Sage Personal Finance

Choosing between an electric vehicle and a gas-powered car comes down to lifestyle, budget, and convenience. Electric cars offer several major advantages, including lower operating costs, reduced environmental impact, a smooth and quiet driving experience, and the convenience of charging at home. Many EV owners also benefit from tax credits or incentives. However, electric cars tend to have higher upfront prices, and charging infrastructure can be inconsistent depending on where you live. Charging takes longer than filling up with gas, battery capacity gradually declines over time, and some lower-cost EV models still offer limited range.

Gas cars, on the other hand, remain popular for their lower purchase price, quick refueling, and widespread fueling infrastructure. They generally perform better in extremely cold weather and offer the widest range of models and price points. Still, they come with higher long-term costs due to fuel and maintenance needs, contribute to pollution, and lose efficiency in stop-and-go traffic. Gas vehicles may also face increased regulatory pressure in the future as more regions move toward cleaner transportation.

Ultimately, an electric car is a strong choice if you can charge at home, mostly drive short or local routes, and want lower long-term expenses. A gas car may suit you better if you frequently take long road trips, lack access to home charging, or need a lower upfront cost with fast refueling.

Buying a new car is a big financial commitment, but with the right approach, you can significantly cut down on costs. An effective way to save money is by doing thorough research before entering the dealership. Compare prices for the same car make and model across multiple dealerships and websites. Familiarize yourself with the invoice price—the amount the dealer paid for the car—so you can negotiate more confidently and avoid overpaying. TrueCar.com, Edmunds.com, and kbb.com are helpful for obtaining information about the selling prices for different car models in your area.

Another smart tactic is to time your purchase strategically. Car dealerships often have sales quotas to meet at the end of the month, quarter, or year. Shopping during these times can give you more leverage, as salespeople may be more willing to offer discounts to meet their targets. Additionally, shopping for a car at the end of the model year, when dealerships are trying to make room for new inventory, can lead to significant markdowns. The end of the model year usually falls from August through October.

Also, financing is an area where buyers often lose money unnecessarily. It’s important to shop around for auto loans before visiting the dealership. Credit unions and banks often offer better interest rates than dealerships do. By securing a loan in advance (or just obtaining the loan information), you’ll not only understand your budget better, but also be in a stronger position to negotiate financing options at the dealership.

Finally, avoid costly extras that dealerships may try to upsell. Extended warranties, paint protection, pre-paid maintenance plans, and other add-ons often come with high markups and limited value. Stick to what you need and focus on the total out-the-door price, not just the monthly payment.

As climate change drives more extreme temperatures, energy bills are becoming more expensive for many households. Summers are hotter, winters are colder, and weather patterns are more variable—forcing heating and cooling systems to work harder and longer. But while the climate may be changing, there are still practical steps you can take to reduce your energy usage and cut costs.

Start with efficiency upgrades at home. Seal gaps around windows and doors to prevent drafts, and consider adding insulation in attics or walls to retain indoor temperatures. Upgrading to energy-efficient appliances, such as LED lighting, smart thermostats, and ENERGY STAR-rated HVAC systems, can significantly lower energy usage over time.

Behavioral changes also help. Simple adjustments like setting your thermostat a few degrees higher in summer or lower in winter can lead to major savings. Using ceiling fans to circulate air can reduce the need for air conditioning. Unplug electronics when not in use, and do laundry and dishwashing during off-peak hours when electricity rates are lower. (Peak energy use hours are usually between 4pm-9pm each day.)

Also, consider renewable energy options where possible. Installing solar panels can provide long-term relief from rising utility rates while reducing your carbon footprint. Even if solar isn’t feasible for your home, many utilities offer green energy plans that allow you to support clean power.

Lastly, many utility companies will provide a free home energy audit. They will send a professional to your home to assess your energy usage and determine ways to improve energy efficiency. These audits can help provide ideas about ways to reduce your energy usage and/or save money on energy bills.

This week has seen huge shifts in the market—one day the Dow Jones is down 1,500 points, the next day it is up 1,000 points. It can be difficult to see a stock portfolio lose so much money in a short period of time. Here are a few tips for getting through times of market volatility.

1. Wait it out. Don’t be tempted to sell your stocks. Consider not looking at your portfolio for a short while so you don’t have to see all of the daily ups and downs.
2. Ensure you have a diverse portfolio of investments. It is helpful to have investments in international stocks in addition to the U.S. stock market, and to have investments in real estate, bonds, CDs, etc. Then when the U.S. stock market goes down, you still have a certain amount of your assets that aren’t as affected.
3. Think about buying stocks if they are priced low. If you have cash to invest, it is a great time to buy into the stock market if the market is at a low. But, be ready to invest that money for the long term as it may take some time for the market to rise again.

The cost of living in different places in the U.S. can be extremely variable. If you are lucky enough to be able to work from anywhere, investigating which locations offer both life satisfaction and a less expensive cost of living could be really beneficial. Here are a few comparisons.

Average two-bedroom rent

• Los Angeles, California: $2,954/month
• Kansas City, Missouri: $1,356/month
• Evanston, Illinois: $2,486/month
• Birmingham, Alabama: $1,476/month

Average amount spent on state income tax for a $50,000/year salary

• California: $3,000/year
• Texas: $0/year
• Massachussetts: $2,500/year
• Nevada: $0/year

Average cost of one gallon of milk

• Los Angeles, California: $4.60
• Miami, Florida: $4.36
• Jackson, Mississippi: $3.61
• Dallas, Texas: $3.54

Average cost of one gallon of regular gas

• California: $4.68
• Michigan: $3.27
• Tennessee: $2.86
• New York: $3.24

The first thing to do when deciding which stocks to buy is to consider your risk tolerance. If you would like to invest more conservatively, think about buying mutual funds or exchange traded funds. These investment options allow you to invest in many different stocks at the same time and create a more diverse portfolio that is less likely to experience large amounts of volatility.

If you are looking to invest a portion of your savings in individual stocks (and can risk losing money on these investments), here are a few things to consider before deciding which companies to invest in.

1. First, consider the stock’s price to earnings ratio. This number is calculated by dividing the price of a stock by the company’s annual earnings per share. The average price to earnings ratio is about 20, so if you see a company that has a lower one that that, this might indicate the stock is a good buy. (The price is low compared to the company’s strong earnings performance.)
2. Second, consider whether the stock provides dividends. Dividends are guaranteed income provided to stock owners. Companies usually issue them quarterly. If you’re looking to hold onto a stock for a long time, earning dividends can be very helpful.
3. Third, research the industry you are thinking of investing in. Have stocks in that industry generally performed well in the past? Is there more or less volatility in one industry vs. another?
4. Fourth, research the specific company you may want to buy stock in. Has it been in business for a long time? Is it generally profitable from year to year? Does it have a business that you think will survive over the long term?

Once you’ve decided to buy a stock, try to buy when the stock’s price is lower than it has been historically, and plan on holding onto that stock for awhile.

Interest rates are currently around 5.25%, which is on the high end for the last decade. The downside to this is that interest rates on mortgages and other loans are high, which makes borrowing difficult. But, there are a few things that you can do to take advantage of these high interest rates:

1. Open a high yield savings account. You can now open an account and earn over 5% interest annually. With a 5.25% rate, if you invest $20,000 you could earn $1,050 after one year.
2. Consider investing in corporate bonds. Bonds are essentially loans to corporations and now they are paying high rates. They are a less risky investment option compared to stocks.
3. Prioritize paying off debts that have fluctuating interest rates over debts that have fixed, lower rates.
4. If possible, pay in full for big ticket items now rather than pay for financing. For example, if you need to buy a new dishwasher, it could cost several hundred dollars more to pay for the new dishwasher if you pay in installments. If necessary, wait a little longer to buy it and accumulate the amount in full so you can pay the full amount at once.