Money Management

[[{“value”:”Image source: The Motley Fool/Upsplash
Improving your finances takes a lot of time and dedication. But that doesn’t mean it has to be difficult. Small steps can have a big impact on your financial situation and set yourself up to succeed.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Here are five simple changes you can make right now.1. Switch to a high-yield savings accountTraditional savings accounts have their place, but if you’re looking to maximize your savings, they aren’t necessarily the best tool. A high-yield savings account (HYSA), on the other hand, can offer much more lucrative interest rates than traditional savings accounts. For instance, while the average national savings account offers a rate of 0.45%, the best HYSAs are currently offering rates of 4% and up.Interested in opening a HYSA to earn more money? Check out our list of the best HYSAs on the market.2. Automate your savingsWhen you’re busy dealing with more pressing financial issues like paying off debt, savings accounts can easily fall to the wayside. That’s especially true if you don’t have an automated savings transfer set up. But this can take just a minute or two to accomplish via your bank’s website.Even if you can only afford to save $100 or less per month, setting up an automatic transfer means you have to plan around that contribution. And over time, that can add up to more than you were expecting, particularly when unplanned expenses pop up.3. Open a Roth IRARetirement savings is another area that many people deprioritize. After all, if you have a 401(k), you likely have automatic contributions set up through your employer, making it easy to forget about other accounts that could help you save for retirement. Click here for our picks for Roth IRAs, and check out a simple way to address your taxes in retirement. Roth IRAs let you withdraw funds tax-free during that time.Plus, the contribution limits for an IRA are separate from a 401(k), letting you boost your overall savings. And you may be able to automate contributions here, too.4. Pay your credit card weeklyWhether you’ve struggled with credit card debt in the past, you’re relatively new to the world of credit cards, or you’re a credit card expert, paying your credit card bills weekly can be a valuable practice to start. This way, you can pay off your balance before your creditor charges interest, saving you money. It can also help you ensure you’re only charging items you know you can afford, especially if you’re prone to impulse spending.5. Get a budgeting appBudgets are one of those financial tools that are great on paper, but are cumbersome in reality. That’s why the best budgeting apps, which take the effort out of the equation, are great options.They can help you recognize trends in your spending patterns without having to comb through your credit card statements. And because you get a top-down view of your accounts, you can more easily plan for the future, whether that’s getting out of debt or saving for a house.These five moves may feel small in the moment, but over time, they can lead to big changes in your overall finances. You don’t have to tackle them all at once. But given that they can take just minutes to accomplish, they’re well worth the effort if you’re willing to take the time.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”:”

Improving your finances takes a lot of time and dedication. But that doesn’t mean it has to be difficult. Small steps can have a big impact on your financial situation and set yourself up to succeed.

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

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

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

Here are five simple changes you can make right now.

1. Switch to a high-yield savings account

Traditional savings accounts have their place, but if you’re looking to maximize your savings, they aren’t necessarily the best tool. A high-yield savings account (HYSA), on the other hand, can offer much more lucrative interest rates than traditional savings accounts. For instance, while the average national savings account offers a rate of 0.45%, the best HYSAs are currently offering rates of 4% and up.

Interested in opening a HYSA to earn more money? Check out our list of the best HYSAs on the market.

2. Automate your savings

When you’re busy dealing with more pressing financial issues like paying off debt, savings accounts can easily fall to the wayside. That’s especially true if you don’t have an automated savings transfer set up. But this can take just a minute or two to accomplish via your bank’s website.

Even if you can only afford to save $100 or less per month, setting up an automatic transfer means you have to plan around that contribution. And over time, that can add up to more than you were expecting, particularly when unplanned expenses pop up.

3. Open a Roth IRA

Retirement savings is another area that many people deprioritize. After all, if you have a 401(k), you likely have automatic contributions set up through your employer, making it easy to forget about other accounts that could help you save for retirement.

Click here for our picks for Roth IRAs, and check out a simple way to address your taxes in retirement. Roth IRAs let you withdraw funds tax-free during that time.

Plus, the contribution limits for an IRA are separate from a 401(k), letting you boost your overall savings. And you may be able to automate contributions here, too.

4. Pay your credit card weekly

Whether you’ve struggled with credit card debt in the past, you’re relatively new to the world of credit cards, or you’re a credit card expert, paying your credit card bills weekly can be a valuable practice to start.

This way, you can pay off your balance before your creditor charges interest, saving you money. It can also help you ensure you’re only charging items you know you can afford, especially if you’re prone to impulse spending.

5. Get a budgeting app

Budgets are one of those financial tools that are great on paper, but are cumbersome in reality. That’s why the best budgeting apps, which take the effort out of the equation, are great options.

They can help you recognize trends in your spending patterns without having to comb through your credit card statements. And because you get a top-down view of your accounts, you can more easily plan for the future, whether that’s getting out of debt or saving for a house.

These five moves may feel small in the moment, but over time, they can lead to big changes in your overall finances. You don’t have to tackle them all at once. But given that they can take just minutes to accomplish, they’re well worth the effort if you’re willing to take the time.

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
Let’s say you spent $130 to become a Costco Executive member. You use your membership card to shop in-store and occasionally order something online. However, you have a nagging feeling that you’re not getting your money’s worth.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!Perhaps all you need is a reminder of the benefits you might be missing out on, or maybe it’s time for a few fresh ideas to inspire you. Here are a few ways to maximize your Costco Executive membership.Double-dip cash rewardsAs an Executive member, you earn a 2% reward on each qualified purchase, up to $1,250 annually. Think you can’t spend enough to earn the entire $1,250? Don’t forget that all qualified Costco, Costco.com, and Costco Travel purchases count toward your total.A check is sent to you two months before your membership renewal date. You can hand it to the cashier on your very next Costco shopping trip or save it for something special, like a new appliance, trampoline, or sectional furniture. Since the reward never expires, you don’t have to decide immediately.Why stop with 2%, though? Why not maximize your rewards by paying for your Costco purchases with a Visa that gives you cash back?If you’re looking for such a card, you may want to check out some of our favorite cards for Costco spending. Don’t forget, though, Costco only accepts Visa in store (and just Visa and Mastercard at Costco.com).Often overlooked perksExecutive membership is the more exclusive of the two Costco membership options. If you’re overlooking any of these benefits, you’re not maximizing your Executive membership.Travel benefitsExecutive members receive better travel benefits, including rental cars, hotels, vacation planning, and travel products. As mentioned above, booking travel through Costco as an Executive member earns you a cool 2% cash back. Plus, Executive members are the only Costco members to receive special extras on select vacations.For example, Executive members who book a Uniworld Boutique River Cruise receive a $50 shipboard credit per person and a digital Costco Shop Card.Home insurancePurchase your home insurance through CONNECT, and, as an Executive member, you’ll receive extras like home lockout assistance and home glass repair reimbursement. And because CONNECT is a branch of American Family Insurance, you can be sure that your insurance company is financially secure.Auto insuranceExecutive members who insure their vehicles through CONNECT can also access free roadside assistance. The next time you have a flat tire or dead battery, you can depend on roadside assistance to get you back on the road.Costco Connection magazine subscriptionAs an Executive member, you’ll receive a monthly copy of Costco Connection in the mail. Costco Connection offers everything from health tips to business advice and recipes.As a Costco member, chances are that you’re careful with your finances and typically make decisions that are good for your bottom line. You may pay more to be an Executive member, but you also have access to deeper discounts and the kinds of perks that reward you for upgrading.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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Let’s say you spent $130 to become a Costco Executive member. You use your membership card to shop in-store and occasionally order something online. However, you have a nagging feeling that you’re not getting your money’s worth.

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!

Perhaps all you need is a reminder of the benefits you might be missing out on, or maybe it’s time for a few fresh ideas to inspire you. Here are a few ways to maximize your Costco Executive membership.

Double-dip cash rewards

As an Executive member, you earn a 2% reward on each qualified purchase, up to $1,250 annually. Think you can’t spend enough to earn the entire $1,250? Don’t forget that all qualified Costco, Costco.com, and Costco Travel purchases count toward your total.

A check is sent to you two months before your membership renewal date. You can hand it to the cashier on your very next Costco shopping trip or save it for something special, like a new appliance, trampoline, or sectional furniture. Since the reward never expires, you don’t have to decide immediately.

Why stop with 2%, though? Why not maximize your rewards by paying for your Costco purchases with a Visa that gives you cash back?

If you’re looking for such a card, you may want to check out some of our favorite cards for Costco spending. Don’t forget, though, Costco only accepts Visa in store (and just Visa and Mastercard at Costco.com).

Often overlooked perks

Executive membership is the more exclusive of the two Costco membership options. If you’re overlooking any of these benefits, you’re not maximizing your Executive membership.

Travel benefits

Executive members receive better travel benefits, including rental cars, hotels, vacation planning, and travel products. As mentioned above, booking travel through Costco as an Executive member earns you a cool 2% cash back. Plus, Executive members are the only Costco members to receive special extras on select vacations.

For example, Executive members who book a Uniworld Boutique River Cruise receive a $50 shipboard credit per person and a digital Costco Shop Card.

Home insurance

Purchase your home insurance through CONNECT, and, as an Executive member, you’ll receive extras like home lockout assistance and home glass repair reimbursement. And because CONNECT is a branch of American Family Insurance, you can be sure that your insurance company is financially secure.

Auto insurance

Executive members who insure their vehicles through CONNECT can also access free roadside assistance. The next time you have a flat tire or dead battery, you can depend on roadside assistance to get you back on the road.

Costco Connection magazine subscription

As an Executive member, you’ll receive a monthly copy of Costco Connection in the mail. Costco Connection offers everything from health tips to business advice and recipes.

As a Costco member, chances are that you’re careful with your finances and typically make decisions that are good for your bottom line. You may pay more to be an Executive member, but you also have access to deeper discounts and the kinds of perks that reward you for upgrading.

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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
The Financial Independence, Retire Early (FIRE) movement is dedicated to helping people retire before the traditional retirement age of 65-70. The premise of FIRE is that people who live frugally and invest enough throughout their working years can become financially independent and spend the rest of their lives living off the passive income generated by their assets. 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. There are at least four offshoots of the traditional FIRE movement. They include:Lean FIRE: Involves saving enough to live a comfortable, but not lavish, lifestyle during retirement.Fat FIRE: Designed for those who wish to live a lavish lifestyle during retirement.Barista FIRE: Barista FIRE allows you to retire early with investments that cover the majority of your living expenses. However, it involves taking on a part-time job to cover expenses like health insurance and miscellaneous expenses. And then there’s Coast FIRE.Coast FIREWith Coast FIRE, you invest enough money you think it will take to sustain you in retirement. For example, if you plan on spending $100,000 a year in retirement, you might aim to build a nest egg of $2.5 million. (A common guideline in the FIRE community is to save 25-times your annual expenses.)Once you believe you’ve invested enough, you can quit your job and switch to one you enjoy more. As long as it pays enough to cover living expenses, you no longer have to contribute to your nest egg and can “coast” until retirement. An example of Coast FIRELet’s say you’re 25 and want to retire at 50. At age 45, you check your favorite trading platform, look at your portfolio, and decide that if your investments continue to grow at the same rate, you’ll easily have enough to retire at 50. You quit your job and work part-time or try a new full-time position. However, if you’re nowhere near your goal, you’ll need to stick with your current job and continue contributing to your nest egg. It’s not until you reach your goal that you get to coast. Coast FIRE is an offshoot of the FIRE movement, and while it may be the ideal plan for some, it can be a disaster for others. Coast FIRE offers you the chance to reinvent your life in middle age. However, there are at least four things that can go wrong. If you’re looking for a way to build a nest egg over time, you may want to consider how these top-rated IRAs can help you achieve your goal. 1. Your numbers could be way offYou may overestimate the average annual return on your investments and not save enough. Or, you could underestimate the amount of money you’ll need for retirement. Either way, you could find yourself short of the mark. If you’re currently in your 20s or 30s, it may be hard to imagine how much you’ll change over the next 30 to 40 years. You’re not going to stop growing and maturing. As you’re introduced to new ideas, meet new people, and experience entirely new things, it’s natural that your thoughts and opinions will change. I’m not saying you’ll be unrecognizable, but you will change. It’s a natural part of adult development. What you “think” you’ll want during your retirement years may not be what you actually want. 2. You could decide to coast too earlyThis point piggybacks on the previous point. None of us knows what we don’t know. You could take a look at your portfolio and be thrilled to see you’ve amassed what appears to be a small fortune. However, since none of us can see the future, you may switch over to coasting too early, stop investing, and, thanks to inflation, end up with a less impressive nest egg than expected. 3. You could underestimate the cost of health insuranceFidelity Investments estimates that the average 65-year-old American couple can expect to spend around $315,000 on healthcare expenses throughout retirement. You can cut that amount in half to $157,500 if you’re single. While this amount includes Medicare premiums, medical expenses can still come as a surprise. Unless you’ve remembered to build in enough to cover the cost of medical care in retirement, you may not have as much as expected for other living expenses. Plus, there’s the issue of losing your employer-sponsored medical coverage if you leave your job to take on something part-time or start your own business. 4. You could sacrifice your current happinessCoast FIRE success often requires making dramatic cuts to your budget and lifestyle — especially if you don’t earn much money. There’s an interesting Reddit post, written by a 32-year-old who says they quit the movement so they could spend more time enjoying their life. According to a poster named fireflyer, they’ve never earned more than $50,000 annually (and sometimes much less), live in a high-cost-of-living city, and have spent the past five years saving every penny. Here’s some of what fireflyer has experienced over the past five years:Stopped socializing due to the cost. Hasn’t had the money to fulfill the dream of traveling.Feels the goalpost constantly moves, and they’ll never have as much as they need to retire early and coast. Feels as though they’re waiting for their life to start.Of course, not every experience will be like fireflyer. Still, they provide an honest look at what it’s like for some. For those who make Coast FIRE work for them, it’s undoubtedly gratifying, but that doesn’t mean it’s right for everyone’s finances or lifestyle. Go in with your eyes open and know what you can expect. That way, you have the best possible chance of success.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.Dana George has no position in any of the stocks mentioned. The Motley Fool recommends InterContinental Hotels Group Plc. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

The Financial Independence, Retire Early (FIRE) movement is dedicated to helping people retire before the traditional retirement age of 65-70. The premise of FIRE is that people who live frugally and invest enough throughout their working years can become financially independent and spend the rest of their lives living off the passive income generated by their assets.

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.

There are at least four offshoots of the traditional FIRE movement. They include:

Lean FIRE: Involves saving enough to live a comfortable, but not lavish, lifestyle during retirement.Fat FIRE: Designed for those who wish to live a lavish lifestyle during retirement.Barista FIRE: Barista FIRE allows you to retire early with investments that cover the majority of your living expenses. However, it involves taking on a part-time job to cover expenses like health insurance and miscellaneous expenses.

And then there’s Coast FIRE.

Coast FIRE

With Coast FIRE, you invest enough money you think it will take to sustain you in retirement. For example, if you plan on spending $100,000 a year in retirement, you might aim to build a nest egg of $2.5 million. (A common guideline in the FIRE community is to save 25-times your annual expenses.)

Once you believe you’ve invested enough, you can quit your job and switch to one you enjoy more. As long as it pays enough to cover living expenses, you no longer have to contribute to your nest egg and can “coast” until retirement.

An example of Coast FIRE

Let’s say you’re 25 and want to retire at 50. At age 45, you check your favorite trading platform, look at your portfolio, and decide that if your investments continue to grow at the same rate, you’ll easily have enough to retire at 50. You quit your job and work part-time or try a new full-time position.

However, if you’re nowhere near your goal, you’ll need to stick with your current job and continue contributing to your nest egg. It’s not until you reach your goal that you get to coast.

Coast FIRE is an offshoot of the FIRE movement, and while it may be the ideal plan for some, it can be a disaster for others. Coast FIRE offers you the chance to reinvent your life in middle age. However, there are at least four things that can go wrong.

If you’re looking for a way to build a nest egg over time, you may want to consider how these top-rated IRAs can help you achieve your goal.

1. Your numbers could be way off

You may overestimate the average annual return on your investments and not save enough. Or, you could underestimate the amount of money you’ll need for retirement. Either way, you could find yourself short of the mark.

If you’re currently in your 20s or 30s, it may be hard to imagine how much you’ll change over the next 30 to 40 years. You’re not going to stop growing and maturing. As you’re introduced to new ideas, meet new people, and experience entirely new things, it’s natural that your thoughts and opinions will change.

I’m not saying you’ll be unrecognizable, but you will change. It’s a natural part of adult development. What you “think” you’ll want during your retirement years may not be what you actually want.

2. You could decide to coast too early

This point piggybacks on the previous point. None of us knows what we don’t know. You could take a look at your portfolio and be thrilled to see you’ve amassed what appears to be a small fortune.

However, since none of us can see the future, you may switch over to coasting too early, stop investing, and, thanks to inflation, end up with a less impressive nest egg than expected.

3. You could underestimate the cost of health insurance

Fidelity Investments estimates that the average 65-year-old American couple can expect to spend around $315,000 on healthcare expenses throughout retirement. You can cut that amount in half to $157,500 if you’re single. While this amount includes Medicare premiums, medical expenses can still come as a surprise.

Unless you’ve remembered to build in enough to cover the cost of medical care in retirement, you may not have as much as expected for other living expenses.

Plus, there’s the issue of losing your employer-sponsored medical coverage if you leave your job to take on something part-time or start your own business.

4. You could sacrifice your current happiness

Coast FIRE success often requires making dramatic cuts to your budget and lifestyle — especially if you don’t earn much money. There’s an interesting Reddit post, written by a 32-year-old who says they quit the movement so they could spend more time enjoying their life.

According to a poster named fireflyer, they’ve never earned more than $50,000 annually (and sometimes much less), live in a high-cost-of-living city, and have spent the past five years saving every penny. Here’s some of what fireflyer has experienced over the past five years:

Stopped socializing due to the cost. Hasn’t had the money to fulfill the dream of traveling.Feels the goalpost constantly moves, and they’ll never have as much as they need to retire early and coast. Feels as though they’re waiting for their life to start.

Of course, not every experience will be like fireflyer. Still, they provide an honest look at what it’s like for some.

For those who make Coast FIRE work for them, it’s undoubtedly gratifying, but that doesn’t mean it’s right for everyone’s finances or lifestyle. Go in with your eyes open and know what you can expect. That way, you have the best possible chance of success.

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.Dana George has no position in any of the stocks mentioned. The Motley Fool recommends InterContinental Hotels Group Plc. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Passive income is one of the biggest dreams of entrepreneurs. The idea of starting a business that puts money in your business bank account every month with minimal effort can be intoxicating.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 is passive income a realistic goal for most entrepreneurs? Or would you be better off putting your time and energy into an “active income” business that pays by the hour?Let’s look at a few facts about passive income businesses, and see how much work it really takes to earn money “the easy way” as a small business owner.Beware the risks of starting a businessStarting a business of any kind can be risky. According to recent Bureau of Labor Statistics data, 48% of small businesses opened in 2018 had failed by 2023. That means about half of all small businesses won’t survive to see their fifth birthday.Although the BLS data doesn’t have a breakdown on how many of these business failures were “passive income” businesses, it’s important to keep in mind that earning passive income is not easy. If you have to spend a bunch of money upfront on an e-commerce store, marketing, and other expenses of launching a business, you need to be confident that you have a viable business model.Choose the right business model for passive incomeSometimes aspiring entrepreneurs get dazzled by the idea of “passive income,” but don’t have a clear plan for how they’re actually going to make money.Here are a few basic business models where you can earn passive income:Rental incomeE-commerce storeDropshippingSelf-published booksDigital productsOnline coursesSubscriptionsBloggingPodcastingOnline advertisingAffiliate marketingContent creator/social media influencerThese are all legitimate ways to make money with an online business (or with rental income, a brick-and-mortar business). But none of these passive income business models are guaranteed to be very profitable, and some are highly competitive (like dropshipping or e-commerce).You might need to build up a substantial online audience or find a lucrative niche website before you can make a significant amount of money with e-commerce or digital advertising.Diversify your passive income streamsAnother popular dream business idea is to make money as a social media influencer. Lots of people make money as online content creators and social media influencers, by monetizing their audiences on TikTok or YouTube or other platforms. It’s easier than ever to create and publish content and share your ideas with the world.But most content creators and influencers aren’t getting rich, or even making a full-time income. For example, according to survey data cited by PYMNTS, in 2023, 48% of content creators earned $15,000 per year or less, and only 13% earned more than $100,000 per year.This means that if you want to make a living with passive income businesses, you need to diversify your income streams. You might want to try a few different business concepts and marketing channels at once, such as:Starting an e-commerce siteLaunching a YouTube channel with product reviews and adviceOffering online coaching in your area of career expertiseSelling products online on eBay and AmazonSelling arts and crafts on EtsyStarting a podcast where you interview other successful people in your industryNot every passive income idea needs to be a big hit. But by investing in a diversified “portfolio” of online business ideas, you can find the ones that work. For example, if you can create five different small business revenue streams that each earn an average of $1,667 per month, you’ll have $100,000 per year of business income.Combine passive income (digital products) with active income (services)If you own a business as a solopreneur, business consultant, or freelancer, your main business model is “active income” — selling your professional services. But you could also earn passive income by selling digital products on the side.According to the HoneyBook Growth Guide, top-earning marketing and creative consultants (earning six figures or more) earn 25% of their business revenue from selling digital products. This could include online workshops, subscriptions, courses, and memberships.Passive income takes active effortNo matter what kind of business model or marketing strategy you choose, keep in mind that passive income is not an overnight success story or a get-rich-quick scheme. You might need to invest many months and unpaid hours of hard work on your blog, online store, podcast, or social media channel before you start to make money. As a social media influencer, you need to constantly create content and engage with your audience to keep people following you and to stay in the public conversation.The conversation about “passive income” is sometimes dominated by a few people who have experienced high levels of success. It’s true that some people make millions of dollars with online businesses. But the typical entrepreneur’s experience might be more modest and slow to build.Bottom linePassive income businesses are real, but getting results can take many hours of hard active work. And that’s fine! If you enjoy what you’re doing as a small business owner, if you’re making enough money to pay the bills, and if you see potential for future growth, being a lower-paid entrepreneur with active income is still a success story.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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon and Etsy. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Passive income is one of the biggest dreams of entrepreneurs. The idea of starting a business that puts money in your business bank account every month with minimal effort can be intoxicating.

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 is passive income a realistic goal for most entrepreneurs? Or would you be better off putting your time and energy into an “active income” business that pays by the hour?

Let’s look at a few facts about passive income businesses, and see how much work it really takes to earn money “the easy way” as a small business owner.

Beware the risks of starting a business

Starting a business of any kind can be risky. According to recent Bureau of Labor Statistics data, 48% of small businesses opened in 2018 had failed by 2023. That means about half of all small businesses won’t survive to see their fifth birthday.

Although the BLS data doesn’t have a breakdown on how many of these business failures were “passive income” businesses, it’s important to keep in mind that earning passive income is not easy. If you have to spend a bunch of money upfront on an e-commerce store, marketing, and other expenses of launching a business, you need to be confident that you have a viable business model.

Choose the right business model for passive income

Sometimes aspiring entrepreneurs get dazzled by the idea of “passive income,” but don’t have a clear plan for how they’re actually going to make money.

Here are a few basic business models where you can earn passive income:

Rental incomeE-commerce storeDropshippingSelf-published booksDigital productsOnline coursesSubscriptionsBloggingPodcastingOnline advertisingAffiliate marketingContent creator/social media influencer

These are all legitimate ways to make money with an online business (or with rental income, a brick-and-mortar business). But none of these passive income business models are guaranteed to be very profitable, and some are highly competitive (like dropshipping or e-commerce).

You might need to build up a substantial online audience or find a lucrative niche website before you can make a significant amount of money with e-commerce or digital advertising.

Diversify your passive income streams

Another popular dream business idea is to make money as a social media influencer. Lots of people make money as online content creators and social media influencers, by monetizing their audiences on TikTok or YouTube or other platforms. It’s easier than ever to create and publish content and share your ideas with the world.

But most content creators and influencers aren’t getting rich, or even making a full-time income. For example, according to survey data cited by PYMNTS, in 2023, 48% of content creators earned $15,000 per year or less, and only 13% earned more than $100,000 per year.

This means that if you want to make a living with passive income businesses, you need to diversify your income streams. You might want to try a few different business concepts and marketing channels at once, such as:

Starting an e-commerce siteLaunching a YouTube channel with product reviews and adviceOffering online coaching in your area of career expertiseSelling products online on eBay and AmazonSelling arts and crafts on EtsyStarting a podcast where you interview other successful people in your industry

Not every passive income idea needs to be a big hit. But by investing in a diversified “portfolio” of online business ideas, you can find the ones that work. For example, if you can create five different small business revenue streams that each earn an average of $1,667 per month, you’ll have $100,000 per year of business income.

Combine passive income (digital products) with active income (services)

If you own a business as a solopreneur, business consultant, or freelancer, your main business model is “active income” — selling your professional services. But you could also earn passive income by selling digital products on the side.

According to the HoneyBook Growth Guide, top-earning marketing and creative consultants (earning six figures or more) earn 25% of their business revenue from selling digital products. This could include online workshops, subscriptions, courses, and memberships.

Passive income takes active effort

No matter what kind of business model or marketing strategy you choose, keep in mind that passive income is not an overnight success story or a get-rich-quick scheme. You might need to invest many months and unpaid hours of hard work on your blog, online store, podcast, or social media channel before you start to make money. As a social media influencer, you need to constantly create content and engage with your audience to keep people following you and to stay in the public conversation.

The conversation about “passive income” is sometimes dominated by a few people who have experienced high levels of success. It’s true that some people make millions of dollars with online businesses. But the typical entrepreneur’s experience might be more modest and slow to build.

Bottom line

Passive income businesses are real, but getting results can take many hours of hard active work. And that’s fine! If you enjoy what you’re doing as a small business owner, if you’re making enough money to pay the bills, and if you see potential for future growth, being a lower-paid entrepreneur with active income is still a success story.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon and Etsy. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Today, many people are turning to side hustles not just to make ends meet, but to truly transform their financial situation. Indeed, fully 20% of American households now generate passive income though side hustles, according to the Census Bureau.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. There is little doubt that having extra sources of passive income has increasingly become more of a necessity in these inflationary times. But what if that side hustle could do more than just pad your wallet? What if it could actually create wealth and even double your income?Savvy side hustlers are doing just that, and leveraging various passive income streams to build wealth. Let’s see how.1. Real estate investingReal estate is the tried-and-true workhorse grandaddy of passive income. It is simply a matter of buying and renting out different sorts of properties — houses, apartments, commercial buildings, and so on. Passive income is derived from such activities in two ways:Via the rental income earnedVia the appreciation in the buildingMany side hustlers use real estate to diversify their income, providing a stable and often lucrative passive stream of income.2. Dividend-paying stocksAnother favorite among those seeking passive income is dividend-paying stocks. By investing in stocks and companies that pay dividends, individuals can earn regular payouts without having to sell their shares. Over time, reinvesting those dividends can lead to compounding wealth, a major reason why investors gravitate toward this strategy.3. Creating and selling digital productsWith the rise of e-commerce and online selling platforms, creating and selling digital products like e-books, courses, and templates has become a popular way to generate passive income. These products do require an initial investment of time and effort, but once launched, they can sell indefinitely, and practically on their own, providing continuous earnings without continuous work.4. Interest on bank savingsThis is about as easy a “side hustle” as there is. Simply set up a high-yield savings account, deposit money in it regularly, sit back, and watch your money grow.Click here to check out our favorite high-yield savings accounts and get to earning 4% APY (or more) on your savings.5. BondsBonds can be a great passive investment, especially now. The Federal Reserve Bank of St. Louis projects a median rate of almost 4% next year, and historically, rates have ranged from 7% to 10%, depending upon the maturity length (one year on up).Bonds can also be sold on a secondary market, sometimes for more than they were purchased for, providing further upside.You can buy bonds from your broker or directly from the U.S. government, via the Treasury Direct website.6. Vending machinesA vending machine business can be a great source of passive income because once the machines are in place and stocked, they can operate with minimal daily involvement. Then, by hiring a manager to deal with the day-to-day restocking of products, you can generate consistent passive income from sales of snacks, drinks, or other products.Even better: With the use of modern technology, many vending machines now allow for remote monitoring, so you can track inventory and sales online, reducing the need for frequent visits. While there is initial investment and occasional maintenance, a vending machine business can largely be run on autopilot, making it a reliable passive income stream.So there you have it. Six different passive income side hustles that can help you generate real wealth.What are you waiting for?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”:”

Today, many people are turning to side hustles not just to make ends meet, but to truly transform their financial situation. Indeed, fully 20% of American households now generate passive income though side hustles, according to the Census Bureau.

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.

There is little doubt that having extra sources of passive income has increasingly become more of a necessity in these inflationary times. But what if that side hustle could do more than just pad your wallet? What if it could actually create wealth and even double your income?

Savvy side hustlers are doing just that, and leveraging various passive income streams to build wealth. Let’s see how.

1. Real estate investing

Real estate is the tried-and-true workhorse grandaddy of passive income. It is simply a matter of buying and renting out different sorts of properties — houses, apartments, commercial buildings, and so on. Passive income is derived from such activities in two ways:

Via the rental income earnedVia the appreciation in the building

Many side hustlers use real estate to diversify their income, providing a stable and often lucrative passive stream of income.

2. Dividend-paying stocks

Another favorite among those seeking passive income is dividend-paying stocks. By investing in stocks and companies that pay dividends, individuals can earn regular payouts without having to sell their shares. Over time, reinvesting those dividends can lead to compounding wealth, a major reason why investors gravitate toward this strategy.

3. Creating and selling digital products

With the rise of e-commerce and online selling platforms, creating and selling digital products like e-books, courses, and templates has become a popular way to generate passive income. These products do require an initial investment of time and effort, but once launched, they can sell indefinitely, and practically on their own, providing continuous earnings without continuous work.

4. Interest on bank savings

This is about as easy a “side hustle” as there is. Simply set up a high-yield savings account, deposit money in it regularly, sit back, and watch your money grow.

Click here to check out our favorite high-yield savings accounts and get to earning 4% APY (or more) on your savings.

5. Bonds

Bonds can be a great passive investment, especially now. The Federal Reserve Bank of St. Louis projects a median rate of almost 4% next year, and historically, rates have ranged from 7% to 10%, depending upon the maturity length (one year on up).

Bonds can also be sold on a secondary market, sometimes for more than they were purchased for, providing further upside.

You can buy bonds from your broker or directly from the U.S. government, via the Treasury Direct website.

6. Vending machines

A vending machine business can be a great source of passive income because once the machines are in place and stocked, they can operate with minimal daily involvement. Then, by hiring a manager to deal with the day-to-day restocking of products, you can generate consistent passive income from sales of snacks, drinks, or other products.

Even better: With the use of modern technology, many vending machines now allow for remote monitoring, so you can track inventory and sales online, reducing the need for frequent visits. While there is initial investment and occasional maintenance, a vending machine business can largely be run on autopilot, making it a reliable passive income stream.

So there you have it. Six different passive income side hustles that can help you generate real wealth.

What are you waiting for?

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.

“}]] Read More 

[[{“value”:”Image source: The Motley Fool/Upsplash
With interest rates so high, CDs (certificates of deposit) have been all the rage for the last couple of years. Even with rates dropping this year, CDs are still getting a lot of buzz — and for good reason.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. If you want a low-risk, good-reward place to park some money and let it grow, you really can’t go wrong with a CD. Click here to check out our favorite CDs for rates over 4% APY.As great as they are, however, CDs do have one big drawback — and that drawback is why I’m sticking with my trusty high-yield savings accounts.I don’t want to lock up my savingsMy main pain point with CDs is that most have steep penalties if you withdraw your money before the CD matures. This essentially locks up your cash for the life of the CD.You can pick the maturity term when you choose which CD to open. But once you open that CD and deposit your money, you really need to leave it alone until that term ends and the CD matures.If you withdraw your money before the CD matures, you could be faced with some big fees. Not only can these fees eat up the interest you’ve earned, but some banks will even take part of your principal if the fee is more than you’ve earned in interest to that point.I can still get competitive APYsThe reason we love CDs despite this drawback is that you aren’t just locking up your investment — you’re also locking in your interest rate. Given the good odds that the Fed will continue to cut rates over the next few months, locking in higher rates now can be a big win.However, my current savings situation means I value having liquidity (quick, easy, low-cost access to my money) over a guaranteed rate. That’s why I’m currently leaving my money in my savings accounts instead of picking up a CD.That doesn’t mean I’ve necessarily sacrificed a lot of interest earrings, however. I can still find APYs of 4% and up from the top high-yield savings accounts.If rates drop, I can account hopAnother benefit of having my money accessible at all times is that I can take advantage of promo rates and new account bonuses. Whenever I see a great deal, I can just move my cash to a new bank as needed.For example, some banks will offer promotional APYs for new savings accounts. I can move my money over until the promo rate runs out, then move it to the next best deal.Similarly, many banks will offer cash bonuses for opening a new checking or saving account. You can earn up to $400 from our top-rated bank bonuses.A CD can be an excellent tool for helping your money grow, but it isn’t the right tool for every job. Sometimes a high-yield savings account — or even a new checking account with a bonus — may be the better call.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”:”

With interest rates so high, CDs (certificates of deposit) have been all the rage for the last couple of years. Even with rates dropping this year, CDs are still getting a lot of buzz — and for good reason.

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

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

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

If you want a low-risk, good-reward place to park some money and let it grow, you really can’t go wrong with a CD. Click here to check out our favorite CDs for rates over 4% APY.

As great as they are, however, CDs do have one big drawback — and that drawback is why I’m sticking with my trusty high-yield savings accounts.

I don’t want to lock up my savings

My main pain point with CDs is that most have steep penalties if you withdraw your money before the CD matures. This essentially locks up your cash for the life of the CD.

You can pick the maturity term when you choose which CD to open. But once you open that CD and deposit your money, you really need to leave it alone until that term ends and the CD matures.

If you withdraw your money before the CD matures, you could be faced with some big fees. Not only can these fees eat up the interest you’ve earned, but some banks will even take part of your principal if the fee is more than you’ve earned in interest to that point.

I can still get competitive APYs

The reason we love CDs despite this drawback is that you aren’t just locking up your investment — you’re also locking in your interest rate. Given the good odds that the Fed will continue to cut rates over the next few months, locking in higher rates now can be a big win.

However, my current savings situation means I value having liquidity (quick, easy, low-cost access to my money) over a guaranteed rate. That’s why I’m currently leaving my money in my savings accounts instead of picking up a CD.

That doesn’t mean I’ve necessarily sacrificed a lot of interest earrings, however. I can still find APYs of 4% and up from the top high-yield savings accounts.

If rates drop, I can account hop

Another benefit of having my money accessible at all times is that I can take advantage of promo rates and new account bonuses. Whenever I see a great deal, I can just move my cash to a new bank as needed.

For example, some banks will offer promotional APYs for new savings accounts. I can move my money over until the promo rate runs out, then move it to the next best deal.

Similarly, many banks will offer cash bonuses for opening a new checking or saving account. You can earn up to $400 from our top-rated bank bonuses.

A CD can be an excellent tool for helping your money grow, but it isn’t the right tool for every job. Sometimes a high-yield savings account — or even a new checking account with a bonus — may be the better call.

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