Money Management

If you have less than $1,000 in savings, you’re in a vulnerable position. Here’s how to start by opening a high-yield savings account and automating your savings. [[{“value”:”

A recent survey from Forbes found that 1 in 4 Americans across all age ranges have less than $1,000 in savings. Sound familiar? If you’re in the same boat, you’re not alone. Between rising home prices, inflation, and stagnant wages, getting ahead can feel impossible.

Not everyone can afford to save hundreds of dollars every month or max out their IRA. But there are steps you can take if your savings account is feeling light.

Set aside at least $500 for unexpected expenses

What happens if your tire pops, your electricity bill is higher than you expect, or you have to visit the emergency room? Those little unplanned bills can become a rolling pile of debt if you don’t have at least a small emergency fund. While having a three-month cushion is a great idea, it’s not feasible for many of us.

Start by opening a high-yield savings account and saving until you have at least $500. That will cover many small emergencies and give you some peace of mind.

Why a high-yield savings account? They offer higher interest rates than traditional banks. Say you put $500 in a savings account at a traditional bank that only offers .01% interest. If you leave it for two years, you’ll earn a whopping $0.10 in interest — not even enough to hit up a vending machine.

Put that same $500 in a high-yield savings account that earns 4.20%, and you’ll earn $42.88 over two years. That means your savings will continue to grow even if you can’t contribute more.

Automate your savings

If saving is a challenge, automating the process can make it easier. If the money isn’t in your checking account (or your hands), you can’t spend it. Look at how much you can save each month and set up an automatic withdrawal to move that money from your checking account to your savings high-yield savings account.

Choose a day that works for you — that might be the day after you get paid or the week after your rent or mortgage payment is due. Even if you can only save $20 a month, putting your savings on autopilot makes it easier to save.

Let’s say you opened up that high-yield savings account and got it to $500. Then, you automate moving $20 a month to savings. After two years, your savings would hit $1,042.33. You’d no longer be one of the 1 in 4 Americans who don’t have $1,000 in savings!

Find ways to increase your income

For many of us, saving is hard, not because we lack willpower or because we spend too much on items we don’t need. Saving is tricky because sometimes, at the end of the month, there’s just nothing left.

If you’ve already cut your streaming services, switched phone carriers, and followed all the other well-meaning budgeting advice, then the solution is to earn more money. Which, of course, is easier said than done.

How you increase your income will depend on your lifestyle, skills, and how much you need to earn. If you have kids, getting a part-time job might not be possible. Passive sources of income, like doing surveys, aren’t always super passive but can help you earn a bit extra.

Secret shopping apps like Field Agent or gig work through Uber may fit into your schedule. Other options might include pet sitting, offering after-school care for neighborhood kids, cleaning houses, or offering tutoring services.

The important thing to remember is that you’re not alone. Taking small, steady steps will help you reach your goals.

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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 Uber Technologies. The Motley Fool has a disclosure policy.

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Very good credit scores are good enough to qualify for the best rates. Read on to find out how to get one. [[{“value”:”

Many years ago, I was shopping at a furniture store, trying to buy a couch on credit. But a few years of poor budgeting and being late on credit card payments put my credit in rough shape.

The furniture store didn’t extend me credit to buy the couch, and I realized that day how important a good credit score can be.

But how good does your credit score need to be to get the best rates for big purchases like mortgages and car loans? While the popular FICO scoring system ranges from 300 to 850, a score of 760 or higher will usually get you the best rates.

Perfection isn’t the goal

After I was turned down for credit at the furniture store, I worked hard to build my credit score higher, making payments on time and using only a little of my available credit. The effort paid off, and I was able to raise my score over time, and it’s now 783.

For a while, I thought I needed the highest score possible to get the best interest rates, but most lenders are looking for a score in the “very good” range of 740 or higher, and 760 puts you firmly in this category.

Just 1% of borrowers with “very good” credit are likely to become seriously delinquent on an account. And late payments appear on just 22% of credit reports for people with scores of 760 or higher.

How a credit score of 760 could affect your payments

So how much can you save with a score of 760? Bank of America gives an example of two mortgage borrowers, one with a score between 620 to 639 and the other with a score between 760 to 850.

Here’s the difference in monthly payments and the total amount paid over a 30-year loan for $300,000 for two different mortgage rates.

This example shows that having a score of 760 or higher could save you $323 every month in mortgage payments and $116,354 over 30 years!

If you’re taking out a loan to buy a car, a score of 760 or higher could also save you money. Experian says if you buy a $30,000 car with a five-year loan and have very good credit, you could get a 7% interest rate, compared to someone with just a score of 660 to 689 — which might mean a rate of 9.9%.

With the 760 score, you’d save $40 per month on your payment and up to $2,418 over five years!

How to improve your credit score

It could take some time to reach a credit score of 760 or higher, but I’m proof that it’s certainly possible. Here are the best ways to improve your score:

Reduce your debt: Lowering your credit utilization will improve your credit score and show lenders that you’re responsible with the credit you have. Ideally, you should use less than 30% of your available credit limit.Pay your bills on time: Late payments are one of the worst things for your score. Make sure to pay your bills in full and on time. This accounts for 35% of your FICO® Score.Keep current accounts open, but don’t open new ones: The length of your credit history accounts for 15% of your score, which means you should leave your oldest credit card accounts open. But don’t open new ones, which can lower your score.

Once I reached a credit score I was happy with, I mostly stopped thinking about it. However, I make sure to keep my credit utilization low and always pay my bills on time so I can maintain my score.

To get started on improving your score, get your credit reports (for free) from all three consumer credit bureaus at AnnualCreditReport.com. You’ll see what lenders see when they look at your credit, and it’ll give you insight into what areas of your credit you need to improve. You can also scan for errors on your credit reports and dispute them — having errors removed can boost your credit score.

If I can improve my score, you can, too; it just takes some time and effort!

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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.Bank of America is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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Right now, an inverted yield curve means you can buy a short-term CD and earn a better rate than on a long-term CD. Learn why that’s such a great opportunity. [[{“value”:”

Certificates of deposit have long been seen as safe investments. That’s not surprising. They come with FDIC insurance and allow you to lock in at your starting rate, so you’ll always know exactly how much your money will earn.

Right now, though, CDs are doing something that’s very unusual. This phenomenon could present a once-in-a-generation opportunity to earn a really great return at an even lower risk than normal. Here’s why.

It’s been decades since CDs have done this

For the last 35 years, one key fact has been true of CDs. If you wanted to get the best possible return on investment, you had to buy a CD with a longer term. For example, 5-year CDs had higher yields than 6-month CDs.

You took on more risk by buying these 5-year CDs, as you had to agree not to access your money for the entire duration and to pay a penalty if you did.

So, you were risking not being able to use your funds if surprise costs came up. You also took the risk that you’d be stuck in a CD for a long time at a low rate if interest rates went up shortly after you bought it.

Something changed in May of 2023, though. For the first time since 1989, 6-month CDs suddenly started offering higher yields than 5-year CDs. The yield curve flipped, and you could now get a better return on investment (ROI) if you tied up your money for a short time rather than for a long time.

Why is this such a great opportunity for investors?

With short-term CDs now offering a better ROI than long-term CDs for the first time in decades, investors have a chance to do something unprecedented.

You can now agree to tie up your money for just a few short months and earn an ROI upward of 5.00%. That’s a really great rate when you are taking on almost no risk. You’ll have your cash back very quickly in the event that you find you need the funds or in the event that interest rates continue to increase.

This is an unusual phenomenon, and it’s occurring because rates skyrocketed during the COVID-19 pandemic — but the Federal Reserve has signaled it will lower the benchmark interest rate as soon as inflation slows. This could be as early as September. Banks are offering competitive yields because rates are high now, but don’t want to offer them for long since it’s so clear rates will fall soon.

With this once-in-a-generation opportunity available now but likely to disappear once the Fed begins rate cuts, it’s worth putting some money into a 6-month CD if you won’t need it for that period of time. You can earn upward of 5.00% on your investment and have your money back (plus interest!) before you know it.

If you don’t act now, you may not get this chance for another couple of decades or so if past history is predictive. You could regret missing your chance to earn some easy money.

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.

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Costco shoppers are a little bit more enthusiastic than most, but what really makes them love their stores? Find out here. [[{“value”:”

We write about Costco a lot around here, but it’s for good reason. People really love the place, and they really like it when we tell them all the good stuff they can find there. I’m not at all saying that Costco isn’t cool, but I’m hardly the superfan that some people seem to be.

After all, there are social media pages dedicated to Costco finds, and some people who will shop nowhere else. These people are really into Costco. Here are a few reasons why that might be.

1. Costco is a daily treasure hunt

What you find at Costco is often surprising and regularly such a significant deal that it merits sharing. There are Facebook groups dedicated to new items at particular Costco locations, including my own in Springfield, Missouri. I happen to know the fella who runs it, and he’s a very dedicated Costco shopper.

So many people love to treat Costco like a treasure hunt that Costco itself now has a link on its website called “Treasure Hunt” that can take you to some of the very best that Costco Online has to offer. For example, right now, the Epson EcoTank ET-3850 Special Edition printer is on sale for $278.99, which is $100 off its regular price, through Sept. 1.

2. Bargains on tires and gasoline

Pretty much everyone knows that Costco gas is usually the cheapest around — that’s why they line up around the building to get some of that liquid gold. But the store also has great deals on really nice tires, including free installation and free warranty services.

You might not be able to buy the cheapest tires in the world at Costco, but the tires you get will be a huge value for what they are.

3. Great prices on things that have literally made me go, “Ooh…”

I was just surfing the Costco website and I saw something that literally made me say, out loud, to literally no one, “Ooh, I’ve been wanting one of those…” It was an outdoor blanket with a hood for $29.99 — don’t shame me, it gets cold here in the winter.

I’d like to say this was an isolated incident, but since I started working for The Ascent and covering Costco, it has been happening a lot. There was also the “Sorry I Bet on Baseball” baseball signed by Pete Rose that I thought might make a very expensive and potentially hilarious gift for my brother for Christmas, about 20 different kinds of sheds, and the Bissell CrossWave wet/dry vacuum, which is currently offered to members for just $249.99.

4. Basically the entire pharmacy

If you’re a pharmacy frequenter like myself, you already know what kinds of amazing deals you can get on bulk over-the-counter meds and prescription drugs at the Costco pharmacy. It also offers pet meds and immunizations.

Check the online drug price finder for specific drug prices, or just approach the local pharmacist with your prescription list for the best prices in your area, even if you don’t have insurance. I’ve literally saved thousands of dollars in my time as a Costco member just in the pharmacy alone, and often I don’t even step foot inside the building to do so.

5. The Costco food court

I would be remiss to not include the infamous Costco hot dog on my list of reasons people are really into Costco. It’s a bargain, its price hasn’t gone up in eons, and after a long afternoon of shopping at Costco, you really deserve a little treat.

But that’s not the only thing you can get at the Costco food court. It also sells 18-inch pizzas for $10, freshly made gelato, and a smattering of sandwiches (that are less of a value, but still amazing, I’m sure).

Costco is the ultimate budget-friendly adventure

You know the main reason that people are really into Costco? It’s the ultimate budget-friendly adventure. I can go to the local supermarket every week, and I know exactly where the eggs are. I know that if I walk two aisles and turn left, I’ll find the refrigerated bagels. I know the store always sells the same 20 kinds of chips, and it gets a little old.

Markets aren’t supposed to be exciting. But what if shopping for food and other ordinary items could be an adventure? Well, Costco exists, and we are all better for it.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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Shopping for pet insurance can be exhausting, but Costco makes it easier with deep discounts for Figo. Read on to learn more about this collaboration. [[{“value”:”

While I was wading through the Costco website the other day, I noticed that the company has a partnership with Figo pet insurance, which helps members save even more money with their Costco membership.

Being the curious cat I am, I took a look. And what I found will astonish you. Here are some facts to know before you commit to buying pet insurance through Costco.

1. Costco members save 15% or more

Because Costco is always trying to find more ways to help us save, if you apply for Figo insurance through the Costco link on the website, you can save 15% or more, based on your membership type. Costco Gold Star and Business members save 15% on base Figo coverage; Executive members save 15% plus the $15 enrollment fee for Figo.

I tested this, just to make sure there wasn’t a catch. Even though my cat Gomez has his own insurance already through Spot, I’m using him as an example.

I built a policy similar to what he already has, with $5,000 in coverage, a $100 deductible, and 90% reimbursement, plus optional vet exam fee coverage and Wellness Plus, which covers some of his fees for his annual shots and other needs. Before the Costco discount, Figo estimated all of this to come to $38.52 per month; after, it was $35.21.

I’m just a Gold Star member, so I will also still pay the $15 enrollment fee, should I choose to enroll.

2. You can choose unlimited annual coverage

Most pet insurance plans will not offer you unlimited coverage. Trust me, I looked at 20 different plans before I chose the one I have now. They typically cap out around $10,000 — but not Figo. Figo offers an unlimited coverage tier, which will even work with a $100 deductible and 90% reimbursement.

My non-Costco application pegs it at about an additional $12.48 for a 1-year-old neutered male mixed breed cat, and about $10.62 for the unlimited upgrade with the Costco discount, when compared to the base $5,000 in coverage.

But unlimited coverage is a lot of coverage. I mean, sure, we’d all love to be able to do everything possible for our pets, but there is a line that we cannot cross, considering that most pet insurance is reimbursement-based. You aren’t going to be getting $100,000 worth of coverage in a year unless you have some very rich friends who will spot you the money until your insurance pays you back.

You’re better off asking your vet about pricing for the procedures you’re most concerned about and then doubling or tripling that amount. For me, the whole reason I got pet insurance for my feral goblin child was because he’s male and a cat, and I’ve heard some horror stories about urinary blockages. For that issue, $5,000 is more than enough coverage in my area, even at the emergency vet.

For Costco members, the difference between even the $10,000 coverage and unlimited is about $80 a year; the difference between $5,000 and unlimited is almost $120 per year.

3. Wellness packages may or may not be worth it

Figo, like many pet insurance plans, offers optional Wellness packages that cover yearly vaccines, bloodwork, microchipping, and so on. Sometimes it’s worth it and sometimes it’s not. It really depends on why you’re choosing wellness and what’s in the package you’re being offered.

Let’s look at the Figo Wellness Plus plan for Gomez, for example. It has a limit of $40 of coverage for wellness exams, $50 for vaccines, $45 for testing, including testing for worms, and $10 for deworming. It’s $16.50 per month.

So, if I know these are the only procedures he’ll need (there are other coverages with this package, like neutering, microchipping, and teeth cleaning), then I know I’m using $145 worth, but paying $198. For this to make any financial sense, we’ll need to use the full coverage. He’s already been neutered and microchipped, so we’re kinda out of luck there.

The Wellness Basic plan is just $9.50 per month, but Gomez will only use $80 worth of that coverage, so I’m still short at $114 per year for that particular plan.

With Figo, Wellness just doesn’t make financial sense for Gomez, and there’s no additional discount for Costco members regardless of which add-on package you choose.

Costco’s partnership with Figo can get you a deal on pet insurance

No matter what your budget, the deal Costco has made with Figo can save you money on pet insurance. But you have to really think about what kind of coverage you need and how you’ll use your plan.

If you’re simply looking to keep ahead of a serious, common problem like I am, you can probably do without the bells and whistles and save a little bit more while you’re at it.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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Unlock the secret to growing your business beyond hourly billing. Learn how to multiply your earnings and free up time. [[{“value”:”

According to the U.S. Chamber of Commerce, there are about 33 million businesses in the United States and 99.9% of them are small businesses. And, of those, the vast majority are one-person businesses.

Typically, solopreneurs bill by the hour. Lots of small businesses do the same — plumbing outfits, law firms, dentists, you name it. The problem with billing by the hour is that it limits how big your business (and bank account balance) can grow. There are only so many hours in a day and you only have two hands. Entrepreneurs have a maxim:

You will never get rich billing by the hour.

Let’s break it down: If your goal is to earn $300,000 next year, you’ll need to bring in $25,000 per month, or $6,250 a week. And let’s say you can bill for about six hours each day (which actually requires working at least eight hours). To hit $6,250 a week, you’d need to charge around $208 per hour.

But here’s the catch: Not everyone can charge $208 an hour. And even if you can, you probably had to work incredibly hard to get there. Is it possible? Yes. But for most small folks, it’s not sustainable.

Better options: Project-based billing and gig entrepreneurship

Consider these moves to grow your business.

Project billing (with help)

Switching to project-based billing can be a game-changer. Larger projects that require gig workers help often lead to bigger paydays, better work-life balance, and happier clients. Managing a few big projects is also easier than juggling numerous smaller, lower-paying jobs.

Financially, it’s smarter too. If you can complete a project faster than expected, the difference between the project fee and the time spent is pure profit.

And this is key: Project-based billing allows you to bring in extra help, and that’s where the magic happens. You can hire gig workers, pay them, say, $50 per hour, and charge your client $75 per hour for their services (all built into the project price). This creates two key benefits:

You earn $25 per hour for each contractor without lifting a finger.You work less but make more.

Now, that’s a sweet deal.

Become an entrepreneur

Successful entrepreneurs find ways to make money even when they’re not working. How? By having a team that earns money for them.

Take a law firm, for example. It operates like a legal pyramid scheme (and I say this as a former lawyer). Young associates are billed out at a lower hourly rate than the partners. This setup is beneficial for both clients, who pay less, and partners, who profit more (but maybe not for the overworked associates!).

Let’s do some math again: If a law firm bills out associates at $300 an hour but pays them the equivalent of $150 an hour, with $50 an hour in overhead, the firm makes $100 an hour in profit for every hour an associate works. Multiply that by 10 associates billing five hours a day, and the firm earns $5,000 in profit daily, $25,000 weekly, or $100,000 monthly. Over a year, those 10 associates generate more than $1 million in profits for the partnership.

Those associates are profit centers — just like your subcontractors can be.

The secret to small business riches

To truly elevate your small business, aim to become an entrepreneur in the fullest sense. Bid on larger projects and take on more than one at a time. Whether you bill by the hour or the project, the goal is the same: build a team of gig subcontractors who can generate income for you, even while you sleep.

By doing so, you multiply your earnings and free up your time, leading to exponential growth in your business and income.

That’s the secret: Become a rainmaker and let others do the work.

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.

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