Money Management

You may be entitled to compensation as a Walmart shopper. Read on to learn more. [[{“value”:”

Many people shop at Walmart regularly for the savings involved. The big-box giant is known for its competitive prices on a wide range of products, including household essentials and groceries.

But some grocery shoppers may be entitled to compensation from Walmart due to a recent settlement. So it pays to see if you’re eligible for some sort of payday.

The details surrounding the Walmart settlement

Walmart was sued on the basis of overcharging customers for products that were sold by weight. The suit claims that Walmart falsely inflated the price of certain items or mislabeled the weight of bagged citrus products by listing the weight as higher than the actual weight.

As a result, Walmart has reached a settlement to pay $45 million to customers affected by its practices. If you’re someone who purchased items sold on a per-weight basis or bagged citrus products at a Walmart location in the U.S. or Puerto Rico between Oct, 19, 2018 and January 19, 2024, you may be eligible for a cash payment, the amount of which will depend on what you bought.

You may be entitled to:

$10 in compensation if you don’t have a receipt, but you can attest to having bought up to 50 weighted goods and/or bagged citrus during the aforementioned period$15 in compensation without a receipt or other proof of purchase, but you can attest to having purchased 51 to 75 weighted goods and/or bagged citrus products$20 in compensation without a receipt or proof of purchase, but you can attest to having purchased 76 to 100 weighted goods and/or bagged citrus$25 without a receipt, but you can attest to buying 101 or more weighted goods and/or bagged citrus.Up to $500 with receipts or other proof of purchase of each weighted good and/or bagged citrus (you’ll receive 2% of the total cost of these goods with a $500 cap)

How to get your piece of the action

If you shopped at Walmart between Oct. 19, 2018 and Jan. 19, 2024, then it pays to see if you’re eligible for compensation. It’s doubtful you’d have receipts from Walmart dating back to 2018. Heck, you may not even have receipts from this past January if you’re not someone who keeps them on hand for tracking or budgeting purposes. However, you can try to look up previous purchases on Walmart’s website.

Meanwhile, you can file a claim online to get your cut of the Walmart settlement. But do note that you only have until June 5 to do so.

Doing the legwork to check on your Walmart spending may be a bit of a hassle. But if you’re someone who’s been struggling to save money, then it could be well worth the effort if it puts a bit of extra cash into your pocket.

Meanwhile, it’s a good idea to be vigilant when you’re shopping for groceries, since mistakes can happen. If you’re buying bagged produce that you pay for by weight, find a scale in the produce area to confirm that the weight printed on the label matches the actual weight of the products. If not, find a store manager to assist.

Also, pay attention to whether you’re being charged on a per-weight or per-unit basis. Things can get muddled in the produce department in particular, but it’s important to know if you’re paying $0.49 for a single banana versus $0.49 per pound of bananas.

Finally, always check your receipts before leaving the supermarket, whether you’re doing self-checkout or getting help from a cashier. You never know when a given item might accidentally get rung up twice, and you don’t want the extra charge on your credit card. And you also don’t want to be charged $3.99 a pound for organic apples when you purchase the non-organic ones costing $1.99 a pound to save money.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

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Tying up more cash in the bank helps me grow my money better. Read on to see how. [[{“value”:”

I’m someone who’s always been what I’ll call financially paranoid. (That may not be an official term, just FYI.) Even during periods when I’m saving consistently, I’m often worried about just not having enough money. It’s largely for this reason — paranoia — that I opt to maintain a larger emergency fund than most people need.

The core of my work is writing about personal finance, and I often tell readers to aim for three to six months’ worth of essential bills in an emergency fund. The logic is that a sum that size would likely be enough for the average person to get through a period of unemployment, assuming we’re not in an extreme recession.

I, on the other hand, choose to keep 12 months’ worth of living expenses in my savings account for emergency purposes. And OK, that’s not only due to paranoia. I also opt to save more because I’m a freelance writer.

If all of my clients were to suddenly stop wanting my services, I’d have no recourse. I wouldn’t be eligible for severance, and I wouldn’t get unemployment benefits. So the way I see it, I need more financial protection than the typical salaried worker.

Because I keep so much cash in savings, you could argue that I’m doing myself a bit of a disservice. See, right now, savings accounts are paying somewhere in the range of 4%, but that’s historically not been the case. A more reasonable assumption is getting 2% back on your savings over time.

The stock market, on the other hand, has averaged an annual 10% return over the past 50 years. And it doesn’t take a math genius to know that it’s better to get a 10% return on your money than 2%.

As such, I could conceivably take some of the money I have in emergency savings and transfer it into a brokerage account. But I’m not going to do that.

See, I strongly believe that having a larger emergency fund helps me be a better investor. Here’s why.

When you take fear out of the equation

Let’s say you don’t have much of an emergency fund, but you happen to have a $10,000 stock portfolio. If you need to make a $3,000 car repair, what you could do is tap your investments to drum up the cash.

That’s not a terrible thing if your portfolio’s value is up or steady at the time. But what if you’re forced to liquidate $3,000 in investments at a time when their value is down? In that case, you’re locking in losses in your portfolio rather than riding things out.

A big reason I keep extra cash in my emergency fund is that I frankly don’t ever want to have to do that. I don’t want to land in a situation where I have to lose money on stocks because I need cash at a time when the market is down. And the logical part of me knows I shouldn’t have to because I have extra emergency savings.

My larger emergency fund helps me invest with more confidence and take on more risk in my portfolio when it’s appropriate to do so. Granted, I’m not really the type to chase speculative investments (no crypto for me). But I may choose to buy shares of a stock that has potential but I’m not totally sold on if I know full well that I’ll have plenty of time to see that stock take off.

It’s OK to load up on cash — to a point

I don’t regret keeping a year’s worth of expenses in the bank, even though I know I’d make more on some of that money by investing it in stocks. At the same time, I do acknowledge that it would probably not be smart to keep more than a year’s worth of bills in savings.

If I were to lose my job and fail to get any sort of writing gig for months on end after the fact, I know I wouldn’t just give up. I’d drive for a ride-hailing service or deliver pizzas or do whatever it took to earn some sort of income. So I’m comfortable not adding to my emergency fund at this point.

I’m also comfortable with the idea of losing out on higher returns on some of my cash because having it in savings gives me peace of mind. And sometimes, we pay more for peace of mind. It’s the reason many of us buy insurance, install alarm systems, and so forth.

If you feel that you need a larger emergency fund than the typical worker, don’t feel bad about the higher returns you’re potentially giving up by not investing that money. Instead, take the opportunity to invest your remaining funds with more confidence. And feel good about the fact that you most likely will not have to cash out investments when they’re down, due to a poorly timed unplanned expense.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Things can (and do) go wrong on vacation. Is travel insurance the protection you need on a cruise? Keep reading to learn more. [[{“value”:”

When you book most forms of travel these days, you’re often asked if you’d like to purchase travel insurance. Different airlines, cruise ships, and hotel brands might have different names for this, such as “vacation protection,” but these are optional products that are designed to make sure that if something goes wrong, you aren’t on the hook financially.

To be fair, I typically decline travel insurance for flying. Since all of the major airlines allow you to change your flight for free, if I get sick and can’t travel, I simply use the value of my ticket toward a future flight.

However, cruises are a different situation. Not only could you potentially get sick and miss the cruise altogether, but there are other things that could go wrong. What if you get so sick on board that you need to be medically evacuated back to the U.S.? What if severe weather in your hometown prevents you from getting to the cruise port?

With these and other potential scenarios in mind, here’s what you need to know about buying travel insurance for a cruise and whether it’s a good idea.

What does travel insurance cover?

Travel insurance is a type of insurance policy underwritten by an insurance company (not by the cruise line or airline itself). While the exact coverage can vary, here are some of the things it will typically cover on a cruise:

Trip cancellation protectionTrip interruption coverage in case you need to come home earlyBaggage insurance to cover loss, damage, or theftBaggage delay protection, which reimburses for essential items while you wait for delayed luggageMedical coverage (Note: U.S. health insurance typically doesn’t apply when on a cruise ship or when traveling internationally.)Evacuation protection, in case you need to be medically evacuated back to the U.S. while traveling

In addition, the protection plans offered directly through the cruise lines might have additional benefits. For example, Carnival’s Vacation Protection provides travel insurance underwritten by Nationwide, but also makes it easier to get a refund if you need to cancel.

Not only does it refund 100% of your trip’s cost if you need to cancel for a covered reason like weather or illness, but you can cancel for any reason whatsoever and get 75% of your money back (you usually can’t get a refund at all once the final payment date has passed).

Different options to consider

For travel insurance, there are two main options: You can buy single trip coverage (this is what the cruise lines and airlines offer) that will protect you on one specific vacation. Or you can buy an annual travel insurance policy directly from an insurance company. For example, Allianz is a major travel insurance provider, and in full disclosure, I have a policy for myself and my family through them.

If you travel more than once or twice per year, especially on cruises, it’s worth comparing the costs, as an annual travel insurance policy can often be more budget-friendly (and often provides better coverage). On the other hand, if you’re taking a once-in-a-lifetime trip, simply buying protection through the cruise line can be a better way to go.

It’s also worth noting that some travel credit cards have their own travel protections. They can provide their own trip cancellation insurance, trip interruption and delay coverage, baggage insurance, and a few other benefits if you use your card to pay for the trip. They may not, however, provide the medical and evacuation coverages that are highly important while cruising, so be sure to research all the details ahead of time.

Make sure you’re protected one way or another

The bottom line is that when taking a cruise, it’s highly advisable to make sure you have some sort of travel protection, especially for medical emergencies. The best choice for you depends on how often you plan to cruise, as frequent cruisers can typically save money by purchasing an annual travel insurance policy. But if you aren’t sure, it can be a smart idea to compare the costs before deciding.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has positions in American Express. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Some personal finance gurus hate credit cards. See why credit card debt is nothing to be afraid of (or ashamed about). [[{“value”:”

Many Americans have a love-hate relationship with credit cards. On the one hand, credit cards are at the center of people’s everyday lives and personal finances. Everywhere you go, people are using credit cards to pay for restaurant meals, buy gas and groceries, or buy stuff at the mall.

But on the other hand, credit cards are often attached to a sense of guilty pleasure or social stigma. Credit cards are widely seen as a must-have for most people’s financial lives, but credit card debt is shameful. A recent survey from Wells Fargo and The Female Quotient found that people are more likely to talk about their weight and their prescription drugs than they are to talk about their credit score or their “non-essential spending.”

I don’t want people to feel ashamed for using credit cards or having credit card debt. It’s not helpful or constructive to treat a financial product like an inherently bad, dangerous, dirty secret. People can’t improve their personal finances or take meaningful steps forward in life if they are living in fear, shame, and dread.

Let’s look at a few reasons why credit cards are actually a good thing — and why you should feel better about yourself and your money, even if you’re carrying a credit card balance.

1. Debt is a financial tool, not a moral issue

It’s true that too much credit card debt can be bad for you. Sometimes people get in too deep with credit cards; they can never pay off the debt, and their best choice ends up being to declare bankruptcy. But that doesn’t mean those with credit card debt are bad people.

Some personal finance gurus who annoy me have a quasi-religious, moralistic view of credit card debt. I don’t agree with their beliefs, and you don’t have to either. Debt is not automatically bad! It’s just a tool to buy yourself some time and give yourself some options.

Yes, it can be bad for your finances to get buried in debt that you can’t afford to repay. High-interest debt is worse than low-interest debt. But sometimes even “bad” debt is the right tool to serve as emergency savings, to solve problems and make your life better when you need money the most.

2. People deserve to have freedom of choice about their money

One of the things that’s supposed to be so great about the free market economy is that people have freedom of choice. As an American adult, you get to choose what to do with your own money. You don’t have to ask the government or your spouse or your boss for permission.

It wasn’t very long ago (1974) that women weren’t allowed to open credit cards unless their husband gave permission. I don’t like that paternalistic attitude. People deserve to control their own financial choices. People even deserve to make “bad” choices with their money. Everyone needs to splurge with “fun money” now and then, or take a vacation that they maybe can’t perfectly afford. Your money, your choice.

3. People need to spend money

Americans often get criticized for overspending. But…according to whom? What does “overspending” even mean, and by whose authority do we judge? Why do critics so often say “Americans overspend” and not “Americans are underpaid”?

Have you seen everyday life in America? It’s expensive! This country is perfectly engineered to keep people reaching for their credit cards. Life in America is like living inside a slot machine — flashing lights, loud noises, tempting offers constantly popping up!

We all have things we want to buy, bills we need to pay, and experiences we want to have. And we need to have some fun along the way. Sometimes you have cash on hand, sometimes you need to borrow, and sometimes you get a little overextended. There’s no need to feel shame about using credit cards; it’s just a different method of payment.

4. People can’t always be “prudent” and “responsible”

What if you have a family emergency and you need to buy a plane ticket tomorrow to fly across the country for a funeral? What if you don’t have a pristine emergency fund with three to six months of cash in the bank? (Most Americans don’t; the typical American savings account has $1,200 in it.)

Sometimes in life, you need to borrow. Fix your car so you can keep driving to work and picking up your kids at school. Take that trip and make memories with your loved ones, and pay off the debt later. There are seasons of life where you need to spend more, and there are seasons of life where you’ll spend less and save more. None of us are getting out of here alive, and it truly is possible to save too much money. Live. Love. Spend.

(But also: Use a budgeting app to keep track of where your money is going, and make a plan to pay off your debt. Not because it makes you a better person, but for your own long-term financial wellness.)

Bottom line

I suppose in an ideal world of Personal Finance Guru Heaven on Earth, no one would spend any money on their credit cards until they had three to six months of emergency savings in the bank and a maxed-out 401(k) and were making only optimal, frugal choices like a well-programmed savings-bot.

But real life is messy and complicated! Lots of people are struggling with high prices and low incomes. And even higher-income people don’t always make rational, logical choices with their money. Using credit cards is not a character flaw. Don’t shame yourself (or others) for the simple act of “paying for things.”

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Financial experts are always recommending budgeting, but it’s not right for everyone. Check out the methods I use to manage money without following a budget. [[{“value”:”

Budgeting is often treated as the be-all and end-all of financial advice. You’ve probably heard plenty about how following a budget is so important, so essential, and so on. Personally, I think it’s some of the most played-out advice and doesn’t work for a large portion of the population.

Case in point, only about one-third (32%) of Americans prepare a budget, according to a Gallup poll. I’m part of the group that doesn’t. I tried in the past, but I didn’t find it helpful. In fact, I’m doing much better financially now without a budget than I ever was with one.

If budgeting works for you, that’s great. But if not, there are other ways to manage your money. Here are my money rules that have worked better than budgeting for me.

Focus on the biggest, fixed expenses

I don’t track my expenses, but I still keep my monthly spending low — normally under 50% of my income. Instead of worrying about every expense, I focus exclusively on the largest, fixed expenses.

For many people, this is housing and possibly a car payment. I don’t have a car, so my only concern is rent. I’m careful about how much I spend on rent, because I know that if I overspend, it’s not a one-time issue. I’ll be paying more than I should on my largest expense, every month. If I ever need to take on another big expense, like a car payment, I’ll use the same approach.

With everything else, I already know that my spending won’t be an issue, so I don’t see the need to track it. My grocery bill may be $50 higher some months than others. And if I wanted, I’m sure I could buckle down and cut my food spending.

But do I want to give myself a firm spending limit on groceries? And tell myself “no smoked salmon this time, not in the budget?” Definitely not. I’d rather just spend a little more.

Pay credit cards in full every month

I put all my expenses on my credit cards, except when that’s not an option. I’ve been doing this for years, both because it’s convenient and because I like to earn points using travel credit cards. Those points help me save big every year on vacations.

The downside of using credit cards is the possibility of going into debt. Credit card debt is one of the worst kinds of debt, since credit cards have high interest rates.

I have a rule that I pay my credit cards in full every month. To make sure of it, and to guarantee I never miss a payment, I set up autopay on my credit cards. It pays the full statement balance by the due date, so I never get charged any interest.

Save and invest every month

One benefit of budgeting is that it helps you save and invest, but you don’t need a budget to do that. In my case, I’ve set savings and investing goals. I have an amount I save and an amount I invest every month, without fail.

To give you an example, you could save 10% of your income and invest 10% of your income. If you’d like to focus more on investing, you could save 5% and invest 15%. And if that’s more than you can manage, another option would be saving 5% and investing 5%.

You can make this easier by automating it. Once you decide how much you want to save, set up an automatic transfer to your savings account. You can also set up automatic investments with most types of investment accounts, including:

Brokerage accountsIndividual retirement accounts (IRAs)401(k) plans

Maximize income

To be honest, this has had the biggest impact on my finances. I’ve worked very hard to increase my income. I set a new income goal at the beginning of every year, always aiming to improve on what I earned the year before.

When you earn more, it makes life easier. It’s easier to pay your bills, it’s easier to build your emergency fund, and it’s easier to save enough for retirement — as long as you aren’t spending all your additional income.

See how you can make the most of your earning potential. If you’re happy in your current job, you could talk to your employer about how to get a raise or promotion. It never hurts to keep an eye out for higher-paying job opportunities, either. Another option is launching your own business. Freelancing or owning a small business can both be great paths to earning more.

I’d probably spend less with a budget, but it’s not for me. My outlook is that if I’m saving, investing, and paying my credit cards in full every month, I’m doing well financially. If you’re not big on budgeting, there’s nothing wrong with that. Instead of trying to make it work, find money rules that work for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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