Frugal Living

The 8 Most Eye-Opening Money Attractions in the U.S.

Dr Penny Pincher — Wed, 01 Jun 2022 19:32:44 +0000

Some of my most memorable vacations have centered around money — and didn't require spending much of it at all. I had my photo taken next to a $1 million stack of bills at Binion's on a recent trip to Las Vegas. Another memorable experience was visiting the Bureau of Engraving and Printing in Washington, D.C. to see millions of dollars of being printed on the production floor.

If you get excited about money, check out these unique attractions across the U.S.

1. U.S. Mint

See the coin manufacturing process up close by taking a free tour at the Philadelphia and Denver facilities of the U.S. Mint. Learn about the process of minting coins from the design to the striking of coins. You'll be able to see how billions of coins are produced each year, and learn the history of coin-making. (See also: Where Are They Now? The Forgotten Dollar Bills (and Coins))

2. Binion's Gambling Hall and Hotel

Get a free souvenir photo of yourself standing next to $1 million in cash at Binion's Gambling Hall and Hotel in Las Vegas. Stop by to have your photo taken and come back about an hour later to pick up your free printed copy. It's pretty incredible to see that much cash up close.

3. U.S. Treasury

The main building of U.S. Treasury is the third oldest building in Washington, D.C. and has been renovated to preserve its impressive Greek Revival architecture. Some historical highlights at the U.S. Treasury include the offices of Salmon P. Chase, Secretary of the Treasury during the Civil War, and the offices used by President Andrew Johnson following Abraham Lincoln's assassination. The stately marble Cash Room has been restored to appear as it was at Ulysses S. Grant's inaugural reception in 1869. You can tour all of these sites by setting up a reservation ahead of your visit.

4. Wall Street

If your travels take you to New York City, check out the attractions of Wall Street, an area of New York City that has been focused on finance for over 200 years. Highlights include:

New York Stock Exchange: On the corner of Wall Street and Broad Street
Federal Hall National Memorial: On the corner of Wall Street and Broad Street
Museum of American Finance: Located at 48 Wall Street

You can take self-guided tours on foot, or there are other tour options available for free or under $40. (See also: 6 Confidence-Inspiring Facts About the Stock Market)

5. Chicago Board of Trade

Visit the home of the trading floors of the Chicago Board of Trade and the Chicago Mercantile Exchange to see traders at work in the pits as they buy and sell commodities. The Chicago Board of Trade building was once the tallest building in Chicago. Although it has been eclipsed by other taller buildings, it remains an Art Deco historic landmark with a glass observation deck with views of the skyline. Tours last an hour, and cost $20 per person.

6. Bureau of Engraving and Printing

If you want to see where money comes from, this is the stop for you! Learn about the production process for paper currency and watch millions of dollars being printed on the floor of the production facility at the Bureau of Engraving and Printing in Washington, D.C. The tour includes an introductory film and stops along the steps of the production process that results in legal tender. Admission is free, but a ticket is required. (See also: 10 Must-See Museums in the U.S.)

7. New York Fed Gold Vault

Unfortunately the bullion vault at Fort Knox is closed to visitors, but there is a place you can see tons of gold — literally. The gold vault at the New York Federal Reserve Bank houses approximately 508,000 gold bars, weighing in at 6,350 tons. Tour the gold vault for free and learn about the Federal Reserve System as you tour the Federal Reserve Bank.

8. Federal Reserve Bank of Cleveland

Visit the Learning Center and Money Museum at the Federal Reserve Bank of Cleveland for interactive exhibits and activities. Try your hand at bartering, see if you can correctly identify counterfeit bills, and even try making your own currency. Take a look inside the impressive building that houses the Cleveland Fed and learn how central banks operate. Admission and tours are free.

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This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways Gig Economy Workers Can Save for Retirement

Emily Guy Birken — Mon, 16 Nov 2020 22:12:58 +0000

We are in the midst of a major economic shift. While workers in the past could expect to keep a stable job with a traditional employer for decades, workers of today have found they must either cobble together a career from a variety of gigs, or supplement a lackluster salary from a traditional job by doing freelance work in their spare time.

Though you can make a living (and possibly even a good one) in the gig economy, this kind of work does leave gig workers vulnerable in one very important way: retirement planning.

Without the backing of an employer-sponsored retirement account, many gig workers are not saving enough for their golden years. According to a recent report by Betterment, seven out of 10 full-time gig workers say they are unprepared to maintain their current lifestyle during retirement, while three out of 10 say they don't regularly set aside any money for retirement.

So what's a gig worker to do if they don't want to be driving for Uber and taking TaskRabbit jobs into their 70s and 80s? Here are five things you can do to save for retirement as a member of the gig economy. (See also: 15 Lucrative Side Hustles for City Dwellers)

1. Take stock of what you have

Many people don't have a clear idea of how much money they have. And it's impossible to plan your retirement if you don't know where you are today. So any retirement savings should start with a look at what you already have in the accounts in your name.

Add up how much is in your checking and savings accounts, any neglected retirement accounts you may have picked up from previous traditional jobs, cash on hand if your gig work relies on cash tips, or any other financial accounts. The sum total could add up to more than you realize if you haven't recently taken stock of where you are.

Even if you truly have nothing more than pocket lint and a couple quarters to your name, it's better to know where you are than proceed without a clear picture of your financial reality. (See also: These 13 Numbers Are Crucial to Understanding Your Finances)

2. Open an IRA

If you don't already have a retirement account that you can contribute to, then you need to set one up ASAP. You can't save for retirement if you don't have an account to put money in.

IRAs are specifically created for individual investors and you can easily get started with one online. If you have money from a 401(k) to roll over, you have more options available to you, as some IRAs have a minimum investment amount (typically $1,000). If you have less than that to open your account, you may want to choose a Roth IRA, since those often have no minimums.

The difference between the traditional IRA and the Roth IRA is how taxes are levied. With a traditional IRA, you can fund the account with pre-tax income. In other words, every dollar you put in an IRA is a dollar you do not have to claim as income. However, you will have to pay ordinary income tax on your IRA distributions once you reach retirement. Roth IRAs are funded with money that has already been taxed, so you can take distributions tax-free in retirement.

Many gig workers choose a Roth IRA because their current tax burden is low. If you anticipate earning more over the course of your career, using a Roth IRA for retirement investments can protect you from the taxman in retirement.

Whether you choose a Roth or a traditional IRA, the contribution limit per year, as of 2018, is $5,500 for workers under 50, and $6,500 for anyone who is 50+.

3. Avoid the bite of investment fees

While no investor wants to lose portfolio growth to fees, it's especially important for gig workers to choose asset allocations that will minimize investment fees. That's because gig workers are likely to have less money to invest, so every dollar needs to be working hard for them.

Investing in index funds is one good way to make sure investment fees don't suck the life out of your retirement account. Index funds are mutual funds that are constructed to mimic a specific market index, like the S&P 500. Since there is no portfolio manager who is choosing investments, there is no management fee for index funds. (See also: How to Start Investing With Just $100)

4. Embrace automation

One of the toughest challenges of being a gig worker is the fact that your income is variable — which makes it very difficult to plan on contributing the same amount each month. This is where technology comes in.

To start, set up an automatic transfer of an amount of money you will not miss. Whether you can spare $50 per week or $5 per month, having a small amount of money quietly moving into your IRA gives you a little cushion that you don't have to think about.

From there, consider using a savings app to handle retirement savings for you. For instance, Digit will analyze your checking account's inflow and outflow, and will determine an amount that is safe to save without triggering an overdraft, and automatically move that amount into a savings account. You can then transfer your Digit savings into your retirement account.

5. Invest found money

An excellent way to make sure you're maxing out your contributions each year is to change your view of "found money." For instance, if you receive a birthday check from your grandmother, only spend half of it and put the rest in your retirement account. Similarly, if you receive a tax refund (which is a little less likely if you're a gig worker paying quarterly estimated taxes), send at least half of the refund toward your retirement.

Any gig workers who often receive cash can also make their own rules about the cash they receive. For instance, you could decide that every $5 bill you get has to go into retirement savings. That will help you change your view of the money and give you a way to boost your retirement savings.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Renovations That Don't Increase Your Resale Value

Emily Guy Birken — Sat, 07 Nov 2020 22:45:56 +0000

The first major home renovation my husband and I ever undertook was insulating the walls of a 1921 Craftsman bungalow we shared in Columbus, Ohio. This project made the house a great deal more comfortable in the winter and the summer, since the existing insulation was the least expensive option available in the 1920s — making it completely inadequate for maintaining heat in the winter or coolness in the summer.

Unfortunately, despite the undeniable improvement to our comfort, we found that our new insulation did nothing for our resale value. Even though we had put nearly $5,000 worth of work and materials into this renovation, we didn't see that money and effort reflected in our sale price when we had to move several years later.

Not all renovations are going to increase your resale value. That doesn't necessarily mean you should forgo working on your home if you won't see the value when it's time to sell. For instance, I would definitely insulate that house again, even knowing that the money is only going to improve my comfort.

But there are some home renovation projects that you just can't expect to recoup your investment on. Knowing that, you should consider how long you intend to live in your house and whether you're renovating just to increase your home's value before jumping into any of these home improvement projects.

1. Invisible improvements

Insulating our bungalow was the kind of invisible improvement that had to be done, but didn't appear to change the house. Unlike "sexier" improvements like updating a kitchen or bath, or even putting on a new roof, invisible improvements don't change the look of the house. These are things like re-grading the yard to keep water from getting into the basement, updating the HVAC system, tuck-pointing bricks and chimneys, and replacing gutters.

While these improvements often have to be done to protect your house, the downside is that you may not recoup the cost of these improvements when it comes time to sell. It can be helpful to think of these renovation expenses as a way of protecting your home's current value, rather than as a way to increase your future resale value.

2. Swimming pool

While homeowners in Arizona, Florida, Hawaii, and Southern California may find that having a swimming pool is a big selling point for their homes, this isn't going to be the case nationwide. According to HomeAdvisor, the average cost to install a pool is over $27,000. That doesn't include the annual maintenance costs, ranging between $500 and $4,000. It's these maintenance costs, plus the work that homeowners will have to either do themselves or contract out in order to keep their pool sparkling clean that will turn off many potential buyers. Add in the additional insurance requirements that homeowners with pools will need to purchase, and it should be clear why many prospective buyers would rather not invest in a home that comes with a pool.

This is why you should only commit to the cost of installing a pool if you truly want to use it yourself and expect to stay in your home for at least five years. Otherwise, it might make more sense to invest in a membership to your local pool.

3. Bathroom and kitchen upgrades

Remodeling your bathroom and/or kitchen is an excellent way to increase your home's value, right? Yes and no. While replacing dingy tiling and updating old appliances will definitely help your home shine for potential buyers, there's such a thing as going overboard with your bathroom or kitchen upgrades.

Specifically, if you add granite countertops, custom-made cabinets, stainless steel appliances, and ceramic tiles to your kitchen and bathroom, but the rest of the home is still an ordinary suburban home, potential buyers will see the house as a work-in-progress, rather than a home that feels move-in ready. Over-improving the bath and kitchen could make buyers think that it's not worth the effort to try to get the rest of the house to match. (See also: 9 Home Improvements You Should Always Negotiate)

4. Built-in high-end electronics

We may all dream of living in a George Jetson house — where every possible electronic need you have is already built in — but committing to this kind of renovation may hurt your resale value.

There are a couple of reasons for this. First, while your personal movie theater (with remote-controlled state-of-the-art projector) may be exactly what you want from your home, a potential buyer may just see a room that will need to be torn out and remodeled as soon as they move in. Plus, technology advances at a breakneck speed, so your cutting-edge electronics will soon look as dated as shag carpeting and harvest gold refrigerators.

If you need or want built-in high-end electronics in your home, make sure you're installing them for your own pleasure and comfort, because it's unlikely a buyer will appreciate them too.

5. Extravagant landscaping

Making improvements to your landscaping requires a gentle touch. On the one hand, landscaping is often touted as an important aspect of curb appeal, and making sure your yard and garden look attractive and welcoming is certainly a great way to draw in potential buyers.

On the other hand, an elaborate landscaping remodel can turn off buyers. Those with black thumbs might look at your vast flowering garden with sculpted shrubs and pond and decide they are not up for the challenge of keeping it up, and those who do love to garden might not like your vision and want to start over.

If recreating the gardens of Versailles is how you make your house feel like a home, then there's nothing wrong with investing in this kind of renovation. But make sure you're doing this kind of work for yourself, and not because you hope to make back the money you spent once you're ready to sell. (See also: 14 Ways to Make Your Yard Look Awesome for Under $100)

Renovate for the right reasons

While many experts focus on resale value as the deciding factor on whether to take on a home improvement project, the important thing to remember is that you live in your house now. Deciding which home renovations to work on based on what someone else might like is the way madness lies.

When you make improvements to your home, make sure you take your own comfort, your plans for living in the home, and the potential resale value into consideration. They all matter.

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Protect Yourself From Credit Card Theft

Emily Guy Birken — Sat, 07 Nov 2020 22:45:33 +0000

Last fall, I received an email that appeared to be from my web host. The email claimed that there was a problem with my payment information and asked me to update it. I clicked on the link in the email and entered my credit card number, thinking that a recent change I'd made to my site must have caused a problem.

The next morning, I logged onto my credit card account to find two large unauthorized purchases. A scammer had successfully phished my payment information from me.

This failure of security is pretty embarrassing for a personal finance writer. I know better than to click through an email link claiming to be from my bank, credit card lender, or other financial institution. But because the email came from a source that wasn't specifically financial (and because I was thinking about the changes I had made to my website just the day before), I let myself get played.

Thankfully, because I check my credit card balance daily, the scammers didn't get away with it. However, it's better to be proactive about avoiding credit card theft so you're not stuck with the cleanup, which took me several months to complete.

Here's how you can protect yourself from credit card theft.

Protecting your physical credit card

Stealing your physical credit or debit card is in some respects the easiest way for a scammer to get their hands on your sweet, sweet money. With the actual card in hand, a scammer has all the information they need to make fraudulent purchases: the credit card number, expiration date, and the security code on the back.

That means keeping your physical cards safe is one of the best ways to protect yourself from credit card theft. Don't carry more cards than you intend to use. Having every card you own in a bulging wallet makes it more likely someone could steal one when you're not paying attention and you may not realize it's gone if you have multiple cards.

Another common place where you might be separated from your card is at a restaurant. After you've paid your bill, it can be easy to forget if you've put away your card (especially if you've been enjoying adult beverages). So make it a habit to confirm that you have your card before you leave a restaurant.

If you do find yourself missing a credit or debit card, make sure you call your bank immediately to report it lost or stolen. The faster you move to lock down the card, the less likely the scammers will be able to make fraudulent charges. Make sure you have your bank's phone number written down somewhere so you're able to contact them quickly if your card is stolen or lost. (See also: Don't Panic: Do This If Your Identity Gets Stolen)

Recognizing card skimmers

Credit card thieves also go high-tech to get your information. Credit card skimmers are small devices placed on a legitimate spot for a card scanner, such as on a gas pump or ATM.

When you scan your card to pay, the skimmer device captures all the information stored in your card's magnetic stripe. In some cases, when there's a skimmer placed on an ATM, there's also a tiny camera set up to record you entering your PIN so the fraudster has all the info they need to access your account.

The good news is that it's possible to detect a card skimmer in the wild. Gas stations and ATMs are the most common places where you'll see skimmer devices. Generally, these devices will often stick out past the panel rather than sit flush with it, as the legitimate credit card scanner is supposed to. Other red flags to look for are scanners that seem to jiggle or move slightly instead of being firmly affixed, or a pin pad that appears thicker than normal. All of these can potentially indicate a skimmer is in place.

If you find something that looks hinky, go to a different gas station or ATM. Better safe than sorry. (See also: 18 Surprising Ways Your Identity Can Be Stolen)

Protecting your credit card numbers at home

Your home is another place thieves will go searching for your sensitive information. To start, you likely receive credit card offers, the cards themselves, and your statements in the mail. While mail theft is relatively rare (it's a federal crime, after all), it's still a good idea to make sure you collect your mail daily and put a hold on it when you go out of town.

Once you get your card-related paperwork in the house, however, you still may be vulnerable. Because credit card scammers are not above a little dumpster diving to get their hands on your credit card number. This is why it's a good idea to shred any paperwork with your credit card number and other identifying information on it before you throw it away.

Finally, protecting your credit cards at home also means being wary about whom you share information with over the phone. Unless you've initiated a phone call of your own volition — not because you're calling someone who left a voicemail — you should never share your credit card numbers over the phone. Scammers will pose as customer service agents from your financial institution or a merchant you frequent to get your payment information. To be sure, you can hang up and call the institution yourself using the main phone number.

Keeping your cards safe online

You should never provide your credit card information via a link in an email purporting to be from your financial institution or a merchant. Scammers are able to make their fake emails and websites look legitimate, which was exactly the reason I fell victim to this fraud.

But even with my momentary lapse in judgment about being asked for my payment information from my "web host," there were other warning signs that I could've heeded if I had been paying attention.

The first is the actual email address. These fake emails will often have a legitimate looking display name, which is the only thing you might see in your email. However, if you hover over or click on the display name, you can see the actual email address that sent you the message. Illegitimate addresses do not follow the same email address format you'll see from the legitimate company.

In addition to that, looking at the URL that showed up when I clicked the link could've told me something weird was going on. Any legitimate site that needs your financial information will have a secure URL to accept your payment. Secure URLs start with https:// (rather than http://) and feature a lock icon in the browser bar. If these elements are missing, then you should not enter your credit card information. (See also: 3 Ways Millennials Can Avoid Financial Fraud)

Daily practices that keep you safe

In addition to these precautions, you can also protect your credit cards with the everyday choices you make. For instance, using strong, unique passwords for all of your online financial services, from shopping to banking, can help you prevent theft. Keeping those strong passwords safe — that is, not written down on a post-it note on your laptop — will also help protect your financial information.

Regularly going over your credit card and banking statements can also help ensure that you're the only one making purchases with your credit cards. It was this daily habit of mine that made sure my scammers didn't actually receive the computer they tried to purchase with my credit card. The fact that I check my balance daily meant I was able to shut down the fraudulent sale before they received the goods, even though I fell down on the job of protecting my credit card information.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Reasons Not to Use Debit Cards When You Shop Online

Holly Johnson — Sat, 07 Nov 2020 22:45:14 +0000

Many consumers use their debit cards for everything they buy. Using debit instead of paying with a credit card can help you avoid the potential for debt. The money is taken out of your bank account directly and immediately, so there’s little chance to spend more than you have, unlike using a credit card.

But when shopping online, there are reasons to consider using a credit card instead.

Using a debit card for online purchases can mean enduring greater losses if you're a victim of fraud. Plus, you're giving up valuable consumer protections and rewards each time you make a purchase with debit in a store or online.

Here are all the reasons you may want to stop using debit and use a credit card instead.

1. You may be putting yourself at risk for fraud

It's easy to assume you won't be liable for fraudulent purchases made with your debit card or checking account number, but this isn't the case. Where most credit cards come with zero fraud liability thanks to rules enacted in the Fair Credit Billing Act (FCBA), the same protections don't apply to transactions made with a debit card.

In fact, someone who finds your debit card number could wipe out all the money in your accounts. If you don't notice or report it in time, you won't have any way to get your money back.

According to the Federal Trade Commission (FTC), your level of liability depends on when you notice the fraud and report it. For example, if you report fraud within two business days after it's noticed, you're only liable for up to $50 in losses. If you report fraud within two to 60 days of your statement being mailed to you, you're only liable for up to $500. If you fail to report fraud once it's been 60 days from the date your statement was mailed to you, the FTC notes that you could lose "all the money taken from your ATM/debit card account, and possibly more; for example, money in accounts linked to your debit account."

2. You're missing out on rewards

In addition to putting yourself at risk for fraud, there are plenty of ways you're missing out when you shop online with a debit card. For example, you could be earning cash back or travel rewards if you made the same purchases with a rewards or travel credit card. These rewards can add up quickly, making it easier to see the world or splurge on merchandise, gift cards, and more.

While you can typically earn 1% to 3% back with a rewards or travel credit card, you can also double up on rewards by shopping through a cash back, travel rewards, or airline portal. You can also shop in portals with a debit card in some cases, but you'll mostly be limited to earning airline miles or cash back. (See also: How to Use Airline Shopping Portals to Cash In On Rewards)

3. You won't earn any sign-up bonuses

Using a debit card when you shop online also means giving up on the possibility of earning big sign-up bonuses. Keep in mind that many rewards credit cards offer consumers the chance to earn bonuses worth $500 or more when they meet a minimum spending requirement within a few months.

You may think you need to pay the annual fee on a credit card to qualify for sign-up bonuses or ongoing rewards, but this is far from the truth. The reality is, there are plenty of rewards credit cards that dole out sizable bonuses, ongoing rewards, and more without charging a fee each year. (See also: Don't Make These 6 Credit Card Sign-up Bonus Mistakes)

4. You're giving up valuable consumer protections

Another reason to use credit instead of debit is the fact that you could qualify for valuable consumer protections and free insurance. This can include travel protections like trip cancellation/interruption insurance, rental car insurance, travel accident insurance, baggage delay insurance, and more.

Other protections that can apply to your online purchases include extended warranties, purchase protection, and guaranteed returns. Most of the time, you won't qualify for any of these perks if you pay for your online purchases with a debit card. (See also: How Credit Cards Protect Your Purchases from Damage or Theft)

5. You're not building credit history

The final reason you may want to stop using your debit card is the fact that you're not building credit history based on your online purchases and everyday spending. When you use credit instead of debit, on the other hand, you're making regular purchases and payments that are reported to the three credit reporting agencies — Experian, Equifax, and TransUnion.

Having your credit usage and payments reported to the credit bureaus is huge because it helps prove your creditworthiness and gives them a basis to increase your credit score over time. Using a debit card certainly won't hurt your credit score, but it won't help it, either.

Considering a credit card? Here's a warning

While using debit online can be more risky and less rewarding, it's still important to figure out if you're a candidate for credit card use. While credit cards do come with better protection against fraud, the potential for rewards, and valuable consumer protections, they can make it easier to overspend and wind up in debt.

Before you sign up for a credit card and start using it for purchases, it's important to make sure you're committed to staying on budget and spending only what you can afford. If you wind up with a mountain of debt with the high interest rates most credit cards charge, the rewards and protections you receive won't be much help.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

16 Small Steps You Can Take Now to Improve Your Finances

Alicia Rose Hudnett — Wed, 04 Nov 2020 17:32:44 +0000

You have all kinds of financial goals you want to achieve, but where should you begin? There are so many different aspects of money management that it can be difficult to find a starting point when trying to achieve financial success. If you're feeling lost and overwhelmed, take a deep breath. Progress can be made in tiny, manageable steps. Here's are 16 small things you can do right now to improve your overall financial health. (See also: These 13 Numbers Are Crucial to Understanding Your Finances)

1. Create a household budget

The biggest step toward effective money management is making a household budget. You first need to figure out exactly how much money comes in each month. Once you have that number, organize your budget in order of financial priorities: essential living expenses, contributions to retirement savings, repaying debt, and any entertainment or lifestyle costs. Having a clear picture of exactly how much is coming in and going out every month is key to reaching your financial goals.

2. Calculate your net worth

Simply put, your net worth is the total of your assets minus your debts and liabilities. You're left with a positive or negative number. If the number is positive, you're on the up and up. If the number is negative — which is especially common for young people just starting out — you'll need to keep chipping away at debt.

Remember that certain assets, like your home, count on both sides of the ledger. While you may have mortgage debt, it is secured by the resale value of your home. (See also: 10 Ways to Increase Your Net Worth This Year)

3. Review your credit reports

Your credit history determines your creditworthiness, including the interest rates you pay on loans and credit cards. It can also affect your employment opportunities and living options. Every 12 months, you can check your credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) for free at annualcreditreport.com. It may also be a good idea to request one report from one bureau every four months, so you can keep an eye on your credit throughout the year without paying for it.

Regularly checking your credit report will help you stay on top of every account in your name and can alert you to fraudulent activity.

4. Check your credit score

Your FICO score can range from 300-850. The higher the score, the better. Keep in mind that two of the most important factors that go into making up your credit score are your payment history, specifically negative information, and how much debt you're carrying: the type of debts, and how much available credit you have at any given time. (See also: How to Boost Your Credit Score in Just 30 Days)

5. Set a monthly savings amount

Transferring a set amount of money to a savings account at the same time you pay your other monthly bills helps ensure that you're regularly and intentionally saving money for the future. Waiting to see if you have any money left over after paying for all your other discretionary lifestyle expenses can lead to uneven amounts or no savings at all.

6. Make minimum payments on all debts

The first step to maintaining a good credit standing is to avoid making late payments. Build your minimum debt reduction payments into your budget. Then, look for any extra money you can put toward paying down debt principal. (See also: The Fastest Way to Pay Off $10,000 in Credit Card Debt)

7. Increase your retirement saving rate by 1 percent

Your retirement savings and saving rate are the most important determinants of your overall financial success. Strive to save 15 percent of your income for most of your career for retirement, and that includes any employer match you may receive. If you're not saving that amount yet, plan ahead for ways you can reach that goal. For example, increase your saving rate every time you get a bonus or raise.

8. Open an IRA

An IRA is an easy and accessible retirement savings vehicle that anyone with earned income can access (although you can't contribute to a traditional IRA past age 70½). Unlike an employer-sponsored account, like a 401(k), an IRA gives you access to unlimited investment choices and is not attached to any particular employer. (See also: Stop Believing These 5 Myths About IRAs)

9. Update your account beneficiaries

Certain assets, like retirement accounts and insurance policies, have their own beneficiary designations and will be distributed based on who you have listed on those documents — not necessarily according to your estate planning documents. Review these every year and whenever you have a major life event, like a marriage.

10. Review your employer benefits

The monetary value of your employment includes your salary in addition to any other employer-provided benefits. Consider these extras part of your wealth-building tools and review them on a yearly basis. For example, a Flexible Spending Arrangement (FSA) can help pay for current health care expenses through your employer and a Health Savings Account (HSA) can help you pay for medical expenses now and in retirement. (See also: 8 Myths About Health Savings Accounts — Debunked!)

11. Review your W-4

The W-4 form you filled out when you first started your job dictates how much your employer withholds for taxes — and you can make changes to it. If you get a refund at tax time, adjusting your tax withholdings can be an easy way to increase your take-home pay. Also, remember to review this form when you have a major life event, like a marriage or after the birth of a child. (See also: Are You Withholding the Right Amount of Taxes from Your Paycheck?)

12. Ponder your need for life insurance

In general, if someone is dependent upon your income, then you may need a life insurance policy. When determining how much insurance you need, consider protecting assets and paying off all outstanding debts, as well as retirement and college costs. (See also: 15 Surprising Insurance Policies You Might Need)

13. Check your FDIC insurance coverage

First, make sure that the banking institutions you use are FDIC insured. For credit unions, you'll want to confirm it's a National Credit Union Administration (NCUA) federally-covered institution. Federal deposit insurance protects up to $250,000 of your deposits for each type of bank account you have. To determine your account coverage at a single bank or various banks, visit FDIC.gov.

14. Check your Social Security statements

Set up an online account at SSA.gov to confirm your work and income history and to get an idea of what types of benefits, if any, you're entitled to — including retirement and disability.

15. Set one financial goal to achieve it by the end of the year

An important part of financial success is recognizing where you need to focus your energy in terms of certain financial goals, like having a fully funded emergency account, for example.

If you're overwhelmed by trying to simultaneously work on reaching all of your goals, pick one that you can focus on and achieve it by the end of the year. Examples include paying off a credit card, contributing to an IRA, or saving $500.

16. Take a one-month spending break

Unfortunately, you can never take a break from paying your bills, but you do have complete control over how you spend your discretionary income. And that may be the only way to make some progress toward some of your savings goals. Try trimming some of your lifestyle expenses for just one month to cushion your checking or savings account. You could start by bringing your own lunch to work every day or meal-planning for the week to keep your grocery bill lower and forgo eating out. (See also: How a Simple "Do Not Buy" List Keeps Money in Your Pocket)

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This article is from Alicia Rose Hudnett of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Maximize Rewards on Everyday Spending

Holly Johnson — Tue, 03 Nov 2020 17:32:44 +0000

While many rewards enthusiasts focus on signing up for new credit cards to earn signup bonuses, not everyone has the time or desire to play the signup game. There is effort involved in tracking multiple cards, annual fees, and rewards programs, after all, and some people don't want to spend their time or mental energy this way.

If you're someone who falls into this category, you may be better off maximizing one or two cards instead of chasing rewards. Fortunately, you can earn plenty of rewards over time if you're savvy about your card's benefits and bonus categories.

The key to getting the most out of your rewards cards is understanding how they work and looking for opportunities to earn more points on your everyday spending. Here are some tips that can help.

Brainstorm every bill you could pay with a credit card

Because rewards cards offer points based on each dollar you spend, maximizing the amount you can spend on credit is the best way to boost your rewards haul. The smartest strategy to use here is figuring out how many of your monthly bills you can pay with a credit card.

While you may not be notified or aware, it's possible that bills you've been paying with a check or debit card for years can be paid with a credit card without any fees. While your bills may vary, some expenses you should try to pay with a credit card include:

Rent
Utility bills like electric or gas
Health insurance
Cable television and internet
Cell phone
Taxes
Daycare
Auto and home insurance
Subscription services
College tuition or student loans
Medical bills
Lawn care

Keep in mind that these are just some of the bills you could be paying with credit. Depending on your situation, you could have additional, uncommon expenses to cover that could be paid with credit with ease.

Also, remember that these additional bills should be paid with credit on top of your everyday expenses like groceries, dining out, gas or bus fare, and miscellaneous spending. Every time you buy something in person or online, you should strive to pay with your rewards card if you can.

Leverage your rewards card bonus categories

It's also important to leverage your favorite card bonus categories, whatever they may be. This is especially important if you have a few cards with different bonus categories since you'll want to make sure you're using the right card for bills that let you earn bonus points.

Let's say you have a travel credit card that earns 3x points on dining and travel and another card that earns 6x points at the grocery store. In that case, you would be smart to use the travel card for dining and travel purchases and your other card when you stock up on food. While the amount of rewards you earn with individual purchases may seem nominal, using the right card for the right purchase can help you earn a lot more rewards over time.

Set up auto-pay bills to be paid with credit

Most of us have bills set up to be paid automatically, whether it's our Netflix and Hulu subscriptions, gym membership, or utility bills. Make sure each bill you have set up to be paid automatically is set up to be paid with your rewards card and not a debit card. This way, you can earn rewards points on those expenses every month.

Use shopping portals and dining clubs

Many flexible rewards programs, frequent flyer programs, and hotel loyalty programs have shopping portals you can access to earn extra points. Major airlines like American, Delta, and United also have shopping portals that work similarly. (See also: How to Maximize Rewards Through Credit Card Shopping Portals)

Some programs like Southwest and Delta also offer dining clubs. These programs let you earn additional points or miles just for dining at participating restaurants in your area. It's easy and it's free to join, so you may as well earn extra miles on your spending if you're going to dine out anyway. (See also: Everything You Need to Know About Airline Dining Rewards Programs)

How much the average family can earn

If you are skeptical the average family can rack up meaningful rewards without signing up for new cards over and over again, look at how this might work in real life. For example, imagine a family of four with two rewards card-toting adults. Across the two of them, they have:

A cash back card that earns 2% back
A travel credit card that earns 3% on dining and travel
A rewards card that earns 6% cash back at the grocery store on up to $6,000 in spending each year

To figure out how much this family might earn, we used Bureau of Labor Statistics spending averages from 2017. Here's a rundown of that data for the year plus how much a family could earn in rewards over 12 months based on average expenses:

Food at home ($4,363): $261.78 in rewards at 6%
Food away from home ($3,365): $100.95 at 3%
Utilities, fuels, and public services ($3,836): $76.72 at 2%
Household operations ($1,412): $28.24 at 2%
Household supplies ($755): $45.30 at 6%
Household furnishings and equipment ($1,987): $39.74 at 2%
Apparel and services ($1,833): $36.66 at 2%
Gasoline and motor oil ($1,968): $39.36 at 2%
Other vehicle expenses ($2,842): $56.84 at 2%
Healthcare ($4,928): $98.56 at 2%
Entertainment ($3,203): $64.06 at 2%
Personal care products ($762): $45.72 at 6%
Education ($1,491): $29.82 at 2%

Total rewards: $923.75

While $900+ is a lot to earn in rewards within a year, you have the potential to earn a lot more. After all, these are just some of the expenses the average family faces and not all of them. If you could pay some additional big bills with credit each month like daycare or your rent, you could significantly add to your bottom line.

What to watch out for

While maximizing rewards cards is a smart idea if you're using them already anyway, there are always pitfalls to be aware of when you're using a credit card. Here's what to watch out for during your quest for more cash back and travel rewards.

Fees for using credit

While there are many bills you can pay with credit without a fee, some vendors, merchants, and service providers charge a fee to use a credit card as payment. Fees are especially prevalent on bills such as utilities, cable or internet, rent, and insurance. Make sure to verify you aren't being charged a fee to use credit before you proceed.

Annual fees

Don't forget that some rewards cards charge annual fees. These fees may be worth it depending on your spending and rewards haul, but you should always factor them into the equation to make sure each fee is worth paying. If you're against paying annual fees, look for rewards cards that don't charge one.

Budgeting mishaps

Using a credit card for all your expenses may simplify your financial life, but it could also cause your budget to fall out of whack. Make sure you're only spending on purchases you planned to make anyway, and that you're tracking your spending and paying off your credit cards regularly.

Debt

Never use credit cards for purchases you can't afford to repay if you're pursuing rewards. The interest you'll pay will always be much more than the rewards you earn. If you're worried using credit will cause you to rack up debt you can't afford to repay, you're better off sticking to cash or debit instead.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Make Better Financial Decisions

Barbara O’Neill — Sun, 01 Nov 2020 17:32:44 +0000

A key financial decision people struggle to make is how to allocate savings for multiple financial goals. Do you save for several goals at the same time or fund them one-by-one in a series of steps? Basically, there are two ways to approach financial goal-setting:

Concurrently: Saving for two or more financial goals at the same time.

Sequentially: Saving for one financial goal at a time in a series of steps.

Each method has its pros and cons. Here's how to decide which method is best for you.

Sequential goal-setting

Pros

You can focus intensely on one goal at a time and feel a sense of completion when each goal is achieved. It's also simpler to set up and manage single-goal savings than plans for multiple goals. You only need to set up and manage one account.

Cons

Compound interest is not retroactive. If it takes up to a decade to get around to long-term savings goals (e.g., funding a retirement savings plan), that's time that interest is not earned.

Concurrent goal-setting

Pros

Compound interest is not delayed on savings for goals that come later in life. The earlier money is set aside, the longer it can grow. Based on the Rule of 72, you can double a sum of money in nine years with an 8 percent average return. The earliest years of savings toward long-term goals are the most powerful ones.

Cons

Funding multiple financial goals is more complex than single-tasking. Income needs to be earmarked separately for each goal and often placed in different accounts. In addition, it will probably take longer to complete any one goal because savings is being placed in multiple locations.

Research findings

Working with Wise Bread to recruit respondents, I conducted a study of financial goal-setting decisions with four colleagues that was recently published in the Journal of Personal Finance. The target audience was young adults with 69 percent of the sample under age 45. Four key financial decisions were explored: financial goals, homeownership, retirement planning, and student loans.

Results indicated that many respondents were sequencing financial priorities, instead of funding them simultaneously, and delaying homeownership and retirement savings. Three-word phrases like “once I have…,", “after I [action],” and “as soon as…,” were noted frequently, indicating a hesitancy to fund certain financial goals until achieving others.

The top three financial goals reported by 1,538 respondents were saving for something, buying something, and reducing debt. About a third (32 percent) of the sample had outstanding student loan balances at the time of data collection and student loan debt had a major impact on respondents’ financial decisions. About three-quarters of the sample said loan debt affected both housing choices and retirement savings.

Actionable steps

Based on the findings from the study mentioned above, here are five ways to make better financial decisions.

1. Consider concurrent financial planning

Rethink the practice of completing financial goals one at a time. Concurrent goal-setting will maximize the awesome power of compound interest and prevent the frequently-reported survey result of having the completion date for one goal determine the start date to save for others.

2. Increase positive financial actions

Do more of anything positive that you're already doing to better your personal finances. For example, if you're saving 3 percent of your income in a SEP-IRA (if self-employed) or 401(k) or 403(b) employer retirement savings plan, decide to increase savings to 4 percent or 5 percent.

3. Decrease negative financial habits

Decide to stop (or at least reduce) costly actions that are counterproductive to building financial security. Everyone has their own culprits. Key criteria for consideration are potential cost savings, health impacts, and personal enjoyment.

4. Save something for retirement

Almost 40 percent of the respondents were saving nothing for retirement, which is sobering. The actions that people take (or do not take) today affect their future selves. Any savings is better than no savings and even modest amounts like $100 a month add up over time.

5. Run some financial calculations

Use an online calculator to set financial goals and make plans to achieve them. Planning increases people’s sense of control over their finances and motivation to save. Useful tools are available from FINRA and Practical Money Skills.

What's the best way to save money for financial goals? It depends. In the end, the most important thing is that you're taking positive action. Weigh the pros and cons of concurrent and sequential goal-setting strategies and personal preferences, and follow a regular savings strategy that works for you. Every small step matters!

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This article is from Barbara O’Neill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Things Keeping You From a Life of Financial Independence

Toni Husbands — Sat, 10 Oct 2020 17:32:44 +0000

Financial independence can mean different things to everyone. A 2013 survey from Capital One 360 found that 44 percent of American adults feel that financial independence means not having any debt, 26 percent said it means having an emergency savings fund, and 10 percent link financial independence with being able to retire early.

I define financial independence as the time in life when my assets produce enough income to cover a comfortable lifestyle. At that point, working a day job will be optional.

But what about the rest of America? How would you define financial independence? If freedom from debt is what you're seeking, here are five areas that could be holding you back.

1. Not having clear, financial goals

If you're not planning for financial independence, chances are you won't reach it. The future is full of unknowns, but having an idea of when you'd like to achieve financial freedom should be your first step.

Do you want to retire before you turn 65? Do you want to travel the world with your spouse once you reach early retirement? Both goals will require a significant amount of cash stashed away, so it's important to start saving ASAP to make those dreams come true. (See also: 15 Secrets of People Who Retire Early)

2. Not saving enough

It's important to identify how much you're currently saving, and how much you need to save in order to retire when you want to, or reach another major financial goal. Using a calculator like Networthify can help you play with various money-saving scenarios and make realistic projections about retirement.

Another way to make saving money easier is to automate it. Setting up an automatic weekly or monthly transfer from your checking account into your savings account will take the extra task off your already full plate. Even if it's as little as $5 a week, it's enough to start building that nest egg. (See also: 5 MicroSaving Tools to Help You Start Saving Now)

3. Not paying off consumer debt

If you're carrying a credit card balance each month, financing cars, or just paying the minimum on your student loans, compound interest is working against you. Creating an aggressive plan to pay off debt quickly should be a number one priority for anyone who is serious about achieving financial independence. Otherwise, your money is working for your creditors, not you.

If you prefer to tackle credit card debt first, there are several debt management methods you can try, including the Debt Snowball Method and the Debt Avalanche Method. The Debt Snowball Method has you paying off the card with the smallest balance first, working your way up to the card with the largest balance. The Debt Avalanche Method is similar, but here you would pay more than the monthly minimum on the card with the highest interest rate first, working towards paying off the card with the lowest interest rate. Both are highly effective methods, and choosing one really just depends on your preference.

4. Giving into lifestyle creep

A high income does not automatically make you wealthy. As you move up in your career, the temptation to upgrade your lifestyle to match your income will be ever-present. After all, you work hard, so why not reward yourself with the latest gadgets and toys?

However, if you continue to spend and live modestly, you can put more money away for travel or retirement with every pay raise you earn. Financial freedom will be just around the corner if you resist that temptation to upgrade your home, car, and electronics to match your income bracket. (See also: 9 Ways to Reverse Lifestyle Creep)

5. Being driven by FOMO

Fear Of Missing Out, aka FOMO, is the modern version of keeping up with the Joneses. Except now you have access to the Joneses' social media platforms, and they go on all kinds of fun adventures. Social media is a great tool for keeping in touch, but it can also make you want to spend all your money on lavish vacations, clothes, spa treatments, and other extravagent things. Resist that urge. And block the Joneses on social media if needed. (See also: Are You Letting FOMO Ruin Your Finances?)

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This article is from Toni Husbands of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Use a Personal Loan or a Home Equity Loan to Remodel Your Home?

Holly Johnson — Fri, 09 Oct 2020 17:32:44 +0000

The costs of remodeling your home can add up quickly, and they can even be exorbitant, depending on the project you take on. According to Remodeling Magazine's 2019 Cost vs. Value study, a minor kitchen remodel would set you back $22,507 this year, replacing a roof with asphalt shingles costs an average of $22,636, and homeowners paid $47,427 on average for a mid-range bathroom addition.

The fact that remodeling can be so pricey means not everyone has the cash to pay in full. In many cases, homeowners have to borrow the money they need for a project, and most of the time they use a personal loan or a home equity loan. Here's how to decide which option is best for your own remodeling project.

Pros of home equity loans

When you own a home, it's easy to automatically assume a home equity loan would serve your needs best — and you could be right. Home equity loans let you borrow against the value in your home and use it as collateral.

Low and fixed interest rates

These secured loans tend to come with low interest rates and fair terms. Most home equity loans last for 10 to 30 years, making it easy to tailor your loan to your needs and monthly budget. Home equity loans also come with fixed interest rates, fixed monthly payments, and fixed repayment timelines, so they're easy to plan for.

Easy application process

You can also compare and apply for home equity loans online and from the comfort of your home, although you may need an appraisal and other steps completed before you can move forward.

Tax benefits

As a final upside, you may be able to write off the interest you pay on your home equity loan, provided you itemize. While you can't deduct home equity interest if you use your home equity loan proceeds for personal expenses, the interest is still deductible if you use your loan proceeds to "buy, build, or substantially improve" your home, notes the IRS. (See also: Home Equity Loan or Heloc: Which is Right For You?)

Cons

There aren't a lot of downsides when it comes to home equity loans, but there are a few issues to be aware of.

You might not qualify

Depending on how much equity you have in your home, you may not even qualify for this type of loan. According to the Federal Trade Commission (FTC), you can typically only borrow up to 85 percent of your home's value across a first mortgage and home equity loan. This means that, if your home is worth $200,000, you could only borrow up to $170,000 across a first mortgage and home equity loan.

The possibility of foreclosure

Second, the fact that you're putting your home up as collateral means you could lose your property to foreclosure if you stop paying your home equity loan bills.

Pros of personal loans

Personal loans are popular for home remodels for a few reasons.

Fixed payments and interest rates

Like home equity loans, they come with fixed monthly payments and a fixed interest rate that will never change.

Your home is not collateral

Since personal loans don't require you to put up your home as collateral, the amount you can borrow isn't tied to your home equity. For that reason, they can be a good option if you don't have a ton of equity in your home but still need to borrow money.

Less red tape

A final reason to consider a personal loan is that there aren't quite as many hoops to jump through when you apply. You don't have to prove the value of your home, for example, and there's typically a lot less paperwork involved.

Cons

While personal loans might be easier to manage and apply for, there are still a couple major downsides.

You can't deduct the interest

One issue with using a personal loan for a home remodeling project is that you cannot deduct the interest on your loan on your taxes no matter what.

Higher interest rates

Personal loans may come with slightly higher interest rates than home equity loans since these loans are unsecured.

Which option is right for you?

At the end of the day, home equity loans and personal loans can both work well for your home remodeling project. They both have fixed interest rates and fixed monthly payments you can easily plan for, and either option could let you borrow enough money to bring your remodeling project to fruition.

Still, there are plenty of factors to consider before you decide. For example:

How much equity do you have in your home?
Do you want to put your home up as collateral?
How much do you need to borrow?

Also, make sure you consider any fees involved in both home equity loans and personal loans. Many lenders offer products that come with no origination fees, application fees, or hidden fees, but those typically only go to consumers with good or excellent credit. (See also: 5 Personal Loan Fees You Should Never, Ever Pay)

Fortunately, it's easy to compare home equity loan and personal loan terms online. Some websites like LendingTree even let you compare multiple loan options in one place.

No matter what you do, take the time to compare all your loan options in terms of their fees, interest rates, and repayment timelines, along with the monthly payment you'll need to commit to. With enough research, you could have your big project up and running in no time.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Money Moves to Make Before You Turn 40

Holly Johnson — Thu, 01 Oct 2020 17:32:44 +0000

Turning the big 4-0 is a perfect time to reflect on how far you've come in life, the milestones you've surpassed, and the relationships you've built. But for some people — especially those who don't have their financial ducks in a row — it's a time when panic sets in.

After all, turning 40 can make you painfully aware that time is running out to fix any financial mistakes you've made in the past. At the same time, you need to get serious about your money if you want to enjoy your golden years without financial stress. That's why financial advisers suggest a handful of money moves everyone should make before their 40th birthday.

1. Deal with consumer debt

Ryan Inman, a financial planner for doctors, says it's crucial to create a plan to deal with consumer debt well before your 40th birthday. That's especially true when it comes to high interest credit card debt. With the average credit card interest rate now over 17%, this type of debt can be difficult to pay off — and a big drain on your budget each month.

If your goal is paying off debt, there are multiple approaches to consider. You can attack it the old-fashioned way and pay as much as you can each month, or even try the debt snowball or debt avalanche methods. You can even apply for a balance transfer credit card that lets you secure 0% APR for up to 21 months.

Ideally, you should strive to have no debt other than your mortgage at this point in your life, says Inman.

While this may seem like a lofty goal, not having to make interest payments toward consumer debt will make it a lot easier to save more for retirement and play catch up on your investments if you're already behind.

2. Maximize your retirement savings

It's easy to think maxing out your retirement savings isn't necessary when you're young, but when your 40s hit, you become keenly aware of just how much more your nest egg needs to grow.

Financial planner Benjamin Brandt, who hosts a retirement podcast called Retirement Starts Today Radio, says he suggests anyone approaching 40 start maxing out their retirement savings. Remember that you'll set your contributions up through payroll out of your pre-tax income, so it's not as costly as it may seem. Also note that contributing the max to retirement will reduce your taxable income, which could mean a smaller income tax bill this year.

If you can't contribute the max, Brandt says to try to contribute more than you are now and inch your goal up slightly every year until you get there.

Brandon Renfro, an assistant professor of finance and financial planner in Hallsville, Texas, says that, at the very least, you should make sure you're getting the full employer match on your retirement plan. An employer match is the amount of money your employer might match when you save for retirement yourself. For example, your employer might agree to contribute up to 6% of your income each year as a match, but you have to contribute 6% to get the full amount.

Remember that your employer match is free money for the taking, and you should take advantage of any help you can get toward retirement savings as you approach your 40s.

3. Automate your finances

Certified Public Accountant Riley Adams, who also writes at Young and the Invested, says that your 40s are a good time to try to automate your investments if you haven't already. With more automation and money moving on its own, you're less likely to spend money on stuff you don't need or end up in a situation where you're inflating your lifestyle as your income grows.

"To protect yourself from yourself, learn to establish automated financial transactions to handle your money moves each paycheck," he says. "Doing so takes the hassle out of your hands and also puts your money to better use."

For example, you could set up an automatic bank transfer so a specific amount of money is transferred to a high-yield savings account every month. Or, you can set up automatic deposits into a brokerage account. Boosting your retirement savings in a workplace account can also be considered automation since the money is taken out of your paycheck automatically and invested on your behalf. (See also: 5 Ways to Automate Your Finances)

4. Purchase insurance based on your future finances

Financial planner Brenton Harrison of Henderson Financial Group says that, by your 40th birthday, you should also have your insurance needs squared away. However, you should strive to think of your insurance needs in future tense.

"It's tempting to determine your needs based on your current income and net worth," he says. "But for many people, their 40s are their peak earning years, meaning that the insurance needs you have before 40 might not be enough as your career progresses."

Harrison suggests sitting down and thinking about where you'd like to go in your career and where you plan to be financially in 10 years. From there, buy insurance based on that financial picture.

"If you know you can and will achieve a certain level of success, don't wait until you've reached it to start planning," he says.

While the types of insurance you'll need vary depending on your situation, think beyond the basics like homeowner's and auto insurance. For example, you may want to buy an umbrella insurance policy that extends your coverage limits in certain cases.

Also, make sure to get proper life insurance coverage," says financial planner Luis Rosa.

"If you have a family or are planning on having one in the near future, it is crucial to make sure that they are protected," he says. And you're much more likely to qualify for the coverage you need at a price you can afford when you're in your 40s (or before) and still relatively healthy.

5. Build an emergency fund

If you've struggled with your finances over the years and dealt with credit card debt multiple times, chances are good it's because you don't have an emergency fund. While any amount saved is better than nothing, most experts suggest keeping a separate fund for emergency expenses or job loss that's stocked with three to six months of expenses or more.

You never know what kind of roadblocks life will throw your way, but you'll be prepared for almost anything if you have savings set aside. And if you can't save six months of expenses, it's still best to start somewhere — even if you can only squirrel away a few thousand dollars.

Put your savings in an interest-bearing account and keep adding to it, and you'll eventually get there.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 5 Best Products for Dry Skin

Chrissa Hardy — Tue, 09 Jun 2020 08:00:06 +0000

Anyone with dry skin knows the discomfort of flaking, uneven makeup, and the ongoing effort to keep your face looking hydrated. You want it to look dewy, but not oily. And you want your moisturizer to keep working its magic without leaving a greasy residue. It's a tough balance to strike.

If you're looking for a new dry-skin focused product to add to your skincare routine, the five below are excellent picks that won't break your budget. (See also: The 5 Best Stay-At-Home Skincare Essentials)

Top 5 Products for Dry Skin

Yes To Cucumbers Gentle Milk Cleanser

An Amazon's Choice product, the dermatologist-recommended Yes To Cucumbers Gentle Milk Cleanser works well on all skin types, including dry or sensitive skin. The natural cleanser is free of parabens, phthalates, and SLS. The gentle formula has calming ingredients and antioxidants like green tea, aloe vera, and soy proteins to moisturize the skin while cleansing it.

The Allure "Best of Beauty" award-winner is recommended by Consumer Search and backed by outstanding online reviews.

Currently $8.44 on Amazon.com

TruSkin Vitamin C Serum With Hyaluronic Acid

TruSkin Vitamin C Serum With Hyaluronic Acid is the perfect blend of ingredients that your dry skin needs. Vitamin C blends with hyaluronic acid and vitamin E in this advanced formula to target common signs of aging, including dark spots, sun spots, brightness, firmness, wrinkles, and fine lines. And it's free of synthetic color additives, fragrance, and stabilizers, while dynamic active botanicals like aloe vera, MSM, botanical hyaluronic acid, witch hazel, and organic jojoba oil make this serum feel silky smooth on the skin.

It also has over 15,000 five-star reviews on Amazon.

Currently $19.99 at Amazon.com

Aveeno Positively Radiant Skin Daily Moisturizer

As Amazon’s #1 best-seller in moisturizers, the Aveeno Positively Radiant Skin Daily Moisturizer has a fast-absorbing formula that leaves skin soft and smooth. This oil-free, hypoallergenic, non-comedogenic moisturizer won’t clog pores and is clinically proven to improve skin tone and texture and reduce skin discoloration in as little as four weeks.

The soy proteins work to reduce blotchiness and discoloration, while helping to reduce the appearance of fine lines and wrinkles. It contains SPF 15 UVA/UVB sunscreen to protect against the damaging effects of sun. It's also backed by over 5,500 five-star reviews on Amazon.

Currently $12.98 on Amazon.com

Olay Regenerist Night Recovery Cream

The Olay Regenerist Night Recovery Cream contains an amino-peptide complex that will penetrate 10 layers of skin to regenerate the surface skin cells. Powerful anti-aging ingredients like vitamin E, green tea, and niacinamide help stimulate collagen and plump up fine lines and wrinkles overnight. The super-hydrating formula will also exfoliate the skin, so you will wake to softer, younger looking skin in the morning. The intensely moisturizing cream has a light purple color and botanical scent, and spreads easily over skin.

A little goes a long way, so this container should last you a long time. The dermatologist-recommended cream is non-greasy and ideal for people with normal, dry, or combination skin. It was selected as one of the best night creams by Total Beauty and has over 2,000 five-star reviews on Amazon.

Currently $22.99 on Amazon.com

Glam Up Facial Sheet Masks

Glam Up Facial Sheet Masks come in 12 types and scents to fit all of your skincare needs using natural extracts, including shea butter, tomato, avocado, oatmeal, green tea, peppermint, and more. They are not tested on animals and are hypoallergenic. The Glam Up masks are designed with three layers to improve absorption into the skin.

They're also free of talc, paraben, silicone, synthetic colors, and sodium sulfate, and backed by over 1,500 five-star reviews on Amazon.

Currently $9.88 at Amazon.com

And those are our recommendations for the best stay-at-home kitchen essentials. As always, be sure to check Wise Bread's Buying Calendar to learn when and how to buy just about anything!

This article is from Chrissa Hardy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 5 Best Products for Oily Skin

Chrissa Hardy — Fri, 05 Jun 2020 08:00:05 +0000

Anyone with oily skin knows that keeping the shine out of your t-zone is a constant struggle. You're always checking it, feeling for it, or using blotting sheets or face powder to hide it. Plus, people with oily skin are often prone to breakouts, and managing acne can feel like a full-time job.

Luckily, there are thousands of products on the market just for people with oily skin, and many of them are budget-friendly! If you're looking to combat that shine with a new product, here are some excellent options. (See also: The 5 Best Stay-At-Home Skincare Essentials)

Top 5 Products for Oily Skin

Cetaphil Gentle Skin Cleanser

Cetaphil Gentle Skin Cleanser is ideal for all skin types, including combination skin, and softens as it cleans. The mild, non-irritating, non-comedogenic, fragrance-free formula gently cleanses the skin and removes dirt, oil, and makeup (even stubborn eye makeup). It is commonly recommended by dermatologists and pediatricians because it's gentle enough for use on skin with conditions like psoriasis, rosacea, acne, and eczema. The gentle formula rinses easily and will leave your skin feeling soft and smooth, like you washed with lotion.

This cleanser is also backed by over 2,500 five-star reviews on Amazon.

Currently $18.90 on Amazon.com

Cosmedica Skincare Hyaluronic Acid Serum

The Cosmedica Skincare Hyaluronic Acid Serum is a best-seller on Amazon and can be used on all skin types. This serum is natural and organic, and improves overall skin texture and brightness. You'll see a noticeable difference in your skin in terms of plumpness, softness, and balance. And it's cruelty-free, paraben-free, and without dyes or fragrances.

It's also backed by over 10,000 five-star reviews on Amazon.

Currently $15.00 on Amazon.com

Aveeno Positively Radiant Skin Daily Moisturizer

As Amazon’s #1 best-seller in facial tinted moisturizers, the Aveeno Positively Radiant Skin Daily Moisturizer has a fast-absorbing formula that leaves skin soft and smooth. This oil-free, hypoallergenic, non-comedogenic moisturizer won’t clog pores and is clinically proven to improve skin tone and texture and reduce skin discoloration in as little as four weeks.

Currently $12.98 on Amazon.com

NYX Matte Blotting Paper

The NYX Matte Blotting Papers can eliminate excess oil, minimize pores, and even help prevent future breakouts and shine. These blotting papers are made of 100% pure pulpate paper and leave your complexion looking matte and gorgeous. They can refresh the skin and even help fight humidity to keep your skin matte all day. The 50 sheets have a five-year shelf life, so they will last in your purse or beauty bag.

They are also an Amazon best-seller, with hundreds of five-star reviews.

Currently $4.00 on Amazon.com

The Body Shop Tea Tree Face Mask

The Body Shop Tea Tree Face Mask can help with acne, breakouts, and oily skin. The silky cleansing clay mask contains lemon tea tree oil and Tamanu oil, and it has menthol, which creates a soothing effect for acne-prone skin, helping to calm irritation and redness. It's the perfect natural blemish fighter because it eliminates existing blemishes, prevents future breakouts, removes impurities, and controls oil and shine. It has antibacterial benefits and will leave your skin feeling deeply cleansed, refreshed, soft, smooth, and ready for makeup.

This natural alternative for blemish prone skin is recommended by Allure and is a Total Beauty Top-Rated Beauty Product. It has rave reviews online, including from those who struggle with acne.

Currently $14.49 on Amazon

And those are our recommendations for the best stay-at-home kitchen essentials. As always, be sure to check Wise Bread's Buying Calendar to learn when and how to buy just about anything!

This article is from Chrissa Hardy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 5 Best Hyaluronic Acid Serums

Chrissa Hardy — Tue, 02 Jun 2020 19:19:55 +0000

Hyaluronic acid has gained a reputation of being a miracle product for the skin, and for good reason. It relieves dry skin, accelerates the healing of wounds, and reduces the appearance of fine lines and wrinkles. And that's just to start. It can be a key ingredient in moisturizers and face masks, or it can be concentrated in a serum that you can apply as part of your everyday skincare routine.

If you're looking to give this versatile product a spin, any of the five below are excellent picks that won't break your budget. (See also: The 5 Best Stay-At-Home Skincare Essentials)

Top 5 Hyaluronic Acid Serums

Cosmedica Skincare Hyaluronic Acid Serum

It's also backed by over 15,000 five-star reviews on Amazon.

Currently $15.00 at Amazon.com

The Ordinary Hyaluronic Acid + B5 Serum

The Ordinary Hyaluronic Acid + B5 Serum is famous for a reason. This brand creates simple, straightforward skincare products for all skin types. The hyaluronic acid + B5 serum has a concentration of 2% for multi-depth hydration in a water-based formula and the B5 also enhances surface hydration.

This serum is cruelty-free and backed by over 2,000 five-star reviews on Amazon.

Currently $16.95 at Amazon.com

TruSkin Vitamin C Serum With Hyaluronic Acid

TruSkin Vitamin C Serum With Hyaluronic Acid is the perfect blend of ingredients that your skin needs. Vitamin C blends with hyaluronic acid and vitamin E in this advanced formula to target common signs of aging, including dark spots, sun spots, brightness, firmness, wrinkles, and fine lines. And it's free of synthetic color additives, fragrance, and stabilizers, while dynamic active botanicals like Aloe Vera, MSM, Botanical Hyaluronic Acid, Witch Hazel, and organic Jojoba oil make this serum feel silky smooth on the skin.

It also has over 15,000 five-star reviews on Amazon.

Currently $19.99 at Amazon.com

Yeouth Pure Hyaluronic Acid

Yeouth's Pure Hyaluronic Acid can diminish signs of dark circles, age spots, and puffiness when used regularly. This formula is made from naturally-derived ingredients that protect and nourish even the most sensitive skin, including delicate skin around the eyes and lips. It boosts collagen production and holds in moisture.

It's also cruelty-free and paraben-free, and backed by over 3,000 five-star reviews on Amazon.

Currently $21.95 at Amazon.com

Tree of Life Hyaluronic Acid Serum

The Tree of Life Hyaluronic Acid Serum also has vitamin C and vitamin E, and this formula is infused with special anti-aging ingredients designed to further enhance and activate hyaluronic acid's moisturizing properties. Hyaluronic acid is known for helping the skin stay supple and soft and reducing wrinkles and age spots.

It's backed by outstanding online reviews, including over 3,000 five-star reviews on Amazon.

Currently $10.95 at Amazon.com

And those are our recommendations for the best stay-at-home kitchen essentials. As always, be sure to check Wise Bread's Buying Calendar to learn when and how to buy just about anything!

This article is from Chrissa Hardy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 5 Best Eye Shadow Palettes

Chrissa Hardy — Fri, 29 May 2020 18:58:14 +0000

Just because you're going out less frequently doesn't mean you have to let your eye shadow game slip. I mean, you want to glow like a goddess on those Zoom meetings, right? And now you have plenty of time to perfect your look and find new colors to make your eyes pop.

You know your go-to colors, sure, but why not try something fun and new? Here are some excellent eye shadow palettes that offer a wide range of shades and won't break your budget. (See also: The 5 Best Stay-At-Home Beauty Essentials)

Top 5 Eye Shadow Palettes

Lamora Nude Eye Shadow Palette

The Lamora Eye Shadow Palette in nude is a best-seller for a reason. It was created with high-quality ingredients into a waterproof cream formula. In order to enhance the wearer's natural beauty, this palette offers 16 rich colors from rose gold to dark brown. The palette comes in a sleek case that's small enough to take on-the-go.

It includes a message inside that says "Be Your Own Kind of Beautiful," which is a reminder we all need, and it's backed by over 9,500 five-star reviews on Amazon.

Currently $15.95 at Amazon.com

UCANBE Twilight and Dusk Eye Shadow Palette

The UCANBE Twilight and Dusk Eye Shadow Palette includes 18 incredible shades — 10 matte, seven shimmer and one metallic glitter colors that will make your eyes catch everyone else's. All shades are waterproof, easy to blend, safe for sensitive skin, and has not been tested on animals. With the wide range of colors, you can easily take your look from day to night.

This palette is also backed by over 1,500 five-star reviews on Amazon.

Currently $9.98 at Amazon.com

L.A. Girl's Beauty Brick Eye Shadow Palette

L.A. Girl's Beauty Brick Eye Shadow Palette is the ideal palette to take on-the-go because of its magnetic case, double-sided applicator, and mirror so you can apply your shadow wherever you are. It has 12 highly pigmented nude shades featuring smooth mattes and dimensional shimmers. You can create a look for every occasion using the double-sided brush to contour, line, and highlight your lids.

It also has over 5,000 five-star reviews on Amazon.

Currently $6.99 at Amazon.com

Beauty Glazed Shimmer Eye Shadow Palette

The Beauty Glazed Shimmer Eye Shadow Palette offers 15 gorgeous colors in a long-lasting formula that you'll never want to take off. It's waterproof too, so no need to worry about the weather interfering with your look. From light pinks to bold blues, this palette is bound to make your eyes pop.

And it's backed by over 2,000 four-star reviews on Amazon.

Currently $9.99 at Amazon.com

SHANY Bold and Bright Eye Shadow Palette

If you want a complete palette to meet all of your makeup needs, the SHANY Bold and Bright Eye Shadow Palette is it. This palette has 120 bold colors to match every item of clothing in your closet, every mood, and every occasion. Each color is highly pigmented and won't smudge. Whether you're a beginner in eye makeup or a polished veteran, this palette will be your new favorite makeup item.

It's backed by outstanding online reviews, including over 1,000 four-star reviews on Amazon.

Currently $17.96 at Amazon.com

And those are our recommendations for the best stay-at-home kitchen essentials. As always, be sure to check Wise Bread's Buying Calendar to learn when and how to buy just about anything!

This article is from Chrissa Hardy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: