Money Management

Want AAdvantage Platinum status? It isn’t about how much you fly. Learn here how you can earn it. [[{“value”:”

American Airlines has four elite status tiers in its AAdvantage frequent flier loyalty program:

Executive PlatinumPlatinum ProAAdvantage PlatinumGold

AAdvantage Platinum status has some valuable benefits, and can result in free business class upgrades and much more. Here’s a quick guide to what you can get from Platinum status on American Airlines and how to earn it.

What does AAdvantage Platinum status do?

AAdvantage Platinum is the second level of elite status on American Airlines, and comes with some potentially valuable benefits. While this isn’t an exhaustive list, the biggest perks include:

Complimentary upgrades to business or first class (whichever the next class of service is) on domestic flights and flights to and from Canada, Mexico, the Caribbean, and Central America. Platinum members are not only above Gold members in priority, but their upgrades can clear as far as 48 hours before departure.60% more miles and Loyalty Points for spending on flights.Priority check-in and Group 3 boarding.Up to two checked bags for everyone on the same reservation as the Platinum member, with priority baggage handling.

You earn status by spending, not necessarily by flying

American Airlines uses a qualifying points system known as Loyalty Points for elite status qualification. And the most important point to know is that this system earns status based on how much you spend, not how much you fly.

There are a few ways to earn Loyalty Points. Taking flights is the most obvious, but different members earn points at different rates. General (non-elite) AAdvantage members earn 5 Loyalty Points for every $1 spent on American Airlines flights. Members with elite status earn Loyalty Points even faster, so once you’ve achieved status, it becomes easier to keep it. Gold members earn 7 Loyalty Points per $1, Platinum AAdvantage members earn 8 Loyalty Points per $1, and Platinum Pro and Executive Platinum members earn 9 and 11 Loyalty Points per $1, respectively.

In addition, you can earn one Loyalty Point for every base mile you earn from spending on an American Airlines credit card. You can also earn Loyalty Points on spending through the airline’s e-commerce portal, through hotel and rental car partners, and through a few other ways.

How do you earn AAdvantage Platinum status?

AAdvantage Platinum status requires 75,000 Loyalty Points in an earning year, which starts on March 1 and runs through the end of the following February. These can be earned through any combination of flying and other methods that reach this threshold.

As one simplified example, you can earn AAdvantage Platinum status in the following way:

$10,000 in spending on American Airlines flights (at least five Loyalty Points per $1)$20,000 in spending on a co-branded American Airlines credit card$5,000 in spending through hotel and rental car partners

Of course, this is just one example. It’s actually possible to earn Platinum status without flying at all if you spend enough on your American Airlines travel credit card, but since the benefits of elite status are mostly related to flying, it might not be worth pursuing if you don’t fly much.

Is AAdvantage Platinum status worth earning?

The short answer is that AAdvantage Platinum status can be valuable if you fly often. You’ll likely receive upgrades more frequently than Gold members, Group 3 boarding will usually let you avoid the crowds if you’re sitting in the main cabin, and the free bags perk could be worth hundreds of dollars per trip if you travel with your family or a small group of friends.

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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 grow your emergency savings nicely? These moves could leave you with an extra $1,000 by the time 2024 wraps up. [[{“value”:”

You never know when life might throw a financial surprise your way. That surprise could be a medical episode that results in a costly bill or a car repair that leaves you with a $750 charge on your credit card.

That’s why it’s so important to have a solid emergency fund at all times. And if possible, it’s best to have enough money in your savings account to cover at least three months of essential expenses — things like rent, food, and medication.

Building a three-month emergency fund may not be attainable for you this year if you currently have very little money saved. But with the right moves, you might easily grow your savings by $1,000 before 2024 wraps up. Here are some strategies to consider that might help.

1. Bank your tax refund

As of April 5, the average tax refund issued by the IRS was $3,011. Even if your refund is only one-third that size, putting that money into the bank rather than spending it could leave your emergency fund in a much better place.

In fact, even if you have debt you’re currently carrying, it still makes sense to put your refund into savings rather than pay your debt off. The reason? Without that money in the bank, you risk taking on more debt should another unplanned expense arise. So you’re better off banking your refund and then taking steps to whittle down the debt you have.

2. Join the gig economy

It’s definitely not an easy thing to work a side hustle into your schedule when it’s already jam-packed. But you may be surprised at how a relatively low-key side hustle can yield great results.

In a recent earnings call, Uber said that its typical driver earns about $23 an hour after accounting for expenses like gas and maintenance. So if you’re aiming for an additional $1,000 in savings, it might take about 44 hours of driving for a service like Uber to meet that goal if you can earn that same hourly rate.

Of course, your ability to earn that same rate isn’t a given. And if you want to net $1,000 in income, you may need to earn more like $1,200 to account for taxes, which would then require more like 52 hours of work on your part. But still, over a roughly eight-month period, that’s 6.5 hours of side hustling per month, or under two hours per week. In other words, it’s a gig that may be doable even if you aren’t exactly overloaded with free time.

3. Practice more mindful spending

It’s not reasonable to curb all your leisure spending until your savings account is in a better place. But what you can do is practice more mindful spending in the coming months to see if it helps free up cash to add to your emergency fund.

Each time you’re looking to buy something non-essential, like a takeout meal or clothing that you don’t need for work, ask yourself whether it’s really worth the money and whether it’ll really bring you joy. If the answer is yes, then go for it. It may very well be the case that a $25 takeout dinner will make you happy after a long day at work that’s left you utterly exhausted.

But you may, from time to time, come to the realization that you’re about to make a purchase you can pretty easily shrug off and go without. And if you do that numerous times over between now and late December, you might be able to grow your savings nicely.

It’s definitely not easy to add more money to your savings account. But if you follow these tips, you may end up $1,000 richer by the end of 2024.

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Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.

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Renting vs. buying is a major personal finance debate. Keep reading to see how you can tell you’re in a homeowner mindset. [[{“value”:”

I’ve spent the last two years paying off debt and putting money aside to finally become a homeowner again. I have had many moments of wondering, “Am I truly ready?” If you’re pondering the same question, this article’s for you. Here are five ways to know if becoming a homeowner is desirable and doable for you.

1. You don’t have a lot of high-interest debt

While you certainly don’t have to be completely debt free to buy a home, some kinds of debt are more conducive to the process than others. If you’re paying off your education or financing a car with an affordable monthly payment, you’re likely not in a bad position to become a homeowner.

But if you have a lot of debt on credit cards, you could be paying 20% interest or higher — according to the Federal Reserve Bank of St. Louis, the average credit card APR on accounts assessed interest was 22.75% in November 2023. Mounting credit card bills will make it harder to afford a mortgage and all the other expenses of owning a house, so it’s a good idea to explore ways to pay off this debt beforehand.

2. You have emergency savings

Living paycheck to paycheck and being a homeowner isn’t ideal — you’re just one busted water heater or leaking roof away from potentially taking on more high-interest debt to pay for repairs. As such, it’s a good idea to ensure you’ve got some financial breathing room before going down the path of homeownership.

During my first disastrous experience owning a home, I very much did not — which is why I ended up immediately unable to afford my mortgage payments when I got laid off from my job. Long story short, getting rid of that house in a short sale tanked my credit and made me swear off even considering buying a home again, for years. Don’t be like me that first time — build emergency savings before you investigate mortgage options.

3. You can cover the upfront costs

Buying a home comes with some pretty significant upfront costs. While a 20% down payment is recommended (as it can help you avoid paying for private mortgage insurance on a conventional loan), it’s not required. If you’ve got strong enough financial bona fides, you may be able to get away with a 3% down payment. And some government-backed mortgage options (like FHA and VA loans) have low or zero down payment requirements.

That said, putting some amount of money down for a home purchase is a good idea, as it’ll make you a less risky borrower to a mortgage lender and save you a ton of money on interest over the life of the loan. You’ve also got to cover closing costs, moving costs, and let’s be real, probably some new furnishings for your new home. Can you afford all these expenses? They’re only the beginning.

4. You’ve explored ongoing expenses

After the ink has dried on your mortgage paperwork, the costs just keep on coming. You’ll need to pay for property taxes, homeowners insurance, and ongoing maintenance and repairs for your new home. If you live in a homeowners association neighborhood, you’ll pay those fees too. And a lot of these costs will rise over time.

I recommend doing some research to find out how much you can expect to pay for ongoing expenses, because they will shape your budget for years to come. If you can handle them, buying might be right for you.

5. You actually want to go from renter to owner

Renting has some perks — on average, it’s cheaper than owning a home. It’s also a lot more flexible. But it doesn’t allow you to change your living space in any significant way. I’ve noticed that unlike my last time buying a house, I’m excited at the prospect of painting walls, installing central air conditioning, and changing out major appliances.

Plus, I have three cats. Thanks to many irresponsible pet owners who’ve ruined things for the rest of us, it can be difficult to find a decent rental that accepts pets and doesn’t charge you an arm and a leg for the privilege. I’m already making a Chewy wishlist for cat shelves and window beds that should soften the stress of moving again for my furry freeloaders.

I’m also looking forward to having control over how I address any problems that come up with my home — if the kitchen sink is clogged, I get to be the one to call the plumber, rather than going through a landlord. This also means I’ll be paying for that fix, of course, but this makes me feel empowered, rather than scared (OK, I’m a little scared — but that’s to be expected).

Is it time for you to become a homeowner? Good luck out there — the 2024 market so far is no more favorable for buyers than 2023 was, thanks to stubbornly high mortgage rates and a low supply of homes for sale. But if you can say that most of these signs apply to you, you just might be ready to buy.

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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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CD rates are high, but that doesn’t mean everyone should have one. Watch for these four red flags that suggest a CD could be a bad financial move for you. [[{“value”:”

CD rates on some terms are currently above 5.00%. That’s a great rate, considering CDs are virtually risk free. But just because rates are high doesn’t make CDs the best investment for every person.

So, should you personally be putting your cash into CDs? Here are four signs that suggest you may not want to run to the bank or go online to open one just yet.

1. You don’t have an emergency fund

If you don’t have an emergency fund with three to six months of living expenses, you should not open a CD. You should work on building up money in an emergency fund first — and your emergency fund should be in a high-yield savings account.

The Ascent has a long list of high-yield savings accounts offering rates as high as 5.36%. These rates are pretty competitive with what CDs are offering. And while you don’t get that rate locked in, and it could fall if rates do, you get more flexibility. You can take your money out of savings whenever you want.

If you put your emergency fund into a CD, you’d be penalized if you withdrew the funds early. Depending on the CD, you could lose around three months to 180 days of interest. That’s a lot. You don’t want to forfeit much of your gains or be forced to leave your money in the CD when you need it for emergencies.

If you don’t have three to six months of living expenses saved, start working on that today. Open a savings account now and start padding your emergency fund.

After you have your full emergency savings account, you can put extra money into CDs if you want.

2. You already have a lot of money invested into CDs

CDs are a good investment right now, but they aren’t the only investment that provides solid returns with little or no risk. If you already have a lot invested in them, you may want to consider alternatives.

For example, T-bills are another option worth considering. Although they have a maximum term of 52 weeks, their rates are pretty competitive with CDs of the same term length. And they have two big advantages in that they’re exempt from state income taxes and are more liquid, as they can be sold on a secondary market.

Diversification is always a good thing when it comes to your portfolio, so if you already have several CDs and are looking for another short-term or medium-term safe investment, check out this guide to CD bills versus Treasury bills to see if T-bills would be a better place for your extra cash.

3. You haven’t maxed out your 401(k) match yet

If you work for a company offering a 401(k) match, those matching funds typically provide the best possible returns you can get on your investment. If your employer matches 100% of your contributions, you actually get a 100% return.

Maxing out your 401(k) match should be your top financial goal after making sure you have an emergency fund. In fact, it’s worth doing, even if you have some high-interest debt. So if you haven’t yet contributed enough to earn your full employer match, find a way to do that before even considering opening a CD.

4. You have a lot of high-interest debt

Finally, if you have a lot of high-interest debt, you should pay that off before investing in a CD. The average credit card interest rate right now is 21.59%. You don’t need a degree in math — or even a calculator — to know that the return on investment of paying that off is higher than the 5.00% you could get from a CD.

If you spot any of these four signs, don’t open a CD. Work on your other goals first — like maxing out your 401(k), paying off debt, building your emergency fund, or diversifying your investment portfolio. The Ascent has tools to help with all these things, like this guide to building a solid emergency fund, so check them out and start making progress today.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

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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Getting your credit in good shape before applying for a mortgage is a solid idea. Keep reading for a few ways to do just that. [[{“value”:”

Looking to buy a house in 2024? It’s not really a great market for anyone (well, maybe for people who can buy all in cash and don’t need to worry about mortgage rates), but if it’s your first time, you have my sympathies.

You’ll contend with a ton of competition — according to data from the National Association of Realtors, there was only a 2.9-month supply of homes available in February 2024. This is likely to pick up as we get deeper into the year, but it remains to be seen whether we’ll reach the four to six month supply needed to balance the market between buyers and sellers.

How do you stand out in the crowd, and perhaps save money despite the current average rate for a 30-year fixed loan (6.82% according to Freddie Mac)? Having a solid credit score can help. Here are a few ways to boost yours ahead of time.

Dig into your credit report

If ever there was a time to head over to AnnualCreditReport.com and get copies of your credit report, it’s now. This is the only free way to access your credit reports (you have one from each of the three major consumer credit bureaus), and you can do it as often as weekly, if you’re so inclined.

When you get your reports, pick through them carefully and verify the info you see. If you spot errors, like a delinquent account listed that is actually in good standing, you can dispute them with the credit bureau and have them removed. Errors are frighteningly common — according to Consumer Reports, 13% of Americans have errors that impact their scores.

Ask for a credit limit increase

Another free and relatively easy option to boost your credit score before starting the home-buying process comes with a little risk, if you’re not careful. You can request a credit limit increase from your credit card issuers. They’ll be more likely to agree to this if you’re a customer in good standing who always pays on time.

Increasing your credit limit can lower your credit utilization ratio if you’re carrying a balance, which will in turn improve your credit score. It’s best to keep this number (a percentage of how much credit you’re using vs. how much you have) below 30%, and it’s pretty significant for your FICO® Score, representing 30% of it. (Easy to remember, right?) If you’ve got a credit limit of $5,000, and carry a balance of $2,000, your credit utilization ratio is 40% — not ideal. But if your card issuer is willing to add $3,000 to your limit, boosting you to $8,000, you’ll have a ratio of 25%.

Why is a credit limit increase risky? It might tempt you to spend more on the card, thereby undoing the benefit of the increase and potentially opening you up to pay a ton more in interest if you’re now carrying a higher balance. So only consider this move if you’re sure you can avoid the temptation.

Not cheap, but worth it: Paying down debt

It would be remiss of me not to mention an extremely effective way to get your credit score in the best shape possible ahead of mortgage rate shopping. It’s not “cheap,” per se — but it can do great things for you. I boosted mine by 100 points in the course of paying off existing debt.

I recognize that most people won’t be able to repeat this action, because life is expensive and living paycheck to paycheck is common. That said, if you have the time and flexibility to take on a temporary side hustle (app-based food delivery, like DoorDash, is doable in a more casual fashion than, say, taking a part-time retail job), you can funnel your earnings toward debt payoff.

Not only will this boost your credit score by lowering your credit utilization ratio, but it’ll also give you more breathing room in your budget. This is extremely important as you gear up to take on more predictable monthly expenses in the form of a mortgage payment and all it entails (for example, homeowners insurance and property taxes are often included and sent to an escrow account so they can be paid annually).

Plus, you’re also taking on untold unpredictable expenses — if something breaks, it’ll be on you to pay to fix it. Owing less money to other creditors and having more space in your budget can help immensely.

Ultimately, improving your credit score doesn’t have to be costly — don’t think you need to pay some shady “credit repair” company to do it for you. Instead, look for errors on your credit report, ask for a credit limit increase, and consider paying down some existing debt, if you can. A higher credit score can be your ticket to a more affordable mortgage.

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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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Airline elite status includes special perks, but it can be hard to get. Check out the top reasons to work toward it, so you can decide if it’s right for you. [[{“value”:”

Elite status is how airlines reward their most loyal customers. If you rack up enough flights and loyalty points with your favorite airline, you could land in one of its elite status tiers — and receive all the perks that come with it.

These perks can include more miles on bookings, early boarding, free checked baggage, and even complimentary flight upgrades. With most airlines, the higher your status, the higher you’ll be on the upgrade list.

Earning elite status isn’t easy, and it’s not a lifetime appointment. You need to keep meeting the requirements to maintain it, too. Here’s how you can tell if going for elite status is a good idea.

1. You fly at least four or five times per year

It only makes sense to work toward elite status if you’re a frequent flyer. If you’re not flying at least four or five times per year, roundtrip, then it almost certainly isn’t worth it.

After all, taking multiple flights with the same airline is normally a requirement to earn elite status. Some airlines let you earn status points through credit card spending (more on that below). But it’s harder to reach elite status without flying often.

Even if you reach elite status, you only benefit from it when you fly. If you’re only flying a couple of times per year, it’s a lot of work for little reward.

2. You have an airline you prefer using

If you decide to go for elite status, you’ll need to pick an airline. Ideally, you’ll travel with this airline every time you fly, as long as that’s an option. You don’t want to miss any opportunities to earn frequent flyer miles and loyalty points.

The best-case scenario is that you already have a favorite airline, or one immediately came to mind. If not, think about which airlines you’ve liked flying with in the past. If you don’t feel too attached to any one airline, and you’d rather just go with the lowest airfare price each time, then elite status isn’t a match for your travel habits.

3. You live near one of the airline’s hubs

After you choose an airline, check to see if you live near one of its hubs. Many of the largest airlines use a hub-and-spoke system. Hubs are the central transfer points where the airline has a large number of flights coming and going.

Elite status works best for travelers who live near an airline hub, because they’ll have more opportunities to fly with it. If you live in New York, it probably wouldn’t make sense to go for elite status with Alaska Airlines. Even if you love its service, Alaska Airlines has all its hubs in the Western United States and Alaska.

You can find an airline’s hubs on its website — or its Wikipedia page, which is usually where I look. Another option is to see which airlines have hubs in your nearest airport, and then choose one of those as your preferred airline.

4. You’re open to applying for an airline credit card

You can earn elite status just by flying with an airline, but it speeds up the process if you open one of its airline credit cards. Many airline cards earn points that help you qualify for elite status. With some airlines, you can even earn elite status exclusively through credit card spending — no flying required.

Each of the major U.S. airlines has its own credit card, and some of them have several options. These cards often have other valuable benefits, as well, such as free checked baggage, discounts on in-flight spending, and even a membership to the airline’s lounge program (on the cards with the highest annual fees).

If you want to check out credit card options for your favorite airline, here are the top picks with the biggest carriers:

American Airlines credit cardsDelta Air Lines credit cardsSouthwest Airlines credit cardsUnited Airlines credit cards

With all the complimentary benefits, elite status can be worth it, but only for select travelers. If you can say “yes” to everything above, then earning elite status could be a smart goal to pursue for 2024.

Alert: our top-rated cash back card 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 lengthy 0% intro APR period, 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.Lyle Daly has positions in Delta Air Lines. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Southwest Airlines. The Motley Fool has a disclosure policy.

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