Money Management

Are you considering freelancing on a full-time basis? Don’t ignore your finances. Here’s what you should do before taking your freelance business full-time. [[{“value”:”

Many workers transition into freelance work at some point in their careers. For some, it’s a way to increase their earnings while continuing to work a full-time job. For others, it’s a strategic decision after leaving a job that no longer meets their needs.

No matter how you get into freelancing, making well-thought-out financial decisions at every step of your journey is a must. Here’s my biggest money tips for freelancers exploring taking their business full-time.

Don’t jump in without a financial safety net

If you’re freelancing while working another job, I suggest not rushing to leave your full-time job. As you continue to scale your business and increase your client base, you may be tempted to give your two weeks’ notice as soon as possible. But it’s best to have a financial safety net to protect yourself.

One way to do this is to continue working full-time while growing your freelance business. This strategy will give you the added protection of a full-time paycheck, allowing you to cover your bills and everyday expenses while you learn and grow. Before transitioning to full-time freelance work, ensure you can cover all your living expenses with your freelance income alone.

If you’re ready to call it quits at your regular job, another solution may help you take your business full-time sooner: your emergency savings. Freelancers with a sizable emergency fund may feel more confident transitioning to a full-time freelance lifestyle because they have savings they can live on if necessary.

Here’s why it’s essential to consider your finances

Freelancing can be rewarding. You can benefit from a flexible schedule, control over what projects you do, and manage your earning potential. But outside influences can impact your work and your finances overnight. You may lose a big client. You may see a reduction in available projects. No matter the kind of work you do or your industry, you will experience slow times.

Having your finances in order can protect you. If you have an existing job elsewhere or money in savings, you can continue to pay your bills. But if you started freelancing full-time without a financial back-up plan, weathering these storms can be more challenging. If you’re new to freelancing and are considering making this a full-time career, please take my advice and plan financially.

Save up when things are going well

I’ve been a freelance writer for years and have experienced many ups and downs throughout my career. So I know what could go wrong, even when things feel safe and comfortable. That’s why I continue to prepare financially.

When work is plentiful, I like to set aside extra money in my savings account. Saving this cash feels less noticeable when I have a lot of projects keeping me busy.

By doing this, I feel more confident knowing that I’ll be able to take some time to restructure if something unexpected happens, like losing a well-paying client. I keep my money in a high-yield savings account to earn interest while it sits in the bank.

Want to get more financially prepared? You can open a small business bank account to keep your personal and freelance finances separate. Review our list of the best small business bank accounts to learn more about the top features of the banks on our list.

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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 a disclosure policy.

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If you’re stressed about moving expenses, Costco can help. See how much your Costco membership can save you on your next move. [[{“value”:”

Moving isn’t cheap. A local move, according to HomeAdvisor, is in the range of $878 to $2,554, while a cross-country move can cost $2,401 to $6,890. As someone who just recently moved across the country, I can tell you that the upper end of that range will be more accurate for most people.

Hiring professional movers is convenient and saves time, but self-moving is by far the cheaper route. Plus, Costco members who are moving themselves can get discounts on Budget rental trucks, which could save hundreds of dollars. If you’re a member (or need one more reason to join), here’s how Costco can help you save on your next move.

Get up to 25% off Budget truck rentals

It’s true: The Budget truck rental discount is one of Costco’s best-kept savings secrets.

Costco members save roughly 25% off the retail rate (time and mileage) for a Budget truck rental, plus get 24/7 roadside assistance and one free additional driver. Depending on the size of your truck, this could save you hundreds of dollars.

Truthfully, this is an incredible deal. To give you an idea of how much you could save, I ran some numbers for a hypothetical move from Nashville to Albuquerque (a distance of about 1,220 miles) starting on Aug. 26, 2024. Here’s what you’d pay through Costco vs. booking the truck directly through Budget.

This is the price of the truck only and doesn’t include add-ons (like hand trucks and furniture pads) or taxes. Remember, too, that Costco members can get an additional driver for free, while non-members who book directly through Budget will have to pay a per-day fee.

If you do the math, it’s not a clean 25% off between the two. That’s because the Costco discount is applied to the list price of the truck. Since Budget Truck is currently offering 10% off its trucks, the prices above don’t reflect the exact list price. Still, even with the 10% added in, getting the Costco discount would leave more money in your checking account.

Moving supplies are cheap, but other alternatives exist

On Costco.com, you can buy moving boxes and heavy-duty shipping tape. The moving boxes are the classic Bankers Boxes and come as a set of eight small boxes and 12 medium-sized ones. The price is currently $49.99 (after a $13 discount), which beats out Amazon ($64.99) and Walmart ($53.91) for the same set.

To be sure, there are cheaper ways to acquire moving boxes. In fact, you might even get some from Costco for free. Costco goes through plenty of boxes throughout the day and will sometimes offer them to customers to help pack up their goods.

If your Costco is willing to help out, it might even set aside boxes for you instead of recycling them. Call ahead in the morning and see if your local store is willing to save boxes throughout the day. Ask specifically for produce boxes — those that held bananas or apples work best — as these are sturdier than others and stack neatly like moving boxes. The boxes might not all be in the best condition, but many will work just fine.

It pays to check Costco first before you start planning your next move. Compare the price of its Budget truck rental discount with other moving companies to see if it really offers you the best rate. And if you do end up buying moving boxes at Costco, be sure you use the right Costco credit card, as you don’t want to leave any cash back on the table.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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. The Motley Fool has positions in and recommends Amazon, Apple, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

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Looking for a reliable car you can drive until it dies? Here are four cars, both hybrid and gas-powered, that are likely to make it to 200,000 miles. [[{“value”:”

For many people, owning a car isn’t just a financial decision — it’s a rite of passage. But the financial costs of owning a car can’t be ignored. According to Newsweek, Americans spend nearly 20% of their monthly income on their vehicles.

Between insurance, interest rates, and gas prices, buying a car is a big financial decision. While you can reduce the cost of car ownership by paying with cash and shopping around for the best car insurance plan, your best bet is to buy a reliable car.

If you buy the right car and maintain it, you can likely drive it until the wheels fall off. (Hopefully, not while you’re actually driving it.) But which cars are the most reliable? Consumer Reports surveyed subscribers and asked if their cars experienced 20 common problems in the last year. The survey included more than 330,000 cars made between 2000 and 2024. Let’s look at the top four most reliable cars.

1. Toyota 4Runner

The Toyota 4Runner is known for its off-road capabilities and durability, making it a popular choice for folks who love the outdoors. The mid-size SUV offers more space than a sedan, powerful engine options, and advanced 4-wheel drive that is ideal for off-roading or driving the kids to school in the snow.

The price of a new 4Runner will run you between $40,000 and $50,000, but there are also plenty of used options available near me for under $20,000.

2. Toyota Camry Hybrid

While I wasn’t surprised to see a Camry on the most reliable car list, I was surprised to find the hybrid version. The first generation of the Camry Hybrid was released in 2007, so Toyota has had plenty of time to work out any issues. The hybrid Camry body is similar to the standard Camry, with a simple frame, four doors, and no fancy lines. Some models come with added features like a moonroof, spoilers, and sport mesh grilles.

What the hybrid lacks in excitement, though, it makes up for in reliability and gas mileage. The average Camry Hybrid gets between 40 and 50 miles per gallon, which means you’ll spend far less at the gas station. New Camry Hybrids will set you back around $30,000, while a used model averages around $20,000.

3. Toyota Camry

Ah, the reliable Toyota Camry. This car has been a staple on “drive it until it dies” lists for as long as I can remember. This midsize sedan has been around since the 1980s and can often last 200,000-plus miles with regular maintenance. The car features four full-sized doors, a large trunk, and plenty of legroom.

The price of a Camry can vary dramatically by model and year, with used cars averaging around $10,000 or less. While a Camry won’t turn heads, it will be kind to your wallet.

4. Toyota RAV4 Prime

The RAV4 Prime is a hybrid SUV known for balancing performance and efficiency. By combining an electric motor and a gasoline engine, it offers an eco-friendly but powerful driving experience. All models offer 4-wheel drive (hence the name) and some models come with added features like a sunroof, lane departure alerts, and touch screen navigation.

Cost-wise, however, this is one of the most expensive on our list. Since the Prime model was first released in 2021, most of the cars are newer. The RAV4 Prime will set you back around $43,000 new, while used versions start around $38,000.

Reduce car costs even more

Buying a reliable car that will last can save you thousands of dollars in repair costs over the years. Another way to reduce the cost of owning a car is to choose the most affordable car insurance. Just be careful not to sacrifice insurance coverage for cost or you may find yourself making car payments on a car you can’t drive after an accident.

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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 a disclosure policy.

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A hybrid car might cost more to purchase than a vehicle with a traditional gas engine. But read on to see how a hybrid might make financial sense in the long run. [[{“value”:”

When my husband and I bought our Toyota Prius in 2007, we were among the first of our friends to own a hybrid vehicle. And I’ll admit that I was iffy about that at first.

After all, I knew little about cars in general and feared that the newfangled technology of a hybrid would result in a series of expensive repairs. (Thankfully, it didn’t.) The car itself also took some getting used to — such as, when you’d stop at a traffic light and your car would sound like it was shutting down on you.

Now you should know that generally speaking, it costs more to buy a hybrid car than a vehicle with a traditional gas engine. Edmunds says that hybrid owners could spend as much as 20% more than if they were to buy a traditional vehicle. But despite the higher upfront cost, owning a hybrid car has the potential to help you save money — if you do these three things.

1. Drive your car efficiently

When you buy a hybrid, the manufacturer will tell you how many miles per gallon you have the potential to get. But that assumes optimal driving conditions, and optimal handling of your vehicle.

If you speed, you’re not going to enjoy the same fuel efficiency as driving at a more moderate pace. So if you truly want to save on gas (which is kind of the point of buying a hybrid in the first place), make a point to avoid rapid acceleration and speeding.

2. Keep up with regular maintenance

Maintaining your hybrid could be your ticket to having it perform its best. This means not only keeping up with oil changes, but making sure your tires are in good shape. If your tire pressure is low, it could lead to less fuel efficiency.

One strategy you may want to employ is buying your tires at Costco. Your purchase essentially comes with lifetime maintenance, which includes benefits like free rotations and pressure checks.

3. Shop around for auto insurance

Because hybrid vehicles cost more than traditional gas engine vehicles, the cost to insure them has the potential to be higher. But drivers who shop around for auto insurance can put themselves in a better position to spend less.

It’s a good idea to compare quotes from multiple insurance companies when putting auto coverage in place. Bundling home and auto insurance can also be a money-saver, though not always — so while it’s a good thing to look into it, drivers shouldn’t limit themselves to using the same insurer for both types of policy, either.

Ultimately, a hybrid car has the potential to not only save you money, but make your life more convenient. The less often you have to gas up your car, the more time you get back in your schedule. So it pays to look at hybrids if you’re ready for a new car and see if you find one that meets your needs and budget.

And if you’re on the fence, I’ll leave you with this: Our 2007 Prius wound up serving us well for 17 years before we upgraded to a larger vehicle. If you maintain your car well, your hybrid may end up lasting just as long, if not longer.

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!

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Refinancing activity recently jumped to a two-year high. Here’s how to tell if it’s right for you. [[{“value”:”

Mortgage refinancing activity recently jumped to a two-year high, according to data from the Mortgage Bankers Association. While demand for refinancing is still well below where it was in 2020 and 2021, it is 37% higher than it was a year ago, indicating that many people are finding it worthwhile to refinance their home loans.

With that in mind, here’s a quick guide to determining whether refinancing might be a smart option for you, another option you might want to consider, and whether you should hold off until rates fall even further.

Is refinancing right for you?

Before we get into the basic mathematics, it’s important to mention that there are two types of mortgage refinancing — rate-and-term refinancing and cash-out refinancing.

Rate-and-term refinancing

With rate-and-term financing, the math is rather easy. Simply take the cost of refinancing and divide it by the monthly payment reduction you’ll get in order to calculate your break-even point. For example, if it costs $5,000 in origination fees and closing costs to refinance and you’ll save $200 per month, this shows that you’ll break even in 25 months. If you plan to stay in the home significantly longer than that, it could be worth refinancing.

The average 30-year mortgage rate is 6.87% as of the latest data, and many recent home buyers have mortgage rates in the 7%-8% range. So it’s fair to say that refinancing is starting to make sense for many people who bought homes in the past couple of years.

Cash-out refinancing

A cash-out refinancing means you’re taking some equity out of your home and getting a mortgage with a larger balance. My general rule of thumb is that the interest rate you can get on a refinancing needs to be at least a half percentage point lower than you currently have. It is rarely a good idea to do a cash-out refinancing with a higher interest rate than your current mortgage. And that’s because there could be a better option, as I’ll discuss in the next section.

Refinancing vs. HELOC

For many people reading this, the reality is that refinancing doesn’t make sense. Millions of homeowners have mortgage rates below 4%, or even 3%, and it likely won’t make good financial sense to completely refinance your loan anytime soon.

In situations like this, a home equity line of credit, or HELOC could be a better way to tap into your home equity. To be sure, HELOC interest rates are significantly higher than refinancing mortgage rates. For research, I filled out a HELOC pre-approval form as I’m writing this, and my best rate offer was about 9% — and variable.

However, think of it this way. Say you need to borrow $30,000 to fund a large purchase and that you want to use your home equity to do it. You owe $400,000 on your home at a 3% interest rate. Borrowing $30,000 at 9%-10% and leaving the $400,000 primary mortgage alone could make a lot of sense.

The bottom line is that HELOC interest rates are likely to be significantly higher than the rates you’ll get for simply refinancing your mortgage. But because you can get a HELOC while still keeping your existing mortgage, and because HELOC rates tend to be lower than unsecured personal loans, they can be a solid option to finance a large expense if your mortgage rate is too low for refinancing to make sense.

What if rates continue to fall?

Even if the math makes sense, one of the most common questions I hear from homeowners thinking about refinancing is “what if I refinance and mortgage rates continue to fall?”

The short answer is that it’s impossible to predict what mortgage rates will do over any given time period. The unexpected rate spike we saw earlier this year is a perfect example of this. So, don’t base your financial decisions on what interest rates might do.

Also, it’s important to realize that you can refinance more than once. I know several people who refinanced their mortgages in 2020 when rates started to fall, and then did it again in 2021 when sub-3% mortgage rates appeared. The bottom line is that the important question is whether refinancing makes sense for you now.

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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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Did you know about this exciting way to get special savings at Costco? See why Costco Next could be the best-kept secret in shopping — and how you can save! [[{“value”:”

Sometimes the best deals for Costco members don’t come directly from Costco. Instead, Costco has partnerships with other brands that can give you special savings on a wide range of products.

Most people may not know about one of the best Costco perks: Costco Next. This is a special Costco partnership where you can buy products at exclusive discounts from partner brands. But Costco Next deals aren’t found at the Costco warehouse or on Costco.com — instead, you need to use the special Costco Next portal.

Let’s look at how Costco Next works and why these deals are such a special opportunity for Costco members.

What is Costco Next?

Costco Next is a Costco perk that lets you buy a special selection of products at big discounts from Costco’s partner brands. Costco Next partners offer a limited range of premium products at big savings. The companies on Costco Next are some of Costco’s best suppliers, but instead of buying their products from Costco at a warehouse or Costco.com, you can buy these companies’ products directly from the Costco suppliers.

Costco connects you with these deals via a special website at costconext.com. Think of Costco Next as another members-only perk. It’s a way to get access to special products from high-end brands, with exclusive member discounts.

How Costco Next works

It’s easy for Costco members to get access to special deals on Costco Next. Here’s how it works:

Go to costconext.comClick “Sign in”Sign in to the website with your Costco.com login or your Costco membership numberClick the brand that you want to seeStart shopping!

Once you’ve signed in with a Costco membership number or Costco.com login, the Costco Next website will redirect you to a transfer website for each brand that you click. You’re not shopping on Costco’s website, but you’re shopping with Costco membership privileges.

What you can buy on Costco Next

Costco Next offers a wide range of products in the style of Costco treasure hunts. Here are a few examples of top brands on Costco Next:

Anker: Charging products and power stationsAnker Solix: Sustainable power solutionsBodyglove: Watersports gearCuckoo: Luxury kitchen and home appliancesDearfoams: Slippers and footwearHotel Doggy: Pet products, including dog parkas, vests, and sweatersKlymit: Camping gearMOST, Inc.: K-beauty skincare and cosmetics from KoreaOVE Decors: Bathroom, lighting, and home decorPriority Bicycles: BicyclesTravelpro: LuggageViking: Cookware, cutlery, and bakeware

How much can you save with Costco Next?

Exact discounts will vary based on the brand and product. But previous research from The Motley Fool Ascent has found that Costco Next deals typically deliver savings of 13%-25% compared to the manufacturer’s regular website prices.

Some products also offer special limited-time Costco Next savings. For example, as of this writing, High Tech Pet pet doors brand was advertising additional savings of 30% off (beyond the usual Costco Next savings). Whether it’s a big-ticket purchase like new appliances, or smaller-dollar items like pet products or skincare, Costco Next can improve your life while going easy on your credit card.

Bottom line

If you’re in the market for a new bicycle, appliances, pet products, or other high-end items, Costco Next is worth a look. This is another fun members-only perk to maximize your Costco deals beyond the warehouse. Costco Next is like an online-only Costco treasure hunt where you can get affordable luxuries and surprising finds, directly from favorite Costco partner brands. Learn more at costconext.com.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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