Category: Moneywise

Dave from Springfield, Illinois is only 21 years old, fresh out of college, debt-free, in a stable relationship and hustling through internships. He’s even considering proposing to his girlfriend to start a new family.

There’s just one pressing concern: his girlfriend’s enormous pile of debt. He estimates that her total outstanding balance is roughly $70,000.

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“Everytime I try to bring it up, she’s dismissive about it,” said the recent grad on an episode of The Ramsey Show. “I don’t really want to pay off her debt.”

Co-host John Delony’s response was as blunt as possible: “You should just break up with her, dude.”

Here’s why the show’s mental health expert made a snap judgement that the relationship is doomed already.

Not on the same page

Dave’s hesitation to marry someone with debt isn’t unusual. A 2024 survey by the Achieve Center for Consumer Insights found that 64% of U.S. adults wouldn’t want to date someone with a lot of debt. Even an outstanding balance of $10,000 or less would be enough for 29% of people to consider ending their relationship.

Put simply, debt is a deal-breaker for many adults. For Dave, his girlfriend’s attitude towards the enormous balance also represents how different their outlook on life and money is.

“She’s a little unmotivated like she isn’t really that ambitious,” he said, explaining that she hasn’t really looked for much work out of college while he’s been busy doing internships and building a career.

"I worked so hard to be debt-free and she just kind of took the short-cut and I don’t know, it just feels weird for me.”

A lack of shared money values once you’re in a relationship isn’t so common. Roughly 84% of American couples said they were financially compatible with their partner, according to a 2024 Ipsos poll, while 87% said they were comfortable talking to their partner about personal finances.

Delony suggests that Dave’s lack of shared money goals with his girlfriend foreshadows more disagreements in the future.

“Down the road, you’re going to run into, ‘Oh, I want to raise kids like this but this is how my dad did it’ or ‘I don’t want to live in this neighborhood or this house,’” he said. “If that’s your first impulse is ‘what about me?’ then you’re not ready to get married yet.”

Co-host Rachel Cruze agrees, calling his girlfriend’s perspective on debt a “red flag.” However, she encourages Dave to have a conversation to see if they can try to get on the same page before breaking up.

If you and your partner are struggling to find common ground, there are ways to resolve these types of differences.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Resolving differences

Money can be a tricky subject, but the majority of American adults (79%) think it’s best to talk about personal finances with their partner early in their relationship, according to the Ipsos poll. At the same time, the Achieve study found that 29% of adults said couples should discuss their debt honestly within the first six months of dating.

With this in mind, having an open and honest conversation about your personal finances and debt can set the stage for a healthy relationship. You could also consider raising the subject periodically and creating a household budget together so that you and your partner can match expectations and create clear boundaries for individual finances.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The Trump administration is aggressively focused on cutting costs and reducing the size of government. To that end, President Donald Trump signed an executive order in February, aimed at reducing the federal bureaucracy.

Agency heads responded to the executive order, and, in conjunction with efforts by the Department of Government Efficiency (DOGE), more than 50,000 federal workers have been laid off from their positions.

Many of these firings have been challenged in court, with several judges issuing injunctions on the firings and ordering workers to be reinstated or placed on administrative leave. However, the Trump administration is appealing these orders, and there is a very real possibility that they will ultimately be able to follow through on their workforce reduction efforts.

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If the federal workforce does end up being substantially reduced, obviously it will profoundly affect the finances of government workers. However, every American could also find their finances affected by such a move.

Here’s how your finances — including your retirement and taxes — could be affected.

Getting help with Social Security benefits could be harder

The Social Security Administration (SSA) is one of the agencies that expects to reduce its workforce, indicating that it’s planning to cut as many as 7,000 jobs. The agency has also operated with a regional structure of 10 offices, which will be reduced to four.

NPR reports that one source at the SSA believes this will have dire consequences because people who need help with claiming retirement or disability benefits will not get the support they need.

"The public is going to suffer terribly as a result of this," the source wrote.

"Local field offices will close, hold times will increase and people will be sicker, hungry or die when checks don’t arrive or a disability hearing is delayed just one month too late."

While the Trump administration has pledged not to cut Social Security benefits, new plans to require in-person verification of identity have also raised concerns that not everyone will be able to access the benefits they need. The plans were partially walked back amid outcry from advocacy groups over concerns that seniors with disabilities might face challenges in accessing benefits.

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It may be more difficult to get tax help

The IRS is also on the chopping black. Around 7,000 probationary workers were laid off in February, although those workers have been reinstated, per court orders, and placed on administrative leave. The IRS is reported to be preparing for a 50% cut to its workforce, reducing it from 100,000 to around 50,000, by way of buyouts, attrition and layoffs.

While workers who are considered "critical" to processing tax returns have been prevented from accepting buyouts until after the tax filing deadline, downsizing the IRS could make it more difficult for people to get help with tax issues over the long-run.

Experts told Kiplinger that it is becoming more difficult to get someone to answer the phone at the IRS, and that high-value collections cases are no longer being handled properly because the revenue officers that were working on the cases have been fired.

Low staffing levels at the IRS could also result in returns and refunds being processed more slowly, taxes going uncollected and more people facing tax penalties because they can’t get their questions answered by knowledgeable staff members.

Consumers could become more vulnerable to financial fraud and abuse

Finally, the Trump administration has been very aggressive in making moves to shutter the Consumer Financial Protection Bureau (CFPB). All 1,700 workers were sent home in early February, and Elon Musk tweeted out "CFPB RIP."

While the bureau’s staff union and other groups have been fighting these layoffs, and some workers were called back, the reality is that the CFPB has spent years dedicated to fighting against consumer fraud and abuse.

When the agency’s work was halted, as reported by U.S. News & World Report, it put a temporary — and perhaps permanent — pause on several pending cases, including against Capital One for misleading customers and costing them $2 million in missed interest payments; against Zelle over fraud on its platform that caused hundreds of millions in losses; and against Walmart for charging millions in junk fees.

The CFPB also worked to limit excessive overdraft and credit card fees, restricted lending to high-risk borrowers and took other actions to rein in predatory lenders.

All of these efforts could end, leading to banking and other financial products becoming more expensive and consumers facing an increased risk of wrongful behavior by big companies.

Consumers will need to wait and see if these layoffs become permanent, and if the changes to these agencies actually go forward. If so, they may be left coping with the financial fallout — and with less resources available to help respond to newfound challenges.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The upper middle class earns more than the typical American, and has disposable income to live a nice lifestyle – although they aren’t rich in the sense that they don’t have to worry about money or work for it.

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ScienceDirect defines it as a social group within the middle class that includes wealthy property owners, entrepreneurs, individuals with high salaries, and highly educated professionals.

The household income you need to break into the upper middle class in America varies by state, and the average is $122,171 per year, according to a GoBankingRates analysis of Census data. Since the median household income in this country is $78,538, that’s quite a bit more than most people earn.

In the 19 poorest states in America, your household salary can be below $122,171— and sometimes well below it — and you would still be classified as upper middle class.

Here’s how much you’d need to earn in these 19 states, along with some details on how you can move yourself up financially no matter where you live.

Here’s what it takes

According to GoBankingRates, this is the annual household income you would need to be in the upper middle class in the poorest U.S. states.

Mississippi: $85,424 to $109,830

Louisiana: $93,370 to $120,046

New Mexico: $96,640 to $124,250

West Virginia: $90,094 to $115,834

Kentucky: $97,094 to $124,834

Arkansas: $91,426 to $117,546

Alabama: $96,487 to $124,054

Oklahoma: $98,939 to $127,206

South Carolina: $103,940 to $133,636

Tennessee: $104,374 to $134,194

Texas: $118,677 to $152,584

Georgia: $116,145 to $149,328

Ohio: $108,392 to $139,360

North Carolina: $108,741 to $139,808

Michigan: $110,677 to $142,298

Arizona: $119,580 to $153,744

Missouri: $107,210 to $137,840

Florida: $111,551 to $143,422

Nevada: $117,540 to $151,122

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As you can see, many of these states are in the South, where the cost of living tends to be much lower. In Mississippi, for example, Bestplaces reports a family needs just $29,880 per year to live comfortably, which is 53.9% less expensive than the national average.

Housing, transportation, and childcare all come at a lower cost in Mississippi than in many parts of the country, making it easier to afford to live on less. Because of the lower cost of living, salaries on the whole tend to be lower, with the median household income coming in at $54,915 in the state.

Since wages and costs are lower, it’s not a surprise that you don’t need to earn as much to be in the upper middle class. And this trend holds true for the other low-cost states on this list as well.

How to increase your income — and class bracket — no matter where you live

Whether you live in one of these poorer states or you live in a rich one, it’s always a worthwhile goal to try to increase your income as much as possible. That’s not to compete with your peers, but because more disposable income helps you to secure your financial future and live a life free of money worries.

Fortunately, there are many ways to increase what you earn and set yourself up for a better life.

One of the best ways to do that is to get more education, either by going to school for longer or by participating in training programs at work. If you can pursue advanced education, aim to do that when possible. For 25- to 34-year-olds who worked full time, year round, the median earnings of those with a master’s or higher degree ($80,200) were 20% higher than the earnings of those with a bachelor’s degree ($66,600) as their highest level of attainment, according to the National Center for Education Statistics.

You can also consider working a side gig to bring in extra income, or developing multiple streams of income, such as investing in real estate or dividend-paying stocks.

Simply negotiating your salary when you get hired or when you look for a new job can also make a huge difference, as Pew Research reported in 2023, among workers who did ask for higher pay, 28% said they were given the pay they asked for and 38% said they were given more than was originally offered but less than they had asked for.

By taking these steps, hopefully you can break into the upper middle class, or even become rich, depending on where you live. It’s well worth the effort, as the more you earn, the higher your Social Security checks and the more money you can save and invest during your lifetime to build the financial security you deserve.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Canadian Prime Minister Mark Carney has taken a hard line on President Donald Trump’s tariff threats, vowing to hit back with retaliatory trade measures designed to inflict “maximum impact” on the U.S.

While tensions between the two allies have escalated, “Shark Tank” investor Kevin O’Leary believes Carney’s tough talk is little more than political theatre ahead of Canada’s upcoming federal election.

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“The anti-U.S. rhetoric is being stirred up by Carney because his party devastated the country over the last 10 years, and the only way he can stay in power is to convince people he’s the solution against Trump,” O’Leary said in a March 31 interview with Fox Business. “The rhetoric has never been hotter, and of course he’s five weeks away from an election, so he’ll stir the pot any way he can.”

Canada’s election is scheduled for April 28. O’Leary, who was born in Canada, didn’t hold back in his criticism of Carney and the prime minister’s Liberal Party.

“You’ve got to remember, Canada actually only grew under the Liberal Party 1.4% in 10 years. The economy is wiped out,” he said. “One of the reasons Canadians can’t go to Florida is, his party wiped out the value of the dollar … Canadians can’t afford to go to Disneyland anymore.”

O’Leary didn’t cite a source for his growth figure, but Trevor Tombe, professor of economics at the University of Calgary, has noted that Canada’s real GDP per capita grew just 1.4% from Q1 2015 to Q3 2024, based on data from the Organisation for Economic Co-operation and Development. The Liberal Party has been in power since late 2015.

As for the loonie (Canadian dollar), it has indeed weakened over the past decade. In April 2015, one Canadian dollar was worth about 81 U.S. cents. Ten years later, it trades closer to 70 cents — a drop of roughly 13.6%.

While O’Leary dismisses the tension as election-driven, trade disputes can trigger real geopolitical uncertainty with ripple effects that extend far beyond politics. Markets don’t react well to unpredictability, and we’ve already seen headlines of trillions in U.S. market value wiped out as Trump pushes forward with tariffs.

In times like these, financial experts often recommend taking steps to hedge against uncertainty. Here’s a look at three strategies that can help protect your wealth.

A classic safe haven

Gold has long been considered a go-to asset during times of economic and geopolitical uncertainty — and for good reason.

Unlike stocks or currencies, gold isn’t tied to any one government or economy. It also can’t be printed at will by central banks. Those characteristics make it especially attractive when confidence in political leadership, trade stability or the value of paper money start to slip.

When markets grow jittery, investors often turn to gold as a safe haven. Case in point: over the past year, gold prices have surged over 33%, recently topping $3,100 an ounce.

Billionaire hedge fund manager Ray Dalio has warned that most people “don’t have, typically, an adequate amount of gold in their portfolio.”

He added: “When bad times come, gold is a very effective diversifier.”

For those looking to capitalize on gold’s potential while also securing tax advantages, one option is opening a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those seeking to shield their retirement funds against economic uncertainties.

When you make a qualifying purchase with Priority Gold, you can receive up to $5,000 in precious metals for free.

A time-tested income play

Real estate has long been a favored way to generate passive income — and unlike stocks or bonds, it’s a tangible asset you can see and manage.

While markets can swing wildly in response to headlines, high-quality, well-located properties can continue producing rental income regardless of what’s happening on Wall Street.

Real estate is also a time-tested hedge against inflation. As the cost of materials, labor and land rises, property values often increase as well. At the same time, rental income tends to climb, giving landlords a revenue stream that adjusts with inflation.

While home prices have been soaring and mortgage rates remain elevated, you don’t need to buy a property outright to get in the game. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

If you’re interested in commercial real estate, there are plenty of opportunities as well.

First National Realty Partners (FNRP), for instance, allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

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A finer alternative

It’s easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. This also makes art an attractive option for investors looking to diversify.

In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history.

Investing in art was once a privilege reserved for the ultra-wealthy.

Now, that’s changed with Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It’s easy to use, and with 23 successful exits to date, every one of them has been profitable thus far.

Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.

Masterworks has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Like an island far away on the horizon, owning a home has never felt more out of reach. Year after year, home prices have climbed higher, leaving many buyers with a tailwind, wondering if they’ll ever catch a break.

In January, the S&P CoreLogic Case-Shiller index — a key measure of national home prices — jumped another 4.1% year-over-year. And February wasn’t any kinder, with the National Association of Realtors (NAR) reporting a 3.8% annual increase in the cost of existing homes.

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But could relief finally be on the way? Housing inventory appears to be on the rise, which could lead to lower home prices. Several major real estate organizations — including Fannie Mae, the Mortgage Bankers Association and the NAR — expect home price growth to slow in 2025.

This could benefit buyers, but it’s also something sellers should keep in mind.

Why homebuyers could see relief

One big reason home prices remain high is limited inventory. When supply is scarce, prices tend to rise.

In February, housing inventory climbed 5.1% from the previous month and 17% year over year, according to the NAR. This growing supply could help stabilize or even reduce home prices. Many homeowners have been reluctant to sell in recent years due to high mortgage rates.

During and shortly after the pandemic, many homeowners locked in historically low mortgage rates by either purchasing a home or refinancing. As a result, they have been hesitant to trade their affordable loans for costlier ones.

However, mortgage rates have fallen modestly in recent months. If this trend continues, more homeowners may decide to list their properties, further increasing supply and cooling the housing market.

Home prices could decline more noticeably in regions with abundant supply, such as Texas and Florida. In January’s Case-Shiller report, which tracks prices in 20 major U.S. cities, Tampa was the only market to show a year-over-year drop.

Meanwhile, as more companies implement return-to-office policies, large metropolitan areas like New York City may experience stronger home price growth due to increased demand. New York, Boston and Chicago saw the largest price gains in January’s Case-Shiller reading.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How homeowners can prepare

While U.S. home prices are unlikely to plummet, inventory is gradually normalizing.

Some experts worry that factors such as tariff policies could fuel an economic recession, potentially dampening homebuyer demand and pushing home values downward. Some markets — particularly major job hubs — may be more insulated from these effects. However, all homeowners should be prepared.

As of the third quarter of 2024, the average U.S. homeowner had approximately $311,000 in home equity, according to CoreLogic.

If you’re a homeowner, you may want to capitalize on the equity you have now — and protect yourself against a potential recession — by applying for a home equity loan or line of credit (HELOC) sooner rather than later.

A HELOC could be a more flexible option than a home equity loan since it doesn’t require immediate installment payments. Instead, homeowners can access funds as needed.

Unfortunately, now is not a particularly good time to refinance a mortgage, as rates are still elevated. Many homeowners would be looking at higher rates than they currently have.

However, refinancing — particularly through a cash-out refinance — could still be worth looking at, as it allows homeowners to tap into their home equity.

Should you sell now?

The answer depends on your situation.

Selling before prices drop could allow you to lock in a higher sale price. However, if you plan to buy another home at the same time, you’ll likely pay more for your new property — potentially at a higher mortgage rate.

That said, now could be a good time to sell if you’re downsizing, especially if you won’t need to take out a mortgage on a smaller or less expensive home.

Ultimately, no one has a crystal ball to foresee when the right time to sell will be based on current market conditions. But another factor to consider is the possibility of a recession.

A recent Deutsche Bank survey puts the probability of a U.S. recession within the next 12 months at 43%. If you can afford your current home, it may be wise to sit tight rather than take on the financial burden of a more expensive home amid uncertain economic conditions.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Despite the constant talk of tariffs, recession and inflation, many Canadian entrepreneurs are doubling down in investments and sales on their attempt to break big.

A new survey from small business management platform Ownr reveals how 86% of Canadian entrepreneurs financed their business using non-revenue related sources such as personal income and savings, funds from another business they run, as well as loans from financial institutions, the government and family and friends.

"It’s a precarious time for many small business owners in Canada given the evolving macroeconomic environment. Despite this, they are unwavering in their entrepreneurial pursuits by diversifying funding streams to fuel their business growth," Jordan Casey, Ownr CEO, said in a statement.

"In fact, our survey found that nearly three quarters of entrepreneurs would be happy to launch their business all over again if given the chance."

Just over half reported having two or three sources of income, including full-time jobs, part-time jobs and other personal investments.

Working to attract the customer

More than half of surveyed entrepreneurs said additional funding from non-revenue related sources enabled them to move forward with their business growth and expansion plans.

To achieve that growth, the survey revealed an increased focus on customer attraction and retention, driven by a need to differentiate among discretionary spenders. Nearly half of respondents were more likely to explore new products, services and markets (43%) and strengthen existing customer relationships (41%), versus raising prices (35%).

Among their investments, just over a third stated that marketing and sales services generated the most value for their business in 2024. Looking ahead, they want to increase their investment in marketing and sales, including efforts to upskill in this area.

Going it alone

Almost half of Ownr’s survey respondents were solely responsible for the ownership and operation of their businesses. Given their limited time and resources, these respondents felt an outsized gap in their ability to develop a long-term plan and navigate the changing market trends impacting their business, as their capacity was focused on day-to-day operations and staying afloat in the short-term.

That manifests in many ways, including a planning gap. Many solo entrepreneurs stated they had never created a formal business plan (38%), compared to 26% of all entrepreneurs surveyed.

Furthermore, just under four in ten solo entrepreneurs felt confident in their knowledge of the impact of interest rates and macroeconomic trends on their business, compared to half of everyone surveyed.

"Reinforcing the benefit of a business plan, nearly 70% of all entrepreneurs we surveyed who had a business plan were optimistic about their growth in the current economic climate, compared to 48% without a business plan,” Casey said.

Survey methodology

The survey was conducted by RBCx and distributed by Cint and Ownr between Jan. 22 to Feb. 11, captures the responses of 1,004 current or future (within the next year) business owners based in Canada over the age of 18.

This article Many Canadian entrepreneurs are forging ahead despite a worrisome economyoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Scammers are getting bolder — and consumers are paying the price.

In 2024 alone, fraud cost Americans more than $12.5 billion, a staggering 25% increase from the previous year, according to newly released data from the Federal Trade Commission.

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Investment scams were the most costly, accounting for $5.7 billion in losses, a 24% increase from the previous year. In comparison, imposter scams, the second most common type of fraud, cost consumers $2.95 billion.

So, what kinds of investment scams are causing consumers so much, and how can you protect yourself? Here’s what you need to know.

Common investment scams

The Washington State Department of Financial Institutions provides a helpful list of common investment fraud schemes, including:

• Fraudulent promissory notes – Short-term notes offered by fake companies that promise high returns but fail to deliver.
• Ponzi or Pyramid schemes – Existing investors are paid money from new investors, while the actual "assets" being invested in either don’t exist or are worth very little.
• Real estate investment fraud – Scammers convince investors to put money into "hard money loans" or "property flipping" schemes, often misleading them about the risks, potential returns or property values.
• Cryptocurrency scams – Fraudsters create fake coins, heavily promote them and sell them to investors. Once the price rises, they cash out, leaving the coins worthless.

The U.S. Secret Service also warns about "pig butchering" scams, where fraudsters build trust with victims before tricking them into investing in fake cryptocurrency projects.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How can you protect against fraud?

You don’t want to fall victim to these scams, so watch for three key signs of investment fraud:

• Impersonation of a trusted source – Scammers may pretend to be government officials, financial advisers or even friends and family members. If you get an unexpected call from a government agency or familiar contact, hang up, look up the phone number and call the agency or your family member yourself.
• High-pressure tactics and urgency – If you are told you must invest immediately and discouraged from researching the opportunity or consulting others, it’s likely a scam. Legitimate investments don’t require rushed decisions. Always take time to verify information.
• Untraceable payment methods – Be wary if you’re asked to pay using cryptocurrency or wire transfers. Scammers prefer these payment methods because they are hard to trace, making it nearly impossible to recover the lost funds.

As a general rule, avoid investing in:

• Anything you learn about on social media.
• Opportunities you don’t fully understand.
• Offers that rely on aggressive sales tactics.

By staying vigilant, you can avoid losing money and becoming one of the millions targeted by scammers who promise great investments only to disappear with your cash.

What to read next

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Managing money isn’t just about staying on top of what you earn. It’s also about getting all the money you’re entitled to, including refunds.

That includes getting your security deposit back — no questions asked — when you move out of a rental unit.

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That’s sometimes easier said than done, even if your place is pristine on moving day. Maybe your deposit is withheld because you snuck a cat in or overlooked another building bylaw.

Perhaps your property manager arbitrarily decided he didn’t want to return your deposit, even though he’s legally obligated to do so.

It’s a good idea to be proactive to mitigate the risk that your deposit is withheld.

Understand your rights as a renter

Start by brushing up on your tenant rights. Be sure to look up your state’s laws and read your lease agreement thoroughly to understand all terms related to the security deposit.

This includes:

Maximum deposit amounts. Some states limit how much landlords can charge for a security deposit, capping it at one or two months’ rent.

Timeframe for return. Many states require landlords to return security deposits to tenants within 30 days of move-out, though some states give landlords up to 60 days to do so.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Valid reasons for withholding. Landlords can only take a deduction out of your deposit for specific reasons, such as unpaid rent, property damage beyond normal wear and tear or excessive cleaning costs.

How to protect your security deposit

Here are some ways you can be proactive in protecting your security deposit.

1. Document the state of the property when you move in — and when you move out. Take high-resolution photos and videos of walls, floors, ceilings, appliances and fixtures in every room. Ensure the timestamp feature is enabled to prove when the images were taken. These images can serve as evidence in a dispute with your landlord. Some states require landlords to provide tenants with a move-in and move-out inspection checklist, which can further protect you.

2. Maintain open communication with your landlord about maintenance issues. If something needs fixing, notify your landlord promptly in writing and keep records of all correspondence. That way, you can prevent minor problems from escalating into costly repairs that could be deducted from your deposit.

3. Avoid damaging the property, and repair what you’re responsible for. Use furniture pads to prevent scratches on hardwood floors, avoid using nails or adhesive hooks on walls unless permitted and be cautious when moving furniture to avoid dents or chips. If you’re living with roommates, establish ground rules to ensure shared responsibility in maintaining the space, since everyone can be liable for damages.

If you do cause damage, consider fixing it yourself before moving out. Minor repairs are inexpensive and can prevent large deductions from your security deposit. Just get approval from your landlord first. Some may prefer to handle the repairs themselves, and unauthorized fixes could violate your lease.

4. Request a pre-move-out inspection. Many states give tenants the right to request a pre-move-out inspection, during which the landlord identifies any damages that could result in a deduction from the security deposit. This allows tenants the chance to address issues before they vacate.

5. Don’t forget to ask for your security deposit back. It may sound obvious, but make sure you ask for the deposit back. Be sure to put your request in writing and keep a copy.

By taking these steps, you can address problems ahead of time and take your security deposit with you when you move out.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

You’ve spent days researching and you think you’ve finally found the perfect car for you. You’re ready to drive it off the lot and into freedom. There’s just one slight snag: You can’t drive your dream car anywhere because you don’t have auto insurance.

Auto insurance is one of those pesky financial necessities in life. Although most of us don’t enjoy shopping or paying for it, it is a legal requirement if you want to be able to drive that car.

This article is a primer on everything you should know before you choose auto insurance in Canada. We’ll take a look at the different types of coverage available, factors that influence premium costs and the important details you should consider before you buy.

How does car insurance work?

Car insurance works a lot like home insurance, where the premiums you’ll pay to an insurance company are based on the carrier’s estimated annual cost of covering your vehicle.

Premiums are calculated based on several factors. One of them is how much the insurance company believes it will have to pay out in claims in the coming year. You’ll pay your car insurance company premiums on a monthly or annual basis in exchange for taking on your vehicle’s risk.

The insurance company then collects all the premiums from the drivers it protects and places it into one large pool to cover the losses from customers filing for claims throughout the year.

You’re covered for the losses in your car insurance contract only, which means it’s important to review you policy in detail before signing up to make sure you understand the extent of your coverage.

However, car insurance contracts aren’t always the easiest to understand. If you need clarification about your coverage, it’s a good idea to speak with your insurance representative to get a better understanding.

Who needs auto insurance?

Simply put, if you’re a motorist in Canada, you’re required to have auto insurance, and skimping out on it can lead to a major fine. Ontarians caught without auto insurance, for example, are looking at a fine between $5,000 and $50,000 for a single offense, and they could also have their driver’s license suspended and car impounded.

But that’s not all. Anyone found to be driving without valid auto insurance could be considered a high-risk driver, and as a result might face higher auto insurance premiums or be refused auto insurance in the future. If an uninsured driver is involved in a collision and found at fault for an accident causing injury or death, they could be found personally responsible for the injured party’s medical costs and any other losses.

What are the different types of car insurance available?

The minimum level of auto insurance required in Canada varies throughout the country, so it’s important to familiarize yourself with your province or territory’s requirements to ensure compliance.

Third-party liability coverage

The most basic car insurance is third-party liability coverage. This protects you, the driver, against paying for damage you cause to someone’s property. It also protects you if someone else is killed or injured as a result of an at-fault collision committed by you. The minimum coverage varies by province, but at the very least it should cover the medical costs of anyone injured in an accident: Third-party liability coverage is mandatory in Canada.

Collision coverage

In addition to protecting you from third-party liability, collision coverage also covers you if you hit something other than a vehicle, such as an embankment or guardrail. It’s fairly common for this policy to also protect you if you’re involved in an accident with a motorist who isn’t insured. This broader level of coverage typically costs more than liability.

Comprehensive coverage

As its name suggests, comprehensive coverage provides the broadest range of protection. Not only does it usually cover medical and collision-related damages, but it may also protect you in the event of theft and floods. However, this comes at a cost, as comprehensive premiums are usually the highest among the three.

Specified perils and all perils

Two other optional types of auto insurance you might consider signing up for are specified perils and all perils. As its name implies, specified perils coverage protects you against specific damage to your vehicle, like theft or attempted theft, and weather-related damage, such as fire, lightning, windstorms and earthquakes. Meanwhile, all perils coverage combines the protection you receive under collision and comprehensive coverage.

It’s important to weigh the amount of coverage you need with the premium you’ll pay in order to find the auto insurance coverage that’s right for you. A lot of us like to shop for the option with the lowest premium, but as the old saying goes, you get what you pay for. When shopping around, it’s important to also look at the amount of coverage you’ll receive to ensure it’s sufficient. The last thing you want is to end up paying a lot of money out of pocket if you ever need to file a claim.

Is auto insurance different from province to province?

Although auto insurance is mandatory for drivers in all provinces across the country, there are key differences depending on where you reside, including the rates that are available to you.

For years, Ontario has consistently had the highest auto insurance rates in the country. Although it’s hard to pinpoint the exact reason why, reports have cited insurance fraud and auto theft as the main reasons. Meanwhile, Quebec has consistently had among the lowest auto insurance rates in the country over the years.

In most provinces, your only choice is to get auto insurance from private companies. That being said, there are some provinces that offer private and public auto insurance coverage, such as B.C., Manitoba and Saskatchewan, plus the option of extra coverage from private companies.

However, Quebec falls into its own category, as public insurance protects you in the event of injuries or death, while private companies protect you for property damage.

What factors influence the cost of auto insurance?

If you’re anything like me, you may have a tendency to complain that your auto insurance premiums are too high. But your premium might make more sense if you understand how it’s calculated. Insurance companies set its prices based on a number of factors, including:

Vehicle make, model and production year

Your vehicle’s make, model and production year has major bearing in premium costs. For example, sports cars are typically more expensive to insure compared to sedans. This boils down to two factors: Sports cars not only tend to have a higher retail price, but they’re also more likely to be involved in a collision.

Driving history

Your driving history is another big factor. If you’ve never received as much as a speeding ticket, you could save thousands of dollars in auto insurance premiums compared to someone who has several speeding tickets and has been involved in collisions.

Demerit points

Incurring demerit points for driving infractions, such as dooring a cyclist or speeding, can impact the auto insurance premiums you’ll pay, as well. Demerit points won’t affect your premium immediately, but they will when the policy comes up for renewal, as long as your insurance company checks your driving record.

Place of residence

A lot of motorists aren’t aware that where you live can have a big impact on their auto insurance premiums. Some neighbourhoods have a history of filing more claims than others. If your area has a lot of break-ins and collisions, be prepared to pay for it.

Age and gender

Two more factors that influence car insurance premiums are the driver’s age and gender. Insurance is one of the few industries where companies can legally discriminate based on age and gender in pricing. All things considered, you’ll generally pay less for auto insurance the older you are—at least until you hit your golden years, when you’ll be forced to fork over more for premiums. Men generally pay higher auto insurance premiums than women, as they are known for exhibiting riskier driving behaviour.

How can drivers minimize what they pay in auto insurance?

Who isn’t looking to pay less for your auto insurance? Here are some simple ways to cut down on what you pay and free up room in your monthly budget for savings or investing.

Bundle and save

Are you a homeowner? By bundling your home insurance with your auto insurance (using the same insurance company) you can expect to receive a discount. Typical discounts range between 5% and 25% on the overall cost of both insurance products.

Raise your deductible

Your deductible is the amount that you’re required to pay out of pocket before your insurance company will chip in in the event of a claim. By choosing a higher deductible, you could save a substantial amount on your monthly premiums. Typical deductions range from $500 to $5,000 — the higher the deductible the cheaper your insurance premiums. Just be sure that the deductible you select is manageable, should you need to make a claim. Inquire with your insurance company and check out the deductible options that are offered.

Shop around and save

Many of us have our car insurance on auto pilot; we’re too busy to allocate time toward shopping around and simply renew with our existing insurance company. While that may be convenient, it’s not necessarily cost effective. By shopping around, you’ll have the peace of mind that you’re getting a good rate and adequate coverage.

How to get insurance for a car in Canada

You can buy auto insurance from a licensed insurance broker, which is someone who offers insurance from a number of different insurance providers. The broker will research the market for you to find the carrier with the coverage you’re looking for at the best rate.

Another choice is to use an insurance agent. They typically represent a single insurance company, so it might still be a good idea to do your own additional research into possible alternatives to what the agent suggests. Similar to insurance agents are direct writers, who work for carriers that sell directly to consumers.

A third choice is to shop online on your own behalf. The upside to this option is that you feel like you’re in the driver’s seat. The downside is that insurance can be complicated, so you’ll probably want to speak to a human being at some point.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.