Money Management

Fuel is one of the top 10 expenses for many households. Find out how to earn big on those purchases. [[{“value”:”

If you ask most people to list their top 10 expenses, I imagine gas falls pretty high on the list. Which is likely the reason that almost every major credit card issuer has at least one or two cards that offer bonus rewards on gas purchases.

(Hybrid and electric car owners: Don’t leave just yet! Many issuers have expanded their gas rewards category to include electric charging fees.)

Despite all these credit card options, however, a lot of folks may not be making the most of their fill-ups. I think part of the problem is that many people don’t realize how much money they’re actually leaving on the table. So let’s take a look.

How much can a gas card really earn?

To get a fairly realistic view of what you can earn, I took a look at a few different mileage amounts, including the national average of 13,596 miles per year (according to the Federal Highway Administration). I also used AAA’s average $3.68 per gallon for gas prices, and the EPA’s average 26 miles per gallon rating.

Here’s what the rewards look like:

So, the average driver could be earning around $96 a year in gas rewards alone. That could cover about 26 gallons of gas, which would be two full tanks in a typical small car or one tank in a mid-size SUV.

If you have a particularly long commute or travel a lot for work, those numbers can jump quickly. A ride-hailing driver putting 30,000 miles a year on their car, for instance, would earn more than $200 a year in rewards with a top-tier card.

Don’t forget about welcome bonuses

The rewards you earn on your gas purchases aren’t the only way to profit off of these cards. Most of the top gas rewards credit cards will also offer a welcome bonus for new customers. These bonuses can easily be worth $150 or more in and of themselves.

Most welcome bonuses do require you to spend a certain amount of money within the first few months of owning the card. This may or may not be easy to do with gas purchases alone, depending on how much you drive. You may need to put some additional spending on the card.

The bright side here is that most cards with gas bonus categories also have other useful bonus categories. Gas and grocery rewards are a common pairing. But you can also find cards with dining and travel rewards added to the gas rewards.

Avoid low-earning gas station credit cards

While exploring your options, be sure to avoid any co-branded gas station credit cards. I know it’s somewhat counterintuitive — you’d think that gas stations would have good gas cards — but think of them more like store credit cards. The rewards rates are lower, and sometimes the cards are closed-loop (meaning you can only use them at the specific store).

Indeed, a lot of gas station credit cards don’t offer cash back at all. Instead, you’ll get a few cents off per gallon. When you do the math with the real cost of gas, the money you’ll save is almost always much lower than what you can earn with a regular gas rewards credit card.

With gas purchases taking up so much of our budgets, it makes sense to maximize those purchases with great gas rewards. And with so many card options out there, it’s never been easier to do so.

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Mindfulness is becoming a big growth category in the global wellness industry. See how MindTravel delivers unique services for meditation, music, and more! [[{“value”:”

Have you ever wanted to start a small business that would help people feel better? The personal wellness industry is a fast-growing space within the global economy, as people look for ways to enjoy better physical, mental, and emotional health. Especially after the stress, isolation, and illness of the COVID-19 pandemic, millions of people in America, and all over the world, want to pay for products and services that help them get healthier and feel good.

One intriguing small business that is helping people with their mental and emotional wellness is MindTravel, founded by Murray Hidary, a musician, composer, and meditation expert. Let’s look at what bringing mindfulness to small businesses could mean for the global economy — and what other entrepreneurs can learn from MindTravel.

Growing market for wellness and mindfulness products

According to data from McKinsey, the global market for wellness products and services is $1.5 trillion, with 5%-10% annual growth. This is a big opportunity for small businesses that can help people achieve higher levels of health and wellness. Mindfulness is one specific new category of growth within the global market for wellness products and services that was identified by McKinsey’s research.

Mindfulness is part psychology, part spirituality. Mindfulness can involve helping people feel mentally calm, reduce stress, be more aware of their emotions and attitudes, and achieve emotional stability and clarity. Some ways of including mindfulness in a wellness routine can include therapy, meditation, and stress-relief practices.

McKinsey also found that more than half of consumers want to prioritize achieving better mindfulness, and about half said that they wished more mindfulness products and services were available.

How MindTravel helps customers achieve mindfulness

Murray Hidary founded MindTravel (www.mindtravel.com) to combine music, meditation, and nature. This small business offers a series of live, music-driven mindfulness experiences and downloadable programs to help people enjoy the benefits of meditation — even beginners. MindTravel has hosted experiences in over 100 cities, with over 150,000 people participating.

Some of MindTravel’s meditation and music experiences include:

Silent walks

Groups of people listen to Murray Hidary’s piano music on headphones, while walking and meditating together in nature. This is a unique way to experience music, the outdoors, and meditation all at once.

Concerts

Listen to live piano music via headphones while enjoying an outdoor setting like a beach, park, or hillside. Murray Hidary’s MindTravel creates communal experiences with music-driven meditation and fresh air.

Underwater meditations

Some MindTravel events happen at pools, where you can float in the water with a group of people while immersing yourself in music and guided meditation. Water meditation can be especially relaxing and restorative, as some people feel it to be like a “return to the womb.”

Mastery courses

In addition to the MindTravel group events, Murray Hidary also offers personal development and meditation courses. Most of these courses offer a free trial.

Bottom line

Mindfulness and meditation don’t have to be a solitary endeavor. MindTravel offers a unique way to experience meditation, music, and nature in a group setting, guided by beautiful piano compositions. If you’d like to learn more about meditation or try a fun experience for a night out, check out MindTravel (mindtravel.com).

Do you feel like you have unique skills and perspectives that could be useful in starting a business in the mindfulness or wellness space? McKinsey’s research says that this field is growing fast; many people are tired of feeling sad, stressed, and lonely, and they need your help!

Healing the world can sometimes start with a single step and a simple act of human connection. Small businesses that help people with wellness and mindfulness could be part of a much larger service that our world needs more than ever.

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Cash back credit cards are Americans’ favorite type of card. Learn how these cards could end up being expensive, though. [[{“value”:”

Cash back credit cards are the U.S.’s most popular type of credit card — roughly 68% of Americans have one, according to credit card research by The Motley Fool Ascent. And what’s not to like? This type of credit card helps you save money by giving a percentage of your purchases back. The very best cash back cards, in fact, can earn 2% to 6% back on essential spending, like gas and food.

But even with so much earning potential, cash back cards also come with some risks. If you’re contemplating getting one, here are some ways they could cost you money that you should be aware of.

1. High purchase APRs

Cash back credit cards often have high annual percentage rates (APR), which is essentially the annual cost of borrowing money. For example, if your credit card has a 21% APR, you’d pay 21% of the outstanding balance each year.

If you’re unable to pay off the balance on your cash back credit card, you might be charged interest that exceeds the cash back you’re earning. For instance, if you’re carrying a $1,000 balance on a card that has a 21% APR, you’d generate $210 in interest payments over the year. Even if you paid $100 a month toward your balance, you’d still be responsible for $109 in interest before the card was paid off.

To be fair, a 21% APR on a credit card is actually decent. In fact, the average APR on a cash back credit card is about 24.47%, according to LendingTree. Depending on your credit, however, your APR could be much higher than that.

That said, some cash back credit cards start you off with a period of 0% interest. Often dubbed “0% APR credit cards,” these cash back cards won’t incur interest for a specific timeframe, usually six to 21 months. This gives you some time to pay off your balance without paying interest. Once this period ends, however, the card will revert to a regular APR, and any unpaid balances will start to incur interest.

Of course, if you pay your statement balance in full each month before the due date, you won’t have to worry about interest at all. Just keep your card’s APR in mind if you can’t make a payment, as credit card debt can wipe away any rewards you’ve earned.

2. Hoarding cash back

Cash back isn’t immune to inflation. Just like the purchasing power of a dollar erodes over time, your rewards could become less effective the longer you wait to use them.

Of course, this can be tricky. After all, many credit card providers issue your cash back monthly, while some give you rewards on an annual basis. Likewise, you might be saving cash back to use toward a goal, like a vacation or big purchase. Unfortunately, during heavy inflationary periods, this could mean getting less value out of your cash back, as higher prices can divest your rewards of potential.

If you can help it, earn and burn your cash back. In other words, spend it as soon as it’s credited to your account. This works well if you can apply your cash back as a statement credit, as you can cover a portion of your spending immediately. If you’d rather save your cash back, try putting it in a bank account that can outpace inflation, like a high-yield savings account.

3. Getting a card with no annual fee

Cash back credit cards with annual fees can unlock a slew of lucrative benefits, like bigger welcome bonuses and higher earn rates. Often, these cards can be more profitable than no fee alternatives if your spending is high enough.

For example, let’s say your card has a $95 annual fee but earns 4% back on groceries and dining. Let’s call it Card A. Let’s also assume there’s a no-fee alternative that earns 3% back on those same categories. We’ll call this one Card B.

At what point does Card A become more profitable than its no-fee cousin? The magic number is $9,500. If you spend more than $9,500 annually on those categories, the annual fee card would start netting you more cash back. At $9,500, you would net $285 on Card A ($380 in cash back minus the $95 fee), while Card B would also net $285. So, if you spent $10,000 annually on food, Card A would bring you about $5 more than Card B.

Of course, this is an easy comparison. It can be more difficult if you’re comparing cards that have different rewards systems, let alone earning rates. But do the math for yourself. A card with an annual fee could surprise you, especially if it will reward you generously for your everyday spending.

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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The interest rate is important when choosing a savings account, but it’s not the only factor. Here are three other benefits you may want to watch for. [[{“value”:”

When choosing a high-yield savings account, most people focus on one thing: the annual percentage yield (APY). This is understandable because APY is a key factor in how much you take home from the account. But it’s not the only thing that matters.

Savings accounts can have other perks too. Here are three that you may not have considered before.

1. No maintenance fees

Bank maintenance fees are monthly charges you pay to own the account. They’re most common with brick-and-mortar banks that have a large branch network to maintain. Generally, there’s at least one way to waive the maintenance fee, like maintaining a certain minimum balance or depositing a certain amount into the account each month. But if you’re not able to do this, you could pay as much as $30 per month.

Depending on your balance, fees could wipe out what you’re earning in interest each month. That’s why it’s generally wise to stay away from savings accounts with maintenance fees, unless you know you can meet the requirements to waive them.

Fortunately, high-yield savings accounts usually don’t have maintenance fees at all. That’s because they’re often available through online banks. Their overhead costs aren’t as high, so they’re able to skip the annoying fees many traditional banks charge.

2. ATM cards

Most savings accounts don’t permit you to withdraw cash directly. You must first transfer your funds to a checking account, and then you can write a check, use a debit card, or withdraw cash from an ATM. But an increasing number of high-yield savings accounts are bucking this trend.

Check-writing capability is still limited to checking accounts and some money market accounts, but ATM cards are available with some savings accounts. You can use this to withdraw cash without transfers.

Most online banks partner with nationwide, fee-free ATM networks, so you probably won’t have to travel far to find one. Check your bank’s ATM locator to find the one nearest to you.

3. Savings tools

Saving is a challenge for some, but there are high-yield savings accounts that help make this easier. One way they do this is by enabling you to set up automatic transfers between linked checking and savings accounts. This automates the process of saving, so there’s no chance of forgetting. Of course, you’re free to change your savings amount or suspend automatic savings altogether as needed.

Some high-yield savings accounts use a digital envelope system to help you earmark cash for specific goals. You might keep your emergency fund in one, the money for a down payment on a car or home in another, and cash you’re saving for a vacation in a third. Separating your savings like this makes it easier to see what you have and to avoid accidentally spending more than you mean to.

Not all savings accounts have all of these features, so it’s worth thinking about which matters the most to you. Use this to guide you to the high-yield savings account that’s best for you.

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Intro 0% APRs are a fantastic financing tool for large purchases. But they are fragile and can be ruined if you do this. Read on for more. [[{“value”:”

After buying my first house, moving across the country, and facing some century-old-home woes, my current financial health is balanced on the back of three 0% intro APR credit card offers. Having the breathing room to pay off a few big expenses over time, without two-figure interest fees accruing, is what’s truly saved my metaphorical bacon this year.

As vital as these credit cards are right now, I have to be very, very careful to avoid the one mistake that could cause it all to come crashing down: a late payment.

Even 0% APR offers require minimum monthly payments

One misconception I see sometimes about 0% APR offers is that you can just run up a balance and forget about it for a few months. That’s totally wrong.

At the least, you need to make your required minimum payment every month before the due date. If you don’t make that minimum payment by the due date, you’re late.

Each issuer calculates the minimum differently, but expect it to be about 1% of your balance. So if you have a $5,000 balance, expect your minimum payment to be around $50. (If you have a very low balance — usually $25 or less — your minimum due will be equal to your balance.)

One late payment can be enough to ruin your deal

Hidden in the fine print on some intro APR credit cards, you’ll find a short sentence warning you that a late payment can end your intro APR offer. Here’s one from a Chase credit card:

“Loss of Intro APR: We will end your introductory APR if any required Minimum Payment is 60 days late, and apply the Penalty APR.”

Other than the cards without this clause, this is probably the most generous version you’ll find. You see, Chase gives you a whole 60 days to fix the issue before it takes action. Other issuers aren’t nearly so kind.

Here’s what one Citi credit card says: “Loss of Introductory APR: We may end your introductory APR and apply the Penalty APR if you make a late payment.”

In this case, you could be looking at the end to your intro APR for being just days late.

Oh, and did you notice those bits about the “penalty APR” that each warning included? Yeah, that’s because when your intro APR offer gets cancelled, you may not simply revert back to the standard APR. Many issuers slap you with a higher penalty APR instead.

Penalty APRs: Kicking you while you’re down

In addition to charging you a late fee, some card issuers apply a penalty APR if you fall behind. This penalty APR becomes your new purchase APR.

What’s the big deal? Penalty APRs can get ridiculously high, with 29.99% being the standard penalty APR for big issuers. Going from 0% to 29.99% APR can be a seriously dangerous financial shock. Even just a hike from an APR in the 20% range up to 29.99% can cause your balance to grow with interest noticeably faster.

Worse, penalty APRs aren’t always temporary punishments. Some issuers offer a path to getting out of the penalty box, while others only warn you that the penalty APR could apply “indefinitely.”

How to avoid late payments

The only sure way to avoid this problem is to make sure you pay on time, every time.

In my case, I already check my credit card accounts at least weekly as part of my personal finance routine, so due dates never sneak up on me. (I strongly recommend everyone make managing their financial health part of their regular routine.)

If you want to automate the process — either for convenience or peace of mind (or both) — then set up autopay. This lets the bank automatically transfer your minimum payment (or however much you dictate) each month before your due date so you’re always at least on time.

Most issuers will also let you set up payment reminders via email, text, or phone notifications. You could also create your own calendar reminders, place sticky notes everywhere, train your dog to remind you…really, whatever works to make sure you stay on time and your intro offer stays intact.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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Domestic first class isn’t usually as posh as international business, but it can still be enjoyable. Here’s how to decide if it’s worth the upgrade. [[{“value”:”

Most of the stories about using travel rewards cards for free travel center around international business class flights. Indeed, most folks rarely suggest using rewards for domestic travel at all, most especially domestic first/business class. But why?

I think the answer to this question is twofold. First, there’s the idea that first class on a domestic flight isn’t worth the upgrade. Then there’s the idea that you don’t get great value out of your rewards this way. We’ll address both of these points below.

The value-add of flying first class

We’ve all been conditioned by the media and marketing to associate first class with luxury and wealth. But beyond any associated status, what’s the allure of flying first class on a domestic flight?

There are four main reasons I personally find first class to be a worthwhile upgrade domestically:

Guaranteed bag space: Between priority boarding and dedicated overhead bins, first class passengers have pretty much guaranteed space for their carry-on bags. Since I never check bags, the peace of mind that my stuff will always have a place is a legitimate perk.Larger seats further apart: I’m what you might call vertically challenged, but even I find most economy seats tight. First class seats are not only larger — by several inches in each direction — they’re also further apart.Meals and drinks: There is very little comparison between the food and drinks you get in first class and what is offered in the main cabin. Drinks are free, including alcohol, and served quickly. Snacks are typically better quality, plus you can have more than one. You may even get full meals in first class on flights that don’t otherwise serve meals.Dedicated flight attendants: The first class cabin usually has at least one flight attendant (sometimes more, depending on the size of the cabin) that is there just for first class. This means service is quick and you rarely have to wait long for assistance — or a refill.

Now, these factors may not matter much to you on short flights. However, the U.S. is a big place. Flying from one side of the country to the other can easily take five hours or more, which is nearly equivalent to crossing the Atlantic. In this case, I’d argue that’s plenty of time to really enjoy all of the perks of domestic business/first class.

Looking at the real-world math

Now, even if you do decide you’d like to fly first class, we have to address the question of value. Is domestic first class actually a well-valued redemption option for your rewards points?

To determine the per-point value of a given redemption, I take the total cash cost of a given itinerary, subtract any cash fees for the award flight, then divide that amount by the total number of miles needed.

Per-point domestic vs. international values

In the table below, we look at four United flights in October, three domestic — Boston, Denver, and Los Angeles — and the last one to Paris, France. All four fly out of Newark airport (EWR).

We see the expected outcome of a better value for international flights than domestic. Additionally, you actually get better value on economy flights over first class across the board.

This presents an argument against using your United miles for first or business class at all, from a value perspective. However, the United chart doesn’t show the whole story. Each airline prices its flights — including award flights — differently.

For example, the value proposition changes a bit if we switch to flying Delta from the west coast. Below, we look at four flights from Seattle, three domestic (Portland, Minneapolis, and Chicago), plus an international trip to Amsterdam, Netherlands.

Here you can see that you get better value from main cabin tickets — but only until you get to the international trip. You get the best overall value for Delta miles from the international business redemption.

The refundability factor

One additional factor that can influence the whole proposition is whether you need a refundable ticket. Most airlines charge extra for that when you pay cash, but allow you to refund award fares without issue. Here’s how that can change the value on a first/business class trip:

So, if you are going to fly first class and really want a refundable ticket, you could get some decent value using points to pay for your ticket.

All in all, whether the points are worth it for domestic first class depends on you. But personally? If you want to splurge and have the credit card points to do so, I say go for it. Flying first class is a lot of fun.

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

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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