Your 40s aren’t just another decade — they’re a critical pivot point for your wealth. While it's tempting to keep your finances on autopilot, especially if you're crushing your goals, this is the time of your life when moving from doing things the same way to intentionally building financial security becomes paramount.

Why? Because it forces you to analyze your finances to ensure your money works as hard as you do. Whether it's budgeting for a down payment on a home, paying off high-interest debt or making sure you're on track to reach your retirement and savings goals, now is the time to flip the switch.

Here are essential money habits to master now to ensure your wealth continues to grow as your career does.

1. Create a personal finance statement

Your personal finance statement is a big-picture overview of your net worth. In it, you should include your assets, such as how much money is in your bank/retirement account(s), real estate you own, the cash value of your life insurance policies and any other assets you own.

You'll also have a section for liabilities. These include outstanding debt obligations you have, like credit cards, mortgages, taxes owed, etc. Then you add up your assets and subtract your liabilities to calculate your net worth.

But I would add another critical section: Goals.

Goals give your finances direction and a purpose. Write down three financial goals you would like to attain. Make one a short-term goal for the next year, such as building an emergency fund.

Also, set a mid-range goal you want to achieve in the next two to five years, such as buying a bigger home or paying off debt. Lastly, set a long-range goal for retirement, such as achieving Work Optional status.

This is where you build a portfolio that generates enough passive income to cover 75% to 80% of your essential living expenses, giving you the freedom to choose your work based on what you love rather than what your financial needs dictate.

If you need help in tailoring a strategy to achieve this in the next 10-15 years, or want a fresh perspective, use this Bankrate tool to find a reputable advisor:

2. Automate your retirement savings

The next step is to pay yourself first when you receive your paycheck. If your company offers a 401(k) with a company match, take advantage of this for several reasons. One, it's free money. Two, if you stay long enough to gain 100% vesting, you can take that money with you when you leave your company.

And three, you can earn tax credits for your contributions through the Saver's Credit. The Saver's Credit allows you to earn a credit of 10%, 20% or 50% of up to $2,000 of your contributions ($4,000 for joint filers), depending on your total income. Those earning less are entitled to higher tax breaks.

Meanwhile, if your company doesn't offer a 401(k) match, consider going with a broker. A broker can help you make sense of your finances, suggesting attainable goals and investment vehicles to reach them. One of our readers' perennial favorites is Fidelity, which offers low fees, responsive customer service, easy-to-use research tools and high satisfaction scores.

Along with building wealth for the future, you should also save money to cover you if an immediate need arises.

3. Save with intention

The other way to pay yourself first is to open a high-yield savings account. I recommend them because they're among the few savings accounts with returns higher than inflation. Plus, many come with no monthly fees and low or no minimum balance requirements.

It's also a smart way to build an emergency fund since cash is easily accessible. Aim to save at least six months of essential expenses, and closer to a year if you work in a specialized field or are self-employed, since it might take longer to find employment if a job loss occurs.

Automate your savings by setting up automatic transfers from your checking account to your savings account on payday. I recommend keeping this savings account separate from your regular account to help prevent impulse purchases.

Use this Bankrate tool to find and compare savings options fast:

Along with building healthy savings behaviors, you'll want to help your future self by tackling debt now.

4. Leverage debt strategically and pay down bad debt

There's good debt and bad debt. An example of good debt is taking out a mortgage on a home. We did this and have already seen sizable gains in our home's value in the short time we have had it.

Meanwhile, there are plenty of examples of bad debt. Carrying balances on high-interest credit cards or having a car loan where your vehicle's value is far less than what you owe are examples.

If you're carrying bad debt, the key is paying this off as quickly as you can without sacrificing your savings and retirement goals. There are two strategies you can use here:

The Avalanche Method: This is where you tackle your debts with the highest interest first. I favor this approach because it allows you to tackle debt that's causing more budget restrictions while still making minimum payments on your other obligations.

The Debt Snowball Method: With this method, you pay off the smallest balance first while making minimum payments on other debts. The goal here is to build momentum to tackle higher balances once you pay off the first one.

Beyond choosing a repayment strategy, there are other ways to manage debt wisely and reduce borrowing costs over time:

• Paying an extra $100 in principal on your mortgage can reduce payoff time by as much as five years
• Don't buy a brand-new car unless you can afford to pay it off in four years; instead, look for certified pre-owned, where you gain many of the benefits of a new car without the higher price
• Treat extra debt payments like a fixed monthly bill to accelerate repayment.

5. The automation paradox: Why human oversight matters

Automating your finances can help you stay on track with savings, investing and debt repayment, but automation shouldn't replace regular check-ins with your money. Budgeting tools such as Monarch Money, Simplifi by Quicken and YNAB (You Need a Budget) can make it easier to track progress and monitor spending, but it's still important to review your finances regularly.

Consider scheduling a quarterly money check-in with a spouse, partner, parent or another trusted person who supports your financial goals. Use the conversation to discuss progress, celebrate wins, identify challenges and make adjustments as needed.

Ultimately, your 40s can be a defining decade for your financial future. The habits and decisions you make now may have a lasting impact on your ability to build wealth, reach retirement goals and create greater financial flexibility. By shifting from a reactive approach to a proactive one, you can put yourself in a stronger position for the years ahead.

Related content

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Summer often brings higher discretionary spending. A weekend trip to the beach, extra outings with friends or that must-have ice cream machine can quickly eat into your budget. But summer can also be an ideal time to build savings without making major lifestyle changes.

Because the holiday season is still months away, even small weekly contributions can add up over time. Whether you're building a holiday fund, boosting your emergency savings or paying down debt, setting aside a little money each week can make a difference.

The goal of a summer savings challenge isn't to eliminate fun. It's about being intentional with a portion of your spending while still enjoying the season. Building your savings doesn't have to be complicated. Follow these five steps to make the most of the summer months and put yourself in a stronger financial position by fall.

Step 1: Choose a savings goal

Before you start saving, decide what success looks like. Giving every dollar a job can help you stay committed when summer spending temptations arise. Here are several ways you could use the money you save:

• Holiday spending fund: Use the summer to save up for your holiday spending. Knowing you have funds available can make it easier to buy holiday gifts or plan special celebrations.
• Emergency savings: Experts recommend having at least three months of living expenses in savings, though given the uncertain economy, having six months of expenses saved up may give you greater peace of mind.
• Credit card debt payoff: Consider using your summer savings to pay off some or all of your credit card debt. Once you’ve paid off that debt, you can continue to save the money that was going to your monthly credit card payments.
• Back-to-school expenses: If you have kids who will be heading to school or college in the fall, saving throughout the summer can make it easier to stock up on essential supplies.
• Travel fund: Consider adding your savings to your travel fund. You might use that money for family vacations, or save up for that once-in-a-lifetime trip that you’ve always wanted to take.

Once you've chosen a savings goal, make sure your money is working as hard as you are. Parking your funds in a high-yield savings account can help your balance grow faster.

Use the tool below, powered by Bankrate, to compare some of today's top savings account options.

Step 2: Pause one recurring expense

Once you've identified your savings goal, look for an easy way to free up money in your budget.

Go through your bank account or credit card statements to see where your money is going each month. Chances are you'll find at least one expense you can live without for a few months. Redirecting that money to savings can help you make steady progress toward your goal without dramatically changing your lifestyle.

You might be able to pause one of these common expenses:

• Streaming service
• Weekly takeout habit
• Convenience-store purchases
• Subscription box
• Daily coffee shop visits
• Food delivery orders
• Unused gym memberships or coaching subscriptions
• Impulse online shopping

Choose one realistic cutback that you can make temporarily while you focus on saving money.

Step 3: Redirect rewards and unexpected cash

Cutting expenses isn't the only way to save more money this summer. You can also accelerate your progress by redirecting unexpected cash and everyday perks into your savings account. Because this money isn't part of your regular budget, you may be less likely to miss it. Consider whether you'll receive any of these sources of extra cash this summer:

• Cashback rewards: It's easy to treat cash-back rewards like free spending money. If you're carrying credit card debt, consider applying those rewards directly to your balance to reduce interest charges. Otherwise, transfer the rewards to your savings account and put them toward your summer savings goal.
• Credit card statement credits: Statement credits can lower your monthly bill and free up cash in your budget. Rather than spending those savings elsewhere, transfer the equivalent amount into a high-yield savings account. If a credit creates a negative balance, your card issuer may allow you to request a refund check.
• Cell phone perks and discounts: Many wireless plans include free streaming subscriptions, discounted services or other perks. If you're no longer paying for those benefits out of pocket, move the money you would have spent into savings instead.
• Rebates and loyalty rewards: Whether it's a manufacturer rebate, store reward or loyalty-program payout, treat these bonuses as found money and deposit them directly into your savings account.
• Tax refunds or side-hustle income: Consider earmarking all or part of a tax refund, freelance income or earnings from a side gig for your savings goal. Since this money isn't part of your regular paycheck, it can be easier to save without affecting your day-to-day budget.

Direct those perks and windfalls into the account you're using for the summer savings challenge. Because the money never sits in your checking account, you'll be less tempted to spend it. Over time, those extra dollars can add up faster than you might expect, and watching your balance grow can help keep you motivated.

Step 4: Automate your savings through Labor Day

Set a savings goal and decide how much you can realistically set aside from each paycheck throughout the summer. Then, schedule automatic transfers from your checking account to the account you're using for the challenge. Setting those transfers to continue through Labor Day can help keep your savings on track.

Consider giving the account a name that reflects your goal, such as "Holiday Fund," "Emergency Fund" or "Vacation Fund." Seeing that name each time you check your balance can serve as a reminder of what you're working toward and help keep you motivated.

Automating your savings removes the need to make a decision every payday. Instead of relying on willpower, you'll build saving into your routine, making it easier to stay consistent and reach your goal.

*Based on saving consistently from mid-summer through Thanksgiving.

Step 5: Track your progress and stay motivated

Staying motivated is often easier when you can see your progress. Consider using a budgeting app such as Monarch, Quicken Simplifi or YNAB to track your savings goal throughout the summer. If you prefer a low-tech approach, create a simple chart or tracker on paper and update it each week.

If you're saving toward a shared goal, such as a vacation, holiday spending fund or emergency fund, check in regularly with your spouse or partner about your progress. Seeing your balance grow can reinforce positive habits and make it easier to stay committed to the challenge.

Remember, the goal isn't to eliminate summer fun. It's to be more intentional with your spending while consistently setting money aside for a larger financial goal. By Labor Day, those small weekly contributions could leave you with hundreds — or even thousands — of extra dollars heading into the fall.

A summer savings challenge doesn't require a complete budget overhaul. Instead, focus on consistently setting aside even a small amount of money each week. Over time, those contributions can help reduce financial stress and put you in a stronger position heading into the fall and holiday season.

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We may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our site but our editorial selection of products is made independently. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. We calculate a typical annual reward for each card, assuming $36,000 spent annually and less any annual fee. Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a card, check its current terms and conditions with the issuer.

There are lots I love about my American Express® Gold Card. It earns points at restaurants worldwide and U.S. supermarkets, which is a bulk of my spending, and those points can valuably be used to book flights and hotel stays.

But there's one less obvious feature that I really enjoy about it: The "Offers." Yes, the Gold Card has annual perks you can enroll in, like the up to $100 Resy Credit, but the Offers are additional, limited-time deals that change regularly. As an example, there's currently an Offer where if you spend $200 or more at Sunglass Hut with your Amex card by July 31, you'll earn a $30 statement credit.

There is a little bit of a catch: Because the Offers change regularly, you have to remember to check and "add" the Offers in order to benefit from them. But if you make it a habit to scroll the Offers instead of, say, doomscrolling, you're in for a treat.

I'm talking primarily about American Express here because it's the card I use the most, but other major card brands, including Kiplinger readers' favorite travel rewards cards, also have their own Offers. Chase has Offers, as does Capital One.

How to use Amex Offers

Using the Offers is easy as long as you know and remember they exist.

If you log in to your American Express account on a computer, scroll down until you see "Amex Offers & Benefits." You'll then see the list of "Available" Offers. The first few are usually Amex-related offers, like ones to upgrade your card or refer someone. But click "View All" to see the spending-related offers.

If you log into your American Express account on the phone app, you can find the tab for "Offers" at the bottom of the screen. Simply click there and scroll to see what's available.

For Chase cards, you can log in to the app and click on your card. Then, scroll all the way down until you see "Chase Offers." On a computer, log in and click on your card, and you'll see "Chase Offers" closer to the top of the screen.

Now that you see the Offers, if one appeals to you, click the "+" button to "add it to your card." Once you've done that, you're enrolled in the deal until it expires.

So, let's say you added that Sunglass Hut offer to your Amex card, and you spend $205 at the store in June, using your Amex card. Afterwards, you'll usually get an email saying you just used an Offer, and if it meets the terms, the Offer will be redeemed. Provided it qualifies, you'll typically see the $30 statement credit appear within a few days.

What types of Offers are there?

Offers have a fairly wide variety. Some of them are for straightforward retail shopping, and I've seen it range from mid-range athleisure stores to more high-end designer stores. Some are for chain restaurants and drink shops. There are also many Offers related to certain hotel brands and resorts.

There are Offers for different types of subscriptions, including streaming deals and travel-related memberships (it's typically a good idea to check if they have something for Clear before you renew).

There are also Offers that are geographically or event-specific. For example, on Amex, I currently see an Offer for spending at the (golf) U.S. Open, and I've used one before at the (tennis) U.S. Open.

Additionally, while many Offers provide statement credits, others award bonus points instead, which is also pretty useful.

My Offers strategy

As I'm an editor at a personal finance publication, it may come as no surprise that I check my card app frequently. Because of that, I end up checking out the Offers at least once a week.

There's no limit to how many Offers you can add to your card, so I add any that feel like I could use. Maybe I'm not planning to shop at a paint shop in the next month, but I also know as a new homeowner, surprises happen, so I'll enroll in that Offer just in case. That mindset means that I don't have to remember the Offer to make use of it — because I'm already enrolled, when I'm panic-buying paint, I'll trigger the Offer.

This changes based on what's going on in your life. When I was living in a rental apartment, for example, I wouldn't bother adding the paint shop Offer, because there's simply no chance I'd shop there. But when I was planning my wedding, I enrolled in any and every dress and shoe store Offer — which was how I ended up earning $80 back in statement credits on my after-party dress, without even remembering the Offer.

The other part of my strategy is that I don't change how I shop based on what Offer is available. For example, just because there is an Offer for shopping at Ferragamo doesn't mean I'm going to decide now to get a new pair of shoes, even if it's tempting. I apply the same psychology to shopping in general: Just because there's a sale doesn't mean I now have to shop.

But there is one way I change my behavior based on Offers. Because I have both an Amex and Chase card, if one has an Offer the other doesn't for a store I'm shopping at, I'll use the appropriate card for it.

Amex tracks how much you saved with Offers, so I can tell you that in my five or so years with this card, I've earned $1,208 in statement credit and an additional 45,000 points, all from Offers. The Gold Card annual fee is $325 (see rates and fees), so I've effectively earned back that fee more than three times over.

Not bad for a couple of minutes of scrolling.

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Buying a used car from a private seller can be a smart way to save money. New vehicles lose value quickly, depreciating about 30% in their first two years and another 8% to 12% annually after that, according to Kelley Blue Book.

At the same time, dealership prices and fees remain elevated, making even used vehicles a significant purchase. As a result, many buyers turn to private sellers in search of a better deal.

A private-party sale can offer substantial savings, but it also comes with added risks. Unlike dealership purchases, private sales are typically sold as-is and often don't include vehicle warranties or other consumer protections. Before handing over your money, it's important to take a few key steps to protect yourself and make sure you're getting the vehicle you expect.

Understand what 'as-is' really means

Buying a car "as-is" means you're purchasing it without a warranty and accepting responsibility for any existing or future problems, whether they're known or hidden. Because private sellers can't certify vehicles or provide warranties, most private-party sales are conducted on an as-is basis.

That can leave buyers with limited legal options if something goes wrong after the purchase. In many states, lemon laws that protect consumers from defective vehicles don't apply to private sales.

For that reason, it's essential to thoroughly evaluate any vehicle before buying it from a private seller. Taking the time to inspect the car, review its history and verify its condition can help you avoid costly surprises later.

Start with the title before anything else

Before you inspect a vehicle, verify that the seller owns it. Ask to see the title and make sure the seller's name matches the name listed on the document. If it doesn't, the seller might not have the legal right to sell the vehicle.

Review the title carefully for any liens, which indicate that money is still owed on the vehicle. A lien must typically be satisfied before ownership can be transferred. You should also look for title brands such as "Salvage" or "Rebuilt," which indicate the vehicle has sustained significant damage in the past.

A rebuilt title means the vehicle was previously declared a total loss but was later repaired and returned to the road. While some rebuilt vehicles can be safe and reliable, it's important to have an experienced mechanic inspect the repairs and evaluate the vehicle's condition before you buy it. Salvage and rebuilt vehicles generally carry more risk and have lower resale values, so they should be priced below comparable vehicles with clean titles.

Run a vehicle history report

Using the vehicle’s 17-character VIN (vehicle identification number) on the driver’s side dashboard or the driver’s side door jamb, run a search using a platform such as CARFAX or AutoCheck.

Review the vehicle history report for potential issues, including its:

• Accident history
• Odometer rollbacks
• Flood damage
• Title brands
• Ownership history

Look for inconsistencies between the information on the history report and the information the seller is giving you. Those inconsistencies might be a red flag and a warning to walk away from the purchase.

Get the car inspected by a mechanic

Paying for a pre-purchase inspection can be one of the smartest investments you make when buying a used car. During the inspection, a mechanic will evaluate the vehicle's overall condition, including its electronics, engine, transmission, brakes and structural components, while looking for signs of wear, damage or poor repairs.

A professional inspection might uncover hidden problems such as fluid leaks, frame damage, rust, transmission issues or warning lights that aren't immediately obvious during a test drive. Spending a few hundred dollars on an inspection could save you thousands in unexpected repair costs by identifying major issues before you complete the purchase.

Inspect the car in daylight

Inspect the car in daylight so you can more easily spot potential problems. Look for uneven paint, mismatched panels or gaps in the body, which could indicate prior damage or poor repairs. Check the tires, too, since uneven wear patterns might point to suspension or alignment issues.

As you review the interior and exterior, watch for signs of flood damage, such as mud under the seats, a musty odor, moisture in the engine compartment or stained carpeting.

Test the vehicle's electronics and features before you buy. Turn on the heat and air conditioning, check the lights, test the backup camera and make sure the digital console works properly. Electrical repairs can be expensive, especially on newer vehicles, so take your time confirming that these features are fully functional.

Take a real test drive

Take the vehicle on a thorough test drive that includes both city streets and highway driving. Listen for unusual noises and pay attention to how the car handles at different speeds.

Test the brakes, including a firm stop when it's safe to do so, and note whether they feel responsive.

As you drive, check whether the vehicle tracks straight or pulls to one side, which could indicate alignment or suspension issues. Make sure the transmission shifts smoothly and consistently throughout the ride.

Questions every buyer should ask

Be prepared to ask the seller all the right questions:

• Why are you selling?
• How long have you owned it?
• Do you have maintenance records?
• Has it ever been in an accident?
• Are there any current mechanical problems?

Asking these questions ahead of time could help you identify potential issues and decide whether it's worth going to test drive the vehicle. When you go to see the vehicle, be prepared with a list of any additional questions you want to ask.

Red flags that should make buyers walk away

Watch out for red flags that mean you should walk away from the vehicle:

• Seller refuses an inspection: A seller who refuses an inspection might be trying to hide a known issue that could be revealed during the inspection.
• Seller pressures quick payment: A deposit should be enough to hold the vehicle while you arrange the payment for the remaining balance. Determine a payment timeline before you put down the deposit. If a seller pressures you to pay quickly, walk away.
• Price seems too low: Vehicle prices are at a premium right now. A price on a used vehicle that seems too good to be true probably is.
• Title issues or excuses: Look for a vehicle with a clean title. If a seller can’t or isn’t willing to produce the title upfront, there might be issues that you’ll want to avoid.
• Cash-only demands: Some sellers could ask for payment in cash for a lower-value vehicle. Be cautious with these arrangements, and make sure they’re conducted in a safe location. A cashier’s check is a much safer option than carrying a large amount of cash on you.

How to pay safely

When paying the seller, arrange to meet at a bank or a safe-exchange zone at a police station. Use a cashier’s check or a secure money transfer method. Be sure that you and the seller complete and sign a bill of sale, and that you each retain a copy of the document.

Before you complete the purchase, verify your state’s title requirements. In many states, the seller will need to sign and date the back of the title. Don’t complete the transaction unless you receive a signed copy of the title.

Don't let a bargain become an expensive mistake

Buying a used car from a private seller can be an effective way to save money, but those savings can disappear quickly if you overlook warning signs or skip important steps. Taking the time to verify the title, review the vehicle's history, schedule a prepurchase inspection and thoroughly test drive the car can help you avoid costly surprises.

Approach the transaction carefully, and don't let emotions or pressure influence your decision. If something doesn't seem right or the seller is unwilling to answer questions or provide documentation, be prepared to walk away. There will always be another vehicle, but recovering from a bad purchase can be much more difficult.

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Health savings accounts (HSAs) offer a rare triple tax advantage: Contributions are tax-deductible, investments grow tax-free and withdrawals for qualified medical expenses are tax-free.

Those tax benefits come with an important responsibility, though. If you take tax-free withdrawals from your HSA, you should be able to document that the money was used for qualified medical expenses.

While IRS audits involving HSAs are relatively uncommon, they do happen. And when they do, many account holders struggle to locate receipts or remember which expenses they reimbursed themselves for earlier. Creating a simple system to save and organize HSA receipts can help protect your tax benefits and make it much easier to respond if questions ever arise.

What records HSA account holders should keep

Many people don't realize that the IRS requires you to keep records supporting HSA withdrawals. The following documents can help substantiate qualified medical expenses and reimbursements.

• Itemized receipts: Receipts for qualifying medical expenses need to include details specifying the type of item or service purchased, the date, the cost and any taxes or discounts.
• Proof of payment: Keep proof of payment for each purchase, such as a credit card statement or a canceled check. To stay organized, pair the proof of payment with the corresponding itemized receipt.
• Explanation of benefits (EOB): Your insurance provider’s EOB details the services provided and the amount that insurance covers. It also outlines what you may owe and helps prove that a service qualifies for HSA reimbursement.
• Detailed notes: Take notes on who each expense was for and whether your health insurance reimbursed you for the expense.

The easiest ways to organize HSA receipts

Keeping your HSA receipts organized can make tax time easier and help you respond quickly if you're ever audited. Whether you prefer digital storage, spreadsheets or dedicated tracking tools, several methods can help you keep your records in order.

Cloud folders: Storing receipts digitally in the cloud can reduce clutter and make records easier to retrieve if you need them later. Scan receipts and organize them in folders by year, using clear file names so specific expenses are easy to find. Popular cloud storage services, including Google Drive, Microsoft OneDrive and Dropbox, can make it easy to access records from multiple devices and create backups.

Budgeting apps: Many budgeting apps can also serve as receipt-storage tools. Apps like Monarch, YNAB and Quicken allow users to attach receipts, notes and other documents to transactions. Storing receipts alongside the corresponding expense can make HSA recordkeeping easier and help ensure supporting documentation is readily available if you choose to reimburse yourself years later.

Spreadsheet tracking systems: A spreadsheet can help you track key details such as the expense type, date and amount paid. You can create your own tracker or start with a template from platforms like Canva. Tools such as Google Sheets work well if you don't have Microsoft Excel, and you can access them from multiple devices. Just remember that you'll still need a separate system for storing copies of receipts.

Apps designed for HSA management: Apps designed for HSA management can help you store receipts, track expenses and identify HSA-eligible purchases. Popular options include Reimbursable, which is available for Apple devices, and TrackHSA.

Save PDFs from providers: Many healthcare providers make receipts and statements available online. Downloading and saving PDFs directly from provider portals can help you maintain a paperless recordkeeping system.

Use HSA provider tools: Some HSA administrators offer receipt storage, expense tracking or mobile apps as part of their accounts. These built-in tools can be a convenient way to keep your records organized in one place. If you change jobs, transfer your HSA or switch providers, make sure you know how to download and retain your records so you don't lose access to important documentation.

Keep security in mind when using digital tools to store and track receipts. Look for tools that allow you to create backups, and be sure that you create a secure password and keep it safe to protect your data and privacy.

Why some people delay HSA reimbursements for years

HSAs allow you to delay reimbursement for qualified medical expenses for years, provided you keep accurate records. Some account holders intentionally pay medical expenses out of pocket and leave their HSA funds invested, giving the account more time to grow tax-free.

While this strategy can be appealing, it can also backfire. If you lose receipts or other documentation, you may not be able to prove those expenses were eligible for reimbursement years later. If you're considering delayed reimbursement, it's important to create a reliable system for storing and tracking receipts and other supporting documents.

Common HSA paperwork mistakes that can create tax problems

HSA holders sometimes make paperwork mistakes that can create tax issues, especially during an audit. If you lose receipts, you may not be able to prove or claim HSA reimbursement for that expense.

When you use your HSA, be careful about double-dipping with insurance or tax deductions. If an expense is covered by or reimbursed by insurance, you can’t claim it as an HSA reimbursement. And if an expense is reimbursed by your HSA, you can’t claim it as a medical tax deduction.

Reimbursing nonqualified expenses with your HSA is another potential issue. The IRS provides specific guidance about what qualifies as a qualified medical expense, which includes expenses medically necessary for the "diagnosis, cure, mitigation, treatment or prevention of disease." Cosmetic procedures, spa treatments, unprescribed massages and more are nonqualified expenses.

Don’t forget to document over-the-counter purchases or medical necessity letters, too. This documentation is key to proving that your expenses qualified for HSA reimbursement, so gather these documents at the time of the expense and keep them organized and safe.

A simple annual HSA cleanup checklist

At the end of each year and before tax season, take some time and clean up your HSA documentation. Doing so will help keep you organized and will make filing taxes and navigating a potential audit much easier.

The following steps can help ensure you have your HSA receipts and documents organized:

• Download annual statements
• Reconcile reimbursements
• Back up receipts digitally
• Review qualified expense lists
• Store records with tax documents

Your HSA is only as good as your records

Keeping good records can help protect your HSA tax benefits and give you peace of mind. By creating a simple system now, you'll make it easier to track expenses, document reimbursements and stay prepared if the IRS ever asks questions.

The best recordkeeping system is one you'll use consistently. Whether you prefer cloud storage, spreadsheets or an expense-tracking app, a little organization today can help safeguard your tax savings for years to come.

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The red-hot real estate market of the past few years has cooled somewhat, and buyers now have more options. That shift puts more pressure on sellers to make a strong first impression, especially if you want your home to sell quickly.

Today’s buyers are more prepared. Many are touring homes with a clear checklist in hand. In fact, Redfin notes that buyers often rely on house hunting checklists to compare features, condition and overall value. That means your home needs to check the right boxes from the start.

The good news: You don’t need a full remodel to stand out. A handful of targeted upgrades can improve your home’s appeal and help attract serious buyers.

The exterior upgrades that can help your home sell faster

Boosting your home’s curb appeal often delivers the fastest payoff because it shapes a buyer’s first impression before they even step inside. And that first look matters. According to a RE/MAX poll, 46.2% of respondents said a shabby exterior is the biggest turnoff when touring a home.

Your home’s exterior sets expectations for what buyers will find inside. If it looks clean, well-kept and inviting, buyers are more likely to feel confident about the rest of the property and move forward with a showing.

Start with simple, high-impact updates. Painting the front door is one of the easiest ways to refresh your home’s appearance. Research from Zillow shows that door color can influence both curb appeal and sale price, with black front doors selling for about $6,449 more than comparable homes, and slate blue doors attracting premiums of around $1,537.

From there, focus on overall cleanliness and maintenance. Pressure washing siding, driveways and walkways can quickly make your home look newer and better cared for. A basic landscaping refresh, such as mowing the lawn, trimming bushes and adding fresh mulch, can further elevate the look without requiring a major investment.

Most of these upgrades can be completed in a weekend, but they can have an outsized impact by attracting more buyers early in the process and helping your home stand out in a more competitive market.

Refresh walls and lighting for a quick reset

Refreshing your interior walls can quickly transform how your home feels to buyers. Clean walls in a neutral, lighter shade help rooms look brighter, larger and more move-in ready, all of which can increase appeal during showings.

A fresh coat of neutral paint is one of the most cost-effective upgrades you can make, but it delivers a strong visual impact. While you are updating walls, take the opportunity to improve your lighting as well. Swapping outdated fixtures and using brighter, warm-toned bulbs can make spaces feel more inviting and highlight your home’s best features.

Look for simple ways to maximize light throughout the home. Replacing a large piece of wall art with a mirror can reflect natural light and create the illusion of more space. Lighter, neutral curtains can also help brighten a room, especially when they are fully open during showings to let in as much natural light as possible.

These small updates work together to create a clean, airy feel that helps buyers better picture themselves living in the space.

Make small kitchen updates instead of a full remodel

You can improve your kitchen’s appeal without committing to a full remodel. In many cases, smaller updates deliver a better return. According to WM Construction, minor kitchen remodels can yield returns of about 112.9%, compared with roughly 50% for full gut renovations.

Focus on simple, visible upgrades that modernize the space. Swapping out cabinet hardware and faucets is an easy way to give your kitchen a more updated look. Painting cabinets in a neutral color can achieve a similar effect to a full replacement at a fraction of the cost.

Other affordable updates, like installing a new backsplash, can quickly refresh the overall feel of the room. Replacing outdated fixtures and choosing stainless steel, energy-efficient appliances can also make a strong impression, signaling to buyers that the kitchen is both functional and up to date.

These targeted improvements can make your kitchen feel current and well-maintained, without the time or expense of a major renovation.

Clean, declutter and fix the little things

A thorough deep clean can significantly improve your home’s appeal to potential buyers. Start by decluttering and cleaning each room from top to bottom, or consider hiring a professional if you do not have the time to handle it yourself.

Pay close attention to odors, especially those related to pets or cooking. If possible, open windows to bring in fresh air and create a cleaner, more inviting environment during showings.

While you are preparing your home, take care of small repairs that buyers are likely to notice. Fix leaky faucets, chipped paint and loose handles, and regrout bathroom tile if needed. These minor updates are inexpensive, but they signal that the home has been well maintained.

Together, a clean, clutter-free space and a handful of simple fixes can make your home feel move-in ready and help buyers focus on its best features.

Create simple outdoor living appeal

Make the most of your outdoor space to help buyers picture themselves enjoying the home. Even a simple setup can create a strong impression. Consider adding a small seating area, a fire pit or outdoor lighting to a yard or patio to define the space.

Layer in a few finishing touches to make the area feel inviting. Potted plants, outdoor pillows, candles, a rug or a light throw can add warmth and comfort without requiring a major investment.

These small updates can make outdoor areas feel like an extension of the home, which is especially appealing to buyers. A functional, welcoming outdoor space can help your home stand out and may even contribute to a faster sale.

What not to do before selling

As you make a list of your home upgrades, be sure to avoid some common mistakes:

• Over-personalized upgrades: Avoid bold design choices that may not appeal to a wide range of buyers, such as bright paint colors, unusual flooring or themed rooms. The goal is to create a space that feels neutral and inviting, not one that reflects a specific taste.
• Luxury renovations: High-end upgrades like in-ground pools, marble countertops or adding a walk-in closet can be expensive and often do not deliver a strong return. In many cases, buyers will not pay enough of a premium to offset the cost. Focus on smaller, cost-effective improvements instead.
• Letting personal taste lead: It is easy to design for your own preferences, but what appeals to you may not resonate with buyers. Features like a pink front door or a bold-colored appliance can feel like projects buyers will need to undo. Stick with simple, neutral updates that appeal to the broadest audience.

Small updates can speed up your sale — without overspending

You do not need a full overhaul or a contractor to get your home market-ready. A series of simple, low-cost improvements can make a difference, especially when they are visible to buyers during a showing.

These updates help create a space that feels clean, well-maintained and easy to move into, making it easier for buyers to picture themselves living there. That emotional connection can be what turns interest into an offer.

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Oil markets are reacting quickly to the Iran conflict, but consumers tend to feel the impact more gradually. According to the International Energy Agency, the conflict has created a significant disruption in global oil supply.

After recent remarks from President Donald Trump suggesting the disruption could extend for weeks, concerns about supply have intensified. The Strait of Hormuz — a key global shipping route for oil — has seen limited access, pushing crude prices higher and lifting costs for fuel-related goods.

Because pricing moves through multiple stages before reaching consumers, there’s often a delay before higher oil prices fully show up in your budget. That timing matters: as summer travel demand increases, those costs are likely to build rather than fade.

Why the impact hasn't fully hit your wallet yet

You may have noticed you're paying more to fill up your car or heat your home, but the full impact of rising oil prices has not reached your wallet yet.

That is because oil pricing does not move all at once. According to the American Petroleum Institute, prices flow through several stages, from crude oil to refining, then shipping and finally retail. Crude prices can change daily based on supply, demand and geopolitical events, but it takes time for those increases to filter through the system.

In other words, what you are seeing now may only be the early stages of a broader price shift.

That delay creates a small but important window to act. Knowing that higher costs tend to build over time, not hit all at once, gives you a chance to make a few strategic moves before summer demand pushes prices even higher.

Where you may see prices rise first this summer

As fuel demand rises this summer, prices are likely to follow. Seasonal shifts in travel and consumption typically push costs higher, especially for:

• Gas stations and road trips
• Airfare and travel packages
• Delivery, shipping and service fees
• Groceries and seasonal goods

You can prepare for and avoid some of the greatest impacts of these price hikes by preparing now.

1. Book summer travel before fuel costs rise further

Since airlines adjust pricing based on fuel costs, flight prices tend to rise as summer approaches. If you are planning a trip, booking early may help you avoid some of those peak increases.

When booking in advance, look for flexible fares that allow you to change or cancel your flight if needed. These options can help you avoid steep fees and often provide a credit for future travel. While flexible fares may cost more upfront, they can offer added peace of mind if your plans change.

Price tracking tools can also help you time your purchase. Platforms like Google Flights and Skyscanner make it easier to compare fares across airlines and monitor price changes, so you know when to book.

2. Compare travel options beyond flying

Before you book a flight, compare all of your travel options. Higher summer demand, combined with rising fuel costs, can put additional pressure on airfare.

Consider alternatives such as a train or road trip, and compare total costs to find the option that works best for your budget. "Instead of flying, I planned a birding trip by rail and turned the journey into part of the experience," says Carla Ayers, eCommerce and Personal Finance Editor at Kiplinger.com. "I will use rewards points for a rental car when I arrive, which helps offset costs, and I get to enjoy the scenery along the way."

Planning ahead becomes more important when prices are elevated. Map out your route and itinerary in advance, and book lodging early so you have a clear picture of your total costs. Be sure to factor in meals, snacks and other expenses, and track your spending as you go to stay on budget.

If you are driving, small efficiency adjustments can help reduce fuel costs. Removing unnecessary items from your trunk or taking off a roof rack can improve fuel efficiency and lower what you spend at the pump.

3. Plan for higher gas costs during peak driving season

Higher gas prices are inevitable during peak driving season, and they’ll impact your summer plans. As fuel prices climb, the impact extends beyond the pump. Transportation, shipping and packaging costs all tend to increase, and those changes gradually make their way into the prices you pay for everyday goods.

Because these costs filter through the system over time, the biggest increases often show up weeks later, not overnight.

Consider how frequently purchased items, such as groceries and household staples, may be affected and plan accordingly. Buying shelf-stable goods in advance or stocking up on items you regularly use can help you avoid paying higher prices later as costs continue to rise.

4. Watch for rising delivery and convenience fees

Fuel surcharges often show up indirectly through higher delivery and convenience fees. Many service-based businesses pass these costs on to customers, and they can add up quickly.

To limit the impact, look for ways to reduce how often you rely on delivery. Consolidating purchases or placing fewer, larger orders can help. You might also consider picking up food orders instead of using delivery services.

You can also offset some fuel costs at the pump by using store loyalty discounts or cash back credit cards.

5. Time large purchases before prices adjust

Furniture, appliances and other shipped goods are likely to become more expensive if oil prices continue to rise. If you are planning to make a large purchase this summer, buying sooner rather than later may help you avoid those increases.

This may also be a good time to top off your home heating oil, if your budget allows. Prices could remain elevated later in the season when many households begin preparing for fall.

Retailers often adjust prices as new inventory arrives, so purchasing seasonal items now may help you lock in lower costs. If a purchase is already on your list, timing it strategically can make a difference.

Why diesel is the signal to watch

You're probably watching gas prices at the pump, but diesel is often the more important signal. Diesel fuels trucks, rail and much of the supply chain, so changes in diesel prices tend to show up more in the cost of goods and services.

According to the American Automobile Association (AAA), the national average for regular gas is about $4.09 per gallon, while diesel has climbed to roughly $5.53. A year ago, those prices were closer to $3.26 for regular and $3.64 for diesel, highlighting how quickly fuel costs have escalated.

That gap matters. Diesel prices tend to rise faster during supply disruptions, and those increases are often passed through to consumers in the form of higher shipping, food and retail costs. In many cases, a sustained rise in diesel is an early signal that broader price increases are still working their way through the economy.

Rising oil prices and summer demand can amplify costs

Rising oil prices are already taking effect, but their full impact is often delayed. As summer drives higher demand for travel and energy, those costs are likely to build gradually rather than all at once. That means the price increases you are seeing now may only be the beginning.

Making small, early decisions can help offset those rising costs. Planning ahead, adjusting spending habits and timing key purchases can all make a difference as prices continue to move higher.

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My husband and I took the plunge last year and bought a house. After more than a dozen years of apartment living in New York City, I was excited by the prospect of having my own four walls and getting to control a thermostat.

But I'd heard enough about energy costs to factor a home's energy systems into the equation while house hunting, and my husband and I are reasonably environmentally conscious, so while we weren't actively looking for a house with solar panels, we considered it a plus that the house we liked had them.

We closed on the house at the start of summer — and immediately came to adore the solar panels as temperatures soared. Here's what I've learned so far about buying a house with solar panels on it.

1. Step 1 is to ask if they're owned or leased

The Department of Energy has a useful guide of what questions to ask if you're buying a house with solar panels. While you're in the house-hunting phase, it's key to ask if the solar panels are leased or owned outright by the sellers.

Typically, if they're leased, that means that either you'll assume the lease — and have one more bill to look out for — or the seller might agree to pay off the balance with the sale. If you're going to assume the lease, that means more steps to transfer it, typically working with the solar finance company or lease provider.

Your mortgage lender might need to review or approve the terms, since it's a long-term financial obligation tied to the home.

In my case, the solar panels were owned outright, which meant they were likely factored into the overall listing price for the house and became mine when I bought it. To me, that was a benefit as the house was within our budget, and I didn't have to do any of the legwork involved with installing or leasing solar panels.

A home with solar, on average, across the U.S. sold for 6.9% more than those without, according to a 2025 analysis of Zillow data by SolarReviews, meaning an additional $29,000 for a median-valued home.

After we closed, the seller got us in touch with her contact at the solar company, so we had a contact ready when anything comes up.

2. You need to check the roof's history

Your solar panels are only as secure as what they're sitting on. While house hunting, you should ask when the solar panels were installed — and when the roof was last repaired or replaced.

Your state might require the seller to disclose how old the roof is and if it has a transferable warranty. That will help you know if you're accidentally signing up for a big repair in your near future or not.

You should also ask for documentation on the solar system itself, including the installation certificate, warranty details and the original installer's information. Having these on hand can make it easier to address repairs or service issues later.

That paperwork matters. Roof warranties and solar panel warranties often have specific terms, and you might need proof of installation or transfer to keep them valid. Without it, you could end up paying out of pocket for repairs you assumed were covered.

Beyond that, after you buy the house, you should keep an eye on the state of the roof and make sure your gutters are properly maintained. This is true in any house, but when you've got expensive technology resting on your roof, this is extra important.

3. Enjoy your energy bills

The AC in our house is powered by the solar panels, and when we got our first ConEd bill over the summer, we were delighted to see it was about $20, which is the official base cost to be maintained on the grid.

Like many households with solar, we're still connected to the grid. It works like this: The solar panels generate electricity that the home uses first. If we need more power than the panels produce, the house then draws from the grid. If we use less power than the panels produce, we earn credits with the utility company that can be applied in future months.

So far, our electric bill has remained about $20 each month, with the exception of February, when we kicked into the grid and were charged. But by the next month, as the snow cleared, it was back down to $20.

While I know we paid more for the house because it has solar panels, these electricity bills make me feel good about that, especially since energy costs rise over time, while I paid a set amount for the house.

4. Consider changes to make more use of your panels

The major appliances in our house, like the stove, were already electric, but if they weren't, I'd consider if it would be worth the cost to replace them. I'll admit that moving from a gas stove in my last apartment to an electric stove here took some adjusting, but you can get the hang of it.

A bigger decision for us is around our heating system. Our house's sellers had recently installed a new AC system, but left the heating to oil-powered baseboards. The baseboards work great, but I can't lie: After months of $20 electric bills, getting that first oil refill bill was a tough pill to swallow, and I cringed throughout the winter. That got much worse this month as the war in the Middle East kicked oil prices even higher.

We've been looking into the option of switching our heating to a heat pump so everything is electric, but it's a bit of a gamble with a high upfront sticker price. We don't know for sure if our solar panels would generate enough power to cover the heat pump through winter, or if we'd just end up stuck with a high electric bill instead of a high oil bill, and installing a heat pump comes with a host of specifics to figure out.

One workaround people do is to install a heat pump, but keep the baseboard heaters and oil as a backup for very cold winter days. In that case, though, we'd soon have to replace our boiler, so would it be worth the cost to replace the boiler and also install a heat pump? These are the kind of unknowns that come up, and it's a decision we're still working out.

5. Do you need more add-ons?

A decision that was easier for us was around getting an electric vehicle. As used EVs are becoming less expensive and gas prices are rising, many people are considering if it's worth making the trade. If you have solar panels that already generate decent energy, this can be a fairly straightforward decision.

To power your EV, you need a charger. There are many different options for how you go about installing a charger, including whether you choose to upgrade your breaker panel and what kind of charger to get.

You should consult with an electrician (or two or three) about this. While the EV tax credit expired last fall, there is a federal EV charger tax credit that accounts for 30% of hardware and installation costs, up to $1,000. It expires June 30, so we're acting fast to get this done.

If you're shopping now, these three top-rated home EV chargers on Amazon are worth a closer look.

But let's say you want to get an EV, but you don't think you produce enough electricity for it. In that case, you might wonder if it's worth it to add more panels, if your home has the room for them. You should discuss this with your solar company.

Keep in mind, though, that adding solar panels to an existing system is not as simple as it sounds. It often involves going through the full permit process and comes with a high cost.

One other add-on to consider is a battery. The Department of Energy suggests you find out if the system has a battery when you buy the house; like a generator, "this setup can help you keep the lights on if the power goes out," the department says. "If the system has a battery, find out how old it is, who installed it, and whether it is under warranty."

If it doesn't, you might consider whether it's worth adding on. This is a pertinent decision if you live in a place with frequent power outages, such as one prone to storms with above-ground power lines. But again, adding a battery comes with high upfront costs, so you should be honest with yourself about how much the peace of mind is worth to you.

Take your time, observe and react appropriately

Every time I've asked about switching to a heat pump or adding a battery, I get the same response: Wait a year and see what happens. You won't know everything about your solar panels and what they get you at the moment you buy a house, but over time, you'll be able to see how it goes.

Solar panels' effectiveness is determined by many factors, from how hot it gets in the summer, to how many people live in the house and how they use appliances, to how snowy a winter is. Even the sellers' experience with the same house won't necessarily mimic how your experience will be.

Many people took advantage of federal and state tax credits to install solar panels. While those federal credits are now expired, the solar panels are still there, so more people are facing the idea of buying a home that comes with solar panels. There are many factors involved, but so far, I've found it a valuable decision.

I'm still learning, so if you have any tips, feel free to reach out.

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A major winter storm — named Winter Storm Fern — is forecast to sweep across much of the country this weekend, bringing a dangerous mix of heavy snow, ice and frigid temperatures from the South and Midwest into the Northeast.

Falling temperatures and storms like this can strain your vehicle’s battery, tires and fluids, potentially leading to breakdowns or costly repairs. Winter weather risks such as ice-covered roads and heavy snow also increase the chances of getting into an accident or needing to call for roadside assistance.

That’s why preparing your car for a winter storm can help reduce these risks, save you money and spare you needless headaches when harsh conditions arrive.

Do a winter maintenance check before the storm hits

Before the storm arrives this weekend, make sure your car is ready for cold temperatures and hazardous road conditions. Start by checking your battery to confirm it’s holding an adequate charge.

Many auto parts stores will test your battery for free in just a few minutes, and some will even come out to your car to do it. You can also look for warning signs at home, such as slow engine cranking, dim headlights or dashboard warning lights, which can indicate a failing battery. If the battery is weak or nearing the end of its life, replacing it now can help prevent a no-start situation when temperatures drop.

This is also a good time to check your vehicle’s fluids, including antifreeze, which protects your engine from freezing in very cold weather. Low or dirty fluids can increase the risk of overheating or mechanical problems during long or slow winter drives. Make sure you’re using a winter-grade windshield washer fluid as well, since summer blends can freeze and leave you without visibility when you need it most.

Check your tire pressure before the storm hits, since cold weather can cause pressure to drop and make it harder to control your vehicle on slick roads. Keeping your tires properly inflated can improve handling and reduce your risk of getting stuck. It’s also helpful to carry sand or cat litter in your trunk to provide traction if your tires are stuck in ice or snow. We’ll cover other must-have items for a winter emergency kit later in this story.

Need a new quote for car insurance? Use the tool below, powered by Bankrate, to explore and compare some of today's top car insurance offers:

Build a winter emergency car kit

Preparing your car for winter can help decrease the chance of an accident or breakdown, but if you do end up caught on the side of the road, having a winter emergency car kit can help keep you safe. Build a kit that includes essential items like :

• Ice scraper
• Snow brush
• Small shovel
• Jumper cables or car starter
• Roadside flares or reflective safety triangles
• Warm blankets
• Flashlight
• Snacks and water

Bonus tools, including sand or kitty litter for traction, a tow rope and an extra phone charger may also come in handy during emergencies.

Keep your gas tank at least half full throughout winter. Doing so can help prevent your fuel line from freezing and gives you a buffer if you’re stuck in traffic, forced to detour or need to keep the engine running to stay warm.

Simple daily habits that avoid costly problems

Some simple daily habits can increase your safety on the road during the winter, too:

• Completely clear your vehicle: Take the time to clear all snow and ice from your car before driving. Doing so can help you avoid fines and can improve your visibility.
• Slow down: Drive slowly when the roads are snowy or icy. Increase your following distance in winter conditions to reduce your risk of getting into a car accident.
• Check the forecast: Regularly check weather forecasts before you travel. Stay flexible and be willing to adjust your travel plans to avoid driving in severe storms.

How winter prep can save you money and keep you safe

Winter breakdowns and towing fees can get expensive quickly. According to CarParts.com, towing services average about $129 per trip, but costs can range from roughly $85 to more than $450 depending on your vehicle, location and how far you need to be towed. Add in emergency repairs, missed work or hotel stays during major storms, and the financial impact can climb even higher.

Accidents are even more costly. A single winter crash can lead to thousands of dollars in vehicle repairs — or a total loss — not to mention potential medical bills and higher insurance deductibles. Taking steps to prepare your car before a storm reduces the chances you’ll face those kinds of unexpected expenses.

Preventive maintenance can also pay off over the long term. Keeping your vehicle in good working order helps extend its lifespan and may reduce how often you need to file insurance claims. Since claims can lead to higher premiums at renewal, avoiding even one winter-related incident could save you money well beyond this season.

Just as important, preparing your car for winter provides peace of mind. Knowing your vehicle is ready for harsh conditions can help you avoid stressful roadside situations and keep you and your passengers safer when travel becomes unavoidable.

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Home renovations can be stressful, especially when communication is unclear or plans change midproject. Hiring the right contractor can make the difference between a smooth renovation and a costly, frustrating experience.

Because contractors oversee everything from scheduling and budgets to permits and building codes, it’s essential to choose someone who is skilled, knowledgeable and reputable.

Asking the right questions before you hire can help you compare candidates, set clear expectations and protect both your home and your budget, so you can feel more confident as the project begins.

Start with basics: Licensing, insurance and credentials

When you look for a contractor, it's important to begin with questions that establish whether they’re properly qualified for the work you need.

These basics can help you quickly narrow your list and avoid hiring someone who isn't legally or professionally prepared to handle your renovation. They also protect you from potential liability if something goes wrong.

• Are you licensed for this type of project? Ask which licenses the contractor holds, and confirm that they meet your state's licensing requirements for the specific type of work your project involves.
• Do you have liability insurance and workers' compensation coverage? Without proper insurance, you could be held financially responsible for injuries or property damage that happens on your project. It's important to hire a contractor who is fully insured.
• Are you bonded? A bonded contractor carries a surety bond, which is a financial guarantee that certain losses will be covered if the contractor fails to complete the job or meet legal obligations, such as pulling permits.
  

Background and experience

Ask about the contractor's background and experience to ensure they're prepared for the specific type and scope of your home renovation.

Not every contractor specializes in the same kind of work, and experience with projects such as yours can make a big difference in how smoothly things go.

• How long have you been in business? Ask about the contractor's experience, and be sure to also ask how many projects they’ve completed.
• Have you done projects like mine? Get specific and find out how many similar projects the contractor has completed. Look for a contractor who has experience with the same type of renovations, whether you’re updating your kitchen or are putting on an addition.
• Can you provide recent references? Ask the contractor to provide several recent references, then take the time to contact those references. Ask them not only about the type and quality of work performed, but about their entire experience working with the contractor and if they would choose to hire them again.

It's also a good idea to check online reviews and referrals for a comprehensive understanding of what people are saying about the contractor.

Along with online reviews and referrals, verify the contractor's license and insurance with your state or the issuing insurer to confirm their credentials are current.

Scope, permits and process

Asking detailed questions about the project's scope helps set realistic expectations and avoid surprises that can delay the project or increase costs. Rules around permits and inspections, in particular, can play a major role in how smoothly — or slowly — a renovation moves forward.

• Will you handle permits and inspections? If your project requires permits, a contractor who will handle that process can help ensure the job runs smoothly, plus it means you don’t have to worry about the permitting process.
• What is your process from start to finish? Get details on how the contractor works, including how they'll manage each element of the project.
• Do you manage design, materials and subcontractors? Getting specific about these details now can help you better understand what the contractor will handle and what might be left up to you to manage.
• What is included — and what’s excluded? Ask the contractor to clearly identify what they do and what they don't do during a project. Identifying any gaps now can help you plan.

Timeline, schedule and disruption

Renovation schedules can be notoriously difficult to manage, so ask plenty of details about the project’s timeline.

• When can you start work? Highly sought-after contractors often have multiple projects scheduled, which can delay their start date. Confirm that their availability works with your timeline.
• How long will it take? Ask for an estimated renovation duration, but remember that the timeline might change, and delays often occur.
• What’s the daily schedule onsite? Understanding the daily work schedule can help you plan your own schedule, or even determine if you need to move out of your home during the renovation.
• How will you protect my home and property during construction? Get details on specifics such as how the contractor will protect your floors or keep dust out of the rest of your home during the project.

Budget, bids and payment terms

Ask detailed questions about project costs and payment terms so you can stay in control of your renovation budget. Be sure to get written, itemized estimates from multiple contractors so you can compare pricing, scope and what's included before you commit.

• Is the bid a fixed price or estimate? A fixed price bid gives you a definite, predictable price, while an estimate could change significantly. Be sure you understand which price the contractor is providing.
• What’s the payment schedule? Contractors will often require an initial deposit, then you'll make additional payments when certain project milestones are achieved. This schedule needs to be clearly identified before you sign your contract.
• How are change orders handled? Changes can and do arise midrenovation. Get details on how the contractor handles such situations.

Communication and decision making

Good communication can prevent small issues from turning into bigger problems and helps you stay informed throughout the renovation. Ask contractors how they communicate and make decisions so expectations are clear from the start.

• What’s your preferred contact method? Some contractors prefer phone, while others will text or email. Clarify what the contractor prefers ahead of time.
• Who is my point person? The contractor should be able to give you a single point person with whom to communicate, which can help avoid miscommunication and confusion.
• How often should I expect updates? Some contractors communicate more often than others. Clarifying update frequency will help give you an idea of what to expect and whether the contractor’s communication frequency aligns with your expectations.  
• What happens if issues arise or timelines slip? Find out how a contractor has handled these issues in the past to make sure they're prepared to handle them if they arise during your project.

Watch for red flags

As you speak with contractors, pay attention not just to their answers, but to how they communicate and conduct themselves. Certain behaviors can signal potential problems down the road, so watch for these red flags:

Large upfront cash requests or pressure to sign quickly. Upfront deposits are typically 10% to 30% of the renovation's total cost. If a contractor is pressuring you for a much larger deposit or wants you to sign a contract very quickly, look for another contractor.

Refusal to put details in writing. Contractors should be willing to put all these details in writing, since it protects both you and the contractor. Only work with a contractor who provides a full, detailed contract.

Inconsistent or vague answers. If a contractor doesn't provide satisfactory and consistent answers to your questions, you won’t be able to fully trust them with your project.

Lack of references. An experienced, skilled contractor should be able to provide you with plenty of references. If they can't, look for a different contractor.

After the hire: Contracts and documentation

Once you decide to hire a contractor, they should provide you with a detailed contract, including the renovation's scope, timeline, warranty, payment terms and a dispute process. Read and understand the contract before you sign it, then keep a copy of the document that you and the contractor signed in a safe place.

Keep a file of permits, receipts, change orders and correspondence with the contractor throughout the duration of the project. Hopefully, you won’t encounter any issues during your renovation, but if you do, these documents can help you navigate them.

Planning a major home upgrade? Tapping your home's equity through a HELOC or home equity loan can provide flexible funding for renovation costs. Rates and terms vary by lender, so it's worth comparing offers before you choose.

Use the tool below, powered by Bankrate, to explore and compare some of today's top offers:

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These days, most credit card issuers don't allow people to own a card account jointly, even with a spouse. So if you want to share your account with a family member, adding them as an authorized user is usually the way to do it.

An authorized user receives their own card that's linked to your account, and they can use it to make purchases and access the card's perks. But as the primary cardholder, you are on the hook for paying the bills.

Before you add someone to your card, it's worth weighing the benefits, potential risks and a few practical rules that can help prevent surprises.

Benefits of adding an authorized user

Adding your spouse or child as an authorized user can have numerous benefits, as long as they manage their card responsibly. With a rewards credit card account, you can rack up extra cash back, points or miles if more than one person makes purchases with it.

Plus, keeping track of your family's spending may be easier. And especially for a teen or young adult, being an authorized user is a solid avenue to building a positive credit history.

Important details to check before adding an authorized user

When you add a user to your account, you'll need to provide your card issuer with identifying information such as their Social Security number and date of birth, but they won't have to share their income or undergo a credit check.

Usually, anyone — even if they're not a family member — can become an authorized user as long as they meet any age requirements; with some issuers, authorized users must meet an age minimum, ranging from 13 to 18.

Although you can add a user for free on many cards, you should ask about fees, especially with a premium card, says credit expert Gerri Detweiler. With the Chase Sapphire Reserve card, for example, the standard annual fee is $795, and you must pay an extra $195 per year for each authorized user.

Also, find out whether the user has access to all of the card's benefits, such as statement credits for certain purchases, or a limited selection.

Check whether your card issuer reports authorized-user accounts to the major credit-reporting companies (Equifax, Experian and TransUnion); most do. Both you and the user benefit from account activity that contributes to a positive credit history, including on-time bill payments.

But any detrimental moves affect both of you, too. If, for example, your card balance rises higher than its typical level when the user starts spending on the card, your account's utilization ratio (the percentage of available credit you use) may increase, too — and that can hurt your credit score. Generally, the lower your credit-utilization ratio, the better.

Detweiler recommends that you ask your issuer for a higher credit limit if you think the authorized user's spending could raise your credit-utilization ratio. But you'll need to make arrangements with the user to ensure that their spending stays within the bounds of your budget.

If they rack up a high balance and you fall behind on your credit card payments, both of your credit scores could suffer serious damage. And even if you pay the bills on time, you'll owe interest on the remaining amount if you don't pay the balance in full each month.

Managing your authorized user account

You may want to set clear spending limits upfront or review statements together each month so there are no surprises. To keep track of the user's account activity, sign up to get alerts from your card issuer of new transactions or changes in your card's balance.

Depending on your relationship with the user, you may want to set up a plan for them to pay you for their charges each month; this could work well with, say, an adult child.

If the arrangement stops working or creates financial strain, you can usually remove an authorized user quickly through your card issuer's app or customer service line. With the right guardrails in place, sharing a card can be a useful financial tool rather than a source of stress.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Once the holiday glow wears off, winter can feel long. The calendar fills up again, daylight disappears too early and the next “real” vacation feels far off.

You may not need a full week away to reset, though. Sometimes, a small break is enough to lift your mood and give you something to look forward to.

That’s where microvacations come in. These short, intentional getaways, often just a long weekend, can provide many of the same mental and emotional benefits as longer trips, without the cost or planning stress. And right in the middle of winter, that can make a noticeable difference.

What exactly is a microvacation?

A microvacation usually lasts one to four days. It doesn’t require long flights, complicated itineraries or a big chunk of time off work. Instead, it’s about stepping away from your normal routine, even briefly.

That might mean driving a few hours to a nearby town, booking a one-night stay at a hotel close to home or spending a long weekend focused on rest and enjoyment. The point isn’t how far you go. It’s the mental shift that comes from doing something different on purpose.

Why short getaways actually help

Medical experts say that even short breaks from daily stress can be good for your health. According to the Cleveland Clinic, time away from work and routine stressors can help lower cortisol levels, improve mood and sharpen focus.

Other health experts, including those at the Mayo Clinic, note that stepping out of your usual environment (even briefly) can help reset your brain. Getting outside, changing scenery or simply slowing down gives your mind a break from constant stimulation.

You don’t need a plane ticket to experience this. A well-planned long weekend can still help you come back feeling clearer and more refreshed.

Choosing your motivation style

One of the best parts of microvacations is how flexible they are. You can shape them around what you actually need right now: rest, connection, fun or simply a change of scenery.

A weekend road trip is often the easiest option, especially if you live near small towns, scenic areas or beaches. A nearby city stay can be perfect if you’re craving good food, museums or live entertainment without committing to long travel days.

Nature-focused getaways, like cabins, national parks or lakeside towns, can be especially refreshing if you want quiet time to unplug. Others prefer themed escapes, such as a food-and-wine weekend, a spa stay or an arts-focused trip built around galleries, shows or festivals.

Microvacations don’t always have to revolve around a destination, either. Visiting friends or relatives who live out of town can be just as restorative. A short weekend trip to see a sibling in another state for a birthday, or a long weekend spent catching up with a close friend who lives a few hours away, can provide both a mental break and a meaningful connection.

Because you’re stepping out of your normal environment and routines, the time away can still feel like a true getaway, even if you’re sleeping in a guest room instead of a hotel.

For many people, these kinds of trips are easier to plan, less expensive and emotionally rewarding. They offer a reminder that a microvacation doesn’t have to look like a postcard to do its job. It just has to give you space to reset.

Practical ways to plan without stress

Because microvacations are short, a little planning goes a long way.

Start by choosing your dates and setting a realistic budget. Having something officially scheduled, even a two-day trip, can make it feel more exciting and easier to protect on your calendar.

Pack lightly. Short trips don’t need overthinking, and traveling with less can make the experience feel calmer from the start.

When planning activities, aim for a mix of structure and flexibility. Pick one or two things you really want to do, then leave room for rest. Trying to squeeze too much into a short trip can make it feel rushed instead of restorative.

Most importantly, plan for downtime. Sleeping in, lingering over meals or taking a slow walk often ends up being the most refreshing part.

Making it feel like a real break

Microvacations work best when you actually unplug.

Before you leave, let coworkers know when you’ll be unavailable and who to contact if something urgent comes up. Turning off work email and notifications, even temporarily, can make a big difference in how relaxed you feel.

The same goes for home life. Setting expectations with family or friends helps protect the time so it doesn’t turn into “working from somewhere else.”

Budget-friendly ways to make it happen

Microvacations don’t have to be expensive.

Look for places within driving distance that you’ve never quite gotten around to visiting. Many areas have charming towns, parks or attractions that feel new without the added cost of airfare.

Traveling off-peak, such as midweek stays or slower seasons, can bring lower prices and fewer crowds. Last-minute hotel deals can also work well if your schedule is flexible.

Free or low-cost activities can round out your plans, too. Parks, walking tours, local markets, free museum days and scenic neighborhoods can provide plenty to do without stretching your budget.

Coming back without losing the benefits

How you return from a microvacation matters almost as much as the trip itself.

If you can, ease back into your routine instead of jumping straight into a packed schedule. A lighter first day back can help the calm last a little longer.

It also helps to plan the next break sooner rather than later. Knowing you have another microvacation on the horizon (even a small one) can make the rest of winter feel much more manageable.

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Refinancing replaces your current mortgage with a new loan, often to lower your interest rate, shorten your loan term or lock in a fixed rate. Some homeowners also choose a cash-out refinance, which lets you tap your home’s equity and receive a lump sum for larger expenses.

As housing markets shift and personal finances evolve, many homeowners periodically reassess whether their mortgage still fits their needs. Changes in income, home equity, debt levels or long-term plans can all create opportunities, or reasons to consider refinancing.

Still, refinancing isn’t automatically a win. Closing costs, extended loan terms and aggressive lender offers can quietly add thousands of dollars to your total cost. Before you apply, it’s important to understand the warning signs, run the numbers and make sure a refinance truly aligns with your financial goals.

Warning signs and red flags to watch for

Refinancing can be financially smart, but not every offer is created equal. Some lenders rely on confusing terms, aggressive marketing or hidden costs that can quietly increase what you’ll pay over time.

Be aware of warning signs and red flags that you might see when refinancing a mortgage:

• Too-good-to-be-true offers: If a refinance offer seems to be too good to be true, it probably is. Look out for aggressive pitches and offers designed to be irresistible, such as unbelievably low interest rates.
• No closing costs: Refinancing comes with closing costs, but some offers roll those costs into the loan amount, increasing your debt and the amount you’ll pay in interest. “No closing cost” offers should be reviewed carefully.
• Upfront fees: Most lenders won’t require you to pay any large fees upfront when refinancing a mortgage; you’ll just be responsible for closing costs at the closing. If the loan terms outline upfront fees, you may not be working with a legitimate lender.
• Excessive pressure: Refinancing a mortgage is a big decision, and you should take your time researching lenders before you decide to refinance. If a lender or broker is pressuring you to quickly decide to refinance, walk away.

Do the math: Rates, costs and break-even

Refinancing your home can help you get a lower interest rate, but you’ll also need to pay closing costs. Calculating your break-even point, which is the point at which your interest savings will cover the closing costs, can help you determine whether refinancing makes sense.

To get started, add up all of your closing costs, including lender fees, title costs and escrow services. You’ll also need to determine how much your new mortgage will save you per month; you can do that by subtracting your new monthly mortgage payment from your old monthly mortgage payment.

To calculate your break-even point, divide your total closing costs by your monthly savings. The resulting figure is the number of months that it will take before your savings will cover the closing costs and you’ll break even.

For example, if your closing costs are $6,000, and you’ll save $250 per month, it will take 24 months before you break even on your refinancing.

A common rule of thumb can help you decide when to refinance. If you have a 30-year mortgage, a 0.75% drop in interest rates will usually result in positive savings after three years, often justifying the cost of refinancing. With a 1% drop, you’ll break even in about 20 months.

Generally speaking, if interest rates have dropped by 0.5% or less, refinancing may not be worth it, since you won’t reach your break-even point in a reasonable amount of time.

When you refinance, you have the option to extend the loan term, taking a longer time to pay down your mortgage. Extending the loan term on a 30-year refinance could end up costing you more over time, since it starts amortization over again.

When you start paying on your new 30-year mortgage, your initial payments are interest-heavy, which increases your cost. Even if you have a lower interest rate, the longer mortgage term and interest could mean you’ll ultimately pay more. To avoid this scenario, consider refinancing while maintaining your loan term or even shortening your mortgage to a 15-year term if you can comfortably afford the payments.

Other financial traps you might overlook

Even if you avoid obvious red flags, refinancing can still come with less visible costs that affect your long-term finances. Understanding these potential traps can help you make a more informed decision.

Be aware of several other refinancing traps that could cost you money:

• Closing costs: Refinancing closing costs can range from 2% to 6% of your total loan amount, on average. If you have a $400,000 mortgage, your closing costs could be $8,000 to $24,000. Make sure that you understand these costs before you close on your refinance.
• New loan terms: Your new loan terms could delay your payoff or increase your mortgage’s lifetime interest. Carefully read the refinance terms and make sure you understand how they will impact your mortgage going forward.
• Mortgage insurance and equity requirements: If you refinance with less than 20% equity on a conventional loan, you’ll typically need to pay private mortgage insurance until you rebuild sufficient equity, which increases your monthly costs.

How to shop and compare refinance offers

Different lenders offer different terms and interest rates, so it’s important to shop around and compare quotes from different lenders. Request at least three quotes from different lenders and pay attention to factors like interest rates, closing costs and loan terms.

Consider getting offers from credit unions, online lenders and mortgage brokers, since they may offer lower interest rates and better overall terms than larger traditional banks and lenders.

Who should not refinance right now

Refinancing can offer benefits to some homeowners, but make sure that it makes sense for your specific situation. For example, if your refinance break-even point is in five years, but you plan to move within the next two years, refinancing doesn’t make financial sense, and you’ll pay more to refinance than you’ll save. Think about how long you plan to stay in your home to determine if you should refinance now.

You also need sufficient equity in your home to be able to refinance. According to A+ Federal Credit Union, you’ll generally need at least 20% equity in your home. Some lenders will work with you if you have less equity, but chances are you’ll need to pay private mortgage insurance until you build up 20% equity again, which adds onto the cost of refinancing and pushes your break-even point further out.

If you don’t have a strong credit score, refinancing may not make sense, either. Lenders often consider borrowers with poor credit scores as being higher risk, so they charge a higher interest rate to make up for that risk. If you’re refinancing to take advantage of a lower interest rate, you may not qualify for that interest rate, especially if your credit score has dropped since you initially bought your home.

Practical next steps before you apply

Before you apply to refinance a mortgage, do some calculations to determine if it makes financial sense. The Navy Federal Credit Union’s mortgage refinance calculator makes it easy to see how much refinancing could save or cost you.

Take some time to talk with a trusted financial adviser or mortgage professional about your goals and what you should consider when refinancing. These experts can provide advice tailored to your specific situation and can also help you spot potential financial pitfalls.

Curious about today's refinance interest rates? Use the tool below, powered by Bankrate, to explore and compare some of today's top offers:

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After you put money in a certificate of deposit, you can sit back while it collects interest over its term. Once it reaches maturity, you’ll face a decision: Renew it or withdraw the funds.

Typically, you have a grace period of about seven to 10 days after a CD hits its maturity date to decide what to do. Your bank may send you a notification a few weeks before the certificate matures.

When you open a CD, it’s also a good idea to put a reminder on your calendar of when the certificate is nearing the end of its term. With this in mind, we'll explain what happens if you miss your grace period, whether now is a smart time to renew with rate cuts and where to find the best CD and savings rates.

What happens if I miss my grace period?

If you don’t act during the grace period, most banks will automatically reinvest the funds into a CD with the same term or a similar one, and the interest rate will typically match what the bank is offering for that maturity on new CDs.

Whether you should renew depends in part on how you’d like to use the money. If you don’t need the cash now, reinvesting may make sense as part of your longer-term savings plan.

Evaluate the interest rate. "Rates on top-yielding CDs are still outpacing inflation," says Ted Rossman, senior industry analyst at Bankrate.

How Fed policy impacts savers

However, as the Federal Reserve lowers short-term rates — it made cuts of a quarter-point in September, October and December, with more reductions likely on the way — CD yields also fell.

If you have a CD coming up for renewal soon, you may want to reinvest in a high-yield certificate, whether from the same institution or a different one, to lock in the yield before rates drop further.

We’ve listed top-yielding one- and five-year CDs (check the institution’s current rates before you invest).

The best one-year CD rates

The best five-year CD rates

You can also compare rates at depositaccounts.com/cd.

If you’d rather not commit to a CD but need a place to park your cash, consider a high-yield savings account.

Best high-yield savings accounts

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Buying a house is a goal for many Americans, but achieving that goal is becoming increasingly difficult. As housing costs climb faster than paychecks, many buyers wonder how far their money will really go.

As home prices and interest rates rise, the income needed for a house has also increased. The median sale price of homes sold in the United States in March was $408,800, according to the National Association of Realtors.

Buying more house than you can afford is an expensive and stressful mistake, so it’s essential to do some calculations before you start shopping for a home. As the price for even modest homes reaches the $500,000 range, let’s look at just how much income you need to buy a $500,000 home.

What income realistically buys a $500,000 house

The income needed to buy a $500,000 home will depend on many factors, including the cost of your home insurance, the size of your down payment, your interest rate and the length of your mortgage.

The U.S. Department of Housing and Urban Development defines affordable housing as paying no more than 30% of your gross income toward your housing costs, including utilities.

Using that general rule, let’s break down a few different scenarios with the Fannie Mae mortgage calculator.

Buying a $500,000 home with 10% down:

• Home price: $500,000
• Down payment: $50,000 (10%)
• Loan amount: $450,000
• Interest rate: 6.5%
• Mortgage term: 30-year fixed
• Private mortgage insurance (PMI): $165
• Taxes and insurance: $833
• Principal and interest: $2,844
• Total monthly mortgage payment: $3,842

Let’s assume that the home’s utilities average $200 per month, meaning your total home’s monthly payments are $4,042.

In this scenario, you would need to earn $13,473.33 per month, or about $161,680 per year, to afford the home.

If you save up more money for a larger down payment, the figures change, since your loan balance decreases and you won’t need to pay for private mortgage insurance.

Buying a $500,000 home with 20% down:

• Home price: $500,000
• Down payment: $100,000 (20%)
• Loan amount: $400,000
• Interest rate: 6.5%
• Mortgage term: 30-year fixed
• PMI: $0
• Taxes and insurance: $833
• Principal and interest: $2,528
• Total monthly mortgage payment: $3,466

Once we add in $200 for utilities, your monthly payment is $3,666.

To afford this mortgage, your monthly income would need to be $12,220, or you'd need a salary of about $146,640.

Curious about today's mortgage interest rates? Explore and compare some of today's top offers with the tool below:

Why income isn't the whole story: Other factors that affect affordability

In addition to considering your income, you’ll need to weigh how other factors can affect a home’s affordability:

• Debt load: Your existing debts, including student loans, car loans and credit card payments, impact your debt-to-income ratio. If your debt-to-income ratio is high, mortgage lenders assume more risk in lending to you and will often charge you a higher interest rate because of that risk.
• Down payment and savings: Making a larger down payment often helps you qualify for a lower interest rate because you’re less likely to default on your mortgage, reducing the lender’s risk. Saving up a larger down payment will also reduce your mortgage principal, so you’ll ultimately pay less in interest.
• Local property taxes: Local property taxes vary. If you live in an area where property taxes are high, you’ll need a higher income to afford those taxes and your home.
• Homeowners insurance: Your home’s value partially affects your homeowner’s insurance rates, but other factors, such as the home’s location, your policy limits, discounts you qualify for and even your past history of filing homeowners insurance claims will all affect your rates.
• HOA fees: If your home is part of an HOA, you’ll also need to budget for monthly HOA fees, which can vary significantly.
• Maintenance: Homes require ongoing maintenance, and those costs can quickly add up. State Farm recommends setting aside 1% to 4% of your home’s value each year to cover maintenance. Using that general rule, you would need to set aside $5,000 to $20,000 each year for maintenance on a $500,000 house.
• Unexpected expenses: Owning a home comes with many unexpected expenses. Pest infestations or an emergency repair can cost thousands of dollars, so it’s important to have an emergency fund set aside to cover these costs.
• Interest rates and loan type: Even small changes to your interest rates and loan type can significantly affect your monthly payment. If you have a variable interest rate mortgage, your payments could fluctuate as the interest rate changes. A fixed interest rate mortgage provides you with more predictability, but if interest rates drop during your mortgage term, you’ll need to refinance your home to take advantage of those lower rates.  

How to get the clearest affordability picture before you buy

Before you buy a home, it’s essential to make sure you can really afford it. Start by getting pre-approved for a mortgage to make sure that you’re likely to be able to get the loan amount you’ll need.

Just because you’re pre-approved for a mortgage doesn’t mean you can necessarily afford a mortgage of that amount, though. Consider how you’ll pay for future expenses, such as repairs, homeowners' insurance increases and potential changes in your interest rate.

Think about your long-term financial goals, too. For example, if you know you’ll be helping pay for your kids’ college educations in eight or nine years, you’ll want to make sure you don’t buy a home that’s so expensive, you’re not able to save toward that financial goal.

What it takes to afford a $500,000 home

Using the 30% rule as a guide, most buyers would need an annual income from $146,640 to $161,680 to comfortably afford a $500,000 home, depending on their down payments and monthly expenses.

While these figures can serve as a helpful benchmark, your true affordability depends on your debt load, savings, interest rate and long-term financial goals. Taking time to understand the full picture can help you make a confident, sustainable homebuying decision.

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Airport lounges can offer a quiet break from the crowded terminal, giving you space to relax, enjoy a meal or squeeze in some work before your flight. They're designed to be calmer and more comfortable than the gate area, which makes them especially appealing during busy travel seasons.

Lounge access has also become more common. Many of the top travel credit cards include it as a perk, and certain tickets or elite statuses also offer entry. If you're flying this summer, you might find yourself using a lounge for the first time.

Before you step inside, it helps to know what to expect. Understanding how lounges are typically set up and how travelers use them can help you make the most of the experience and enjoy the amenities without any surprises.

Don't grab the first seat you see

Every lounge is a bit different, so when you enter, take the time to get a sense of the layout and walk the space to see the available seating. Many lounges include sections designed for different activities, like working or dining.

Choose a seat that matches your needs. If you want to relax or get some work done, seek out a quiet area or a work zone. Planning to enjoy a meal? A seat in the lounge's dining space will be the best choice.

Keep in mind that lounges can reach capacity during peak travel times. Seats aren't assigned, but entry may be paused if the lounge is full. You also can't pre-book or reserve specific chairs or couches.

Don’t treat the buffet like an all-you-can-eat smorgasbord

Many airport lounges feature a buffet complete with a selection of hot food items, saving you the expense of costly food purchases from other airport restaurants or vendors.

Though the food in the lounge is free, avoid piling your plate or taking more than you can eat, since it's inconsiderate. Additionally, don't take food to go, since most lounges prefer you enjoy the food within the space, rather than taking it with you.

Resist the temptation to overeat and, if alcohol is available, consume it in moderation. Overeating or drinking too much before a flight can leave you feeling uncomfortable on board.

It's also worth noting that airline staff, including gate agents and flight attendants, are required to identify and deny boarding to anyone who appears intoxicated, even if the drinks were consumed in the lounge. Keeping an eye on your intake helps you enjoy the amenities without putting your travel plans at risk.

Remember to clean up your space and throw away any cups, plates or other trash before you leave.

Don’t spread out or take more space than you need

Space in airport lounges is limited, so keep your belongings consolidated. Don't use extra seats as storage, which leaves them unavailable for other travelers to use. It’s also a good idea to keep your luggage out of walkways or aisles, where it can create tripping hazards.

It’s important to be particularly mindful of seat hoarding when the lounge is busy. Lounges can fill up, so remember you're sharing this space with others and keep your belongings within your space.

Avoid fully unpacking bags or spreading out more than necessary; you'll only have to repack before takeoff, and keeping things tidy makes it easier for everyone to move around comfortably.

Don't be a noisy neighbor

Be considerate of others as you use the lounge, too. Use headphones for videos or calls and avoid using speakerphone or having loud conversations.

Avoid grooming, changing clothes or other overly personal tasks while you're in the shared space. Instead, head to the bathroom for those needs. It's also good airport lounge etiquette to keep your shoes on while you're in the lounge.

If you're traveling with kids, keep a close eye on them to make sure they're not disturbing other travelers. Some lounges have a kids' play area or room; if your kids use this space, stay with them to supervise.

If the lounge doesn't have a designated space for kids, then keep your kids nearby and don't let them run through the lounge or jump on furniture.

Don't fall asleep or venture too far from your gate

Many lounges work to create a quiet, relaxing space, so they often don't make boarding announcements. You're responsible for making sure you don't miss your flight, so keep a close eye on the clock or set an alarm for when it's time to head back out to the terminal.

Avoid napping while you're in the lounge, since it can increase your chances of missing your flight. If there isn't much time left before your flight boards, avoid visiting a lounge where you might not hear important announcements.

Think ahead — know your access rules and timing

Before you arrive at the airport, confirm your lounge access rules. There are many ways to access a lounge, whether as a credit card perk, access through a business or first-class ticket or even access as a frequent flyer. Read the details and rules about lounge use, including any guest allowances and time limits on how long you can stay in the lounge.

With these travel tips, you can enjoy an airport lounge and take some of the stress out of traveling. Just remember to budget enough time to enjoy the lounge without cutting into your boarding window, ensuring you’re still on time for your flight.

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A year-end bonus can add a welcome lift to your holiday season, offering a financial boost in return for all your hard work throughout the year. For many employees, these bonuses aren’t just symbolic pats on the back. They can be meaningful additions to your income.

According to data from Northwestern Mutual, the average bonus came in at about 2.8% of total compensation. That means an employee earning $80,000 might receive roughly $2,240, while someone making $120,000 could see closer to $3,360. Whether your bonus is modest or substantial, that extra cash can make it easier to cover seasonal expenses like travel and holiday shopping.

But a bonus can do much more than help you get through December. Used wisely, it can fast-track your financial goals and still leave room for a little well-earned fun. Before you decide where that money goes, consider these four smart ways to put your year-end bonus to work.

1. Pay down your debts

Consider putting your bonus to work by paying down any debt you may have. Paying off a high-interest credit card or personal loan offers an immediate return, and getting rid of that debt can be freeing and empowering.

It’s easy for even small balances to grow into something harder to manage. According to Forbes Advisor’s credit card APR database, the average interest rate as of November is 25.32%, which is a steep cost if you carry a balance from month to month.

If you carry a balance, the high interest rates mean that less of your payments are going toward the principal balance on your card, so it takes longer to pay off your credit card debt.

Using the lump sum of your year-end bonus to pay off or pay down debt offers a guaranteed return. When you pay off debt, you’ll enjoy reduced stress and can put your money toward other priorities, rather than paying off credit card or loan interest.

2. Fortify your emergency fund

It’s also a great idea to use some of your year-end bonus to strengthen or top off your emergency fund. An emergency fund is key in helping you navigate unexpected expenses without having to take out debt and pay interest.

According to a study conducted by Empower, one in three Americans don’t have an emergency fund. Additionally, the median emergency fund for Americans is just $500, which won’t go far when you consider the cost of emergencies like medical issues, vehicle breakdowns or even job loss.

It's ideal to build up an emergency fund that covers three to six months of your living expenses. Adding your year-end bonus to your emergency savings can be a good way to quickly boost that fund, giving you greater peace of mind and security in case you face any unexpected events.

As you build up your emergency fund, consider putting those savings in a high-yield savings account. These accounts offer higher interest rates than traditional savings accounts, so your money can generate a bit of extra income for you.

Explore some of today's top savings offers with the tool below, powered by Bankrate:

3. Max out or add to your 401(k) and other retirement savings

You can also use your year-end bonus to max out or add to your retirement contributions. Investing for retirement can help give you more confidence and assurance. If you haven’t done so already, consider consulting with a financial advisor to determine the best investment strategies for your age, your personal situation and your retirement goals.

If you’re considering putting some of your bonus toward retirement, don’t wait too long. Contributing before the end of the year might have tax advantages. For example, contributing toward a 401(k) or traditional IRA is usually a pre-tax contribution, which lowers your taxable income, so you’ll pay less in taxes.

4. Have (a little) fun without guilt

You’ve worked hard for your year-end bonus, so don’t feel that you have to put all of it toward goals like paying off debt or boosting your emergency fund. You can absolutely set aside part of your bonus for some guilt-free fun spending.

You might want to designate part of your bonus as a “fun fund.” Take, say, 10% of your bonus and set it aside for enjoyable spending, whether that’s a dinner, trip or treat that aligns with your financial goals.

A little fun spending is important to a balanced approach to your overall money mindset. Financial wellness isn’t about deprivation, but is instead about strategic spending and saving. If you have put most of your bonus toward important financial priorities, be sure to reward yourself with something you enjoy.

Make your bonus work for you

A year-end bonus can do more than cover holiday expenses. When you use it with intention, it can strengthen your financial foundation, help you hit long-term goals and still leave room for something enjoyable. No matter the size of your bonus, putting it to work in smart ways now can create benefits that last well beyond the holiday season.

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Being a loyal customer is usually considered a good thing.

Many brands reward loyalty with discounts, perks or special offers that make you feel valued for sticking around. It’s a relationship built on trust and the idea that long-term customers should benefit from their commitment.

But when it comes to car insurance, that loyalty can sometimes work against you. Staying with the same insurer year after year might be costing you more. Instead of rewarding your consistency, some insurance companies quietly raise your rates over time.

This practice, often called a loyalty penalty, means you could be paying higher premiums simply because you haven’t switched providers. The increases can be subtle, building year after year until you’re overpaying without realizing it.

What's the car insurance loyalty penalty?

Some car insurance providers use price optimization, a strategy that determines the highest price you’re likely to tolerate before switching companies. Insurers use data analytics and algorithms to adjust your premium based on your behavior, including how long you’ve been a customer and whether you pay on time.

If you’ve stayed with the same insurer for years, you might notice your premiums steadily creeping up. Some increases are normal, driven by factors such as the rising cost of vehicle repairs or the growing risks posed by severe weather.

According to the U.S. Bureau of Labor Statistics (PDF), car insurance rates rose 4.7% from August 2024 to August 2025. But if your premiums are climbing faster than that, you might be paying a loyalty penalty.

Before assuming loyalty is to blame, look for other reasons your rate might have increased. Buying a newer, more expensive car will raise your premium because it costs more to repair or replace. Being at fault in an accident or getting traffic tickets can also increase your rate since your insurer sees you as a higher-risk driver.

If your rates are rising beyond what’s typical and there’s no clear explanation, it might be time to shop for a new policy.

What about car insurance loyalty discounts?

You might feel as if you’re getting a great deal because your insurer offers a loyalty discount, a percentage off your premium for staying with the company over time. These discounts usually increase after you have been a customer for a few years, typically around the three-year mark.

However, a loyalty discount doesn't always mean you're saving money. In some cases, it can hide the fact that you're paying more overall.

If your insurer has gradually raised your base rate, even a discount might not offset the higher premium and you could still be overpaying for car insurance.

How to avoid the loyalty penalty

To avoid paying a penalty, make a habit of shopping around for car insurance with other companies. Try to compare rates at least every two years.

Shopping for insurance can help you find new programs, lower rates available to new customers, even new insurance companies that have entered the market. If you have kept a clean driving record or gained more experience behind the wheel, you might also qualify for lower rates.

When comparing quotes, gather estimates from at least four or five companies. Be sure the coverage types and limits are the same so you're comparing fairly. Research the reputation of each company you're considering.

This is also a good time to call your current insurer and request a policy review. Explain that you're thinking about switching and share the rates you've been quoted. Your insurer might be willing to lower your premium or find additional discounts to encourage you to stay.

Explore and compare some of today's best car insurance offers with the tool below, powered by Bankrate:

What to know before you change car insurance

While switching car insurance might help you get a lower rate, it’s important to consider a few factors before you make the switch:

• Loss of bundling discount: If you’ve bundled your car insurance with another policy, like homeowners insurance, you’ll lose that discount when you switch your car insurance to another company. Bundle discounts can be significant, so you might want to shop around for a new insurance company that offers both policy types.
• Cancellation fees: If you’re changing car insurance providers in the middle of your policy term, your old insurance company might charge you a cancellation fee. Contact your insurance company ahead of time to ask about that fee. Depending on how much you could save on insurance, it might be worth it to cancel the insurance and pay the fee. Alternatively, you could wait until your policy comes up for renewal and change providers then to avoid the cancellation fee.
• Coverage lapse: Depending on when you schedule your new policy to begin, it’s possible to create a lapse in coverage where your old policy ends before your new policy begins. Even if that lapse is just for a day, insurance companies see it as a red flag and might raise your rates. To be safe, schedule your new policy so it starts at least a day before your old policy ends. If you’re switching insurance providers in the middle of your policy, only cancel your old insurance policy once your new policy has gone into effect.

If you suspect you’re paying a loyalty penalty, taking the time to shop around for car insurance could help you get lower car insurance rates.

Even if you’re not paying a penalty, many insurance companies offer lower introductory rates to new customers, so making a change could still pay off.

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I recently received a shock when I went to the dentist for my six-month checkup. Not because I had a mouthful of cavities or needed another root canal. (I floss!) The unpleasant surprise occurred when it came time to pay the bill. This was my first appointment since I retired and lost my employer-provided health insurance, and I was on the hook for the entire cost.

As I mentioned in an earlier column, I opted for original Medicare and a Medigap plan when I retired. I made this decision because with a Medicare Advantage plan, I would have been limited to using in-network doctors and other providers. Likewise, while many Medicare Advantage plans include dental care, the coverage is usually restricted to providers in their network.

In addition, Medicare Advantage plans often impose waiting periods of six months to two years before they pay for expensive procedures, such as crowns and dentures. Preventive care is usually covered immediately, but you'll typically face an annual cap on coverage — an average of $1,300, according to a 2021 survey by health-policy research organization KFF.

In my case, signing up for Medicare Advantage would have required me to switch to an in-network dentist to get coverage, something I'm reluctant to do because I've been a patient of the same practice for more than 20 years. I'm pretty sure I'm putting my dentist's children through college, but I still have most of my teeth, so I consider that a fair trade-off. (Due to bad youthful habits and some congenital issues, there are more bridges and canals in my mouth than there are in Venice).

Ways retirees can lower dental costs

For retirees like me, there are other ways to lower dental costs, although all of them have limitations. One option is a stand-alone dental insurance plan, which many major providers offer. Premiums range from $20 to $80 a month, depending on the services covered and annual caps.

But before you sign up for one of these plans, scrutinize the fine print. Most plans will cover only a portion of the cost of certain procedures, such as fillings and root canals, and limit annual payouts; in some cases, the cap is as low as $1,000. Some have waiting periods of 12 months or more before they'll cover some procedures.

And to use the coverage, you'll probably have to visit a dentist within the plan's network. When I plugged my zip code into the search engine for a well-known dental insurance plan, I discovered that there weren't any participating dentists within 30 miles of my home.

A discount plan is another possibility. These plans aren't insurance — they simply offer members a discount ranging from about 15% to 50%, depending on the dentist and procedure. If your dentist participates in one of these programs, or you don't mind switching to one who does, this could save you some money. I was offered access to a discount plan through my Medigap policy at no cost.

In other cases, participants may pay a membership fee. (You'll have to estimate whether your savings from the discount will surpass the fee.) For example, a dental practice in my neighborhood offers discounts of 20% to 30% for a one-time membership fee of $199.

Unfortunately, my dentist doesn't participate in one of these programs, either, so I'm planning to use money I accumulated in my health savings account to pay for my dental work. Although you can't contribute to an HSA after you enroll in Medicare, you can use the funds tax-free to pay for a variety of health-related out-of-pocket costs.

I'm also going to talk to my dentist about other ways to save money, such as spreading out X-rays and fluoride treatments. And I'll continue to floss. Now that I'm paying the entire tab, it's more important than ever.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Anyone who’s tackled a home remodel knows costs can snowball fast, and today’s prices for materials, labor and financing don’t make it any easier. While mortgage rates have cooled slightly from their 2023 peak, many homeowners are still reluctant to refinance and lose their low rates.

That has sparked a new question: How can you fund a remodel without touching your first mortgage or maxing out credit cards?

Rather than relying on a traditional loan with fixed draws and paperwork-heavy funding, a growing number of lenders now offer flexible, card-based home equity lines of credit (HELOCs) that let homeowners tap their home’s value as needed. These hybrid products work much like a credit card, offering swipe access or digital transfers but with interest rates tied to home-equity lending rather than high-rate consumer credit.

Why homeowners are looking beyond traditional HELOCs

A standard home equity line of credit (HELOC) remains one of the most common ways to fund a home remodel. It offers a revolving line of credit secured by your home’s equity, typically with variable interest rates that are lower than most personal loans or credit cards.

But traditional HELOCs can feel rigid. Lenders often require a minimum draw amount, charge setup fees or impose strict repayment schedules. That’s where Trovy and similar platforms come in.

They combine the lower-rate borrowing power of a HELOC with the convenience and accessibility of a credit card. Instead of completing multiple forms and waiting for funds to transfer to a bank account, approved borrowers receive a Trovy card linked directly to their home-equity line.

With it, homeowners can pay contractors, purchase materials or move funds online, drawing only what they need, when they need it.

How a home-equity-backed card like Trovy works

Trovy’s model is designed for homeowners with built-up equity who want to finance projects gradually. You start by applying online, providing property details and verifying income and credit. Once approved, your line of credit is secured by your home but you don’t have to borrow a lump sum right away.

Instead, Trovy issues a HELOC card that functions like a credit card. You can use it for materials, appliances, contractor invoices and other purchases related to your renovation.

Because it’s tied to your home equity, the interest rate will likely be lower than a standard credit card. Trovy lists variable APRs in the 6% to 12% range, depending on your credit profile and available equity.

Other notable features:

• No minimum draw requirement. You only pay interest on what you use.
• No annual or closing fees. Trovy eliminates several costs that can make traditional HELOCs less appealing.
• Flexible repayment. Borrowers can pay down balances at any time without penalty.
• Tax-deductible interest. When funds are used for qualified home improvements, the interest may be deductible under IRS rules.

For homeowners managing multi-phase projects, say, a kitchen update now and a bathroom overhaul six months later, this flexibility can be a game-changer.

Real-world example: A remodel paid as it happens

Imagine a homeowner planning a $75,000 kitchen remodel. Rather than taking out a lump-sum home equity loan or depleting savings, they open a $100,000 Trovy line of credit. During construction, they use the Trovy card to pay a contractor’s $20,000 deposit and later buy $15,000 worth of appliances.

Because they’ve only drawn $35,000 so far, they pay interest on that amount, not on the full $100,000 line of credit. When phase two begins months later, they can use the same line to cover additional costs. This approach keeps cash flow flexible and helps avoid paying interest on unused funds.

It’s a modern take on the HELOC, built for how most renovations actually unfold one invoice, delivery or supply run at a time.

How Trovy compares to other funding options

The main advantage of a Trovy HELOC card is control. You can access your home’s value at lower rates than credit cards, but without the commitment of a lump-sum loan.

The trade-off is that, like any HELOC, your home is collateral. Missing payments could affect your credit or, in some cases, lead to foreclosure.

When Trovy makes sense and when it doesn’t

A home-equity-backed card is best suited for homeowners who:

• Have significant equity (at least 20%) and good credit.
• Prefer incremental funding over a single lump sum.
• Want a lower-interest alternative to credit cards for big-ticket home upgrades.
• Plan to deduct interest for qualifying renovations.

It may not be ideal if you:

• Don't have good credit.
• Don’t have enough equity.
• Prefer not to secure a credit line with your home.

The future of home-equity access

For homeowners who want to remodel without refinancing or racking up high-interest debt, Trovy’s home-equity-backed card offers a middle ground. You borrow only what you need, and enjoy rates below typical credit cards.

It’s not a one-size-fits-all solution, and borrowers should compare costs and read the fine print. But as more homeowners look for flexible ways to use their built-up equity amid high renovation costs, Trovy’s model offers a modern option in home-improvement financing.

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Stock pickers typically want to own a company with a fortress balance sheet, not a flimsy one. This financial statement is worth looking at in order to decide whether to buy a new stock or keep the ones you own.

It provides a snapshot of a company's financial health at a particular point in time, typically at the end of the quarter. Tage Tracy, the author of How to Read a Financial Report, says investors who understand a balance sheet can more easily see where a company may be weaker than its management claims. And yet, says Tracy, "the balance sheet is often overlooked."

First things first. Why is it called a balance sheet? Because it lists a company's assets "balanced" against its liabilities plus its shareholders' equity — essentially, reflecting what the business has compared with how it was funded. The two sides always equal out.

There's a wealth of information to be gleaned for those who look closely. A quick peek at debt levels isn't enough. How much cash is there to offset the company's obligations? How does the debt compare with the company's earnings? How easy is it for the company to make the annual interest payments?

The answers to these questions (and more) can help you weed out the sickly from the healthy.

We'll tell you what matters most and how to find it or calculate it. We used data supplied by S&P Global Market Intelligence, but you can find corporate balance sheets and other financial statements on a number of websites, included as part of a company's earnings reports and on file at the Securities and Exchange Commission.

Balance sheet and other data here are as of August 31, except where noted.

Total debt

A company's total debt includes not only bank loans and other debt but also leases for land, buildings and equipment, as well as other obligations. Net debt takes into account how much cash and liquid, cash-like investments the company is sitting on. After all, if they wanted to, executives could just make a withdrawal and pay off a chunk of what the company owes, right?

It can make a big difference. Consider Microsoft (MSFT): It had $112 billion in total debt as of June 30, but nearly $95 billion in cash and investments. Net debt was a much more palatable $17 billion.

If a company has more cash than total debt — as Alphabet (GOOG), Nvidia (NVDA) and Apple (AAPL) do, by the tens of billions of dollars — net debt is actually a negative (and excellent) number.

Debt load or overload?

It's important to get an idea of how easy it is for a company to pay back its debt. That's where various debt-to-earnings metrics come in. (Earnings data come from the income statement, published with the balance sheet.)

Simply take the debt number — total or net — and divide it by profits for the past 12 months. The result tells you how many years of earnings it will take to pay back all the debt. "Needless to say, the higher that ratio is, the more financial risk is present in the company," Tracy says.

In many cases, analysts choose to divide by EBITDA, or earnings before interest, taxes, depreciation and amortization. They like this stripped-down number because it's a rough approximation of income generated strictly from the operations of the business. Though not an item on income statements, companies often calculate EBITDA for earnings presentations.

Caesars Entertainment (CZR), MGM Resorts International (MGM) and Wynn Resorts (WYNN) had net debt-to-EBITDA ratios that ranged from about 5.8 to 6.5 at the end of August. Another casino company, Las Vegas Sands (LVS), had a ratio just above 3, suggesting it has a more manageable debt load than its peers. The median number for all S&P 500 companies is 1.7.

Sometimes, analysts looking at industries that need to spend a lot on equipment subtract capital expenditures from profits. (Find cap-ex numbers in the cash-flow statement, published with other financial statements.) After all, money spent maintaining and building a business isn't available to pay off debt.

Railroad operator Norfolk Southern (NSC), for example, had a net-debt-to-EBITDA ratio of 2.6. But net debt was 7.1 times the amount of EBITDA minus capital expenditures.

Interest-coverage ratio

Bigger is better for another ratio that measures a company's ability to handle borrowings. Dividing EBITDA by a company's annual interest expense (found on the income statement) is known as the interest-coverage ratio.

It can also be calculated with EBIT, or earnings before interest and taxes. The ratio gives a sense of how many years' worth of interest a company can pay with just one year of profits.

Looking again at casinos, we see that Caesars Entertainment and Wynn Resorts recently had interest coverage ratios of 1.6 and 2.8 — the two smallest numbers among all consumer discretionary stocks in the S&P 500. This, together with the debt ratio numbers discussed above, suggests their balance sheets are strained.

Las Vegas Sands, which looked pretty good before, has an interest coverage ratio of 5.5 — better than its peers, but still below the 10.7 median number for all S&P 500 companies. MGM Resorts, however, can cover 10.8 years' worth of interest expense with its EBITDA, a much better situation than the debt ratio discussed above had implied.

The lesson: It pays to look through different lenses, and investors picking casino stocks or any other stock should use these numbers to dig deeper into the companies' businesses.

Debt vs equity

A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom of the balance sheet. Shareholders' equity is an approximation of stockholders' stake in the company.

The debt-to-equity ratio says a lot about how much debt a company has chosen to use. And that, in turn, tells you how vulnerable it can be if its business turns bad or the economy goes south.

For instance, Kroger (KR) has received plaudits for standing up to grocery competition from Walmart (WMT) and Costco Wholesale (COST). But Kroger has borrowed a lot to stay competitive, reporting more than $25 billion in total debt, compared with less than $9 billion in equity on its balance sheet, for a ratio of 2.8 to 1.

Costco, by contrast, had about $8 billion in total debt and $27 billion in equity, for a ratio of 0.3. And you can't even calculate a debt-to-equity ratio when you figure in Costco's $14 billion in cash, which gives it negative net debt and puts it in even better shape.

Admittedly, poring over a balance sheet to parse a company's debt this finely takes a little extra work. But in corporate finances, just as in family finances, managing debt is of paramount importance.

Says Tracy: "If you remember the Great Recession from 2007 through 2009, the businesses that did not have a strong balance sheet were more susceptible to literally going out of business."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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As 2025 winds down, you may soon be finalizing your charitable-giving plans for the year. Many causes need funding, from relief efforts following natural disasters to humanitarian aid initiatives in countries ravaged by conflict and political instability. By donating to reputable organizations, you can support them as they provide vital resources, research and programs.

But deciding which charities most deserve your dollars can be overwhelming. With so many worthy causes to consider, it pays to put some thought into which ones best align with your values and to research which organizations are likely to make the best use of your donations. Along with taking advantage of tax-savvy ways to give, such as contributing to a donor-advised fund or making qualified charitable distributions from an IRA, creating a budget and a schedule for giving throughout the year can help maximize your impact.

Below, we have guidance on setting up a solid giving strategy. And if you're looking for ideas for organizations where you can direct your donations, check out our list of some top-rated charities in a variety of categories.

Do some soul-searching

Start by narrowing down the types of causes you'd like to support, reflecting on the issues that matter to you most.

"I always suggest that people do a value exercise," says Colby Bircher, vice president of philanthropic strategies for donor-advised fund Fidelity Charitable. Consider bringing your children into the conversation, too. "If you want to engage the next generation in your philanthropy, you can all come up with collective shared values among the family to really help drive forth what's important to you and how you want to support that giving."

A few questions to consider: Which causes inspire you? Which populations or groups might you want to focus on, and where are they? What are you looking to accomplish with your support?

Once you've answered those questions, learn more about the issues that you care about and how charities can most effectively influence them. You might read research from foundations that specialize in an issue, attend events related to it or speak with experts, such as representatives from a charity that focuses on the issue.

Think about how you'd like a nonprofit to put your donations to work. You may want to help fund research — say, for treating Alzheimer's disease or ensuring clean drinking water. Or you may prefer to focus on organizations that advocate for policy change or that provide direct services, such as emergency aid following a disaster.

Another approach is to donate to efforts that tackle the root causes of a particular issue rather than the issue itself, says Theresa Schieber, vice president of advisory for Rockefeller Philanthropy Advisors. This method of focusing on "systems change" may manifest as supporting education, economic opportunity and access to jobs as a means of tackling homelessness, for example, rather than developing more shelters and housing.

"A systems-change approach allows you to use a much bigger lens with a particular challenge," says Schieber.

Set your donation budget

While year's end is the high season for giving, you may want to contemplate a strategy for your charitable donations in 2026 and beyond, too. Spreading your donations throughout the year (say, on a monthly or quarterly basis) rather than waiting until the end of the year, when your budget may be squeezed by holiday expenses, can help ensure that you meet your giving goals.

A steady flow of donations during the year can be helpful for charities, too — especially causes that have faded from the headlines but still need ongoing support, from the wildfires that swept through Los Angeles early this year to the flooding that struck Texas Hill Country over the summer.

Plus, if you take the standard deduction on your tax return, you may have good reason to shift some of the contributions you'd ordinarily make by the end of this year to 2026, thanks to changes in the One Big Beautiful Bill Act, signed into law over the summer. Starting in 2026, taxpayers who don't itemize can deduct up to $1,000 in charitable contributions, or up to $2,000 for married couples who file jointly. For the 2025 tax year, however, you don't get a deduction for charitable contributions if you don't itemize.

As you make a plan, consider setting short- and long-term goals for the amount of money you want donate and the frequency at which you'd like to give. You might plan to donate $250 per month over the next two years, for instance, and then aim to increase your monthly giving by 50%, to $375, for the two years following that. To maximize the impact of your donations, check whether your employer has a gift-matching program, which matches your donations dollar-for-dollar up to a specified limit.

Think about how you'll divvy up your donations, too. A good general guideline is the 80-20 rule, says Bircher, of Fidelity Charitable: "80% of your giving goes to an area that aligns well with your charitable mission, and 20% is reserved to giving more responsively."

In other words, you could set aside the bulk of your giving budget for your core strategy and a smaller portion for, say, donating to fundraisers that family members and friends ask you to support or providing aid after a natural disaster or when another sudden need arises.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Rewards credit cards can be a powerful way to get more value from your everyday spending. Each purchase can earn you points, miles or cash back that you can redeem for travel, statement credits, gift cards and more.

However, simply having a rewards credit card is not enough to unlock its full potential. The way you use your card and the strategy behind it determine how much value you actually receive from your rewards.

To help you get the most from your credit card, we’ve highlighted six common mistakes that could be holding back your rewards strategy and offer tips on how to avoid them.

Choosing the wrong rewards credit card

You can choose from many rewards credit cards designed for different types of customers. It’s important to carefully review the card’s rewards program to make sure you choose a card that’s right for you. If you don’t, you’ll find it difficult to earn decent rewards based on your regular spending.

As you shop around for a rewards card, carefully review how the rewards are structured and look for a program that aligns with your lifestyle. If you’re a frequent traveler who often purchases airfare and hotel stays, a travel rewards card can help you earn rewards on those travel-related purchases.

But if you rarely travel and instead use your card mostly for online shopping, groceries and gas, you’ll want to find a card that allows you to earn on those types of purchases.

Avoiding rewards credit cards with annual fees

Rewards credit cards are available with and without annual fees. It might seem logical to avoid cards with any annual fees, but in doing so you could miss out on some valuable rewards. Credit cards with annual fees often offer some of the most generous rewards programs, so you might miss out by avoiding these cards.

That said, it’s important to do some math to make sure a card with an annual fee makes sense, especially since some fees can cost $500 per year or more. Review your credit card statements for the past 12 months to see where you spend the most, then calculate what you would have earned on those purchases when using the rewards card.

If the rewards are close to or less than the fee, then the card may not be the right fit for you. But if you find that your rewards would be substantially more valuable than the annual fee, then it might make sense to apply for the card.

If you’ve had your card for a while and feel the fee is too high, you can always apply for a different card with a lower fee. Before you do, contact your current credit card provider. The provider may be willing to negotiate a lower annual fee to keep you as a customer.

Missing out on an initial bonus

Many rewards credit cards offer initial bonuses if you spend a certain amount of money within a designated period.

For example, the Chase Sapphire Preferred card offers new cardholders 75,000 bonus points if they spend $5,000 on purchases in the first three months after they’ve opened their account.

These initial bonuses can be lucrative, so as part of your credit-card rewards strategy, avoid missing out on them. Plan out your spending and read all of the fine print to make sure that you’ll qualify for the bonus.

You’ll need to understand which purchases qualify toward the bonus so you can be sure that your usual spending will help you meet the bonus spending requirement on time.

Overspending with your card

The more you spend with your card, the more you’ll maximize your credit card rewards, but overspending will cost you, too. You’ll get the most value out of a rewards credit card if you pay off your balance in full each month, avoiding paying interest on your purchases.

But if you spend so much that you can’t pay that balance down, your interest payments could outweigh the rewards you earn. In the third quarter of 2024, U.S. consumers carried an average of $6,730 in credit card debt, according to Experian.

You could also be paying steep interest on your purchases. The average APR on a new credit card was 24.19% in October, LendingTree reports. Once you begin carrying a balance from month to month, those interest charges can add up quickly, making it harder to pay off your debt in full.

While you’re at it, make sure to avoid any purchases that require a credit card purchasing fee. Credit card purchase fees are often about 3% of the total purchase, and while retailers usually cover those fees, you could be responsible for them in certain instances.

If you pay bills with a credit card, like your utility bills, the vendor may add on a processing fee, sometimes called a convenience fee. Check with the vendor to see if there are any fees associated with credit card payments before deciding to put the charge on your card.

Letting your rewards pile up too long

Watching your credit card rewards accumulate can be satisfying, but don’t leave those rewards to sit for too long. Depending on your credit card, those rewards might expire after a certain amount of time or if your account remains inactive for a certain period.

Your rewards can also lose value over time. For example, if you’re accumulating points, your credit card issuer could change the value of your points whenever they choose, and you could lose out on value. To make the most of your credit card rewards, redeem them frequently to solidify their value.

Sticking with the same rewards credit card too long

Even if you initially chose a rewards credit card that was a good fit for your lifestyle and spending habits, chances are that your lifestyle will change over time. If you’ve had the same rewards credit card for five or 10 years, it may be time for a change.

Review your rewards program and consider whether you’re getting the best value for your spending. If you’ve been making your credit card payments on time, your credit score has probably increased, so you just might qualify for a new card with a better rewards program that will help you earn more on your everyday purchases.

How to make your rewards credit card work harder for you

A well-planned credit card rewards strategy can turn your everyday spending into meaningful perks, such as free flights or extra cash back.

To get the most from your rewards, choose the right card, use it wisely, and review it regularly to make sure it still fits your lifestyle. By avoiding common mistakes like missing bonuses, letting points expire, or keeping a card that no longer works for you, you can ensure your rewards deliver real value.

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Owning a vacation home sounds nice in theory, but where you buy matters just as much as what you buy. Your location choice can shape not only your travel experience but also your financial reality.

In fact, the market you choose could determine whether purchasing a second home is even possible. Factors such as home prices, the local cost of living, and rental demand all play a major role in overall affordability.

We’ll explore where vacation homes offer the strongest returns, how costs vary by region, and what to know before you buy. So you can make an informed decision before signing that second mortgage.

Where vacation homes offer the strongest return

It’s not always easy to find desirable, affordable properties — but they do exist. The best places to buy a vacation home tend to share a few key traits:

• Home affordability
• Interest rates
• Available inventory
• Cap rate, or the annual rate of return on your investment

Right now, most of the top vacation-home markets with the strongest returns are beach towns along the coast, according to Vacasa’s Vacation Rental Report.

When evaluating these markets, it’s crucial to look beyond postcard views. Key indicators such as cap rate, available inventory and location stability can reveal whether a property is likely to generate consistent income or drain your budget.

The cap rate helps you compare how much income a property could produce relative to its price. Meanwhile, low inventory can drive up competition and home prices, while location affects everything from seasonal demand to maintenance costs.

Keeping these factors in mind can help identify where the numbers truly add up. Here are five vacation-home markets currently offering some of the strongest returns.

1. North Myrtle Beach, SC

The median home price is $360,747 — almost $300,000 less than the second spot. The gross cap rate for North Myrtle Beach is 8.10%. With an average annual rental revenue of about $27,600 per property.

Curious about today's rates? Explore and compare some of today's best mortgage offers with the tool below, powered by Bankrate:

2. Dauphin Island, AL

The median home price is $645,330, which is higher than the national average. However, with average annual rental revenue of $53,293 and a gross cap rate of 8%, buyers have a solid opportunity to recoup part of their investment through vacation rental income.

3. Okaloosa Island, FL

The median home price on the Gulf is $654,494, with average annual rental revenue exceeding $50,000 and a gross cap rate of 7.7%. The area attracts about 5 million visitors each year, most of whom stay four nights or longer — creating strong demand and more consistent income opportunities for vacation homeowners.

4. Hatteras Island, NC

The median home price in Hatteras Island, North Carolina, is $805,585 — nearly double the national median. While it’s a larger upfront investment than many other markets, the area’s average annual rental revenue of $58,862 and gross cap rate of 7.3% help balance the higher cost.

Hatteras also benefits from strong visitor loyalty, with more than half of bookings lasting seven nights or longer, providing steady rental income potential.

5. Girdwood, AK

Just 45 minutes outside of Anchorage, Girdwood, Alaska, offers a mountain-town escape surrounded by stunning alpine scenery. The median home price is $485,429, with average annual rental revenue of $34,797 and a gross cap rate of 7.2%.

Many visitors come for short getaways, with 61% of bookings lasting just two to three nights. Girdwood’s biggest draw is its dramatic, ice-capped peaks and proximity to the upscale Alyeska Resort.

High-cost markets with prestige — and premiums

While you’re paying for prestige, it often comes with a much higher upfront cost. Many of the most desirable vacation-home markets have median sale prices well above the $410,800 national median.

What you get in return, however, is a view-worthy property in a high-demand area — and the potential to have your home work for you. Because most vacation homes are located in popular tourist destinations, there’s typically steady demand for short-term rentals. If you plan to rent out your property, you can often charge a premium during peak travel seasons.

Still, it’s important to consider the broader community you’re buying into. You might fall in love with the scenery, but if the area doesn’t attract enough visitors to sustain demand, that dream vacation home could quickly turn into a costly liability.

Hidden costs that vary by location

Second homes are already more expensive than primary residences. You may be on the hook for putting down a larger down payment, paying a higher interest rate and getting fewer tax breaks compared to your first home.

But what you pay also varies by your vacation home’s location. For instance, Florida has 1 million second homes — 15% of the nation’s total. Florida relies heavily on tourism all over the state, from theme parks in the central part of the state to beaches that literally surround it.

Seasonal housing can play a part in how much you pay for your vacation home. Out of season, home prices can go down 5% to 10% compared to home sales during the season. But if you can secure a vacation home during off-peak times, you can reap the rewards of a potentially high rental income. And when it comes time to sell, you can list it during peak season.

The cost of owning a second home isn’t the same for everyone, since the availability of vacation homes is widely different across the country. Other factors that could impact home prices include:

• Easy access to amenities, like beaches, mountains and other nature-focused attractions.
• Vicinity to urban areas.
• Established infrastructure that’s proven it can carry tourism.

Not all second homes are in locations that have a strong community that supports tourism for out-of-towners, residents and vacation homeowners.

What it all means for prospective buyers

When exploring second home options, location matters in multiple settings. Rather than snatch up your dream home, crunch the numbers to figure out if you can afford it in the first place.

It’s also crucial to figure out the long-term financial impacts of your home, including how much you’ll spend on it during ownership and your return on investment. Look at the purchase price, ongoing costs, and how much you expect to earn, if anything at all. Making your home work for you can lessen your out-of-pocket expenses, but if you buy a home that isn’t in a prime location, you could lose out on even more.

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Amazon Prime Big Deals Days return on October 7 and 8, offering discounts of up to 40% on some of the retailer’s most popular products.

Prime Day, which kicks off the holiday shopping season, gives members an early chance to check items off their shopping lists and snag limited-time bargains.

Finding the best deals on the items you want and need can be a challenge with these massive shopping events, but AI tools such as Amazon Rufus and Amazon Lens can help you shop wisely during Big Deals Days.

Be careful, though — while these tools can be helpful, you’ll need to resist the urge to buy items you hadn’t planned to purchase.

Amazon Rufus

Amazon Rufus, an AI chatbot, launched in early 2024. Rufus is a free tool that’s available to all shoppers. Think of Rufus as being your personal shopping assistant. You can ask the chatbot such questions as, “What supplies do I need for a Halloween party?” or “What are the best deals on women’s sneakers?”

The more specific you get, the more refined the bot’s responses will be, and within a few seconds, Rufus can provide suggestions, including links to Amazon products that best fit your shopping needs.

During Amazon Prime Day, Rufus could help you to quickly sort through deals, rather than scrolling through pages and pages of offers. Get specific with your questions to find the best deals on the products you need.

For example, after asking “What are the lowest-priced kitchen knives on sale now?” Rufus produced a list containing ultra-budget options under $10, best value individual knives and best value knife sets.

Rufus is helpful because it provides personalized responses. According to Forbes, testing indicates that the bot’s responses vary between users, suggesting that Rufus tailors its recommendations based on each customer’s spending thresholds and shopping history. That approach means that you’re more likely to see results that are relevant and that you’re likely to purchase.

Be careful when it comes to customer feedback, though. While you can ask Rufus a question such as, “How easy is this air fryer to clean?” its responses are based on data such as product listing details and customer reviews. Trusting those responses can be risky, given Amazon’s issues with fake reviews.

If Rufus points you toward a product that sounds like a good fit, do your own research. Google the product, look at reviews across multiple sites, and watch out for reviews that seem over the top in their praise or criticism. Look at the profiles of the reviewers, too, and try to find “verified purchase” badges, which generally indicate the reviews are more trustworthy.

You can use Rufus through Amazon’s app, or you can open the chatbot on your computer by clicking on the icon in the upper left corner of the Amazon homepage.

Alexa Voice

Alexa Voice can help with your shopping, too. You can speak to our Alexa-enabled devices, adding items to your shopping list as you think of them. You can also ask Alexa about the best deals on certain items on Amazon, and the AI voice service can make purchase recommendations based on your buying habits.

Amazon has also released Alexa+, the retailer’s next-generation AI assistant. Alexa+ offers a more personalized and conversational experience, and is capable of understanding complex requests. Alexa+ also integrates with other shopping platforms, so it can help you find Christmas gifts, book tickets through Ticketmaster and plan a night out in a certain city.

Alexa+ is available on a limited basis during the Early Access period. Customers who own an Echo Show 8, 10, 15 or 21 will be the first to access Alexa+, and more Echo customers will gradually receive access. You can sign up to be notified about Early Access availability. Alexa+ will be free to Amazon Prime members, while non-Prime customers can subscribe for $19.99 per month.

Amazon Lens

If you use the Amazon Shopping app, you can access Amazon Lens, an AI-powered visual search tool. With Amazon Lens, you can take a picture of a product and upload that image or scan a barcode. Amazon Lens can then find that product on Amazon, saving you some searching time and streamlining your shopping experience.

Amazon Lens Live, released in September, instantly scans products and shows you real-time matches in a carousel, so it’s even easier to find the product you need. It also integrates with Rufus, so you can get product insights and summaries right in the app.

You can add items to your cart by tapping the heart icon. If a friend has a product you love or if you want to do some comparison shopping while you’re in a retail store, Amazon Lens Live can make that process easy.

Tips to keep your shopping focused

AI tools can help you discover products quickly, but they also make it easy to get upsold into buying things on impulse. To stay disciplined, create a shopping list ahead of time and stick to it, and set a budget to avoid overspending during Prime Big Deals Days.

Even if a deal looks great on Amazon, take the time to comparison shop. Retailers such as Walmart and Target often run competing sales during these events, and you might find the same item for less elsewhere.

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With the holiday shopping season beginning, chances are you’ll be doing at least part of your shopping on Amazon. Unfortunately, when you shop online, package theft is always a threat. According to the Office of Inspector General of the United States Postal Service, as many as 1 in 4 Americans were affected by package theft in 2023 and 2024.

Package theft increases during peak delivery season around the holidays. More packages are shipped and left unattended, which means porch pirates have more opportunities. Some thieves even follow delivery trucks, stealing packages right after they’re delivered.

As you start your holiday shopping, keep these tips in mind to prevent package theft and ensure that you receive all the items you order from Amazon.

Use Amazon Day delivery to control timing

Your packages are most vulnerable when they’re delivered when you’re not home. With Amazon Day Delivery, you can schedule eligible Amazon purchases to arrive on your preferred day of the week.

If you know you’ll be home on a certain day of the week, you can schedule your deliveries for that day so you can promptly bring them in off your porch once they arrive.

Amazon Day Delivery is free for Amazon Prime members. To set up the delivery, you’ll need to sign into your account, order your items and select the “Free Amazon Day Delivery” option. Then, you can choose the preferred day of the week when your items will be delivered.

Scheduling your deliveries for your preferred day also gives Amazon the ability to combine your orders in a single box, minimizing package waste for a more eco-friendly option.

Pick up packages from Amazon lockers

You can also choose to pick up your packages from Amazon lockers. These self-serve lockers are a secure way to keep your packages safe until you can retrieve them. You can search for an Amazon locker location near you and choose the locker when you check out.

When it’s time to pick up your package, you can either enter the six-digit pickup code and scan the barcode on the locker’s screen, or simply use your smartphone and the Amazon Shopping app to unlock it.

Use Amazon Key In-Garage Delivery

Amazon Prime members have the option to choose Key In-Garage Delivery, which lets drivers place packages directly inside your garage for added protection.

To use the service, you’ll need a compatible smart garage and must set it up in the Amazon app. At checkout, simply select In-Garage Delivery.

When the driver arrives, they’ll scan your package, which serves as a one-time access code to your garage. Amazon verifies both the package and the driver’s location before the door opens, so you never have to share access codes. To further protect customers, Amazon also runs background checks on all drivers before their first delivery.

Rely on a PO box or UPS Store box

A PO box or UPS Store box can also help prevent package theft, but these options can be costly. PO box rates can range from $21 to $115 or more per month, and they depend on your location and the box size you choose.

Even if you select the extra-large box, some very large packages may not fit inside and you’ll need to pick them up inside the post office.

UPS Store boxes work similarly to PO boxes, but you’ll need to pick up your packages during store hours. Rates vary depending on the location and the size of the box you choose.

Relying on one of these mailbox options may make sense if you work during the week and need a way to prevent porch pirates. You’ll want to consider how far you’ll need to drive to the box each day, as well as how much a box rental will cost you.

Invest in a secure porch lock box

You might also consider investing in a secure porch lock box to keep deliveries safe. These boxes come in various styles, including models with combination locks, keyed locks or smart panels. You can find package delivery boxes for under $300 at Amazon.

They’re designed so drivers can easily place packages inside, but only someone with the key, code or authorized access can retrieve them.

When choosing a lock box, think about how many packages you typically receive and the size needed to hold them. Look for one made of durable materials, like steel, and ensure it can be anchored to your porch or secured against your home. Also consider who in your household will need access and which security method — key, code or smart entry — works best for everyone.

Consider pickup points and retail partners

You can also decide to pick up your Amazon packages in store at retail partners, like CVS, Kohl’s and Whole Foods. These in-store pickup options can help keep your packages safe, but you’ll need to pick your packages up during store hours.

If you don’t pick up your package within five calendar days, Amazon will cancel and refund your order.

This in-store pickup option at a retail partner can work well if you frequently buy from the retailer and will be at the store anyway. The in-store pickup can also be a good option if you live just a few minutes from the retailer and can easily get to the store.

Find the delivery method that fits your lifestyle

There are plenty of ways to protect your packages from porch pirates, and the right solution may be a mix of several options.

Some of the most secure methods, such as picking up your packages from a locker or PO box, come with convenience tradeoffs, since you’ll have to travel to get the packages. At the same time, these different delivery methods can offer you additional peace of mind, and they can save you the hassle and financial loss of package theft.

Ultimately, you’ll need to consider factors like the occurrence of package theft in your area, the level of risk you’re comfortable with and which of these methods may be the best fit for your needs.

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Summer is peak season for vacation homes, making it an ideal time to think about how a second property can serve as both a personal retreat and an investment. Whether you already own a vacation home or are considering buying one, the right design choices can help attract renters, reduce maintenance costs and increase long-term value.

Many second-home owners eventually rent their property to offset costs, whether through short-term vacation rental platforms or long-term tenants. But decorating and outfitting a second home requires a different mindset than designing a primary residence. Choices need to appeal to guests, withstand heavy use and help protect your investment.

If you're buying a second home with rental income in mind — or looking to get more from a property you already own — the goal is making sure the home helps pay for itself. These design rules can help ensure your investment works for you, not the other way around.

1. Design a space that works for you and your guests

One of the best things about owning a second home is the freedom it gives you, you can design and use the space however you like. But if your goal is to make the property appealing to guests, whether for short-term rentals or visiting family, you’ll want to create an environment that’s both welcoming and versatile.

Start by choosing furnishings and layouts that serve multiple purposes. Look for pieces that reflect your taste while also offering broad appeal for visitors. Think comfortable, durable and timeless. Furniture that can withstand daily use from your family as well as occasional wear from guests. Materials should be easy to clean and high-quality enough to last.

When it comes to design, keep the overall look uncluttered and inviting. Avoid overly busy or distracting décor, and instead aim for a balance of style and function. Adding thoughtful touches like extra seating options, storage that hides away personal items, or neutral color schemes with a few warm accents can help your second home feel both personal and guest-friendly.

2. Let the location guide your home's style

If you’re turning your second home into a vacation rental, let the local community and surroundings guide your design choices. A cottage in a beach town, for example, can lean into light, airy colors, nautical touches, and casual, comfortable furnishings. A mountain cabin, on the other hand, might feel more inviting with rustic textures, natural wood and cozy layers.

The goal isn’t to over-theme the space, but to capture the spirit of the area in a way that feels authentic and welcoming. Play with different design elements until you strike the right balance between your own style and what will resonate with guests.

By reflecting the character of the destination, you’ll not only create a more memorable experience but also make your property stand out in a competitive rental market.

3. Offer flexible sleeping options

While one bed in the primary bedroom may work for your own stays, it’s worth thinking about the needs of potential visitors. Flexible sleeping arrangements can make your second home more appealing to families, groups of friends or long-term guests.

Instead of one large bed in every room, consider adding two twin beds to at least one bedroom, which can easily accommodate both children and adults. You might also incorporate a sleeper sofa, a daybed with a trundle, or even a Murphy bed to maximize capacity without sacrificing style or comfort.

These options allow you to host larger groups while keeping the space practical and comfortable for your own use.

4. Choose finishes that cut down on upkeep

You can invest in quality materials without sacrificing style. Luxury vinyl plank flooring is durable, attractive, and cost-effective, while weather-resistant outdoor furniture extends the life of your patio or deck.

Inside, opt for easy-to-clean fabrics like leather or microfiber and sturdy surfaces such as wood or metal. Choosing low-maintenance, long-lasting pieces helps cut down on turnaround time between guests.

5. Add smart tech for convenience and security

A smart home is nice not just for you, but also for potential guests. There are so many ways to incorporate technology into your second home.

Smart lock

A physical key can be problematic when you regularly rent out your home. You must find a way to get the key to every new visitor staying at your second home. And if they lose it, you have to invest in getting new ones created. A smart lock is a keyless, remote-controlled lock for the front door.

As the homeowner, you can lock and unlock the door from wherever you are and give virtual keys to visitors. You can also set up alerts for activity and get notifications for who is coming and when.

Smart thermostat

Gone are the days of walking up to the thermostat and changing the temperature. Smart thermostats are on Wi-Fi, allowing you to control the temperature wherever you are.

You can set a smart thermostat at a specific temperature during the day (and at night) and turn off your air conditioning when no one is home. You don’t have to be there to do it, but rather, you can make changes straight from your phone.

Security systems

Like other smart home additions, new security systems are easily accessible through an app. You can use popular options like Ring or Google Nest, or get a system installed through a security company, like ADT or Vivint.

Whether you go the professional or DIY approach, choose one that works best with your smart home setup and has a simple user interface.

Keep backup options in mind for all your tech updates if technology falters. What’s your plan if there’s a glitch? You should be able to understand all of your tech, whether it’s restarting it or explaining the features to potential guests.

Make your second home work for you

Owning a second home can be a luxury, but it also brings extra expenses — from the mortgage to insurance, taxes and upkeep. One way to offset those costs is by turning the property into a source of income.

With the right upgrades, your second home can double as a rental when you’re not using it. Thoughtful design choices and smart home improvements not only make the space more appealing to guests but also help your property stand out in a competitive market.

On the hunt for a vacation home? Use the tool below, powered by Bankrate, to explore and compare some of today's top mortgage offers:

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Passive income has become a buzzword in recent years. The idea sounds perfect — money rolling in while you do nothing. But in reality, it’s no magic pill. Most passive income streams require significant upfront work or investment before the rewards show up.

That’s one reason passive income tends to benefit the ultra-wealthy in the long term. For the average investor, it usually means putting in time, money or both, and waiting years before returns become meaningful.

Take rental property, for example. Renovating or advertising for tenants can take months of effort. Once that’s done, the income might feel relatively hands-off, requiring a few hours of work each month. Still, as with any income source, it’s never guaranteed — despite what the latest TikTok influencer might suggest.

Dividend stocks and investment income

Receiving dividends is one of the best kinds of passive income because it doesn’t require any work once the money is invested.

When you buy a stock, you basically own a share of a company. As such, you might receive a dividend, which is part of a company’s profit that it doles out to shareholders. The more stocks you have, the more dividends you can potentially receive.

Keep in mind, these dividends are typically issued by established companies rather than start-ups, as they often have the ability to re-invest most or all their profits.

However, companies can decrease or halt dividends at any time. That’s why relying on them for a consistent income can be tricky.

Use the tool below, powered by Bankrate, to get connected with a financial professional who can provide personalized guidance based on your unique financial needs and goals:

Real estate and rental income

Real estate is another popular source of passive income. If you have a rental property, the money you receive from your tenants is passive. Unlike most mortgages, rent usually rises over time.

But you don’t have to buy a piece of property to take advantage of passive real estate income. Instead, you can invest in Real Estate Investment Trusts (REITs), which buy shares in several different kinds of properties. For example, REITs are often invested in apartment buildings, as well as commercial and hospitality properties.

Buying a REIT has a fairly low barrier to entry, especially compared with owning a rental property. You can also sell your REIT investment at any point, making it much more liquid than rental property. You can also commit to different types of REITs at once, focusing either on individual mortgages or commercial properties.

Royalties, licensing and intellectual property

If you create an artistic or academic piece of intellectual property, you can receive royalties or licensing fees long after the work is done.

This can be one of the hardest ways to build a passive income stream though, because you need creativity and luck on your side. Writing a hit song or creating a patent-worthy product unfortunately isn’t possible for everyone.

Royalties and licensing fees can dip as your creation becomes less popular or relevant over time. This might be out of your control.

For example, in the 2010s, many bloggers made money from Amazon affiliate links when people clicked on and bought products. However, as Amazon cut affiliate percentages and Google changed their search algorithm, those bloggers saw their incomes eventually drop.

Business ownership and silent partnerships

Owning a business often demands more energy and financial commitment than almost any other type of work — but it can also deliver meaningful rewards. Once the business is running smoothly, you can hire employees to handle day-to-day operations while you continue to earn income.

That said, the early stages are rarely passive. Launching a business requires long hours, careful planning and a willingness to take on risk. Even established businesses need oversight to stay profitable, whether that means adapting to market changes or managing unexpected expenses.

Alternatively, you can invest in a business as a silent partner, sharing in the profits without being involved in operations. This approach typically requires more upfront capital than other passive income strategies, and there’s no guarantee you’ll recoup your investment. As with many passive income ideas, success often comes down to timing, preparation — and a little luck.

Why passive income fuels generational wealth

You’ve probably heard that one key to building wealth is having multiple income streams. Passive income can make this easier than juggling several jobs, but it still requires time and effort to set up. Think of it like saving for retirement — the results don’t appear overnight, and patience is essential.

If you’re starting with limited resources, dividend-paying stocks and REITs are often the most accessible options to begin building passive income.

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Buying a million-dollar home on a $250,000 salary might sound like a reasonable goal. With a six-figure income, many assume they can comfortably manage the mortgage.

But the reality looks different once you add in taxes, insurance and other costs.

As mortgage interest rates edge lower, buyers might feel encouraged to shop for bigger or more expensive homes. Before you stretch your budget, it’s worth running the numbers to see what a $1 million home really costs each month and in the long term.

From steep closing costs to jumbo loan requirements, the expenses quickly add up. Here’s a closer look at what it takes to afford a million-dollar home on a $250,000 salary.

Crunching the numbers on a $1 million home

Let’s take a look at the average costs of buying a $1 million home. If you make a 20% down payment of $200,000, you’ll have an $800,000 mortgage. The current interest rate for a 30-year fixed mortgage is 6.35%, according to Freddie Mac.

Assuming you have strong credit and are a low-risk borrower who gets that 6.35% interest rate, your monthly mortgage payment, including interest, would be $4,978.

That mortgage payment excludes additional expenses such as property taxes and homeowner’s insurance, both of which will vary depending on where you live.

For example, Hawaii has the lowest property tax in 2025, with a rate of just 0.32%, but rates can be 2% or higher. For this example, let’s use Oxford County, Maine’s 1.192% tax rate, which is about in the middle of tax rates in the United States.

With a 1.192% tax rate, you'd pay $11,920 each year in property taxes on your $1 million home, which comes out to $993.34 per month. If your home’s assessed value increases in the future, or if your state or county tax rate increases, your taxes will rise, too.

You’ll also need to budget for insurance. Insurance.com estimates that the national cost of homeowners insurance for a million-dollar home is $7,412 per year, but many factors will affect your insurance premiums, including your home’s location, its age and even your history of making claims. The coverage you choose will also impact your rates.

Using these sample figures, if you wrapped your taxes and insurance into the mortgage, your monthly mortgage payment would be $6,558.

You’ll face additional costs when you close on your home, too. Closing costs for buyers can range from 2% to 5% of your home’s purchase price, according to Zillow, so you could pay up to $50,000.

Additionally, thanks to a real estate commission settlement, sellers might choose not to cover your agent’s fee, so you might be responsible for paying your real estate agent a commission of approximately 3% of your home’s sale price, or about $30,000.

Let's sum it up:

• Down payment: $200,000
• Closing costs: Approximately $50,000
• Real estate agent's fee: Potentially $30,000
• Annual property taxes: $11,920
• Annual homeowner's insurance: $7,412
• Monthly mortgage excluding taxes and insurance: $4,947
• Monthly mortgage including property taxes and insurance: $6,558

Debt-to-income and lenders’ rules

Lenders want to see that you’re financially stable and a low risk to issue you a mortgage and to give you a lower interest rate. In addition to considering factors such as your income, lenders review your debt-to-income ratio, which compares your recurring monthly debt payments to your monthly income.

According to Wells Fargo, mortgage lenders often prefer a debt-to-income ratio below 35% or 36%. If you’re making $250,000 per year and are bringing home $13,500 after taxes and retirement contributions, your existing debts can’t be higher than $4,860 per month.

For example, your car payments, student loans and credit card debts can’t add up to more than $4,860 per month.

Your debt-to-income ratio also affects your credit score, which can impact the mortgage rate you qualify for. A lower debt-to-income ratio can help to increase your credit score. Mortgage lenders see a higher credit score as indicative that you’re a lower-risk borrower, so you’ll be more likely to get a lower interest rate on your mortgage.

Jumbo loans and additional costs

Depending on the size of your down payment, you might need to take out a jumbo loan to buy your home. Jumbo loans are required for single-family mortgages of more than $806,500, which is the current loan-servicing limit set by Fannie Mae and Freddie Mac.

Jumbo loans often have higher interest rates and stricter underwriting rules than a traditional mortgage, but they're available as fixed-rate and adjustable-rate loans.

Since jumbo loans are riskier for lenders, you’ll usually need a higher credit score to qualify for them. According to Capital Bank MD, you’ll usually need a credit score of at least 680 for a $1 million loan. You’ll need a debt-to-income ratio under 43% to qualify, and lenders also like to see that you have significant cash savings to ensure you can make your mortgage payments.

Explore and compare some of today's best mortgage offers with the tool below, powered by Bankrate:

Variations by market: Expensive vs affordable metros

Your home’s location not only affects your property tax and insurance rates, but it also affects overall home affordability. Certain areas simply cost more to live in than others. Metropolitan areas with strong economies, such as New York City, San Francisco and Boston have higher costs of living.

To buy a house in one of these more expensive markets, you’ll need to budget more for expenses such as food, utilities and transportation.

If you’re willing to move to a more rural area, like West Virginia, Oklahoma or Mississippi, your costs of living will be lower. You can save on everything from home repair costs to taxes, and chances are, you’ll be able to get more house for your money, too.

Finding your comfort zone with mortgage costs

Dave Ramsey recommends homebuyers follow the 25% rule, in which your monthly house-related expenses, such as your mortgage, insurance and property taxes, add up to no more than 25% of your monthly take-home pay. This rule can help ensure you’re able to comfortably afford your mortgage.

In the above example, you'd take home $13,500 per month, and your mortgage payments, including taxes and insurance, would be $6,558. That’s nearly half your take-home income, indicating that in this situation, you can’t afford a million-dollar home on a $250,000-per-year income.

There are ways to change that, though. Saving up a larger down payment will lower your mortgage payments, and you might be able to afford a home with a lower mortgage.

You might also consider moving to an area where taxes and insurance are cheaper to keep costs down.

Ultimately, shopping for a more affordable home might be the best solution so that you can comfortably afford your mortgage.

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The 2025 hurricane season is underway, and Hurricane Erin was the first named storm. While Erin is moving back out to sea, forecasters are already tracking more systems right behind it.

For travelers, that means the risk of last-minute disruptions is far from over, and the window to prepare often closes once a storm is officially named. Taking steps now to understand airline policies, rental agreements and travel insurance options can make the difference between absorbing the full cost of a canceled trip and protecting your wallet.

If a hurricane forces you to cancel or change your vacation plans, knowing your rights and options ahead of time can help you minimize financial losses.

Get an airline waiver

The U.S. Department of Transportation states that travelers are entitled to a refund if an airline cancels a flight, regardless of the reason, and you choose not to travel on another flight.

You’re also entitled to a refund if the airline makes a significant schedule change or delay to a flight, and you choose not to travel.

If your flight is cancelled because of a hurricane or bad weather, you can request a refund in writing from your airline. You could alternatively choose to rebook on a different flight.

Receive a refund for mandatory evacuation

If you’re traveling to an area that’s been placed under a mandatory evacuation, you may be entitled to a refund.

For example, according to North Carolina Law, tenants of vacation rental properties in areas under mandatory evacuations are entitled to a refund from the landlord, including the rent, taxes and any other payments made in the rental agreement.

That refund is prorated for each night that you’re unable to live in the rental because of the evacuation order. The policy doesn’t apply if your landlord offered you insurance and you refused it, or if you have purchased travel insurance.

Check the vacation rental laws in the area that you’re traveling. You may find similar clauses entitling you to a refund if the area is put under mandatory evacuation.

File a claim with travel insurance

The best-case scenario is that you purchased travel insurance for your trip. If you haven’t yet bought travel insurance, it’s too late to get protection for any plans that Hurricane Erin cancels; you need to buy travel insurance hurricane coverage before a hurricane is named for the coverage to apply to that event.

If you do have travel insurance and your trip, or parts of it, are cancelled or delayed, you can file a claim for your prepaid, non-refundable trip expenses. Most comprehensive travel insurance policies include hurricane cancellations in the trip cancellation benefits.

Depending on the policy you buy, travel insurance hurricane coverage could help pay for expenses in several different scenarios:

• If your travel is delayed because of a hurricane, you may be able to claim a reimbursement amount per-day, helping to cover food and lodging costs.
• If a cruise or your travel to it is cancelled, trip interruption or missed connection coverage can help pay for related expenses, like alternatively transportation to get you caught up to the cruise.
• If you’re injured while traveling during a hurricane, your travel insurance can help cover your medical bills.
• If your destination lodging is damaged by a hurricane, or if the area is under governmental evacuation and you must cancel your trip, your insurance can cover related expenses.

Before you file a claim, make sure that you and your family are safe. Keep detailed records during your travel, including receipts for any prepaid expenses, your trip itinerary, any cancellation or delay notices you receive, weather reports and other documentation on the hurricane, photos of damage if applicable, and medical bills if applicable.

Contact your travel insurance provider right away. Your insurer will provide detailed information on how to file a claim, including any claim forms you need to submit, as well as how to send in your records and receipts.

File your travel insurance claim quickly, since many providers have time limits on claims. Then, closely monitor the claim and promptly respond to any correspondence and questions the insurer might have.

Prepare for travel during hurricane season

The 2025 hurricane season is already off to an eventful start, and it’s likely that we’ll see more hurricanes before the season’s end. If you’re planning to travel in areas frequently impacted by hurricanes, be sure to read the cancellation and refund policies of any lodging, cruises, hotels and airlines that you book.

Look for airlines and hotels that offer no-change-fee reservation options for extra scheduling flexibility, and consider buying travel insurance for extra protection.

As your travel dates approach, stay informed about the weather and be prepared to make some last-minute changes to your itinerary if a hurricane is approaching your destination. While cancelling or postponing a trip can be frustrating, hurricanes can be life-threatening events, so it’s always better to keep yourself and your family safe.

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When you’re buying a home, one of the biggest financial decisions you’ll make is figuring out how much mortgage you can truly afford.

Mortgage affordability is about how much you can borrow and repay without straining your budget, and the 28% rule offers a simple guideline to help ensure your mortgage stays within reach.

But given the climbing real estate prices and high interest rates in today's housing market, is the 28% rule still relevant?

What is the 28% rule?

The 28% rule is a common mortgage guideline used to gauge affordability. It offers a straightforward way to set a housing budget and avoid becoming overwhelmed by payments that outpace your income.

The rule comes from lending data showing that borrowers who keep housing costs at or below 28% of their gross income are more likely to stay on track with their mortgages.

Under the 28% rule, your monthly mortgage payment — including principal, interest, taxes and insurance — should'nt exceed 28% of your gross monthly income, which is your income before taxes or other deductions.

For example, if you earn $8,000 a month, your total housing costs should be no more than $2,240.

Does the 28% rule still work?

In today’s housing market, rising costs make the 28% rule harder to follow.

In the second quarter of 2025, the median U.S. home price was $410,800, up from $317,100 in the same quarter of 2020, according to the Federal Reserve Bank of St. Louis. Mortgage rates are elevated, too — the average 30-year fixed rate stood at 6.58% as of August 21, 2025.

Homeowners' insurance has also climbed as property values rise and natural disasters become more frequent. The Hartford reports the average premium now costs $2,397 per year, or about $200 per month.

All these factors can push housing expenses beyond 28% of gross income, but aiming to stay near that threshold is still wise. Over time, property taxes and insurance are likely to increase, and if your mortgage already exceeds the 28% mark, keeping up with future costs could become difficult — especially if your income doesn’t rise at the same pace.

What to consider when deciding how much mortgage you can afford

The 28% rule might feel restrictive when shopping for a home, but several factors can improve affordability. Your credit score directly affects your mortgage rate, so building strong credit — by paying bills on time and keeping balances low — can help you secure better terms.

A larger down payment also makes a difference. Putting more down reduces your loan balance, lowers interest costs over time and strengthens your offer in a competitive market.

It also pays to shop around for homeowners' insurance. Premiums vary widely by company, so compare quotes while making sure coverage limits and deductibles fit your needs. Choosing a higher deductible can lower your monthly cost, but be sure you have that amount set aside in savings if you ever need to file a claim.

Why the 28% rule still matters when buying a home

Buying a home you can truly afford isn’t easy, but the 28% rule offers a safeguard against taking on more than your budget can handle.

Overspending on a mortgage can create years of financial strain and leave little room for unexpected repairs or other expenses. As you plan your purchase, keeping the 28% rule in mind can help ensure your home is a source of stability — not stress.

Quickly compare some of today's best home insurance rates with the tool below, powered by Bankrate:

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Debt casts a shadow on your financial outlook. While having some debt is good, in the case of mortgages or making home improvements to improve your property value, other debt can prevent you from reaching your financial goals.

The key is knowing the difference and recognizing when your money habits are holding you back.

That’s where a little guidance can make a big difference. With the right strategies, you can shift from just getting by to building long-term financial stability.

Radio personality and financial adviser Dave Ramsey targets five behaviors that keep you in the revolving door of debt. Along with these habits, we'll show you ways to break them.

1. Living without a budget

A budget is your financial roadmap, directing you to your goals. However, if you don't have one, it can leave you in the dark about spending patterns and prevent you from reaching your goals.

This is why a budgeting app can come in handy. They're like the nonjudgmental best friend who helps you make sense of where your money goes.

You link your bank accounts, and they track your spending for you. You can also set savings and retirement goals. Some apps, such as Honeydue, can keep you on the same financial page as your loved ones, which is integral for couples or adults caring for aging parents.

If you're looking to try one out, this option from Quicken is easy to use and offers you a risk-free 30-day money-back guarantee.

2. Impulse buying

It's fun to treat yourself; however, if it isn't an occasional treat and more of a regular one, that's money you could be devoting to pay down debt or save.

It's why Ramsey recommends shopping with a plan in mind and cash in hand. Doing this keeps your focus narrowed to the task at hand. What's more, by paying in cash, it forces you to budget your expenses, reducing the likelihood of having the funds for impulse items.

If you're thinking about buying something a little bigger, wait for 24 hours. Taking a step back helps you assess whether the purchase is essential or a want.

3. Not having emergency savings

Life becomes unpredictable, and with it can come unexpected expenses. When those arise, having an emergency savings account is vital, as it helps you avoid going into further debt.

How much emergency savings should you have? Ramsey recommends saving from three to six months of expenses. That way, if a job loss or a high bill comes due, you have the funds to cover you.

If you're looking for quicker ways to reach this savings goal, consider a high-yield savings account. They earn rates far outpacing inflation, and many come with no account minimums or fees.

Use the tool below, powered by Bankrate, to search for some of today's top savings account offers:

4. Over-relying on credit cards

Credit cards can be great financial tools for saving money on everyday purchases. The best rewards credit cards offer cash back on groceries, dining out, streaming and traveling.

However, if you carry credit card debt, you're losing money. The interest fees alone will eat into your payments, especially if you only make the minimum amount. Every dollar you spend on interest is one dollar less you can invest or save.

If you have credit card debt you can't pay off monthly, consider paying cash for all expenses until you can. Doing this achieves several things: One, you won't add to your credit card debt. Two, it can help you spot areas in your budget you might need to trim to pay off your debt quicker.

Meanwhile, if you're struggling with credit card debt, contact your credit card issuer to tell them about your situation. They could customize a repayment plan that reduces interest rates. The benefit of this approach is that it'll close card use while on the plan, thus giving you a narrower focus on tackling debt.

5. Lifestyle creep

Lifestyle creep is when your income rises, so you decide to spend more. I get it, when you receive that raise, you want to treat yourself. However, as your income rises, you want to resist the temptation to spend more so your future self is in a better financial position.

Here are a few signs you might have lifestyle creep:

• Your income increases, but your savings remain the same
• Your impulse buys become a habit, not an outlier
• A failure to reach your financial goals

If you have lifestyle creep, there are ways to mitigate it quickly. The first is to set up a budget and review all of your expenses, as it can help spot patterns of overspending.

Next, set up automatic transfers from your checking account to a high-yield savings account on paydays. Doing this allows you to earmark money before spending, making you much more likely to reach your savings goals.

You should also get to know your money mindset. This is the belief you have about your money, savings habits and goals. Spending time analyzing the decisions you made can help you chart a course of action that helps you reach your goals and pay off debt quicker.

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Living debt-free can be an empowering way to build financial stability, but some common purchases can make it difficult to get free of debt.

Dave Ramsey, a financial adviser and radio personality, encourages consumers to work to quickly pay off their debts and make smart spending decisions to stay within their budget.

According to Ramsey's advice, you should avoid three common large purchases that are actually expensive mistakes, while other types of purchases are worth the cost.

What Dave Ramsey says to stop buying

Just because certain types of purchases are common doesn’t mean they’re necessarily wise or worth the cost. According to Ramsey, these are three financial mistakes to avoid.

New cars with loan payments

While many middle-class Americans take out loans to help cover the cost of a new car, Ramsey says this is a mistake. If you’re working to get debt-free, taking out an auto loan will only add to your debt. Plus, new vehicles depreciate in value, so they’re not a smart financial investment.

According to Experian, the average auto loan interest rate for buyers with excellent credit was 5.18% during the first quarter of 2025. That average rate was 15.81% for borrowers with poor credit scores. The interest on an auto loan can make it more difficult to pay off, and can significantly add to the amount that you ultimately pay for your new vehicle.

You’ll also pay more for car insurance when you buy a new vehicle. Since new cars have higher value and are more expensive to repair, car insurance providers charge higher premiums compared to what you would pay to insure an older vehicle of lesser value. Plus, if you finance the new car, most lenders will require you to purchase full coverage insurance until your auto loan is paid off, which will increase your premiums.

Timeshares

Timeshares, where multiple parties split the cost of a vacation property, are a popular vacation option for many. Each timeshare owner is guaranteed the option to spend time at the property, but Ramsey is quick to point out that when you invest in a timeshare, you don’t actually own the property, so there’s no investment value.

There are other problems, too. Timeshares are expensive, and if you don’t have the money to pay the full price upfront, interest fees and loans will add to your debt and the overall cost. In addition to the purchase price, you’ll be responsible for many fees, including annual dues, maintenance fees and utilities. Timeshares are difficult to get out of, too.

Extended warranties

Extended warranties, where you purchase extra coverage on an item like a car or appliance, may seem like a wise investment, but Ramsey says they’re just not worth it. The chances of you having to use the extended warranty are low, it wouldn’t make financial sense for the company to offer the warranties.

Extended warranty coverage is also limited, so you might find that the cost you paid for the warranty doesn’t even give you the coverage you need. Plus, extended warranty costs can quickly add up if you buy them often.

What Dave Ramsey says is worth the money

While Ramsey is against common middle-class spending habits like buying new cars with loans, there are a few large purchases that he says are worth the money.

Budgeted home repairs and maintenance

Ramsey says that neglecting basic home upkeep can cost you more in the long run. It makes sense to spend on preventive home maintenance as long as you incorporate those costs into your budget and don’t take out loans or put the expenses on a credit card.

Replacing a roof or fixing your furnace might not be the most exciting way to spend your money, but it can pay off by preventing damage and larger repairs to your home that you could otherwise face later on.

Used cars purchased entirely with cash

Rather than take out an auto loan to buy a new car, Ramsey recommends buying a used vehicle that you can purchase entirely with cash. Used cars have already taken a depreciation hit, and you can avoid high interest rates and high initial car insurance costs by buying used.

If you’re worried about a used vehicle potentially needing repairs, try to arrange to take it to a mechanic for a pre-purchase evaluation to identify any issues. Certified pre-owned cars are another option; these vehicles have undergone examinations and come with some warranties, but they’re still more affordable than brand-new vehicles.

The bottom line on spending smarter

Common spending habits like financing new vehicles may be socially accepted and seen as normal, but they can actually sabotage your financial goals.

Rethinking your spending habits, especially when it comes to these big purchases, can help protect your long-term financial security and set you on the path to getting and staying debt-free.

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The final straw in giving up on cable and becoming a cord-cutter was when the cable box I paid $10 monthly to rent — on top of my $100 monthly bill — had fuzzy reception. To get a clear image, I had to use the cable company's app on my smart TV with an internet connection, rather than going through the cable box itself.

That made me think: Maybe I could save even more with cheaper, alternative services for cable.

After comparison shopping, I now pay $40 monthly for mostly the same channels through the Sling app, which includes digital recording, on-demand programs and a great channel guide. And it works while traveling, except for local stations. It was half the price of YouTube TV – and DirectTV was even pricier.

After shopping, I was able to get all services, including internet, streaming services and my cellphone, for $150 per month, adding up to $100 saved monthly. Plus, I can watch programming on any device without paying rental fees for cable boxes in different rooms.

My cord-cutting savings aren't uncommon. Eighty dollars is "the minimum that I've been able to save people," says Ray Gustini, a CordSlayer cord-cutting consultant. He helps people save money by planning equipment purchases, figuring out what services they watch, and when to rotate services by sports season or series start and end dates.

He recommends the following steps to save money by cord-cutting:

1. Get a digital antenna for free services

With just a digital antenna in an urban area, you may be able to get free over-the-air channels such as FOX, CBS, ABC, NBC, and dozens to over a hundred local channels, depending on where you live. "It's not like back in the day where you'd get eight channels; there are hundreds of things you can pick up locals from a big variety of places," says Gustini.

Digital antennas cost under $50 if you install it yourself or can be purchased for as little as $50 with easy installation. A digital antenna can be "screwed into the back of your TV," says Gustini.

Just don't expect them to work well if you don't live in a densely populated area. Jason Haviland, a Cottage Street Advisors senior partner and certified financial planner, lives 50 miles from Boston. He was too far away from TV towers near the city to get free channels with a digital antenna, so he spent several hundred dollars on a physical antenna installed on his house rooftop — only for new neighborhood trees to eventually block his signal, leaving many channels pixelated.

Thus, he has to use paid apps for some channels, but his strategy is still cheaper than cable TV services. He estimates he's saved up to $250 monthly by cutting the cord.

2. Explore free services on your smart TV

If you have a smart TV, it likely comes with its own set of free programming. Samsung devices and smart TVs come preprogrammed with hundreds of channels, including networks you know. Channels currently include Movie Favorites by Lifetime, PBS Kids and MSG Sports Zone.

Other TVs have their own preprogrammed free TV, including LG Channels, Vizio WatchFree+ and Google TV Live, which is available on a variety of brands.

3. Don't pay for services you don’t use

Eliminating services you never use or rotating services for sports or seasonal series can save hundreds of dollars per year. I signed up for Sling because I was used to having cable.

But I realized I only watch one TV channel beyond what I stream with Amazon Prime and Netflix. Instead of paying for Sling, I can get an app for that channel and save $25 per year – or $300 annually.

"You can toggle stuff on and off," says Gustini. "That's a big thing, not rotating your subscriptions."

Set reminders for when the show you are watching ends to cancel your subscription. Free trial end dates also need reminders.

For sports, look at what you need to purchase to watch the games you like. "You can still get a lot of those games with a digital antenna, because you'll be getting whatever's on CBS, NBC and Fox." Then, you can supplement with an ESPN standalone or a March Madness package, he says.

For services you do use, look out for regular deals and sales, like around Black Friday or Amazon Prime Day.

Let your cord-cutting savings grow

Now that you've started making choices that save your monthly spending, you should put those savings to work.

Whether you want the safety of a high-yield savings account or to invest your money in an S&P index fund, you can easily save up over $10,000 in 10 years — and potentially over $70,000 if the investments perform well.

Let's say after cord-cutting, you're saving $75 per month. That, on its own, adds up to $9,000 over 10 years.

Now, if you take your $75 monthly savings and invest it, you could attain a total of over $11,200 or even upwards of $15,000 depending on what you do with it, thanks to growth and the power of compounding. And if you invested $75 monthly for 20 years, the base $18,000 could grow to $28,000 or even up to about $75,000, depending how you invest it and other factors.

The wide earnings difference depends on whether you invest your money in a savings account with a high interest rate (high-yield savings account) or an S&P 500 indexed fund (an investment containing stocks in the largest 500 publicly traded companies).

High-yield savings accounts have variable interest rates, so the actual growth of investing $75 per month over 10 years will vary, but you can currently find accounts with rates over 4%. They differ from, say, a certificate of deposit (CD), which might have a higher interest rate but doesn't allow for adding new investments on a monthly basis like a savings account does.

The S&P 500, meanwhile, may sound like a "boring" way to invest in the stock market, but it’s also one of the more lucrative options. Historically, the S&P 500 has returned about 10% per year, or around 6-8% after inflation.

Haviland, the Boston-area financial planner, also suggests you could invest the extra savings in Treasury bills, an investment by the U.S. government that often has higher returns than the average high-yield savings account. Like a CD, though, those have set schedules of how you can invest.

This is a good reminder of a few important personal finance facts:

1. Recurring payments add up over time, so one of the most effective ways to adjust your budget is to try to cut recurring payments, like cable bills, down.
2. On the flip side, recurring savings add up over time, and a little goes a long way, especially over longer periods of time.

Seemingly "small" decisions have major impacts on your financial life — and these savings might make you smile a little extra the next time you sit down to watch your favorite show.

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There’s no one-size-fits-all formula when it comes to getting approved for a mortgage. Whether it's for your first home or your dream cabin getaway, each lender sets its own eligibility criteria, interest rates and loan options, which means the right lender for one borrower might not be the best fit for another.

As a homebuyer, it’s important to understand your financial situation and loan preferences early on. This will help you find a lender that aligns with your needs, increasing your chances of approval and favorable rates.

To help you navigate the process, we'll go over five steps to choosing the right mortgage lender and

Where mortgage interest rates and policy stand now

Last year, the Federal Reserve cut interest rates three times. While mortgage rates don’t move in step with the federal funds rate, they often trend in the same direction over time, and that’s starting to show up in borrowing costs.

The average 30-year fixed mortgage rate is 6.11%, and the average 15-year fixed rate is around 5.50%, according to Freddie Mac. That’s a noticeable improvement from a year ago, when the average 30-year rate was closer to 7.04%.

Even modest rate shifts can affect how much you qualify to borrow and which lenders offer the best terms. Comparing interest rates, lender fees and loan types side by side can help you lock in the best rate before the next policy move.

1. Figure out your home loan preferences

Your first step in homebuying is figuring out what you can afford. Your monthly mortgage payment will include principal and interest amounts, taxes and insurance. Once you have an idea of what you can afford, think about your mortgage type, as this will impact your payments:

• A 15-year loan vs. a 30-year loan: Most people opt for a 30-year mortgage loan since it means smaller monthly payments over a 30-year repayment term. But if you want to pay off your loan sooner and pay less in interest over the life of your loan, look into a 15-year loan.
• Fixed interest vs. adjustable rate: A fixed interest rate stays the same for the life of the loan, giving you predictable monthly payments. An adjustable-rate mortgage (ARM), on the other hand, typically starts with a lower introductory rate. After a set period, however, the rate adjusts based on market conditions, which means your payments could go up or down. Over time, you might end up paying more than someone with a fixed-rate mortgage.
• Conventional vs. FHA/VA/USDA loans: Conventional loans are the most popular type of loan. They aren’t backed by any government agency, and most banks, credit unions and online lenders offer them. FHA, VA and USDA loans are government-backed mortgages based on specific needs. For instance, if you’re a veteran, you could qualify for a VA loan.

Your preferences and financial situation play a big role in narrowing down the right mortgage lenders. For example, if you're looking for a government-backed loan like an FHA or USDA mortgage, you'll want to focus on lenders who specialize in or are approved to offer those specific programs. These options may not be available through lenders that primarily deal with conventional loans.

Understanding what type of loan you qualify for — and what fits your needs — can help you avoid wasting time on lenders that aren’t a good match.

2. Check your eligibility

Once you’ve eliminated mortgage lenders that don’t fit within your preferences, you can start to review the ones that do. Many banks, credit unions and online lenders offer pre-qualification tools to help you see if you’re likely to qualify for a mortgage.

Pre-qualification is different from preapproval — it doesn’t require a hard credit check and won’t affect your credit score. Instead, you enter basic information such as your estimated credit score, income and assets to get a sense of your eligibility.

Checking your eligibility helps determine which lenders are more likely to give you a mortgage based on your creditworthiness, income and where you want to buy a home. You’ll narrow your list even further by getting rid of lenders that may have eligibility requirements you don’t meet.

Try to explore different lenders beyond large financial institutions. You might be able to find offers at local credit unions, regional banks or online mortgage companies. You might be eligible for offers at places you may not have considered.

Take a look at what your current bank offers. Some have deals for existing customers with other accounts. You may qualify for special savings.

3. Compare lenders

Once you’ve narrowed down your list of potential lenders, it’s time to compare the ones most likely to approve your mortgage. Compare lenders based on interest rates, preferred loan terms, down payment requirements and any extra fees. Those fees could include underwriting, loan origination fees and closing costs.

As you shop around, consider getting preapproved by multiple lenders. While each preapproval involves a hard credit inquiry, credit bureaus recognize that you're rate shopping for a mortgage.

If these inquiries occur within a short window — typically 14 to 45 days — they’re grouped as a single inquiry for scoring purposes. This allows you to explore your options without significantly harming your credit score.

4. Review preapprovals and choose a lender

After receiving a few preapprovals, review which lender offers the highest loan amount. Keep in mind, you’re not obligated to spend up to that limit — but having a higher preapproval can give you more flexibility as you explore different homes and price ranges.

It’s also worth evaluating each lender’s communication style and how they’re compensated. Some lenders work as mortgage brokers, meaning they help match you with a loan and may earn a commission at closing.

Ask each lender if they have any special offers or conditions to lower the overall cost. Find out how much potential monthly payments will be for each lender, including your principal mortgage payment, interest, insurance, taxes, and any other costs — that way, you know what to expect before committing.

Many lenders offer a rate lock option, so it’s important to confirm the details with each one. A rate lock lets you secure the current interest rate for a set period — typically 30 or 60 days — while your loan is finalized. This protects you from potential rate increases between the time you’re approved and the day you close on your home.

5. Complete your loan application

Once you’ve chosen a lender and received your preapproval letter, you’ll be ready to start touring homes. After finding the right property, you’ll complete a formal loan application. This step is similar to preapproval, but it initiates the full underwriting process for your actual mortgage.

This is the loan you’ll carry through the life of your home purchase. If you’ve locked in your interest rate, your monthly payments should align with the estimates you received during preapproval, giving you a clear idea of what to expect financially.

The right lender can help you secure competitive rates and make the homebuying process smoother and less stressful. Take your time, ask questions and don’t be afraid to explore multiple options before committing.

Use the tool below, powered by Bankrate, to explore and compare some of today's top mortgage offers:

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As we head into summer storm season, lightning strikes are an increased danger.

According to the National Weather Service, approximately 100,000 thunderstorms occur in the United States each year, and certain locations, such as west central Florida, can experience particularly severe thunderstorms.

Natural disasters such as lightning can cause death and property destruction, and lightning strikes are a frequently overlooked danger. These lightning safety tips can help you protect yourself, your loved ones and your home.

How to stay safe during lightning storms

If you’re caught in a lightning storm, understanding how to stay safe could save your life. The National Weather Service reports that about 20 people are killed by lightning in the United States each year. Survivors of lightning strikes can experience significant injuries, and some could face lifelong neurological damage.

Fortunately, these lightning safety tips can help keep you safe during storms:

• Watch the forecast: Check the summer weather forecast before you head outdoors, especially if you’re going to go boating or hiking. While you’re out, watch for dark clouds, and carefully listen for distant thunder.
• Keep your distance: Lightning can strike as far as 10 miles from the nearest rainfall, so it doesn’t have to be raining for you to be struck. If there’s a storm remotely nearby, it’s time to seek shelter.  
• Stay in your car: If you’re caught in a storm, don’t try to get out of your vehicle. A hard-top car’s steel frame can help protect you, but make sure you’re not touching any metal within your vehicle.
• Stay safe indoors: If you’re able to safely get into your house, stay away from windows and doors. You should also avoid lying on concrete floors or leaning on concrete walls, since lightning can travel through metal wires or bars in concrete.
• Avoid water: Lightning can travel through your home’s plumbing, so avoid contact with water, such as washing dishes or bathing during a storm.
• Avoid electronics: Lightning can also potentially travel through electrical systems in your home, so you could be electrocuted if it strikes while you’re touching an electronic device that’s plugged in. Don’t use your computer, washer, stove or other appliances during a storm.
• Wait it out:  According to the U.S. Centers for Disease Control and Prevention, you’re in the greatest danger at the beginning and end of a storm. Wait at least 30 minutes after a storm passes before you go outside.

Does home insurance cover lightning damage to your home and property?

A lightning strike, either directly to your home or in a nearby location, can cause significant damage. Lightning can cause explosions and damage to electronic devices and appliances, and it can even start fires that can damage or destroy your home.

Most homeowners insurance policies include lightning as a covered peril, and they will pay repair or replacement costs for your home and your belongings.

However, be sure to review your policy’s limits and exclusions; your personal belongings might be covered only up to a set amount, so you could still lose money if you have to replace belongings after a lightning strike.

According to the Insurance Information Institute, in 2023, United States homeowners received $1.2 billion in home insurance payouts for lightning claims. The average cost of each claim was $17,413. Florida, Georgia, Texas, California and Alabama had the highest number of lightning claims in 2023.

Explore some of today's best home insurance offers with the tool below, powered by Bankrate:

Tips for protecting your home from lightning

While insurance will usually cover damage caused by lightning, it’s best to prevent the damage altogether if possible. These lightning safety tips can help you protect your home:

• Install whole-home surge protection: An electrician can install a whole-home surge protector in your home’s main electrical panel. The surge protector can help protect your appliances from electrical surges caused by lightning and other issues. Angi estimates that whole-home surge protectors cost an average of $300, and the installation costs around $100 to $200.
• Use device surge protectors: You can also buy surge protectors to use for your individual devices. Surge protectors are only intended for smaller devices that don’t draw large amounts of energy. Large appliances such as refrigerators, space heaters and air conditioners need to be plugged directly into a wall outlet.
• Unplug your devices: If you’re home when a storm strikes, unplugging your devices offers extra protection.
• Invest in a lightning protection system: A lightning protection system can help prevent or minimize damage to your home. The system incorporates a lightning rod, which intercepts a lightning strike. Once the lightning strikes the rod, it’s guided through a safe, conductive path to the ground. According to Angi, these systems cost from $443 to $2,663 to install.

Some of these preventative measures, such as a whole-home surge protector and a lightning protection system, might qualify for a discount on your homeowners insurance and could lower your premium.

If you’re considering installing any of these systems, contact your insurance company ahead of time to see if the system qualifies and to make sure you meet any additional requirements.

Even if you don’t receive an insurance discount for these summer storm safety measures, they can pay off in increased peace of mind, knowing that you’re protecting your home.

Related content

• Hurricane Season 2025: What Travelers Need to Know This Summer
• Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and Fires
• ‘Storm Chaser’ Scammers Are Targeting Natural Disaster Victims

If you’re tired of paying large wireless bills each month, you might consider changing to a budget wireless carrier. These carriers offer affordable plans starting around just $15 per month, and they’re often appealing alternatives to traditional wireless plans.

According to J.D. Power, the average wireless monthly price was $141 in 2024, so you could cut your phone bill if you switch to a budget wireless carrier.

Most budget carriers, known as mobile virtual network operators (MVNOs), lease network access from major providers like Verizon, AT&T, or T-Mobile, meaning you’ll often get the same coverage. However, these low-cost plans may come with trade-offs.

Before you make the change, here’s what you need to know about these options.

What are budget wireless carriers and how do they work?

Budget carriers offer simple plans at low prices, and they’re able to offer those lower prices because they don’t own their wireless networks. Instead, these companies lease coverage from major networks like Verizon, AT&T and T-Mobile. MVNOs often lease coverage from multiple networks, which allows them to provide strong signals and speeds to customers in many locations.

Though MVNOs get the same speeds as customers who have plans directly with Verizon, AT&T and T-Mobile, those networks’ direct customers will receive priority over MVNO customers.

For example, at peak usage times, a Verizon customer will be prioritized and will receive top speeds, while an MVNO customer using the Verizon network may experience reduced speeds.

MVNOs offer cheaper plans than what you’ll find from major networks, and those plans have fewer frills. Many plans limit data usage and cap speeds on data. When buying an MVNO plan, you may only be able to choose from a few phones, while customers buying directly from a large network will have a wider range of phones.

At the same time, MVNOs can be an appealing choice if you’re looking to save money on your cell phone bill. Most MVNOs require no contract, so you can pay monthly and cancel your service anytime without cancellation fees.

There are many MVNOs available today. Some of the most popular include:

• Mint Mobile
• Cricket Wireless
• Consumer Coverage
• Metro by T-Mobile
• Boost Mobile
• Xfinity Mobile
• Spectrum Mobile
• Straight Talk
• FreedomPop

Now, Trump Mobile is joining the lineup of MVNOs. But is Trump Mobile a wise choice?

What Trump Mobile is promising

The newly announced Trump Mobile plan costs $47.45 per month and includes unlimited talk, text and data. International calling is available to 100 destinations, and there’s no credit check required to buy a plan. Since there’s no contract, you can cancel your service at any time.

According to the Trump Mobile website, the service works with most major phones, so you may be able to use your current device. Preorders of the T1 Phone are also available; the phone costs $499 and will be available in September 2025. The website states that the T1 Phone will be made in America.

Potential Trump Mobile drawbacks

While the prospect of a $499 smartphone and an affordable plan sounds appealing, there are potential red flags to be aware of. Essential plan details are missing, including the networks that Trump Mobile uses.

The terms of use page states that the service is “powered by Liberty Mobile Wireless LLC.” Trump Mobile doesn’t specify whether customers will receive 4G LTE or 5G speeds, and the exact coverage really isn’t defined.

The plan website states that international calling is available to 100 destinations, but when you read the fine print, you’ll find that time caps – some as low as 10 minutes – apply to most of those destinations.

Originally, the website stated that the phone would be made in the USA, and there was question about whether that was possible or true. According to Newsweek, a phone made in the United States would probably cost over $1,000, double the T1’s cost, since smartphone technology largely relies on international supply chains. The Trump Mobile website has since been updated to state that the phone will be "designed and built in the USA."

If you’re thinking of signing up, take a few minutes to review the Trump Mobile privacy policy so you’re familiar with its terms. According to the policy, Trump Mobile’s AI systems can collect data, including the pages you visit, links you click on, your IP address and location information.

How to evaluate if a switch to a budget wireless carrier makes sense

MVNOs are appealing because of their low costs, and they may make financial sense for some individuals who don’t heavily use data or need premium speeds. But before you plan to switch, review your phone usage and ask yourself the following questions:

• Are you paying for data you don’t use? Data plans can quickly drive up your wireless bill. If you have large portions of unused data left over each month, you might be able to save by choosing a budget plan with a lower data limit.
• Do you need premium speeds or in-person customer support? If you need reliably fast speeds, a budget carrier might not be the best choice, since you could experience lower speeds during peak times. Some budget carriers offer limited or no in-person customer support, so consider the availability of that support when choosing a carrier.
• Is your current carrier offering loyalty perks? Review your current wireless statement and see if you’re getting any loyalty perks, like discounts on your bills or exclusive offers. If you leave your current carrier and then decide to go back to them in the future, you’ll have to re-qualify for those perks.

Bottom line

You may see substantial savings when you choose a budget wireless carrier, but these services aren’t the right fit for everyone. Thoroughly research any carrier that you’re considering and make sure that the speeds, coverage and services will all meet your needs before you make the switch.

Related Content

• Switch to a Smaller Mobile Provider to Cut Your Phone Bill
• Mint Mobile Is Offering $440 Off Samsung and Google Phones Plus Half Off Unlimited Plans for Two Years
• Verizon’s Free iPhone Deal: What to Know Before You Switch or Upgrade

Carnival is shaking up its loyalty perks with Carnival Reward, launching in June 2026. Instead of just counting cruise nights, you’ll now earn points and stars based on how much you spend on fares, onboard treats and everyday purchases with the Carnival Rewards Mastercard.

This shift follows broader travel loyalty trends where flexibility and experience-driven rewards are prioritized. With the new rewards system, travelers can start using rewards for spa treatments or future sailings rather than being locked into fixed tiers.

How the new Carnival Rewards program works

Under the new program, guests earn:

• Carnival rewards points on eligible cruise fares and onboard purchases, redeemable like cash for specialty dining, spa treatments, shore excursions or applied to future bookings.
• Status-qualifying stars based on total spend, determining tier levels (Red, Gold, Platinum, Diamond) over a two-year earning period, with status retained for the following two years and extended retention for current Diamond members through May 31, 2032.

Existing VIFP tiers will convert into equivalent entry points in the new program to honor past loyalty and Fun Points from the Carnival World Mastercard will convert to Carnival Rewards points at launch.

Earn rewards with everyday spending

The Carnival Rewards Mastercard, co-branded with Barclays, will let cardmembers earn points via routine purchases for items like groceries, bills and coffee runs to enhance your cruise perks without extra sailings.

Of course, paying balances in full is key though, since interest charges can wipe out the benefit of any extra points. Before Carnival’s new rewards program launches, compare this card’s rewards and fees against your current travel or cash back cards to see where it fits in your financial goals and preferences.

How to earn more rewards during your cruise

High-value activities during your cruise like spa treatments, specialty dining and excursions are the sweet spot for racking up points and stars once earning ratios are published.

Rather than splurging randomly though, wait for Carnival’s details on point-per-dollar and star-per-dollar rates. Then, plan experiences that give you the best return.

Keep an eye out for milestones or launch promotions offering bonus points or stars; those early boosts can jumpstart your status progress.

Smart strategies for travelers

As Carnival Rewards™ shifts focus from nights at sea to dollars spent, your strategy may need to shift too. Whether you're a frequent cruiser or a once-a-year vacationer, understanding how to maximize your points and stars can help you unlock more value from each trip.

Plan spend vs. sail frequency

• Decide whether to prioritize more cruises at modest spend levels or fewer sailings with higher onboard purchases. Because stars accrue on total spend, a longer cruise with targeted high-value activities (e.g., spa treatments, specialty dining) might boost your status more efficiently than multiple short sailings at budget fares.
  
• For those balancing family commitments such as traveling with teens or multi-generational groups, concentrate spend strategically. You may want to group bookings under one account to maximize combined onboard purchases and shared perks.

Maximize onboard earnings

• Prioritize high-return onboard activities once earning ratios are published: if spa treatments yield a high point-per-dollar ratio, plan one or two treatments; if specialty dining offers bonus stars, reserve accordingly.
  
• Keep track of milestone offers or limited-time promotions around launch. For example, bonus points for early bookings or extra stars for certain packages, as Carnival often introduces incentives to drive early engagement.

Monitor status progress and deadlines

• Note the two-year earning window and set calendar reminders well before period end to assess progress. Use Carnival’s tracking tools once available to gauge points and stars, and adjust your spend or sail plans if needed.

Stay informed on announcements

• Sign up for Carnival loyalty communications and follow CarnivalRewards.com for detailed earning rates, redemption charts and benefit specifics as they are released. Early awareness enables savvy cruise planning and credit card sign-up timing.
• Keep an eye on partner offers (e.g., hotel or rental car tie-ins) if Carnival announces non-cruise partnerships that yield bonus points or stars, further extending options to earn once you’re ashore.

What to do before Carnival Rewards launches

As June 2026 approaches, start by checking your current VIFP status to estimate where you’ll land under Carnival Rewards. This can guide your decision on whether it makes sense to add a cruise in the meantime or boost onboard spending before the switch.

At the same time, you can compare the upcoming Carnival Rewards Mastercard with your existing cards. Applying early could help you accumulate Fun Points ahead of launch and accelerate earnings once the new program begins.

If your schedule allows, consider booking sailings just after the launch to take advantage of any promotional bonuses that often accompany a loyalty overhaul. You can also weave any cruise-related expenses into your broader budget to make sure that planned onboard splurges fit within your savings plan and don’t derail other financial goals.

Related Content

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• How to Save on Booking a Cruise

Summers have been getting hotter, and forecasters say that trend is likely to continue. If you're thinking about making home upgrades to keep your house cooler and reduce energy costs, now may be the right time.

According to the latest Global Annual-to-Decadal Climate Update from the World Meteorological Organization, there is an 86% chance that at least one year between 2026 and 2030 will surpass 2024 as the warmest year on record. The report also says there's a 91% chance global temperatures will temporarily exceed 1.5 degrees Celsius above pre-industrial levels during that period and a 75% chance the five-year average will remain above that threshold.

While homeowners can't control the weather, they can prepare for it. Heat-proofing your home can help improve comfort, reduce strain on your air conditioner and lower cooling costs during increasingly hot summers. As you plan remodeling projects or seasonal upgrades, consider these smart home improvements that can help your home stay cooler.

Fortify your roof and insulation

Extreme heat can wear out and damage your roof over time, causing materials like shingles to crack, warp and blister. The heat can reduce your roof’s lifespan, and if your roof is damaged, moisture can get through and damage your home.

To protect your roof, invest in extra ventilation, like attic fans, which can help keep hot air from getting trapped in your attic. Updating your ventilation system can also help prevent mold from forming while keeping your home cooler, too.

Adding or replacing your attic insulation can help keep cool air within your house. Maximizing your home’s insulation has the added benefit of reducing the load on your HVAC system, which can prolong its lifespan and reduce your utility usage.

You might also want to upgrade to reflective or cool roofing materials to help reduce heat absorption. While asphalt shingles can be damaged by extreme heat, other roofing materials, like clay tiles or metal roof panels, can better withstand extreme heat.

Invest in efficient cooling and ventilation

Your older HVAC system may have gotten by during the past few summers, but as heatwaves become more prolonged, older systems will struggle to keep up with your home’s cooling needs.

To keep your home cool, upgrade to a high-efficiency HVAC system or a heat pump with a smart thermostat. The smart thermostat allows you to easily adjust and monitor your home’s temperature even when you aren’t home, so you can avoid wasting energy.

Additionally, make sure your home is zoned, so you can control the temperatures within each zone. You can maximize the cooling in rooms where your family is present, like the dining room or living room, while letting unused spaces get a bit warmer until you need to access them again.

Whole-house ventilation can also help release trapped heat and improve the airflow throughout your home. This system, which consists of ducts and fans, can bring clean air into and throughout your home to help keep temperatures cool. Whole-house ventilation has the added benefit of helping to control moisture and reduce allergens for better overall air quality.

Add shade and exterior protection

The right upgrades to your home’s exterior can dramatically reduce its indoor temperature. Block direct sunlight and create shade for your home by planting shade trees.

You can also add awnings, pergolas or shade sails to block sunlight, plus you can remove these additions in the winter to maximize natural light and warmth.

If you park your vehicle near your home, your vehicle’s reflective surface can radiate sunlight and heat to your home. Consider creating a covered parking space to protect your home from this radiant heat.

Prepare for power disruptions

To survive extreme heat at home, most homeowners will rely more on utilities to power HVAC systems and fans, and that additional usage can strain the power grid. Plus, the increased temperatures will contribute to more extreme weather, like stronger hurricanes. These factors mean that power grid outages will become more likely, too.

You can prepare for a power outage by investing in a standby generator to keep your air conditioner, fridge or medical equipment running during an emergency.

If you're not ready to purchase a standby generator, then think about installing solar panels with a battery backup. They can generate enough electricity to help power some of your essentials, so you can keep your lights on until the power returns.

Upgrade windows and materials for heat resistance

Heat can travel through your home’s windows, so protect them to keep your home cooler. Add heat-blocking window film, UV shades or thermal curtains to keep your home’s interior spaces cooler.

Extreme, prolonged heat can also take a toll on your home’s exterior finishes. You might want to invest in materials that are more heat-resistant, such as fiber cement siding or heat-resistant paints to maximize your exterior’s lifespan.

It's time to make home upgrades for extreme heat

With the temperatures only rising over the coming years, now is the time to make home improvements for hot weather. Investing in just a few of these improvements can help keep your home cooler while also saving money on your utility bills.

If you’re planning any home renovations or DIY projects this summer, incorporate some of these ideas so that you’re better prepared to survive extreme heat at home.

Related Content

• How Much Does Flood Insurance Cost in 2025?
• Should You Get Earthquake Insurance?
• Hail Damage Insurance Claims: Is Filing Worth the Cost and Hassle?

Do you have moves like Buffett? Play our quiz and test your knowledge of Warren Buffett's investment strategies. They don't call him the Oracle of Omaha for nothing.

More on Warren Buffett and his investing philosophy, from the Kiplinger team:

• How You Can Invest Like Warren Buffett: An Expert's Guide
• Warren Buffett Advice: Why You Should Pick Businesses, Not Stocks
• Warren Buffett Stocks: The Berkshire Hathaway Portfolio

See if you can hit a streak, beating the time you take to solve the crossword. Or challenge your friends to beat your time. There's a new crossword puzzle to try every day. Want more? See our crosswords archive.

How to Play:

• Click or tap on either a clue or a box in the grid to start entering an answer.
• You can also use the arrow keys to move around the grid.
• You get 10 points for each correct word completed.
• Revealing letters or words will cost you points.
• Pause the timer by clicking the 'Clock' icon in the menu at the top of the puzzle.
• The target time to complete this puzzle is 15 minutes. You get bonus points for every full minute you're under the target. There is no penalty for going over the time limit.
• Click on the 'Play Together' icon in the puzzle menu to email a friend and invite them to play this puzzle with you in real time.

Challenge yourself to find as many words as you can that include the letter in the center. The more letters you use, the more you score. There's a new Word Flower game to play every day. Want more? See our Word Flower archive.

How to Play:

• Find as many words as you can. All words must include the letter in the center.
• You can use each letter multiple times in a single word.
• Longer words get more points. Pangrams (words with all the letters) get an additional bonus of 5 points.
• The target time to complete this puzzle is 15 minutes. You get bonus points for every full minute you're under the target. There is no penalty for going over the time limit.
• Click on the 'Play Together' icon in the puzzle menu to email a friend and invite them to play the puzzle with you in real time.
• If you are stuck, click on the puzzle menu. 'Reveal' will show you any words you haven’t found yet. 'Hint' will show one or more letters.
• Pause the timer at any time by clicking the 'Clock' icon in the menu at the top of the puzzle.
• Use the 'Start Again' option in the Puzzle menu to reset the entire grid.

How many attempts will it take you to guess the hidden word? There's a new online Word Row puzzle to try every day. Want more? See our archive of Word Row puzzles.

How to Play:

• Guess the hidden word in as few tries as possible. You have up to 6 attempts.
• Press enter to submit each attempt.
• Letters in gray do not appear in the word.
• Letters in yellow are in the word, but not in the right place.
• Letters in green are in the word and in the right place.

How to Play Word Row:
- Guess the hidden word in as few attempts as possible. You have up to 6 attempts.
- Press enter to submit each attempt.
- Letters in gray are not present in the word.
- Letters in yellow are present in the word but not in the right place.
- Letters in green are present in the word and in the right place.

Challenge yourself with today's hard Sudoku, then see if your friends can beat your time. There's a new puzzle to try every day. Want more? See our archive of Sudoku puzzles.

How to Play:

• Fill the grid using the numbers 1 to 9.
• Each number can only appear once in each row, column and 3x3 box.
• Use pen mode when you are sure about the entry in a box.
• Use pencil mode to add possible options.
• Pause the timer by clicking the clock icon in the top menu.
  

Try today's easy Sudoku. There's a new one to play every day. And if you need more of a challenge, there's a hard Sudoku puzzle to tackle. Want even more? See our easy Sudoku puzzles archive.

How to Play:

• Fill the grid using the numbers 1 to 9. Each number can only appear once in each row, column and 3x3 box.
• Use pen mode when you are sure about the entry in a box.
• Use pencil mode to add possible options. These are shown as smaller than the “confirmed” pen entries.
• Pause the timer at any time by clicking the 'clock' icon in the puzzle menu.

Test yourself with our daily word search puzzle. Hunt down all the words hidden in this grid. If you get stuck, you can invite a friend to help you. There's a new word search to play every day. Want to try more? See our archive of Word Search puzzles.

How to Play:

• Find all the listed words hidden in the grid.
• To mark words you have found, click the first letter of the word, drag until the last letter, then release.
• Words can run horizontally, vertically or diagonally and may go forward or backward.
• To find a word, tap on the word in the grid, then select 'Hint'.
• Play With a Friend: Click on the 'Play Together' icon in the menu bar at the top of the puzzle to email a friend and invite them to play this puzzle with you.

Take a break and play today's mini crossword for free. There's a new puzzle to test your wits every day. Want more? See our mini crosswords archive.

How to Play:

• Click or tap on either a clue or a box in the grid to start entering an answer.
• You can also use the arrow keys to move around the grid.
• You get 10 points for each correct word completed.
• Revealing letters or words will cost you points.
• Pause the timer by clicking the 'Clock' icon in the menu at the top of the puzzle.
• The target time to complete this puzzle is 15 minutes. You get bonus points for every full minute you're under the target. There is no penalty for going over the time limit.
• Click on the 'Play Together' icon in the puzzle menu to email a friend and invite them to play this puzzle with you in real time.

With hurricane season beginning in June, now is the time for homeowners to review their insurance coverage and prepare for the possibility of severe weather. While many people assume their homeowners insurance policy will cover storm-related damage, that isn't always the case, especially when flooding is involved.

Flood damage is one of the most common coverage gaps for homeowners. Standard homeowners insurance policies typically cover wind damage from hurricanes and tropical storms, but they almost always exclude damage caused by flooding. Unfortunately, many homeowners don't discover this limitation until after water has already entered their homes.

Before severe weather threatens your area, take a close look at your insurance policies and understand what is and isn't covered. If you don't already have flood insurance, you may still have time to purchase a policy. Here's how much flood insurance costs, what it covers and why it may be worth considering even if you don't live in a high-risk flood zone.

How much is flood insurance?

The Federal Emergency Management Agency (FEMA) reports that an average National Flood Insurance Program (NFIP) policy costs about $786 per year, based on 2023 data. That equates to about $65.50 per month. Private insurance providers also offer flood insurance, and rates for those policies can vary.

Several factors will affect your flood insurance cost. One of the biggest is whether your home is in a designated flood zone and its elevation level. Homes in flood-prone areas or at lower elevations typically face higher premiums due to the increased risk.

Insurers also consider the value of your home and how much it would cost to replace it. If you’ve previously filed home insurance claims, an insurance company may see you as a higher risk to insure and may charge you higher premiums.

While paying for flood insurance is another expense in addition to your standard homeowners insurance costs, flood insurance may help cover expensive repair or replacement costs after a flood. According to the National Flood Insurance Program (NFIP), 99% of United States counties have been impacted by flooding since 1996, and NFIP policyholder claims average $68,000.

Use the tool below, powered by Bankrate, to compare some of today's top insurance offers:

Does home insurance cover flood damage?

No, standard home insurance policies do not cover flooding. To make things more annoying, water damage that you might not consider flood-related could still be classified as flooding by your insurance company.

Because of these tricky classifications, it's usually a good idea to add home insurance even if you don't live in a flood-prone zone.

Does renters' insurance cover flood damage?

Like home insurance, renters' insurance does not usually cover damage to your belongings caused by flooding. Fortunately, a flood insurance policy for renters is usually cheaper since it only has to cover your belongings, not the property itself.

What does FEMA’s Risk Rating 2.0 mean for homeowners who need flood insurance?

FEMA implemented Risk Rating 2.0, a new method for calculating NFIP policy pricing. Risk Rating 2.0 went into full effect on April 1, 2022, and changed the way that policies are calculated.

Under the former calculation method, flood insurance premium calculations were heavily based on factors like a home’s flood zone and elevation.

Under Risk Rating 2.0, the factors considered are expanded, including a property’s flooding frequency, common flood types, its proximity to flood sources, and building characteristics, like the height of its first floor. Rather than relying on a flood map, the Risk Rating 2.0 system calculates premiums based on factors specific to individual homes.

According to the NFIP, Risk Rating 2.0 helps ensure that rate increases and decreases more accurately reflect the flood risks that individual homeowners see. NFIP reports that 96% of policyholders will see decreases or increases of no more than $20 per month under Risk Rating 2.0.

What does flood insurance cover?

Flood insurance covers your building and its components, including the electrical and plumbing system, built-in appliances, fuel tanks and solar energy equipment and detached garages.

A standard flood insurance policy also provides coverage for your personal belongings. This includes items such as clothing, furniture, electronics and appliances like your washer and dryer.

Most policies include limited coverage for high-value items, such as artwork or collectibles, though coverage caps may apply. Be sure to review your policy details to understand what is included and whether you may need additional coverage for certain valuables.

Flood insurance generally excludes items such as cars, swimming pools and decks. Policies through the National Flood Insurance Program (NFIP) also do not cover temporary housing or additional living expenses if you’re displaced from your home during repairs.

Coverage exclusions vary depending on the policy you purchase, so make sure to thoroughly read and understand your flood insurance policy. If you have any questions about your insurance, contact your insurance company when purchasing the policy to get a clear explanation.

Who needs flood insurance?

If your home is in a high-risk flood area, such as a flood zone, it’s a very good idea to purchase flood insurance. If you have a mortgage by a federally regulated lender, your lender may require you to buy a minimum amount of flood insurance to protect your home.

Flood insurance isn’t necessarily required if you’re in a low or moderate risk area, but it’s still a good idea. According to the National Association of Insurance Commissioners, 25% of floods occur outside of high-risk areas.

Many situations can cause floods, such as a neighbor’s pool draining into your home or heavy spring rains that flood your basement. Buying flood insurance can give you peace of mind knowing that your home is protected just in case.

How to reduce flood risk and lower your flood insurance cost

There are several ways you can reduce the risk of your home flooding:

• Elevate your home: If your home is at high-risk in a flood zone and has previously flooded, you may consider raising it up to prevent future flooding. This is a significant investment, but it could be worth the cost if your home repeatedly floods.
• Seal your foundation: You can apply a waterproof foundation sealer to your home’s foundation to help keep water from penetrating it. Be sure to focus on seams and vents to close up any gaps.
• Install a backflow valve on your sewer: Water damage caused by a sewer backup is considered flood damage and isn’t covered under your traditional homeowners insurance. You can install a backflow valve on your sewer to help prevent any water from entering your home.
• Elevate your heating and cooling systems: Consider elevating your heating and cooling systems, electrical panels and water heaters so they are less likely to be damaged in a flood.

Your flood insurance provider may give you a discount for implementing some of the above steps to reduce flood risk to your home. Contact them to describe the ways you’re actively working to reduce flood risk.

If you want to save more on your flood insurance, be sure to shop around and get quotes from multiple companies. You might also choose a policy with a higher deductible, which can lower your premiums. Just be sure that you have money for the deductible set aside in case you ever have to file a claim.

Related content

• Hurricane Insurance Claims: 10 Things You Need to Know
• Should You Get Earthquake Insurance?
• 8 Reasons Why Your Home Insurance Costs Are Surging
• 4 Ways to Lower Your Home Insurance Premium in 2025

Car insurance companies have been offering drivers ways to lower their car insurance premiums by using apps. These programs typically involve downloading an app that tracks your driving habits or mileage, with insurers promising potential discounts in exchange for the data collected.

But some drivers have been surprised to learn that unrelated apps are also collecting and sharing driving data, sometimes resulting in higher insurance rates. Even navigation, shopping and weather apps can track movement patterns that may be linked to driving behavior.

In some cases, this data is sold to third parties or data brokers, who then provide it to insurers. In today’s world of widespread app use, privacy and data sharing are growing concerns. We break down how this data is collected, who’s using it and what you can do to protect yourself.

How apps that track driving behavior collect data

Car insurance companies are using telematics, systems that monitor your driving, to learn about your driving habits. These smartphone-based insurance programs typically require you to download an app and allow it to track your behavior while you drive.

The apps collect a range of data, including your location, speed, how often you brake hard and whether you use your phone while driving. Some also track mileage, the time of day you drive and how frequently you're on the road.

While drivers may expect apps that track driving behavior to share data with their insurance companies, many are surprised to learn that other, unrelated apps are collecting and sharing similar data without their knowledge.

Life360, for example, is marketed as a location-tracking app designed to help families monitor each other’s whereabouts for safety. But in January 2025, Texas Attorney General Ken Paxton sued Allstate and its data affiliate, Arity, alleging they “unlawfully collected and sold data about the location and movement of Texans’ cellphones through secretly embedded software in mobile apps, such as Life360.” The lawsuit claims Allstate paid app developers to include its software, allowing the company to track and sell consumer driving data.

Other apps may be doing the same. According to Edmunds, apps like GasBuddy, which tracks local fuel prices, and MyRadar, a weather app, can use your phone’s motion sensors to monitor your driving. That data can then be analyzed and sold to third parties.

How driving data affects insurance rates

Car insurance companies review driving data to assess how risky a driver you are. Frequent hard braking or speeding, for example, may be seen as signs of risky behavior. The time of day you drive also matters; driving late at night or during rush hour can raise your chances of an accident, increasing the risk for insurers.

Insurance companies promote driving behavior apps as a way to earn lower premiums, rewarding safe drivers with potential discounts. But these apps don’t always work as intended. Reviews of Progressive’s Snapshot app often mention inaccurate tracking and mis recorded trips, which can result in unexpected rate increases.

If you’re not aware that your driving is being tracked, you could face higher premiums without knowing why. Some Life360 users, for instance, have reported unexplained premium hikes.

According to Edmunds, one user, Kathleen Lomax, didn’t realize her driving data was being collected until she contacted the company and learned that Life360 shares data with Arity. Arity can then sell that data to auto insurers, who may use it to generate individual driving scores that affect rates.

How to protect your driving data

There are several ways to help keep your data safe and limit the data that your car insurance company can access.

• Carefully choose your apps: Before installing a new app, thoroughly read its terms and conditions, and pay close attention to the privacy statement and sections on data collection and sharing. If you’re not comfortable with the terms, don’t download and use the app.
• Opt out of data sharing: Some apps offer you the option to opt out of allowing your data to be shared. Using this feature can help protect your data.
• Request a LexisNexis Consumer Disclosure Report: You can request a LexisNexis Consumer Disclosure Report online. It’s free to request a report, and the report can help you identify the types of data that are being shared.
• Use Privacy4Cars tools: Privacy4Cars offers several tools for consumers, including an option to request a vehicle privacy report to see what data your car is collecting. The Privacy4Cars app includes an option to delete your personal information from vehicles.

If you're uncertain about an app your car dealer recommends or your insurance company promotes, take the time to ask questions before downloading it. Understanding what data an app collects, how it’s used and who it’s shared with can help you make an informed decision.

It’s far easier to avoid sharing your data in the first place than to try to undo it later. When in doubt, err on the side of caution. If an app seems questionable or unnecessary, the safest choice is to skip it entirely. Your personal data and your insurance premiums could depend on it.

Use the tool below, powered by Bankrate, to explore some of today's best auto insurance offers:

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Americans faced 5,430 severe hail events last year, according to the National Weather Service Storm Prediction Center Annual Severe Weather Report Summary. And that's considered a relatively mild year for hailstorms, with the count topping 7,300 in 2024 and over 10,000 in 2023.

The point is: Hail happens often, especially if you live in the Midwest. And the damage these natural disasters cause adds up. According to a 2023 analysis by State Farm, the major insurance agency paid out $3.5 billion in hail-related claims that year. That's just one insurer in one year.

Hail can dent vehicle exteriors and crack windshields, as well as damage your home's roof, gutters and windows.

Fortunately, your home and auto insurance policies can help cover some of the costs of repairing your home or vehicle. To maximize your insurance payout, you'll need to be sure to meet your insurer's claim requirements.

In some cases, it may make more sense to pay for the damage out of pocket, so before you file a hail damage claim, take a moment to review whether it will pay off.

Is a hail damage insurance claim worth it?

Before you file a hail damage claim, start by reviewing your insurance policy. Most homeowners insurance policies and comprehensive auto insurance policies cover hail damage. Confirm that you have coverage for hail damage but also review your deductible to decide if you should file the claim.

Your insurance deductible might be as small as a few hundred dollars or it could be several thousand dollars. Whatever you've set it at, consider whether the cost of the hail damage will exceed the deductible.

For example, if you have a $4,000 deductible and your home has sustained only minor damage, it may make more sense not to file a claim. You'll be paying the bulk of the repair costs out of pocket anyway, so there's no reason to add a claim to your record.

You'll also need to consider potential rate increases and long-term implications. Filing a claim can also cause an insurer to increase your premiums. Insurers base your rates, in part, on how likely you are to file a claim. So, the logic is that if you've filed one in the past, you're more likely to file another one in the future. The insurer may raise your rates as a result.

If you have multiple claims in a short period, you might even face a nonrenewal or cancellation down the road if you file another claim now as the company decides you're too risky to insure.

Generally speaking, it makes sense to file a hail damage insurance claim when the damage is substantial and will cost more than your deductible to repair. If you have minimal damage and the repairs are affordable, you may decide to pay for the repairs yourself, avoiding any insurance premium increases.

How to file a hail damage insurance claim

If you decide a hail damage claim is worth it, you should immediately document the damage to your home or car right away. Take clear, detailed photos and videos from different angles and include a timestamp.

Try to estimate the size of the hail and take photos of the hail with a common object, like a dollar bill, for a size reference. Keep your photos and videos organized and label them so you can easily access them. Make sure to write down the date and time when the damage occurred, too.

Next, file the claim with your insurance company. To get an insurer to pay your claim after a natural disaster, it's important to file quickly. Many insurance companies now have apps that you can use to file a claim, and you can often upload photos right within the app.

If you have questions about the claims process, you can also file a claim over the phone. Be sure to record the representative's name and date of the call, and take detailed notes about any next steps.

If this is your first claim, pay attention to how the claims process was. Was it a smooth process, or was it overly complicated and riddled with unhelpful customer service every step of the way? If your current insurer made filing this claim a headache, it may be worth shopping around ahead of your next renewal to see if you can find better rates (and service) elsewhere.

For car insurance, you can start your search with our car insurance comparison tool, powered by Bankrate:

Tips for working with adjusters on your hail damage insurance claim

Once you've filed a claim, your insurance company will usually schedule a time for an adjuster to come out and review the damage in person. In the meantime, contact local contractors or auto repair specialists to get quotes of your own. Try to gather three quotes in writing for the repair costs.

During your appointment with the adjuster, you can share your photos and videos and the repair quotes that you’ve gathered. The adjuster will review the damage, estimate the repair costs, and prepare an initial claim offer.

You don't have to accept the initial claim offer if it doesn't cover all of the work and expenses that the contractors included in your estimates. You can contact the adjuster again and highlight the differences in cost, and they may be willing to increase the offer.

If you don't reach an agreement with the adjuster, you have several other options:

• Hire a public adjuster: A public adjuster works to help you get the claim amount that you're entitled to. When hiring a public adjuster, look for someone local and research the company's reputation. Public adjusters charge a percentage of the claim payout that you receive in exchange for their service.
• Contact your state's insurance commissioner’s office to file a dispute: Your insurance commissioner can advocate for you and can work to reach a claim payout agreement that's fair.
• Hire a lawyer to represent you: A lawyer can negotiate with the insurance company on your behalf and may be able to secure an agreement that covers your repair costs. If the lawyer can't reach that agreement through negotiation, they can represent you in court. Hiring a lawyer can be very expensive, so this option makes the most sense if your house has sustained extensive damage and you have a very expensive claim.

How to complete the insurance claim process

Once you've agreed on a payout amount, sign the claim agreement to finalize the claim. Your insurance agent will inform you how you'll receive payments, whether you'll receive one or more checks in the mail or the insurer plans to pay the contractor directly.

Your insurance company may recommend local professionals who can repair your home or car. But you have the right to choose your own contractor or repair shop. You might decide that one of the contractors you received a quote from is right for the job, or you can continue speaking with local contractors until you find one you trust. Be sure to ask the contractors about their timelines, including when they'll be able to start and finish work.

Dealing with hail damage is an inconvenience, but filing a claim with your insurance company can help pay for many of the costs involved. By properly documenting the damage and being prepared to work with the adjuster, you can maximize your claim payout to cover most of your repair costs.

Compare some of today's top home insurance offers with the tool below, in partnership with Bankrate:

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