Money Management

Rewards credit cards turn your spending into cash back or points. Check out the best ways to earn more rewards — and the ones that aren’t worth the risk. [[{“value”:”

Some people don’t take too much interest in rewards credit cards. They might use a cash back card or a travel card, but they don’t spend time looking for opportunities to earn more. They just pay with their card and occasionally cash in their rewards.

Others become full-blown rewards enthusiasts. They’re always looking for ways to earn more and get more value from their cards. I fall into this group.

I’ve tried and heard about all kinds of methods to earn more cash back or points. Some work well, while others are risky and could even lead to losing money. Here’s a guide to which to try and which to avoid.

The best ways to earn credit card rewards

Here are the best strategies I’ve found for earning credit card rewards, starting with the basics.

Put (almost) everything on your credit card and pay the bill in full

Since rewards cards earn cash back or points on your purchases, it makes sense to use them for all your spending. Groceries, restaurants, concert tickets, going to the movies — there’s no reason to give up an opportunity to earn rewards.

Some transactions have an extra fee for credit card payments. For these, check if you’ll earn more in rewards than the cost of the fee. For example, I pay my taxes with a credit card every year. It’s convenient, and I use a card that earns 2%, more than the 1.82% fee, so I come out ahead.

There’s one extremely important rule to remember: Never carry a balance on your credit card. To make money from rewards, you need to pay your card’s full statement balance to avoid interest charges.

Open new cards and earn welcome offers

The quickest way to earn rewards is with welcome offers. You’ve probably seen that many credit cards have bonuses for new cardholders. For example, earn $200 bonus cash back after spending $500 in the first three months, or earn 60,000 bonus points after spending $6,000 in the first six months.

If you’re confident you can manage multiple cards, consider occasionally opening a new one so you can earn another welcome offer. I usually open two or three cards per year for this reason. It’s more to manage, but it also pays for lots of my travel expenses.

Pick rewards cards that fit your spending habits

Many rewards cards have bonus categories. Gas and groceries are a common combination, but some cards also earn extra on dining, travel, streaming services, and much more.

Take a look at your monthly expenses to see where you spend the most. Then, choose a rewards card that earns bonuses in as many of those areas as possible. Or, if you don’t have any spending categories that stand out, you could go with a card that earns 2% on everything.

Even better, carry a few credit cards with different reward rates. Let’s say you travel and go out to eat often. You could have one card that earns 3% or more on travel and dining, and another that earns 2% on all your other expenses.

The worst ways to earn credit card rewards

Some of the methods people use to earn rewards are more trouble than they’re worth. Here’s what I wouldn’t recommend.

Spending more than you can afford to earn a welcome offer

Bigger welcome offers often have bigger spending requirements, too. For some of them, you need to spend $5,000, $10,000, or more in the first three months.

I know it’s tempting to go for big bonus opportunities. Before you apply, make sure you can meet the spending requirement with your normal expenses. If you spend $1,500 per month on your credit card, don’t go for a welcome offer that requires you to spend $10,000 in the first three months. It’s never a good idea to overspend for credit card rewards.

Manufactured spending

Manufactured spending is basically an attempt to hack credit card rewards programs. It involves making a purchase, turning that purchase into cash, and using the cash to pay your credit card bill. If it works as planned, you earn rewards without needing to spend anything.

I’ve done a lot of research on this. While it seemed like a cool idea at first, I now think it’s a waste of time. There’s no safe, reliable way to manufacture spending. All the methods people come up with have serious flaws.

For example, one of the most popular methods is to use your credit card to buy a prepaid gift card. Then, you use the gift card to buy a money order, deposit the money order to a bank account, and use that money to pay your credit card bill.

But many stores won’t let you buy money orders with prepaid gift cards anymore. Even if it works, you’ll pay fees for the prepaid card and the money order. You’re also spending time and gas when you drive to the store. Manufactured spenders may feel like they’re winning the rewards game, but I doubt most even make the equivalent of minimum wage from this hobby.

Making the most of rewards credit cards

It’s not hard to earn more credit card rewards. The best approach is to find cards that fit your spending habits and use them as often as you can (on your regular bills). If you don’t mind opening new cards every now and then, that also helps, since you’ll be able to earn more welcome offers. Do that consistently, and you’ll earn far more cash back or travel rewards.

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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 owning a home seem out of reach financially? Here’s one technique that could help. [[{“value”:”

Despite what many experts had predicted when mortgage rates started to rise, home prices haven’t declined in most areas of the United States. Homeownership still seems unaffordable to many people who would have previously been able to buy a home just a few years earlier.

If you would love to become a homeowner, but are having trouble making the numbers work, a technique called “house hacking” could be worth a closer look. This strategy involves buying a multi-unit property with a low-down-payment mortgage. Here’s how it works and what you should know before getting started.

What is house hacking?

House hacking refers to situations where you purchase a home with multiple housing units. You live in one of them and rent out the others to generate income to lower, or even pay your entire mortgage.

In most cases, you cannot use a conventional mortgage to buy a home with more than one unit, unless you’re buying it purely as an investment property. And in that case, you’ll need at least 20% down.

However, the FHA loan has specific provisions that allow for the purchase of up to four-unit properties, as long as the buyer plans to live in one of them. FHA loans only require a 3.5% down payment, even for multi-unit homes, and have flexible credit qualifications.

Using this method, you can buy a home with a low down payment and have as many as three rental units to generate income. It’s not uncommon for house hackers to generate enough from the other units to completely cover their monthly mortgage payments.

If you really want to house hack, you can repeat this process. You can refinance the loan as an investment property once your equity justifies doing so and use another FHA loan to buy yet another property.

How I bought my first home

I’m intimately familiar with house hacking, because that opened the door to homeownership for me when it seemed impossible.

In 2010, I was a high school mathematics teacher in Key West, Florida — a very expensive real estate market. My fiancé at the time (now my wife) was a nurse in the local ICU. Even when combining both of our salaries, owning a home on the island seemed next to impossible. After all, not only were home prices expensive, but we would also need to pay for flood insurance as well as a separate (costly) windstorm policy. And saving for a down payment would be a challenge.

This was just after the U.S. foreclosure crisis, so I contacted a local real estate agent about a foreclosed home a few blocks from where I worked. To call it a fixer-upper would be generous.

He suggested another route. Many of the older homes on the island had been built as duplexes. Since it was just the two of us, we would have no problem living in a smaller space, and we could rent out the other side of the duplex to help offset the rent.

The plan worked. We ended up buying a duplex in the middle of town using an FHA loan with just 3.5% down, and thanks to the rental income from the second unit, our overall monthly payment was less than we had previously paid to rent a small two-bedroom apartment.

A few years later, we ended up selling the home and moving closer to relatives to start a family of our own. But this house hack allowed us to build more equity than we otherwise would have been able to, and it produced a nice down payment for our forever home, where we still live today.

Could house hacking be right for you?

House hacking isn’t right for everyone. For one thing, it isn’t practical or desirable for many people to live in a multi-unit property. If you have dogs that need a large outdoor yard to run around in, or if you have multiple children, a single unit in a two- to four-unit property might not meet your needs. And (trust me on this one), you should consider whether you want to be someone’s landlord before pursuing this.

Having said that, if you’re up for the challenges involved and don’t need a ton of space or private outdoor area, house hacking can be an excellent path to owning a home quicker and for a lower monthly cost than you may have thought possible.

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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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Missed the tax-filing deadline? Read on to see why the sooner you can submit your return, the better. [[{“value”:”

Taxes are due every year on April 15. But if the tax-filing deadline has come and gone and you’re still sitting on an unfinished return, you may be wondering just how much worse you might make the situation by letting it sit a bit longer.

Maybe the whole reason for not filing your taxes on time is that work is busy or you’re going through a personal matter that’s monopolizing your focus. The truth is, it’s always best to request an extension when you don’t think you’ll have your taxes done by the deadline. But since we’re already past the deadline, if you didn’t do that already, it’s too late now.

That said, there can be negative consequences for being late with a tax return. So don’t take the attitude of “If I’m going to be late, I might as well be really late.” Instead, get moving on that tax return ASAP.

When you’re due a tax refund

As of late March, the average IRS refund this year was $3,081. When you’re due a refund, there’s no penalty for filing your taxes late. But you’re effectively penalizing yourself by letting the IRS keep your refund even longer instead of depositing that cash into your bank account — especially if your refund is in line with the average.

What’s more, let’s say you owe $3,000 on a credit card. For every passing day you don’t repay that balance in full, you’re accruing interest on it (unless it’s a 0% interest card and you’re in your introductory period). So why wouldn’t you want your refund ASAP? It could allow you to pay off that balance and minimize the financial sting.

When you owe the IRS money

If you think you owe the IRS money from 2023 and you missed the tax-filing deadline, pay close attention: You must do your best to file that return as soon as you can.

When you owe the IRS money, you’re penalized for filing taxes late. That penalty is equal to 5% of your unpaid tax bill per month or partial month your return is late, up to 25%.

So let’s say you owe the IRS $3,000. If you file your tax return by April 30, you’ll only be looking at a penalty of $150 for that partial month you were late. But beyond that, every month or partial month you’re late is going to cost you another $150. That could add up to a lot of money.

Also, there’s a penalty for paying your tax bill late. The penalty there is less harsh initially than the penalty for failing to file your return on time, as it’s only 0.5% per month or partial month you’re late, up to 25%.

So if you didn’t pay a $3,000 tax bill by April 15 and you pay it by April 30, you’re only looking at a penalty of $15. But even though that’s not the same as $150, why let those $15 penalties keep adding up month after month?

If you missed the deadline for submitting your taxes, it matters when you file at this point. And regardless of whether you owe money or you’re owed a refund, it’s in your best financial interest to file your taxes as soon as possible.

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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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A new study from NetCredit found that the top 10 side hustles pay $148 per day. See how you can make extra cash with a side hustle. [[{“value”:”

If you want to make some extra money, starting a side hustle can be a great way to do it. It feels exhilarating and empowering to earn extra cash beyond the limits of your paycheck. And there are more ways than ever to make money with side hustles, especially if you have some in-demand professional skills.

According to a recent survey from NetCredit, several U.S side hustles that companies hire for on major freelance platforms are paying over $100 per day. Let’s look at a few easy ways for American side hustlers to make extra cash.

Top ten side hustles from NetCredit study

In January 2024, NetCredit announced a study where the company analyzed thousands of short-term freelance gigs that had been posted on Fiverr. All of these side hustle gigs are defined as “one-day” projects, because they all require short turnaround times of 24 hours.

According to NetCredit, here are the top 10 side hustles for U.S. workers who want to earn more money in one day:

Marketing strategy ($178.08 average pay for projects with one-day turnaround)Mobile app developer ($164.15)Presentation design ($163.62)Website designer ($162.18)Songwriter ($158.14)3D Industrial design ($142.34)Brand style design ($136.43)AI spokespersons videos ($134.40)Packaging and label design ($122.66)UX design ($122.09)

Altogether, these top 10 side hustles for U.S. workers offer average pay of $148.41 per day.

What do the top ten side hustles tell us about the economy

Most of the best-paying side hustles identified by the NetCredit study involve professional, “digital world,” or “knowledge work” skills that can be done from a laptop, like graphic design and software development. Side hustles can also involve other types of “physical world” skills, like lawn mowing, dog walking, food delivery, and home organizing. But if you have digital skills and are willing to put in some extra hours during nights and weekends, starting a side hustle could be a great way to earn extra income.

How to find good side hustles online

If you want to earn money with a side hustle, there are a few options.

1. Digital freelance work platforms

There are many freelance services marketplaces or “talent platforms” where gig workers and side hustlers can apply for freelance gig “job postings” from companies that are hiring. There are several types of online talent marketplaces for various freelance skill sets. A few of the best platforms for gig workers include:

Fiverr (featured in the NetCredit side hustle study; Fiverr ranks as one of the best for creatives)Toptal (best for technical workers like developers)Upwork (best for a wide range of freelance gigs)

2. Part-time and contract gigs

If you have a flexible schedule, you could get a work-from-home side gig like customer service. Or if you’re handy with tools, you could start a side hustle doing home maintenance projects. Some of the best places to find these part-time and contract side hustles include:

FlexJobs and ZipRecruiter: These sites offer freelance, part-time, flexible, and remote/work-from-home jobs like customer service, copywriting, administrative roles, and more.TaskRabbit: Get paid to do small projects like yard work, deliveries, furniture assembly, moving, and more.Rover: Get paid to walk dogs or provide pet-sitting services.

How to start a side hustle

You don’t need much to start a side hustle nowadays. Just make sure you’re able to meet the expectations of any gig platforms where you sign up — for example, some platforms might charge a one-time fee or require you to follow certain terms of service (TOS) for using the site or app.

And if you have a full-time day job, make sure you’re not violating any expectations of your company’s terms of employment — don’t do your side hustle during company time, don’t use company laptops or equipment to do your side hustle, and don’t work for competitors or otherwise violate your commitments to your “day job” employer. Side hustles should help you earn extra cash without jeopardizing your regular paycheck.

You might also want to open a new bank account that is separate from your usual checking account where you get your paycheck. Get a dedicated credit card that you can use for your side hustle business expenses. Keeping your side hustle money separate from your usual personal finances can help make it easier to track your income and any tax-deductible business expenses.

And if your side hustle starts earning serious money, and you want to turn it into an “official” small business, you might want to form an LLC (limited liability company) to get extra tax benefits and legal protections.

Bottom line

The top 10 side hustles for people with digital skills and knowledge work expertise are paying over $148 per day — but that’s not the only way to make money with a side hustle. You’re not alone in wanting to make extra cash: approximately 64 million Americans, or 38% of the U.S. workforce, did freelance gigs in 2023. There are plenty of opportunities for people who can put their skills to work in a flexible way that’s outside of the usual 9-to-5 world. Side hustles can be a good thing for your career, and for your budget.

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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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Thieves drain bank accounts all the time, but that doesn’t mean you’ll have to pay for what they did. Learn what you need to know if someone steals from you. [[{“value”:”

Identity theft and hacked accounts aren’t just credit card issues. They can happen with bank accounts, too. It can be alarming to check your balance only to find money missing, but fortunately, you’re usually not responsible for these unauthorized transactions.

The key word here is “usually.” Swift action is essential to minimize the damages. Here’s what you need to do the second you realize someone has stolen money from your checking or savings account.

Notify your bank immediately

The sooner you alert your bank of the situation, the better the outcome will be for you. Ideally, you review your checking and savings accounts frequently enough to catch unauthorized transactions. Or you could set up transaction alerts to catch unusual spending, like large withdrawals. Check with your bank to find out if this is an option.

For lost debit cards or debit card PINs, you typically want to notify your bank within two business days. If you do this, the most you could be held liable for is $50 of the thief’s expenses. And you may not owe anything. If you notify the bank of a lost debit card after two business days, you could be liable for up to $500 in unauthorized transactions.

You definitely want to tell your bank within 60 days, or else you could be found liable for all the thief’s unauthorized transactions that occur after the 60-day mark. But to hold you responsible for these, your bank would have to prove that the transactions wouldn’t have occurred had you sounded the alarm before the end of the 60-day period.

The bank’s investigation

When you alert your bank to fraudulent activity on your savings or checking account, you will likely need to sign an affidavit saying that you did not make the purchases or withdrawals. Then, the bank has 10 days (20 days if the account has been open for fewer than 30 days) to investigate your claims.

The bank must correct the error within one business day if it determines that someone did steal from you. It must notify you of the findings within three business days.

If the bank is unable to complete its investigation within 10 (or 20) days, it must issue you a temporary credit, minus a maximum of $50, while it continues to investigate. However, it may not have to do this if you fail to promptly return your affidavit.

Most investigations conclude within 45 days, though it could take up to 90 days if the disputed transactions occurred outside of the United States, if they occurred within 30 days of account opening, or if they were debit card point-of-sale purchases.

Next steps

If your bank account information was stolen, there’s a chance some of your other financial information was compromised as well. It’s worth pulling your credit reports to check for unusual activity or accounts you don’t recognize. If you find any, be sure to notify the credit bureau and the financial institution associated with the account.

You may also want to change your login information for your financial accounts and any accounts you use for online shopping. Keep an eye on your credit card statements going forward so you can catch any fraudulent transactions immediately.

Preventing bank account fraud

It may not be possible to avoid bank account fraud in all cases, but there are things you can do to reduce your risk of becoming a victim, including:

Keeping your bank account numbers, debit card numbers, and PINs privateNot accessing bank accounts on public wifi networksNot opening links or responding to suspicious emails asking for bank account informationNot entering your bank account information on suspicious websites

Setting up transaction alerts is another great way to keep an eye on your bank accounts if your financial institution permits this.

Having your bank account hacked can be stressful, but as long as you act quickly, you shouldn’t have to worry about being held liable for someone else’s actions. If you have any questions about your bank’s investigation into the fraud or what you should do next, reach out to your bank for more details.

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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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Being a savvy Target shopper could result in big savings. Read on to learn more. [[{“value”:”

Whether you’re someone who shops at Target once a week, once a month, or once a year, there’s the potential to spend a lot of money during a single visit. But if you plan your next Target run strategically, you might manage to eke out some nice savings. Here are a few tips that could help you save big on your next Target shopping trip.

1. Make a list

The old joke about Target is that you might go in for a handful of grocery items and come away with a $100 receipt. That joke isn’t really all that funny, though, because overspending at Target has the potential to hurt your finances. That’s why it’s important to shop there with a list.

It’s one thing to hit a supermarket without a list and impulse-buy a few extra items in the snack aisle. But when you’re talking about a retailer like Target that sells almost every item under the sun, the temptation to overspend could be huge. If you want to save money, go in with a plan.

2. Get creative with coupons

Target commonly accepts manufacturer coupons for a host of products. If your schedule allows for it, spend a little time online hunting for coupons before you shop, because you might manage to snag some deals and shave a little money off of your next Target tab. You may even want to play around with some coupon apps to see which ones work best for you.

3. Look for end-of-season items

Many retailers discount seasonal items at the end of their respective season to move unsold inventory off of their shelves, and Target is no exception. If you’re heading to Target in the next week or so, you may want to purchase things like winter hats or cozy socks, which you might find heavily discounted.

4. Ask for an on-the-spot price match

Target is known for its low prices, but that doesn’t mean it will always have the lowest prices available. If you have specific items in mind for your next Target run, spend a little time researching them elsewhere. If you find a lower price at another retailer but it’s more convenient to make your purchase at Target, just bring proof of that competitor’s price, and Target should match it.

Some of the retailers Target is willing to match include Amazon, Kohls, and Walmart. You can consult Target’s website for a complete list.

5. Keep your receipt in case you need a future price match

Target will match its own prices for purchases made in the past 14 days. So let’s say you spend $30 on a pair of athletic pants at Target. If the price drops to $20 a week later, you can ask Target to refund you the extra $10.

The less you spend at Target in general, the more money you’ll have available for other bills and goals. It pays to employ these tips not just on your next Target run, but for future trips as well.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon and Target. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool has a disclosure policy.

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