Money Management

Sam’s Club offers a lot of ways to save money. Take a look at some you may be overlooking. [[{“value”:”

It’s fairly easy to make your budget happy simply by shopping at Sam’s Club. The warehouse club has very competitive prices on a lot of everyday goods. Indeed, you could make a membership worthwhile by spending on gift cards alone if you wanted.

That being said, I think there are a lot of folks who aren’t taking full advantage of all the ways they could save at Sam’s Club. Here are just a few ways you could be missing out on more money.

1. Not upgrading to a Plus membership

One of the benefits that separates the basic Club membership from a Plus membership is the 2% back in Sam’s Cash you earn when you shop in-club. For folks who spend a lot on their Sam’s Club trips, this could be worth hundreds each year.

Here’s what 2% back looks like in real numbers:

A Plus membership costs $60 a year more than a regular Club membership ($110 vs. $50), so you break even on the upgrade cost by spending an average of $250 a month. And if you spend more than $250 a month, you come out ahead.

Keep in mind you only earn the 2% back when you shop in the store (Scan & Go still counts). Online purchases won’t earn the bonus Sam’s Cash.

2. Avoiding Member’s Mark products

Sure, you can get a lot of name brands at good prices at Sam’s Club. But the biggest savings for everyday necessities will be found on Member’s Mark products. This is Sam’s Club’s house brand.

If you’ve been burned by generics before, you may be avoiding Member’s Mark out of fear of poor quality. But, for the most part, you’d be wrong. Sure, a few items are misses, but the majority of the Member’s Mark items I’ve tried have been excellent.

And most shoppers seem to agree. Member’s Mark products typically have high ratings from reviewers, with tons of folks raving about quality.

3. Skipping Scan & Go savings

Scan & Go is a feature of the Sam’s Club mobile app that lets you scan items as you shop. Then, you can check out in the mobile app and completely skip the checkout line altogether. It can save you a ton of time on busy days when the lines are long.

Well, now, it can save you a not-quite-a-ton-but-still-a-lot of money, too. Scan & Go Offers are deals on specific items that you can unlock by using Scan & Go in-club. Discounts vary by item, but I calculated an average savings of 17% from the current offers.

4. Using the wrong credit card

It can be tricky to determine which rewards credit card is the best for Sam’s Club, since warehouse clubs like Sam’s Club and Costco aren’t a common bonus category. But it’s worth making the effort, especially if you spend a lot of money on essentials every month.

If you can’t find a card with bonus rewards at warehouse stores (it’s rare, though it occasionally pops up on cards with rotating categories), then a flat-rate card is a good choice. You can find cash back rewards cards with 2% back. Or get a good 2X points or travel rewards card.

5. Tossing unread sales ads

I know it’s tempting to toss those sales flyers into the trash with the rest of the junk mail, but you should probably at least page through it before you toss it. The sales in the pages can be huge, and you may notice a good chance to stock up on something you may overlook while in the many, many (many) aisles in the store.

If you don’t want to take time out of your day to browse, put the ads somewhere you spend a bit of leisure time and/or have time to kill. This could be next to the sofa, in your bag to read on the bus, next to the toilet (no judgment) — whatever works.

Lots of ways to save

You can mix and match — and stack — any and all of these various savings strategies, so adopt the methods that work best for you. It doesn’t take a ton of extra work to really make the most of your Sam’s Club savings.

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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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Are you afraid to invest in stocks? Read on to see why you shouldn’t be. [[{“value”:”

There are certain things in life you may be tempted to do that you consider risky. Taking a chance on a new job in a city you’ve never lived in? That’s a risk. So is agreeing to let your coworker set you up on a blind date with their neighbor’s daughter’s friend. If your date turns out to be a dud, you might have a pretty painful evening ahead of you.

But if you’re someone who considers investing in the stock market risky, you may want to change your line of thinking. Not only can investing in stocks be a smart thing to do for your future, but it could also end up being less risky than you imagined.

Americans are leery of stocks — and that’s not a good thing

In a recent survey by Fidelity, 28% of respondents said they’d rather take their chances finding

love on a reality TV show than take their chances in the stock market. But if you don’t put your money into the stock market, you run another risk: not growing your money at a strong enough pace to meet your long-term financial goals.

It’s true that investing in stocks carries risk. In fact, there’s pretty much no such thing as a totally risk-free investment.

But one thing you should realize is that over the past 50 years, the stock market has averaged an annual 10% return on investment. If you play it safe and don’t invest in stocks, the return you’re able to get on your money might pale in comparison. And that could leave you with a shortfall.

Let’s say you have $10,000 to invest over the next 30 years. If you put that money into stocks at a yearly 10% return, you’ll end up growing it into almost $174,500. Play it safe with bonds or cash, and your average annual return might be 4% during that window, leaving you with just $32,000 and change instead.

How to minimize your risks as a stock market investor

You can’t completely remove the risk that comes with investing in stocks. But there are steps you can take to lower it.

For one thing, give yourself many years to invest. The 10% average annual return noted above accounts for the stock market’s good years and bad years over the past half century. If you invest over multiple decades, you’ll give yourself time to ride out potential stock market downturns.

Plus, you can minimize your risk by maintaining a diversified portfolio at all times. To do that, you could either load up on stocks across a range of different market segments, or you could simply buy broad market ETFs, or exchange-traded funds.

The 10% stock market annual return noted above is based on the performance of the S&P 500 index, which is generally considered to be representative of the market as a whole. If you buy shares of an S&P 500 ETF, you’re effectively investing your money in the 500 largest publicly traded companies. It’s hard to beat the simplicity and performance of that.

It’s easy to see why you may be worried about putting your money into stocks. But with the right approach, stock market investing can be a less risky prospect than you’d expect it to be. And it can certainly be less risky than putting yourself out there on TV for all of the world to see in the hopes of finding your soulmate.

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

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Nearly 1 out of 5 Americans aged 55 to 64 has no biological children, but many thrive financially. Check out three insights as to why. [[{“value”:”

Being childless is nothing new. By 2018, at least 19.6% of all American adults aged 55 to 64 had no biological children. For some, it’s a matter of not meeting the right co-parent at the right time. For others, it may be a fertility issue. And while those of us who have children can’t imagine a life without them, there are plenty of people who have a different picture of what they want their lives to be.

Childfree couples amass more wealth

It may or may not surprise you that households with children tend to earn more than childfree couples. According to the Federal Reserve, the median pre-tax income for households with children in 2022 was $110,250, while the median household income for childfree couples was $101,610, nearly $9,000 less. And yet:

A Census Bureau study, Childless Older Americans, 2018, discovered that childless women had the highest median net worth among Americans age 55 and older. While the median personal net worth among all adults 55 and older was $133,500, childless women had a net worth of $173,800.Among all households, the Federal Reserve’s Survey of Consumer Finances found that couples with no children also have the highest net worth, despite earning less than households with children. In 2022, the median net worth of couples with no children was around $150,000 more than that of couples with children.

Whether you’re childfree by choice or circumstance, here are some ways to make the most of your lifestyle.

Outwit taxes

Parents get tax breaks that are not available to childfree adults. That means it’s even more important to find ways to lower your tax burden if you’re childfree. The easiest way is to lower your taxable income by taking advantage of tax-deferred retirement plans, such as these:

401(k)403(b)SEP-IRAIRAsAnnuitiesPermanent life insuranceHealth plan

A tax-deferred plan allows you to make contributions before taxes are taken out. Let’s say you earn $2,400 weekly. By contributing $400 to a tax-deferred plan, you only pay taxes on $2,000 weekly. You aren’t required to pay taxes on the money until you withdraw it when your annual income (and tax bracket) are likely to be lower.

Furthermore, any health insurance premiums paid by your employer are exempt from federal and payroll taxes. And the portion of premiums you’re responsible for paying is typically excluded from taxable income.

Making tax-deferred contributions accomplishes two things at once: You lower your current tax bill and build up a nice nest egg for your retirement years.

Carve out time to improve your financial situation

As much as most parents adore their children (and we do — most of the time), there’s no denying that parenting is expensive. Parents grow accustomed to sacrificing both time and money. The Motley Fool Ascent found that the average cost of raising a child to age 17 is over $300,000. In terms of time, a parent can pretty much expect to spend the majority of their time either with their child or doing something for their child.

It’s possible that you, as a childfree person, have more time to focus on personal finances. If so, you may want to spend time studying the stock market, refining your personal budget, or even taking on a side gig you love to pay down debt faster.

If you find that you enjoy the nitty-gritty of finances, consider taking an investment course or using a financial literacy app to help build confidence.

Prioritize saving an emergency fund

Kids or not, life happens. Water heaters break, cars conk out on the side of the road, and companies make layoffs. One of the easiest ways to get into financial trouble is to forgo an emergency fund. The general rule of thumb is that you should have enough money put away to cover three to six months’ worth of bills. For example, if your monthly bills — including food, gasoline, and any other expense you typically run into — run $4,000 per month, you should aim for an emergency fund of $12,000 to $24,000.

There are several dangers associated with not having an emergency savings account. The first is losing assets. After all, if you can pay your mortgage or car payment, those things can be repossessed. The second danger is counting on credit cards or (worse yet) payday lenders for the money you need to get through.

The solution is to make your emergency fund a priority long before you need it. That means building the fund before you pay down bills and certainly before taking on any new debt.

Tucked away in an account you can easily access, like a high-yield savings account or money market account (MMA), you may never need the funds in your emergency account. However, just having them there can help you rest easier at night.

Ultimately, it’s not how much you earn, but how you handle your finances that matters. Whether you have children or not, the more you know about money, the better prepared you’ll be to build your own version of wealth.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Dana George has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Inflation is still affecting Americans’ finances. Read on to find out how to get yours back on track. [[{“value”:”

Inflation has strained many Americans’ finances over the past few years, and the damage is still being felt.

According to the latest data from Vanguard, 3.6% of Americans took hardship withdrawals from their 401(k) plans last year. A hardship withdrawal can vary from taking money out of a 401(k) to cover medical bills or to avoid foreclosure. While the percentage of hardship withdrawals may not seem high, it’s up from 2% before the pandemic and has reached a record high.

If you combine this data with the fact that America’s total credit card debt is surging and is now above $1.13 trillion, it’s clear that many households are struggling. If you find yourself playing catch-up with your finances, here are a few suggestions to get back on track.

1. Start with building an emergency fund

It might seem impossible to put any money into an emergency fund if you’re trying to get your finances under control. But if you don’t slowly build up a small cash reserve, you’re bound to reach for a credit card to help cover unexpected expenses.

Most experts recommend first building up your emergency fund to $1,000 so you can offset the cost of a car repair, broken appliance, or minor home repair. It’s best to set up a separate account for this instead of leaving the emergency fund money in your checking account.

To help reach that goal, look through the last three months of your expenses and try to find a handful of items you can cut out. It could be eating dinners out, one or two subscription services, or finding a cheaper smartphone plan.

Whichever expenses you cut out, automate a deposit for that amount from your checking account to a high-yield savings account to begin building up your emergency savings. After you’ve saved $1,000, aim to save enough for three months of expenses. That provides a solid cushion in case of a job layoff or another major life surprise.

2. Focus on low-balance debts first

Aiming high when you’re trying to pay off debt can be tempting. But the larger debts will take longer to pay off, and many people quickly lose motivation.

It’s often recommended to focus your attention on your smallest balances first. I used this strategy when paying off my car loan and eliminating my credit card debt. Seeing your balance continually get smaller month over month is satisfying.

This method is called the debt snowball. You order your debt from smallest to largest. Once you’ve paid off the smallest amount, you use the money you were previously spending on that debt to pay off the next largest amount.

For example, if you have a credit card with a $2,000 balance, a car loan with a $7,000 balance, and another credit card with a $10,000 balance, you would first tackle the $2,000 card balance. Once you pay that off, you then use the same monthly amount you were spending on the smaller balance and put it toward the $7,000 amount. Once that debt is gone, you move on to your next largest debt.

3. Work with a financial advisor

Knowing what to do with your money can be overwhelming. That’s why many people turn to a financial advisor to help steer them in the right direction.

A good financial advisor can help you create a monthly budget, devise a debt payoff strategy, and even teach you investing basics. The good news is that financial advisors aren’t just for wealthy people; anyone can use them to create a financial roadmap.

A good place to begin is with the National Association of Personal Financial Planners (NAPFA). These advisors work on a fee-only structure and are fiduciaries, which means they’re legally bound to work in the interest of their clients above their own interests. You can search for financial advisors on the NAPFA website.

Speaking with an advisor who has your best interests in mind can be an excellent first step toward getting your finances under control. And having an experienced professional in your corner encouraging you to keep going with your financial goals can help you stay motivated.

Tackling debt and building an emergency fund can seem like insurmountable obstacles. But starting with a small savings goal and then moving toward paying off small debt amounts first will help you stay focused. And speaking with a financial advisor will help take your financial planning to the next level.

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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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This writer is tired of overspending on Amazon. Read on to see how she’s setting some limits. [[{“value”:”

Some people may not get a lot of good use out of their Amazon Prime memberships. But I can say with certainty that the $139 annual fee I pay for the program is not money I’m throwing away.

Shopping on Amazon as a Prime member often saves me the time of having to make a trip to the store. And because I’m self-employed, saving time means freeing up time to work. That often results in more money in my bank account.

But at some point last year, I realized that I was racking up quite the large credit card tab when doing my Amazon shopping. So I’ve decided to make some changes. Effective this year, here are three rules I stick to in the context of Amazon purchases.

1. I only visit Amazon when there’s an actual item I need

Amazon is one of those sites you might easily browse when you’re bored or waiting around for a friend. I used to do the same, but I don’t anymore.

The reason? There’s just too much temptation. As a Prime member, I can order any item for free two-day shipping. A $12 t-shirt here or an $8 hat there may not seem like a big deal. But in the course of a year, those little purchases can add up.

So now, I only visit Amazon when there’s a specific item I need. And when I do, I don’t browse the daily deals. I just stick to the item or items I’m looking for.

Similarly, I won’t shop on Amazon during special events, like Prime Day, unless there’s a reason to. Otherwise, I know I’m likely to be tempted to buy something.

2. I’m not allowed to buy clothing unless I’m replacing an item in my closet

I’ve found that Amazon sells a variety of decent-quality clothing items at low prices. So on occasion, I’ll be tempted to purchase a new fleece jacket to go running in, or new socks or pajamas.

But as someone who tends to keep her clothing for a really long time, my new rule is that I can’t buy clothing on Amazon unless it’s to replace something specific in my closet. The way I see it, if I’m not replacing an item I already own, then the item in question is probably something I don’t actually need.

3. I always check the Subscribe & Save price before making a purchase

If there’s an item on Amazon I need in a pinch, I may have to order it for two-day delivery, which I get for free as a Prime member. But for non-urgent purchases, my new rule is to always see if the item in question is available via the Subscribe & Save program.

The program allows you to set up items to ship to you automatically at different intervals, such as once a month, once every other month, and so forth. And you’ll generally snag a discount on the things you’re buying if you use Subscribe & Save. So if there’s no rush for your new face cream or toothpaste or vitamins, why not save money on them?

Shopping on Amazon may hurt your finances if you aren’t careful. It pays to do what you can to avoid impulse buys on the site. And it pays to seek out savings where you can, such as looking to the Subscribe & Save program for the things you don’t need immediately.

If you feel that your Amazon spending has been excessive lately, you may want to implement your own set of rules for shopping on the site. You may find that it does your finances a lot of good.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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