Money Management

It’s important to find someone who’s a great match for your personality. Should you also focus on finding a great financial match? Read on to learn more. [[{“value”:”

It’s not easy trying to find your perfect romantic partner. Not only do your personalities have to align, but your goals and life plans have to as well. For example, if you can’t wait to have kids, you’re unlikely to embark on a successful relationship with someone who’s firmly against it.

Financial matters also have the potential to make or break a relationship. If you like to live frugally, you may find that someone who enjoys lavish restaurant meals and taking high-end vacations isn’t a good match for you. And as things get more serious, money-related disputes have the potential to upend an otherwise strong relationship.

That’s why it’s important to find a partner whose goals and values align with yours, but also, whose approach to personal finances is similar to yours. And one indication of whether you and your partner are financially compatible may be whether your credit scores are similar.

Now most people don’t list their credit scores on their dating profiles as a matter of course. But one new dating app is changing the game by imposing a minimum credit score requirement to join. And if you’re invested in meeting someone who’s in a financially stable place, you may want to give it a try.

A new concept that could actually work

Neon Money Club’s SCORE app is a dating app that has a minimum credit score requirement of 675. To be clear, the app doesn’t have users list their actual scores — it simply imposes that minimum score of 675 which, according to Experian, is considered good.

But here’s why that may be a useful thing. If you’re someone who doesn’t like being in debt and who follows a careful budget, you might clash financially with someone who’s loaded with debt and spends money whenever they want with a justification of YOLO.

To be clear, you might still have compatible personalities. And you might enjoy dating each other for a period of time. But what happens when things get more serious?

It’s not a secret that financial disagreements are a common driver of divorce. So while it may be okay to casually date someone whose approach to credit and debt differs from yours, that could become hugely problematic if you decide to marry and/or combine finances.

Credit score compatibility could go a long way

In 2015, the Federal Reserve conducted a study on credit scores and relationships. And it found that credit scores have the potential to reveal information about an essential relationship skill — trustworthiness and commitment.

More so than that, the data found that people with higher credit scores were more likely to form committed relationships than those with lower credit scores. And, people with higher credit scores were more likely to maintain their relationships as well.

This isn’t to say that you should get serious with a partner whose personality doesn’t mesh well with yours just because your credit scores are similarly strong. But your takeaway here should be that when it comes to maintaining a successful relationship, having a similar approach to credit and finances might matter more than you’d expect.

So whether you decide to give the SCORE app a try or not, pay attention to clues to see if you and whoever it is you’re dating are on the same page financially. If, for example, they’re constantly making comments about being behind on their rent, and you’re someone who can’t imagine not paying on time, consider it a red flag.

Money matters truly have the potential to dismantle an otherwise solid romantic union. You’re better off finding out that you’re not a match financially early on, rather than sinking time and emotion into a relationship that’s unlikely to work out in the long run.

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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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It’s good to have some money in savings. But if these signs apply to you, it may be time to find another home for your cash. [[{“value”:”

Because unplanned bills can arise at any time, it’s important to have money available in savings at all times. In fact, at a minimum, your goal should be to maintain a large enough savings balance to cover three months of essential bills.

But sometimes, it doesn’t pay to keep money in a savings account. Now for the purpose of this discussion, when we say “move your money out of savings,” we’re talking about money beyond your emergency fund. With that in mind, here are some reasons to take money out of your savings account and put it elsewhere.

1. You don’t need it for a year or two

The nice thing about keeping your money in a savings account is that you can access it at any time without worry. But if you have funds you know you won’t need for a good year or two, then it could pay to put that money into a CD — or, better yet, a CD ladder.

The benefit of opening a CD is that you’ll often score a higher interest rate on your money than what a savings account will pay you. And also, that higher interest rate is guaranteed for your CD’s term.

You may, for example, be getting 4.50% APY on your money in savings right now. But if the Fed cuts rates later this year, which it’s expected to do, your savings account might only be paying 4.00% come November or December. On the other hand, if you open a 1-year CD at 5.00% today, you’re guaranteed that 5.00% for a full year regardless of how interest rates move on a whole.

2. You don’t need it for a decade or longer

If you have money you don’t expect to need for a decade or longer, then it pays to remove that money from your savings account and invest it instead, whether in a brokerage account or an IRA if you want to set it aside for retirement. While investing your money does carry risk, if you’re doing so over an extended period of time, you’re more likely to come out ahead financially. And you might grow your money a lot further by investing it rather than keeping it in savings.

Over the past 50 years, the stock market has generated an average annual return of 10%. That accounts for years of strong performance and periods when the market was sluggish.

So let’s say you have $10,000 you know you won’t need for many years. If you were to keep it in a savings account over the next 20 years earning 4.00% (which is a generous assumption since 4.00% is a high interest rate to get from a savings account), you’d grow your balance to about $22,000. If you were to invest it at a 10% return over the next 20 years, you’d be sitting on about $67,000 instead.

3. You have the money to address an issue that could drastically improve your quality of life

Some people have a hard time taking money out of their savings account, and understandably so. When you work hard to build savings, you want to know that money is there for you when you want or need it. But if you have cash beyond your emergency fund that you could be using to better your quality of life, then it pays to move money out of your savings and spend it on something important.

Let’s say your laptop is old and constantly crashes and freezes. If that’s an item you use regularly and you have the $800 needed to replace it in savings, do so. You might save yourself aggravation on a daily basis.

This is just one example, but the point is that it’s okay to use your savings to improve your life. And you shouldn’t feel guilty about removing funds to pay for things that could free up your time or just plain reduce your stress.

It’s definitely a good idea to keep your savings account nicely loaded. But in these situations, you may want to move your money into a CD, invest your money rather than keep it saved, or take your money and spend in a way that lends to your overall well-being.

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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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It’s estimated that millions of Americans have chosen to live abroad. Find out how doing so could help your retirement savings go much further. [[{“value”:”

Saving enough money for retirement isn’t easy. It’s recommended that you set aside at least 10% to 15% of your income, which is already no small sum. If you didn’t start doing so in your 20s or 30s, you may need to save an even larger portion of what you make.

An increasingly popular way to stretch your retirement savings is moving to a foreign country. An estimated 5.4 million Americans live abroad, according to the Association of Americans Residents Overseas. I’m one of them — not retired, but living abroad — and I love it.

It’s a life-changing experience that can also help you save quite a bit of money. Here’s how.

1. You could move to an area with a lower cost of living

The United States isn’t the most expensive country in the world. Monaco wins that one, at least according to World Population Review. But it’s near the top.

There are many places with a much lower cost of living than the United States. Latin America, Southeast Asia, and even much of Western Europe are more affordable, to provide a few examples.

Depending on where you go, you could cut your housing costs in half — or even lower. You could also pay less for utilities, going out to eat, and any activities you want to do. You probably won’t save on absolutely everything. Some products, such as electronics, tend to be the cheapest in the United States. But you could spend significantly less on your regular bills.

2. You could get cheaper healthcare

The U.S. healthcare system isn’t known for being affordable. It’s known for being prohibitively expensive, to the point where any serious issue will require draining your savings account, going into a mountain of debt, or starting a GoFundMe.

In fact, the United States has the highest healthcare spending in the world, according to the Organisation for Economic Co-operation and Development (OECD). It does not, however, rank anywhere near the top in worldwide healthcare rankings.

To keep expectations in check here, you can’t just move to a new country and start getting all the cheap healthcare you want. You typically need to either register in its public healthcare system or pay for health insurance. You may also need a residency to do this. If you don’t have coverage, you’ll pay out of pocket for healthcare services.

Still, costs for all this are lower in most countries than they are in the United States. I’ve paid about $30 to $40 out of pocket for teeth cleanings in Colombia and gotten bloodwork done with health insurance coverage for less than $2. If you’re open to getting a residency and registering for healthcare coverage in a new country, you can likely get it for much less than you’d pay at home.

3. You could live car free

I sold my car shortly before leaving the United States, and I haven’t bought a new one since. I’ve found that all of the places I’ve been to are much more walkable, and many of them have better public transportation, too.

Most U.S. cities aren’t built with walkability in mind. If you want to do anything, you need a car. In many foreign countries, this isn’t the case. Stores and parks are five to 10 minutes on foot. When you experience it firsthand, you realize what an amazing difference it is.

It also means you can get by without a car. If you go car free, you won’t have a car payment, auto insurance, gas, or maintenance. That could easily save you $500 to $1,000 per month.

Retiring abroad isn’t going to be right for everyone. It’s a huge change, and I wouldn’t recommend it if your only motivation is to save money. But if you’re the adventurous type and feel like living somewhere new when you retire, going abroad could be an exciting choice with some serious financial benefits.

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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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An airline credit card may be ideal if you fly often with the same airline. But, some travelers will benefit from using a travel credit card. Find out why. [[{“value”:”

Traveling is one of my favorite ways to spend my free time, so I budget a portion of my income for future travel purchases. I enjoy visiting new-to-me destinations, eating different foods, and experiencing the excitement of exploring a new place for the first time.

Since I travel often, I’m a big fan of using credit cards to earn rewards. For some travelers, an airline credit card is the best option. However, using a travel credit card is ideal for my travel style. Let me explain why I prefer travel credit cards over airline credit cards.

I’m not loyal to one airline

Some travelers fly with one particular airline whenever possible. They may prefer the airline’s products and customer service or have more direct-flight options from their home airport.

My city isn’t a hub for any of the major U.S. carriers, and I tend to fly to destinations all over the globe, so I’m not set on one carrier. Since I fly with different airlines, using one of the best airline credit cards doesn’t make sense.

Many airline credit cards include airline-specific perks and reward cardholders when they make purchases with a particular airline. As you can see, my spending habits and travel style don’t align with the need for an airline card. That’s why I prefer using a general travel credit card.

I like to travel light

I often book a round-trip flight to one international destination and then book train rides or other flights to nearby cities so I can explore multiple destinations during my vacations. The last thing I want to worry about is lugging around multiple suitcases between destinations.

This is one of many reasons I prefer to travel with only a carry-on bag when flying. Plus, I don’t want to risk losing a checked bag or waste time waiting for my bag after arriving on a lengthy flight. Some airline credit cards include free checked bag perks. Since I rarely check a bag when flying, this isn’t a valuable credit card benefit for me, and it would go unused.

I value flexibility

I like to be in control when making travel plans. That includes being able to choose a flight that best meets my needs. As an airline credit card user, I might feel pressure to book with a particular airline more frequently. But with a travel rewards credit card, I can earn rewards on airline purchases made with my card, regardless of the carrier chosen.

Plus, I can book a flight that fits my budget and travel style for a more enjoyable experience. Here’s another way travel credit cards offer more flexibility: I have more control when redeeming my credit card rewards. For example, I can book a flight or hotel room with an airline or hotel brand of my choosing instead of being restricted to only one brand.

Keep your travel style in mind

Consider your travel style before applying for a credit card with travel rewards. Your travel preferences impact the credit card that is best for you. For some, an airline credit card may be an ideal solution if you typically always fly with your favorite airline.

However, a general travel rewards credit card may be best for travelers with varied travel spending and those who want greater flexibility. Check out our list of the best travel rewards credit cards to learn more and compare several options.

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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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