (yet)You might have noticed my calculations don’t consider Social Security retirement savings. That’s on purpose. We’ve heard for years that it won’t be around by the time we retire.I suspect it will be, in some capacity, but at age 40, I’ve got a long way to go. I’ll reevaluate my numbers once we’re closer to retirement and have a better idea of whether it will pay and how much we’ll each receive. I’d rather be a little conservative on my numbers and save a little more than I need.But I also don’t want to waste my life working for money I never have time to spend. Which brings me to my next point.Taking our foot off the gas after 55We plan to roll back savings efforts after the age of 55. By that point, our savings should have reached a point where the compounding interest does the hard work. Our contributions will be drops in the bucket compared to the growth.Want to grow your retirement even faster? An individual retirement account (IRA) can help. Check out our list of the best IRAs.This will allow us to scale back at work; perhaps we’ll go part-time or take on lower-paying passion projects. We’ll have to figure out what to do for insurance if neither of us has a full-time role, and we’ll still need to cover our daily living expenses. But we should be able to spend more time traveling and doing things we enjoy rather than chasing a paycheck.It’s a few years off, so I have time to think about what I want my life to look like, but we don’t plan to work ourselves to death for retirement savings. We’re both very aware that life is short and retirement is not a given. I don’t want to trade my todays for uncertain tomorrows.My number isn’t set in stoneSaving $3.5 million is a big goal, but it’s also a shared one. My spouse and I are in this together, and we’ve mapped out a path that feels achievable. By sticking to our plan, leveraging tools like our HSA, and letting our investments grow, we’re confident we’ll get there.But our number isn’t set in stone — as our lives change and we get closer to retirement, I’ll be reevaluating. I suspect (and kind of hope!) that this current number is a little too high. But, for now, I feel like we have a good balance. We’re saving and also enjoying life, which feels good.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 positions in and recommends Target. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Retirement is one of those milestones that seemed light-years away just 10 years ago. Now, it feels as if it’s coming at me like a freight train. This is why I spent the time figuring out our retirement number.

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.

For my spouse and me, that number is $3.5 million. While that might sound like a lot, it’s not a number we plucked out of thin air — it’s rooted in a careful look at our current investment accounts, an understanding of the type of retirement we want, and the 4% rule that many retirement experts swear by.

Here’s how we arrived at this number and why it feels right for us — at least for now.

Why $3.5 million?

The 4% rule, a popular retirement guideline, suggests that you can safely withdraw 4% of your retirement savings a year without running out of money over a 30-year retirement. For us, that amount would generate $140,000 per year.

This amount isn’t just about covering the basics. It’s about living the type of retirement we want, filled with travel, new experiences, and freedom from financial worries.

Want to maximize your travel points right now, as well as in retirement? Check out the best travel credit cards.

I don’t know that we’ll need quite this much money each year, but I worry about one of us needing nursing care in the future, health scares, and inflation. We’d also like to leave our kids with a nest egg that gives them a slight leg up in the world.

Factoring in healthcare

Healthcare spending is a wildcard in any retirement plan. While we have good health now, I know healthcare costs are likely to increase in retirement. That’s why we’ve been contributing to a health savings account (HSA) alongside our other retirement accounts.

This tax-advantaged account is earmarked for medical expenses, and I plan to let it grow untouched until we need it. We also invest a portion of it, which allows the funds to grow even more. It’s a comforting buffer that helps me feel confident about our $3.5 million target.

Why I don’t count Social Security (yet)

You might have noticed my calculations don’t consider Social Security retirement savings. That’s on purpose. We’ve heard for years that it won’t be around by the time we retire.

I suspect it will be, in some capacity, but at age 40, I’ve got a long way to go. I’ll reevaluate my numbers once we’re closer to retirement and have a better idea of whether it will pay and how much we’ll each receive. I’d rather be a little conservative on my numbers and save a little more than I need.

But I also don’t want to waste my life working for money I never have time to spend. Which brings me to my next point.

Taking our foot off the gas after 55

We plan to roll back savings efforts after the age of 55. By that point, our savings should have reached a point where the compounding interest does the hard work. Our contributions will be drops in the bucket compared to the growth.

Want to grow your retirement even faster? An individual retirement account (IRA) can help. Check out our list of the best IRAs.

This will allow us to scale back at work; perhaps we’ll go part-time or take on lower-paying passion projects. We’ll have to figure out what to do for insurance if neither of us has a full-time role, and we’ll still need to cover our daily living expenses. But we should be able to spend more time traveling and doing things we enjoy rather than chasing a paycheck.

It’s a few years off, so I have time to think about what I want my life to look like, but we don’t plan to work ourselves to death for retirement savings. We’re both very aware that life is short and retirement is not a given. I don’t want to trade my todays for uncertain tomorrows.

My number isn’t set in stone

Saving $3.5 million is a big goal, but it’s also a shared one. My spouse and I are in this together, and we’ve mapped out a path that feels achievable. By sticking to our plan, leveraging tools like our HSA, and letting our investments grow, we’re confident we’ll get there.

But our number isn’t set in stone — as our lives change and we get closer to retirement, I’ll be reevaluating. I suspect (and kind of hope!) that this current number is a little too high. But, for now, I feel like we have a good balance. We’re saving and also enjoying life, which feels good.

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 positions in and recommends Target. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Credit cards tend to have a bad reputation as a tool that leads people to debt. But when used wisely, they’re a great source of extra cash back or rewards. That’s why I make a point to use my credit cards as often as it makes sense to.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. For example, because I do a lot of driving to kids’ activities and sports, I usually have to fill up my car at least once a week. And when I do, I use a credit card that gives me extra cash back at the pump. Similarly, when I shop for groceries, I use a credit card that gives me extra points on my supermarket purchases. Since these are probably regular expenses of yours, too, you should check out this list of the best credit cards for gas and grocery rewards. But there are also certain expenses I specifically won’t put on my credit cards. Here’s what that list looks like for me. 1. Camp tuitionSince my spouse and I both work full-time, we need to put our kids in camp for the summer to ensure we have adequate child care. And because camp is expensive, we like to spread those payments out over the majority of the year and pay a portion of tuition each month. I used to put those tuition payments on a credit card to get the points. But this year, my kids’ camp announced that credit card transactions would incur a 3% surcharge. Since my credit card only gives me 1% back on general purchases like camp tuition, it doesn’t make sense for me to pay extra to use a credit card when I could save money by having it debited from my checking account.2. Restaurant meals that will incur a large surchargeIn my area, most restaurants tack on an extra fee for using a credit card. And while I find that practice annoying, I typically use a credit card anyway because I don’t lose out financially.My go-to credit card gives me 3% back on restaurant purchases, and most eateries in my area limit their credit card surcharge to 3%. So while I don’t gain anything in that situation, I also don’t lose anything. But there are a couple of restaurants that charge 4% extra on restaurant meals. I typically try to avoid those places because I think charging more than the now-standard 3% is obnoxious. But when I don’t get to choose the restaurant and end up in a dining establishment whose credit card surcharge exceeds 3%, I pay with cash instead. In fact, if I’m going to a restaurant I’m not familiar with, I’ll generally try to look up its credit card policy in advance so I’m prepared. And if I see that it’s more than 3%, I’ll stop at an ATM on my way so I have cash to pay for my meal.3. Anything I can’t pay for in full by the time my bill is dueCredit card companies make money by charging interest on balances that aren’t paid in full. But I refuse to hand over my hard-earned money for that purpose.For this reason, I make a point to only put expenses on my credit card that I can pay for in full by the time my bill comes due. This means that if I’m invited on a vacation but don’t have the money to cover it, I’ll say no rather than charge it on my credit card and deal with the consequences afterward.You may, at some point, end up in a situation where you have to charge an emergency expense on a credit card, like a car repair. In that case, waiting isn’t an option, so you might have to carry a balance, pay some interest, and do your best to whittle it down as quickly as possible. But while it’s one thing to pay off an emergency expense over time, it’s another thing to pay off a splurge. I strongly recommend sticking to my rule in that context and only charging expenses you know you’ve got covered. Even though I use my credit cards almost every day, certain expenses don’t belong on them. Before you swipe a credit card, make sure it won’t cost you extra money in the form of added fees. Unfortunately, this newer practice seems to be sticking, so it’s important to be mindful of it. Aside from emergency costs that can’t be avoided, make a rule to never charge an expense you can’t pay in full so you don’t lose money needlessly to credit card interest.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”:”

Credit cards tend to have a bad reputation as a tool that leads people to debt. But when used wisely, they’re a great source of extra cash back or rewards. That’s why I make a point to use my credit cards as often as it makes sense to.

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.

For example, because I do a lot of driving to kids’ activities and sports, I usually have to fill up my car at least once a week. And when I do, I use a credit card that gives me extra cash back at the pump.

Similarly, when I shop for groceries, I use a credit card that gives me extra points on my supermarket purchases. Since these are probably regular expenses of yours, too, you should check out this list of the best credit cards for gas and grocery rewards.

But there are also certain expenses I specifically won’t put on my credit cards. Here’s what that list looks like for me.

1. Camp tuition

Since my spouse and I both work full-time, we need to put our kids in camp for the summer to ensure we have adequate child care. And because camp is expensive, we like to spread those payments out over the majority of the year and pay a portion of tuition each month.

I used to put those tuition payments on a credit card to get the points. But this year, my kids’ camp announced that credit card transactions would incur a 3% surcharge. Since my credit card only gives me 1% back on general purchases like camp tuition, it doesn’t make sense for me to pay extra to use a credit card when I could save money by having it debited from my checking account.

2. Restaurant meals that will incur a large surcharge

In my area, most restaurants tack on an extra fee for using a credit card. And while I find that practice annoying, I typically use a credit card anyway because I don’t lose out financially.

My go-to credit card gives me 3% back on restaurant purchases, and most eateries in my area limit their credit card surcharge to 3%. So while I don’t gain anything in that situation, I also don’t lose anything.

But there are a couple of restaurants that charge 4% extra on restaurant meals. I typically try to avoid those places because I think charging more than the now-standard 3% is obnoxious. But when I don’t get to choose the restaurant and end up in a dining establishment whose credit card surcharge exceeds 3%, I pay with cash instead.

In fact, if I’m going to a restaurant I’m not familiar with, I’ll generally try to look up its credit card policy in advance so I’m prepared. And if I see that it’s more than 3%, I’ll stop at an ATM on my way so I have cash to pay for my meal.

3. Anything I can’t pay for in full by the time my bill is due

Credit card companies make money by charging interest on balances that aren’t paid in full. But I refuse to hand over my hard-earned money for that purpose.

For this reason, I make a point to only put expenses on my credit card that I can pay for in full by the time my bill comes due. This means that if I’m invited on a vacation but don’t have the money to cover it, I’ll say no rather than charge it on my credit card and deal with the consequences afterward.

You may, at some point, end up in a situation where you have to charge an emergency expense on a credit card, like a car repair. In that case, waiting isn’t an option, so you might have to carry a balance, pay some interest, and do your best to whittle it down as quickly as possible.

But while it’s one thing to pay off an emergency expense over time, it’s another thing to pay off a splurge. I strongly recommend sticking to my rule in that context and only charging expenses you know you’ve got covered.

Even though I use my credit cards almost every day, certain expenses don’t belong on them. Before you swipe a credit card, make sure it won’t cost you extra money in the form of added fees. Unfortunately, this newer practice seems to be sticking, so it’s important to be mindful of it. Aside from emergency costs that can’t be avoided, make a rule to never charge an expense you can’t pay in full so you don’t lose money needlessly to credit card interest.

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: The Motley Fool/Upsplash
It might be because I work in the personal finance space, but I have read (and written) a lot about certificates of deposit (CDs) over the last year or so. That’s not surprising — the Federal Reserve’s benchmark interest rate hikes in 2022 and 2023 led to CD rates over 5%, which certainly isn’t the norm. That benchmark rate is now coming down thanks to a Fed cut in September and another just this month, though.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. Despite all the press, and the general sense of urgency in the air to open CDs with high rates while I still can, I’m not taking the bait. Instead, I’m focusing on contributions to my new, first-ever retirement account. Here’s why.Sometimes life gets in the way of retirement investingHow did I end up opening my first retirement account at the ripe old age of 40? I spent my years in my first career earning enough money to meet my bills and debts, and that was it — there wasn’t money left over to invest and I certainly didn’t get any kind of employer match (and rarely even had access to an employer-sponsored retirement plan).After I changed careers in 2021, I started building up my income in my new field, but my initial goals with additional earning power weren’t investing. Instead, I was focused on paying off debt and saving to buy a home. I achieved the first goal in 2022 and the second earlier this year, which means I finally found myself in the position of being able to invest for retirement starting just this past summer.I opened a traditional IRA with an online brokerage, and opted for its robo-advisor service. I’m new to the world of investing, and wanted the most painless option possible. Every week I have money transferred from my checking account to my IRA, where it’s automatically used to buy ETFs and bonds — no fuss, no muss.Intimidated by investing, or just want to keep things simple? Click here for our best robo-advisors for beginners.Why not invest in CDs instead?Simply put, CD returns aren’t high enough for my needs, and CDs themselves don’t have the long timeline I need for retirement investing. While I don’t necessarily intend to retire in the traditional sense — I get bored easily! — it would be nice to spend the next 25 to 30 years padding my IRA so I can eventually work less than full-time hours as a 60- or 70-something. And CDs just won’t generate the kind of returns I’d need to make that a possibility.Let me show you what I mean. Right now, I could probably lock in a CD rate of around 4% — but the S&P 500 has averaged annual returns of around 10% for the last several decades. Just for the sake of argument, let’s look at the difference between investing $7,000 (my annual contribution limit for my IRA) and earning 4% on it vs. 10% over a 25-year period:Rate of ReturnTotal After 25 Years4% per year$291,354.7710% per year$688,036.03Data source: Author’s calculations using Investor.gov calculator. That’s quite a difference, right?Are CDs right for you?I hate to say it, but — it depends. CDs can be a great move in a few scenarios. If you’re a retiree and will be holding large amounts of cash to cover your expenses, a CD will let you lock in your interest rate and not expose your money to the risks of the stock market. And if you have a set amount of money for a set short-term goal (like buying a home or a new car in a year or two), a CD can keep that cash safe and growing until you’re ready to use it.Interested in CDs? Click here for a list of some of the best rates on offer right now.Otherwise, a different type of account likely makes more sense for you, like a high-yield savings account or an investment account. Don’t assume you must jump on the CD bandwagon, just because they’ve been in the news. Make the right choice for your money based on your goals, not the hype.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”:”

It might be because I work in the personal finance space, but I have read (and written) a lot about certificates of deposit (CDs) over the last year or so. That’s not surprising — the Federal Reserve’s benchmark interest rate hikes in 2022 and 2023 led to CD rates over 5%, which certainly isn’t the norm. That benchmark rate is now coming down thanks to a Fed cut in September and another just this month, though.

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.

Despite all the press, and the general sense of urgency in the air to open CDs with high rates while I still can, I’m not taking the bait. Instead, I’m focusing on contributions to my new, first-ever retirement account. Here’s why.

Sometimes life gets in the way of retirement investing

How did I end up opening my first retirement account at the ripe old age of 40? I spent my years in my first career earning enough money to meet my bills and debts, and that was it — there wasn’t money left over to invest and I certainly didn’t get any kind of employer match (and rarely even had access to an employer-sponsored retirement plan).

After I changed careers in 2021, I started building up my income in my new field, but my initial goals with additional earning power weren’t investing. Instead, I was focused on paying off debt and saving to buy a home. I achieved the first goal in 2022 and the second earlier this year, which means I finally found myself in the position of being able to invest for retirement starting just this past summer.

I opened a traditional IRA with an online brokerage, and opted for its robo-advisor service. I’m new to the world of investing, and wanted the most painless option possible. Every week I have money transferred from my checking account to my IRA, where it’s automatically used to buy ETFs and bonds — no fuss, no muss.

Intimidated by investing, or just want to keep things simple? Click here for our best robo-advisors for beginners.

Why not invest in CDs instead?

Simply put, CD returns aren’t high enough for my needs, and CDs themselves don’t have the long timeline I need for retirement investing. While I don’t necessarily intend to retire in the traditional sense — I get bored easily! — it would be nice to spend the next 25 to 30 years padding my IRA so I can eventually work less than full-time hours as a 60- or 70-something. And CDs just won’t generate the kind of returns I’d need to make that a possibility.

Let me show you what I mean. Right now, I could probably lock in a CD rate of around 4% — but the S&P 500 has averaged annual returns of around 10% for the last several decades. Just for the sake of argument, let’s look at the difference between investing $7,000 (my annual contribution limit for my IRA) and earning 4% on it vs. 10% over a 25-year period:

That’s quite a difference, right?

Are CDs right for you?

I hate to say it, but — it depends. CDs can be a great move in a few scenarios. If you’re a retiree and will be holding large amounts of cash to cover your expenses, a CD will let you lock in your interest rate and not expose your money to the risks of the stock market. And if you have a set amount of money for a set short-term goal (like buying a home or a new car in a year or two), a CD can keep that cash safe and growing until you’re ready to use it.

Interested in CDs? Click here for a list of some of the best rates on offer right now.

Otherwise, a different type of account likely makes more sense for you, like a high-yield savings account or an investment account. Don’t assume you must jump on the CD bandwagon, just because they’ve been in the news. Make the right choice for your money based on your goals, not the hype.

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
When I got my first office job in my 20s, I had access to a 401(k) for the first time. Exciting, right? Except, I was making $11 an hour — how was I supposed to save for retirement and afford to do things like eat or pay rent? Plus, retirement seemed so far away.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. While I do wish I’d set aside at least a little back then, my husband and I now have more than $500,000 in various retirement accounts and investment funds earmarked for retirement. This puts us well above the average for our age range.According to the Fed’s Survey of Consumer Finances, the average American between the ages 35 and 44 had $141,520 in retirement savings in 2022 (when the most recent numbers were released). This means the average couple likely has around $282,000 saved by the same age.So, how did we do it? Slowly, over time, and not without a few mistakes along the way. Here are a few steps that helped us build our retirement savings.My husband started his 401(k) in his 20sThis is probably the biggest factor in our retirement savings. My husband started saving for retirement at his first “real” job in his early 20s. By the time we married, it had grown a little bit, but he wasn’t maxing it out or paying much attention to the investments.About 10 years ago, I became interested in personal finance. I joined groups about retiring early and read about people who built large nest eggs. At the time, it seemed out of reach for us. I understood the concept of compounding interest, but reading about people who actually used it and were willing to share their stories was an eye-opener.Our income grew over time, and in our early 30s, we adjusted our budget to ensure he could max out his 401(k) every year. Over the last 10 years, the value of his 401(k) has increased six fold.I started an IRA in my 30sRemember how I said I didn’t start a 401(k) at my first job? I also didn’t start an IRA because I wanted to pay off my student loans. I became self-employed in 2014 and began working toward paying off the loans — which started at $20,000 and ballooned to $35,000 due to deferments and compounding interest. (It turns out that compounding interest works both ways!)I spent the next few years building my income and dumping cash into my loans. Once I paid them off, I finally created an IRA and started maxing it out each year. The max contribution level is much lower than a 401(k), so I took over more of our bills so my husband could continue to max his 401(k). This is a smaller portion of our retirement savings, but it is growing steadily.Ready to open your own IRA? Check out this list of our favorite IRAs.We max every tax-advantaged account as much as possibleIn addition to maxing out my husband’s 401(k) and my IRA, we also max out our health savings account (HSA). We’d had this account for several years, but I didn’t completely understand how they worked.If you have a high-deductible insurance plan, you’ll often get access to an HSA, which allows you to save pre-tax dollars for medical expenses. In addition to lowering your tax liability in the year you save, you can also invest those funds and use the tax-free growth for medical expenses. The average retired couple can expect to spend around $315,000 on healthcare expenses in retirement, so this fund just for medical costs will likely serve us well.We pay attention to returnsIt’s easy to put your retirement investments on autopilot and forget about them. In the past, we sometimes left money in funds that weren’t performing that well because we didn’t know where else to put it.As we learned more, we started paying closer attention to how our investments were performing and moving money to more stable investments, like index funds. While index funds are still at the mercy of market fluctuations, they tend to be a bit more stable.Where you put your money will depend on your risk level, but pay attention to how your investments perform over time so you can make the most of your savings.We have sinking funds for expected expensesIn my high-yield savings account (HYSA), I have buckets for expenses like a new car, car repairs, house maintenance, pet medical needs, a new laptop, and the kids’ summer camp. While this isn’t specifically money for retirement, it helps protect our retirement account because we won’t pull funds out of retirement savings when expenses pop up.It means we don’t have to lower our retirement savings rate to cover unexpected costs — because we’ve anticipated as many as possible.Want to earn up to 5% APY in an HYSA? Check out some of the best saving account rates now.What would I change?With more than $500,000 in retirement accounts, I finally feel like we’re in a good place. We still have time to save, so I am fairly confident we’ll have enough to navigate our later years without pinching pennies.But I also know we’d be in a better place if I started my IRA a little earlier. I also wish I’d known to max out accounts earlier, but honestly, I don’t think we could have. With two kids and all the expenses that come with them, it was hard to find the money to invest in our future in our early 30s.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”:”

When I got my first office job in my 20s, I had access to a 401(k) for the first time. Exciting, right? Except, I was making $11 an hour — how was I supposed to save for retirement and afford to do things like eat or pay rent? Plus, retirement seemed so far away.

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.

While I do wish I’d set aside at least a little back then, my husband and I now have more than $500,000 in various retirement accounts and investment funds earmarked for retirement. This puts us well above the average for our age range.

According to the Fed’s Survey of Consumer Finances, the average American between the ages 35 and 44 had $141,520 in retirement savings in 2022 (when the most recent numbers were released). This means the average couple likely has around $282,000 saved by the same age.

So, how did we do it? Slowly, over time, and not without a few mistakes along the way. Here are a few steps that helped us build our retirement savings.

My husband started his 401(k) in his 20s

This is probably the biggest factor in our retirement savings. My husband started saving for retirement at his first “real” job in his early 20s. By the time we married, it had grown a little bit, but he wasn’t maxing it out or paying much attention to the investments.

About 10 years ago, I became interested in personal finance. I joined groups about retiring early and read about people who built large nest eggs. At the time, it seemed out of reach for us. I understood the concept of compounding interest, but reading about people who actually used it and were willing to share their stories was an eye-opener.

Our income grew over time, and in our early 30s, we adjusted our budget to ensure he could max out his 401(k) every year. Over the last 10 years, the value of his 401(k) has increased six fold.

I started an IRA in my 30s

Remember how I said I didn’t start a 401(k) at my first job? I also didn’t start an IRA because I wanted to pay off my student loans. I became self-employed in 2014 and began working toward paying off the loans — which started at $20,000 and ballooned to $35,000 due to deferments and compounding interest. (It turns out that compounding interest works both ways!)

I spent the next few years building my income and dumping cash into my loans. Once I paid them off, I finally created an IRA and started maxing it out each year. The max contribution level is much lower than a 401(k), so I took over more of our bills so my husband could continue to max his 401(k). This is a smaller portion of our retirement savings, but it is growing steadily.

Ready to open your own IRA? Check out this list of our favorite IRAs.

We max every tax-advantaged account as much as possible

In addition to maxing out my husband’s 401(k) and my IRA, we also max out our health savings account (HSA). We’d had this account for several years, but I didn’t completely understand how they worked.

If you have a high-deductible insurance plan, you’ll often get access to an HSA, which allows you to save pre-tax dollars for medical expenses. In addition to lowering your tax liability in the year you save, you can also invest those funds and use the tax-free growth for medical expenses. The average retired couple can expect to spend around $315,000 on healthcare expenses in retirement, so this fund just for medical costs will likely serve us well.

We pay attention to returns

It’s easy to put your retirement investments on autopilot and forget about them. In the past, we sometimes left money in funds that weren’t performing that well because we didn’t know where else to put it.

As we learned more, we started paying closer attention to how our investments were performing and moving money to more stable investments, like index funds. While index funds are still at the mercy of market fluctuations, they tend to be a bit more stable.

Where you put your money will depend on your risk level, but pay attention to how your investments perform over time so you can make the most of your savings.

We have sinking funds for expected expenses

In my high-yield savings account (HYSA), I have buckets for expenses like a new car, car repairs, house maintenance, pet medical needs, a new laptop, and the kids’ summer camp. While this isn’t specifically money for retirement, it helps protect our retirement account because we won’t pull funds out of retirement savings when expenses pop up.

It means we don’t have to lower our retirement savings rate to cover unexpected costs — because we’ve anticipated as many as possible.

Want to earn up to 5% APY in an HYSA? Check out some of the best saving account rates now.

What would I change?

With more than $500,000 in retirement accounts, I finally feel like we’re in a good place. We still have time to save, so I am fairly confident we’ll have enough to navigate our later years without pinching pennies.

But I also know we’d be in a better place if I started my IRA a little earlier. I also wish I’d known to max out accounts earlier, but honestly, I don’t think we could have. With two kids and all the expenses that come with them, it was hard to find the money to invest in our future in our early 30s.

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
Breaking up with your bank can be almost as hard as breaking up with an actual person. Not only do you have to get used to a new routine, but you also have to get comfortable trusting a new bank with your money. 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. But switching banks has the potential to benefit you in different ways. If these signs apply to you, it may be best to make a change before 2024 comes to an end.1. You’re earning a minimal amount of interest on your savingsThe Federal Reserve has cut its benchmark interest rate twice in 2024. You may find that your savings account is paying you less interest now than it was a few months ago.But you should also make sure the interest rate you’re getting on your savings is competitive. Many savings accounts are paying around 4%, so if you’re getting nowhere close, it’s a sure sign that it’s time to change banks. There’s no reason to deprive yourself of interest on the cash you have parked, so click here for a list of the top savings accounts and rates today.2. Your bank’s CD rates aren’t competitiveSince the Federal Reserve is likely to continue making interest rate cuts, now’s a good time to open a CD. But if you’re not seeing great CD rates from your bank, then it’s time to make a switch.This is an especially important thing to do if you plan to open a longer-term CD — say, one with a 36-, 48-, or 60-month period until it matures. Click here for a list of the best CD rates today so you can earn more on your money.3. Your checking account’s fees are highIt’s not uncommon for banks to charge maintenance fees to checking account holders. But if those fees are higher than usual, you could be throwing your money away. And if your checking account’s maintenance fee is more than $15 a month, it’s a sign you’re paying too much unless you happen to have a premium account with built-in perks, like a high interest rate or other rewards. Similarly, many banks have done away with overdraft fees. If yours continues to charge them, then it’s time to shop around for a new checking account. 4. Your mobile banking experience leaves much to be desiredA lot of people do their banking on the go these days. But if your bank’s app is hard to use or crashes frequently, that can be a huge inconvenience. And it’s reason enough to make a change.You may want to switch to an online-only bank. A bank that doesn’t have physical branches may be more likely to invest in better technology. Plus, as a bonus, online banks tend to have fewer expenses than physical banks. Because of this, they’re often able to offer better interest rates on savings accounts and CDs and lower or no fees.5. Your bank’s location is no longer convenient to youThere can be benefits to keeping your money at a physical bank, like getting access to ATMs or other in-person services. But if your bank’s location is no longer convenient for you, then that alone is a good reason to make a change.Perhaps you chose a bank that was close to your office, only now you’re working remotely or have switched jobs. In that case, you can continue to bank at a brick-and-mortar establishment. But you might as well find one that’s easy to get to, and whose hours work with your schedule.Just as it can be hard to end a relationship, so too can it be difficult to cut ties with your bank. But if these signs apply to you, it pays to look at making a switch before the new year arrives.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”:”

Breaking up with your bank can be almost as hard as breaking up with an actual person. Not only do you have to get used to a new routine, but you also have to get comfortable trusting a new bank with your money.

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.

But switching banks has the potential to benefit you in different ways. If these signs apply to you, it may be best to make a change before 2024 comes to an end.

1. You’re earning a minimal amount of interest on your savings

The Federal Reserve has cut its benchmark interest rate twice in 2024. You may find that your savings account is paying you less interest now than it was a few months ago.

But you should also make sure the interest rate you’re getting on your savings is competitive. Many savings accounts are paying around 4%, so if you’re getting nowhere close, it’s a sure sign that it’s time to change banks. There’s no reason to deprive yourself of interest on the cash you have parked, so click here for a list of the top savings accounts and rates today.

2. Your bank’s CD rates aren’t competitive

Since the Federal Reserve is likely to continue making interest rate cuts, now’s a good time to open a CD. But if you’re not seeing great CD rates from your bank, then it’s time to make a switch.

This is an especially important thing to do if you plan to open a longer-term CD — say, one with a 36-, 48-, or 60-month period until it matures. Click here for a list of the best CD rates today so you can earn more on your money.

3. Your checking account’s fees are high

It’s not uncommon for banks to charge maintenance fees to checking account holders. But if those fees are higher than usual, you could be throwing your money away. And if your checking account’s maintenance fee is more than $15 a month, it’s a sign you’re paying too much unless you happen to have a premium account with built-in perks, like a high interest rate or other rewards.

Similarly, many banks have done away with overdraft fees. If yours continues to charge them, then it’s time to shop around for a new checking account.

4. Your mobile banking experience leaves much to be desired

A lot of people do their banking on the go these days. But if your bank’s app is hard to use or crashes frequently, that can be a huge inconvenience. And it’s reason enough to make a change.

You may want to switch to an online-only bank. A bank that doesn’t have physical branches may be more likely to invest in better technology.

Plus, as a bonus, online banks tend to have fewer expenses than physical banks. Because of this, they’re often able to offer better interest rates on savings accounts and CDs and lower or no fees.

5. Your bank’s location is no longer convenient to you

There can be benefits to keeping your money at a physical bank, like getting access to ATMs or other in-person services. But if your bank’s location is no longer convenient for you, then that alone is a good reason to make a change.

Perhaps you chose a bank that was close to your office, only now you’re working remotely or have switched jobs. In that case, you can continue to bank at a brick-and-mortar establishment. But you might as well find one that’s easy to get to, and whose hours work with your schedule.

Just as it can be hard to end a relationship, so too can it be difficult to cut ties with your bank. But if these signs apply to you, it pays to look at making a switch before the new year arrives.

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