Money Management

Is the clock ticking down until your next international trip? Don’t get caught with an outdated passport — see if you can renew your U.S. passport online. [[{“value”:”

If you’re a frequent international traveler, or even if you haven’t left the U.S. in a few years but would like to take another vacation abroad sometime soon, you need to know about how to renew a U.S. passport. If you don’t have an up-to-date, valid passport, you can be denied entry to other countries or even stopped from boarding the plane to leave America.

Good news: Renewing a passport just got easier for Americans. Some U.S. passport holders can now renew online.

Let’s look at the latest details to see if you can renew your U.S. passport online, and what this might mean for your next international vacation.

Why you need to renew your passport

Passports for adults (age 16 and over) are good for 10 years, and passports for children (age 15 and younger) expire after five years. Want to keep globetrotting? Want to keep enjoying the thrills of international travel without having to cancel your trip or get detained by border police? Make a plan to renew your passport.

And don’t wait for the last minute — some other countries require you to have a passport that is valid for six months beyond the dates of your trip. This can make it even more urgent to renew your passport well in advance of your next international trip.

If it’s been a few years since your last international vacation, you might want to keep an eye on the expiration date for your passport — and check out this new online passport renewal system.

How to renew U.S. passports online: Beta release

As of June 2024, the U.S. State Department is doing a beta release of a new online system for updating passports. But not every passport holder can use this new online system, and only a certain number of passports can be renewed online per day because of limited availability of the beta release.

The full requirements for who is eligible to use the new online passport renewal system are somewhat complicated. But here are a few highlights:

For now, as of July 5, 2024, the online renewal service is only open to people ages 25 and older who are renewing passports that were (or are) valid for 10 years.You can only renew online if you are renewing a passport that was issued between 2009 and 2015, or that was issued more than nine years but less than 15 years from the date of your passport renewal application.Don’t use the online service if you’re traveling internationally within eight weeks. Such a short time frame requires expedited service, and the online system only provides “routine service,” which likely won’t be fast enough for your travel dates. If you need your new passport sooner, consider renewing by mail or in-person.You can’t use the online service to make any changes to the name, gender, date of birth, or place of birth listed on your passport.You must live in the United States.You must upload a digital passport photo.You must be able to pay for your passport renewal fee with a credit card or debit card.

If you’re not eligible for the new online passport renewal system or just don’t want to wait for an open spot in the beta release, don’t worry — you can renew your passport by mail or in-person at a passport agency instead.

Why online passport renewal is good news

Being able to get on a plane and cross international borders is one of the most exciting parts of travel. Having a valid U.S. passport in your pocket gives you the freedom to see other countries and experience other cultures. It’s worth paying the fees to keep your passport updated so you don’t have to worry about trip delays.

Until now, U.S. passports could only be renewed by mail or in-person at passport agencies and government offices. Being able to use online tools to renew passports may make the process easier and faster with less paperwork and less time spent checking the mailbox.

Every experienced international traveler is going to be happy to hear about this new online system for renewing passports — and will be eager to see if their passport qualifies for online renewal.

Bottom line

Before you plan your next international trip, make sure your passport is up to date. If you’re due to renew your passport in 2024, you might qualify to renew it online. Just like the best travel rewards credit cards can help you have a more comfortable trip, online passport renewal may give you an easier, more streamlined experience getting a new passport for global travels.

Read the full details and online passport renewal requirements at the U.S. State Department website.

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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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Many people are getting antsy about locking down a high-yield CD before the Fed cuts interest rates. See why savings accounts could still be a better choice. [[{“value”:”

The latest economic data seem to suggest that inflation is slowing down — and so is the job market. That means the Fed might be on course to cut interest rates soon. No one knows for sure when (or if) the Fed will cut interest rates, but if there is a rate cut of (for example) 0.25% in September 2024, that means right now could be a perfect time to open a high-yield 1-year CD.

The best CDs are currently paying 5.00% APY (and higher), and CD rates are fixed for the length of the term. So if the Fed cuts interest rates, and you lock in a higher APY right now, you could keep earning 5.00% APY on that CD for the next 12 months, while bank savings accounts (likely) would decrease their APYs along with the Fed’s moves.

But I’m not convinced that CDs are the best place to keep my cash, even if the Fed cuts interest rates in 2024 and 2025. Here are a few reasons why.

I don’t want to risk early withdrawal penalties on a CD

CDs give you fixed APYs for the length of the term — but they also punish you with early withdrawal penalties if you need to take your money out. I don’t believe that a slightly higher APY on a CD, especially if it’s only 0.25% higher than the best savings accounts, is worth taking the risk of getting charged a penalty for taking out my money.

The best savings accounts are more liquid than a CD. With savings accounts, you can take your cash out anytime, for any reason (as long as you don’t exceed certain monthly limits on the number of withdrawals). And you can still earn APYs (for now) of 5.00% or more with savings accounts.

CDs put you through hassle and take away some (or all) of your earned interest if you need to withdraw cash. You might as well just keep your money in a savings account, even if the APY ends up being slightly less than a CD.

Savings account APYs are still competitive with CDs

Right now, the best savings accounts are paying about the same APYs as the best 1-year CDs. This situation would likely change if the Fed cuts interest rates — savings account rates can go down at any time, and often track the latest changes from the Fed.

But even if the Fed cuts interest rates tomorrow, and keeps cutting by another 1% during 2025, that still doesn’t mean opening a 1-year CD or longer-term CD is the best move to make today. Unless you have lots of cash (like $100,000 or more), you’re not likely to gain enough extra yield by gaming the market or trying to out-think the Fed on interest rates.

How much you’d earn with the best 1-year CD vs. savings accounts after rate cuts

Think of it this way: if you open a $10,000 1-year CD in July 2024 at 5.00% APY, yes, you are guaranteed to earn $500 in the next year before your CD matures. If the Fed cuts interest rates by 1.25% by July 2025 (which is not guaranteed), your CD will keep earning that full $500 of yield.

But how much less would you have earned with one of the best savings accounts instead? Let’s make the wild assumption that the Fed cuts rates by 1.25% all at once (this is extremely unlikely to happen, ever). Let’s assume that the best savings account APYs then go from 5.00% to about 3.75%.

Here’s how much you’d earn in one year with a few different amounts of savings in a 3.75% APY savings account, compared to a 5.00% APY 1-year CD:

According to 2023 research by The Motley Fool Ascent, the typical American savings account has $1,200 in it — so if you put that much into a CD, even if the Fed cuts interest rates aggressively in the next 12 months, you’d only get an extra $15 (at most). If you have more money, like $25,000, your extra CD earnings can be a bit more substantial — but still less than $30 per month. Is that worth locking up your money and having to pay early withdrawal penalties if your plans change? I say no.

And keep in mind: we’re making some wild assumptions here about how fast the Fed would cut interest rates and how rapidly the best savings account APYs would go down in response. The difference in earnings in real life would likely be smaller — because the best savings accounts would keep earning higher APYs for a while longer as the Fed made a series of 0.25% rate cuts.

Bottom line

Unless you have massive amounts of cash to put into a CD, the freedom and flexibility you get from a savings account or money market account will likely outweigh the extra earnings you’d get from locking in a higher APY on a CD. Even if the Fed cuts interest rates soon, you’re not likely to make enough extra yield from opening a 1-year CD today compared to what you’d get in the next year from the best savings accounts.

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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 Sam’s Club membership can help you save money when you shop. You can score great deals on items that cost $50 or less. Here are a few deals to consider. [[{“value”:”

Joining a warehouse club like Sam’s Club can be an excellent financial move. While you must pay an annual membership fee to shop here, you can score members-exclusive deals when stocking up on everyday essentials. The best part is you don’t have to overspend to get a great deal. I’ll share a few fantastic Sam’s Club finds that you can buy for under $50 each.

1. Tramontina Cast Iron 7-quart Covered Dutch Oven: $49.98

If you want to invest in a cast iron Dutch oven but want to avoid paying Le Creuset prices, Sam’s Club can help you save money. The retailer is selling a Tramontina seven-quart covered Dutch oven for $49.98. It’s cast iron, oven-safe for temperatures up to 450 degrees Fahrenheit, and available in multiple colors. You can feel confident buying this kitchen essential because it has excellent customer reviews.

2. ION Audio Aquaboom X Floating Bluetooth Speaker: $49.91

If you like listening to music, having a quality speaker can make a big difference. Sam’s Club sells the ION Audio Aquaboom X Floating Bluetooth Speaker for $49.91. You can use this Bluetooth speaker indoors or outdoors, but it’s especially great if you hang out by the water. It’s waterproof, sandproof, and it floats. This speaker lights up and offers up to 10 hours of battery life. It’s sold at a great price and has good reviews, so don’t ignore this deal.

3. Member’s Mark Hotel Premier 6-Piece Towel Set: $29.98

Whether you want to change the look and feel of your bathroom or upgrade your worn-out towels, you can find what you need at your local Sam’s Club. The retailer sells its Member’s Mark Hotel Premier Six-Piece Towel Set for $29.98.

This well-rated set comes in multiple colors and includes two bath towels, two hand towels, and two washcloths. Reviewers note that this towel set provides great value and love how soft and durable the towels are. Talk about a steal of a deal.

4. Clinique Take the Day Off Cleansing Balm: $26.98

Sam’s Club is a great place to shop for beauty and skincare products if you’re ready to improve your skincare routine. One deal you don’t want to ignore is the Clinique Take the Day Off Cleansing Balm. You can get a 3.8-ounce container of it at Sam’s Club for $26.98.

It removes sunscreen and makeup with ease while leaving your skin feeling moisturized. The reviews are great, and other retailers like Sephora sell this find for $41.00 — so don’t miss out on the savings that are exclusive to Sam’s Club members.

Every dollar you save adds up

These are just a sampling of the fantastic finds you can buy at Sam’s Club for under $50. As you shop, look for opportunities to save money. Every dollar you save adds up and is a win for your checking account balance.

You can also benefit by earning rewards on your spending. You can use one of the best credit cards to earn rewards when you swipe your card for purchases like this. Review our list of the best cash back credit cards to learn how to earn cash back at Sam’s Club and other retailers.

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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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Buying a house comes with lots of steps. Here’s one this new homeowner absolutely doesn’t regret. [[{“value”:”

I’m writing this article from my new home office, in the house I just bought and moved into. Buying a home in 2024, amid higher mortgage rates than we’ve seen in several years and with a stubbornly low housing inventory (just 3.7 months’ supply in May 2024, according to the National Association of Realtors) sure wasn’t easy.

But there’s one move that I absolutely credit this success to — and if you can also do it before you start looking for a house to buy, you won’t regret it. Save as much money as you can before starting the process — here’s why.

Save, save, and save some more

I started saving for a home in late 2022, and my original savings goal was $50,000. I managed to reach the target several months before I started looking for a home to buy in early 2024, but I didn’t stop saving at that point.

Instead, I kept adding money to my high-yield savings account every week, knowing that even if I didn’t end up needing extra for the house purchase itself (I did, in fact — more on that below), that extra money would come in handy in other ways.

I was going to have to pay for a home appraisal, inspection, movers, and other bits and bobs along the way, and I knew that having the cash to cover that would result in a lot less stress for me.

I also wanted a solid emergency fund, because having emergency savings is even more crucial when you’re a homeowner. Anything could break at any time, and it’s on you to pay for repairs or replacements. I’m happy to report that thanks to my diligent saving, I have a real six-month emergency fund for the first time in my life — which makes me feel a lot better about being a homeowner.

What can more cash in the bank do for you?

I can’t come up with any situation in which you might regret having more money saved for an expensive endeavor. And since buying a home is likely the most expensive purchase the average person will ever make, the more you can save ahead of time, the better. Ultimately, having as much saved as possible gives you the gift of flexibility.

For me, I used that flexibility to buy a home that was move-in ready. After years of living in rentals with varying degrees of needed work, I wanted to feel as if the house I bought was actually updated and livable.

But once I got my mortgage pre-approval, hired a real estate agent, and started searching for a home, I discovered that my original estimate of how much I’d be spending for a house in such condition was less than it should have been. Thankfully, I was still saving money at this point, and when I found a place I wanted to buy, I felt comfortable making an offer at the top of my price range.

Extra saved cash can give you flexibility in another way, too. If you’re less opposed to buying a fixer-upper home than I was, you’ll have negotiating power with a seller. Let’s say you’re interested in a house but it needs a new roof. If you’ve got the money, you might be able to get a lower price from the seller in exchange for paying for that new roof out of your extra funds.

How else can you get ready to buy a house?

You already know that buying (and owning) a house is expensive, but other than trying to save as much as you can ahead of time, here are a few other areas to focus on in the lead up to making a successful offer on a home:

Check out your credit score: Your credit score directly influences the mortgage rate you’ll get, so digging into it ahead of time is crucial. You can likely view yours for free via an existing credit card or bank account — just be sure it’s your FICO® Score you’re seeing, as it’s used by the majority of lenders. A FICO® Score of 620 or better is generally required for a conventional loan, but the higher your score, the more you stand to save.Pay down debt: If you have high-interest debt, it’s worth trying to get rid of it ahead of seriously looking into buying a home. And bonus — paying off your credit cards will improve your credit score.Shop around for a mortgage: Different mortgage lenders have different rates and also different mortgage programs you could qualify for based on income or where you live. So aim to get pre-approvals from a small handful of lenders to see how much buying a home might cost you. As of this writing, the average mortgage rate for a 30-year fixed loan is 6.95%, per Freddie Mac — but you could do better than this with the right lender.

Becoming a homeowner was a huge process with lots of steps along the way. I’m glad I gave myself lots of runway and time to save as much money as I could before taking the plunge — do yourself the same favor if you can.

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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 hoping to retire, you need adequate savings and a plan for long-term care. Learn what retirees wish they’d done differently. [[{“value”:”

When I’m planning my personal goals, I often consider how I might look back on a decision in the future. For example, I took my family on a month-long road trip several years ago because I wanted to try living a different lifestyle for a short time.

I wouldn’t have regretted this if I didn’t do it, but I would have always wondered if I should have taken the risk.

Financial regrets can work the same way. I try to think of how I might reflect later on a decision to save or spend. If you’re trying to map out the right course of action for your financial future, take it from some retirees who wished they made different decisions. Here are just a few of their regrets.

1. Not saving enough

One of retirees’ biggest regrets is not setting enough money aside for their retirement. A recent survey showed that 59% of retirees say they regret not saving more, and 60% say they should have started saving earlier.

According to recent Federal Reserve data, the median retirement account savings balance is $87,000.

Whether your retirement account has more or less in it, one of the best ways to boost your retirement savings is to use tax-advantaged savings like an individual retirement account (IRA). This year, you can contribute up to $7,000 in an IRA (or $8,000 if you’re 50 or older).

IRAs can be an excellent tool for building retirement savings because they allow you to put money in a wide variety of investments, including low-cost index funds, individual stocks, bonds, annuities, and more.

2. Overspending in retirement

The American Association of Retired Persons (AARP) said recently that some retirees regret spending too much money after they stop working.

I know some people who were upset when their parents bought a boat in retirement. It wasn’t a financially devastating decision, but it likely caused more strain on their budget than necessary.

Some common overspending habits among retirees include buying a boat, living in an expensive resort community, buying an RV, and owning a timeshare. Some retirees also regret spending a lot of money upgrading their homes or building a new dream home.

3. Claiming Social Security too early

Many people can begin collecting Social Security benefits at age 62. But starting at that age could reduce the maximum benefits you receive.

Waiting until age 67 will allow you to receive 100% of your benefit, while taking it early could reduce the amount by up to 30%.

Nearly one-fifth of retirees wished they’d waited to collect their benefits.

4. Not working longer

This regret goes hand in hand with taking Social Security benefits too early. About one-third of retirees say they wish they had worked longer before retiring.

While this is a common regret among retirees, it’s also important to mention that not everyone gets to decide when they stop working. A recent Edward Jones survey found that 40% of their clients were forced into retirement — sometimes from company downsizing, but often for personal health reasons.

5. Not planning for long-term care

A survey from the Wharton School found that 40% of retirees regret not buying long-term care insurance. This type of insurance covers some or all of the cost of assisted living facilities and in-home care.

The Department of Health and Human Services estimates that a retiree who is 65 years old right now will have, on average, $120,900 worth of long-term care costs.

With men’s average life expectancy of nearly 75 and women’s topping 80, paying for long-term care insurance could be a good move for many retirees.

Having financial regrets is normal

By examining retirees’ financial regrets, we’re not focusing on their missteps. Instead, we’re learning from their experiences to make the best financial decisions possible.

I don’t know anyone who’s never made a mistake with their finances, so don’t worry about aiming for perfection. But if you’re prone to making certain errors on this list — like overspending, for example — it might be a good idea to devise a game plan now, so you can avoid the same mistakes once you reach retirement age.

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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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Cash back credit cards are popular, but depending on your habits, they might not be a slam dunk for your finances. See how to avoid mismanaging them. [[{“value”:”

The benefits of using credit cards can’t be overstated — imagine earning cash back, points, or miles on your spending, along with getting access to perks like travel insurance, purchase protection, and free subscriptions to services like food delivery apps.

Cash back cards are particularly popular with ordinary Americans — according to research from The Motley Fool Ascent, 72% of people with a net worth under $1 million have a cash back credit card (compared to 59% of those with a higher net worth).

If you’re going to come out ahead from using cash back credit cards, there are a few mistakes you want to avoid. Keep reading to learn what not to do with your cash back cards.

1. Not watching your card’s bonus categories

If you have a card that earns a higher rate on some spending categories, it’s worth paying attention to what these are and ensuring you use the card to make these purchases. Otherwise, you’re leaving cash back on the table.

If you have a card with rotating bonus categories that you must activate, make sure you do. Cards that work like this often earn 5% back in those rotating categories, and if you can target your actual spending with them, you stand to earn serious cash back in the process.

Since categories often change quarterly, consider setting a calendar reminder to pop into your account and activate them so you don’t miss out.

2. Avoiding cards with annual fees

You might assume that paying a fee for a credit card is the opposite of what you’d want — let the credit card pay you, not the other way around. But cards with annual fees usually have perks and higher earning rates beyond what you’d get with a no annual fee card.

My favorite grocery store card has an annual fee — but it also has a high enough bonus rate on grocery purchases that I more than cover the fee. We’re just halfway through the year now, and I’ve already earned more than double its cost thanks to my spending habits.

So deciding out of hand to skip cash back cards with an annual fee could be a bad idea if you’re hoping to benefit from higher bonus rates and extra cash back.

3. Only using one card (with one exception)

A lot of us here at The Ascent are credit card nerds — we enjoy applying for new ones and using multiple cards to earn money or points back on as many types of purchases as we can. But many people don’t go this route and instead stick to just one credit card for all their purchases. This can be a mistake if you’re missing easy opportunities to maximize your spending, though.

If you have one credit card that earns a base rate of just 1%, I recommend potentially adding a second to help you cover more ground. Let’s say your current card earns 1% across the board, but also 3% on dining out.

It’s reasonable to assume that you also spend money on gas and groceries, and there are cards out there that earn higher rates on these categories, too. Pick one of these, and you’ll be earning more back on other big spending categories.

There’s an exception to this plan: If instead of a card with 1% base rate, you have a flat-rate card earning 1.5% or even 2%, that might be just right for you. And this is doubly true if you’ve struggled with managing credit cards in the past, don’t have a lot of time, or just aren’t interested in becoming a credit card nerd.

Personal finance is just that — personal. Follow your bliss!

4. Carrying a balance

To be fair, carrying a balance on any kind of credit card is usually a bad idea unless you have an active balance transfer or intro APR offer and a solid plan to pay the card off over time before you’re walloped with interest.

Credit card interest rates are high — according to the Federal Reserve Bank of St. Louis, the average rate for cards assessed interest was 22.63% as of February 2024. No cash back card will pay anywhere close to that in rewards, so it’s clear that carrying a balance will eat up what you’re earning — and then some.

Credit card debt is hard to get out of — trust me, I’ve been there. I recommend increasing your income (perhaps via a side hustle?), digging in to pay it off, and then reframing your relationship with your cards. If you can get to a place where you use them as a tool to benefit from purchases you’d make anyway, you can enjoy earning cash back without carrying high-interest debt.

Cash back credit cards can be a boon to your finances — if you use them correctly. Avoid these mistakes and enjoy earning a little back on your regular purchases.

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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 Target. The Motley Fool has a disclosure policy.

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