Money Management

There are pros and cons to taking such a short cruise. Keep reading for one experienced cruise-goer’s take. [[{“value”:”

I’m an avid cruiser. I love being on the ocean, spending time in the sun, and exploring several new places in a single trip without having to take multiple flights. Over the past two years alone, I’ve cruised seven times, sometimes with my wife, sometimes with my wife and children, and sometimes with friends.

Until recently, the cruises I’ve taken all had one thing in common — they were five nights or longer in duration.

However, my wife and I just got back from a short, three-night sailing on Royal Caribbean’s Allure of the Seas, a massive cruise ship that typically sails three- and four-night itineraries out of Port Canaveral in Florida (it’s moving to Miami in a couple months). Here’s a rundown of our likes and dislikes from the experience, and whether we’d take a three-night cruise again.

Things I loved about our three-night cruise

For starters, since the cruise was Friday through Monday, and we were off the ship by 7:30 a.m. Monday morning, I only had to miss one day of work to take the trip. It was essentially a long weekend trip, so it was very convenient. In contrast, we took a five-night cruise last summer and had to miss an entire week for the Monday through Saturday sailing.

There were a few other things we loved. Because it was a shorter duration than other cruises we’ve taken, the charge on our credit card was significantly less expensive. A three-night cruise can be a budget-friendly way to try your first cruise, or to be able to cruise more often, without spending a ton of money.

We also never had any trouble finding things to do. We’ve taken longer cruises, and by the end, it sometimes felt as if we’d experienced everything we wanted to do on the ship. On this trip, we didn’t even come close to checking all the items off our to-do list. This can be a positive or negative.

Finally, the vast majority of Royal Caribbean’s three-night itineraries from Florida’s east coast stop at the cruise line’s private island, Perfect Day at Coco Cay. We absolutely loved the day at the private island and having seen the private islands of a couple of other cruise lines, it was definitely a step above. To be sure, you don’t need to take a three-night cruise to get a stop at the island. But it’s a great way to see it over a weekend.

What I wasn’t a fan of

Our three-night cruise was on Royal Caribbean’s Allure of the Seas, which is a big cruise ship. It is a member of the cruise line’s Oasis class. Until the recent launch of the Icon of the Seas, these were the largest class of cruise ship in the world. The ship has 17 decks (floors), over a dozen restaurants, several shows, four pools, and many activities to do. To put it mildly, three days simply wasn’t enough to see it all.

Because we had a relatively limited time on such a massive cruise ship, it was literally impossible to do everything we wanted to. We certainly tried. We dined at three different specialty restaurants, saw a different show every night, explored all the pool areas, and more. But there’s a lot we didn’t get to do. There were another two restaurants we would have loved to try, we never saw the ice show (this ship actually has an ice skating rink on board), and we never tried the Flow Riders (surfing simulators) that are on the ship.

To be fair, a week wouldn’t have been enough either. And this could be a genius marketing strategy by Royal Caribbean that could entice people to travel back to the port for multiple weekend sailings.

We also would have liked one day at sea (as opposed to being at a port all day). Because of the short duration and two ports on the agenda, we didn’t have much time out at sea when it was sunny and warm outside. One of our favorite parts of most cruises is having a day at sea for a relaxing day to wind down from the busy times when we’re sightseeing and doing other things ashore.

Would we do a three-night cruise again?

Yes. We had an excellent three-night trip on the Allure of the Seas, and actually have already booked another three-night cruise for later this year on its sister ship, the Utopia of the Seas, which will be Royal Caribbean’s newest ship when it sets sail in July. It might be worth it for you to consider a shorter duration cruise if you’re new to this type of travel or just want a long weekend getaway — for us, the pros definitely outweigh the cons.

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If you don’t want a credit card anymore, you may consider closing or downgrading it. Find out why you should always wait at least one year before you do. [[{“value”:”

Sometimes you change your mind about a credit card. It looked like the perfect fit at first, but after a few months, you realize it wasn’t right for you. Or maybe you just wanted to earn the welcome offer — you wouldn’t be the first to open a card for that reason.

You have the right to close your credit card at any time. And if you want to avoid the annual fee, another option is to ask the card issuer for a downgrade. But it’s better to wait until you’ve had the card for at least one year before closing or downgrading it. If you do it any sooner than that, there could be costly consequences.

You might lose your card’s welcome offer

Welcome offers are one of the most valuable benefits that credit card issuers have. They are designed to bring in new customers, after all. Because welcome offers are so valuable, card issuers really don’t like it when you earn one, and then get rid of the card shortly thereafter.

Some card issuers even mention in their terms and conditions that they’ll “claw back” the welcome offer if the card is closed or downgraded within the first 12 months. They aren’t kidding, either. There are plenty of reports from cardholders who have tested their luck and lost all the bonus rewards they earned.

So, if you downgrade or cancel your card within the first year, you’re risking any rewards you earned through the welcome offer. What if you’ve already used those rewards? The card issuer could still deduct them and leave you with a negative rewards balance. If you still have any cards with that card issuer, the rewards you earn will likely go toward making up that negative balance first.

Credit card issuers frown on it

Whether your rewards are clawed back or not, downgrading or closing a card so soon may affect your relationship with the card issuer. It could blacklist you, meaning you’ll be looking at an instant denial if you apply for any more of its credit cards. The card issuer could also shut down any other cards you have with it.

You’re better off not burning bridges, especially with top card issuers that have lots of quality credit cards. Even if you’re not interested in anything else it offers right now, things may change later. It could release a new credit card with benefits you love. If so, you’ll probably wish you had just waited the full 12 months to avoid getting blacklisted.

What to do if you don’t want to pay the annual fee

Maybe you’re more concerned about paying an actual annual fee than possibly ending up on some secret blacklist. Fair enough. If you don’t want the card, there’s no reason to pay for it. Luckily, there’s often another solution.

Here’s what you can do:

Wait until you’ve had the card for 12 months and the annual fee is charged.Contact the card issuer within 30 days of the annual fee.Ask to close the card or downgrade it.

Many card issuers will refund you if you cancel or downgrade within 30 days of the annual fee posting. You can wait 12 months to fulfill any terms, keep the card issuer happy, and avoid it clawing back the welcome offer. And you can still get a refund.

If you want to be sure you’ll get a refund, you can look up reports about its refund policy online. The largest card issuers generally do issue refunds if it’s within 30 days of when you were charged the fee. But it never hurts to double-check to be sure.

It’s fine to get rid of a credit card that isn’t right for you. But if you want to play it safe and avoid future issues with that card issuer, give it 12 months before taking action.

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Up against the tax-filing deadline? Read on for your best course of action. [[{“value”:”

It’s hardly a secret that taxes are due on April 15 every year (unless, of course, the deadline is pushed back due to it falling on a weekend). Yet here we are — it’s April 14, and your tax return still isn’t done.

There could, however, be a good reason for that. Maybe you had every intention of doing your taxes earlier but ran into a medical issue that sidelined you for weeks. Or maybe you’re up against the filing deadline because a company you did work for took forever to issue your 1099 form.

Either way, if it’s the day before the tax-filing deadline and you still have work to do on your taxes, you may feel like you’re in a pickle. And you may be wondering if it pays to try to power through your tax return or get an extension. The answer is, it depends on your situation.

When your tax return is simple

If your tax return is simple and you have all of the documents and information you need to file it, then it may be more than possible to complete the task in time. In that case, you might as well get it done with.

For one thing, it’ll be a stressful task you won’t have hanging over your head. And if you’re due a refund, it should hit your bank account sooner.

Just as importantly, if you owe the IRS money, you’ll know what sum to fork over and you’ll have an opportunity to pay it by April 15. Paying a tax bill late results in interest and penalties.

When your tax return is more complicated

If your tax return is complicated and you’re not confident in your ability to tackle it quickly, then at this point, your best bet is to request an extension. The last thing you want to do is make an error on your tax return that either delays your refund or increases your audit risk.

Also, if you rush through the tax-filing process, you might miss out on credits or deductions you were entitled to take. The result? A smaller refund than you’re actually entitled to.

If you’re going to request an extension, try your best to estimate what you owe the IRS from 2023 (that is, if you think you underpaid your taxes last year and aren’t due a refund). While a tax extension will exempt you from the penalty that comes with failing to file a return on time, it won’t get you out of paying interest and penalties on the sum you owe.

Of course, it can be a challenge to estimate your tax bill if your tax return hasn’t really been worked on. In that case, if your tax situation is similar this year to last year and you owed $1,500 last year, you may just want to send the IRS that sum if you have the money.

Remember, the IRS is not allowed to just hang onto money of yours it’s not entitled to — hence the whole refund thing. So if you send the IRS $1,500 by April 15 to avoid interest and penalties on that sum when you only owed $1,200, you don’t just lose that $300 — you get it back.

Usually, the IRS will send you a notice informing you of the credit you’ll be getting due to overpaying. You can usually also ask the IRS to hang onto the money and apply it to next year’s taxes.

Completing a tax return in a day isn’t impossible. But it also may not be worth the stress and risk of mistakes when you can get an extension and buy yourself the extra time you need to do things right.

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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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Online banks can sometimes complicate your finances. Keep reading for online savings pitfalls that can be avoided with a little legwork. [[{“value”:”

Gone are the days when we were all limited to the banks that had branches in our neighborhoods. Now, you can open a bank account on the internet, without even putting shoes (or pants) on — what a time to be alive.

Online banks have a lot of positives, but if you’re a fan of traditional banks, the learning curve may be a bit steeper for you. Here are a few pitfalls to watch out for if you’re opening an online savings account.

1. No in-person customer service

I’ve never needed to visit a bank often enough to develop a personal relationship with the staff working there, but my life might not be the same as yours. If you’ve come to rely on in-person customer service for your banking needs, the changes that will come with an online savings account might be hard for you to stomach. Online banks exist solely in cyberspace — you will not find branches you can stop into for a chat about an issue with your account. What can you do if you need help or have questions?

Coping mechanism: You might not have a branch to visit, but online banks offer robust customer service options that are likely more accessible than banker’s hours. You can reach your online bank via phone, online chat, and through its mobile app.

2. Your account doesn’t come with an ATM/debit card

This one is definitely a bummer — generally speaking, online savings accounts don’t come with an easy way to get cash out. On its face, this makes sense — ideally, you’re putting money into a savings account far more often than you’re taking it out.

You also can’t spend directly from a savings account; you’re limited in how many “convenient” withdrawals you can take per month, thanks to Regulation D rules that some banks still enforce. But if you’ve been saving for a large purchase and now it’s time to make the buy, how are you going to get your money?

Coping mechanism: Online banks make it extremely fast and easy to open a new account, so take advantage of this and open a checking account that’s linked to your savings account. You’ll get an ATM/debit card with your new account, and you’ll easily be able to transfer money back and forth between the accounts.

When it’s time to take cash out, pop into that mobile app or sign into online banking on your computer and transfer money from savings to checking. Just be careful to stay under your transaction limit every month, lest you be hit with fees.

3. A lack of convenient ATMs

Another hurdle for an online savings account is needing to find an ATM so you can take cash out. Many online banks are part of an ATM network, and they offer a map function on their websites so you can type in your ZIP code and see where the closest ATMs are to you. But what if your area has no ATM coverage for a given bank?

Coping mechanism: If you regularly deal in cash and anticipate needing to take it out frequently, it’s worth investigating prospective online banks to see their ATM coverage before opening an account. Some online banks also offer ATM fee reimbursement up to a certain dollar amount (such as $10 or $20) per month, so you can use an out-of-network machine and not lose any money as a result.

Are online savings accounts still worth it?

Honestly, if you are reasonably comfortable with doing your banking activities online, you’ll find a lot to like about an online savings account. Because online banks don’t have to operate physical branches, they save a lot of money on overhead costs — which means they can pass those savings onto consumers.

This is why online banks offer much better APYs on savings accounts, CDs, and money market accounts — and sometimes even on checking accounts. As of this writing, the average APY on a savings account is just 0.47% (according to the FDIC) — but you can find online banks offering rates 10 times that, or even more!

Another way online banks can help your bottom line is the lack of monthly maintenance fees. A lot of big brick-and-mortar banks charge these on their accounts, unless you can jump through certain hoops to get the fee waived. And if you accidentally let your balance fall too low or cancel a recurring direct deposit, boom, you’ll be hit with fees again.

Online savings accounts do come with a few potential pitfalls, but now that you know about them, you’re better equipped to take advantage of the benefits of banking in cyberspace. Just do your research before opening an account — I recommend checking out The Ascent’s list of the best high-yield savings accounts to get started.

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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Men have more financial satisfaction than their female counterparts. Read on to see how you can improve yours. [[{“value”:”

What does it mean to be financially content? For some people, it could simply mean having enough money to pay the bills without worrying about debt. For others, it could mean having the leeway to spend freely without having to follow a strict household budget.

But no matter how you define financial happiness, the reality is, you deserve it. Unfortunately, though, Wells Fargo data finds that while 58% of men say they’re happy with their financial situation, only 42% of women say the same. Not only that, but 43% of women struggle with financial anxiety, compared to just 29% of men.

Why is it that men are in such a better place? Here are a couple of reasons — and how to overcome them.

1. Men tend to earn more

Since roughly 2002, women have only earned an average of 82% of what men have earned, according to Pew Research Center data. While money can’t necessarily buy happiness, it can buy financial confidence.

When you earn more, you have more opportunity to put money into savings, steer clear of debt, and pay for conveniences that make your life easier. There’s a value in that.

If you’re certain that you’re underpaid, then it’s important to take action and fight for a more equitable wage. This is something you should do regardless of the gender you identify with.

Start by researching salary data for your role and geographic location using resources like Salary.com and Glassdoor. If you find that you’re paid less than comparably employed people in your area, that’s data to take to your employer.

Also, make a list of the ways you specifically add value to your company. Maybe you have a skill that no one else in your department has. Or maybe actions on your part have saved your employer money in recent months.

Take all of this information and use it to argue your case for higher pay. And if your employer refuses to budge, then it may be time to dust off your resume and seek out a higher-paying job elsewhere.

2. Men are more likely to seek financial help

The aforementioned Wells Fargo survey found that men are more likely than women to talk about their financial health with a professional. Specifically, this is something 29% of men do, as opposed to just 20% of women.

Now, you might think that you don’t need a financial advisor or shouldn’t bother with one because you don’t earn a very high wage and don’t have many assets. But actually, that’s exactly why you should seek out professional help.

A financial advisor can help you work with the income and assets you have to build savings and make progress toward different goals. An advisor can also help you work through your financial concerns and, ideally, help you come up with a plan to alleviate them.

It’s not completely shocking to learn that men are more content financially than women overall. But if you’re not happy with your financial circumstances, don’t just resign yourself to them. Instead, take steps to improve them, whether by fighting for better pay or seeking help from someone who’s in a position to offer useful advice.

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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.Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Unlock your retirement savings potential with simple, impactful strategies. Start small, snag free money, and save smart. Here’s how. [[{“value”:”

When we think of retirement, images of serene beach walks, lush golf courses, and peaceful afternoons on the porch might dance in our heads. But for many, especially those earning a lower income, the road to retirement can seem more like an uphill battle than a smooth ride into the sunset.

The good news? Achieving a comfortable retirement isn’t exclusive to the well-off. Even on a tight budget, you can make strategic moves with your personal finances to ensure your golden years are just that — golden.

Start small, but start now

The first step is the hardest, but also the most crucial. Start saving now, even if it’s just a tiny amount. The magic of compound interest means that even small, consistent investments can grow a lot over time. For example, saving $50 monthly in an account with a 5% annual return will grow to about $40,000 in 30 years. It might not fund a lavish lifestyle, but it’s a substantial nest egg from modest monthly contributions.

Grab that 401(k) match

Did you know that a whopping 95% of employer retirement plans offer some matching contribution, according to Vanguard? That’s like finding money on the ground — you’d never walk past it, right? Find out the scoop on your company’s 401(k) match and make sure you’re contributing enough to grab every bit of that match. It’s basically free money.

Imagine you manage to snag a $2,000 match from your employer. If you let that money grow with an average 10% return, which is pretty average for the stock market over the long haul, you’re looking at that $2,000 blossoming into nearly $35,000 over 30 years. Now, that’s what I call a growth spurt!

Automate your IRA

No 401(k)? No problem. As long as you’re earning an income, you can funnel some of that hard-earned cash into an individual retirement account (IRA). The beauty of IRAs is that many allow you to set up automatic contributions straight from your bank account. It’s like putting your retirement savings on autopilot.

Let’s start with just $25 a month. Over 40 years, with a typical 10% return, that modest sum can grow to a staggering $133,000. And that’s without upping your contribution as you start earning more. To put that in perspective, Northwestern Mutual points out that the average saver in their 60s today has around $112,500 saved up. So you could be sitting pretty with more than average heading into retirement.

Don’t miss out on the Saver’s Credit

On a tight budget, every little bit helps. That’s where the Saver’s Credit comes in. This gem of a tax break is tailor-made for folks earning a modest income, making it easier to save for those golden years. For the 2023 tax year, you could qualify for this credit if you’re married and filing jointly with an income of up to $73,000 or single and earning up to $36,500.

Depending on your income, you could get back 10%, 20%, or even 50% of the first $2,000 you put into your retirement account, translating to up to $1,000 back in your pocket. This credit applies whether you’re contributing to a traditional, Roth IRA, or a 401(k). It’s like getting paid to save for retirement.

Stashing away funds for retirement might seem like a marathon with no end in sight, especially when your financial belt is already on the last notch. But with these tricks up your sleeve — maxing out that employer match, turning IRA contributions into a no-brainer, and cashing in on tax credits — you could cross the finish line with a heavier purse than you imagined. It’s all about playing the long game, making those small, smart plays that add up to a winning strategy. On your mark, get set, save!

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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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