Money Management

Minivans are often regarded as lame. But read on to see why it could pay to get one. [[{“value”:”

When I found out I was having twins at a time when I already had a toddler in tow, I knew that trading my Toyota Camry for a minivan was inevitable. I loved my Camry, but it was not equipped to fit three car seats in a single row, so I basically had no choice but to go the minivan route.

At first, I wasn’t happy.

See, I’m a city girl. I grew up getting places on foot or by subway, and I promised myself I would never cave and move out to suburbia. But I ended up doing so in my 20s because I had a choice of either cramming myself and my husband into my tiny studio rental or moving into his spacious detached house. Buying a minivan was only going to propel me even further into the “uncool mom” category, and I wasn’t ready for it.

But I have to be honest. While I sometimes grumble about driving a minivan, there are some benefits to owning one. So whether you’re in a situation where you actually want a minivan or you’re like me and you’re basically being forced to buy one, here are some of the perks you might enjoy.

1. They can hold a lot of passengers

My minivan can hold up to eight passengers. And you wouldn’t believe how handy that can be now that my kids are school-aged and coordinating carpools to after-school activities are a must.

Granted, as the person with a minivan, I often end up having to shuttle extra kids home since my car has the room. But it’s nice to be able to load in a bunch of kids knowing that there’s a dedicated seat — and seatbelt — for every one.

2. They come with lots of storage

My family takes a lot of road trips. And it’s during those travels that I find myself appreciating my minivan the most. Not only is the trunk huge, but I have the option to fold the third-row seats down, cram my kids into the middle row, and use the entire back of the car for storage.

Not long ago, we purchased a new TV, and thanks to my minivan, we were able to take it home ourselves without having to pay for delivery. The extra storage also comes in very handy when I do a larger Costco run.

3. They can be easier to park

Minivans are large by nature, so you’d think that would pose a challenge when it comes to parking. But because the back doors slide open instead of swinging outward, it can actually be a bit easier to squeeze into a tight parking space, since you can get out without slamming your door into the car next to you.

Now that said, I’ll be the first person to tell you that those sliding doors are a mixed bag. They may be good for small parking spots, but they jam often and cause me a world of hassle. So if I’m being honest, I’d say the sliding doors are actually the worst part of owning a minivan. But I’d be remiss not to mention the benefit they offer.

4. They’re generally cheaper than three-row SUVs

You might spend more on a minivan than a smaller car. But Kelley Blue Book reports that on average, minivans cost less than SUVs with three rows of seating. And the lower your car’s purchase price is, the less your auto insurance might cost you.

READ MORE: Cheapest Car Insurance Companies

Of course, the amount of money you spend on a minivan will depend on the model you choose and the features you decide to pay for. It’s possible for a three-row SUV to cost less than a minivan if you go bare bones on the former and upgrade the latter. But generally speaking, a minivan is your most cost-effective choice.

There are definitely times when my minivan makes me feel extremely uncool. Thankfully, as a self-proclaimed bookworm who spends many an evening curled up on the couch with a warm mug of tea, that’s not exactly a problem. But while your new minivan may not exactly be the envy of your neighbors, you may find that it’s a vehicle worth driving for the convenience and storage alone.

So don’t get too down on yourself if you end up becoming a minivan owner. It’s really not all that bad.

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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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Putting yourself into a huge financial trap is a major mistake. Learn why you should carefully consider your budget when buying a home. [[{“value”:”

Owning a home has long been a part of the American dream, but unfortunately, it’s now harder to achieve than it used to be. According to research from the Joint Center for Housing Studies of Harvard University, in 2022, the median price of a single-family home was 5.6 times higher than the median American income. This is a higher figure than at any point recorded, going back more than 50 years to the early 1970s.

In addition to higher home prices, people trying to buy right now are also contending with mortgage rates around 7% — when just three years ago, we could’ve bought with a mortgage rate of 3%. In short, it’s become a lot more expensive to buy a house.

If you’re tired of renting and are dreaming of buying a little slice of paradise to call your own, you might be willing to stretch financially to make it a reality — but that would be a mistake. Here’s why you shouldn’t commit too much income to housing costs, as well as an easy way to tell whether you can afford to buy a house.

The 30% figure

It’s a pretty common recommendation to limit your housing costs (including your mortgage, property taxes, homeowners insurance, and any other regular monthly housing expenses) to 30% or less of your income. This is a reasonable figure that should, ideally, leave you with enough money left over to cover your other bills and financial obligations, like saving for retirement and paying off other debt.

If you commit to spending too much of your income on housing (also known as being house poor), it could really hurt you. You might struggle to make the payments, for starters. But you might also be less able to put money away for emergencies or future goals, like retirement or helping your kids with college costs. You could find yourself resenting the home you worked so hard to buy — and you don’t want to be in that situation.

Practice living with your new housing costs

There’s one way to find out ahead of time if your new budget will work: You can pretend you’re already paying more for housing, but instead of sending the money to a mortgage lender, put it into a savings account.

For all the time I’ve spent saving to buy a home (more than 18 months now), this is what I’ve been doing. I set a savings target for myself at the start, and I’ve been putting away money toward a home purchase just about every week — while still paying my regular bills. Thanks to this, I’m confident I’ll be able to swing my new costs once I actually start paying them.

You certainly don’t have to engage in this exercise for as long as I did, but it’s a good idea to try it out. Do some math, look at home prices in your area, investigate current mortgage rates, and try to create an estimate of what your costs might be. (A mortgage calculator is a great tool for this.)

If you think your housing costs will go from $1,200 per month to $1,900 per month, try putting the extra $700 into a savings account for six months. If you feel comfortable parting with the extra money and don’t run into trouble covering your bills, you can seek out mortgage pre-approvals with more confidence.

And hey, you’ll end up with $4,200 extra in savings that you can apply to a home purchase — or the emergency fund that will be even more crucial once you have a house to take care of (especially if it’s an older one).

Don’t compromise your other goals when you buy a home

While you should certainly expect your life to change when you become a homeowner, ideally, doing so shouldn’t come at the cost of other goals you might have. Yes, I’m buying a house this year, but I also intend to open my first-ever retirement account and contribute a set amount of money to it every month. I’ve also enjoyed having the money and flexibility to travel more since I became a full-time freelancer, and it’s not something I want to give up. So I’m glad I’m not committing to spend more than 30% of my income on a house.

Before you start seriously considering buying a home, think about your own wants, needs, and goals. If taking on a mortgage will mean no longer having the money to satisfy them, it’s better to learn that before you find yourself stuck in a home you can’t comfortably afford.

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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 Target. The Motley Fool has a disclosure policy.

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It’s a good time to lock in a great CD rate. But you may want to wait if these situations apply to you. [[{“value”:”

There’s a reason I took a bunch of money out of a regular savings account earlier this month and used it to open a CD. CD rates are really strong right now, with some banks paying upward of 5%.

But the Federal Reserve is expected to start cutting interest rates at some point this year. The reason is a good one: cooling inflation. And that should, thankfully, bring the cost of borrowing down. But it’s also going to mean lower CD rates than what we’re seeing today, which is why I chose to open a CD before the Fed’s first rate cut.

You may be eager to lock in a CD at a great rate, too. But you ought to hold off if any of these factors apply to you.

1. You’re still working on your emergency fund

It’s important to have money on hand at all times for unplanned bills. And the general consensus is that your emergency fund should have enough money to cover three to six months of essential bills. That way, if you were to lose your job, you’d have money for bill-paying purposes, thereby avoiding costly debt.

But if you’re not done building your emergency fund, then you shouldn’t open a CD. You should only open a CD with money you have beyond what you’ve saved for emergencies.

The reason? Cashing out a CD prior to its maturity date can result in a costly penalty, the exact amount of which will depend on the bank you use and the length of your CD. At Capital One, for example, if you cash out a 12-month CD early (even a few weeks before it matures), you’re looking at being penalized three months of interest.

So let’s say you put $5,000 into a 12-month CD paying 5%. If you end up withdrawing that money for an unplanned expense and have to pay 3 months of interest, you’ll face a penalty equal to $62.50. That may not be a life-changing sum of money, but why give it up when you could’ve kept your emergency fund in a regular savings account and avoided a penalty?

2. You’re very new to paying your own bills

Maybe you’re a recent college graduate with a brand-new job and apartment. You might think you have all of your expenses under control. But what if your utility bills start coming in higher than expected? Or what if your car insurance company decides to raise your rates because you’ve moved to a new ZIP code?

If you’re pretty new to paying bills, you may want to keep extra cash on hand for surprises. It could pay to hold off on tying up any of that cash in a CD, despite the temptation to snag a really great rate.

3. You have a near-term expense and are still figuring out the cost

Maybe you’ve been saving for new flooring in your home and are getting price quotes. Or maybe you’re planning a summer vacation but haven’t nailed down all of the details. You don’t want to mess with goals you’ve been saving up for simply to earn a little more interest on your money. That’s not really fair to you. So if you have a near-term expense whose cost you’re still trying to calculate, hold off on putting money into a CD.

Remember, though a CD might give you the benefit of a higher interest rate on your money — and a guaranteed interest rate at that — it’s not like you’re looking at earning nothing in a high-yield savings account. If you can earn 4.3% on your savings while maintaining the flexibility to access your money whenever you want, then why risk a penalty to earn 5%? On a $5,000 deposit, you’re talking about a difference of less than $3 per month.

And sure, that gap might widen if savings account rates start to fall. But still, if you’ve worked hard to save your money, you deserve to be able to use it without stress. So don’t open a CD if you can relate to any of the above situations.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Planning for old age is something every American will have to do. Keep reading to learn how to make the most of it, even if you’ve waited to begin. [[{“value”:”

Sure, sure, we’ve all heard it: Retirement planning should begin when we’re young. But what about those of us who have been forced by circumstances to wait? Is there no hope? The answer to that question is a resounding no. Here are three reasons it’s never too late to plan for the day you wave a final goodbye to your job.

1. Compound interest works — no matter how old you are

Some fortunate souls begin saving for retirement the day they enter the workforce, which is wonderful. With time on their side, they can watch the magic of compound interest at work. But the fact that somebody else started early in no way impacts you or how you also put compound interest to work.

Let’s say Sam is 55 and wants nothing more than to retire in 10 years. They’ve had some rough years, financially speaking, and have nothing put away for retirement. It’s not an ideal situation, but certainly not insurmountable. As any personal finance expert would tell Sam, “The best time to plan for retirement was years ago. The second-best time is today.”

Taking that to heart, Sam begins contributing $100 a week to their company’s retirement plan or an individual IRA.

Since 1928, the average annual return on the S&P 500 has been 7.7%. Some years it’s been lower, and some years it’s been much higher, so let’s say that over the course of 10 years, the money earns an average return of 7%.

By investing $5,200 annually ($100/weekly), Sam has nearly $72,000 tucked away by age 65. You’ll notice that without compound interest, they would have had $52,000 ($5,200 per year times 10). But thanks to the power of compounding interest, Sam’s investment has grown.

Compound interest benefits you the same way it benefits anyone else.

2. The older you are, the closer you are to “catch-up” contributions

If you’re enrolled in a retirement plan, the IRS allows you to contribute more to your plan. For example, the 2024 contribution limit for a 401(k) plan is $23,000. If you’re 50 or over at the end of the calendar year, you can make a catch-up contribution of up to $7,500 more. That means you can contribute up to $30,500 annually to the following:

401(k) — other than a SIMPLE 401(k)403(b)SARSEPGovernment 457(b)

Even if you don’t believe you can possibly contribute more, every dollar you add to your contribution makes it easier to retire.

Let’s go back to Sam for a moment. Imagine that Sam decides they can contribute $150 weekly rather than $100. In 10 years, their retirement account would hold $107,800. It’s not a fortune, but it could certainly make Sam’s household budget a little easier to manage.

Don’t forget, you don’t have to withdraw all your money at once. Let’s say you only take the required minimum distribution (RMD). The rest of your funds can remain in your investment account and continue to grow.

3. You have a better sense of how much your guaranteed income will be

Guaranteed income is any source of income you can count on, month in and month out. It includes things like pensions, Social Security payments, and annuities. The Social Security Administration (SSA) determines a person’s monthly income using the “average indexed monthly earnings” for up to 35 years of employment (using the years with the highest earnings).

In most cases, the older you are, the longer you’ve worked, and the closer SSA is to providing you with an accurate estimate of how much you can expect to receive.

Why is this important? The nearer you are to knowing how much money you’ll have coming in each month, the easier it will be to come up with a budget that fits. You can sign up at my Social Security to receive an estimate of how much you can expect. It won’t be exact, but it’s close enough to allow you to figure out if you’re going to have enough or if you’ll need to alter your plans a bit. For example, you may decide to work a little longer, take on a side hustle to earn more money between now and when you retire, or downsize your living situation in retirement.

If you tend to be an all-or-nothing, black-and-white thinker, it may be tough to wrap your mind around the idea of starting to save for retirement today — no matter how old you are. But every dollar you put away for your retirement years will only serve to make your golden years easier.

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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.Dana George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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You don’t need deep pockets to start a business. Read on to find out which ones cost next to nothing. [[{“value”:”

I’ve worked as an independent contractor for more than 10 years, so I know how important it is to keep costs low when starting a business. As a freelancer, I’m fortunate to have minimal expenses associated with my work. Many businesses are in the same boat. It’s easier than ever to launch a new business and keep costs down, depending on which business you launch.

Here are three of the most-cost effective businesses to start and how much you could make from each.

1. Content creation

Start-up cost: $0

Average annual pay: $116,615

I’ll start with what I know best: creating content. I left my full-time job more than 12 years ago, and freelance writing has been my main source of income since then. With this line of work, you may be writing and editing articles and blog posts, creating marketing materials, or updating website content.

It hasn’t always been easy, but one of the things that made it less nerve-racking when I began is that my expenses are very low. Every four or five years, I buy a new computer, and I pay for one or two software services to check my grammar and help me organize my work.

But if you own a computer, you could start a content creation job with little or no start-up costs. Finding freelance content jobs on sites like Fiverr is free, though you’ll pay a fee when you complete a job and are paid.

2. Social media management

Start-up cost: $0

Average annual pay: $64,845

This job is in the same vein as content creation, but there’s more responsibility involved. I’ve done this, too, and can attest that it also can have low start-up costs.

One difference is that social media managers often create marketing plans and calendars for the content they’re creating. They may also get paid to assess a business’ current social media strategy and suggest changes. I recently worked with a company that asked me to look at its current posts, create online materials for an event, and make a promotional video for a conference it was hosting.

You don’t need any special software to be a social media manager, so the start-up costs can be as low as $0. But once you have a handful of clients, you may want to pay for social media management software, like Hootsuite, which starts at $1,188 annually.

3. Bookkeeping

Start-up cost: $1,347

Average annual pay: $50,573

Accounting jobs are in high demand right now, making this a particularly useful job. You don’t need to be a certified public accountant either. Many bookkeepers are good with numbers and a knack for using accounting software.

There are more than 33 million small businesses in the U.S., and many could benefit from freelance bookkeepers to keep track of their finances. If you want to stand out among others in the field or need to brush up on your skills, you can take a bookkeeping course. The National Association of Certified Public Bookkeepers has an online class to become a licensed and certified bookkeeping professional for $1,347.

Consider upskilling before starting a new business

If you’re interested in starting a new business but aren’t sure where to start, building new skills could be a great first step. Platforms like MasterClass and Skillshare can introduce you to new skills and build on existing ones.

This upskilling pays dividends, even if you don’t use it to start a new business. Gallup data shows workers who upskill get paid 8.6% more on average.

There are plenty of other low-cost businesses to start that aren’t on this list. But the in-demand small businesses I discussed here can be launched relatively quickly and with little out-of-pocket expense. This is a great combination if you’re looking for a career change or want to launch a side hustle.

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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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Are you worried about hotter weather in summer 2024? Here’s how Costco can save you money on air conditioners, freezers, water sports gear, and more. [[{“value”:”

Many parts of the U.S. are projected to have hotter than usual temperatures this summer. Costco offers great products at affordable prices to help you cope with heat waves — air conditioners, water sports gear, and more. So let’s take a look at a few of the best Costco buys to help you survive a hotter summer in 2024.

(All deals were available for online shopping with prices shown for my local Costco warehouse in West Des Moines, Iowa as of May 24, 2024. Prices may vary by location.)

1. Amana 9 cu. ft. Chest Freezer ($299.97)

Need some extra room to keep your ice cream, popsicles, and other must-have frozen foods for a hot summer? This Amana chest freezer has got you covered — and it has some helpful features like a basket for smaller items, two rollers for easy movement, and freezer-to-fridge convertibility.

Why this is a great Costco summer deal: This item comes with free delivery. Costco members can get it for $299.97.

2. Midea U 12,000 BTU Smart Inverter Window AC ($299.99)

Hotter summers call for heavier-duty air conditioners. If your home is feeling overheated and under-cooled, it’s time to bring in the reinforcements of a Midea air conditioner. This window unit packs 12,000 BTUs of power and gets an average 4.2 star rating from Costco members. It claims to provide nine-times quieter operations and more than 35% energy savings compared to a traditional air conditioner. If you’re suffering through hot days with noisy air conditioners, upgrading to this Midea unit could make your summer more comfortable.

Why this is a great Costco summer deal: The $299.99 price includes $80 of manufacturer’s savings — valid through June 9, 2024.

3. Body Glove Performer 11-foot Inflatable Stand-Up Paddle Board Package ($299.99)

Want to get out on the water this summer? Check out this surprising deal from Costco: you can get an 11-foot inflatable stand-up paddle board for only $299.99! This kit includes an electric pump for effortless inflation, and the board weighs only 22.4 pounds for easy transportation from your home or vehicle to the water’s edge.

Why this is a great Costco summer deal: The $299.99 price includes $100 of manufacturer’s savings — valid through June 2, 2024.

4. Aquaglide Soaker Lounge ($499.99)

This item is another great idea to help you and your loved ones spend more time on the water this summer, especially if you have access to a backyard pool, lake home, or a quiet river for tubing and relaxing outdoors. The Aquaglide Soaker Lounge comes with four drink holders and a mesh floor so you can stay cool and comfortable on hot summer days.

Why this is a great Costco summer deal: This product is offered through the Costco Next program. Costco Next gives Costco members special pricing with Costco partners — you can find excellent deals on high-end products from premium brands.

5. Weber Genesis II E335 Gas Grill ($849.99)

If it’s too hot to turn on your stove, do your cooking outside! The Weber Genesis II E335 Gas Grill comes with a “sear station” to quickly make a mark on meat with intense, focused heat. It also has a side burner for simmering sauces and sauteing vegetables.

Why this is a great Costco summer deal: This Weber gas grill gets high ratings from Costco members (4.5 stars) and qualifies for extra discounts with the Costco Direct program — if you buy two qualifying Costco Direct items, you can save $100. Buy three qualifying items, save $200. Buy more, save more!

Bottom line

No matter how hot it gets this summer, you can keep your cool with a Costco membership. Costco offers surprising finds on must-have items for a happier, more comfortable summer — at prices that won’t melt your credit cards.

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.

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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