Money Management

Discover feng shui tips to boost your finances. Read on to learn how to harmonize your wealth today. [[{“value”:”

Have you ever considered that the arrangement of your living space could influence your personal finances? As someone who’s grown up with a feng shui expert for a mom, I’ve seen firsthand how this ancient Chinese art of placement can create harmony between individuals and their environments.

Feng shui isn’t just about aesthetics; it’s about fostering better energy flow to attract prosperity. So, let’s dive into some insider tips for how to use feng shui to boost your finances and turn your home into a wealth-attracting powerhouse.

1. Declutter your space

The first step in any feng shui practice? Decluttering. Trust me, clutter is as much a barrier to your financial well-being as it is to good Chi (energy) flow. Start with the spaces where your financial activities happen — maybe it’s a home office or that nook where you sort out bills or check up on your budget every month. Keep these areas neat, organized, and clear of items you don’t need. This not only clears your space but also your mindset, paving the way for financial clarity and success.

2. Activate your wealth corner

In feng shui, there’s something called the Ba Gua, an energy map, and according to this, your wealth area is the southeast corner of your home or office. First things first: find this corner and clear it of any clutter or broken items. To activate this zone, add elements that symbolize wealth — perhaps a lush jade plant or a gently bubbling fountain. Water represents wealth, and its flowing nature mimics the flow of money into your life. It’s all about setting the right stage for abundance to come in.

3. Use colors and shapes strategically

Colors and shapes are not just decor elements; they’re powerful tools that can boost your financial success. Want to know a secret? Purple, red, and green are like the VIP colors of wealth in feng shui. Consider finding a purple pillow or hanging some red curtains in your wealth corner. As for shapes, circles are great as they represent metal and echo the energy of money and riches. It’s about subtle cues that align your space with wealth vibes.

4. Introduce symbols of wealth

In feng shui, certain symbols like Chinese coins tied with red string, gold ingots, or a wealth vase can draw prosperity your way. Place these in your wealth corner to attract financial success. These aren’t just decorations; they’re powerful symbols that set your intention for wealth and help manifest it. Make sure these symbols harmonize with your space aesthetically — they should look like they belong there.

5. Focus on the front door

Your front door is literally the entry point for all the opportunities in your life, including financial ones. It’s known as the “mouth of Chi,” so you want to make sure it’s inviting and unobstructed. A clear, well-lit path to your door invites positive energy (and opportunities) inside. Maybe add a new doormat or give the door a fresh coat of paint — black and blue are good choices, as they symbolize water and abundance.

Feng shui is about more than just rearranging furniture; it’s about setting intentions and creating an environment that supports those intentions, including financial prosperity. It’s about the psychology of money, too. With these tips — decluttering, activating the wealth corner, using strategic colors and shapes, introducing symbols of wealth, and focusing on the front door — you’re not just decorating; you’re inviting wealth into your life. And remember, the key is in your intention; be clear about what you want to attract, and let the energy do the rest. Here’s to a wealthier home environment!

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Credit card rewards can make travel more affordable, but there are other ways to save on travel. Find out why one writer is booking discount flights to save. [[{“value”:”

I’ve written a lot about my passion for travel. Every month, a portion of my income is automatically transferred to my vacation fund to pay for future travel. Doing this ensures I prioritize this personal interest and makes my life easier when it comes time to plan because I don’t have to worry about how I will afford it.

I’ve been booking discount flights lately instead of using my credit card rewards. I’ll share with you why this has been my recent strategy.

Discount flights are a win for my wallet

If you’re like me, you enjoy visiting new places but don’t love feeling broke after booking a hotel or flight. I value a good deal even when my personal finances are in good shape. So I’m always looking for small ways to save money when traveling so I can continue exploring the world while keeping more money in my checking account.

I’m a fan of using rewards credit cards. I earn cash back, miles, or points when I swipe my credit cards. This is an excellent way to get rewarded for my everyday spending. While I like using travel rewards credit cards and will continue to book award flights with my earnings, I’ve been focusing on booking flight deals during the last few months.

I subscribe to a flight deal service, Thrifty Traveler Premium. I pay about $100 a year for this paid membership, and in return, I receive flight deal email alerts. I’ve scored some incredible deals using services like this. Since I’m a freelance writer with a flexible schedule, I can book the deals that appeal to me the most, and these discounted flights have saved me a lot of money.

Here’s why I’ve been booking discounted flights

What I love most about booking discounted flights is the simplicity. I don’t need to consider the best way to use my credit card rewards for maximum value, search for the best flight option using a travel portal, or transfer my points to a travel partner to get the most out of my rewards.

I also love this strategy because it encourages me to visit new places. When using credit card rewards to travel, you’ll need to decide on a destination before planning your trip. When I book travel deals, I let the discounts I see determine where I go on vacation.

After finding a deal that interests me, I use a flight search tool like Google Flights to find the best dates to travel based on prices and my availability. Then, I book the flight directly through the airline. This is a stress-free way for me to start planning my next adventure. When I pay for my flights, I use a travel credit card to earn rewards for my spending.

Is a flight deal subscription right for you?

If you travel multiple times a year and typically fly to your destinations, flight deal subscription services can be a worthwhile investment to explore if you’re a fan of traveling and like to save money.

The costs of these services vary depending on the company and plan chosen, but you can expect to pay anywhere from $100 to $200 a year for a service that provides plentiful deals.

If you have a flexible schedule, you’ll likely get more use from a service like this. But I see deals of all types, not just last-minute deals. So, you don’t need to be self-employed or a remote worker to get value from this subscription.

Travel doesn’t have to be expensive

It pays to look for ways to save money on travel. It’s essential to always keep your finances in mind, including when making travel plans. Booking flight deals and using credit card rewards are two strategies that can save you money on travel costs.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle 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.

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Have you been delaying or procrastinating about opening a high-yield savings account? It’s not too late to make your life better. See how. [[{“value”:”

This is a really good problem to have, but it’s still a problem: Sometimes if you have extra cash, people can feel indecisive about what to do with it. Where should you keep your extra cash? Should you open a CD, buy stocks, or put it in a retirement savings account like an IRA?

All of these questions can feel paralyzing, which can lead people to make one big mistake: leaving their cash in a zero-interest bank account.

Instead of earning no money on your cash (and actually losing purchasing power to inflation), one simple move that you can make anytime is to put your extra money into a high-yield savings account. It’s never too late to start earning interest on your cash.

Let’s look at a few reasons why opening one of the best savings accounts can improve your life.

1. Your money starts making money

When you put your extra cash into a high-yield savings account, you will immediately start earning interest. Depending on the compounding schedule, you might see interest credited to your account as soon as one month after opening it. It feels inspiring and empowering to see that number in your bank account actually get bigger, with no extra effort required from you.

People work hard for their money, and you deserve to see your cash work harder for you. Don’t settle for a zero-interest checking account or near-zero interest savings account. The best savings accounts (as of April 24, 2024) are paying 5% APY or higher.

2. No more cognitive load and mental burden

“Analysis paralysis” can be one of the biggest hassles of managing your personal finances. Trying to decide what to do with your money can be exhausting — should I pay off this debt faster, should I save more for retirement, how can I improve my budgeting?

Sometimes people end up making a bad decision (or no decision, which can also be bad) just because they’re tired of thinking about the decision. This mental fatigue is also known as “cognitive load.” When people have to juggle too many details and decisions, they sometimes just procrastinate, shut down, and give up.

Opening a high-yield savings account can be a big relief, because it’s a proactive decision and it takes one more thing off of your personal finance to-do list. Instead of worrying about “where should I put my cash, what should I do?” — you decided, it’s done, congrats!

3. You still have flexible access to your cash

One reason I’m not a big fan of CDs is that they require you to lock up your money. You have to commit your cash to the CD for a certain period — and if you have to pull your money out early, you’ll owe an early withdrawal penalty.

Savings accounts don’t put you in this predicament. With a savings account, you can still earn a high APY (sometimes as good as or better than the best CD rates), and you have flexible access to your money. If you put money into a savings account today, and your situation changes in two months and you need to spend it, you’re allowed to do that.

4. You can gain motivation to save more

Some people might discover that, once they’ve opened a high-yield savings account, they start to feel more energized and focused on saving money. Seeing the numbers get bigger each month can inspire you to keep saving.

Now that you have a dedicated savings account that’s earning a high APY, you can keep up the momentum! Saving might suddenly feel more real, more possible, more trackable, and more doable now, compared to the days when all your cash was just piling up in a checking account.

5. No more missing out on “free money”

Imagine that your bank said to you: “We’re going to take 5% of your paycheck this year. That 5% now belongs to us.” You’d be furious, right? You’d close your accounts and take your money to another bank or credit union.

So why do so many people put up with banks that don’t pay high interest rates on savings? It’s not exactly the same as “losing” money from every paycheck, but if your money is in a low-interest bank account, your bank is causing you to miss out on free money.

Bottom line

Opening a high-yield savings account (or one of the best money market accounts) doesn’t just improve your personal finances — it improves your life. By no longer having to worry about indecision or missing out on free money, you can start actually gaining extra cash each month. Earning a bigger yield on your savings can also give you new motivation to improve your budgeting and find more money to sock away in the bank.

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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.
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While many states lag behind, a federal school system could pave the way for financial literacy classes in high schools across the country. Here’s how. [[{“value”:”

Many young adults are woefully unprepared to manage their personal finances. One approach to solving what some are calling a financial literacy crisis is to supplement the education that American children already receive. Implementation of financial literacy programs is typically left to state governments, but one House bill would mandate such a program in Department of Defense schools, and bring financial education to tens of thousands of students.

Flunking financially

Financial illiteracy comes with an enormous price tag for Americans and their families. The International Federation of Accountants estimates that a lack of personal finance knowledge costs U.S. adults nearly half a trillion dollars each year. So how do we promote financial proficiency in a nation where an estimated two-thirds of adults can’t pass a basic financial literacy test? Some say to start in schools.

There is no federal government mandate requiring that public schools teach financial education concepts. The decision of what and how to teach in public schools is largely left to each state to decide. And while more states are recognizing the long-term benefits of teaching about personal finances, support for financial education in schools is disjointed at best.

However, a recent wave to introduce personal finance classes in many states is picking up steam as the benefits of such curricula are becoming increasingly understood. So, are financial literacy classes coming to high schools around the country? With each state that puts personal finances in the classroom, it seems increasingly likely.

What’s in the bill?

Riding the momentum behind financial literacy in schools is a short bill that could have broad implications at home and abroad. The Department of Defense Student Financial Literacy Act would add a personal finance requirement to the Department of Defense Education Activity (DODEA) system.

The bill is a quick read, adding a requirement for students to complete a “dedicated course of instruction in financial literacy” before they can graduate from a DODEA school. What that course might include is left open to interpretation in the bill’s current state, but such a course will likely cover fundamental concepts such as budgeting, saving money, and managing debt. A personal finance curriculum designed by the DODEA could provide a useful template for states looking to introduce their own financial literacy programs.

DODEA schools provide the families of military service members with a quality education, regardless of where they are stationed. The DODEA system provides K-12 education to an estimated 66,000 students in 160 schools across 11 foreign countries, seven states, and several U.S. territories. Reputed to be one of the best school systems in the country, the DODEA program could have a major impact on the conversation surrounding financial literacy in education.

What comes next?

The bill was introduced before the House last year and referred to the Committee on Armed Services and the Committee on Education and the Workforce. These committees would likely continue to flesh out the bill, adding clearer definitions around the required course of study should the bill become law. But there are a variety of hurdles to clear before the passage of the bill.

Turbulence in the House could prevent any action on the bill, much less a floor vote, before the legislative session expires. However, the bill enjoys broad bipartisan support, with 19 co-sponsors representing voters across the country. Even if the bill does not pass through the 118th Congress, lawmakers clearly have an appetite for financial literacy in the classroom.

While some states have introduced personal finance classes to their curricula, the fight against financial illiteracy is far from uniform across the country. The Department of Defense Student Financial Literacy Act could further the cause by introducing such a curriculum to highly-regarded DODEA schools. The political future of the bill is unclear, but representatives on both sides of the aisle have voiced their support.

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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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Gen Zers who want to save more money for retirement should open a Roth IRA in 2024. Here’s how this special account can give you tax-free growth. [[{“value”:”

Gen Zers are often known for their TikTok personal finance trends and their gloomy feelings about retirement planning, but this young generation also has a few unique advantages. If you’re in your 20s, if you’re just starting your career, there’s one special retirement account that you should consider opening: a Roth IRA.

If you qualify for a 401(k) or other workplace retirement plan, you should use that, too — at least contribute enough to get the full amount of your employer’s matching contributions. But whether you have a workplace retirement plan or not, Gen Z investors should strongly consider opening a Roth IRA as part of your investment strategy.

Let’s look at why opening a Roth IRA is such a great financial move for Gen Z.

What are Roth IRAs and how do they work?

Roth IRAs are one type of individual retirement arrangement (IRA), a tax-advantaged retirement savings account that you can use to save and invest for your future. The other kind of IRA is a traditional IRA. With a traditional IRA, you can get a tax deduction on the money you put in, similar to a 401(k). Your money grows tax-deferred, and then you pay taxes on the money you take out in retirement.

Roth IRAs are different. You don’t get that 401(k)-style tax break on the money you put in. But instead, your Roth IRA money grows tax free, and then you can take tax-free withdrawals in retirement. The Roth IRA gives you a source of tax-free income in retirement! This tax-free advantage makes it a great choice for people who can use a Roth IRA to save for the future.

For 2024, Gen Zers can put up to $7,000 into all of your IRAs (traditional and Roth combined).

Why Roth IRAs are Gen Z’s best friend

Roth IRAs are a great retirement savings option for people who are young, single, and at the early stages of their careers. That’s because if you’re (for example) 24 years old and working at your first “real” job, you might be in the lowest tax bracket of your life. Your income is likely to go up during the rest of your working years, and so will your marginal tax rate.

For example, according to McKinsey research, as of 2023, the median salary for Gen Zers aged 20-24 was $38,325. Let’s say that you’re single and your salary is a bit higher than the median: $45,000 — that would put you in the 12% tax bracket for 2024. But if your salary goes up by just a few thousand dollars, you’ll be in the 22% tax bracket.

This means that, at this early stage of your career, every dollar you can afford to save for retirement is getting taxed at the lowest rate of your life. So instead of trying to maximize your tax breaks by putting extra cash into a 401(k) or traditional IRA, it makes sense to just pay that 12% marginal tax rate and then let your cash grow tax free in a Roth IRA.

(There are some income limits for who can use a Roth IRA, but you have to be a pretty high earner with an income of $146,000 or more for singles. Most Gen Zers are not yet at such a prosperous level of income.)

How to use a Roth IRA and a 401(k)

You don’t have to choose between a Roth IRA and a 401(k) or other workplace retirement plan — if you have enough spare cash, you can and should use both. If your employer offers to match your 401(k) contributions, be sure to put in at least as much money as it takes to get that full match.

For example, some companies might match 50% of the first 5% of your salary that you put into your 401(k). So if you make $45,000 per year, you’d put $2,250 into your 401(k) and get $1,125 of employer matching money, for a total of $3,375 invested for retirement. Get that “free money” if you can, don’t leave it on the table.

Using a Roth IRA can give you an extra retirement savings account beyond your 401(k). Continuing from the example above, if you put $200 per month into a Roth IRA, by the end of the year you’d have $2,400 saved — for a total of $5,775 invested for retirement. The best Roth IRA accounts let you invest your money in a wide range of stocks, bonds, and ETFs. Sometimes your Roth IRA account might offer better, more diversified investment options than your 401(k) plan.

Bottom line

If you’re young, just starting your career, and in a lower tax bracket, opening a Roth IRA can be a smart financial move to save for your future. This makes the Roth IRA a good fit for Gen Zers who want to save extra cash for retirement beyond the 401(k) — if you’re in the 12% tax bracket, getting decades of tax-free investment growth is a bigger benefit than a 12% tax break in 2024.

Before you decide to put cash into a retirement account, make sure you understand the rules and limits. And don’t be in too big of a rush to lock up your money in tax-advantaged accounts if your emergency savings fund is not yet where you want it to be. Some Gen Zers might prefer to put more cash in a savings account for now.

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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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Does marriage make people richer, or do richer people get married? See how the benefits of marriage could help couples build wealth. [[{“value”:”

Despite high divorce rates and dozens of bad sitcoms about bickering married couples, there is strong evidence that marriage can be good for your money. Married couples tend to have more money than unmarried people, even non-married couples who live together. But is marriage the reason people have more money?

A big debate in America in recent years has focused on the question of whether marriage makes people richer, or if richer people are more likely to get (and stay) married. There seems to be something about living together as a couple, combining two incomes and other resources, and enjoying some unique tax benefits, that can make marriage a good way to build wealth.

This doesn’t mean that everyone should marry for the benefit of their finances. You can have a happy life and a prosperous bank account whether you’re single, married, or living with an unmarried life partner or multiple roommates. But it’s worth considering the financial implications of marriage.

Let’s look at a few reasons why marriage might be good for your personal finances.

1. Marriage can help you save on household bills

By combining your personal finances with another person, you can save money and share expenses like rent, utilities, and groceries. Living together as a couple, whether you’re married or not, can have the same beneficial effects.

But there seems to be something about marriage that makes people’s financial lives a little more stable and prosperous for the long run. According to Federal Reserve data, from 1989 to 2016, the typical married household had three times as much wealth as a typical single person or unmarried couple.

2. Married people are more likely to be homeowners

Getting married seems to be helpful for people who want to achieve big life milestones, like buying a home. The Fed’s data also shows that young married couples are more likely to be homeowners than singles or unmarried couples.

Especially during times of high mortgage interest rates, surging housing costs, and big down payments, it can be hard for single people to buy a home. Married couples can combine their savings for a down payment. And although marriage has no direct impact on credit scores, if you and your life partner can help each other with budgeting and paying bills on time, you might find that marriage can help you build credit.

Again, some of these advantages and money moves are not unique to marriage. Any couple, married or not, could decide to combine their finances to buy a home together. But there seems to be something about being married that makes people more likely to become homeowners. This doesn’t mean that married people are “better at money.” It might just mean that they have higher incomes or more money to begin with. The kinds of people who are willing to commit to marrying each other might also be more interested in committing to a mortgage payment.

3. Married people can get some tax advantages

It’s not entirely accurate to say that “married couples get tax breaks.” The truth is more nuanced. The standard deduction for single people is $14,600 as of 2024, and it’s $29,200 for married couples filing jointly — exactly twice as much as a single person’s deduction.

The IRS tax bracket limits for 2024 for married filing jointly are also about two times the amounts for single filers. For example, if you’re a single person with $50,000 of income, you’re in the 22% tax bracket for 2024. If you and your spouse file jointly and both earn $50,000, for a total of $100,000, you’re also in the 22% tax bracket. As a couple, you still owe the same amount of income tax on that total amount of income, regardless of your marital status.

But being married can provide some indirect tax advantages. If your spouse earns less money than you, that lower-earning spouse could pull you into a lower income tax bracket. For example, if you earn $150,000 per year, if you were single, you’d be in the 24% tax bracket. But if you’re married filing jointly, and your spouse only earns $40,000 per year, your combined income of $190,000 would be in the 22% tax bracket.

4. Married people can build wealth and invest together

Along with tax advantages, married couples can get some hard-to-measure (but real and powerful) financial flexibility to save and invest for retirement. For example, non-working spouses can also contribute money to an individual retirement account (IRA) — effectively doubling the amount of money you can sock away for retirement as a couple, even if only one spouse has a job outside the home.

Married couples with two jobs can also shop around for better health insurance and other benefits, saving money on out-of-pocket healthcare costs. When you’re married, you are fully a “team” in the eyes of the tax authorities and the financial system, and this can help you get a better deal out of life.

Bottom line

Getting married (and not just living together as a couple) can offer some unique benefits to save money and build wealth. But marriage is not risk-free; many marriages end in divorce, which can be financially costly. Some marriages are unhealthy, abusive, or financially damaging, and people are right to remove themselves from a bad situation.

But if marriage works for you, it can be worth it to your bank account. Combining personal finances with someone you love and trust can make both of you better off. The extra protections and financial flexibility you can have as a married couple can make it easier to max out your 401(k), IRAs, or other tax-advantaged accounts like a health savings account (HSA).

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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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