Money Management

[[{“value”:”Image source: Getty Images
I will probably never refinance my house again. Don’t get me wrong, when rates have dropped in the past, I certainly took advantage of that. And when I needed some quick capital and preferred not to look for a new lender and get a new loan, I tapped into my home equity ATM.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 like many things, COVID-19 put an end to all that. When interest rates dropped like a rock in early 2020, I jumped at the chance to lock in a crazy low mortgage interest rate — 3.125% (the average refinance rate in 2023 was 6.4%). But the hard truth is, absent another lockdown pandemic, I will never find a rate like that again, and so to my old money pal, Mr. Refinance, adios!If you’re interested in refinancing your mortgage, click here for our picks for the best refinance lenders.That said, we are all now in a new era, a more traditional era, of dropping mortgage rates, what with the Fed’s two recent rate cuts and all. And that raises the question: Will lower mortgage rates really make home buying easier?Let’s find out.Lower rates, lower paymentsLet’s start with the good news: In one sense, yes, lower rates seem to intuitively make home buying easier because lower mortgage rates mean lower monthly payments. If rates drop from 7% to 5%, that can take hundreds of dollars off your monthly mortgage bill. For many, this makes homeownership more affordable.A lower interest rate also means you would pay less in interest over the life of the loan. Using a $300,000 mortgage as an example, a drop from 7% to 5% could save you more than $130,000 over 30 years. This all adds up. So far it looks like yes, lower interest rates do help make homeownership more viable.But home prices may still work against youThat said, low mortgage rates alone will not always make home buying easier. Huh? Here’s the deal: In hot markets, even a sizable drop in rates might not help much if inventory is tight and home prices are climbing. Some housing markets still remain incredibly competitive, with homes going for well over asking prices.So, in that case, while lower interest rates can help your budget stretch further, they may not stretch far enough to get you into that dream house you have been eyeing for the past year.Lenders’ requirements can changeThere’s also the not-insignificant issue of qualifying for a loan. Even though rates are lower, it does not necessarily follow that loans will be easier to get. Banks and lenders have their own underwriting requirements, and they can tighten those requirements as economic conditions warrant.So, unless your credit rating, down payment amount, and debt-to-income ratio meet what the lender requires, those new, sweet, lower loan prices won’t make a whit of difference in your quest to buy a home.Ahead of trying to buy a home, boost your credit score by paying down existing debt if possible, and getting copies of your credit report (which you can access from each of the credit bureaus for free once weekly through annualcreditreport.com) to ensure no errors are working against you. A higher score is likely to result in a lower mortgage rate and lower monthly payments.Should I stay or should I go?Let’s look at the numbers. If you took out a $300,000 mortgage at 7%, your monthly payment would be about $1,996. With a 5% rate, that same loan would cost you about $1,610 per month, saving you nearly $400 per month and over $130,000 in interest over the life of the loan. Those are real savings, but again, if home prices are rising in your desired neighborhood or lenders are picky, that rate drop might not be as impactful as you would have liked.On the other hand, let’s say you look in a neighborhood that is reasonably priced, you find the right lender, and you have a large enough down payment amount. In this case, yes, those lower interest rates are going to help you either get into the home of your dreams, or get into a home that’s still decent, not pay as much, and pocket the difference.In either case, a hearty congratulations would be in order!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 will probably never refinance my house again. Don’t get me wrong, when rates have dropped in the past, I certainly took advantage of that. And when I needed some quick capital and preferred not to look for a new lender and get a new loan, I tapped into my home equity ATM.

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 like many things, COVID-19 put an end to all that. When interest rates dropped like a rock in early 2020, I jumped at the chance to lock in a crazy low mortgage interest rate — 3.125% (the average refinance rate in 2023 was 6.4%). But the hard truth is, absent another lockdown pandemic, I will never find a rate like that again, and so to my old money pal, Mr. Refinance, adios!

If you’re interested in refinancing your mortgage, click here for our picks for the best refinance lenders.

That said, we are all now in a new era, a more traditional era, of dropping mortgage rates, what with the Fed’s two recent rate cuts and all. And that raises the question: Will lower mortgage rates really make home buying easier?

Let’s find out.

Lower rates, lower payments

Let’s start with the good news: In one sense, yes, lower rates seem to intuitively make home buying easier because lower mortgage rates mean lower monthly payments. If rates drop from 7% to 5%, that can take hundreds of dollars off your monthly mortgage bill. For many, this makes homeownership more affordable.

A lower interest rate also means you would pay less in interest over the life of the loan. Using a $300,000 mortgage as an example, a drop from 7% to 5% could save you more than $130,000 over 30 years. This all adds up. So far it looks like yes, lower interest rates do help make homeownership more viable.

But home prices may still work against you

That said, low mortgage rates alone will not always make home buying easier. Huh? Here’s the deal: In hot markets, even a sizable drop in rates might not help much if inventory is tight and home prices are climbing. Some housing markets still remain incredibly competitive, with homes going for well over asking prices.

So, in that case, while lower interest rates can help your budget stretch further, they may not stretch far enough to get you into that dream house you have been eyeing for the past year.

Lenders’ requirements can change

There’s also the not-insignificant issue of qualifying for a loan. Even though rates are lower, it does not necessarily follow that loans will be easier to get. Banks and lenders have their own underwriting requirements, and they can tighten those requirements as economic conditions warrant.

So, unless your credit rating, down payment amount, and debt-to-income ratio meet what the lender requires, those new, sweet, lower loan prices won’t make a whit of difference in your quest to buy a home.

Ahead of trying to buy a home, boost your credit score by paying down existing debt if possible, and getting copies of your credit report (which you can access from each of the credit bureaus for free once weekly through annualcreditreport.com) to ensure no errors are working against you. A higher score is likely to result in a lower mortgage rate and lower monthly payments.

Should I stay or should I go?

Let’s look at the numbers. If you took out a $300,000 mortgage at 7%, your monthly payment would be about $1,996. With a 5% rate, that same loan would cost you about $1,610 per month, saving you nearly $400 per month and over $130,000 in interest over the life of the loan. Those are real savings, but again, if home prices are rising in your desired neighborhood or lenders are picky, that rate drop might not be as impactful as you would have liked.

On the other hand, let’s say you look in a neighborhood that is reasonably priced, you find the right lender, and you have a large enough down payment amount. In this case, yes, those lower interest rates are going to help you either get into the home of your dreams, or get into a home that’s still decent, not pay as much, and pocket the difference.

In either case, a hearty congratulations would be in order!

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
As the busy holiday season approaches, many people are doing what they can to stretch their dollars further. If you’re stressed about the cost of everyday goods, you’re not alone. Thankfully, some retailers are taking steps to make shopping for everyday essentials more affordable.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. Target is one such retailer. The company recently announced it would reduce the price of 2,000-plus items to help shoppers keep more money in their checking accounts this holiday season.If you’re trying to stretch your budget, consider taking advantage of these price reductions. Here’s what you need to know. Shopping at Target may be more affordable this holiday season In an Oct. 22 press release, Target announced its plans to reduce the price of many of its goods. Over 2,000 items will now be more affordable to shoppers. These price reductions apply to a variety of products like food, drinks, beauty and personal care products, over-the-counter medications, toys, gifts, and holiday decor. Lower prices can help shoppers feel less financial stress during an expensive time of year. Here are a few products that are now cheaper at Target: ProductPrice Before ReductionReduced PriceLEGO Technic 2022 Ford GT Car Model Set$119.99$95.99Crisco Vegetable Oil (40 fluid ounces)$5.29$4.79Coffee Mate Natural Bliss Sweet Cream Creamer (32 fluid ounces)$5.29$4.99up&up Daytime Cold and Flu Relief Softgels (24-count)$6.99$5.99Purina Tidy Cats Litter (25 pounds)$8.59$7.79Data source: Target.comThis is the second time this year that Target has lowered prices for thousands of everyday essentials. By the end of the holiday season, the retailer will have reduced prices for more than 10,000 essentials. You may already be saving money thanks to these changes. As a consumer, you have some choice in where you shop. It may be beneficial to compare prices for the everyday essentials you typically buy to see if you can save money by shopping at Target instead of other retailers. Every dollar you save adds up over time. Want to maximize your savings? Use a cash back credit card to pay for your Target haul. Click here to explore our list of the top cash back credit cards that offer big rewards.Save even more by joining the Target Circle Rewards programPrice reductions aren’t the only way to save money at Target. Don’t neglect the retailer’s loyalty program, Target Circle Rewards. It’s free to become a member and it’s easy to benefit from the program. You can save more with members-only deals and coupons. You can review current offers in the Target mobile app. There are also bonus rewards opportunities. When you activate offers and make eligible purchases, you can earn gift cards, additional discounts, or cash back rewards. Loyalty programs like this make for an easy way for shoppers to save more money at their favorite retailers. If you’re a Target loyalist, you should consider giving this program a try. Whether you shop at Target or other popular retailers this holiday season, consider using a top-rated credit card that earns rewards. You can earn cash back, points, or miles, when you swipe your card at checkout. Check out our list of the best rewards credit cards to discover how easy it is to get rewarded. 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. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

As the busy holiday season approaches, many people are doing what they can to stretch their dollars further. If you’re stressed about the cost of everyday goods, you’re not alone. Thankfully, some retailers are taking steps to make shopping for everyday essentials more affordable.

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.

Target is one such retailer. The company recently announced it would reduce the price of 2,000-plus items to help shoppers keep more money in their checking accounts this holiday season.

If you’re trying to stretch your budget, consider taking advantage of these price reductions. Here’s what you need to know.

Shopping at Target may be more affordable this holiday season

In an Oct. 22 press release, Target announced its plans to reduce the price of many of its goods. Over 2,000 items will now be more affordable to shoppers.

These price reductions apply to a variety of products like food, drinks, beauty and personal care products, over-the-counter medications, toys, gifts, and holiday decor. Lower prices can help shoppers feel less financial stress during an expensive time of year.

Here are a few products that are now cheaper at Target:

This is the second time this year that Target has lowered prices for thousands of everyday essentials. By the end of the holiday season, the retailer will have reduced prices for more than 10,000 essentials. You may already be saving money thanks to these changes.

As a consumer, you have some choice in where you shop. It may be beneficial to compare prices for the everyday essentials you typically buy to see if you can save money by shopping at Target instead of other retailers. Every dollar you save adds up over time.

Want to maximize your savings? Use a cash back credit card to pay for your Target haul. Click here to explore our list of the top cash back credit cards that offer big rewards.

Save even more by joining the Target Circle Rewards program

Price reductions aren’t the only way to save money at Target. Don’t neglect the retailer’s loyalty program, Target Circle Rewards. It’s free to become a member and it’s easy to benefit from the program.

You can save more with members-only deals and coupons. You can review current offers in the Target mobile app. There are also bonus rewards opportunities. When you activate offers and make eligible purchases, you can earn gift cards, additional discounts, or cash back rewards.

Loyalty programs like this make for an easy way for shoppers to save more money at their favorite retailers. If you’re a Target loyalist, you should consider giving this program a try.

Whether you shop at Target or other popular retailers this holiday season, consider using a top-rated credit card that earns rewards. You can earn cash back, points, or miles, when you swipe your card at checkout. Check out our list of the best rewards credit cards to discover how easy it is to get rewarded.

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. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
The S&P 500 has made significant gains lately, skyrocketing 92% over the past five years. But if you had asked nearly anyone five years ago how the stock market would perform during the throes of a global pandemic, they most likely would have told you it would be a terrible time to invest.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. Sure, there was some volatility over the past five years, but the S&P 500’s gains have been impressive nonetheless. Interestingly, if you had listened to Chicken Little during this time and assumed the sky was falling, you would have tapped the sell button in your investing app and completely dismantled any potential returns you could have earned.The lesson? No matter how wealthy you are, timing the market is rarely (basically never) the right answer.Why you shouldn’t try to time the marketYou’ve probably heard many people discussing what you should do with your money if a certain candidate wins office or where to invest your money if a specific geopolitical event occurs. But generally, it’s best for your portfolio to block out all the noise and not try to time the market.Why? Because you don’t have a crystal ball that shows when the bad days will turn into good days. Consider this: J.P. Morgan data shows that seven of the best 10 days in the S&P 500 occurred within two weeks of the 10 worst days.Related: Choosing an online stock broker doesn’t have to be difficult. Click here to see our list of top-rated brokers.To drive this point home, the investment bank gives some hard numbers for how much you’ll lose out on by trying to time the market and getting it wrong. Here’s how timing the market would have worked out over the 20 years (ending in 2023):Initial AmountLength of TimeBest Market Days MissedRate of ReturnEnding Total$10,00020 years09.7%$63,637$10,00020 years105.5%$29,154$10,00020 years202.8%$17,494Data source: J.P. Morgan.This is a sobering table for anyone trying to time the market, and it shows that if you pulled your money out of the S&P 500 and missed just 10 of the best-performing days, you would have cut your total ending amount by more than half!And if you were extra cautious and took your money out for longer, causing you to miss 20 of the best-performing days for the S&P 500 over that period, you’d take home 72% less than you would have had you kept your money invested.You’ve been warned.Consistently invest your money insteadIf the wrong answer is timing the market, then what’s the right answer for how to invest? Keep your money invested and consistently add to it.The S&P 500 has a historical average annual rate of return of 10.2%. Of course, you won’t earn that much each year and this percentage doesn’t account for inflation. But it’s still a good measurement for showing investment potential.For compounding interest to do its magic, your money needs to be sitting in your portfolio. Here’s what your hypothetical returns could look like over four decades of consistently investing:Initial AmountMonthly ContributionTime InvestedAnnual Rate of ReturnEnding Total$10,000$20040 years10.2%$1.6 millionData source: Author’s calculations. Again, there’s no guarantee you’ll earn 10.2%, but you can see just how much money your initial $10,000 (plus $200 of contributions monthly) can turn into during that time. Even if we take a more conservative approach with just $150 invested monthly and average annual returns of just 6.5% to account for inflation, we still get impressive results:Initial AmountMonthly ContributionTime InvestedAnnual Rate of ReturnEnding Total$10,000$15040 years6.5%$440,298Data source: Author’s calculations.Need help choosing and opening an IRA? We’ve compiled a list of the best IRA accounts, many of which can be set up in just minutes.That’s still a very impressive final amount, and it’s even better when you consider that the S&P 500 is doing all the work for you — no timing the market required.One caveat to all this is that as you near retirement, it’s a good idea to adjust your portfolio to own fewer stocks than when you were younger. Doing so helps reduce your exposure to more volatile investments, and instead focus on safer investments like bonds. But for the most part, putting your money into an S&P 500 index fund and adding to it each month is one of the best ways to create wealth over the long term.And the best part is that you don’t have to do any hand-wringing over timing the market or worrying about what’s happening in the economy to benefit.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”:”

The S&P 500 has made significant gains lately, skyrocketing 92% over the past five years. But if you had asked nearly anyone five years ago how the stock market would perform during the throes of a global pandemic, they most likely would have told you it would be a terrible time to invest.

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.

Sure, there was some volatility over the past five years, but the S&P 500’s gains have been impressive nonetheless. Interestingly, if you had listened to Chicken Little during this time and assumed the sky was falling, you would have tapped the sell button in your investing app and completely dismantled any potential returns you could have earned.

The lesson? No matter how wealthy you are, timing the market is rarely (basically never) the right answer.

Why you shouldn’t try to time the market

You’ve probably heard many people discussing what you should do with your money if a certain candidate wins office or where to invest your money if a specific geopolitical event occurs. But generally, it’s best for your portfolio to block out all the noise and not try to time the market.

Why? Because you don’t have a crystal ball that shows when the bad days will turn into good days. Consider this: J.P. Morgan data shows that seven of the best 10 days in the S&P 500 occurred within two weeks of the 10 worst days.

Related: Choosing an online stock broker doesn’t have to be difficult. Click here to see our list of top-rated brokers.

To drive this point home, the investment bank gives some hard numbers for how much you’ll lose out on by trying to time the market and getting it wrong. Here’s how timing the market would have worked out over the 20 years (ending in 2023):

This is a sobering table for anyone trying to time the market, and it shows that if you pulled your money out of the S&P 500 and missed just 10 of the best-performing days, you would have cut your total ending amount by more than half!

And if you were extra cautious and took your money out for longer, causing you to miss 20 of the best-performing days for the S&P 500 over that period, you’d take home 72% less than you would have had you kept your money invested.

You’ve been warned.

Consistently invest your money instead

If the wrong answer is timing the market, then what’s the right answer for how to invest? Keep your money invested and consistently add to it.

The S&P 500 has a historical average annual rate of return of 10.2%. Of course, you won’t earn that much each year and this percentage doesn’t account for inflation. But it’s still a good measurement for showing investment potential.

For compounding interest to do its magic, your money needs to be sitting in your portfolio. Here’s what your hypothetical returns could look like over four decades of consistently investing:

Again, there’s no guarantee you’ll earn 10.2%, but you can see just how much money your initial $10,000 (plus $200 of contributions monthly) can turn into during that time. Even if we take a more conservative approach with just $150 invested monthly and average annual returns of just 6.5% to account for inflation, we still get impressive results:

Need help choosing and opening an IRA? We’ve compiled a list of the best IRA accounts, many of which can be set up in just minutes.

That’s still a very impressive final amount, and it’s even better when you consider that the S&P 500 is doing all the work for you — no timing the market required.

One caveat to all this is that as you near retirement, it’s a good idea to adjust your portfolio to own fewer stocks than when you were younger. Doing so helps reduce your exposure to more volatile investments, and instead focus on safer investments like bonds. But for the most part, putting your money into an S&P 500 index fund and adding to it each month is one of the best ways to create wealth over the long term.

And the best part is that you don’t have to do any hand-wringing over timing the market or worrying about what’s happening in the economy to benefit.

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
In your 20s, it can feel as if you have all the time in the world to figure out your finances, but the truth is, the habits you form now will shape your financial future for years to come. Establishing a strong foundation early on can set you up for long-term money success, helping you achieve milestones like homeownership, debt freedom, and maybe even early retirement.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 is that developing a solid financial footing is not about making huge sacrifices; small, consistent actions now can make a big difference down the road.Here are three key habits you can adopt to secure your financial future.1. Pay yourself firstOne of the best books you can ever read regarding money, and one that can really make a difference if you read it in your 20s, is a timeless classic called The Richest Man in Babylon by George Clason. In the book, two friends Bansir and Kobbi, struggle financially, while their childhood friend Arkad has grown wealthy.The two men seek out Arkad to ask for his wisdom and secrets. Throughout the book, Arkad explains some fundamental wealth-growing principles, such as living below your means, investing wisely, and especially, “paying yourself first.” This means that before you spend money on anything else — be it bills, rent, or video games — you need to allocate 10% of your income to savings and investments.Pay yourself 10% before you ever pay anyone else anything.This habit not only creates discipline, it shifts your mindset from spending to saving and investing, thereby allowing you to steadily build financial security over time. The earlier you adopt this practice, ideally in your 20s, the more time your money has to grow through compound interest and smart investments.For example, if you save and invest $100 a month starting at age 25, with a 7% annual return, you could have roughly $264,000 by age 65. Wow. By beginning early, you give your money decades to grow.2. Create a realistic budgetBudgeting may not sound exciting, and frankly, it isn’t. But that does not mean that it’s not important. It is. A good budget helps you live within your means and helps you prioritize what financial goals and commitments are most important to you. It is your plan for how you think you should best spend your money. That’s it.See, that wasn’t so difficult, was it?There are all sorts of budgeting apps you can use to create yours. Whichever one you choose, just make sure your budget prioritizes necessities like housing, transportation, and groceries, while also allocating money toward entertainment and fun, as well as your long-term goals, such as an emergency fund and investments.The key is to create a budget that you can stick to, so it feels less like a restriction and more like a roadmap to achieving financial stability.3. Build and maintain good creditEspecially as you get older, you will see that good credit opens doors to better financial opportunities, including lower interest rates on car and home loans, as well as credit cards.By using your cards, with a plan to pay them off every month, your credit rating will go up quickly (note: the average credit rating for someone in their 20s is 680). Avoid maxing out your credit limit, and always make payments on time.Ready to find a great credit card to help you build credit and earn rewards? Check out our list of the best credit cards.If you develop these three easy and simple habits — paying yourself first, living within your means, and building up your credit rating — you will be creating a solid financial foundation you’ll be really grateful for in 10, 20, or 30 years.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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

In your 20s, it can feel as if you have all the time in the world to figure out your finances, but the truth is, the habits you form now will shape your financial future for years to come. Establishing a strong foundation early on can set you up for long-term money success, helping you achieve milestones like homeownership, debt freedom, and maybe even early retirement.

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 is that developing a solid financial footing is not about making huge sacrifices; small, consistent actions now can make a big difference down the road.

Here are three key habits you can adopt to secure your financial future.

1. Pay yourself first

One of the best books you can ever read regarding money, and one that can really make a difference if you read it in your 20s, is a timeless classic called The Richest Man in Babylon by George Clason. In the book, two friends Bansir and Kobbi, struggle financially, while their childhood friend Arkad has grown wealthy.

The two men seek out Arkad to ask for his wisdom and secrets. Throughout the book, Arkad explains some fundamental wealth-growing principles, such as living below your means, investing wisely, and especially, “paying yourself first.” This means that before you spend money on anything else — be it bills, rent, or video games — you need to allocate 10% of your income to savings and investments.

Pay yourself 10% before you ever pay anyone else anything.

This habit not only creates discipline, it shifts your mindset from spending to saving and investing, thereby allowing you to steadily build financial security over time. The earlier you adopt this practice, ideally in your 20s, the more time your money has to grow through compound interest and smart investments.

For example, if you save and invest $100 a month starting at age 25, with a 7% annual return, you could have roughly $264,000 by age 65. Wow. By beginning early, you give your money decades to grow.

2. Create a realistic budget

Budgeting may not sound exciting, and frankly, it isn’t. But that does not mean that it’s not important. It is. A good budget helps you live within your means and helps you prioritize what financial goals and commitments are most important to you. It is your plan for how you think you should best spend your money. That’s it.

See, that wasn’t so difficult, was it?

There are all sorts of budgeting apps you can use to create yours. Whichever one you choose, just make sure your budget prioritizes necessities like housing, transportation, and groceries, while also allocating money toward entertainment and fun, as well as your long-term goals, such as an emergency fund and investments.

The key is to create a budget that you can stick to, so it feels less like a restriction and more like a roadmap to achieving financial stability.

3. Build and maintain good credit

Especially as you get older, you will see that good credit opens doors to better financial opportunities, including lower interest rates on car and home loans, as well as credit cards.

By using your cards, with a plan to pay them off every month, your credit rating will go up quickly (note: the average credit rating for someone in their 20s is 680). Avoid maxing out your credit limit, and always make payments on time.

Ready to find a great credit card to help you build credit and earn rewards? Check out our list of the best credit cards.

If you develop these three easy and simple habits — paying yourself first, living within your means, and building up your credit rating — you will be creating a solid financial foundation you’ll be really grateful for in 10, 20, or 30 years.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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[[{“value”:”Image source: The Motley Fool/Upsplash
If you have some money that you need to put somewhere while you save it for short- or medium-term goals, you have two primary choices: a high-yield savings account or a certificate of deposit (CD).Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Many people default to savings accounts, probably because they just seem simpler and more common. This could be a mistake, though. CDs actually have three unexpected advantages over savings accounts that are worth considering before you decide where your money will go.1. CDs often pay higher ratesRight now, CD and savings account rates are pretty comparable, and there have been times recently when high-yield savings accounts even provided higher yields than CDs.Traditionally, though, CDs do have a little bit of an edge on the interest they pay. If you can squeak out some extra money on the money you’re saving for your goals, that only helps you out — and there’s no reason not to try to maximize your yields.Ready to check out CDs? Click here for the best CD rates available right now.2. CDs lock in your rateThere’s another huge benefit to CDs, especially right now. The rate you get on the CD is fixed for the duration of the CD term. But the rate on a high-yield savings account is variable.This means that while some great savings accounts are paying really competitive yields right now, that may not last for long — especially as the Federal Reserve (the U.S. Central Bank) is widely expected to lower its benchmark interest rate again before the end of the year and then drop it again several more times throughout 2025.If you put your money into a CD now, you can guarantee you’ll get to earn today’s rate for at least a few months or a few years, depending on the duration of the CD you pick. Plus, in general, any time you buy a CD, you know upfront what you’re getting. This allows you to estimate savings goals more accurately than when you have the uncertainty that comes with a variable rate.3. CDs encourage you to stay investedThere’s one last unexpected advantage, and this one may surprise you. One of the best things about CDs is that they essentially force you to lock up your money.This is often painted as a downside, since CDs do this by penalizing you if you take out money before the CD term ends. But that’s a problem only if you put money into CDs that you shouldn’t.If you may need to access the funds sooner than the maturity date of the CD, then that money should definitely be in a savings account. You can check out our picks of the best high-yield savings accounts to find one. But if you know you’ll be leaving your money alone because you’re saving it for a future goal, then these penalties are actually a positive thing.When you’re told you can’t access your money out without incurring a fee, you’re less likely to take it out. You won’t be tempted to use it on something else besides saving for the goal you’ve earmarked the funds for. That’s potentially a big benefit.For all of these reasons, you should seriously think about putting money into a high-yield CD rather than a savings account if you’re saving for a goal that’s at least a few months away. These benefits could really pay off big time for you.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 have some money that you need to put somewhere while you save it for short- or medium-term goals, you have two primary choices: a high-yield savings account or a certificate of deposit (CD).

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Many people default to savings accounts, probably because they just seem simpler and more common. This could be a mistake, though. CDs actually have three unexpected advantages over savings accounts that are worth considering before you decide where your money will go.

1. CDs often pay higher rates

Right now, CD and savings account rates are pretty comparable, and there have been times recently when high-yield savings accounts even provided higher yields than CDs.

Traditionally, though, CDs do have a little bit of an edge on the interest they pay. If you can squeak out some extra money on the money you’re saving for your goals, that only helps you out — and there’s no reason not to try to maximize your yields.

Ready to check out CDs? Click here for the best CD rates available right now.

2. CDs lock in your rate

There’s another huge benefit to CDs, especially right now. The rate you get on the CD is fixed for the duration of the CD term. But the rate on a high-yield savings account is variable.

This means that while some great savings accounts are paying really competitive yields right now, that may not last for long — especially as the Federal Reserve (the U.S. Central Bank) is widely expected to lower its benchmark interest rate again before the end of the year and then drop it again several more times throughout 2025.

If you put your money into a CD now, you can guarantee you’ll get to earn today’s rate for at least a few months or a few years, depending on the duration of the CD you pick. Plus, in general, any time you buy a CD, you know upfront what you’re getting. This allows you to estimate savings goals more accurately than when you have the uncertainty that comes with a variable rate.

3. CDs encourage you to stay invested

There’s one last unexpected advantage, and this one may surprise you. One of the best things about CDs is that they essentially force you to lock up your money.

This is often painted as a downside, since CDs do this by penalizing you if you take out money before the CD term ends. But that’s a problem only if you put money into CDs that you shouldn’t.

If you may need to access the funds sooner than the maturity date of the CD, then that money should definitely be in a savings account. You can check out our picks of the best high-yield savings accounts to find one. But if you know you’ll be leaving your money alone because you’re saving it for a future goal, then these penalties are actually a positive thing.

When you’re told you can’t access your money out without incurring a fee, you’re less likely to take it out. You won’t be tempted to use it on something else besides saving for the goal you’ve earmarked the funds for. That’s potentially a big benefit.

For all of these reasons, you should seriously think about putting money into a high-yield CD rather than a savings account if you’re saving for a goal that’s at least a few months away. These benefits could really pay off big time for you.

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/Unsplash
There are plenty of nights when I can’t fall asleep because too many thoughts are buzzing through my brain. It’s usually the mistakes I make that circle round and round in my head long after they’re over.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 the other day, I gave myself a little break and instead tried to think about some of my successes. And I realized that I have a lot to feel good about. Here are a few examples of financial steps I’ve taken that I’m proud of.1. Keeping a high credit scoreI charge just about every expense I can on a credit card rather than paying in cash. It feels great to earn rewards on my purchases and use those points to fund a vacation or some other fun treat. But I’m always careful in how I use my cards, never charging too much and always paying off the balance when the bill comes due.There are five factors that go into calculating your credit score. The two biggest ones — payment history and credit utilization — make up 65% of that calculation. Because I always pay my bills on time and don’t use a large portion of my available credit, I’ve built up a solid score.One of the major benefits of having a high credit score is qualifying for loans at the best rates available. This has led to me getting low mortgage rates and excellent terms on auto loans, saving me thousands of dollars in interest over the years.As an example, let’s say you buy a house for $350,000 with a 20% down payment of $70,000. If your mortgage rate is 7%, you’ll pay over $390,000 in interest over the 30-year loan. With a 6% rate, you’ll pay a little over $324,000 in interest — a savings of $66,000 over the life of the loan.2. Building savings so I don’t have to borrow for emergenciesI had a lovely little piggy bank when I was a kid; it was ceramic, and I got to paint it myself. I loved dropping coins and bills in it, knowing the total was growing and growing. I don’t remember what I bought when I finally cracked it open, but thinking about it makes me realize I’ve always been inclined to save.This has been a huge benefit to me now that I’ve graduated from a piggy bank to a bank account. By transferring money from my checking account to my savings every month, I’ve built up a comfortable safety net that I can rely on if things go awry.I can dip into this emergency fund whenever surprise expenses come up, whether it’s a furnace repair or a cracked windshield on my car. I know that I won’t have to take out a loan to pay off these expenses or charge them to a credit card that I can’t pay off right away.If you’re looking to fund your own piggy bank, you’ll benefit from choosing an account with a generous rate. Take a look at the best high-yield savings accounts and open one that works best for you.3. Never carrying credit card debtWhen I got my first credit card in college, I was nervous about using it. As a result, I never carried a balance on my card — and I still haven’t in the years since. While carrying a small balance on a card from month to month doesn’t automatically spell financial ruin, it can be a slippery slope.According to the Federal Reserve Bank of New York, American credit card debt reached $1.14 trillion in the second quarter of 2024. With the average credit card interest rate in the U.S. currently sitting at 24.72%, that’s a staggering amount of money to owe. By always paying my credit card bill on time and in full, I’m able to keep more money in my pocket, rather than paying interest to a card issuer.Good financial habits pay offI certainly don’t have a perfect financial track record, and I’ve made my share of mistakes that have cost me money. But I’m proud that there are some wins in my past as well. If you’re looking to get your finances in shape, know that the work you’re putting in can pay off for years to come, putting future-you in a better position to get some restful sleep.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”:”

There are plenty of nights when I can’t fall asleep because too many thoughts are buzzing through my brain. It’s usually the mistakes I make that circle round and round in my head long after they’re over.

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 the other day, I gave myself a little break and instead tried to think about some of my successes. And I realized that I have a lot to feel good about. Here are a few examples of financial steps I’ve taken that I’m proud of.

1. Keeping a high credit score

I charge just about every expense I can on a credit card rather than paying in cash. It feels great to earn rewards on my purchases and use those points to fund a vacation or some other fun treat. But I’m always careful in how I use my cards, never charging too much and always paying off the balance when the bill comes due.

There are five factors that go into calculating your credit score. The two biggest ones — payment history and credit utilization — make up 65% of that calculation. Because I always pay my bills on time and don’t use a large portion of my available credit, I’ve built up a solid score.

One of the major benefits of having a high credit score is qualifying for loans at the best rates available. This has led to me getting low mortgage rates and excellent terms on auto loans, saving me thousands of dollars in interest over the years.

As an example, let’s say you buy a house for $350,000 with a 20% down payment of $70,000. If your mortgage rate is 7%, you’ll pay over $390,000 in interest over the 30-year loan. With a 6% rate, you’ll pay a little over $324,000 in interest — a savings of $66,000 over the life of the loan.

2. Building savings so I don’t have to borrow for emergencies

I had a lovely little piggy bank when I was a kid; it was ceramic, and I got to paint it myself. I loved dropping coins and bills in it, knowing the total was growing and growing. I don’t remember what I bought when I finally cracked it open, but thinking about it makes me realize I’ve always been inclined to save.

This has been a huge benefit to me now that I’ve graduated from a piggy bank to a bank account. By transferring money from my checking account to my savings every month, I’ve built up a comfortable safety net that I can rely on if things go awry.

I can dip into this emergency fund whenever surprise expenses come up, whether it’s a furnace repair or a cracked windshield on my car. I know that I won’t have to take out a loan to pay off these expenses or charge them to a credit card that I can’t pay off right away.

If you’re looking to fund your own piggy bank, you’ll benefit from choosing an account with a generous rate. Take a look at the best high-yield savings accounts and open one that works best for you.

3. Never carrying credit card debt

When I got my first credit card in college, I was nervous about using it. As a result, I never carried a balance on my card — and I still haven’t in the years since. While carrying a small balance on a card from month to month doesn’t automatically spell financial ruin, it can be a slippery slope.

According to the Federal Reserve Bank of New York, American credit card debt reached $1.14 trillion in the second quarter of 2024. With the average credit card interest rate in the U.S. currently sitting at 24.72%, that’s a staggering amount of money to owe. By always paying my credit card bill on time and in full, I’m able to keep more money in my pocket, rather than paying interest to a card issuer.

Good financial habits pay off

I certainly don’t have a perfect financial track record, and I’ve made my share of mistakes that have cost me money. But I’m proud that there are some wins in my past as well. If you’re looking to get your finances in shape, know that the work you’re putting in can pay off for years to come, putting future-you in a better position to get some restful sleep.

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