Money Management

Auto insurance rates are skyrocketing across the U.S., but some states fare better than others. Here are the 10 with the lowest average car insurance premiums. [[{“value”:”

Car insurance costs rose a painful 22.2% from March 2023 to March 2024, according to the Bureau of Labor Statistics. But drivers aren’t all suffering equally. Those with poor driving records already pay more and have undoubtedly seen larger increases.

Location plays a part, too. Drivers in some states have higher rates than others due to population density, auto insurance laws, and likelihood of natural disasters. Residents of the following 10 states luck out with some of the lowest average premiums in the nation.

The 10 states with the cheapest car insurance rates in the U.S.

The following 10 states have the lowest average annual car insurance premiums:

There’s no clear geographic similarities between the states that make the list. But there are other factors that could explain why drivers in these states pay less, including:

Low population density: States like Alaska, Idaho, and Maine have relatively low population densities. This means they have fewer drivers on the roads, which reduces the risk of collisions. Fewer urban areas also reduces the risk of theft and vandalism.Few uninsured drivers: High rates of uninsured drivers increases the risk that insurers will have to pay for damages their drivers didn’t cause. But states like Idaho, Iowa, Maine, and Massachusetts have comparatively low rates of uninsured drivers.Low incidences of natural disasters: While all states experience some severe weather from time to time, areas like Tornado Alley or the Gulf Coast tend to see far more than a place like Maine or Alaska.

But it’s worth remembering that these factors only play a small part in overall rates. A driver’s record behind the wheel and their vehicle make and model matter far more when setting premiums.

Three tips to help drivers save on their car insurance in 2024

Those who don’t live in one of the 10 states above could see higher average annual premiums through no fault of their own. But by making the following three moves, it’s possible to secure a lower average rate.

1. Shop around

Every auto insurance company has its own formula for determining risk. Some have higher surcharges for young drivers, while others might penalize a driver more heavily for having poor credit or a DUI on their record.

The only way to know which companies offer the cheapest car insurance for a specific driver is to get quotes. Most companies have online tools that can provide an accurate price estimate within a few minutes. It’s worth getting at least three to five before deciding which company to work with.

2. Seek out discounts

Drivers usually don’t have to request that insurers apply discounts to their car insurance premiums. This typically happens automatically during the quote process. The only exception is for driver monitoring programs, which applicants have to opt into. This usually provides an upfront discount with the potential to earn future savings based on driving behavior.

Insurers commonly offer discounts for things like safe driving or bundling auto and home insurance. But some companies offer rarer discounts, such as savings for hybrid or EV owners. Those who qualify could do better by seeking out companies with these special savings opportunities.

3. Raise the deductible

Raising a car insurance policy’s deductible reduces its monthly premiums, sometimes significantly. The Insurance Information Institute found that raising the policy’s collision and comprehensive deductible from $200 to $500 dropped premium rates by 15% to 30%. Going to a $1,000 deductible resulted in savings of 40% or more.

Drivers interested in exploring this option may want to save for their new, higher deductible in an emergency fund if possible before making the change. Otherwise, they risk being caught without enough money to cover their out-of-pocket costs in the event of an accident.

Ideally, the above tips lead to an affordable rate, but if not, check again in a few months or after experiencing a major life event. Factors like getting married, buying a safer vehicle, or even just getting more experience behind the wheel can all translate to lower car insurance premiums.

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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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There’s nothing wrong with seeking out help in meeting your financial goals. Read on to see how an advisor can be instrumental in attaining financial security. [[{“value”:”

Do you struggle with feelings of financial insecurity? You’re not alone. Just 64% of women say they feel financially secure, according to a survey from Allianz Life of women with an annual household income of $30,000 or more.

Given that, though, it’s surprising that only 33% of women currently have a financial professional they work with. But of those who do use a financial professional, the consensus is that doing so helps them feel better prepared for their financial future. And 73% wish they’d started working with a professional sooner.

Here are a few reasons why it can be worth hiring someone to help you work toward your financial objectives.

1. You can make the most of your income — no matter what it is

Saving for big milestones like buying a home, putting a child through college, or retirement is going to look different for someone making $50,000 a year compared to $150,000. But these goals are achievable regardless of whether you’re a higher earner or a more moderate one.

A financial professional can help you map out your goals and figure out how to meet them based on the income you have available to you. They can also help you optimize tax-advantaged accounts to eke out the most savings.

2. You get the benefit of someone who’s not emotionally invested

When you’ve been living in the same rental with an absentee landlord for years and you want nothing more than to buy a home of your own with more space and better amenities, you may be inclined to push other financial goals aside to make that happen — even if that’s not the most financially prudent path.

The good thing about working with a financial professional is that they’re not approaching these decisions from an emotional standpoint like you might be (and understandably so). Rather, they can look at the numbers and be more objective while delivering spot-on advice.

For example, in this situation, you may be inclined to put IRA contributions on the back burner to focus on saving for a home. This might seem like the best thing to do in your mind. But a financial professional may be able to explain why it’s not your best course of action (namely, because it might mean losing out on tax breaks and struggling financially later in life).

3. You can get peace of mind

Maybe the idea of never being able to retire is making you lose sleep at night. Maybe you’re worried your child is going to be saddled with educational debt the same way you were.

These are the kind of thoughts that can wreak havoc on your mental health — and might even impact your performance at work.

The upside of working with a professional is they can set you up with a plan that not only works, but provides reassurance. That could work wonders for your general outlook and make you a happier person.

How to find the right financial professional

So you’ve decided you deserve help with managing your money. Great! Now you just need to find the right person for the job.

Your best bet is to ask friends, colleagues, and neighbors if they have someone they can recommend as a starting point. But get several recommendations and consider meeting with a few different people to get a sense of how they work.

Before you make your final decision, you should also make a point to:

Find out if the professional you want to use is a fiduciary, which means they’re required to put your best financial interests first at all times.Check your financial professional’s credentials.Make sure you understand and are comfortable with their fee structure (you may be charged an hourly rate, or you may be charged a percentage of the assets they manage for you).Make sure you’re happy with their communication style (some professionals will want to meet in person regularly, while others might do a call once or twice a year)

All told, working with a professional could be one of the best things you do for your finances. So it pays to at least consider giving one a chance.

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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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Consistent accounting is vital for starting a small business. Learn four ways to keep your accounting practices simple. [[{“value”:”

By the time a business has been around for 10 years, there’s a dismal 70% failure rate. However, that means 3 out of 10 new business owners are still going strong a decade into their venture. You must believe you will be among the 30% who will start a business, learn on the job, and watch that business thrive.

Part of thriving is mastering small business accounting, and these tips can help.

1. Keep detailed records like you’re a world-class detective

Detailed financial records act as a snapshot, allowing you to quickly see how your business is doing. Do you have more money coming in than going out? Are you growing at a rate that pleases you? Are there any holes in your business plan that you can plug?

Keeping detailed financial records can either be accomplished by hand or by using one of the great accounting software programs available. Or it may be accomplished through a combination of the two.

2. Keep your receipts like you plan to test it for DNA

There are a number of solid reasons to hold tight to your receipts.

Receipts allow you to do a deeper dive when you’re trying to remember the specifics of a transaction.The first paperwork a tax professional will ask you to provide is receipts.You’ll need the receipts available if a customer or client returns to you with a question.

Here are two common ways to save your receipts without creating clutter:

Keep them neatly organized by job in a physical filing cabinet.Create an electronic filing system.

3. Understand your tax obligations as though you enjoy paying them

A solid tax software program can help you determine precisely how much you owe to your state and the federal government, and when it should be paid. Some software is also sophisticated enough to answer tax questions and help organize financial records.

Whether you tackle taxes on your own, pay an outside accounting service to oversee your taxes, or use a tax software program, it’s important to understand your financial obligation so you never face fines or penalties.

4. Create a budget, but plan for it to evolve

A budget is the best way to manage your finances and is critical to the success of your enterprise. It will help you stay on track, know where your money is going, and spot changes that need to be made. In short, a good budget should help you waste less and put more money into your business checking account each year.

The first budget you create is likely to look nothing like the budget you depend on a few years into the business. That’s because you’ll have a better idea of how much money you routinely have coming in and going out each month, and you’ll also have a clearer picture of where you want the company to go.

Finally, help is available

Small business owners are fortunate to have access to mentoring programs led by entrepreneurship experts who are willing to meet with you regularly to provide the advice and support you need to be among the 30% of businesses that make it. For example:

The Small Business Mentorship Initiative (SBMI): Offers resources from entrepreneurs and executives — people who want to help you achieve your goals without making the most common mistakes made by new business owners.SBA Mentor-Protege Program: Partners small business owners with experienced mentors who assist them in winning government contracts.SCORE Business Mentoring: Provides free advice to small business owners via phone, video, and email. Like the first two programs, it’s run by entrepreneurs willing to share their wealth of experience and knowledge.Small Business Development Centers (SBDCs): Independent organizations providing resources and expertise to new business owners in major cities. In addition to mentoring, SBDCs provide business counseling and training programs.

It would be dishonest to say that running a small business is easy. What is true is how satisfying it can be, even if there’s a learning curve to overcome. What no one ever seems to mention is the sheer wealth of knowledge you’ll gain as a business owner, and it all starts with a good idea, a solid plan, and consistent accounting practices.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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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Have a college graduate in your life? Read on to see why the gift of cash may be your best option. [[{“value”:”

College graduation season is now upon us. And if you’re racking your brain trying to figure out what to get that special graduate in your life, you’re not alone.

You may be inclined to purchase them a new laptop, or a new gaming system, or perhaps something for their new apartment, like a side table or lamp. But here’s why the gift of cash could be your best idea yet.

1. They can use it to pay off existing debt

Many college students graduate with debt, whether in the form of government loans or a credit card balance. If you give the gift of cash, they can use that money to pay down their debt and limit the amount of interest that accrues against them.

Also, being in debt can be stressful. Graduating college with debt can be a tough way to kick off young adulthood. The gift of cash could make it possible for your recipient to get ahead of that debt and enjoy the peace of mind that comes along.

2. It can be the foundation of an emergency fund

An emergency fund is something that many college graduates will have to build up over time. But if you give a cash gift, and so do other members of your family, then your recent graduate may be able to approach their first job with a solid savings cushion.

Let’s say your college graduate is about to rent their first apartment and take on car payments for the first time. If they were to lose their job after committing to those expenses, their financial situation could quickly deteriorate. So helping them build an emergency fund is actually a really wonderful thing.

3. They can invest it and grow it into a larger sum over time

When you give the gift of cash, your recipient has many options. And one thing they may decide to do is invest the check you give them rather than spend it. That could do a lot of great things for their future.

Let’s say you decide to give a $200 cash gift. If your recipient invests that money in the stock market, they might enjoy a 10% yearly return on that sum over time, since that’s consistent with the market’s average return over the past 50 years. In that case, in 50 years from now, that $200 gift could be worth almost $23,500.

4. You don’t have to worry about getting them something they don’t need or want

You might buy your college graduate a nice bag that just isn’t their taste. Or you might get them a Smart Watch they don’t really end up using.

When you give the gift of cash, you don’t have to worry about disappointing your recipient, and you don’t have to burden them with returning something that isn’t useful to them. Even if they don’t save or invest that money or use it to pay down debt, they can at least go out and buy something meaningful to them, whether it’s a physical item or an experience.

Many people worry that the gift of cash is impersonal. But chances are, your recipient will appreciate it immensely. So don’t feel bad if you decide that cash is the way to go.

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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 Costco Executive membership costs more money but comes with added perks. Watch for these three signs that you should upgrade. [[{“value”:”

Costco has two membership tiers. You can become a Gold Star member for $60 a year. Or you can upgrade to the Executive membership for $120 a year. While both memberships share some common traits, including access to the warehouse club, there are important differences between them as well.

Deciding which one is better for you isn’t always easy, but if you’re currently a Gold Star member, you should watch for these signs that suggest an upgrade is worth it.

1. You’re spending at least $3,000 a year at Costco

If you spend at least $3,000 per year at Costco, there’s no question about it. You should upgrade to an Executive membership. This membership tier comes with an annual 2% reward on qualifying Costco purchases. You can earn up to $1,000 per year in total cash back.

A little quick math shows that if you spend at least $3,000 at Costco annually, a 2% reward would equal $60. That’s enough to cover the upgrade to the Executive membership, which makes it essentially free. Each additional dollar you spend on top of that will net you bonus cash back that puts more money in your pocket.

2. You’re booking a trip through Costco travel

Costco has an awesome travel service that allows you to score bargains on trips across the globe. Any Costco member can book travel, but Executive members get to earn the 2% rewards mentioned above when they do.

Not only do you get the bonus cash back, but many vacation packages offer additional special deals to Executive members. For example, if you book a vacation package at the Hyatt Regency Grand Reserve Puerto Rico and you’re a Costco Executive member, you’ll get a $100 resort credit to use on your trip.

Similar upgrades for Executive members are also offered at around a dozen other destinations including packages in the Dominican Republic, Puerto Vallarta, Cook Islands, and more. The added benefits you get can more than cover the extra $60 you’re paying for an Executive membership.

3. You’re buying insurance coverage

Costco offers a variety of options to help you get insurance coverage, including pet insurance, auto insurance, and homeowners insurance.

Executive members who get covered through Costco are entitled to extra benefits when they put their protection in place. For example:

Executive members will get their $15 enrollment fee waived if they sign up for Figo Pet Insurance coverage. Free roadside assistance is provided to Executive members who sign up for auto insurance coverage.Insurance buyers with Executive membership will be eligible for lifetime renewability.Home glass repair reimbursement is available to Executive members who buy homeowners insurance coverage.You can get Home Lockout Assistance if you’re an Executive member who buys home insurance through Costco.

These additional perks can provide significant value and are, by themselves, often worth paying the extra $60 to upgrade to Costco’s higher-tiered membership plan.

Remember, you get to take advantage of all of these benefits when you upgrade your membership — as well as other discounts on partner services, as well. There’s plenty of reasons to give Executive membership a try.

The good news is, if you aren’t satisfied, Costco will allow you to downgrade or cancel your membership at any time and receive a refund. So if you regret becoming an Executive member, you can alway drop back down to the Gold Star tier.

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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Hyatt Hotels. The Motley Fool has a disclosure policy.

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A Costco membership could be useful even if you won’t have kids living at home anymore. Read on to see why. [[{“value”:”

Having your children grow up and move out of your home can be an emotional thing. It’s not easy going from having a family under your roof to it being just you, or you and your spouse or partner. So it’s important to give yourself grace during that transition.

Now, once you become an empty-nester, it could pay to make some changes to your spending. For example, if it was really your kids who watched cable TV, not you, then you may want to cancel that service once they’ve moved out and free up space in your budget. You may also be reconsidering your Costco membership if your kids won’t be living at home anymore.

At first, you may be inclined to just get rid of your Costco membership since you’ll no longer be feeding as many people. But here are a few reasons to keep that membership, even if your household size is shrinking.

1. You still need to eat

Maybe you won’t be feeding two or three kids every day like you used to. But you still need food. And if you have a spouse or partner, so do they. If you do a lot of cooking, it can still make sense to buy certain products in bulk from Costco and enjoy the savings.

In fact, let’s say it’s going to be just you and a spouse, but you eat a ton of fresh produce. If you’re able to finish bulk packages of fruits or large amounts of vegetables before they spoil, then why not continue to get them at Costco?

Also, as an empty-nester, you’ll no longer have to cater your meals to your children. That may give you the wiggle room to cook the meals you want. And if Costco carries a lot of the ingredients you prefer to use, then you stand to save money.

2. You can still benefit from household products and personal care items

Chances are, it’s not just food you buy at Costco. Maybe it’s also where you get your shampoo, household cleaning supplies, and vitamins and supplements. Those are all things you’re still going to need, even as an empty-nester. So it could pay to stick with Costco to save on those purchases.

For instance, if you take a calcium pill daily, the price at Costco is only $0.03 per pill. Even if you buy a bulk supply from Amazon, you’re still looking at $0.04 per pill.

Similarly, right now, Clorox all-purpose cleaner is just $0.09 per ounce online at Costco. Amazon’s largest Clorox bottle has you paying $0.11 per ounce.

3. You can take advantage of Costco’s travel service

It’s a lot easier to travel on your own or with just a spouse than with kids. Not only is it less expensive, but you don’t have to worry about your kids’ schedules.

If you think you’ll do more traveling as an empty-nester, then it could pay to keep your Costco membership so you can benefit from the chain’s travel services. Booking a cruise or package through Costco Travel may save you not only money but also time, since you’ll have access to different deals all in one spot. Plus, if you call Costco Travel for help, a customer service representative can help you navigate your choices.

You might think it makes sense to ditch your Costco membership as an empty-nester. But clearly, there are plenty of good reasons to keep it.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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