Money Management

[[{“value”:”Image source: Getty Images
Christmas is only a few weeks away, and now is the time to shop for your holiday must-haves. In addition to purchasing gifts to put under the tree, don’t forget to order advent calendars for your pals. An advent calendar can make the days leading up to Christmas feel extra special.Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!With a Costco membership, you can buy unique advent calendars without depleting all the funds in your checking account. There are options for kids, adults, and fur friends, too. Ready to go shopping? Here are some fun advent calendars you can buy at Costco for less than $40.1. Bonne Maman 12 Days of Christmas Advent Calendar: $15.99If you’re a fan of jellies and jams, this advent calendar is for you. Bonne Maman sells an annual advent calendar with 24 jars of mini jams and spreads on its website. Foodies rave about this calendar. And guess what? You can score a mini version at your local club. Costco sells a Bonne Maman 12 Days of Christmas Advent Calendar with 12 jars of mini spreads. It’ll cost you around $15.99. Whether you treat yourself or someone you love, this will surely be a winning gift.2. Star Wars Advent Calendar: $28.99This one is perfect for the Star Wars fans in your life. The Disney Star Wars Advent Calendar features 24 days of surprises and is intended for kids ages 3 and older. It includes assorted candy and Mash’em’s toys. Prices vary by location but you can expect to pay around $28.99 for this find.Want to earn rewards on your next Costco haul? The right credit card can help. Click here to review our curated list of the top credit cards that offer big rewards at Costco.3. Cat Toys 12-day Advent Calendar: $9.69You want your furry companions to feel included! Costco sells a Cat Toys 12-day Advent Calendar. Each calendar contains 12 toys that your cat is sure to love. Prices vary by club, but you can get this festive gift for your kitty for around $9.69.4. BARK Season’s Sweetings Advent Calendar for Dogs: $39.99Costco has an advent calendar for your dog, too! The BARK Season’s Sweetings Advent Calendar for Dogs includes 24 surprises for your best friend. Each calendar has eight Christmas-themed toys and 16 yummy treats. You can expect to pay around $39.99 when purchasing this calendar at your local club. We have a feeling this will be a big hit.5. Elf Advent Calendar: $9.99Here’s another one for the kiddos on your shopping list. The Elf Advent Calendar is another fun calendar you can get from Costco. It’s the ideal gift for Elf movie fans. This advent calendar features 24 movie-themed surprises and is perfect for kids ages 4 and up. You can buy it for $9.99 at Costco.com. This is an online-only deal.Shop at Costco to honor your budget this holiday seasonIt’s not too late to get all the essentials you need for the upcoming holidays. Even better, you don’t have to worry about overspending as long as you have a Costco card in your wallet. Take advantage of deals like this to maximize your Costco membership. To save even more, check the retailer’s mobile app and website for extra discount opportunities.Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!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. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Christmas is only a few weeks away, and now is the time to shop for your holiday must-haves. In addition to purchasing gifts to put under the tree, don’t forget to order advent calendars for your pals. An advent calendar can make the days leading up to Christmas feel extra special.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

With a Costco membership, you can buy unique advent calendars without depleting all the funds in your checking account. There are options for kids, adults, and fur friends, too. Ready to go shopping? Here are some fun advent calendars you can buy at Costco for less than $40.

1. Bonne Maman 12 Days of Christmas Advent Calendar: $15.99

If you’re a fan of jellies and jams, this advent calendar is for you. Bonne Maman sells an annual advent calendar with 24 jars of mini jams and spreads on its website. Foodies rave about this calendar. And guess what? You can score a mini version at your local club. Costco sells a Bonne Maman 12 Days of Christmas Advent Calendar with 12 jars of mini spreads. It’ll cost you around $15.99. Whether you treat yourself or someone you love, this will surely be a winning gift.

2. Star Wars Advent Calendar: $28.99

This one is perfect for the Star Wars fans in your life. The Disney Star Wars Advent Calendar features 24 days of surprises and is intended for kids ages 3 and older. It includes assorted candy and Mash’em’s toys. Prices vary by location but you can expect to pay around $28.99 for this find.

Want to earn rewards on your next Costco haul? The right credit card can help. Click here to review our curated list of the top credit cards that offer big rewards at Costco.

3. Cat Toys 12-day Advent Calendar: $9.69

You want your furry companions to feel included! Costco sells a Cat Toys 12-day Advent Calendar. Each calendar contains 12 toys that your cat is sure to love. Prices vary by club, but you can get this festive gift for your kitty for around $9.69.

4. BARK Season’s Sweetings Advent Calendar for Dogs: $39.99

Costco has an advent calendar for your dog, too! The BARK Season’s Sweetings Advent Calendar for Dogs includes 24 surprises for your best friend. Each calendar has eight Christmas-themed toys and 16 yummy treats. You can expect to pay around $39.99 when purchasing this calendar at your local club. We have a feeling this will be a big hit.

5. Elf Advent Calendar: $9.99

Here’s another one for the kiddos on your shopping list. The Elf Advent Calendar is another fun calendar you can get from Costco. It’s the ideal gift for Elf movie fans. This advent calendar features 24 movie-themed surprises and is perfect for kids ages 4 and up. You can buy it for $9.99 at Costco.com. This is an online-only deal.

Shop at Costco to honor your budget this holiday season

It’s not too late to get all the essentials you need for the upcoming holidays. Even better, you don’t have to worry about overspending as long as you have a Costco card in your wallet. Take advantage of deals like this to maximize your Costco membership. To save even more, check the retailer’s mobile app and website for extra discount opportunities.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Even if you’re at mid-career or entering the later years of your career, it’s never too late to save for retirement. But if you’re 50 years old with no retirement savings, you need to make a plan to start saving and investing now.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. Let’s look at a few examples of how someone who’s 50 years old with no retirement savings could still retire in comfort — and how to invest your cash for the best possible results.Start with Social SecurityEven if you have $0 saved for retirement so far, it’s important to understand how much retirement income you’re likely to get from Social Security. As of September 2024, the average Social Security benefit for a retired worker was $1,921.56 per month. Social Security replaces about 40% of the average worker’s pre-retirement income.That’s better than nothing, but not enough money for most people to comfortably pay the bills in retirement. You don’t want retiring to feel like taking a 60% pay cut. This is why most Americans need to invest for retirement. Investing cash from every paycheck with a 401(k) at work is a great way to build wealth, but you can also use other investment accounts.Want to grow your retirement savings faster than just using your 401(k)? Click here to learn more about the best IRA accounts — even if you’re getting a late start on retirement investing, these top-rated brokerages can help you get richer with a wide range of investment offerings and low fees.How to retire with $0 saved at age 50Everyone’s retirement planning situation is different, but we’re going to make a few calculations based on the “typical” or “median” American’s personal finances. Let’s say that:Your income is $80,610 (the median U.S. household income as of 2023)You save 12% of your income for retirement, including any employer match to your 401(k) or other workplace retirement plan. That means $9,673 per year, or $806 per month.You invest your retirement savings in a diversified portfolio of mostly stock ETFs, like an S&P 500 index fund.Your retirement investments earn an average annual return of 8%. (There’s no guarantee of earning this return, but it’s a reasonable estimate based on past performance of the S&P 500 index.)You keep saving this same amount per month and let your savings grow for 17 more years, until you reach age 67.After 17 years, you’d have $326,432 in your investment portfolio at age 67. If you withdraw 4% of this retirement nest egg money per year as retirement income, that would give you an annual retirement income of $13,057.But wait: let’s assume you also get 40% of your pre-retirement income from Social Security. You can expect to earn $32,244, which is 40% of that $80,610. Adding those two numbers together gives you a combined annual income in retirement of $45,301.How much do you need for average retirement income?Based on your monthly housing costs and healthcare costs, an income of $45,301 per year could be enough for a decent retirement. Many Americans retire without being millionaires; the median income for Americans age 65 and over is $50,290.If your mortgage is paid off and your monthly bills are low, living on 10% less than the median retirement-age income could be doable.Bottom lineEven if you’re 50 years old and haven’t saved any money for retirement yet, you might still be able to retire and maintain a decent standard of living. But be prepared to invest enough money so that your retirement savings can help replace more than the 40% of your income that you can expect to get from Social Security. And consider taking action right now to open a brokerage account.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”:”

Even if you’re at mid-career or entering the later years of your career, it’s never too late to save for retirement. But if you’re 50 years old with no retirement savings, you need to make a plan to start saving and investing now.

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.

Let’s look at a few examples of how someone who’s 50 years old with no retirement savings could still retire in comfort — and how to invest your cash for the best possible results.

Start with Social Security

Even if you have $0 saved for retirement so far, it’s important to understand how much retirement income you’re likely to get from Social Security. As of September 2024, the average Social Security benefit for a retired worker was $1,921.56 per month. Social Security replaces about 40% of the average worker’s pre-retirement income.

That’s better than nothing, but not enough money for most people to comfortably pay the bills in retirement. You don’t want retiring to feel like taking a 60% pay cut. This is why most Americans need to invest for retirement. Investing cash from every paycheck with a 401(k) at work is a great way to build wealth, but you can also use other investment accounts.

Want to grow your retirement savings faster than just using your 401(k)? Click here to learn more about the best IRA accounts — even if you’re getting a late start on retirement investing, these top-rated brokerages can help you get richer with a wide range of investment offerings and low fees.

How to retire with $0 saved at age 50

Everyone’s retirement planning situation is different, but we’re going to make a few calculations based on the “typical” or “median” American’s personal finances. Let’s say that:

Your income is $80,610 (the median U.S. household income as of 2023)You save 12% of your income for retirement, including any employer match to your 401(k) or other workplace retirement plan. That means $9,673 per year, or $806 per month.You invest your retirement savings in a diversified portfolio of mostly stock ETFs, like an S&P 500 index fund.Your retirement investments earn an average annual return of 8%. (There’s no guarantee of earning this return, but it’s a reasonable estimate based on past performance of the S&P 500 index.)You keep saving this same amount per month and let your savings grow for 17 more years, until you reach age 67.

After 17 years, you’d have $326,432 in your investment portfolio at age 67. If you withdraw 4% of this retirement nest egg money per year as retirement income, that would give you an annual retirement income of $13,057.

But wait: let’s assume you also get 40% of your pre-retirement income from Social Security. You can expect to earn $32,244, which is 40% of that $80,610. Adding those two numbers together gives you a combined annual income in retirement of $45,301.

How much do you need for average retirement income?

Based on your monthly housing costs and healthcare costs, an income of $45,301 per year could be enough for a decent retirement. Many Americans retire without being millionaires; the median income for Americans age 65 and over is $50,290.

If your mortgage is paid off and your monthly bills are low, living on 10% less than the median retirement-age income could be doable.

Bottom line

Even if you’re 50 years old and haven’t saved any money for retirement yet, you might still be able to retire and maintain a decent standard of living. But be prepared to invest enough money so that your retirement savings can help replace more than the 40% of your income that you can expect to get from Social Security. And consider taking action right now to open a brokerage account.

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
My generation has seen a lot of changes to how pretty much everything is done, including the fact that we’re the first generation to really have to worry about managing our own retirement as a whole. We were offered 401(k)s instead of pensions and left to make our way to aging gracefully without a ton of guidance.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. As a Gen Xer, honestly, this is kind of fitting. We often had to make our own way because parenting when we were young was just different. We were feral, and it was fine. Except that it’s less fine when you’re trying to manage retirement with your inner agent of chaos shouting rabid thoughts about buying new Doc Martens even though you already have four pairs in the closet.A lot of people my age are finding themselves running out of time with a fairly decent mortgage balance left. What do you do if you’re 45 and have a $300K mortgage? I have a couple of ideas.1. Pay extra each monthMaking a few extra payments can go a long way to paying your home off faster. Let’s say you have 20 years left on your mortgage. According to Freddie Mac research, the odds are incredibly good that your mortgage interest rate is under 4%. If you borrowed $350,000 initially at 4% on a 30-year fixed mortgage, your principal and interest payment should be about $1,670.Even if you waited until year 10 of your mortgage to start making one extra payment of $1,670 per year, you can cut your loan term down from 360 months to 331 months, shaving 2.4 years off your note.If you can start paying $300 extra each month in year 10, you can shorten your term even more — to 306 months, saving yourself 4.5 years. That’s money you can then put toward your retirement.Of course, if this isn’t an older loan, it might pay to first refinance your mortgage to a better rate before trying to knock it out. We have a curated list of refinance mortgage lenders here to help you get started.2. Plan to downsizeIf you recently purchased your house and you have kids at home, paying extra might not really be an option. This is when we have to make hard decisions for the future.The average mortgage debt for Gen Xers is just about $280,000, and your $300,000 is more than that. Being at the tail end of the generation certainly may be enough to balance it in the end, but it’s still a lot of debt to have at age 45 unless you live in a high-cost-of-living area.This is where, as a friend, I’d suggest you raise your family, maintain your home, and plan to sell it once the kids move out. You simply can’t enter retirement with that much debt hanging over you, but you need a place to live, so your options are limited. Keeping your home’s value up and knowing it won’t be your last home can help you prepare financially and emotionally for letting go when the time comes.In the meantime, research locations you’d like to retire to — places where the cost of living is low, the benefits of living there are high, and where you’d genuinely enjoy spending your golden years.Also think about what you really need in a home that’s just for you or you and your partner, and take a gander at what you can buy for below the average market price there. In many cities, there are small homes, condos, and even very nice mobile homes that may be in play, depending on your needs.You can keep an eye on mortgage rates to help plan for your future. They’re potentially much higher than when you bought your home, but change constantly, so don’t lose heart.I’m Gen X, too, and retirement planning starts for us todayI know it’s hard to think of ourselves as being close enough to retirement to have to actually work toward it, but we are, and it is. We’ve long ago traded our wild nights for game night with the kids or movies on the couch, but now we also have to think about what we do for ourselves as we age.Getting your housing costs under control is one of the best things you can do for Future You, so start with a plan that makes sense for your income and stick to it.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.Citigroup is an advertising partner of Motley Fool Money. Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

My generation has seen a lot of changes to how pretty much everything is done, including the fact that we’re the first generation to really have to worry about managing our own retirement as a whole. We were offered 401(k)s instead of pensions and left to make our way to aging gracefully without a ton of guidance.

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.

As a Gen Xer, honestly, this is kind of fitting. We often had to make our own way because parenting when we were young was just different. We were feral, and it was fine. Except that it’s less fine when you’re trying to manage retirement with your inner agent of chaos shouting rabid thoughts about buying new Doc Martens even though you already have four pairs in the closet.

A lot of people my age are finding themselves running out of time with a fairly decent mortgage balance left. What do you do if you’re 45 and have a $300K mortgage? I have a couple of ideas.

1. Pay extra each month

Making a few extra payments can go a long way to paying your home off faster. Let’s say you have 20 years left on your mortgage. According to Freddie Mac research, the odds are incredibly good that your mortgage interest rate is under 4%. If you borrowed $350,000 initially at 4% on a 30-year fixed mortgage, your principal and interest payment should be about $1,670.

Even if you waited until year 10 of your mortgage to start making one extra payment of $1,670 per year, you can cut your loan term down from 360 months to 331 months, shaving 2.4 years off your note.

If you can start paying $300 extra each month in year 10, you can shorten your term even more — to 306 months, saving yourself 4.5 years. That’s money you can then put toward your retirement.

Of course, if this isn’t an older loan, it might pay to first refinance your mortgage to a better rate before trying to knock it out. We have a curated list of refinance mortgage lenders here to help you get started.

2. Plan to downsize

If you recently purchased your house and you have kids at home, paying extra might not really be an option. This is when we have to make hard decisions for the future.

The average mortgage debt for Gen Xers is just about $280,000, and your $300,000 is more than that. Being at the tail end of the generation certainly may be enough to balance it in the end, but it’s still a lot of debt to have at age 45 unless you live in a high-cost-of-living area.

This is where, as a friend, I’d suggest you raise your family, maintain your home, and plan to sell it once the kids move out. You simply can’t enter retirement with that much debt hanging over you, but you need a place to live, so your options are limited. Keeping your home’s value up and knowing it won’t be your last home can help you prepare financially and emotionally for letting go when the time comes.

In the meantime, research locations you’d like to retire to — places where the cost of living is low, the benefits of living there are high, and where you’d genuinely enjoy spending your golden years.

Also think about what you really need in a home that’s just for you or you and your partner, and take a gander at what you can buy for below the average market price there. In many cities, there are small homes, condos, and even very nice mobile homes that may be in play, depending on your needs.

You can keep an eye on mortgage rates to help plan for your future. They’re potentially much higher than when you bought your home, but change constantly, so don’t lose heart.

I’m Gen X, too, and retirement planning starts for us today

I know it’s hard to think of ourselves as being close enough to retirement to have to actually work toward it, but we are, and it is. We’ve long ago traded our wild nights for game night with the kids or movies on the couch, but now we also have to think about what we do for ourselves as we age.

Getting your housing costs under control is one of the best things you can do for Future You, so start with a plan that makes sense for your income and stick to it.

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.Citigroup is an advertising partner of Motley Fool Money. Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Not every celebrity offers good financial advice, but Warren Buffett is one who you should listen to. The legendary investor is known for his value-focused investing style and his down-to-earth personal finance tips.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. Let’s look at what Warren Buffett thinks you should do if you have credit card debt — and what this advice can teach us about investing.Warren Buffett’s credit card advice: Pay off high-interest debt firstWarren Buffett was quoted by CNBC speaking about a friend who had asked what she should do with some extra cash. The first question he asked was: “Do you have any credit card debt?”As Buffett described, this person was carrying a credit card balance that charged 18% APR. Warren Buffett encouraged his friend to pay off credit card debt first, before making any other investment moves. “If I owed any money at 18%, the first thing I’d do with any money I had would be to pay it off,” Warren Buffett said. “It’s going to be way better than any investment idea I’ve got.”If you have credit card debt that charges 18% APR, that’s high-interest debt. That debt is costing you more money than you can make with any high-yield savings account and most stocks.If you want to pay off credit card debt faster, using a 0% introductory APR balance transfer credit card could be a good choice. Click here for a complete list of our favorite credit cards with balance transfer offers to help you pay off debt.Using a balance transfer credit card can help you buy time to pay off credit card debt faster, by reducing your interest costs. But make sure you have a plan to pay off the entire debt by the end of the introductory 0% APR period, or you could end up owing higher interest on the full amount of the balance.Why high-interest debt is a bad investmentAs a legendary long-time investor, it’s not surprising that Warren Buffett considers credit card debt through the lens of investing. Paying for high-interest debt is like having a bad investment that costs you money. And every year with credit card debt at 18% APR (or higher), your debt is costing more money than any investment could likely gain.Even Warren Buffett doesn’t confidently believe he can earn more than 18% per year with an investment portfolio: “I don’t know how to make 18%,” Warren Buffett said. For example, the S&P 500 index has delivered an average compound annual growth rate of 10.7% for the past 30 years. But credit card debt costs more than even this high-yield return on investment (ROI) can deliver. Before you buy stocks, you should pay off your credit card debt.When to pay off “good debt” more slowlyNot all debt is bad. If you have high-interest debt like that held on credit cards, or a high-interest car loan of 10% or more, you should prioritize paying it off before you start investing.But there are a few types of “good debt” that can be worth paying off more slowly.Mortgage debtIf you have a mortgage interest rate of 6%-8%, that is generally considered “good debt,” because you’re using the debt to buy an asset (a home) that is likely to go up in value over time. And over many years, the S&P 500 index or other stock market investments might deliver a higher yield than you’re paying on your mortgage interest.For example, if your mortgage rate is 6.5%, don’t feel as if you should hurry to pay down your mortgage faster. If you invest your extra cash in the S&P 500 index, even if it only earns 8% per year, you’re coming out ahead.Auto loansBorrowing to buy a car can be a form of “good debt,” because it gives you reliable transportation to get to work and live your life. Auto loan interest rates are based on the age of your vehicle, the length of the loan term, your personal credit score, and other factors. It’s true that some auto loans charge high interest rates, and you might want to pay off that debt faster if possible.But some of the best auto loans have APRs of 6% or lower. If you have a low-interest auto loan, you don’t have to make extra loan payments to pay it off faster. Instead, you might be better off keeping your extra cash in a high-yield savings account that pays 4.00% APY or higher. Even if your cash doesn’t earn a higher APY than the APR on your auto loan, preserving your extra cash and keeping your options open can give you peace of mind and be a good financial strategy.Bottom lineWarren Buffett is legendary for earning high returns in the stock market, but even he knows the value of paying off high-interest debt first. Before you start putting extra cash into stocks, make sure you pay off your credit cards.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”:”

Not every celebrity offers good financial advice, but Warren Buffett is one who you should listen to. The legendary investor is known for his value-focused investing style and his down-to-earth personal finance tips.

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.

Let’s look at what Warren Buffett thinks you should do if you have credit card debt — and what this advice can teach us about investing.

Warren Buffett’s credit card advice: Pay off high-interest debt first

Warren Buffett was quoted by CNBC speaking about a friend who had asked what she should do with some extra cash. The first question he asked was: “Do you have any credit card debt?”

As Buffett described, this person was carrying a credit card balance that charged 18% APR. Warren Buffett encouraged his friend to pay off credit card debt first, before making any other investment moves. “If I owed any money at 18%, the first thing I’d do with any money I had would be to pay it off,” Warren Buffett said. “It’s going to be way better than any investment idea I’ve got.”

If you have credit card debt that charges 18% APR, that’s high-interest debt. That debt is costing you more money than you can make with any high-yield savings account and most stocks.

If you want to pay off credit card debt faster, using a 0% introductory APR balance transfer credit card could be a good choice. Click here for a complete list of our favorite credit cards with balance transfer offers to help you pay off debt.

Using a balance transfer credit card can help you buy time to pay off credit card debt faster, by reducing your interest costs. But make sure you have a plan to pay off the entire debt by the end of the introductory 0% APR period, or you could end up owing higher interest on the full amount of the balance.

Why high-interest debt is a bad investment

As a legendary long-time investor, it’s not surprising that Warren Buffett considers credit card debt through the lens of investing. Paying for high-interest debt is like having a bad investment that costs you money. And every year with credit card debt at 18% APR (or higher), your debt is costing more money than any investment could likely gain.

Even Warren Buffett doesn’t confidently believe he can earn more than 18% per year with an investment portfolio: “I don’t know how to make 18%,” Warren Buffett said. For example, the S&P 500 index has delivered an average compound annual growth rate of 10.7% for the past 30 years. But credit card debt costs more than even this high-yield return on investment (ROI) can deliver. Before you buy stocks, you should pay off your credit card debt.

When to pay off “good debt” more slowly

Not all debt is bad. If you have high-interest debt like that held on credit cards, or a high-interest car loan of 10% or more, you should prioritize paying it off before you start investing.

But there are a few types of “good debt” that can be worth paying off more slowly.

Mortgage debt

If you have a mortgage interest rate of 6%-8%, that is generally considered “good debt,” because you’re using the debt to buy an asset (a home) that is likely to go up in value over time. And over many years, the S&P 500 index or other stock market investments might deliver a higher yield than you’re paying on your mortgage interest.

For example, if your mortgage rate is 6.5%, don’t feel as if you should hurry to pay down your mortgage faster. If you invest your extra cash in the S&P 500 index, even if it only earns 8% per year, you’re coming out ahead.

Auto loans

Borrowing to buy a car can be a form of “good debt,” because it gives you reliable transportation to get to work and live your life. Auto loan interest rates are based on the age of your vehicle, the length of the loan term, your personal credit score, and other factors. It’s true that some auto loans charge high interest rates, and you might want to pay off that debt faster if possible.

But some of the best auto loans have APRs of 6% or lower. If you have a low-interest auto loan, you don’t have to make extra loan payments to pay it off faster. Instead, you might be better off keeping your extra cash in a high-yield savings account that pays 4.00% APY or higher. Even if your cash doesn’t earn a higher APY than the APR on your auto loan, preserving your extra cash and keeping your options open can give you peace of mind and be a good financial strategy.

Bottom line

Warren Buffett is legendary for earning high returns in the stock market, but even he knows the value of paying off high-interest debt first. Before you start putting extra cash into stocks, make sure you pay off your credit cards.

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.

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[[{“value”:”Image source: Getty Images
If you’re bummed out by the fact that 5% CDs are basically a thing of the past, you’re not alone. It’s disappointing to see CD rates fall, even though falling rates also mean less expensive borrowing.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 good news, though, is that you can still snag a 12-month CD at over 4% — at least for the time being. The Federal Reserve is supposed to continue making interest rate cuts, so today’s rates may be short-lived.But for now, if you look around, you might have a pretty easy time finding a 12-month CD that pays upward of 4%. You can check out this list of the best CD rates for more options.That said, opening a 12-month CD may not be the best move this month. Here are some reasons why.1. You’re planning to buy a home or car soonSince the Fed is expected to keep cutting interest rates, it could end up being cheaper to sign a mortgage or finance a car in the new year. For this reason, you may want to hold off on tying up your money in a CD.You may end up needing that money for a down payment on a home or vehicle. And it would be a shame to have to put off a purchase like that because your money isn’t available to you without a penalty.2. A longer-term CD may be a better fit for your needsYou’ll generally find a better interest rate on a 12-month CD today than a longer-term CD, like 36, 48, or 60 months. Banks are anticipating further rate cuts from the Fed, so they’re being more cautious with their longer-term CD rates.But while a 12-month CD might give you a higher interest rate than a longer-term CD initially, all told, you might earn more money on a longer-term CD. If you’re saving for a goal that’s a few years out, you may want to consider a term beyond 12 months.Say you can get 4.5% on a 12-month CD, and only 3.75% on a 36-month CD. The 36-month CD might seem like a worse deal. But if CD rates fall a lot in the new year, by the time your 12-month CD renews, perhaps the best rate you can get is 2.5%. In that case, you could end up kicking yourself for not locking in 3.75% instead.3. A stock portfolio might pay you a lot moreThe idea of earning more than 4% from a CD might seem appealing. But you may be able to do a lot better by investing your money in stocks. Over the past 50 years, the S&P 500’s average annual return has been 10%. This accounts for years when stock values soared and years when they declined.Say you’re thinking of opening a $5,000 CD with a 12-month term. If you snag a 4.5% APY, you’re looking at $225 in interest. But beyond that point, who knows what you’ll earn on that money.On the other hand, if you put $5,000 into a stock portfolio that gives you a 10% yearly return, in 25 years, you’ll be sitting on about $54,000. If you like the idea of that, then instead of opening a 12-month CD this month, or any CD, open a brokerage account and start putting your money to work.Opening a 12-month CD this November isn’t necessarily a poor choice. But for these reasons, you may want to go an alternative route.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”:”

If you’re bummed out by the fact that 5% CDs are basically a thing of the past, you’re not alone. It’s disappointing to see CD rates fall, even though falling rates also mean less expensive borrowing.

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 good news, though, is that you can still snag a 12-month CD at over 4% — at least for the time being. The Federal Reserve is supposed to continue making interest rate cuts, so today’s rates may be short-lived.

But for now, if you look around, you might have a pretty easy time finding a 12-month CD that pays upward of 4%. You can check out this list of the best CD rates for more options.

That said, opening a 12-month CD may not be the best move this month. Here are some reasons why.

1. You’re planning to buy a home or car soon

Since the Fed is expected to keep cutting interest rates, it could end up being cheaper to sign a mortgage or finance a car in the new year. For this reason, you may want to hold off on tying up your money in a CD.

You may end up needing that money for a down payment on a home or vehicle. And it would be a shame to have to put off a purchase like that because your money isn’t available to you without a penalty.

2. A longer-term CD may be a better fit for your needs

You’ll generally find a better interest rate on a 12-month CD today than a longer-term CD, like 36, 48, or 60 months. Banks are anticipating further rate cuts from the Fed, so they’re being more cautious with their longer-term CD rates.

But while a 12-month CD might give you a higher interest rate than a longer-term CD initially, all told, you might earn more money on a longer-term CD. If you’re saving for a goal that’s a few years out, you may want to consider a term beyond 12 months.

Say you can get 4.5% on a 12-month CD, and only 3.75% on a 36-month CD. The 36-month CD might seem like a worse deal. But if CD rates fall a lot in the new year, by the time your 12-month CD renews, perhaps the best rate you can get is 2.5%. In that case, you could end up kicking yourself for not locking in 3.75% instead.

3. A stock portfolio might pay you a lot more

The idea of earning more than 4% from a CD might seem appealing. But you may be able to do a lot better by investing your money in stocks. Over the past 50 years, the S&P 500’s average annual return has been 10%. This accounts for years when stock values soared and years when they declined.

Say you’re thinking of opening a $5,000 CD with a 12-month term. If you snag a 4.5% APY, you’re looking at $225 in interest. But beyond that point, who knows what you’ll earn on that money.

On the other hand, if you put $5,000 into a stock portfolio that gives you a 10% yearly return, in 25 years, you’ll be sitting on about $54,000. If you like the idea of that, then instead of opening a 12-month CD this month, or any CD, open a brokerage account and start putting your money to work.

Opening a 12-month CD this November isn’t necessarily a poor choice. But for these reasons, you may want to go an alternative route.

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
Debit cards are one of the marvels of the modern banking industry. If you want to access the cash in your checking account, you don’t have to visit an ATM to take out cash or dig through your purse or pocket to find a pen so you can write a check. Instead, you can tap or swipe and pay for a purchase instantly — with no risk of going into credit card debt.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 there’s at least one situation where you should never use your debit card to pay. Let’s take a closer look at where debit cards fall short and see how a credit card is superior — in at least this one way.Don’t shop online with your debit cardIf you’re shopping online, opt for a credit card over a debit card. Here are a few reasons why.Debit cards are tied to your bank accountIf your debit card information is exposed in a data leak from an online retailer, the money in the bank account it’s tied to is at risk. Depending on when you discover you have a problem and report it to your bank, you could end up losing all the money in your account.Credit cards, on the other hand, give you access to borrowed money that you must pay back — not yours.Credit card fraud protections are strongerThe best credit cards offer $0 fraud liability. This means that if your information is stolen and someone makes a bunch of unauthorized charges on your card, you won’t be responsible for them.Want perks like this? Check out our favorite credit cards for consumers just like you.A credit card issuer might have your back in case of troubleSome credit card issuers have purchase protections. If an item you buy online (or anywhere) with the card is lost or stolen, or even gets broken, you can ask the issuer for help and possibly get your money refunded or the item repaired. Or if you order something and it never arrives, if the seller is unwilling to help, your card issuer can refund your money.Credit cards require careful managementThere are reasons you might want to use a debit card in your regular life, and trust me, I get it.For example, you might not want to expose yourself to the possibility of credit card debt, and this is valid. The average interest rate for credit cards that are subject to interest was 23.37% as of August 2024, according to the Federal Reserve Bank of St. Louis.That’ll serve to make a credit card balance incredibly expensive over time. If you’re not confident you can avoid overspending, don’t open yourself up to that temptation.Credit card benefits can outweigh their potential drawbacksThat said, credit cards offer perks that debit cards can’t touch, besides greater fraud protections and other benefits for online shopping. For starters, using them responsibly can boost your credit score and make it easier and cheaper for you to borrow money in the future.Focus on making on-time payments (ideally paying your balance off in full every month) and keeping your balances low relative to your credit limit (ideally under 30%) to build a strong credit score.If you opt for rewards credit cards (and hey, why wouldn’t you?), you can earn points, miles, or cash back on your everyday spending. One of my own favorite rewards cards pays 6% cash back on groceries, and thanks to my high spending in this area, I’ve earned about $400 in cash back per year over my last two years with the card. That’s real money!If you’d rather not track earning rates on multiple cards, you can opt for just one — just make sure it’s a solid flat-rate rewards card earning 1.5% or 2% on all your purchases.A debit card still has a place in your life — just don’t use it for online shopping. Opt for a good credit card instead.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.Discover Financial Services is an advertising partner of Motley Fool Money. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Debit cards are one of the marvels of the modern banking industry. If you want to access the cash in your checking account, you don’t have to visit an ATM to take out cash or dig through your purse or pocket to find a pen so you can write a check. Instead, you can tap or swipe and pay for a purchase instantly — with no risk of going into credit card debt.

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 there’s at least one situation where you should never use your debit card to pay. Let’s take a closer look at where debit cards fall short and see how a credit card is superior — in at least this one way.

Don’t shop online with your debit card

If you’re shopping online, opt for a credit card over a debit card. Here are a few reasons why.

Debit cards are tied to your bank account

If your debit card information is exposed in a data leak from an online retailer, the money in the bank account it’s tied to is at risk. Depending on when you discover you have a problem and report it to your bank, you could end up losing all the money in your account.

Credit cards, on the other hand, give you access to borrowed money that you must pay back — not yours.

Credit card fraud protections are stronger

The best credit cards offer $0 fraud liability. This means that if your information is stolen and someone makes a bunch of unauthorized charges on your card, you won’t be responsible for them.

Want perks like this? Check out our favorite credit cards for consumers just like you.

A credit card issuer might have your back in case of trouble

Some credit card issuers have purchase protections. If an item you buy online (or anywhere) with the card is lost or stolen, or even gets broken, you can ask the issuer for help and possibly get your money refunded or the item repaired. Or if you order something and it never arrives, if the seller is unwilling to help, your card issuer can refund your money.

Credit cards require careful management

There are reasons you might want to use a debit card in your regular life, and trust me, I get it.

For example, you might not want to expose yourself to the possibility of credit card debt, and this is valid. The average interest rate for credit cards that are subject to interest was 23.37% as of August 2024, according to the Federal Reserve Bank of St. Louis.

That’ll serve to make a credit card balance incredibly expensive over time. If you’re not confident you can avoid overspending, don’t open yourself up to that temptation.

Credit card benefits can outweigh their potential drawbacks

That said, credit cards offer perks that debit cards can’t touch, besides greater fraud protections and other benefits for online shopping. For starters, using them responsibly can boost your credit score and make it easier and cheaper for you to borrow money in the future.

Focus on making on-time payments (ideally paying your balance off in full every month) and keeping your balances low relative to your credit limit (ideally under 30%) to build a strong credit score.

If you opt for rewards credit cards (and hey, why wouldn’t you?), you can earn points, miles, or cash back on your everyday spending. One of my own favorite rewards cards pays 6% cash back on groceries, and thanks to my high spending in this area, I’ve earned about $400 in cash back per year over my last two years with the card. That’s real money!

If you’d rather not track earning rates on multiple cards, you can opt for just one — just make sure it’s a solid flat-rate rewards card earning 1.5% or 2% on all your purchases.

A debit card still has a place in your life — just don’t use it for online shopping. Opt for a good credit card instead.

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.Discover Financial Services is an advertising partner of Motley Fool Money. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

“}]] Read More