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Polestar — formerly a performance division of Volvo
VLVLY,
-0.99%
but now an automaker on its own two feet – is the latest company to experiment with a new type of car ownership.

Polestar 2 owners in Europe can now purchase additional speed for their car. The company says the system will be going world-wide in the near future, so American owners will get their chance.

Also see: Why is this modest car such a magnet for thieves?

To get the upgrade, owners simply log into the Polestar Extras web shop. From there, they can authorize the download and pay for it (currently, it costs €1,000 – about $1,128). Once the payment is authorized, the car automatically downloads a software update over the air.

The update adds about 67 horsepower and makes extra acceleration available in a band between about 40 and 80 mph. Polestar says it shaves a 10th of a second off the car’s 0-60 mph time, bringing it to 4.4 seconds.

“The upgrade highlights how connected technologies can transform the relationship a car company has with its customers,” says Polestar CEO Thomas Ingenlath. The Polestar 2 “is such a fun car to drive already, but with this upgrade, we can offer even more to our customers who might be after a little extra excitement,” he adds.

You might like: The 2021 Jaguar XF is stylish in its own way, and it drives beautifully

Polestar is not the only company experimenting

Polestar isn’t the first automaker to experiment with charging customers to modify their cars with over-the-air updates.

It’s a concept other automakers have toyed with in recent years. In 2019, BMW experimented with offering Apple
AAPL,
+2.80%
CarPlay for an annual fee – which meant shipping cars with the capability but turning it on only when customers paid for it. The company dropped the idea for the 2020 model year.

But Audi has run with it in Germany and Norway, where buyers of e-tron and e-tron Sportback electric vehicles (EVs) get upgraded Matrix LED headlights for a free trial period and then a monthly fee.

In a presentation to investors last year, Hyundai
HYMTF,
+1.46%
said it planned to offer “features on demand,” though it didn’t say when.

Volkswagen may be the automaker that has taken this idea the farthest. In March, the company announced a concept car called “Project Trinity.” A sporty EV, the Trinity would allow buyers to rent performance features – such as additional horsepower or all-wheel-drive – for small fees based on mileage or short-term rental periods.

Automakers betting on a big market

Polestar’s new download is a purchase, not a rental. Owners pay for the additional horsepower once and unlock it for the life of the car.

It’s also not cheap. The number of buyers able and willing to drop an additional four figures into their car to tease more performance out of it has always been small. It’s big enough to support an entire industry of aftermarket performance parts and tuner shops, but far smaller than the number of car owners overall.

Also read: The popular Ford Bronco Sport features a tiny, potentially industry-changing part that no other vehicle has

Yet automakers are betting that more people will be willing to download an upgrade than were willing to pay to have one installed at a shop.

According to Automotive News, Stellantis
STLA,
+1.78%
— the parent company of Dodge, Jeep, Ram, and several other brands – told investors this week it expects to make around $23 billion from “software-enabled product offerings and subscriptions” by 2030.

This story originally ran on KBB.com.

Musk has previously indicated that additional variants of the Cybertruck will have fewer motors, a move that would reduce costs (not to mention power). It’s unclear where that plan currently stands, though the Cybertruck has been beset with various delays.

When the Cybertruck was unveiled, Musk claimed a single-motor version would be priced at just $39,900. However, Tesla rarely sticks with its low initial prices. A $35,000 Model 3 was briefly available for order, but the company currently charges nearly $10,000 more for its least-expensive variant.

Don’t miss: 9 of the wildest financial crime stories of 2021

At that unveiling, Musk also claimed that the top-of-the-line Cybertruck would employ three motors rather than the 4-motor setup he confirmed on Twitter.

Musk did not comment on when production will begin, although the automaker has pushed back production to at least 2022 after it begins building its Model Y at its new assembly plant on the outskirts of Austin, Texas. The Cybertruck is also slated to be built in Texas. 

Read next: Elon Musk let Twitter followers decide whether he should sell 10% of his Tesla stock. They said yes.

This story originally ran on Autotrader.com.

The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.

1. Prioritize saving for retirement

In an ideal world, you’d start saving with your first paycheck and keep going until you’re ready to retire. You also wouldn’t touch that money until retirement. Even if you can’t save 15% of your pre-tax income for retirement, as recommended by Fidelity and other financial services firms, anything you put aside can help give you a more comfortable future. Aim to take full advantage of any company match you get from a 401(k) at work — that’s free money — and borrow against or cash out retirement funds only as a last resort.

2. Save for a rainy day

You may have read that you need an emergency fund equal to three to six months of expenses, but it can take years to save that much. That’s too long to put off other priorities, like saving for retirement. A starter emergency fund of $500 can be your first goal, and then you can build it up. While you’re saving, try to create other sources of emergency cash, such as a Roth IRA (you can pull out your contributions at any time without taxes or penalties), space on your credit cards or an unused home equity line of credit.

See: How much should I invest? Getting started investing

3. Save for college

Got kids? Open a 529 college savings plan and contribute at least the minimum, which is typically $15 to $25 a month. Retirement savings comes first, but anything you can save will reduce how much your child may need to borrow. Also, research shows the simple act of saving for college increases the chances that a child from a low- to moderate-income family will go to college.

4. Borrow smart for college

A college degree can pay off in higher earnings, but lenders may allow you to borrow far more than you can comfortably repay. If you’re borrowing for your own education, consider limiting your total debt to what you expect to make your first year out of school. If you’re a parent borrowing for a child’s education, aim for payments that are no more than 10% of your after-tax income and that still allow you to save for retirement. If your payments are higher than 10% of your after-tax income, investigate income-driven repayment plans that could bring down your costs.

5. Use credit cards as a convenience

Credit cards offer convenience and can protect you from fraud and disputes with merchants. But credit card interest tends to be high, so don’t carry credit card balances if you can avoid it. If you routinely pay your balances in full, look for a rewards card with a sign-up bonus that returns at least 1.5% of what you spend.

Good read: 9 of the wildest financial crime stories of 2021

6. Finance your home smartly

If you want to be a homeowner, the best time to buy your first home is when you’re financially ready and in a position to stay put for a few years. Opt for a mortgage rate that’s fixed for as long as you plan to remain in the home, and don’t make extra payments against the principal until you’ve paid off all other debt and are on track for retirement.

7. Buy used vehicles and drive them for years

Buying a car right now isn’t a great idea; supply-chain kinks and other pandemic-related issues have inflated the cost of both new and used cars. In general, though, buying a used car can save you a ton of money over your driving lifetime, as can driving your car for many years before replacing it. These days, a well-maintained car can last 200,000 miles without major issues, according to J.D. Power. This means you can get roughly 13 years of service out of your car if you drive it 15,000 miles a year. Ideally, you would pay cash for cars. If you need to borrow, try to limit the term of your loan to a maximum of five years.

Also see: These are the cars that cost the most and least to insure

8. Insure against catastrophic expenses

Use insurance to protect yourself against catastrophic expenses rather than smaller costs that you can easily pay out of pocket. If you have sufficient savings, consider raising the deductibles on your policies to save money on premiums. Be careful about high-deductible health insurance policies, though. Having a high deductible could cause you to put off medical care, and it’s better to err on the side of safety when it comes to health.

More From NerdWallet

Liz Weston writes for NerdWallet. Email: lweston@nerdwallet.com. Twitter: @lizweston.

The nonpartisan Senior Citizens League received more than 200 emails recently “with many retired and disabled senders describing the dire situations they face as rapidly rising inflation makes it impossible to pay the bills,” the group said in a statement.

“This is a tough time to be on a fixed income,” said Lisa A.K. Kirchenbauer, a Certified Financial Planner and founder of Omega Wealth Management in Arlington, Va.

But Kirchenbauer and two other financial advisers I interviewed have a few useful ideas for low- and moderate-income retirees during this time of spiking inflation. I’ll share them below, along with some tips of my own.

The grim inflation outlook ahead

Sadly, the outlook is getting grimmer for prices to settle back down anytime soon.

The Organization for Economic Cooperation and Development now expects inflation in the U.S. to average 4.4% in 2022. And an Allianz Life survey found that 78% of Americans expect inflation to get worse over the next year; 70% worry inflation will keep them from affording the lifestyle they want in retirement.

This winter, the U.S. Energy Information Administration forecasts, U.S. households will spend 54% more for propane, 43% more for heating oil, 30% more for natural gas and 6% more for electric heating.

Gasoline is already up by more than 50% from a year ago; the Zillow
Z,
-3.40%
Observed Rent Index rose a record 14.3% year-over-year in October and Medicare prescription drug premiums will increase almost 5% next year, according to the Centers for Medicare and Medicaid Services.

Yes, Social Security will offer a 5.9% cost of living adjustment (COLA) increase in 2022; the highest in 40 years. The 2022 COLA will increase an average monthly retirement benefit of $1,565 to roughly $1,657. “This would be the highest COLA that most beneficiaries living today have ever seen,” said Mary Johnson, Social Security and Medicare policy analyst for The Senior Citizens League.

Read: The largest COLA hike in 40 years is coming to Social Security in 2022 — what that means for your retirement

But there will also be a 14.5% increase in Medicare Part B premiums for 2022, which will push the standard monthly premium from $148.50 this year to $170.10. (Medicare Part B covers doctors’ appointments, outpatient hospital services and some medical services not covered by Medicare Part A.)

To assist retirees on fixed incomes grappling with higher expenses, the Senior Citizens League is urging Congress and the Biden administration to issue $1,400 stimulus checks to Social Security recipients.

Kirchenbauer’s view: “I think a $1,400 stimulus check is a great idea, but that’s only going to go so far. My guess is that we will be dealing with higher prices for at least a year. So, lawmakers need to be thinking about what other support they can give to seniors in terms of tax breaks and stimulus, as we are doing for families with children.”

Also see: I’m done with Illinois! I want to retire in a small town in a neighboring state — so where should I go?

Zaneilia Harris, a Certified Financial Planner and president of Harris Wealth Management Group in Upper Marlboro, Md., told me: “I think the true strength of a nation is how it helps those less fortunate, the young, and its non-wealthy retired population.”

But how can retirees on fixed incomes weather inflation right now?

Advice from 3 money pros

Here’s what Harris, Kirchenbauer and Marguerita M. Cheng, a Certified Financial Planner and CEO at Blue Ocean Global Wealth, in Gathersburg, Md., suggest, followed by my recommendations:

Zaneilia Harris:

“It really comes to evaluating your household expenses and the necessities. Use portable heaters in the main rooms to reduce using natural gas; heat only the rooms that you occupy during the day. Also, use [credit card] points toward reducing the price at the pump.  

“Seek help from local nonprofits or churches. In my hometown, a local church has a pantry that offers free food weekly; my aunts help with setting up the pantry and say people in the town can be too proud to access the food. Sometimes pride has to be set aside to receive assistance.” 

“Use the AARP card to get discounts on items and services as much as possible, whether that’s cellphones and cellphone plans or home- and car insurance coverage.” 

Lisa A.K. Kirchenbauer:

“This year, it’s especially important to reassess your medication costs through your Medicare Part D coverage. It’s also important to look carefully at your monthly expenses to see where you can cut costs. Call your utility, cable and wireless providers to see if you can get a better deal.

“Look into local programs in your city or county that might be able to help senior residents with support and services.”

Marguerita M. Cheng:

“The first thing is do your budget. Look at how much you have coming in and your predictable expenses. You will need a liquidity basket to pay those regular bills. That will be a mix of cash and maybe funds held in an online savings account, money-market account or shorter-term CDs, if that’s appropriate.

“Make sure that you have money for the here and now and the liquidity access to pay your bills.

“One of the best ways which we can combat inflation is with stocks or stock mutual funds. The stock market’s average annual gain outpaces inflation over the long run, but you don’t want to put all your money there. The amount of money you should have in stocks, bonds and cash is a function of your time horizon, your risk tolerance and your cash flow need for expenses.

“For many people, the easiest way to stay invested is through a target-date fund. You can pick a fund with a year, such as 2027, in its name. The fund manager then divides up investor’s cash among stocks and bonds, shifting that allocation to a more conservative mix as the target date approaches or soon after.”

Related: New proposal would improve Social Security’s finances and modestly enhance benefits

My advice to you

Now for my advice:

If you’re between 62 and 70 and haven’t started taking your Social Security benefit, wait if you can. Social Security’s rules essentially give you an 8% bigger benefit for each year you postpone claiming benefits after your Full Retirement Age (currently 66 to 67), until age 70. Put another way, if you’re now 66 and wait until 70 to start claiming, you’ll see 32% larger benefits than if you filed at your Full Retirement Age.

Consider investing in Treasury inflation-protected securities (TIPS) or U.S. savings bonds known as I bonds. TIPS are government-backed bonds specially designed to protect you from inflation because their return is tied to the Consumer Price Index. They pay interest every six months, and the interest is exempt from state and local taxes. You can buy TIPS with no fee from the U.S. Treasury in increments of $100. Alternatively, you can buy a mutual fund that purchases TIPS for its investors.

As Next Avenue explained in “How to Earn More Money on Your Savings Safely: I Bonds,” the government offers savings bonds whose interest rate is tied to the inflation rate. That’s why they’re currently paying 7.2%. You can buy them in denominations of $25, $50, $100, $250, $500 and $1,000.

Read next: Seniors beware: The FBI says these are the 10 biggest online scams

If possible, work with a fee-only financial adviser who is also a fiduciary — a money pro required to put your interests first. This kind of an adviser will take a holistic approach to your financial life and that can be extremely helpful in times like this.

Kerry Hannon is the author of “Great Pajama Jobs: Your Complete Guide to Working From Home.” She has covered personal finance, retirement and careers for the New York Times, Forbes, Money, U.S. News & World Report and USA Today, among others. She is the author of more than a dozen books. Her website is kerryhannon.com. Follow her on Twitter @kerryhannon. 

This article is reprinted by permission from NextAvenue.org, © 2021 Twin Cities Public Television, Inc. All rights reserved.

More from Next Avenue:

S&P cited the central bank’s cutting of interest rates while inflation has been rising for the negative outlook. “In our view, the current monetary easing and significant Turkish lira depreciation will further weigh on inflation, which could peak at about 25%-30% year-on-year in early 2022. Meanwhile, we project it will also lead to net general government debt increasing by an additional 8% of GDP in 2021, compared with our previous expectation,” the agency said.

The Turkish central bank, pressured by President Tayipp Erdogan, may cut interest rates by another 1 percentage point this week. It’s already cut rates by 4 points since September.

The Turkish BIST 100
XU100,
+3.08%
stock market index rose 2.7%. Over 2021, the U.S.-listed iShares MSCI Turkey ETF
TUR,
+1.07%
has dropped 25%.

The Turkish woes didn’t extend to Continental Europe, as the Stoxx Europe 600
SXXP,
+0.70%
advanced 0.4%. Markets are in a holding period between last week’s U.S. inflation data, and this week’s key interest-rate decisions from the Federal Reserve, the Bank of England and the European Central Bank.

Strategists at UBS don’t expect the equity rally to be derailed by inflation fears. They expect global central banks to be adding liquidity through 2022, note markets have already priced in faster tightening by the Fed, and expect inflation pressures to decline next year. “We believe markets can continue take a higher inflation reading in their stride, though additional volatility remains a risk,” they said.

Of stocks on the move, Vifor Pharma
VIFN,
+14.10%
rose 15% after confirming acquisition talks with Australia’s CSL, though no decisions have been made.

Telecom Italia
TIT,
+3.63%
rose 4% after an Italian newspaper report that KKR could proceed with its takeover bid without the company allowing due diligence.