Since the overall economic forecast has been affected by the conflict in the Middle East, consumers are searching for new ways to economize. One way to lower discretionary spending is to consider a joy-based budget that makes it possible to enjoy favorite activities. Reviewing a household’s various insurance premiums may provide savings. And home buyers in the Midwest and Sun Belt may have more opportunities to buy than they realize.
Home Financing
Midwest, Sun Belt Are Best Homebuyers Markets for 2026
While the last years have been challenging for home buyers and sellers alike, new opportunities are here. Recently, real estate marketplace Zillow released a report featuring the most buyer-friendly housing markets for this year.
These cities and metro areas:
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May offer affordable options as home values are currently falling but are expected to see increasing values in the years ahead.
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Share affordable pricing, based on the share of income a median earner would pay to buy a typical home in the area (assuming a 20% down payment).
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Offer buyers more negotiating leverage. Zillow determined this by reviewing each city’s inventory numbers, including days on market and numbers of price cuts.
Here are the top 10 in ranked order:
1. Indianapolis, Ind.
2. Atlanta, Ga.
3. Charlotte, N.C.
4. Jacksonville, Fla.
5. Oklahoma City, Okla.
6. Memphis, Tenn.
7. Detroit, Mich.
8. Miami, Fla.
9. Tampa, Fla.
10. Pittsburgh, Pa.
Indianapolis came in first with a $283,040 average home value. The share of median household income needed for an average mortgage payment is 26.9%.
Source: essence.com
Insurance
It’s Time to Spring-Clean Your Coverage
You may be busy preparing your taxes or spring-cleaning your home for the months ahead. However, it’s also a good time to review your insurance coverage.
If you were satisfied with your coverage when you first bought your policies, you may have thought it was a “set it and forget it” situation. But insurance should always protect you and your family from worst-case scenarios, and these often change.
As you begin to evaluate your coverage levels, it’s important to account for any changes that may have occurred in the last year. Here are some key examples that may influence each of your policies.
Your auto insurance will need a review if you’ve made any big enhancements to a vehicle, or if you’ve traded in a used car or truck for a new vehicle. You may also have some opportunities for reducing your premiums. For example, your age, or your car’s age, may now qualify you for a lower rate. If you have teenage drivers, their insurance costs will begin to drop when they’re in their early to mid-20s. Taking a defensive driving course may also save you money.
Homeowners insurance coverage can always benefit from an annual review, so you may want to do this just before your annual mortgage “anniversary” rolls around. If you carried out any upgrades during the last few months, such as replacing the roof or remodeling the kitchen, this could affect your coverage. In addition, asking other insurers for a quote may result in better coverage or a lower premium.
Life and health insurance requirements can change for a variety of reasons. For example, if you change jobs or get married, your coverage needs have changed — but you may also have new opportunities for savings. Welcoming a new baby also means you’ll need to review coverage.
After you complete your annual insurance review, you can look forward to the rest of the year knowing that your family and possessions are properly protected.
Source: magazine.northeast.aaa.com
In the News
Save More, Live Better with Joy-Based Budgeting
Since around 90% of Americans are cutting back on discretionary spending, chances are this is one of your financial strategies. However, you don’t have to give up what you really love doing in your spare time. Instead, consider joy-based budgeting.
Here’s how it works: instead of eliminating all discretionary spending, concentrate on the experiences that make you the happiest. Next, tweak your budget so you can still manage to pursue these. Or, you can reduce expenses in one area of your budget, so you can still afford your favorite activity.
Another benefit of joy budgeting is that it can help stop impulse buys, which can be major budget-wreckers.
A consumer banking analyst explained how joy-based budgeting works.
“It’s about being intentional with your money, so it supports what genuinely makes your life better. Instead of cutting everything out, you first identify the spending that brings you real joy — whether that’s experiences, time with loved ones, or meaningful hobbies — and then build your budget around those priorities while still saving consistently.”
Joy-based budgeting works in several ways. For example, if having dinner out with friends is something you particularly enjoy, you can economize by doing more cooking at home. This can increase your joy budget, so you can handle an occasional restaurant tab.
You can also create a joy budget by deciding what makes you the happiest. Perhaps it’s going to the movies, a favorite hobby, or music lessons. Then, after you’ve subtracted monthly living costs, put at least 20% towards savings and the rest towards the joy budget.
Source: essence.com
Credit and Consumer Finance
Managing Debt: A Two-Part Process
A February forecast from TransUnion, one of the three major credit reporting agencies, anticipates that unsecured personal loans will be the primary driver of new borrowing this year.
While this type of loan can help pay off existing debts, adjusting current and future spending to avoid new debt may be challenging. One reason for this: prices for essentials such as groceries continue to climb. The February 2026 Consumer Price Index (CPI) found that food prices have risen by 3.1% year-over-year, which resulted in more consumers paying for everyday expenses with credit cards.
This has resulted in more shoppers turning to balance transfers and personal loans to consolidate and manage their higher-interest debts. While this can help eliminate debt faster, it’s only half the equation. Unless the existing debt was created by a temporary situation, such as unemployment, a change in spending habits is mandatory.
Credit counselors have found that stress has contributed to overspending over the past years. Other consumers find it difficult to say “no” to advertising that encourages them to buy now, pay later. Once people have an understanding of the emotions around their spending, they can set realistic expectations for paying down their debts permanently.
Source: cnbc.com
Did You Know?
Three Expensive Myths about Downsizing for Retirement
Whether you’re just a year or two away from retirement or sooner, chances are you’re planning to do some downsizing. For example, you may be planning to sell the four-bedroom family home for something smaller and easier to manage. However, before you start packing, it’s wise to look at your future plans first. For example, if you’re planning to leave the suburbs behind for a popular resort or retirement area, this may impact your living costs more than you realize.
There are several myths about downsizing and retirement, including these three.
Myth 1. Moving is mandatory. Even though millions of people aged 62 and older are expected to downsize during the next decade, around 54% of those who own their homes are staying put. Reasons for this include their fondness for their community, their family ties, and the realization that moving could mean higher living costs and taxes.
Myth 2. Downsizing always improves your finances. A paid-off mortgage might lead you to expect a big profit when you sell your home, but that’s not always the case, especially if it hasn’t been updated recently. Another potential problem: being able to afford your next home. Housing prices have skyrocketed in the past five years. Recently, the Federal Reserve Bank of St Louis estimated the average sale price of a home during the fourth quarter of 2025 at $534,000.
Myth 3. Smaller homes lower your living expenses. Your destination is just as important, if not more, than the size of your next home. A 600-square-foot condo in a pricey neighborhood might exceed the price of a 2,000-square-foot house in a less expensive region. Smaller spaces may also make activities like entertaining difficult. If you already have a retirement destination in mind, you may want to begin your research sooner than later.
Sources: kiplinger.com