Money Management

I finally ended my Costco membership holdout and made my first visit to my local warehouse club. Find out what my first impressions were. [[{“value”:”

According to February 2024 data from Costco, the warehouse club boasts 130 million card-carrying members across 73.4 million households. Make that 130 million plus one. That’s right, after years of reading and editing seemingly endless articles about Costco and all its perks, I finally made the decision to join the fray and see what all the fuss was about.

I recently made my first shopping excursion to my local warehouse club. There were a lot of takeaways from that trip, but here are three big ones that other prospective Costco members might be interested to know.

1. Allow time to stop at the membership desk before shopping

I, like many Americans, am a big fan of shopping online. So, naturally, I bought and paid for my $60 Costco Gold Star membership using a credit card on Costco’s website. Upon completing my purchase, I was sent an email with a purchase confirmation and instructions to take a copy to Costco’s customer service desk to collect my membership card.

When I reached the store, the greeter directed me to where I could find the membership desk and I headed on over to get my card. I had to stand in a short line while representatives helped other customers, but when it was my turn, I was helped by a very friendly associate. While she looked up my info, she directed me to download the Costco app and showed me how to use it to set my local store and check Costco’s (historically lower) gas prices, and other neat app features. Handy!

While the associate assured me she doesn’t get commission for upgrading memberships, she did give me a spiel about the benefits to upgrading to an Executive membership (at an increased price tag of $120 annually), and also a brief sales pitch for the Costco credit card. I politely declined both offers and explained that I’d never visited a Costco store before and really needed to get my feet wet before I could determine if it would be worth it for me to upgrade.

After that, she snapped my photo, my ID card printed from the machine, and I was on my way. In total, I spent about 10 minutes at the membership desk completing membership housekeeping tasks before my shopping adventure could really begin.

2. Prepare to be overwhelmed

If, like me, you’ve never set foot in a Costco warehouse store, prepare to be overwhelmed. The warehouse is vast, and the layout was unlike any I’d experienced before. Upon entering, it looked a lot like a Best Buy, with electronics and appliances aplenty. I even spotted a mobile service provider with his own stand and materials. As I continued through the store, it turned into what resembled more of a large clothing retailer, except instead of items neatly hung on racks as far as the eye can see, garments were folded and displayed on tables, more akin to a yard sale.

It wasn’t until I made it to the back of the store (well, my local store anyway) that I finally hit the produce and grocery section. As I followed that around, I came to the refrigerated dairy, paper goods and cleaning supplies, pantry staples, and finally the pharmacy and over-the-counter meds right before hitting the checkout area.

If I had entered the store that day with a short list of items and hoped to make it in and out quickly, I would have been sorely disappointed. It took me an hour and a half to navigate, familiarize myself, and check out all sections of the store.

3. Checkout was a breeze

When you check out at your local grocery store, what are you used to? Likely, you enter a narrow lane with your cart, unload all your items, and wait as the sales clerk scans each item and bags it before you pay and return the bagged items to your cart.

That’s not how it works at Costco. At Costco checkout, the shopper enters on the left side of the checkout lane, while their cart goes to the right side, behind the checkout where the cashier stands. During my experience, two clerks worked together to separate and scan each item, and thoughtfully rearranged my items into neat stacks in my cart. I didn’t have to unload my items myself, and there is no “bagging” process, as Costco doesn’t provide them. Despite my cart that was near bursting with Costco’s bulk goodies, the whole checkout process was complete in under a minute. Impressive!

I’ll note that I did notice some self-checkout lanes as well, but due to it being my first visit, I didn’t quite have the confidence to give those a go yet.

Ready to take on future visits

My first Costco visit was a total sensory experience. A giant warehouse full of new sights, sounds, and smells awaited me that day. That first trip took me longer than I anticipate future trips will take, as I’m now a card-carrying member with a better idea of where to find the items I need and how to quickly pay and exit the store upon completion of my shopping.

One thing that I don’t expect to be different in future visits is the value I got from my Costco purchases. As it turns out, Costco was a boon for my personal finances, and I ended up saving more than the cost of an entire year’s membership fee in just one shopping trip. But alas, you’ll have to stay tuned, as that’s a story for another article.

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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 positions in and recommends Best Buy and Costco Wholesale. The Motley Fool has a disclosure policy.

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Rewards credit cards are popular, but not everyone uses them correctly. Discover the most important rule you must follow when using this type of card. [[{“value”:”

Rewards cards are a great way to save money, just by paying with a credit card. If you use a cash back card, you’ll earn a percentage back on every purchase. Or you can use a travel card and earn either points or miles redeemable for travel purchases.

It’s a valuable benefit, which is why these cards are so popular. More than half (56%) of consumers have cash back cards, and 49% have a rewards card, according to credit card research by The Motley Fool Ascent.

But you only save money with rewards cards when you use them correctly, and many people don’t. If you have any rewards cards, or you’re planning to get one, there’s one key rule you must follow.

The No. 1 rewards rule: Always pay your credit card in full

When you pay your credit card bill every month, you have options. There’s a minimum amount, and you need to pay at least that much. There’s also the statement balance, which is what you owe as of the close of the last billing cycle. And there’s the current balance, up to date for the day you view it.

Always pay your credit card’s full statement balance (or the current balance). If you don’t pay the statement balance, then your card issuer can start charging you interest. But if you pay the statement balance every month, you can use your card and earn rewards interest-free.

That’s important, because interest charges will likely cost you more than any rewards you earn. The average rate on interest-bearing credit cards is 22.77%, according to Federal Reserve data. On a $5,000 balance, that would cost $1,139 in yearly interest — far more than most people earn in rewards.

How to ensure you can pay in full

Paying your credit card in full is common advice, but it’s easier said than done. Credit cards make it convenient to borrow money. Rewards cards, in particular, can incentivize you to spend more. It’s tempting to overspend when you know you’ll be earning cash back or points in the process.

When people end up in credit card debt, it’s normally for one of two reasons:

They get into the habit of spending more than they can afford.They need to use their credit card to pay for an emergency.

Here’s what you can do to solve each of these issues.

Overspending: Treat your credit card like a debit card

The danger with credit cards is that they allow you to spend money you don’t have. To avoid overspending, don’t make purchases on your credit card that you couldn’t afford with the money in your bank account. If you follow this approach, you’ll always be able to pay your credit card bill in full.

Emergency expenses: Build an emergency fund

Everyone has to deal with unexpected bills from time to time. If you haven’t already, save money every month to build an emergency fund. The most common rule of thumb is to save enough for three to six months of living expenses.

Coming out ahead with rewards credit cards

It’s possible to get lots of value from rewards credit cards. But that all depends on whether you pay your bill in full and stay out of credit card debt. If you can do that, you’ll get the benefit of earning rewards without the cost of expensive interest charges.

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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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If you’re a woman who feels like the financial game is rigged, take heart. Keep reading for signs of progress for women in investing. [[{“value”:”

It wasn’t long ago that women weren’t allowed to have credit cards. Financial inclusion for women has made progress in the past fifty years, but there is more work to be done. Women are still facing a few unfair disadvantages in the job market and in the world of banking, saving, and investing.

Let’s look at a few of the biggest obstacles for women in the financial world — as well as signs of hope for the future

1. Women get paid 17% less than men do

Most of women’s disadvantages in the financial world boil down to one big problem: the gender pay gap. Women get paid less money than men. According to the latest data, U.S. women get paid about $0.83 for every dollar that men earn. That means women’s pay is about 17% lower than men’s income.

2. Women have 68% less wealth than men do

Lower pay makes it harder for women to save and invest. No matter how cleverly you manage your budget, it’s going to be a struggle to invest as much money as someone who’s earning 17% more than you.

It’s no wonder that the gender pay gap has also created a gender wealth gap: a single woman has an average wealth of about 32% of a single man’s average wealth. The average U.S. woman has a net worth (personal assets minus liabilities) of $5,541, while the average U.S. man has a net worth of $12,188.

Gender wealth gaps are even more severe for Black and Latina women. As of 2019, for every dollar of wealth owned by households headed by white men, families headed by Hispanic women had $0.10 of wealth, and Black women had only $0.05 of wealth.

3. Women’s retirement income is about 70% of men’s

Because women earn less income and are more likely to take time away from the paid workforce to be caregivers for children or family members, it’s harder for them to build up a big nest egg for retirement. As a result, women’s retirement income from all sources (including Social Security and investment accounts) is about 70% of men’s retirement income.

Many women don’t even have an employer-based retirement savings plan like a 401(k). The U.S. Department of Labor found that only 43.5% of working-age women are participating in a workplace retirement plan. One reason is that women are more likely than men to work part-time jobs that don’t qualify for a retirement account. Just being able to have a full-time job that offers good benefits like a 401(k) can be a huge help for people to save for retirement — and many women don’t have this extra help.

4. Too many financial advisors don’t treat women with respect

Working with a financial advisor or Certified Financial Planner™ can be a good way to boost your retirement savings and make smarter investment decisions to build wealth for the future. But unfortunately, too many financial advisors are not doing a good job of helping women feel comfortable, heard, and respected.

Research from New York Life found:

48% of women feel as if they’re “being treated differently” or “patronized” by financial advisors44% of women believe that they face inequalities in investing40% of women said that financial advisors are less likely to listen to their ideas40% of women said that financial advisors “push women out of financial conversations”

Financial advisors need to do a better job of listening to their clients, especially women. The investment world shouldn’t be a boys’ club. Not only is financial inclusion the right thing to do, but it’s also good for business.

Signs of hope for women in investing

The financial news for women is not all bad — despite these disadvantages, there are many signs of hope. Women are becoming more likely to buy stocks and invest for retirement, and they’re often really good at it.

Women are buying stocks

As of 2023, according to Fidelity surveys, about 60% of women were investing in the stock market, and 68% of women were saving for retirement. This is up from historic trends when only 40% of women were invested in stocks. Women are even slightly more likely than men to own stocks: 62% of women, vs. 59% of men.

Women are good at investing

Despite the arrogant attitudes of some patronizing financial advisors, women tend to outperform men at investing. Studies show that women tend to achieve higher investment returns than men do while taking less risk — they’re less likely than men are to buy into speculative investment fads, they trade less frequently, and they stay level-headed during market ups and downs.

All of this adds up to an extra 0.4%–1.0% of average annual returns for women. Even though women tend to start with a smaller income and a smaller net worth, they tend to be better at the actual work of investing than most men are.

Bottom line

The world needs more women investing. It’s true that women face unfair disadvantages in the workplace, and women deserve better support as caregivers and in their careers. Companies and governments can do more to support families (such bringing back the expanded Child Tax Credit) and creating a level playing field at work with pay transparency.

But there are many optimistic signs that women are getting better at playing the long game of investing. If America can make progress toward ending the gender pay gap, women are doing the right things to eliminate the gender wealth gap next.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Retirement is a major life change, and it can be challenging. Learn about the most important habits successful retirees follow. [[{“value”:”

Everyone has their own vision for a successful retirement. Some people want to spend as much time as possible with friends and family, and others want to travel the world. No matter what you decide to do, what’s important is that you’re as happy and healthy as possible.

That can be easier said than done. Lots of new challenges come with retirement, including making your retirement savings last. That’s why successful retirees tend to have some smart habits they follow to make the most of their golden years.

1. They plan ahead financially

Financial planning is important at any age. Research has consistently found that it’s helpful, including for retirees and soon-to-be retirees. Goldman Sachs reports that 78% of retired respondents with a financial plan when entering retirement were confident making the transition. Only 56% of those without a plan said the same.

A good place to start with financial planning is to figure out how much you can use each year from your retirement accounts. One popular rule of thumb is that you can safely withdraw up to 4% of your savings per year. Add any other expected sources of income, such as Social Security and a pension, to calculate your income.

Next, see if your expected income is enough to pay your bills and lead the lifestyle you want. If not, you’ll need to find places to cut back.

Make sure you also budget for larger expenses you could have in the future. You may have expensive healthcare costs. Or you might decide you want to help your kids with a down payment on a home. Successful retirees plan for this ahead of time, so it doesn’t take them by surprise later.

2. They lead a healthy lifestyle

You can’t guarantee that you’ll be healthy in retirement, but you can improve your odds. Researchers from Harvard University have found five key lifestyle factors that increase your chances of a longer, healthier life:

Healthy dietRegular exercise (at least 30 minutes daily of moderate to vigorous activity)Healthy weightNo smokingModerate alcohol intake (or none at all)

Older adults who followed these habits lived up to 14 years longer, compared to those who didn’t. They also spent more years free of major diseases.

I’ve seen this with my own older relatives. The ones who eat well, make time for physical activity, don’t smoke, and don’t drink much alcohol have avoided preventable health issues. That makes retirement much more enjoyable — and could help you save money on healthcare costs.

3. They stay out of debt

Debt is common in the United States. Average household debt was $104,215 last year. It often includes a mix of mortgage debt, auto loans, credit card debt, and those buy now, pay later plans that seem to be available everywhere.

Now, it’s not necessarily a problem if you’re still paying off your mortgage during retirement. Many retirees have a housing payment, and mortgages have low interest rates, especially if you get yours through one of the top mortgage lenders.

High-interest debt is a problem, especially credit card debt. Most credit cards currently charge interest rates above 20%, meaning a $5,000 balance can cost you over $1,000 per year in interest.

Successful retirees are careful about debt. They normally try to pay off most debt before they retire, so their income isn’t eaten up by monthly payments. And they avoid taking on debt in retirement for that same reason.

4. They’re purposeful about how they spend their money

By the time you retire, you may have spent decades saving money. It’s a lifetime of work, and it’s important to consider what you want to do with it.

Wes Scott, who conducted a study of over 1,350 retirees, found that the happiest figure out what they want to use their retirement money for. Based on his research, he recommends that retirees have at least three core pursuits that fulfill them.

Think about what you’d love to do in retirement and make it a financial priority. It can be anything you want: Spending a month in a new country every year, a new hobby, or a sport, to name just a few examples. By figuring this out, you can make sure you’re using your money on what you want to do instead of wasting it.

Your retirement is largely what you make of it. If you do your best to practice the habits that have worked for other retirees, these could be some of the best years of your life.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

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