Clark Howard

Every time gas prices spike, I see the same natural reaction. We go through long stretches where fuel prices just mosey along, and then a huge spike hits like the one we’re experiencing now. You stand at the pump, watch the register spin, and say, “I can’t believe it just cost me this much to fill up!” There’s nothing fun about watching the dollars fly by while the gallons crawl as you fill up your vehicle.

Naturally, it leads to a knee-jerk reaction: “I’ve got to get rid of this gas-guzzler and buy something more fuel-efficient.”

Yes, I love driving efficient vehicles, but trading in your car right now as a knee-jerk response is a classic money trap. Here is why making that switch could cost you far more than you think — plus how to defeat the new tactics automakers are using to keep car prices high.

The Math Behind the Gas Spike: Why You Shouldn’t Rush to Trade In

Unless a completely unexpected global event happens, high gasoline prices are typically temporary. While today’s brutal prices are painful for your wallet, history shows us this is not a permanent state of affairs.

Here is where the math goes wrong for most people:

Trading in a working car creates new debt: If you ditch a paid-off vehicle (or one with a manageable low payment) to buy a hybrid or electric vehicle, your cost per mile will drop significantly. However, you are taking on a brand-new monthly car payment.

Fuel savings rarely offset a monthly payment: Unless you have an ultra-long daily commute, saving $50 to $100 a month on gas does not justify taking on a $400, $500, or $600 monthly car payment.

The takeaway: Keep driving what you have! Use smart strategies — like shopping around for the lowest local fuel prices — to cushion the impact at the pump until prices stabilize.

Final Thoughts

Gas-pump spikes are brutal, but making a major financial change based on a temporary crisis is almost always a mistake. Stick with the vehicle you have, cut costs wherever you can, and wait out the storm.

If you do have to buy, stick to the process and force dealers to compete — you can still beat them at their own game.
The post Should You Buy a New Car Because of Gas Prices? appeared first on Clark Howard.

It feels like ancient history now, but not too long ago, the mortgage market was actually showing signs of relief. Rates were dipping into the upper 5% range, and 15-year refinance rates were sitting in the lower 5s.

Today, that situation has completely reversed. Mortgage rates have surged to their highest levels in roughly 15 years, driven up by federal budget deficits, inflation, and global geopolitical tensions — and they could still go higher.

While that sounds like purely bad news, there’s a strange silver lining here. If you are looking to buy a home right now, this high-rate environment is actually creating opportunities you wouldn’t have had a year or two ago.

The Death of “Price Adjustments”

Because borrowing costs have soared, the housing market has flat-out stalled. The result? Price cuts are now the order of the day.

For years, real estate agents avoided the word “cut” at all costs, preferring soft marketing phrases like “price adjustment” or “price improvement.” You almost never saw the word “cut.”

Now, open up Zillow or Realtor.com, and what do you see? Big, bold red text shouting PRICE CUT. Sellers are practically pleading, “Please buy this house.”

Sellers are realizing that what a home was worth a year or two ago simply doesn’t matter anymore. We are entering a phase in the real estate cycle known as price capitulation, where sellers across entire metro areas are forced to accept reality and price their homes for what today’s market will actually pay.

Finding the “Have-to-Sell” Properties

Not every seller can afford to wait out the market. A certain percentage of home sales every year are mandatory transactions — people who have to sell regardless of market conditions due to:

Job relocations

Transitions into assisted living

Estate settlements after a loss

Divorces

These sellers can’t just pull their homes off the market and wait for better times; they have to cut prices until the home sells. On top of that, foreclosure numbers are starting to rise across the country after years of virtually non-existent foreclosure activity.

If you’re a buyer who can handle today’s higher monthly payment, being able to purchase the underlying property at a lower purchase price is an enormous long-term advantage. When rates normalize, you refinance the mortgage.

Should You Consider an Adjustable-Rate Mortgage (ARM)?

Historically, I am very cautious when it comes to Adjustable-Rate Mortgages (ARMs). However, in a market like this, people frequently ask if an ARM makes sense.

Here is my rule of thumb right now:

When to skip it: If an ARM only saves you a fraction of a percent over a standard fixed-rate mortgage, the risk isn’t worth it. Stick with a fixed rate.

When to consider it: If you can secure a 5/1 or 7/1 ARM that offers at least a full percentage point (1.00%) lower rate than prevailing fixed rates, it becomes potentially worth the risk.

Final Thoughts

Even with home prices dropping, the reality is that in almost every major market in the country right now, it remains significantly cheaper to rent than to buy.

If you are buying a home today, it needs to be a long-term decision. Don’t look at it as a short-term trade. If you buy at a lower price point now, lock in a payment you can comfortably afford, and hold the property long-term, inflation and eventual rate-refinancing cycles will work in your favor down the road.
The post High Mortgage Rates Are Pushing Home Prices Down: Here’s the Silver Lining for Buyers appeared first on Clark Howard.

Investing mistakes don’t always come from taking too much risk. Sometimes they come from ideas that sound perfectly reasonable.

Wait for a better time to invest. Keep money in cash because it’s safe. Own a bunch of funds so you’re diversified. Move mostly out of stocks when retirement gets close.

Each of those ideas has some logic behind it. But taken too far, they can quietly hurt your long-term results.

Here are eight investing myths worth questioning.

1. There Are Good and Bad Times To Get Into and Out of the Market

Of course there are times that, in hindsight, would have been fantastic moments to buy or sell stocks. The problem is knowing them in advance.

It’s easy to look back at a market crash and think you should have sold beforehand. It’s just as easy to look at the bottom afterward and think you should have bought aggressively. Real life doesn’t work that way.

When stocks are falling, the news usually looks terrible. When the market begins recovering, the news may still look terrible. By the time things feel safe again, stocks may already be substantially higher.

The same problem applies when markets are setting records. Investors sometimes hesitate to invest because stocks seem expensive or because a correction feels overdue. But markets that rise over long periods naturally hit new highs over and over.

Trying to time the market means making multiple correct decisions: when to get out, when to get back in and sometimes when to invest money you’ve been holding on the sidelines.

For long-term investors, consistently investing and staying invested is generally a more dependable strategy than trying to identify the perfect moment.

2. Cash Is Safe

Cash feels safe because its value doesn’t bounce around every day.

If you have $20,000 in a savings account today, you won’t wake up tomorrow and discover that it’s worth $17,000. That stability makes cash an excellent home for an emergency fund and money you expect to need soon.

But cash has its own risks.

The biggest is inflation. Your account balance may stay intact while the purchasing power of that money slowly declines. There’s also opportunity cost. Money you keep in cash for 10, 20 or 30 years doesn’t get the same opportunity to participate in the long-term growth of stocks.

That doesn’t mean every dollar should be invested. It means “safe” depends on what the money is for. Cash can be very safe for next year’s expenses and a poor choice for money you won’t need for decades.

3. Bonds Are Safe Because They Don’t Lose Value

In 2022, many investors learned the hard way that bonds can lose money.

Broad bonds fell about 13% that year. That was especially jarring because bonds are generally thought of as the safer part of a portfolio. But 2022 was also highly unusual.

Going back to 1928, broad bonds posted a negative annual return in only 11 out of 98 years. And most of those losses were relatively small. Before 2022, the worst annual decline was just 2.9% in 1994.

So bonds have historically been much more stable than stocks. But stable isn’t the same as guaranteed.

One major risk is rising interest rates.

Suppose you own a bond paying 3% interest and newly issued bonds begin paying 5%. Your 3% bond is suddenly less attractive. If you want to sell it before maturity, its price generally has to fall enough to compete with the newer, higher-yielding bonds. That is essentially what hit bond investors so hard in 2022, when interest rates rose rapidly.

There is an important distinction, though, between an individual high-quality bond and a bond fund. If you buy an individual Treasury bond and hold it until maturity, temporary price swings along the way don’t change the amount the government promises to repay at maturity. A bond fund, on the other hand, has no single maturity date, so its value rises and falls as the prices of the bonds it owns change.

Bonds still play an important role in many portfolios because they have historically been much less volatile than stocks and can provide income and diversification. Just don’t mistake safer for can’t lose value.

4. Owning More Funds Means I’m More Diversified

If two funds are good, wouldn’t 10 be even better? Not necessarily.

You might own an S&P 500 fund, a large-cap growth fund, a technology fund and several actively managed U.S. stock funds and discover that many of them own the same companies. You have more funds, but not necessarily more diversification.

Diversification comes from owning different types of investments, not simply owning more investment products. A relatively simple portfolio of broad-market stock and bond funds can provide exposure to thousands of securities.

Meanwhile, a complicated portfolio with 15 funds can still be heavily concentrated in the same corner of the market.

More investments can sometimes mean more diversification. But complexity by itself is not diversification.

5. Sophisticated Investors Earn Better Returns

Investing can be incredibly complicated.

You can trade options, analyze individual stocks, invest in private markets, study economic indicators or build elaborate portfolios with dozens of holdings. But complexity doesn’t automatically lead to better results.

A person who buys a few low-cost diversified funds, keeps adding money and leaves the portfolio alone may outperform an investor who constantly trades, analyzes and adjusts.

That’s partly because sophistication can create opportunities to make more mistakes. Frequent trading can increase costs and taxes. Concentrated bets can increase risk. Constantly changing strategies can lead investors to chase whatever recently performed best.

There is nothing wrong with understanding investing at a deep level. The myth is believing that successful investing has to look complicated.

Sometimes the hardest investing skill is simply resisting the urge to do something.

6. If My Portfolio Didn’t Beat the S&P 500, I Did Something Wrong

The S&P 500 is one of the most widely followed investment benchmarks in the world. But it isn’t the appropriate measuring stick for every portfolio.

The S&P 500 represents large U.S. companies. If your portfolio also contains bonds, international stocks, small-company stocks or other assets, it won’t behave exactly like the S&P 500, nor should it.

Suppose a retiree has 60% of a portfolio in stocks and 40% in bonds. During a strong stock-market year, that portfolio will probably trail the S&P 500. That doesn’t mean the investor made a mistake. The bonds were included for a reason: to reduce risk and provide stability when stocks fall.

A good portfolio should be judged against what it was designed to accomplish, not against whichever market index happened to perform best. Otherwise, investors can find themselves constantly chasing yesterday’s winner.

7. Professional Investors Know Where the Market Is Going

Wall Street employs brilliant people with access to enormous amounts of information. They analyze earnings, interest rates, economic data, valuations, consumer behavior and just about everything else that might influence investments. That doesn’t mean they know what the stock market will do next; there are simply too many variables at play.

Unexpected economic data, wars, policy changes, corporate surprises and investor psychology can quickly overwhelm even the most carefully constructed forecast. Professional analysis can still be valuable. There’s a big difference, though, between understanding risks and reliably predicting short-term market movements.

Be especially skeptical when someone sounds certain about where stocks will be in six months or a year. Nobody gets a clear view of the future just because they work on Wall Street.

8. Once I’m Near or in Retirement, I Should Own Few or No Stocks

This myth sounds especially reasonable.

You’ve spent decades accumulating money. Retirement is approaching. Why keep taking stock-market risk?

Because retirement may last a very long time. Someone retiring in their mid-60s could need their portfolio to support them for another 25 or 30 years, and sometimes longer.

Over that kind of time horizon, inflation becomes a serious risk. If your cost of living rises while most of your money sits in very conservative investments, your purchasing power can slowly erode.

Stocks provide no guarantee of higher returns, and retirees generally shouldn’t take the same level of risk as someone decades away from retirement. But eliminating stocks entirely introduces another kind of risk: not having enough growth.

Retirement usually calls for changing your investment mix, not abandoning growth altogether. The right balance depends on how much you have, how much you spend, your other sources of income and how much volatility you can tolerate. But retirement is not the end of your investing time horizon.

Final Thoughts

The common thread among these investing myths is the idea that there’s a perfect way to invest — a perfect time to buy, a perfect mix of investments or a perfect strategy for avoiding losses.

In reality, investing involves trade-offs. Cash provides stability but can lose purchasing power to inflation. Bonds can reduce volatility but still decline in value. Stocks offer greater long-term growth potential but come with larger short-term swings.

The goal isn’t to eliminate those trade-offs. It’s to build a strategy that fits your time horizon, financial goals and ability to tolerate market declines and then stick with it.

For many people, that means keeping an emergency fund in cash, investing long-term money in a diversified portfolio, keeping costs low and resisting the temptation to make major changes based on the latest market forecast or headline.
The post 8 Investing Myths That Could Be Costing You Money appeared first on Clark Howard.

Freeing yourself from recurring monthly cable or streaming TV bills sounds like a wonderful thing.

In fact, it could save you more than $1,200 per year if you’re paying $100 or more per month on services. And, before you say “I’m not paying that much,” be sure to check what you’re paying for those video-on-demand (VOD) services like Netflix or Paramount+. Carrying just a few of those with a live TV service will get you there. It all adds up quickly!

Many budget-conscious consumers have rightfully shifted their attention to the free streaming TV market to save money.

Money expert Clark Howard has touted this emerging market segment for years as a way to get relief from continual price hikes from pay services.

But it comes with sacrifices that some of you may not be fully prepared to make.

Let’s look at what you need to know before you start canceling those paid streaming subscriptions.

6 Things To Know About Free Streaming TV Before You Cancel Subscriptions

Free streaming TV is a great way to save some cash, but it’s not a “perfect replacement” for your paid streaming subscriptions.

You’ll have to make some content sacrifices along the way. Here’s what you need to know:

1. Be Prepared to Take a Trip Down “Memory Lane” with Your Content Options

Let’s start with the bad news: Switching to free streaming TV as your primary source of content will take away most of the new content that will be the talk at the water cooler.

You won’t be finding the latest HBO hit series or the new Netflix drama on a free streaming TV service.

Instead, most of your on-demand television and movie options are going to be titles from decades gone by. The quality of these titles varies pretty significantly from service to service, so it’s important that you start with some of the best ones.

2. The Live Content Options Are Likely Better than the Last Time You Checked

Now that we’ve set the expectations appropriately for the type of content you can expect, I’d like to point out where free streaming TV is actually improving: live TV.

Free, ad-supported TV (FAST) channels are more prevalent than ever before. Hundreds of them span content genres, and they offer a nostalgic “real TV” feel that channel surfers of yesteryear will appreciate.

I recently wrote an article about the five free services I think all cord cutters should have for the best “freebie TV” experience.

I believe anyone serious about free streaming should start with Pluto TV, Tubi, and The Roku Channel loaded on their smart TV.

Together, they offer hundreds of live FAST channels plus huge on-demand libraries of older series, movies, news, weather, and kids shows.

3. You’re Likely Going to Want a Good Antenna to Get Local Channels

One of the most cost-effective ways to “fill the content gap” that you’re creating by ditching subscription TV is to make a one-time purchase of a digital antenna.

Having one of these will allow your smart TV to get over-the-air reception of your local ABC, NBC, CBS, FOX and PBS affiliates. This gives you a solid base of “new” content, including network TV dramas and sitcoms, local news, and select live sports broadcasts.

You may be surprised by how many free channels an antenna can pull in these days. It varies by ZIP code and antenna strength, but some people will receive several dozen free channels over the air at no cost.

4. Sports Fans in Your House May Be Upset

There’s no way around it: Ditching subscription TV is going to be tough on the sports fans in your household.

So many of the live sporting events are broadcast on channels like ESPN and FS1, which are not available via free services.

Your best bet for placating their concerns is to set them up with digital antenna access to local channels like CBS, ABC, NBC, and FOX for the live sports that are broadcast on those networks.

But the big compromise might be combining this with ESPN’s standalone streaming service to keep your costs low and sports nuts happy.

5. You’re Going to Experience Plenty of Advertisements

The old saying is that when something is free, you are the product that’s being sold.

That’s true when it comes to free streaming services. You’re trading in the obligation of paying a monthly subscription fee for paying with your time and attention via a copious amount of commercials.

On FAST channels, this feels a lot like a traditional “TV commercial break.” With on-demand content, this will feel similar to the ad breaks randomly inserted into your favorite shows or movies via the ad-supported tiers of paid streaming services.

6. DVR Functionality Is Rare

One of the downsides to the “nostalgic” feel of FAST channels is that most of the free streaming services treat them like they’re old TV channels, too.

That means technological advances we’ve come to enjoy, like pausing live TV to answer the phone or rewinding a show to ensure you “heard what you thought you heard,” are not a standard feature for most free streaming services.

Bottom Line

Ditching costly subscription streaming services for free streaming services and FAST channels can be a great way to trim your household budget.

But you need to go into this decision with realistic expectations.

You won’t get access to the latest and greatest TV hits. You’re going to sacrifice access to many of the top live sporting events, and you’re just not going to have the same premium user experience that a service like YouTube TV or Netflix provides.

To some, that’s a trade-off worth making to put serious cash back in your pockets. For others, it may not be quite good enough just yet.

The good news is you can try all of this at no obligation before deciding whether to cut your existing services.

Now that you know the full picture, are you willing to jump into the free streaming TV world for the sake of your wallet? We’d love to hear your thoughts in the Clark.com community.
The post 6 Things to Know Before You Rely on Free Streaming TV appeared first on Clark Howard.

Do you feel stressed when you think about budgeting for the holidays? You’re not alone!

According to CNBC, many of us feel squeezed due to ongoing inflation, tariffs, gas prices, and job instability. Despite this, forecasts project holiday shopping growth of about 4-7%, but much of that is due to price increases rather than people buying more.

So, how can you stretch your holiday shopping dollar? Here are a few ways that can save you big, plus money expert Clark Howard’s biggest tip to keep your gift-giving budget out of the stress zone.

1. Start Early

With the Prime Big Deal Days sale happening October 6-7, you’ll be able to scoop up gifts and essentials at much lower prices. If you’re shopping at Amazon, you can always check CamelCamelCamel to take a look at price history to determine whether something is really a deal. (And now, this tool works for Walmart, too!)

Many other retailers are offering sales during this week to compete with Amazon, including Walmart and Target. Our Deals team will be working around the clock on those dates to find the best deals, so sign up for the Clark Deals newsletter to be notified of the savings.

However, this isn’t the only time you can score early deals. As Black Friday ads are released, we often see coinciding early sales with limited-time Black Friday pricing. Last year, I got my dad a very nice sweater from JCPenney during the early sales, at a Black Friday price!

2. Strategize Paychecks and Extra Work

If you’re someone who gets paid once a week, October is a five-Friday month and a great time to stash away that extra paycheck for your emergency fund and saving for the holidays.

This is a great, simple strategy to help fund your savings!

Another strategy is to take on additional short-term work. Many retailers are hiring for seasonal work, and that is a great way to earn extra money for the holidays. Plus, many of them offer an employee discount! You could pick a favorite store, or somewhere you had planned to buy many of your gifts, to get that double benefit.

Shipping services will also be hiring more help. Amazon Flex, Walmart Spark, Veho, and Roadie are gig-economy delivery services where you can pick up routes whenever they fit your schedule. However, you’ll want to research the guidelines and processes for each service.

3. Make or Bake Your Gifts

A friend of mine turned her love for glitter into beautiful resin gifts, capturing memories and moments in timeless creations! She made items for weddings, funerals, and more. (I even have a resin chess set she made and consider it one of the coolest things I own!)

Baking is a holiday favorite, too. The main point is that sometimes a gift someone created is much more meaningful than something you can buy at the store. And maybe, if you are super creative and enjoy your craft, you can excel at a side hustle that helps to pay for the holidays and sell it on Etsy.

We have a list of free and cheap gift ideas to help you brainstorm.

4. Look in Unexpected Places

Our Clark Deals team is constantly surprised by where we may find a great bargain from a reputable seller. Case in point: the Bullseye eBay store, an official Target reseller. (Take a look and you’ll see what we mean!)

One of the most fun places to score a bargain is the clearance section, especially at a “store with concrete floors.” (That’s a Clark-ism for where he shops to save the most money!)

Retailers that fit this description also include Ollie’s Bargain Outlet, as well as Marshalls, TJ Maxx, and Nordstrom Rack, to name a few.

A big caveat here: If you’re shopping online, you’ll want to avoid website scams offering too-good-to-be-true deals. Make sure the seller has a social media presence, strong reviews, and customer support you can chat with or call. Even Facebook has been approving ads from scam websites, so you’ll want to watch out for that, too!

5. Stick To Your Budget

The most important thing during the holidays is setting a budget and sticking to it. This avoids the holiday shopping hangover in January, and you don’t have to endure that stress after the holidays are over.

If, however, any unexpected expenses pop up, you’ve got your emergency fund to cover them.

Bonus tip: If you can spend responsibly with credit cards, many cards offer intro bonuses that could potentially cover all your holiday gifting!

Final Thoughts

In summary, the holidays don’t have to be stressful from a financial perspective when you plan things out and perhaps sprinkle in a little hustle. You can save money and still enjoy a festive season, so you can focus on what matters most — the meaning behind the holidays and the family and friends who make it a special time of year.
The post 5 Ways To Save on Holiday Shopping This Year appeared first on Clark Howard.

Do you use a rewards credit card to pay for your everyday expenses?

Used the right way, a rewards card can earn you cash back or travel points and give you better consumer protections than swiping a debit card.

And it has the blessing of money expert Clark Howard, provided that you are following his rules for using credit cards.

But take note: There are some risks associated with using credit cards.

In this article, I’m going to highlight some of the most common mistakes that people make with them and provide some common sense solutions to avoid them.

5 Common Credit Card Mistakes To Avoid

1. Not Paying Your Balance in Full Every Month

It wouldn’t be a proper Team Clark credit card article if I didn’t start with this disclaimer: We only endorse using credit cards as a primary payment method if you’re able to pay your card balance in full by the end of each billing cycle.

With the average credit card interest APR above 20%, it simply doesn’t make sense to carry a balance on a credit card.

Not only does that APR dwarf the cash back you can earn on your purchases, it also washes away any of the benefits or perks that you could receive from the card.

If your spending with plastic is out of control and you can’t pay your full bill, consider switching to a cash-based purchasing method wherever possible.

If you find yourself in a tough spot needing to make a purchase you cannot afford, we suggest exhausting other resources, such as a small fixed-rate loan from your local credit union, to borrow the money you need at a rate much lower than the APR a credit card will charge.

2. Paying Annual Fees on Cards You Don’t Use Often

Most of the “top tier” travel credit cards come with a hefty annual fee. Some of them now charge upwards of $900 per year just for the privilege of carrying them.

The value in paying for these cards is in luxury benefits like airport lounge access, airline or hotel status upgrades, and other statement credit opportunities.

And while frequent travelers may be able to obtain value in the perks and benefits from those cards, it’s much harder for people who travel occasionally to see a positive return on that annual fee investment.

That’s why Clark often recommends that non-frequent travelers stick to cash back credit cards with no annual fee for best results.

3. Leaving Rewards on the Table

If you’re the type of person who carries multiple credit cards in your wallet, you’ll want to make sure that you’re maximizing your rewards-earning opportunities on each purchase.

It may not seem like a big deal on a single transaction, but optimizing the rewards you get on hundreds or thousands of transactions over the course of years can really add up.

For example, if you’re going out to eat dinner, make sure you carry the credit card that earns you the most rewards for dining. Or if you’re going grocery shopping, use the card that rewards supermarket purchases best.

Team Clark recommends using a 2% cash back credit card as a “baseline” rewards mark for everyday purchases. So any card that offers rewards beyond that in select categories should be considered for those purchases.

There are apps out there that can help with this, but Clark also often references a labeling system a listener once suggested as a way to keep things straight.

4. Using Swiping As An Excuse for Ignoring Your Budget

It is easier than ever to pay with a credit card. You don’t even need your actual card to swipe to pay anymore. It can be as simple as tapping your smartwatch at the point-of-sale and you’re on your way with the items you decided to purchase.

This convenience is a great timesaver. But far too many consumers allow that convenience to slip into overspending.

Stick to your budget and earn your rewards with credit cards. If you can’t trust yourself to do that, we suggest instead going to the store with cash to make the purchases you need.

5. Paying Your Bill Without Reviewing Your Transactions Each Month

We all love to pay our bills as efficiently as possible, but credit cards are not something to simply pay blindly when the balance comes due. You really should set aside a few minutes to review your credit card statement each month.

There are a few reasons this is beneficial:

You can flag any fraudulent purchases that you didn’t authorize

You can identify any purchases that you did make but may have been overcharged

You gain a better understanding of your own spending habits and can identify areas you may be overspending

Do you have a credit card lesson you learned the hard way? Want to warn others? We’d love to hear about it in the Clark.com community.
The post 5 Common Credit Card Mistakes To Avoid appeared first on Clark Howard.

If you’re a frequent international traveler, you know how expensive it can be to stay connected abroad. Fortunately, travel eSIM plans are completely changing the game.

In this article, I’ll share how you can save hundreds of dollars on international connectivity by using an eSIM.

Quick Links: 

International Roaming Add-Ons vs. Travel eSIM Plans

International Phone Plans vs. Travel eSIM Plans

How To Shop for a Travel eSIM Plan

eSIM Plans: An Affordable Way To Stay Connected Abroad

If you rely on your regular cell phone plan to stay connected while traveling outside of the U.S., you’re likely overpaying for international service.

Many travelers will add an expensive international package to their phone bill as needed or pay for a more expensive monthly plan with international connectivity included. Instead, you can save money by opting for a cheaper regular cell phone plan and adding a second local line when you travel. 

eSIM-compatible phones make this an easier, more affordable option. 

Physical SIM cards are slowly becoming obsolete. Instead, many of the latest smartphones rely on eSIMs (embedded SIMs), which are built into the phone’s hardware and activated remotely. 

Unlike physical SIM cards, which take up the only available slot in your phone, you can have multiple active eSIM lines on the same device and choose which one to use for data, calls and texts. With this feature, you can keep your regular U.S.-based line active while you travel, but use a cheaper local plan for cellular data instead.

Additionally, travel eSIM plans are shockingly affordable. Depending on your destination(s), you can often find prepaid plans ranging from 7-30+ days for under $30. Team Clark member Laura recently tested travel eSIM plans on two international trips: 

 “I haven’t paid more than $10 for either eSIM, and both worked well for me,” says Laura. “Compare that to $10/day for international service from some carriers and it’s a no-brainer!”

In the following sections, I’ll take a closer look at how much you can save and how to shop for a local eSIM plan.

International Roaming Add-Ons vs. Travel eSIM Plans

Some cell phone plans come with a small amount of international roaming or connectivity, but most require an optional “add-on.” These add-ons typically include roaming data, but the amount of high-speed data you’ll be able to access may be limited based on your provider or destination.

In the table below, you can see the price and data details for an international roaming add-on from a couple of major U.S. providers and more affordable U.S. MVNOs. I’ve compared these add-ons to popular travel eSIM providers’ current prices for a 7-day unlimited eSIM with coverage throughout Europe: 

ProviderAdd-OnData DetailsPrice for 7 Days

AT&T$12/dayUnlimited data
Based on your current plan allotment$84

Verizon$12/day

$10/month for 3 daysUnlimited data
5GB high-speed/day$58-$84

Visible$10/dayUnlimited data
2GB high-speed/day$70

US Mobile$305GB$60 (for 10GB total)

Holafly (Travel eSIM)$27.50/weekUnlimited high-speed data$27.50

Airalo (Travel eSIM)$27/weekUnlimited data
5GB high-speed/day$27

Saily (Travel eSIM)$26.99/weekUnlimited data
3GB high-speed/day$26.99

Vodafone (Travel eSIM)$21/weekUnlimited data
5GB high-speed/day$21

While these are the prices I can see online from travel eSIM companies, know that you’ll likely find even cheaper plans after arriving at your destination. These prices will vary based on your location, plan duration, high-speed data allotments, etc.

As you can see, a week of cellular data throughout Europe costs ~$25 on average from a travel eSIM company. Alternatively, an international add-on from AT&T or Verizon can easily reach $84 for one week. 

Depending on how often you travel and the length of your trips, these savings can quickly add up.

International Phone Plans vs. Travel eSIM Plans

If you travel very frequently, you may have already invested in a cell phone plan that includes international connectivity.For some travelers, these plans are worth the higher monthly price. However, you could be overpaying for an international phone plan if you don’t use the majority of features at home.

Even if you’re out of the country 6-8 weeks annually, are you using enough of your international cell phone plan to justify the cost when you’re home? 

To compare, here are a few of our favorite international cell phone plans:

Provider/PlanPlan PriceInternationalAnnual Price

Google Fi Wireless$65/month- Unlimited data in 200+ countries
(50GB high-speed)
– Free international texting
– Data, calls and texts in Canada and Mexico
– Calls from the U.S. to 50+ destinations$780

Verizon Unlimited Ultimate$95/month- Unlimited talk and text in 210+ countries
– Unlimited data in 210+ countries
(15GB high-speed)
– International talk and text from the U.S.$1,140

T-Mobile Experience Beyond$100/month- Unlimited texting in 215+ countries
– Unlimited data in 215+ countries
(15GB high-speed)
– Unlimited texting in Canada and Mexico
– Unlimited data in Canada and Mexico
(30GB high-speed)
– International texting from the U.S. $1,200

Now, here’s an example of what your annual spending could look like with a more affordable U.S. MVNO alongside a travel eSIM: 

Provider/PlanPlan PriceTravel eSIMAnnual Price
w/ 6 Weeks Travel

US Mobile Unlimited Starter (Review)$270/year$10-$30/week$330 – $450

Visible (Review)$275/year$10-$30/week$335 – $455

Mint Mobile Unlimited (Review)$360/year$10-$30/week$420 – $540

As you can see, choosing a cheaper cell phone plan for most of the year is an easy way to save. Plus, each of these plans still includes unlimited data in the U.S.

Of course, the amount you’ll save will vary based on how much you travel, the plans you’re switching from/to, and the cost of the eSIM you choose on your trips. 

Still, based on these numbers, you could easily save $240-$750+ annually with a travel eSIM compared to an international phone plan.

How To Shop for a Travel eSIM Plan

Bring an Unlocked Phone

Before you purchase a travel eSIM plan, confirm that your phone is unlocked. If your current phone is paid off, it’s likely already unlocked and can be used to activate a second line.

Purchase and Activate When You Arrive

You can buy an international phone plan online before your trip from a travel eSIM company like Airalo, Holafly or Saily. However, you’ll likely find the most affordable options available after landing at your destination. 

While it may seem intimidating to buy cell service when you arrive, it’s actually very simple (and cheap!).

“Some people get intimidated by that and they’ll go buy at a travel website in the United States before they go,” says money expert Clark Howard. “You’re going to be shocked at how much more you’re paying doing that than just doing it when you get to where you’re going. It’s really easy, especially if your phone takes eSIM.”

Typically, you’ll see a few options in international airports as well as at convenience stores and shops along busy streets. As long as your phone is unlocked, you can easily activate an eSIM at one of these locations in major cities in most countries.

Choose a Plan That Will Meet Your Needs

The most affordable local plans will include a set amount of local minutes, texts and high-speed data. You’ll also be able to choose how long you need coverage (ex., 7 days, 10 days, 15 days, 30 days, etc.) 

If you buy an eSIM online before your trip, be sure to read the details. For example, calling and texting vary between travel eSIM plans. Many include local calls and texts, but others are data-only eSIMs.

Finally, make sure you’ll have coverage in all the locations you plan to visit, or plan to buy another local cell phone plan if you visit a different country.

Connect to the U.S. via Wi-Fi-Based Apps

When shopping for a travel eSIM, you don’t necessarily need to find a plan that includes calling and texting to the U.S. Instead, consider staying connected to friends and family back home through a Wi-Fi-based communication app like WhatsApp or Facebook Messenger.

If your regular cell phone plan supports Wi-Fi calling, you can even switch back to your regular eSIM to make calls while connected. Just make sure to switch back to your travel eSIM before disconnecting from Wi-Fi to prevent any accidental international usage charges.

Using your hotel’s Wi-Fi and staying connected whenever possible is also a great way to reduce your overall high-speed mobile data usage. This will help stretch your plan and ensure reliable coverage throughout your trip.

To learn more about how to shop for a local eSIM plan while traveling, read our full guide here.
The post Why Frequent Travelers Should Be Using an eSIM appeared first on Clark Howard.

Are you sick and tired of video streaming services raising prices on you in 2026? You’re not alone.

People who called themselves “cord cutters” when they ditched cable and satellite are now looking for a reprieve from rising streaming subscription costs.

And a value-oriented segment of the market is ready to deliver: FREE streaming services.

Money expert Clark Howard has been consistent in his messaging that a digital antenna and a few free streaming TV services downloaded to your smart TV are a great way to get entertainment without putting a dent in your monthly budget.

For example, you could save more than $1,000 per year by ditching YouTube TV and Netflix for this strategy.

The cool part is that you can try all these free services with no obligation before you commit to any “permanent” changes to your streaming strategy.

But where do you get started? That is what this article is all about.

There are plenty of free options, but service quality varies. I have reviewed more than 20 free services for Team Clark and have created an in-depth guide to the best free streaming services.

Let’s talk about the services I’d suggest for “getting started” and which services are most likely to impress you.

Start with the Big 3 of Freebie TV

After reviewing a bunch of these freebie TV apps, it became clear that many air the same “dated” television series, a hodgepodge of movies you may have never heard of, and a similar menu of free, ad-supported (FAST) channels.

But three stand above the rest in terms of quality of recognizable content, some live news and weather, user-friendly apps, and even some original content that you can’t get anywhere else.

And it’s probably no surprise that each has the backing of a major media company that can provide the tools and content to succeed in the space.

So, without further introduction, I believe every cord cutter should have these three free services on their streaming device and in regular rotation:

Pluto TV Review

Parent Company: Paramount Skydance

Website: pluto.tv

FAST Channel Count: More than 400

Recognizable TV Series: “The Walking Dead”, “Cheers”, “CSI: Crime Scene Investigation”, “X-Files”, “Star Trek: The Original Series”

Live News and Weather Channels: CBS News 24/7, NBC News Now, ABC News Live, CNN Headlines, BBC News

Kids Content Brands: Dr. Seuss, Dora the Explorer, Garfield, Rugrats, Peppa Pig

Tubi TV Review

Parent Company: FOX

Website: tubitv.com

FAST Channel Count: More than 250

Recognizable TV Series: “Gordon Ramsey’s Hell’s Kitchen,” “The Twilight Zone,” “Everybody Hates Chris,” “Dawson’s Creek,” “The First 48”

Live News and Weather Channels: LiveNOW from Fox, Fox Weather, NBC News Now, ABC News Live, Scripps News

Kids Content Brands: Looney Tunes, Pokémon, Lego, Transformers, Tom and Jerry

Roku Channel Review

Parent Company: Roku

Website: therokuchannel.roku.com

FAST Channel Count: More than 500

Recognizable TV Series: “Cold Case,” “Frasier,” “Nashville,” “Heartland,” “Bewitched”

Live News and Weather Channels: CBS News 24/7, NBC News Now, ABC News Live, LiveNow from Fox, Weather Nation

Kids Content Brands: Garfield, The Magic School Bus, Barney & Friends, Teletubbies, Caillou

Note: The content offered on FAST services changes often. The information provided about these services is accurate as of the article’s publish date. Check out the service’s app or website for the latest content offerings.

Supplement with These 2 Targeted Freebies

The three services mentioned above will give you a broad base of on-demand TV series and movies, hundreds of the best FAST channels, plenty of kids’ content, a variety of live news options, and even some original content sprinkled in.

But many of you will still feel like there’s a gap in your content options compared to a live TV streaming service.

So I have a couple more suggestions for making sure you’re getting a well-rounded free streaming experience:

Zeam: If you’re not getting local channels for free via a digital antenna, you’re probably going to feel the pain of missing your local news via the three mentioned above. Luckily, there are a few free streaming services out there dedicated to delivering access to local news content. One of the emerging options I like is Zeam, but you may also find luck with Local Now.

YouTube: No, I’m not talking about paying for YouTube TV. I’m talking about the old-fashioned YouTube app. There are literally millions of options for free content on this platform, which is now available via a smart TV app. Most creators, including many of the networks you’re paying for, post high-definition content on the platform for free. It’s a great spot to catch popular podcasts, docuseries, viral content creators, and even some live sports. This will give you a taste of the “here and now” in the world of social content as part of your free streaming experience.

Bottom Line

Everyone’s taste in free streaming content is a little bit different.

So, test several platforms, find the ones that offer the content you like most, and ditch the rest to curate a free streaming experience that makes your household happiest.

I most often recommend Pluto, Tubi, and The Roku Channel to people interested in saving money on streaming TV. I find that if streamers can’t find one useful, they may not be ready to ditch paid subscriptions just yet.

Do you have these free streaming services on your device? What are some of your other favorites? We’d love to hear your thoughts in the Clark.com community.
The post 5 Free Streaming Services All Cord Cutters Should Have appeared first on Clark Howard.