Money Management

If you can’t find a home that meets your needs or budget, you may be eager to buy land and have one built. Read on to see why this might be a good idea. [[{“value”:”

There are a few reasons why many people are struggling to buy a home. For one thing, mortgages are expensive. Mortgage rates are sitting at around 7% as of this writing. Also, home prices are generally much higher than they were several years ago. Making matters worse, there’s not a lot of inventory to go around.

In fact, low inventory explains why home prices are up. Any time there’s not enough supply of a given item to meet demand, that item’s price tends to rise. It can happen with cars, the hottest toys of the holiday season, and homes.

As of April 2024, there was only a 3.5-month supply of available homes on the market, according to the National Association of Realtors. That might seem like a decent supply, but it can easily take six months’ worth of inventory to fully meet buyer demand.

If you’ve been looking for a home for quite some time but have yet to find one that meets your needs and price point, you may be inclined to go another route. It’s possible to buy a plot of land instead of an existing home and hire a builder to construct one for you. But there are benefits and drawbacks to building your own home.

The pros of building a home from scratch

The main benefit of buying a home is clear — you can have that property built to your specifications. Want an open floor plan? Your builder can do that. Want built-in shelving and bay windows in your family room? Just have it added to your design plans.

When you build your own home, you may also have more say over what you spend. Maybe you don’t care about granite countertops and are fine with less expensive laminate. Maybe you don’t give a hoot about hardwood flooring and are fine with an option that’s way cheaper.

When you buy an existing home, you don’t get to make those decisions. And if your seller had more expensive taste than you do, guess what? You still have to pay for those upgrades in the form of a higher purchase price. But when you build a home, you call the shots and can, to some degree, choose to give up certain features to keep your costs down.

The cons of building a home from scratch

On the flipside, buying land and building a home can be risky. First, you risk having to pay more all in than you would for an existing home because the cost of materials is higher today than it was years ago.

When you buy an existing home with a roof that’s in good shape, your cost for that roof is locked in as part of your purchase price. With a new home that’s being built, you’re running the risk that roofing prices will be exorbitant.

Of course, the roof is just one component. The point is that building may not be less expensive than buying a home that already exists, even if you’re OK with a no-frills property, and a relatively small one at that.

Also, unless you’re hiring a builder from the start to help you find the right plot of land, there’s a lot of research on your part that may need to go into it. Not every plot is equally suitable for construction.

Plus, there are lots of factors that could delay a new home build, from weather-related issues to a lack of available supplies. If you’re on a specific timeline for moving, you’re taking a big risk by purchasing land and waiting for your home to be move-in ready.

Buying land for a home build might seem like a good idea. And it’s a move that might work out well for you. But consider the pros and cons carefully before moving forward. Also, if you do decide to take this approach, make sure to vet your builder thoroughly before signing a contract. And make certain to get on the same page about a budget so you don’t wind up spending more than you can afford.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 

A checking account buffer should cover you in the event of a missed or delayed paycheck. Read on to learn how to figure out that critical figure. [[{“value”:”

If you want to optimize your finances, a checking account buffer may feel unnecessary, or even like a missed opportunity if you aren’t earning interest on that account.

But if you have money going from that account to critical bills like your utility and rent payments, you need to make sure that there’s always enough money in there to cover those costs. Otherwise, you’ll run into issues like declined payments and maybe even hits to your credit. (And bad credit can cost you thousands per year, depending on your circumstances.)

Here are the three steps you need to figure out exactly how much money you should keep in your checking account.

1. Consider your monthly auto-payments

We all tend to have at least a few payments that are automatically deducted from our checking accounts. Whether that’s for savings, bills, or something else, you’ll want to make sure that you can cover all of those expenses to avoid overdraft fees.

So the first step is to list each of these payment dates, as well as the amounts, if known. For variable expenses, like your electricity bill, you might want to take a look at your previous three to six months’ worth of bills to get an average.

2. Look at the stability and timing of your paychecks

For those who get a predictable monthly or bi-weekly paycheck, this probably isn’t going to be that much of a concern. But for those who may not be salaried employees — for example, my fellow freelancers — this is critical.

Either way, though, you again need to know the dates and amounts that you can reasonably expect to be deposited into your checking account each month. That way, you can figure out exactly what your balance should be at various points in the month. If that amount is always positive, you can move on to the next step. If not, note down how much your balance goes in the red and then go to the next step.

3. Consider your emergency savings

Once you know when money is coming in and out of your checking account, you can figure out exactly how much you need to keep in that account to avoid mishaps. The best way to do this is to consider how long it would take you to get money from your emergency savings account into your checking account, which may require a small test run to figure out.

If it takes three to five days to transfer money across those accounts, you’ll want to look at the highest auto-paid bill on your list, as well as any other deductions that occur during the three to five days before or after that amount comes out of your account.

Let’s say your $2,000 rent payment comes out of your checking account on the 1st of the month and that’s your largest monthly expense. If you also have a $500 loan payment that comes out of that account on the 3rd, and a $200 utility bill on the 28th, you should keep at least $2,700 in your checking account. But if you have a point in the month where your balance is negative because of the timing of your bills vs. paychecks, you need to add that amount to the buffer, too. So, even if there’s an issue with your income at the worst possible time, you’ll be covered.

Of course, this all assumes that you have an emergency fund to fall back on for larger expenses. If you don’t, saving one should be your top priority alongside creating this checking account buffer. That way, you’ll have the peace of mind that comes from knowing you’re prepared for the future.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 

Before you buy a Southwest flight ticket, review recent fee hikes. Some optional service fees have increased. Here’s what you need to know before your flight. [[{“value”:”

If you fly with Southwest Airlines, you’ll want to know about a recent fee increase that could impact your wallet. While the airline is known for allowing all flyers to check two bags for free and not charging change or cancellation fees, other optional fees exist.

If you’ve ever paid a fee for Upgraded Boarding or EarlyBird Check-In when flying Southwest, you should know that these fees have recently increased. Find out how much more you could spend before your next flight.

Here’s how the Southwest boarding process works

If you’re new to Southwest, you may not know how the airline handles boarding.

Here’s a quick overview: Southwest doesn’t assign seats or allow travelers to choose their seats before departure.

Instead, passengers are assigned a boarding group (A, B, or C) and a boarding position (1-60+) at check-in. The boarding group and number listed on your boarding pass determine your place in line at the gate and, in turn, the order in which you board the plane.

Passengers board in order from A through C based on the group and position listed on their boarding passes. Once on the plane, travelers can sit in any remaining seats.

Because of this setup, checking in for your flight as soon as possible is advantageous if you want more choices regarding where you sit on the plane. Otherwise, you’ll be stuck with whatever seats are left, and the offerings may be less than ideal.

Upgraded Boarding costs $30 to $149 per segment, per person

Don’t like being one of the last passengers on the plane? Southwest offers Upgraded Boarding for a fee. When available, this optional service allows flyers to upgrade their boarding position to A-1 through A-15, 24 hours before their flight departs.

The exact fee varies by route and demand. The Southwest Airlines website notes that these fees now range from $30 to $149 per segment, per person, up from $30 to $80. That means you could pay more if you opt for Upgraded Boarding.

EarlyBird Check-In costs $15 to $99 per segment, per person

Paying for upgraded boarding isn’t the only way to increase your chances of boarding the plane sooner. Southwest also offers EarlyBird Check-In, which allows customers to enroll in automatic check-in before the traditional 24-hour check-in period when available.

This could earn you an earlier boarding position than if you checked in manually starting 24 hours before departure. However, this optional service has a fee, which varies by route and demand.

EarlyBird Check-In now costs $15 to $99 per segment, per person. You could pay up to $199 per round-trip journey to use this service. Previously, the fee ranged from $15 to $25 per segment, per person. That’s a significant price difference.

A Southwest Airlines credit card could prove useful

Are you a Southwest loyalist? Before paying these optional fees, consider adding a Southwest credit card to your wallet. You can earn valuable rewards when you book Southwest flights and make other purchases with your credit card.

You can also unlock additional perks that improve your flight experience. For example, some cards include a limited number of free EarlyBird Check-Ins each year. While others include a limited number of complimentary Upgraded Boardings annually.

Credit card benefits like these could help you keep more money in your checking account. Review our list of the best Southwest credit cards to explore your options before your next flight.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

“}]] Read More 

As one of the most popular retailers in the U.S., Costco has millions of members. Here’s what one member says it would take for them to cancel. [[{“value”:”

When I budget, I consider my Costco membership a luxury. After all, I could live without it. It’s always on the chopping block as a luxury item, an expense I could cut if needed. And if I ever cancel my Costco membership, one of these will be the reason why.

Ugh, people

I’ve complained about the patience required to find a parking spot at our local Costco more often than is reasonable. After all, Costco is the third most popular retailer in the U.S., behind only Walmart and Amazon. I’m not sure what I expect. It’s not as though the parking lot is ever going to be empty during business hours.

Still, I dread navigating the hordes of people shopping at my nearby Costco at any given time. Don’t get me wrong; I like people. I just don’t like feeling trapped by their shopping carts coming at me from every direction.

Fortunately, my husband enjoys wading into a crowd. As long as we’re shopping together, he pushes the cart and reminds me that we’re having fun. Yes, living with Mr. Rogers can sometimes be irritating.

When I’m shopping alone, I just want to get in, stick to a budget, and get out. I think I’d be okay if Costco offered Scan & Go (like Sam’s Club does). Just knowing that I’m going to have to wait in a ridiculously long line to check out is enough to make me want to shop elsewhere. If I could scan my items as I shopped and then easily pay via an app, I would feel a greater sense of control and probably wouldn’t dread the idea of a Costco run quite so much.

By the way, he doesn’t know it yet, but when he retires, my husband will be officially in charge of all warehouse store shopping. I’m not kidding when I say he’ll be thrilled.

Impulse buys

When I walk into our local grocery store, I pretty much know what I’ll find and where I’ll find it. There are no surprises and no reason to slow my pace. While Costco certainly carries many of the same products week in and week out, there are also those pesky limited-time specials to deal with. Offering unique products messes up my flow in two ways.

I can’t seem to help myself. I have to stop and see what’s new.If I decide I simply can’t live without a new axe-throwing set, I spend more than intended or stand in the middle of the store using a price comparison app to see if I can find a better price elsewhere.

Over the years, some impulse buys have been real stinkers, but I must admit that the axe-throwing set was a winner. My family loves it. Still, Costco has a way of making it tough to avoid impulsive purchases, and for me, an impulse purchase sometimes means taking money from my savings account.

A long morning of shopping

I almost always hit Costco on Saturday mornings (which helps explain the Super-Bowl-sized crowds). While there, I have a shopping list right in front of me. I pick up what I can and circle anything I need to buy elsewhere. Let’s say I need two lemons for a recipe, but the smallest bag I can find at Costco holds 12. I would circle lemons on my list.

Once I leave Costco, I shop for anything that’s been circled. By the time I’ve been to Costco and the “pick-up” store (or stores), I’ve blown off a morning shopping — a task I do not particularly enjoy.

Of my petty list of complaints, this is the most likely reason I would cancel my membership. There are 1,000 things I would rather be doing than running around town to shop.

The truth is, I’ll probably never cancel my Costco membership, if for no other reason than to keep my husband busy once he’s retired.

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

“}]] Read More 

Some companies can potentially help you rebuild your credit. Read on to find out what to look for when choosing one. [[{“value”:”

I once had such bad credit that a furniture store wouldn’t let me buy a $500 couch. I slowly rebuilt my credit by making payments on time and not overusing my credit card. Now, my score is 780.

That process worked best for me, but some companies exist that can help you with your credit. The legitimate ones can work with your creditors and contact the credit bureaus about mistakes on your credit report.

To be clear, most of them won’t do anything you can’t do yourself. Instead, you’ll pay them to spend the time potentially helping with your credit situation. While there’s no guarantee they can improve your credit, here are a few companies that might be able to help.

1. Credit Saint

Credit Saint is listed on many credible financial websites as a beneficial credit repair company. The company also has a 4.8-star rating from more than 12,000 Google reviews and has received an “A” rating from the Better Business Bureau (BBB).

Credit Saint has offered credit repair services for 19 years and has a clear, upfront pricing model. You can choose from three different service tiers, with the cheapest costing $79.99 per month.

Some services included in the different tiers involve challenging incorrect information on your credit report, sending letters to creditors, and creating a personalized guide to building credit.

Credit Saint offers a 90-day money-back guarantee if it is unable to delete questionable items from your credit report.

2. The Credit Pros

The Credit Pros is another top-rated credit repair company. It’s been in business since 2009 and has an “A+” rating from the BBB.

You have to opt for the $129/month package to receive credit services, such as filing disputes with the three credit agencies, creditor interventions, and letters of reference. It’s worth mentioning that the lowest-priced Credit Pros tier, which costs $69 per month, doesn’t offer credit repair services.

One unique feature from Credit Pros is a credit builder loan that allows you to pay specified amounts upfront to a lender and then receive the money back. The loan and your payments are then reported to the credit bureaus, helping to improve your credit. This option is only available on the $149/month plan.

Credit Pros offers a 90-day money-back guarantee if the company doesn’t get questionable items updated or deleted from your credit report.

3. Sky Blue Credit

Sky Blue Credit is a well-established company that’s been around since 1989 and has an “A+” rating from the BBB.

The company offers credit repair services that include credit disputes, creditor interventions, debt validation letters, and a credit builder tool. Sky Blue’s lowest-priced tier is $79 per month and offers a more comprehensive credit repair service for $99 per month. There’s also discounted pricing for couples.

The company says it specializes in helping customers who are looking to buy or refinance a home. To do so, Sky Blue creates credit strategies focused on how lenders will view an applicant’s credit.

Sky Blue Credit also offers a 90-day money-back guarantee. If you’re not satisfied with their service, you can get a refund.

This is the cheapest credit repair option

I mentioned this earlier, but it’s worth saying again: You don’t need to pay a credit repair company to improve your credit.

The cheapest credit repair option is to do the work yourself. It will likely take some time and effort, but you can get started with a few simple steps, including:

Getting a free credit reportFiling disputes with the credit bureaus that have errors on your report with themPaying your bills on timeCreating a plan to pay off your debtApplying for a secured credit card or a credit-builder loan

All this may seem overwhelming at first, but you can make some big leaps of progress simply by setting up a budget and paying your bills on time, which accounts for 35% of your credit score.

Similarly, paying off some of your debt, even a low balance on one credit card, can go a long way toward improving your credit. Your credit utilization accounts for 30% of your score, so keeping this as low as possible will help improve your score.

I took the self-paced route to building back my credit, and it worked very well — and I didn’t have to pay anyone a dime. If you want to do the same, check out our free guide on how to build credit fast.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

“}]] Read More 

Gearing up for your first cruise? Here’s how to cut your travel costs. [[{“value”:”

Some people love cruises — the food, the entertainment, and the option to visit multiple destinations without having to pack and unpack. If you’re gearing up for your first cruise, you may be eager to experience life at sea. But you may also have limited financial resources.

The good news is that there are steps you can take to spend less on your first cruise. Here are five strategies to employ.

1. Book early

Booking early won’t necessarily change the price of your cruise. What it may do, though, is give you access to more cabin options than if you were to wait. The result? You could end up with a cabin that’s less expensive.

For example, the cost of a three-night Royal Caribbean cruise to the Bahamas in August is $410 a night for an interior room, $480 a night for an ocean view, and $530 a night for a balcony room.

If you don’t plan to spend a lot of time in your cabin during your cruise, then it may not matter to you which type of room you get — in which case, you may be inclined to book the interior cabin to save money. But if you don’t book early, you may not be able to find any interior rooms left, leaving you no choice but to pay for a more expensive room.

2. Book at the last minute

Yes, this does contradict that last piece of advice. But funny enough, sometimes, booking a cruise at the last minute means getting a deal.

Cruise lines will often drop their prices if they have lots of available rooms left for a given sailing because they’d rather get some money for those vacancies than none at all. So if you have a flexible vacation schedule, it never hurts to hunt for last-minute deals.

3. Don’t book on the newest ship

Some of the newer ships you can sail on are quite impressive, featuring perks like waterparks and rollercoasters. But the newer a given ship is, the more expensive it’s likely to be to travel on.

An older ship won’t necessarily make for a bad cruising experience. Quite the contrary — many older ships are in plenty good shape and offer their fair share of amenities. And if you’re booking a cruise that has you stopping in a port every day, you may not end up spending as much time on the ship anyway outside of meals and evening shows — which are something you can find on pretty much any vessel.

4. Use a travel agent

You may only have limited time to seek out the best cruise deals. A travel agent’s job, on the other hand, is to find great deals and pass them along. And since travel agents don’t tend to charge a fee, it pays to enlist the help of one to find the perfect sailing for you.

Also, if you use a travel agent and hit a snag, you’ll have a professional there to support you. Let’s say your cruise line messes up your reservation and you end up in a room you don’t really want. Your travel agent may be able to negotiate on your behalf, so you get an onboard credit as compensation.

5. Book through Costco

If you’re already a Costco member, it pays to see what cruise deals the warehouse club giant has available. Costco offers a host of cruise packages, and many come with perks like onboard credits you may not be privy to when you book on your own. Plus, you might pay less for your cruise by choosing one of Costco’s deals.

Also, as is the case with a travel agent, when you use Costco travel, you get the support of a customer service professional who can assist should anything related to your trip go wrong. That could give you peace of mind as a first-time cruiser.

All of these strategies could lead to nice savings on your first cruise. But in the course of your booking, also make sure to use the right credit card. It especially pays to focus on a card that gives you extra cash back for travel purchases, and that offers certain built-in protections, like trip insurance, in case something goes awry.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.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.

“}]] Read More