Even though the 2024 holiday season is still a few weeks away, plenty of us have already begun our shopping. Since estimates suggest that we’ll spend around 3% more than we did in 2023, you’ll want to check out our story on planning a gift budget before you hit the stores or surf the Web. Gift shopping may be the only major economic activity many of us choose for the rest of the year, as interest rates seem to be stuck in place for the time being, and early voting has just begun for the November presential election.
Home Financing
The Fed Cut Rates. What the #$%^! Is Going On?
Ever since Federal Reserve Chair Jerome Powell announced a half-point reduction to the central bank rate, it’s been a frustrating month. Many believed that mortgage rates would begin to fall after the Fed’s rate cut, especially because September’s inflation numbers were at 2.4%—close to the 2% inflation rate that the Fed was working towards.
Even the respondents of a recent Fannie Mae sentiment survey were feeling positive about rates, with the percentage of respondents who expected rates to go down the highest since 2021.
So, what’s going on? The answer: plenty.
Here are some reasons why mortgage rates aren’t headed south.
Economic reports released earlier this week were considerably stronger than expected.
- Unemployment claims dropped to 241,000 for the week. Both last week’s level and this week’s forecasts were 260,000.
- The Philly Fed Business Outlook Survey came in at 10.3 versus a median forecast of 3.0 and a previous reading of 1.7. (This is a monthly survey of manufacturing conditions in the Third Federal Reserve District and is used to provide a short-term forecast.)
- Retail Sales rose 0.4% versus a 0.3% forecast and 0.1% in the last report.
Add the general nervousness that comes into play in the weeks before a presidential election, and we’re stuck with a stagnant market that won’t drop any hints as to where rates are headed until more economic data becomes available.
Source: mortgagenewsdaily.com
Insurance
Buy The Right Travel Insurance for Your Needs
If you’re planning to travel soon, you’re not alone…the numbers of people packing for a vacation has risen by 8% since 2023. However, the rising prices of vacations have also risen by around 35% since last year, which has resulted in an uptick in the purchase of travel insurance.
While claims have risen, denials have jumped about over 30%. Here are the most common reasons a claim is denied:
1. Pre-existing conditions. Some policies do not cover chronic physical and mental health conditions.
2. Coverage was purchased too late. This may cause a claim denial if weather conditions caused a cancellation of a flight or cruise, but the insurance was purchased after the conditions were officially forecast.
3. The disruption cause isn’t covered. The only protection from this? Read the small print and ask for a second opinion if you’re not 100% sure.
4. No medical records/documentation were provided with the claim. You may want to discuss your claim’s required paperwork with the insurance provider before filing.
Source: propertycasualty360.com
In the News
How To Get a Salary Raise in 2025
Even though inflation is waning, plenty of us would welcome a bigger paycheck. If you’re working remotely and researching your approach, here are some facts to consider.
A new report from HR firm Robert Half found that the best way to negotiate a salary boost is to offer to put on your work clothes and return to the office. Two-thirds of managers who responded to the Robert Half survey said they would be willing to raise salaries.
The potential pay bumps aren’t insignificant, either: 59% say they’ll offer employees up to a 20% salary increase to be onsite four to five days a week.
If you’re unhappy with the prospect of returning to a workweek with hours of commuting, but need to increase your income, you may want to do the math to see if a salary raise would be sufficient incentive. Returning to the office may incur as much as $5,000 in additional costs each year because of driving-related expenses. There are other potential costs as well, such as upgrading wardrobes for the office environment and spending more on lunches.
If you’re currently working 100% remotely and can’t stand the thought of daily commuting, offering to go hybrid and visit the office two to three days a week may also earn you a raise. Taking courses to increase your existing skills, or adding new ones, can also pay off.
Source: money.com
Credit and Consumer Finance
How to Pay for Holiday Shopping This Year…Not Next Year
Even though Black Friday is a few weeks away, the holiday shopping season has already unofficially arrived. Many bargain hunters shop for gifts during Amazon Prime’s Big Deal Days in early October, and other retailers often join in with early sales. However, a longer shopping season doesn’t remove the risk of overspending and debt.
Nearly three in 10 Americans who used credit cards to pay for holiday gifts last year still haven’t paid off their balances.
However, some advance planning and research are all that’s required to ensure you don’t spend more on this year’s gifts than you can afford.
Use earmarked funds
Parking your gift budget in a special savings account (or envelope, if you prefer) reduces the risk of going into debt. You’ll have funds ready when it comes time to shop, so you’ll be able to choose individual gifts without coming up short before you’re done.
Make a holiday budget, not a gift budget
Calculate a realistic holiday budget based on your monthly income, shopping fund (if you have one) and how much you expect to spend on other expenses during the holidays.
Create a flexible shopping list
Be sure to set a per-person spending limit for everyone on your list and keep track of spending as you buy each gift. If you come in below budget on one person, you can use the extra money to spend more on someone else…if they deserve a nicer gift, of course.
Miscellaneous gift hacks
Don’t be embarrassed to talk about pooling your gift budget funds with others. For example, you can discuss buying a single, more expensive gift for a parent with your siblings.
Spreading purchases throughout the holiday shopping season can make costs more manageable. Pull up your shopping list before checking out sales and limit your search to those items.
Take the time to find the best prices. This is almost always easier online, especially with price tracker extensions like Karma and Capital One Shopping (some trackers even work within major retail sites like Amazon).
Source: nerdwallet.com
Did You Know?
Check Out These Free Banking Services
If you only visit your bank to manage your checking or savings account, take a few minutes to ask about the additional services you can enjoy free of charge. Almost all banks offer the following to all of their customers (with the exception of the junior savers):
Financial planning. If you’re not a numbers person, want to begin investing, or haven’t had the time to consider your long-term money plans, ask about financial planning services. While there may be a charge to open a new account if it’s recommended, professional advice is usually offered free of charge.
Notary services. We rarely think about a notary until we need one, and you may need one to help finalize a loan, a vehicle sale, power of attorney or a deed transfer. When that day comes, you should call your bank. Most have at least one person on their staff who is a certified notary.
Currency exchanges. Traveling overseas soon? You may want to get ready ahead of time and exchange some currency. Otherwise, you may be stuck standing in a long line in an airport or bank and paying a high rate to exchange some dollars. Your bank should be one of the cheapest places to exchange currencies, and some will even do it for free.
Source: lifehacker.com
