Money Management

Are you a busy gig worker with credit card woes? You’re not alone. Here are some common issues and ways to overcome them. [[{“value”:”

If you’re a gig worker who uses credit cards, it’s best to take extra care. Credit cards are a valuable financial tool that can make it easier to pay bills, and you can earn valuable rewards for your spending. However, some gig workers experience unique struggles when managing their credit cards. I’ll outline some challenges to watch out for and suggestions to help you overcome them.

1. Affording unexpected expenses

No matter your work situation, emergencies can happen when you least expect them to, and some are more costly than others. However, some gig workers operate on a limited budget, and they may have minimal extra funds to cover unexpected costly bills that come their way. If you have a meager emergency fund, other options exist to pay for unforeseen expenses.

Instead of charging your everyday credit card for a costly bill, consider applying for one of the best 0% APR credit cards. Some credit card issuers offer an intro 0% APR on purchases for a set time. During the promotional period, no interest is charged as long as you pay your debt off before the promotional period ends. This is an excellent strategy to finance a pricey purchase.

2. Income inconsistencies

It’s common for freelancers and gig workers to experience income fluctuations. You may have busy seasons where your earnings are steady and plentiful, but if opportunities slow down, your income may change.

This can make managing your money challenging, especially when paying your credit card bills. But remember, it’s best to pay your entire credit card statement in full to avoid expensive credit card interest charges.

One way you can be prepared to pay your bills even when money is tighter is to set aside extra cash in a high-yield savings account when your earnings are plentiful. Doing this can provide a safety net later if work slows down.

3. Forgetting to pay your bills on time

Life can get extra busy when managing a small business or handling gig work. If you struggle to remember due dates when work is busy, you may forget to pay your credit card bills on time.

Missed and late payments are bad news for your credit because they can result in negative marks on your credit report. What’s more, many credit card companies charge late fees when you pay your bill late. This added cost can negatively impact your personal finances.

One way gig workers can set themselves up for success is to use tools and alerts to stay on track so they no longer forget to pay their bills. You can opt in for payment due date reminders through your online credit card account, so you stay caught up.

Another option is to set up automatic payments, so your credit card bill is paid automatically every month. This way, you’ll no longer need to remember to make payments manually.

Use credit cards with care

If you’re a freelancer or gig worker, there’s no need to avoid using credit cards. They can be helpful. But ensure you take extra care to set yourself up for success when using them. Consider applying for a business credit card if you earn business income through gig work. These credit cards may provide valuable perks that help you run your business more effectively.

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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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Want to get the best deal from travel rewards credit cards? See how to earn more than $2,000 of travel rewards from a Chase Trifecta. [[{“value”:”

I recently made the life-altering decision to go full throttle on travel rewards credit cards. Within one month, I applied for and opened an entire Chase Trifecta of credit cards, with the goal of maximizing my reward points. The three cards I chose were:

Chase Sapphire Preferred® CardChase Freedom Unlimited®Chase Freedom Flex℠

Not everyone should apply for this many credit cards so quickly. If your credit score is not where you’d like it to be, if you struggle with excessive credit card spending, if you sometimes miss payment due dates, then the risks might outweigh the rewards. Don’t be too blasé about opening new credit cards.

But I’m loving every minute of this new way of life! Travel rewards credit cards are already making a surprisingly positive difference in my personal finances, and I’m excited to keep learning and exploring.

Here are a few reasons why I chose each of these cards for my Chase Trifecta.

1. Chase Sapphire Preferred: Home base for travel rewards

The Chase Sapphire Preferred® Card was the No. 1 priority on my Chase Trifecta list — and not just because of the 75,000 bonus points welcome offer. My biggest reasons for choosing this travel rewards card are that it can serve as a “home base” for Chase Ultimate Rewards points and it offers a 25% multiplier on the value of reward points when you redeem the points for travel through the Chase Travel portal.

For example, if you have 50,000 points on your Chase Sapphire Preferred® Card, you could exchange them for $500 of cash back as a statement credit — or you can redeem them for travel purchases (flights, hotels, etc.) and get an extra 25% of value. So your 50,000 points are actually worth $625 of travel. (The 75,000 bonus points from the welcome offer are worth $750 if redeemed for travel.)

This 25% multiplier just feels like a much better deal to me than a regular cash back credit card, because travel (to me) is worth more than money. And that 25% multiplier effect plays out in surprising ways in my everyday spending decisions. For example, the Chase Sapphire Preferred® Card offers 3% points on restaurant purchases — but with the 25% travel redemption multiplier, that’s actually 3.75% if redeemed for travel. I’m now constantly doing mental math to think about how much money I’m earning toward future travel with everyday spending.

2. Chase Freedom Unlimited: Big points on everyday spending

One of the reasons to open a Chase Trifecta is that it helps you cover all your bases for maximum points across spending categories. I chose the Chase Freedom Unlimited® because it has “unlimited” 1.5% points on all purchases. You can use these points for cash back or transfer the points to your Chase Sapphire Preferred® Card and use them for travel. (I’m using all of my points for travel because of that 25% multiplier.)

Your exact details may vary, and terms apply, but the Chase Freedom Unlimited® also gave me an interesting welcome offer: 3% unlimited cash back on all purchases up to $20,000 in the first year. That’s a total of $600! Or $750 after transferring the points and redeeming them for travel with the 25% multiplier on the Chase Sapphire Preferred® Card.

3. Chase Freedom Flex: Fun bonus categories

As part of my Chase Trifecta, I also chose the Chase Freedom Flex℠. This card is really fun to use because it gives you 5% bonus cash back/points on up to $1,500 of purchases in specific categories, which rotate each quarter. It makes shopping into a fun little game. There was also a welcome offer of $200 bonus of cash back (redeemable as reward points for $250 of travel) after spending $500 within the first 3 months.

For example, during the first few months that my card account was open, the Chase Freedom Flex℠ was offering 5% bonus points on groceries and personal care (like salons, massage therapy, etc.). So every time my family bought groceries and every time I got a haircut, I was getting an extra 5% of bonus reward points — or 6.25% if redeemed for travel via Chase Sapphire Preferred® Card.

The new quarterly bonus categories for April–June 2024 are restaurants and Amazon purchases. So every $100 restaurant bill or Amazon delivery purchase that I pay for with the Chase Freedom Flex℠ is earning me points that are worth an extra $6.25 of future travel purchases. If you can max out the 5% reward bonus categories ($1,500 of spending per quarter, or $6,000 per year), you’ll get an extra $300 of cash back rewards — or $375 if the points are redeemed for travel.

Bottom line

Between the Chase Sapphire Preferred® Card, the Chase Freedom Unlimited® and the Chase Freedom Flex℠, within one year, I’m on target to earn a total of at least $2,125 of travel from my Chase Trifecta. And that’s just from the welcome offers and special bonus points, not including other everyday credit card spending.

The Chase Trifecta has been a great deal for me so far. I’m a happy Chase credit card customer, and I’m still excited to apply for a Chase business credit card or airline credit card. Apparently Chase has a strict 5/24 rule, where the bank won’t approve additional credit card applications if you’ve applied for more than five cards in 24 months. So I’ll be patient…for now.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, and Target. The Motley Fool has a disclosure policy.

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May is an ideal time to buy a CD, for a few key reasons. Read on to learn more about why you may want to take action now. [[{“value”:”

If you have a little bit of spare cash this month, you should buy a certificate of deposit (CD). Here are three great reasons why you may want to consider investing your hard-earned money in a CD sometime during the course of May.

1. Yields are very high

CD rates are extremely competitive right now. The Ascent’s guide to the best CD rates has multiple options above 5.00%, including some CDs offering rates as high as 5.15%. Based on how rates had been trending up until recently, this is an awesome — and unprecedented — rate.

As recently as July of 2022, it was difficult or impossible to imagine these yields. A great rate on a “high-yield” CD was generally around 3.00% or less. And during the COVID-19 pandemic, the most competitive CDs typically still offered extremely low rates that were under 1.00%.

It’s not often you can get such a safe investment offering a rate of 5.00% or higher. There’s no real reason not to take advantage of the opportunity, as long as you have money to commit that you won’t have to withdraw during the duration of the CD term.

2. You can make a short-term commitment and still get a good rate

Buying a CD right now also makes sense because you have a unique opportunity you may not see again for a while.

Traditionally, you get the best rates on a CD by opting for a longer term. This is called the term premium. Basically, it means banks pay you more to take the risk of locking your money up for a while.

Right now, the opposite is true. You can typically get better rates on CDs with terms of 12 months or less compared with CDs that require you to commit to stay invested for multiple years. This opportunity exists right now because banks don’t want to make a long-term commitment to pay today’s high rates for years into an uncertain future.

This means you don’t have to give up access to your money for years to get the best rates. You don’t have to take the chance of getting stuck in a CD for half a decade, even if rates don’t go in your favor. If you can put your money on the line for just a few months, you can score today’s high yields.

3. The Federal Reserve may lower rates sometime this year

Finally, you should open a CD in May before you lose the chance to benefit from the rates available now.

The number of CDs offering rates above 5.00% has already declined by more than 20% over the past four months. And that number could drop even further. That’s because the Federal Reserve has still made clear it wants to lower rates when inflation cools.

While this isn’t happening as quickly as anticipated, Chair Jerome Powell stated at a news conference after the most recent Fed meeting, “My expectation is that over the course of this year, we will see inflation move back down.”

The Federal Reserve’s target rate is around 2.00%, while inflation was at 3.5% in March. The Fed won’t drop rates until it has “greater confidence” things are moving in the right direction. But it’s not impossible to imagine that could still happen some time this year. If the Fed lowers rates, CD rates will likely fall, as banks are influenced by the central bank’s benchmark rate.

There’s little reason to take a chance and wait on CDs when the future is so uncertain. Buy a CD now to take advantage of the opportunity to earn a great return on an investment with very limited risk. If you don’t want to lock in for the long term, you can check out The Ascent’s guide to 12-month CDs paying great rates or even opt for a 3- or 6-month CD. Once it matures, you can reevaluate the situation and decide whether to stay invested or move your money elsewhere.

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

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