Money Management

Renting can save you money with lower upfront costs, no surprise maintenance, and greater flexibility. Learn more here. [[{“value”:”

We’ve all been told that buying a home is the ultimate goal — the best investment you’ll ever make. But is it really? With today’s unpredictable real estate market, high mortgage rates, and changing lifestyles, renting might actually be the better financial move.

Yep, you read that right. Renting, often viewed as “throwing money away,” can offer some serious financial perks. Let’s break down five key reasons why renting could be smarter for your wallet than buying.

1. Lower upfront costs

Buying a home means forking over a lot of cash upfront. Between the down payment, closing costs, inspections, and other fees, purchasing a house can take a serious bite out of your savings. A typical 20% down payment alone could easily be tens of thousands of dollars, depending on where you’re looking to buy. Add to that all the hidden extra costs that come with home ownership, and your savings can quickly dry up.

On the other hand, renting typically only requires a security deposit and the first month’s rent, keeping your initial out-of-pocket expenses much lower. That leaves more money for investing, traveling, or just having a cushion for life’s unexpected moments.

2. Flexibility to move and adapt

One of the biggest perks of renting? Flexibility. In today’s fast-paced world, where remote work and career changes are becoming the norm, being tied to one location might not be the smartest move. Renters have the freedom to pick up and relocate with much more ease than homeowners.

If you like to explore new places, pursue job opportunities in different cities, or simply don’t want to settle down yet, renting allows you to pack up and move when your lease ends. Selling a house, on the other hand, can be a lengthy, expensive process, especially in a slow market.

3. No surprise maintenance costs

Owning a home comes with the responsibility of maintenance, and those costs can add up fast. Whether it’s a leaky roof, broken furnace, or plumbing issues, homeowners are on the hook for repairs. State Farm Insurance recommends that homeowners set aside 1% to 4% of the home’s value each year for maintenance.

As a renter, you don’t have to worry about those surprise expenses. If something breaks, your landlord or property management company handles it. That peace of mind is not only a huge convenience, but also saves you from those unexpected financial burdens.

4. Freedom from market fluctuations

The real estate market can be unpredictable. Remember the housing crash of 2008? Property values plummeted, and homeowners were left with homes worth less than what they paid. Even though the market has since recovered, buying a home is never a guaranteed win.

Renters, however, are not tied to the ups and downs of the housing market. Instead of worrying about the potential for declining property values, renters can enjoy the stability of a predictable monthly payment without the risk of losing equity in a down market.

5. More opportunities to invest elsewhere

One of the biggest financial arguments for renting is the opportunity to invest your money in other areas. When you buy a home, a large chunk of your net worth is tied up in a single asset. While that can be great if the property appreciates in value, it also limits your ability to diversify your investments.

Renting gives you more flexibility with your finances. Instead of locking your money into a down payment or home equity, you can invest it in the stock market, retirement funds, or even a side business that could yield a higher return. Diversifying your investments is often a smarter financial strategy than betting it all on one property.

While home ownership works for some, it’s not the only path to financial success. Renting offers flexibility, lower upfront costs, and the freedom to invest in other opportunities — all without the headaches of maintenance and market volatility. So the next time someone tells you that renting is just “throwing money away,” remember that sometimes, it’s the smarter financial move.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More 

The HSA is at a triple-tax-advantaged account for medical expenses. Find out why I’m not touching mine (for now). [[{“value”:”

HSAs (health savings accounts) are the unsung hero of personal finances. These accounts allow people with qualifying high-deductible insurance plans to set aside $4,150 for single plans and $8,300 for families out of pre-tax dollars. Once you hit age 55, you can add another $1,000 per year.

HSAs work similarly to regular savings accounts, but have a few added benefits. HSA contributions are triple tax advantaged, which means you don’t pay income tax when the funds come out of your paycheck, you don’t pay tax on their growth, and you don’t pay taxes when you withdraw the money, as long as the money is used for approved medical expenses.

A lot of people who have HSAs use the money as it comes in to cover medical expenses, which is a valid way to use them. However, my family uses ours a little differently.

When my daughter needed braces, we paid $2,000 in cash rather than tapping our HSA. In fact, we pay out of pocket for all medical expenses we can and don’t touch our HSA. Here’s why.

HSA funds can be invested

HSA contributions can be invested, allowing the money to grow. Assuming an average rate of return of around 8%, $2,000 could grow to $9,854 by the time we retire in around 20 years. So by paying in cash for our daughter’s braces, we were able to leave that amount in our HSA, where it could earn us about $8,000 that we can use for medical expenses when we’re older.

Remember, HSA growth is tax free as long as it is used for medical expenses. So, if my husband or I need cancer treatment or heart surgery when we’re in our 70s, we can still use the money without paying taxes on it.

HSA contributions can be pulled at a later date

Our HSA account also provides a cushion if we hit financial hardships. Let’s say something happens in five years, and we really need that $2,000 we paid for braces to repair the roof (which isn’t a medical expense). We can use the receipts from the orthodontist to pull out the $2,000 we spent on braces and still pay no taxes.

This means that there’s little risk in leaving the money to grow, and it creates another safety net in addition to our emergency fund, which we split between CDs and a high-yield savings account.

Approved HSA expenses are pretty broad and can include hand sanitizer, braces, glasses, teeth cleaning, acupuncture, athletic mouth guards, health-related books, and cough syrup. I do recommend keeping a file of medical receipts so you can pull the money out if needed later. You may also have an online portal where you can access the receipts.

The HSA gives us a cushion during retirement

The average American couple spends an average of $315,000 on medical expenses in retirement, according to Fidelity Investments. Of course, there is a risk that you’ll have to spend more. By saving in an HSA now and not spending the funds, we’re creating a nest egg specifically for medical expenses.

While no one can predict their future health (or stock market returns), knowing we’ll be able to cover most medical expenses without using too much of our retirement savings makes me feel more secure. When we both pass, it becomes part of our estate and is then taxed as income.

Like most financial decisions, this isn’t an all-or-nothing strategy. If you need to use HSA funds to cover medical expenses, do so! That is what it’s there for. But it might be worth considering leaving at least some of your balance to invest and save for the future.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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 

Not only are rates falling but taxes on CD interest can seriously reduce your gains. See why CDs aren’t as great a place for your nest egg as they first seem. [[{“value”:”

High savings rates have pushed certificates of deposit (CDs) into the limelight in recent years. When rates were low, CDs were a relatively underused savings workhorse. But when top CD rates soared to 5% or more, they became savings superstars.

CDs are popular with retirees who want a low-risk way to earn predictable returns, particularly as you can buy CDs through top brokerages as well as banks. You can even put CDs into your individual retirement account (IRA).

But CDs are only useful in certain scenarios. Even before rates started to fall, they weren’t a financial magic bullet. Here are three reasons to park your cash elsewhere.

1. Rates are falling

The Federal Reserve just cut its benchmark interest rate for the first time in over four years. Sure, that 0.5% cut alone won’t make that much difference to your CD earnings. But it won’t just be 0.5% — this is likely the first in a series of rate cuts. We can expect to see rates on savings accounts and CDs fall steadily in the coming year or two.

Some argue that falling rates are all the more reason for retirees to lock in relatively high rates while they’re still available. That’s understandable. Just be aware that any money you lock into a CD is money you can’t use for other things.

If you haven’t saved as much as you’d hoped for your retirement, that’s money that isn’t earning higher returns through investments. Buying stocks carries more risk than CDs, but stock investments can also seriously outperform them.

2. You have to pay taxes on CDs

The IRS considers any CD interest of more than $10 as taxable income. Unless you’ve put your CDs into a tax-advantaged account, such as an IRA, your interest payments will be taxed at the same rate as your salary or other income.

Let’s say you have $2,000 in a 3-year CD that pays an APY of 4.5%. You’d earn $90 in annual interest. If you’re in the 22% tax bracket, you’d pay almost $20 in tax each year. That essentially lowers the APY by almost 1%. You’d still be ahead of inflation, but not by much.

CD interest taxes work differently from those on long-term investment gains. Firstly, if an investment increases in value, you only pay taxes when you sell the asset and realize those gains. Secondly, if you hold the asset for longer than a year, you’ll pay long-term capital gains tax rates, which will likely be lower than your income tax rate.

3. Your money is tied up until the end of the CD term

For the most part, when you put money into a CD, you commit to leaving it alone. You’ll have to pay an early withdrawal penalty if you want to get at it before the end of the term. That means CDs aren’t a great place to put money you might need to access at any time, such as your emergency savings.

The Fed’s decision to cut rates means we’re in for a period of change, which can bring opportunities. But it’s harder to jump on new — potentially more lucrative — options if your money is tied up for long stretches of time.

Building a CD ladder can help mitigate this risk. This involves dividing your money up and putting it into several CDs of different lengths so chunks of your money aren’t locked away for as long. Even then, CDs are relatively illiquid and don’t give you a lot of wiggle room.

Forget about CDs — there are better places to put your money

It’s easy to understand the attraction of a low-risk savings account that pays predictable returns, particularly if you’re retired and don’t want to take unnecessary risks with your nest egg. But it’s really important that your retirement savings don’t stagnate. This can happen if you put too much into CDs.

Here are some other things to do with your money:

Invest in bonds: Now that interest rates are falling, bonds are gaining traction again. Bonds have had a rough few years, but they’re a great alternative to CDs. They can provide a fixed income and often perform well when rates are going down.Pay down high-interest debt: If you carry a balance on your credit card, you may be paying upward of 20% in interest. That beats every CD on the market, as well as many other investments.Buy dividend-paying stocks: Dividends are a way for companies to share their profits with shareholders. Not only can those payments be a good source of income for retirees, but the stocks themselves may also appreciate in value.

It isn’t easy to structure your retirement portfolio — and there’s no single “right” answer. CDs can play their part, but diversification is crucial so that you’re not dependent on any one investment. The rest depends on your needs, risk tolerance, and wider financial plan.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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 

Discover the essentials of small business branding in this guide. Learn how to build a strong brand identity that resonates with your desired market. [[{“value”:”

We hear about small business marketing and branding all of the time. “This company has a strong brand, that company has a fuzzy brand.” But do you know what a brand and branding actually is? Far too many small business people don’t. Thinking that branding is something for bigger companies to worry about, these small business people tend not to worry about it.

Mistake, that.

The fact is, branding is probably more important for a small business than a big one because we have just so many rivals. In fact, 99.9% of all businesses in the United States are small businesses, and so, with that much competition, you need to stand out. And you stand out by having a distinctive brand. In fact, a strong brand does more than just set you apart — it builds trust, establishes loyalty, and generates customers.

So, just what is a brand?

A brand is a company’s name, promise, personality, and reputation all rolled into one. For example, when I say “BMW,” what do you think of? Probably a beautiful, luxury German automobile. If that’s true, then BMW did a good job of branding, because that is exactly what the company wanted you to think of when you heard its brand name.

Now what if I say, “Walmart”? In all likelihood, you thought, “a big place to get cheap stuff.” And yep, that is what it is, and that is probably a description that might be just fine with the Walmart execs.

A brand is more than just a logo or a name; it is the way people perceive your business. It is the feeling or idea that comes to mind when customers think about your product or service. Branding encompasses everything from your visual identity (logo, colors, catchphrase) to your advertising, the customer experience, and even the values your business stands for.

Why is branding important?

You know how in politics, opposing candidates work hard to define the other side? They do that because if you think that Politician X really is “soft on crime,” you will be less likely to vote for Politician X. Without a clear brand of his or her own, Politician X risks being labeled in a way he or she probably would not like.

The same is true for your business. No, your competition isn’t going to spend a lot of time labeling you, but if you don’t enter the market forcefully, with a clear brand, then people can think whatever they want about your business. And it very well could be wrong. Thus it is your job to create a strong brand so the public knows what your business is about and what makes you unique and different.

For example, you could be simply a dentist, or you could be “The sedation dentist.”
You could be a family lawyer, or you could be “The family lawyer for dads.”
You could be a grocery store, or you could be “The friendliest store in town!”

See? It’s much better if you decide how you want people to remember you.

Thinking about your brand

Before diving into logos or catchphrases, it is important to define what your brand stands for. Ask yourself:

What makes you different, unique, special, and better?What mission do you hope to accomplish?Who is your target audience, and what do they care about?

By clarifying these elements, you can create a brand that resonates with the right people and aligns with your business goals.

Creating a unique brand identity

Your brand identity includes your logo, catchphrase, color scheme, fonts, and the tone of your messaging. Make sure these elements align with your mission and values. For instance, if you’re targeting young, creative consumers, your branding should reflect that energy through vibrant colors and a playful tone.

Logo: Your logo is often the first thing customers will notice, so make it count. It should be simple, memorable, and relevant.Catchphrase or slogan: This is a great place to say who you are and what you are about. Use it everywhere.Color scheme: Colors evoke emotion. Choose colors that represent the mood you want your brand to convey.

Develop a consistent brand voice

Your brand voice is how your business “speaks” to your audience. Yours should be consistent across all platforms, be it your website, social media, email marketing, or your advertising and marketing materials. Will your voice be professional, friendly, authoritative, playful, or something else?

Final thoughts

So yes, branding is about more than just a cool logo or a catchy slogan. It is about standing out and telling the world who you are and how your business is different. Those people who resonate with that message will become your biggest fans. And the others? Let some other brand worry about them; they’re not for you anyway.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

“}]] Read More 

The Fed just lowered interest rates, and more cuts are likely coming. Read on to see what that might do to the housing market. [[{“value”:”

When inflation started surging in 2021, the Federal Reserve had no choice but to respond with interest rate hikes the following year. Rising living costs were getting out of hand, and consumers needed relief. Since inflation has cooled recently, the Fed doesn’t need to keep its benchmark interest rate quite as elevated.

And so the central bank made its first rate cut of 2024 on Sept. 18, lowering its benchmark interest rate by half a percentage point. In light of that, consumers are likely to enjoy lower interest rates on products like credit cards and auto loans in the coming weeks. They’re also likely to see their savings account APYs decrease.

The Fed’s rate cut decisions also have the potential to impact the housing market in a number of ways. Here are some big changes to gear up for in the coming months.

1. Lower mortgage rates

When the Fed lowers its benchmark interest rate, borrowing rates tend to decline across the board. That extends to mortgage rates.

In fact, the very next day following the Fed’s first rate cut, the average 30-year mortgage rate fell to 6.09%. And that average rate is likely to keep dropping slowly, to the point where there may be some serious relief in sight for buyers in 2025.

2. More inventory

A big reason 2024 has been a tough year for home buyers is that real estate inventory has been sorely lacking. But now that mortgage rates are starting to drop, housing inventory is likely to increase.

Many homeowners didn’t want to list their properties for sale this year because doing so would’ve meant giving up competitive mortgage rates and swapping them for more expensive loans. Now that it’s getting cheaper to sign a mortgage, homeowners may be more willing to part with their current loans and move.

3. A return to bidding wars

Bidding wars were rampant in 2021 as home buyers tried to capitalize on the record-low mortgage rates that were available that year. Today, we’re nowhere close to the sub-3% mortgage rates borrowers enjoyed back then.

But if rates continue to fall, it could put more people in a position to buy a home. That has the potential to lead to more competition and a return to bidding wars.

From a seller’s perspective, bidding wars are good since they tend to drive home prices up. But from a buyer’s perspective, they can spell the difference between being able to afford a home or having to sit out the market and wait.

Gear up for big changes

There’s a good chance we’ll see a meaningful shift in the housing market in the coming months. If you’ve been waiting on the sidelines to buy, now’s the time to gear up to make a move.

You may want to bank some extra cash to boost your down payment funds. Building up extra savings to cover moving expenses is a good idea as well.

It’s also important to check your credit report and make sure it doesn’t contain errors. While you’re at it, check your actual credit score. If you’re not happy with that number, you have an opportunity to take steps to boost it, whether by paying bills on time in the coming months or reducing the balances you’re carrying on your credit cards.

In fact, the less debt you have overall, the easier it might be to qualify for a mortgage. And the lower your credit score, the more competitive a mortgage rate you’re likely to get.

Finally, start researching home prices in your area to see what’s out there. Then, line up a real estate agent if you’re serious about buying a home in the near term. Once the above changes take place, seasoned real estate agents might get busy. So now’s a good time to sign up to work with one before the top agents in your area get overloaded with clients.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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 

Costco usually has the best prices, but not always. Read on to find out which items to buy on Amazon. [[{“value”:”

Costco members know better than anyone else just how much money they can save when shopping at the discount warehouse store. Recent research shows that some members can save up to $1,000 annually in groceries.

But is shopping at Costco always the cheapest option? Probably not. Here are a handful of items you might be able to find at a lower price on Amazon — and one Amazon perk that could save you even more money.

Four items that will cost you more at Costco

Costco and Amazon require you to be a member to access the best deals. Amazon’s Prime membership will set you back $139 for a year-long membership, or $15 for a one-month memberhsip, while Costco’s basic Gold Star membership costs $65 annually. Costco also offers a $130 Executive membership, which gives you additional perks, like 2% cash back on purchases.

I’m an Amazon Prime member and, until recently, had a Costco membership, so I know that both have their strengths. But sometimes assuming that one store will have cheaper prices than another is a good way to go over budget when shopping.

So, I combed through both company’s websites, comparing prices in a variety of categories to find a few deals where Amazon wins out. Here’s what I found:

Computer: A previous-generation (but still new) 13-inch Apple Macbook Air M2 costs $849 on Amazon right now, a $100 discount compared to Costco’s online price.Toothpaste: I found a four-pack of Colgate Optic White Platinum toothpaste on Amazon for less than $14, a $5 savings over Costco’s online price.Batteries: Both Amazon and Costco have their own brand of batteries, but a 48-pack of AA Amazon Basics batteries costs $0.50 less than the same number of Kirkland brand batteries.Paper shredder: An Amazon Basics 12-sheet paper and credit card shredder costs just $59, compared to the cheapest 14-sheet paper shredder I could find on Costco’s website, which was $80. Two pages fewer of shredding power is probably worth the $21 in savings.

While I found these items for a cheaper price on Amazon, it’s worth mentioning that Costco’s in-store prices may vary. Also, Amazon’s prices can fluctuate, so there’s no guarantee the products I found on Amazon will continue to be cheaper than at Costco.

An extra way to save with Amazon

It’s important to note that when I was comparison shopping, I found a lot of items on Amazon that would have been even cheaper if I added them to my Subscribe & Save list.

Subscribe & Save is Amazon’s free service that saves you money for getting certain items delivered regularly. For example, if you know you’ll need batteries, laundry detergent, cereal, tissues, and dish soap every month, you can add them to your Subscribe & Save list, pick the delivery frequency, and receive a discount on your order.

You can save 15% or more when you add five or more items to your Subscribe & Save list, and thousands of items are available for a discount. My wife uses it all the time for everyday household products, which have the added convenience of being delivered right to our doorstep.

I have to admit that it took me a while to find a handful of items cheaper on Amazon than at Costco. Apparently, beating the discount warehouse club’s prices is no easy feat. And if you have a Costco credit card or regularly buy gas at the store, then Amazon may not be your best choice. Unless, of course, you’re really looking for a sweet deal on a paper shredder.

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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent 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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More