Latest news with #Bankrate
Yahoo
8 hours ago
- Business
- Yahoo
New lawsuits accuse insurance companies of secret scheme to drive up prices for homeowners: 'Conspiracy and collusion'
Two lawsuits filed in Los Angeles say insurance companies colluded to force homeowners in high-risk wildfire areas onto California's FAIR insurance plans. According to the Associated Press, the lawsuits want to hold 25 major insurance companies responsible for the "illegal scheme" that has limited coverage for homeowners. The filings say their practices are "in violation of California's unfair competition and antitrust laws." The lawsuits allege that the insurance companies, including State Farm, worked together in 2023 to deny high-risk policies, making the FAIR Plan many homeowners' only option. The FAIR Plan is California's insurer of last resort. It's a program that gives high-risk homeowners access to insurance policies if they're denied through traditional avenues. These high-premium policies offer basic and limited coverage capped at $3 million. These policies are not enough to cover damage caused by severe disasters. And disaster struck in January, with extreme wildfires that destroyed almost 17,000 structures. Countless homeowners were left underinsured on the FAIR Plan. Many people can't get a traditional policy because the insurance companies don't want to be financially responsible for these natural disasters. Wildfires, droughts, floods, and other extreme weather events are becoming more frequent. By denying coverage in areas prone to climate instability, they're prioritizing profits. Furthermore, over $500 billion of U.S. insurance companies' investments are in the oil and gas industry, per the Center for International Environmental Law. Burning oil and gas creates harmful emissions that destabilize climate conditions. This leads to extreme weather events that destroy homes and leave people in financial ruin. Michael J. Bidart, who represents the homeowners, said in a statement, per AP: The insurance companies "have reaped the benefits of high premiums while depriving homeowners of coverage that they were ready, willing, and able to purchase to ensure that they could recover after a disaster like January's wildfires." Insurance companies are denying coverage to boost profits while making money off the very practices that are causing climate instability. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. Bankrate advises homeowners to save claims for major losses, check dwelling coverage, and be proactive about caring for their property. But people are hopeful these lawsuits will help reinstate fair premiums and policies. According to Bankrate, Stephen G. Larson, another lawyer representing the homeowners, said: "California's antitrust and unfair competition laws exist to address the very kind of conspiracy and collusion that the complaints allege the defendants engaged in." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
19 hours ago
- Business
- Yahoo
Survey: More than two-thirds of Americans aren't reviewing their budgets. Here's why you should and how you can save more
Budgeting is the financial equivalent of eating your vegetables. It may seem unpleasant, even grueling, but it's ultimately good for your financial health. Budgeting is also unpopular. Bankrate's latest Money and Mental Health Survey shows that less than one-third (29 percent) of Americans reviewed their budget during a 30-day period between mid-February and mid-March. 'Few people like tracking their spending, and itemizing every dollar spent can be tedious and (time-consuming),' says Stephen Kates, CFP, financial analyst at Bankrate. When it comes to using a system to budget, Kates suggests that the simpler, the better. Here's why making a simple budget, and reviewing it, is worth your time. And here's how to develop one that will work for your financial needs. Bankrate's Money and Mental Health Survey found that Americans with higher levels of education were more likely to have reviewed their budgets. Nearly four in 10 post-graduates (38 percent) and people with a four-year college degree (38 percent) said they reviewed their budget in the 30 days prior to Bankrate's survey, which was conducted in mid-March. This percentage was lower for those with some college or a two-year degree (30 percent). Respondents who have, at best, a high school degree (23 percent), was the group that budgeted the least. Although budgeting is the act of tracking how much money you have, there's also the unpopular task of tracking your spending. According to Bankrate's survey, about one-third of survey respondents (34 percent) tracked their spending between mid-February and mid-March. Saving money doesn't just happen, says Lauren Zangardi Haynes, CFP, CIMA at Spark Financial Advisors. 'Most people do better managing their spending if they don't see a lot of money in their bank account. In other words, if your plan is to transfer what's left in your checking account at the end of the month to savings, you're setting yourself up for failure,' Zangardi Haynes says. Budgeting helps you determine precisely how much you should be saving each month so you can save more. Knowing what you're spending your money on, and how you're spending it, can help you determine how much you need to save to achieve your financial goals. The lesson here: Pay yourself first and pocket it in your savings account. Budgeting need not be a daunting task. It comes down to three things: Directing your direct deposits into different accounts Identify spending limits Being aware of your spending and savings habits Budgeting helps you plan where you want your money to go ahead of time. This helps you to spend your money intentionally, whether it's for helping you get closer to achieving your financial goals or putting your money towards purchasing future goods and services that you value. Zangardi Haynes says one of the underrated benefits of budgeting is the way it can help you shift the way you view yourself. She says frequently when people are focused on budgeting they focus on what they're doing wrong. 'When you build savings into your budget or spending plan, you can start to shift the way you think of yourself from a spender, or someone who doesn't manage money well, to someone who is responsible with money and capable of creating financial security for themselves,' Zangardi Haynes says. On the other hand, not budgeting is akin to getting in your car and just driving to a new place without directions, with the hope of getting to your destination in a new place. Bankrate insight Three great reasons to budget: It can show you where your money will be spent. It can help you change your spending habits. An efficient budget will help you pay yourself first so that you're saving before spending money. Budgeting is a financial activity more people should be doing, Kates says. 'Structure your income and spending in such a way where you understand where the money's going, which is essential, but you don't have to do every little dollar and cents transaction on what you bought for coffee this morning,' Kates says. Creating a simple budget takes just three steps: Determine your income. Make a list of your expenses. Don't forget those recurring monthly debits in your expenses. Set your goal to have cash remaining after subtracting your expenses from your income. This way, you know how much money can be saved and how much money should be applied to other financial goals. Once you determine your budget, consider automating your savings to help you save more – because, for many, it's easy to forget to save. Also, using a budgeting app can automatically aggregate your spending all in one place so you can see where your money is going when the expenses post to your credit card or bank account. Reviewing and following your budget is likely to increase your chances of achieving your financial goals. The unemployment rate in the U.S. held at a relatively low 4.2 percent in May, according to the Bureau of Labor Statistics. Those who are employed should have, or be adding to, an emergency fund that contains three to six months' worth of expenses. You need to start somewhere, so start by budgeting for a small amount from your paycheck to automatically go into a high-yield savings account and the rest into your checking account. This is called split-direct deposit – and it's a great way to start or add to an emergency fund, automatically. Sticking with this plan, and not withdrawing that money, will enable your emergency savings to grow. And in the current interest rate environment, it's easy to find a competitive online-only bank offering a yield that's outpacing inflation. Just make sure the bank is a Federal Deposit Insurance Corp. (FDIC) bank, so you know your money is protected in case of a bank failure, as long as your deposits are within FDIC limits and guidelines. But an emergency fund isn't only meant to replace income due to being unemployed. It also helps you when something you own inevitably breaks or needs to be repaired, such as an automobile or home appliance. Bankrate tip In addition to depositing your emergency savings in a high-yield savings account, consider a federally insured money market account, which combines the features of savings and checking accounts, offering competitive interest rates with greater flexibility than traditional savings accounts. You can't go back in time to your youth to build a big retirement nest egg, but that shouldn't discourage you from starting one now, even if you're a few years away from retirement. Every little bit helps. Budgeting can also help you to stretch your retirement savings, even if you're already retired. While younger people have time on their side for their money to grow, eligible workers ages 50 or older have some perks that their younger counterparts don't. One such perk is how much they can contribute to their retirement plans. This year, those ages 50 and older are able to contribute up to $31,000 to a 401(k), 403(b), 457 or a salary reduction simplified employee pension, or SARSEP, plan. (Eligible people under 50 are limited to $23,500.) And those between the ages of 60-63 are able to contribute an additional $11,250 to the $31,000 cap. Younger workers might have more competing priorities and financial goals, especially if they're earning less. At the very least, try to contribute up to your employer's retirement plan contribution match, especially if you're fortunate enough to work for an employer that does this. Splitting your direct deposit into different savings accounts can help you save for different goals, provided that your employer allows this. For instance, some people might want to have a high-yield savings account for an emergency fund and then another high-yield savings account to save for a new car. Bankrate tools When it comes to your savings goals, don't get stuck doing the math. Use Bankrate's Savings Goal Calculator to help you determine how much you need to help you get closer to achieving your money goals. Reviewing your budget is an important part of maintaining your financial health. Automating your savings and knowing where your money's going can help you get closer to achieving your financial goals. The alternative can prevent you from making improvements to your financial health. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,363 U.S. adults, of whom 1,046 have money concerns that impact their mental health while 1,317 do not. Fieldwork was undertaken between March 19th-21st, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
Yahoo
a day ago
- Business
- Yahoo
How to save $1,000 in a month: 10 strategies
Saving $1,000 in one month may be a lofty goal, but with some extra work and a few changes, it's possible. You might be choosing to save $1,000 to kickstart an emergency fund, to fund a certificate of deposit (CD), to pay for an upcoming vacation or event or to complete step one of Dave Ramsey's 7 Baby Steps. Whatever you're reasoning is, here are some strategies to help you achieve your goal: If you haven't already, it's important to create a budget and track every expense, whether that's in a traditional spreadsheet or through a personal finance app that automatically tracks them for you. Look back at the last several months to determine what you typically bring in (your income) and what your expenses are on average. Bankrate tip Ready to set forth on your savings goals? Let Bankrate help you crunch your numbers with its Savings Goals Calculator. Once you create a budget, you have a clear view of all of your monthly which recurring costs you can cancel, if anything. Some companies may allow you to temporarily pause a subscription as well. Consider canceling what's not essential to help boost your savings. You can always check out a free trial, when offered, to a subscription or see if a gym offers a free pass for new your monthly essential bills. Shop around to see if you can get a better deal on your home internet, cell phone bill or car insurance. Call and try to negotiate a lower monthly bill. Ask about any available discounts or other ways to reduce your bill. Learn more: How to make a zero-based budget Unless you're going to make a big move such as moving to a new place with lower rent or selling your car, these costs are pretty set in stone. But what you pay for in categories such as groceries, dining out and entertainment can be a massive swing. If you're looking to save up $1,000 in one month, you can make some adjustments to lower your costs. Sign up for store loyalty programs, use coupons and use cashback apps, such as Ibotta for extra savings (and be sure to review the terms and conditions for such programs and apps). Consider purchasing generic/store brands, items that are on sale and the best per ounce value. Skip convenience items, such as pre-chopped vegetables, and swap in-season produce which often costs less. Set a budget. If you're trying to hit a specific goal in one month, you may want to avoid or limit take-out or dining out since it is typically more expensive compared to cooking your own meals. Do your homework by researching less expensive restaurants and restaurants that offer coupons, discounts or deals. If you're dining with children, look for restaurants where kids eat free. Check out a restaurant's website, app and social media pages, where you may find coupons, deals for signing up for text or email alerts or various specials and promotions. Search your area for free things to do. Nearby colleges may have free concerts or speakers. Your local library has plenty of books to borrow at no cost and possibly other items, such as movies or yard games. When getting together with friends, consider hosting a pot luck or game night at home. Focus on free hobbies, such as taking a scenic walk or hike, exercising, reading a book, cooking, biking and craft projects you already own. If you needed some inspiration to help you save, how about getting paid to do so? For example, Iif you're in the market for a new checking account or savings account, consider if one that's currently offering a sign-up bonus is right for you. Choosing to keep your savings in a high-yield savings account with a competitive annual percentage yield (APY) means your money will earn more interest. While typically a lower APY, there are even checking accounts that pay interest as well. If you can lock up your money for a set term, consider a CD as well. Just keep in mind, unlike a savings account, a CD comes with an early withdrawal penalty if you need the money before the end of the term when your CD matures. Bankrate insight Planning for retirement sooner than later? If your employer offers a 401(k) match program, you can get free money just for adding to your retirement savings. Shopping smart isn't just about searching for the best deals. It's about maximizing the value of your dollars spent. Some ways you can do this include: Consider a no-spend challenge as you are trying to reach your $1,000 goal. Don't shop out of boredom or for entertainment. Focus on saving instead of spending. Take some time before you make a purchase. Some people choose to leave an item in the cart for 24 hours before they go back online to make their purchase. Compare prices at different stores. Use cash back apps or a cash-back debit card. Take advantage of loyalty programs. Buy in bulk, especially non-perishable items. Use digital coupons, through apps such as RetailMeNot or Honey. Shop second-hand when possible. That old camera or those jeans you've never worn can be turned into cash. By decluttering, you're not only tidying up, but also giving your savings a boost. Consider using an online marketplace, such as eBay or Poshmark, to sell everything from clothing to electronics. You can even sell unused gift cards. When you treat savings as an essential bill, it ensures that you're consistently stashing away a set amount of money. You can do this by having a portion of your account balance or paycheck automatically deducted and transferred into a savings account each month. Automated savings features may be available through your online banking system or a third-party savings app. Seeking out additional income doesn't necessarily mean you need a second job, though that's an option. Consider an opportunity such as freelancing, whereby you offer services in something you're skilled in. You could also take on as-needed work through the gig economy, such as by delivering food or doing tasks on TaskRabbit. When you break it down step by step, saving $1,000 becomes a more attainable goal. Whether you're saving for a specific event or just want to bolster your financial security, taking on a few different strategies can help get you there faster than you might think. Make sure you're storing your savings in an interest-bearing account with a high-yielding APY, such as a money market account or high-yield savings account, and understand how you can avoid paying unnecessary fees on the account. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Home equity news: Home prices hit another record while HELOC rates fall
HELOCs drop, home equity loans barely budge After rising for the past few weeks, HELOCs dropped to 8.14 percent, still holding close to their lowest level in two years. Meanwhile, the average $30,000 home equity loan inched a tick up to 8.24 percent, according to Bankrate's national survey of lenders. …while mortgage rates stay below 7% The national average for 30-year fixed-rate mortgage inched lower in the most recent week to 6.94 percent, according to Bankrate's latest lender survey. Think your home equity credit line is safe? Think again. Not only is HELOC fraud on the rise, but it's also sneaky and could drain your savings before you even notice. Find out how scammers can steal your money and the simple steps you can take to protect your hard-earned home equity funds. Find out: How to protect yourself from HELOC fraud Fears about an economic downturn might have you thinking about putting homeownership plans on pause. But experts say if you're financially ready and plan to stay put for a few years, it could actually cost you more to wait. Here's why it might make more sense to buy a home now instead of later. Read more: Why recession fears shouldn't derail your homebuying plans Single women buy homes in greater numbers than single men. Yet they derive less wealth from their home, the most significant asset many Americans have. From higher prices to lower sale returns and wage gaps to tougher negotiations, the housing market still stacks the deck unevenly for women. What can be done to even the playing field? Learn more: The housing gender gap Home prices keep climbing to new heights: The latest Case-Shiller index shows a 3.4 percent annual rise in March. But the growth is slowing and has in fact been dropping in the two previous months. Which cities have the hottest and coldest housing markets? Read more: Case-Shiller Index: Home prices push higher, but they're cooling off No doubt about it, it's a frustrating time to be a homebuyer: While home prices keep rising and mortgage payments have doubled since 2020, new homes are the smallest they've been in about a decade. However, experts say holding out for a bigger, 'forever' home might not be the best strategy. Learn why: Bigger isn't always better for homebuyers facing rising costs Have you ever shopped for a HELOC or home equity loan and wondered how the rate you're offered is actually set? It's not just your lender calling the shots. The Federal Reserve's monetary moves, along with your credit profile and home's value also play a significant role. Find out : How are home equity loan rates determined? $13 trillion Mortgage debt, including home equity loans, accounted for $13.09 trillion in consumer debt as of March 2025, a 74 % share of total debt. Source: Equifax Technically, these stories were released in the previous weeks, but they're still worth highlighting. Real estate not only holds value, but it also tends to appreciate over time. For many families, homeownership is often their first, and sometimes their only chance, to build real wealth they can pass down. Here's why having a home can be so important — not just for now, but for the future. Learn more: How a home builds generational wealth Origination fees, appraisal reports and credit report fees are some of the closing costs you may have to pay when taking out a home equity loan or a HELOC. The good news? Overall closing costs are often less than what you would pay with a primary mortgage — and some of them are even negotiable. Read on: How much are home equity loan closing costs in 2025?
New York Times
a day ago
- Business
- New York Times
Is It Cheaper, or More Expensive, to Travel Now? Both, It Turns Out.
Airfares are down, so it's a good time to travel. But the dollar is down, too, so it's not a good time to go abroad. Can both be right? Much depends on your budget for discretionary spending, but the volatile American economy is having a whiplash effect on travel planning. In a recent survey, the financial website Bankrate found that fewer than half of respondents planned to travel this summer. Of those not traveling, 65 percent said they couldn't afford it. According to an analysis of its credit card data, Bank of America found airline and lodging spending was weaker so far in 2025 compared with the past few years. Politics, too, may influence travel patterns. Rob Stern, a travel adviser in Raleigh, N.C., who runs the company Rob Plans Your Trip, noted a rise in interest in Alaska and Hawaii, domestic destinations he considers 'emotional comfort' places. 'The fact that I don't have any Europe travelers this summer right now and no inquiries for Europe tells me it's going to be a different kind of year,' Mr. Stern said. Want all of The Times? Subscribe.
