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In a study of people in the process of divorce, a surprisingly high share of respondents said parting with their spouse led them to do better at work.
“There is a societal assumption that divorce is always negative,” said Connie Wanberg, a professor at the University of Minnesota. But, she said, “some of these individuals had been in very dysfunctional relationships.”

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Getting divorced is often considered one of the most stressful life events. But, for some people, there could be an unintended positive outcome to splitting up: A boost in their work performance.
In a study of people in the process of divorce, which is online in advance of publication in the scientific journal Personnel Psychology, nearly 39% of respondents said parting with their spouse positively affected their work. Around 44% of respondents, meanwhile, said divorce had a negative impact on their career.

The fact that more than a third of people found divorce led them to perform better at their jobs came as a surprise to study co-author Connie Wanberg, a professor at the University of Minnesota who researches people’s experiences in the workplace.
“There is a societal assumption that divorce is always negative,” Wanberg said. But, she said, “some of these individuals had been in very dysfunctional relationships, and getting away from that relationship allowed them to have a new outlook on life. Some people decided to renew their focus on work and focus on advancement.”
In 2021, there were close to 690,000 divorces or annulments in the U.S., according to the Centers for Disease Control and Prevention. Over a third of Americans between the ages of 25 and 65 have divorced or are currently in the process of divorcing, according to the study by Wanberg and her co-authors.
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Relationship struggles ‘took away from work’

Specifically, the respondents who reported positive impacts at work said that after going their own way from their partner they were more engaged at their jobs and more satisfied with their own performance.

One person in the study said, “Prior to the divorce, I spent a lot of time and energy trying to maintain and fix the relationship and that took away from work.”
“Due to the pressure being gone from the degrading relationship, I’ve been able to have a clear mind for work,” another respondent said.
Carolyn McClanahan, a certified financial planner and the founder of Life Planning Partners in Jacksonville, Florida, said she wasn’t surprised by the study’s results. She’s had clients who were in a much better state of mind following a divorce.
“People in unhealthy relationships often have unhealthy behaviors to help them deal with the relationship issues,” said McClanahan, who is also a member of the CNBC Advisor Council. “Workplace performance might definitely suffer.”

Divorce involves many unpleasant experiences and stressful steps, Wanberg said.
“You have to move or navigate division of belongings,” she said. “You have to tell friends and family. You have to visit a lawyer, sometimes multiple times. These can all impact your feelings at work.”
But for some people, these difficulties, Wanberg said, “are overweighed by the benefits of getting away from a bad relationship.”

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Interest rates are poised to continue to go up in 2023, while inflation is starting to subside.
That is a winning combination for savers, who may get higher returns on their cash while also seeing their buying power increase.
If you’re wondering where to put your cash now, here’s what to know about your choices.

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As interest rates go up, 2023 is shaping up to be a good time for savers who stand to earn more money on their cash.
The Federal Reserve last week added a 0.25 percentage point rate increase in the latest in a string of rate hikes to combat record high inflation.

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As the unemployment rate hit a 53-year low in the latest jobs report, the interest rate increases are expected to keep coming. The next increase may come in March, according to Greg McBride, chief financial analyst at Bankrate.com.
“The benefit to savers isn’t just the fact that rates are rising,” McBride said. “Your biggest win in 2023 is going to come from inflation coming down.”
As high prices subside, the after-inflation return on cash is poised to get a lot better this year than it has been for savers in the past couple of years, he said.
When it comes to deciding where to put their money, savers have several options.

Online savings rates reach 15-year high

Primis Bank’s online savings account last week became the first to top 5% in recent years, with a 5.03% annual percentage yield.

“It’s been exactly 15 years since we’ve seen 5% on a savings account,” dating back to February 2008, McBride said.
As interest rates rise, more savings accounts will reach — and surpass — that 5% mark in the next couple of months, McBride predicts.
“Every day we see the bar being raised and more banks increasing their pay outs,” McBride said.

If you already have an online savings account, it pays to be vigilant and check the annual percentage yield, or APY, you are currently receiving.
Online savings accounts tend to pay the highest rates, with rates like 4% or 4.5% becoming more common. However, the national average at brick-and-mortar accounts is 0.33%. Legacy online savings or money market accounts may be locked into lower rates even as the same institution raises rates on newer accounts.
The solution may be to just move your money into a newer account, McBride said.
Because online savings accounts tend to offer more flexibility to access your cash, they are a great place to put money you may need for emergencies.

‘Now is the time’ to lock in longer-term CDs

Interest rates on multi-year certificates of deposit have climbed as high as around 4.5%, but likely won’t go up much further, according to McBride.
“If you’ve been biding your time waiting to lock in one of the longer-term CDs — three-year, four-year, five-year CD — now is the time to make that move,” McBride said.
Because some experts expecting interest rates to decline in 2024, there is an advantage now with longer-term CDs, noted Ken Tumin, senior industry analyst at LendingTree and founder of DepositAccounts.com.
“If rates do fall, now is the time to lock them in,” Tumin said.
One-year and two-year CDs are offering interest rates in the upper 4% range — from 4.6% to 4.85% — and will likely hit 5%, according to McBride.
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Capital One recently became the first major online bank to offer 5% on an 11-month CD, Tumin noted.
Six-month CDs are offering rates comparable to liquid savings accounts, McBride said. However, with CDs, the rate of return is guaranteed, unlike savings accounts.
“A lot of retirees rely on CDs for interest income, and you’re finding the best yields that you’ve seen in 15 years,” McBride said.
CDs are also ideal if you have a specific future cash need, like a wedding that is a year away or tuition payments due at the same time each year, and the offers match your timetable, McBride said.
Of note, CDs require you to lock up your cash for a specified time period, and you will likely face penalties if you withdraw the money sooner.

Series I bonds have ‘become a better deal’

Series I bonds are accrual type savings bonds tied to inflation that are issued by the government.
The current interest rate for Series I bonds is 6.89% through April 30 on new purchases, which is notably lower than the 9.62% rate offered last year.
Despite that higher rate, the fixed portion of the return last year was zero, McBride noted. Now, however, the fixed portion is currently 0.4%, and stays the same after buying. (The variable portion of the rate changes every six months based on inflation.)
“I bonds have actually become a better deal even though the headline rate has come down because you’ve got the ability to grow your buying power,” McBride said.

A packet of U.S. five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015.
Gary Cameron | Reuters

I bonds do come with restrictions that make them less flexible than other options for your cash.
For starters, there’s generally a limit of $10,000 per person per year on I bond purchases. (You can buy an additional $5,000 in paper I bonds with your tax refund.)
You have to keep the money in the I bond for at least a year. If you cash in the I bond in the first five years, you will lose three months’ interest, McBride said.
Consequently, I bonds may not be the best place for your emergency savings. However, they can be a form of tax-deferred savings you hold onto for years or a supplement to your broader portfolio, McBride said.

Money markets, Treasuries also worth noting

Money market funds, which are paying near 4%, are also a “great place to park your money” in your brokerage account, McBride noted.
Vanguard’s federal money market fund is currently offering a 4.4% rate, Tumin noted.
While money market funds tend to be very liquid, they do not offer the same FDIC (Federal Deposit Insurance Corporation) protection as savings accounts, Tumin noted.
Additionally, Treasuries are paying yields that haven’t been seen in many years, with short-term treasuries yielding around 4.5%, McBride said. That may be an attractive option if you’re looking to add to your fixed-income exposure, he noted.
Because Treasuries are generally exempt from state and local tax, they may add to the after-tax performance on your money, Tumin noted. However, these investments typically are not as liquid as savings accounts.

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Smart Tax Planning

If you’re trying to max out the yearly purchase limit for Series I bonds, you can buy an extra $5,000 paper I bonds with your tax refund.
While I bonds are currently paying 6.89% annual interest through April, the rate may decline in May as inflation eases, making alternatives more attractive.

Jetcityimage | Istock | Getty Images

If you’re trying to max out the yearly purchase limit for Series I bonds, your tax refund offers an opportunity to buy even more.
However, you should consider your goals and weigh alternatives first, experts say.

An inflation-protected and nearly risk-free investment, I bonds are currently paying 6.89% annual interest on new purchases made through April 2023, the third-highest rate since they were introduced in 1998.
While the annual purchase limit is generally $10,000 per person for electronic I bonds, you can buy another $5,000 in paper I bonds with your tax refund.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

Buying paper I bonds with your tax refund may make sense if you’re eager to purchase as much as possible, said Ken Tumin, senior industry analyst at LendingTree and founder of DepositAccounts.com, a website that tracks I bonds, among other assets.
There are two parts to I bond interest: a fixed rate, which may change every six months for new purchases but stays the same after the bonds are bought, and a variable rate, which changes every six months based on inflation. TreasuryDirect announces new rates every May and November.

Treasuries, high-yield savings are smart alternatives

As the Federal Reserve continues to raise the target federal funds rate, other assets have become more attractive, experts say. 
“No one should buy I bonds with their tax refund” unless the purchase is part of a long-term strategy to lock in the current 0.4% fixed rate above inflation, said Jeremy Keil, a certified financial planner with Keil Financial Partners in Milwaukee.
For shorter-term goals, Keil points to assets such as Treasurys, high-yield savings accounts or certificates of deposit, with rates that have crept up over the past year.

Right now it’s really easy to get over 4% from an online savings account.

Founder and editor of DepositAccounts.com

“Right now it’s really easy to get over 4% from an online savings account,” said Tumin, noting that rates are the “highest in more than a decade.” 
He said shorter-term CDs are paying higher rates than longer-term CDs because many institutions are expecting the Fed to start cutting rates in a year or so.

Downsides of paper I bonds

Keil said it’s also important to consider the downsides of purchasing paper I bonds tied to your tax return.
“You don’t have much control over the timing of the paper I bonds purchase, so don’t expect to get the current 6.89% rate unless you file your return well before the deadline,” he said.
What’s more, paper I bonds must be converted to electronic form before redemption. “It’s a long process,” he said. “It’s not liquid at all.” More

The New Road to Retirement

Fewer Americans feel confident about their financial well-being and retirement plans amid persistent high inflation and market volatility.
Even high net worth individuals say their savings won’t cut it anymore, according to a report from Natixis Investment Managers.

Why $1 million may not feel like enough

The 4% rule is a popular guideline for retirees to determine how much money they can live on each year without fear of running out later. It suggests that retirees can safely withdraw 4% of their investments (adjusted for inflation) each year in retirement.
“A million may seem like a lot, but many people are surprised when they do the math and realize that 4% of $1 million is only $40,000 yearly,” said Dave Goodsell, executive director of the Natixis Center for Investor Insight. “This is usually quite a bit less than these individuals are likely used to living on.”

Given current market expectations, the 4% rule “may no longer be feasible,” researchers at Morningstar wrote in a recent paper.
“A lot of the rules of thumb we’ve been using are outdated,” Goodsell said. 

‘The name of the game is preservation’

At the same time, the average 401(k) balance is down 23% from a year ago to $97,200, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) plans. 
“Maybe you have that $1 million but you’ve taken a 20% hit on it,” Goodsell said. “On top of that, prices are higher.”
To get an accurate picture of where you stand, “there’s no shortage of calculators online,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York. “Or meet with a financial advisor who can hopefully put you at ease or provide you with a plan to get you feeling better.”
“You can remove the guesswork,” said Boneparth, who is also a member of the CNBC Advisor Council.

There are more millionaires in the U.S. and globally than ever before, with nearly 24.5 million millionaires nationwide as of 2022, according to the latest Global Wealth Report from the Credit Suisse Research Institute. Even so, having seven figures in the bank offers less security than it used to in the face of inflation and extreme market swings.
“That mark is easier to obtain but it may not deliver what we expect,” Goodsell said.
“People need to look at how much they have and take the time to do the math to see how long that will last,” he added. “The name of the game is preservation.”
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The New Road to Retirement

Roth IRAs are a type of after-tax account for retirement savings. Future withdrawals are tax-free if they are “qualified distributions.”
A “five-year” rule for Roth individual retirement accounts may trigger an unexpected tax bill on investment earnings, even after age 59½.
Contributing just $1 to a Roth IRA today can help you avoid a tax surprise later.

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Flouting the ‘5-year rule’ can mean earnings are taxable

Roth IRAs are a type of after-tax retirement account. Since Roth IRA owners pay income tax on contributions, they can generally withdraw their savings — and any investment earnings — free of tax and penalties in old age.
But retirement accounts come with many rules to prevent potential tax dodges — and Roth IRAs are no exception.

Contributions to a Roth IRA are always tax- and penalty-free. You can withdraw them at any time and at any age because you’ve already paid income tax on those funds.
However, the same isn’t always true for investment earnings on those contributions.

In tax lingo, a Roth IRA withdrawal must be a “qualified distribution” to avoid taxes or penalties. Taxes on investment earnings are at “ordinary income” tax rates, not the preferential tax rates for capital gains.
There are two requirements for a withdrawal to count as a qualified distribution:

Age: You may be hit with a 10% tax penalty and income taxes on any investment earnings you withdraw before age 59½. (There are some exceptions to this “early withdrawal” penalty.)
Time: Here’s where the “five-year rule” comes into play. Roth IRA owners must have their account for at least five years to avoid paying income tax on any withdrawn investment earnings.

Here’s a simple example: Let’s say a 60-year-old contributed $6,000 to a Roth IRA in January 2020. It’s the saver’s only Roth IRA and the first time they’ve contributed money to such an account. The investment has earned about $1,500. In 2023, the saver, now 63 years old, decides to withdraw the full $7,500.
You might think this person is in the clear, since they’re over age 59½. However, this individual would owe income taxes on the $1,500 of earnings because the account hasn’t been open for five years. It wouldn’t be a qualified distribution.

An easy way to start the 5-year clock

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There’s an easy workaround to the Roth IRA five-year rule if you don’t mind doing some advance planning, Slott said.
If that same 63-year-old had contributed any money to a Roth IRA at any point beyond five years in the past — even if it was just $1 back in 1990, for example — their investment earnings today would be tax-free when withdrawn. (One caveat: Someone younger than age 59½ may still owe a 10% tax penalty on earnings withdrawn, with few exceptions.)
That’s because the five-year holding period begins “with the first tax year for which a contribution was made to a Roth IRA set up for your benefit,” according to the IRS.
In other words, the initial Roth IRA contribution is what starts the five-year clock, Slott said. It starts Jan. 1 of the year in which the first dollar is contributed. That clock lasts forever and doesn’t reset if future contributions are made, or if the account is closed and then reopened, Slott said.
Savers who qualify to contribute to a Roth IRA should open one to start the clock now to avoid any snags later, Slott said.

Who will ‘never need to know the 5-year rule’

Of course, not everyone is eligible to contribute to a Roth IRA. There are income limits: A single tax filer can’t contribute any money to a Roth IRA in 2023 if their modified adjusted gross income exceeds $153,000. Married couples filing a joint tax return have a MAGI limit of $228,000.
A Roth IRA conversion is one way to sidestep these income limits. And a conversion is another way to start the five-year clock for qualified distributions, Slott said — though he advised that there’s a different five-year rule for converted funds that could trip up taxpayers under age 59½.

That’s what we call a ‘forever clock. Once it starts, it never stops.

certified public accountant and IRA expert

Another important note: The five-year clock may still apply if you inherit a Roth IRA from a deceased accountholder.
Ultimately, though, retirement savers who use their accounts as envisioned by the tax code — as a pot of savings amassed over a long time and for use in old age — don’t need to fear tripping up any of these tax rules.
“If you use the Roth the way it’s intended, you’ll never need to know the five-year rule,” Slott said. More

Jim Umpleby, CEO of Caterpillar Inc.
Adam Jeffery | CNBC

During these challenging times, making informed decisions with a long-term view is vital for investors.
Here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their track records.

Advanced Micro Devices

Semiconductor company Advanced Micro Devices’ (AMD) fourth-quarter results surpassed Street expectations even as continued weakness in the PC market dragged down the company’s client segment revenue. Nevertheless, higher sales from the data center and embedded divisions helped offset the weakness in the client and gaming segments.
Although AMD expects its revenue in the first quarter of 2023 to decline by about 10%, CEO Lisa Su remains optimistic about the company’s ability to win market share this year.
Susquehanna analyst Christopher Rolland said the company’s client and gaming results were better than feared. However, he noted that management’s weaker data center outlook for the first half was a “surprise.”
“While sales into North American hyperscalers more than doubled in 2022, management believes cloud is now undergoing a period of digestion in 1H, returning to growth in 2H (we think helped by ramps of Genoa, Bergamo, MI300 and Pensando, all of which are on track),” explained Rolland about the data center segment guidance. (See AMD Blogger Opinions & Sentiment on TipRanks)
Overall, Rolland reiterated a buy rating for AMD with a price target of $88, saying he prefers to look beyond the uncertainty in 2023 “towards a better 2024.” Rolland’s conviction is worth trusting, given that he is ranked at the 13th position among more than 8,300 analysts tracked by TipRanks. Moreover, 72% of his ratings have been profitable, with each generating a 21% average return.

Tesla

Leading electric vehicle maker Tesla’s (TSLA) upbeat fourth-quarter results wiped out investors’ concerns about supply chain disruptions, the distraction related to Elon Musk’s Twitter acquisition, and the recently announced price cuts.
Tesla is focused on reducing costs and enhancing productivity to combat the near-term macroeconomic pressures and rising competition. Taking into account potential supply chain issues and other possible headwinds, the company issued production guidance of 1.8 million EVs in 2023, even though it has the potential to make 2 million units.
Mizuho Securities analyst Vijay Rakesh projects Tesla’s revenue will grow 29% this year and 26% in 2024. The analyst highlighted that his conservative growth estimates reflect “potentially slowing macro demand offset by secular EV transitional trends.”
Rakesh reaffirmed a buy rating and $250 price target, pointing out that Tesla has industry-leading margins and is on the path to deliver more than $10 billion in free cash flow, compared to rivals who are still at negative free cash flow. (See Tesla Hedge Fund Trading Activity on TipRanks)​
Rakesh holds the 113th position among more than 8,000 analysts tracked on TipRanks. Additionally, 60% of his ratings have been successful and have generated a 17.4% average return.

McDonald’s  

After fast-moving EVs, fast-food giant McDonald’s (MCD) is next on our list. McDonald’s topped expectations, as the restaurant chain witnessed better-than-anticipated traffic at its domestic stores in the final quarter of 2022.
McDonalds’ delivered robust comparable sales across the domestic and international markets, thanks to “strategic menu price increases” in the U.S., attractive menu offerings, and marketing campaigns like the Happy Meal offering for adults. (See McDonald’s Dividend Date & History on TipRanks)  
Despite tough macro conditions, McDonald’s intends to expand further to grab additional business. It plans to open about 1,900 restaurants, with over 400 of these locations in the U.S. and the International Operated Markets segments. The remaining restaurants will be opened by developmental licensees and affiliates.  
BTIG analyst Peter Saleh, who reiterated a buy rating and $280 price target, expects McDonald’s to gain from “moderating inflation, carryover pricing, easing lockdowns in China, and foreign exchange finally becoming a modest tailwind.”
Saleh ranks 383 out of more than 8,300 analysts on TipRanks, with a success rate of 65%. Each of his ratings has delivered a 12.3% return on average.

Mondelez International

Mondelez International’s (MDLZ) recent results reflected the advantages of being a manufacturer of resilient product categories like chocolate, cookies and baked snacks. The Oreo-brand owner delivered robust revenue growth, fueled by higher pricing, increased volumes and strategic acquisitions, including Chipita and Clif Bar.
Despite currency headwinds and higher costs, Mondelez is positive about driving “attractive growth” in 2023 and beyond by increasing its exposure to high-growth categories, cost discipline, and continued investments in iconic brands. (See MDLZ Stock Chart on TipRanks) 
J.P.Morgan analyst Kenneth Goldman, who ranks 652 out of over 8,300 analysts tracked by TipRanks, feels that it is “refreshing to see at least one company surprise to the upside” on the volumes front amid growing concerns about this key metric in the staples industry.
Given the likelihood of several food producers reporting weak volumes in the coming days, Goldman said it could “become increasingly important to own stocks of companies with (a) relatively inelastic categories, (b) strong and unique brands with limited private label competition, and (c) a commitment to continually spending behind their brands.”
In line with his bullish stance, Goldman reiterated a buy rating and increased his price target to $74 from $71. It’s worth noting that 61% of his ratings have been successful, generating a 9.3% average return.  

Caterpillar

Construction and mining equipment maker Caterpillar (CAT) ended 2022 with a double-digit increase in revenue in the fourth quarter, driven by steady demand and higher pricing. However, investors seemed concerned about the impact of rising input costs and the strengthening U.S. dollar on the company’s bottom line.
Furthermore, Caterpillar’s warning about weaker China demand in 2023 didn’t go down well with the shareholders. Nonetheless, the company is optimistic about higher overall sales and earnings this year due to healthy demand across its segments.
Jefferies analyst Stephen Volkmann reaffirmed a buy rating following the Q4 print and maintained a price target of $285. Volkmann called the company’s pricing strength as “the standout positive.”
The analyst also noted that the demand for Caterpillar’s products remains strong, as indicated by a $400 million rise in the order backlog in the fourth quarter on a sequential basis. (See Caterpillar’s Insider Trading Activity on TipRanks) 
Volkmann’s recommendations are worth paying attention to, given that he stands at the 51st position out of 8,300 plus analysts tracked by TipRanks. Remarkably, 69% of Volkmann’s ratings have generated profits, with each rating bringing in a 19.9% average return.

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Rising food costs are pushing consumers to get more creative about where they go for groceries.
Discount dollar stores are becoming a key destination for affordable essentials, including perishable and nonperishable goods, according to a recent report.
Savings experts share their top tips to cut costs no matter where you shop.

A man looks at frozen foods for sale at a Dollar Store in Alhambra, California on August 23, 2022.
Frederic J. Brown | AFP | Getty Images

Among all rising costs, sky-high grocery bills have been especially painful.
Although the consumer price index, an inflation gauge that measures the cost of a broad basket of goods and services, started to ease as of the latest reading, food prices were up yet again, the U.S. Department of Labor reported.

Over the past year, food prices overall have risen more than 10%. Egg prices, alone, soared 60%, butter is up more than 31% and lettuce jumped 25%, according to Labor Department data through December.
As a result, consumers are looking for any — and all — ways to save. For some, that means shopping at their local dollar store.

Dollar stores are pulling in more grocery shoppers

Slowly but surely, discount dollar stores’ share of total grocery spending has been creeping up, according to a recent report from Coresight Research. Already, more than 1 in 5 consumers buy groceries at dollar stores, according to Coresight’s weekly U.S. Consumer Tracker.
A separate study published in the American Journal of Public Health also found that dollar stores were the fastest-growing food retailers, in part because they are expanding at an unmatched pace, especially in rural areas.
More from Personal Finance:64% of Americans are living paycheck to paycheckAlmost half of Americans think we’re already in a recessionWhy inflation soared for 10 items in 2022

To lure shoppers, the country’s category giants — Dollar General and Dollar Tree, which owns Family Dollar — have been adding stores and remodeling with more refrigeration units and expanded grocery offerings, including healthier foods and fresh produce, the Coresight report found.
“If the two retailers continue to improve the quality of their fresh food while maintaining the low prices associated with their brands, there is a high chance it will bolster their value proposition with their existing consumer base and also pull in new customers from higher-priced retailers,” the report said.

‘It’s about making your dollar go a little further’

These days, shoppers are considering alternatives, especially if it means better prices, said Julie Ramhold, consumer analyst with DealNews. “It’s about making your dollar go a little further.”
However, the value is not always there, she added. Despite the name, “you will be hard-pressed to find items that are just a dollar.” It’s important to check the unit price and compare with the offerings at other stores, including Walmart and Trader Joe’s, Ramhold said.

In addition, the grocery assortment will still be smaller than what you would find at a supermarket or a warehouse club. For example, the selection of fruits and vegetables may be limited to more shelf-stable offerings like bagged salad mixes and bananas, Ramhold said.
Further, with less turnover, you are more likely to find items near the expiration date. “It’s important to check ‘best by’ dates,” she cautioned.

To that end, Ramhold advises shoppers to focus on staples, such as rice, pasta and dried beans, which can also be tailored to fit different cuisines and don’t cost very much.
(“The Dollar Store Cookbook,” available on Amazon, has recipes that are mostly limited to such pantry-stable ingredients, including a creamed tuna on toast made with canned tuna and cream of celery soup.)

Top tips for saving on groceries

With food inflation persisting, savings experts share their top tips to spend less on groceries, regardless of where you shop.

Scrutinize sales. Generic brands can be 10% to 30% cheaper than their “premium” counterparts and just as good — but that’s not always the case. Name brands may be offering bigger than usual discounts right now to maintain loyalty, so it’s important to price check.
Plan your meals. When you plan your meals in advance, you’re more likely to just buy the things you need, said Lisa Thompson, a savings expert at Coupons.com. If planning’s not your thing, at least go shopping with a rough idea of what you’ll be cooking in the week ahead to help stay on track and avoid impulse purchases, she added.
Buy in bulk. When it comes to the rest of the items on your list, you can save more by buying in bulk. Joining a wholesale club such as Costco, Sam’s Club or BJ’s will often get you the best price per unit on condiments and nonperishable goods. Then, keep your pantry organized, with food closer to expiration in front so you know to cook or consume them before they go bad, advised consumer savings expert Andrea Woroch.
Use a cash-back app. Ibotta and Checkout 51 are two of the most popular apps for earning cash back at the store, according to Ramhold. The average Ibotta user earns between $10 and $20 a month, but more active users can make as much as $100 to $300 a month, a spokesperson told CNBC.
Pay with the right card. While a generic cash-back card such as the Citi Double Cash Card can earn you 2%, there are specific grocery rewards cards that can earn you up to 6% back at supermarkets nationwide, such as the Blue Cash Preferred Card from American Express. CNBC’s Select has a full roundup of the best cards for food shopping along with the APRs and annual fees.

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The share of borrowers who are 60 or more days behind in their auto loan payments was 26.7% higher in December than it was a year earlier.
Once your payment is 30 days late, lenders report the delinquency to the credit-reporting firms, and your credit score will take a hit.
If you are having trouble paying on time, here are some things you can do to prevent the situation from getting worse.

Fotostorm | E+ | Getty Images

For a rising share of car owners, monthly auto loan payments appear to be evolving into a problem.
While borrowers who are behind on their payments by more than 60 days represent a tiny portion of all outstanding auto loans — 1.84% — their ranks are growing, according to a recent report from Cox Automotive. The share was 26.7% higher in December than the year-earlier month and is largely concentrated among borrowers with low credit scores.

“The danger of struggling to pay an auto loan is not just risking your car getting repossessed, it’s the long-term impact on all of the other areas of your finances,” said certified financial planner Angela Dorsey, founder of Dorsey Wealth Management in Torrance, California.

High prices, interest rates have led to bigger payments

A combination of market factors have pushed up monthly loan payments. And as personal savings have dwindled and persistent inflation has squeezed household budgets, keeping up with payments may become even more challenging.
The average price paid for a new car reached a record $47,362 in December, according to an estimate from J.D. Power and LMC Automotive. 
Monthly payments in the fourth quarter averaged $717, compared with $659 a year earlier, according to Edmunds. The share of buyers who took on monthly payments of $1,000 or more reached 15.7%, compared with 10.5% a year earlier. In the fourth quarter of 2020, just 6% of borrowers had monthly auto payments that large.
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Rising interest rates also have affected affordability. The average rate paid on a new car loan was 6.5% at the end of 2022, Edmunds data shows. For used cars, the average was 10%. A year earlier, those rates were 4.1% and 7.4%, respectively. 

Loan delinquencies can harm your credit score

While the auto loan delinquency rate is edging higher, the default rate is not, according to Cox. Entering default — when your lender determines you are not going to pay, usually some time after 90 days of no payments — can translate into your car being repossessed.
Yet even being too late on one payment has a negative effect on your financial life, and it can be long-lasting.
“If you’re 30 days late, it impacts your credit score,” said Brian Moody, executive editor of Kelley Blue Book.

That’s when lenders typically report the late payment to credit-reporting firms Equifax, Experian and TransUnion.
Also, you should be aware that because your payment history is the most influential factor in your credit score — it typically accounts for 35% of it — you could see a drop of 100 points due to being 30 days late with a payment, according to NerdWallet. The longer the loan goes unpaid, the bigger the hit to your score, and that delinquency can remain on your credit report for up to seven years.
As consumers generally know, the lower your score, the more likely you are to pay higher interest rates on new loans or credit you get. Additionally, a poor score or poor credit history may cause you to pay higher premiums on auto or homeowner’s insurance and affect your ability to rent an apartment or even get a job. Employers can’t see your score, but they can check your report.

What to do if you’re struggling with auto loan bills

For car owners who are pretty sure they’re heading toward delinquency, it’s important to try preventing the problem from snowballing.
“If you sense this is coming, be on top of it,” Moody said. “Don’t do nothing. It won’t get better on its own.”
If you’re struggling to keep up because you don’t budget well, that’s at least potentially fixable, experts say. In that case, take a hard look at how you’re spending money.

“Take a look at your overall expenses for the last few months,” said Joe Pendergast, vice president of consumer lending for Navy Federal Credit Union. “You would be amazed how much the average person spends each month without realizing it.”
However, if the payments are simply not manageable, the first thing you should do is bring your lender into the loop.
“If a consumer is struggling to make their car payments, or anticipates challenges ahead, they should reach out to their financial institution as soon as possible,” Pendergast said.

The sooner your bank or credit union is made aware, the easier it is to come up with possible solutions.

Joe Pendergast
Vice president of consumer lending for Navy Federal Credit Union

“The sooner your bank or credit union is made aware, the easier it is to come up with possible solutions,” he said.
While the options vary from lender to lender, you may be able to get a deferment — i.e., a few months without a payment — or a new loan that lowers the payments by stretching out the length. Either way, be aware that this generally would lead to paying more in interest, noted Moody of Kelley Blue Book.
However, a deferment would at least give you time to figure out how to best manage your situation, he said. 

For example, you could sell your car with the intent of buying a lower-priced one — or, perhaps, even going without one if you have other transportation options. Just be aware that depending on how much you owe on the loan, the price you get for your car may not fully cover your balance, which would mean you’d still owe the lender money.
There may be a similar value gap if you opt to trade it in. While trade-in amounts have been relatively high due to used-car values being elevated, that is changing. The latest inflation reading showed a year-over-year drop of 8.8% in used car prices.
And if the amount a dealer is willing to give you is less than what you owe on the loan, you will either need to pay off the remaining balance or roll it into your new loan. This so-called negative equity averaged $5,341 in the last quarter of 2022, Edmunds data shows.
“None of these [options] are ideal,” Moody said. “They are all under the heading ‘better than nothing.'”

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