Money Management

A Sam’s Club membership may be a good purchase if you want to save money by buying in bulk. Find out how to save even more when shopping at Sam’s Club. [[{“value”:”

Many shoppers are looking for ways to reel in their spending now that life is getting more expensive. One way that some are fighting inflation is by investing in warehouse club memberships. Joining Costco or Sam’s Club could give you access to bulk finds at discounted prices. If you’re considering becoming a member, you may seek further tips to stretch your dollars. Here are a few suggestions to help you save money when shopping at Sam’s Club.

1. Compare prices before you shop

While many deals at Sam’s Club are great buys, not every price you see will be the best. Some items may be cheaper at other retailers. Before you walk into your local club, research prices for the items you’re buying or comparable alternatives to determine if Sam’s Club has the best price. If you do this before every shopping trip, the yearly savings can add up.

2. Use Scan & Go to access extra deals

All members can use Scan & Go. Shoppers can scan product barcodes as they shop and check out in-app to check out quickly after shopping. This can help you get out the door faster and save money. The retailer promotes exclusive Scan & Go offers throughout the store. With these extra discounts, you can keep more money in your pocket.

3. Upgrade your membership to earn rewards

Sam’s Club offers two memberships. The standard Club membership costs $50 annually, while the Plus membership, which offers more benefits, is $110 a year. One perk included with a Plus membership is the ability to earn 2% in Sam’s Cash when making eligible purchases. Members can earn up to $500 in Sam’s Cash each membership year.

You can redeem Sam’s Cash for membership fees, eligible purchases at Sam’s Club or Sam’sClub.com, or cash it out at a Sam’s Club membership desk. Earning Sam’s Cash rewards can be a win for your wallet because you’ll be rewarded for your everyday shopping.

4. Shop the sales

Pay attention to what’s on sale before your next Sam’s Club haul. You can browse current sales and clearance finds by logging into the Sam’s Club app or SamsClub.com. Check the sale end date so you don’t miss a great deal. Stocking up on bulk finds when they’re discounted is an excellent way to reduce your spending.

5. Pay with a rewards credit card

You can maximize your savings with the right payment method. Using one of the best rewards credit cards to pay for your purchases can allow you to earn valuable rewards like cash back.

While you won’t get a direct discount on your bill, you can later cash out your rewards to pay yourself back for past Sam’s Club shopping hauls. You can also maximize your rewards using one of the best cash back apps.

If you pay for your purchases with cash or a debit card, you’re missing out on rewards. Check out our list of the best cash back credit cards to learn how to earn credit card rewards.

Maximize your savings

As life becomes more expensive, it pays to be strategic when shopping. The shopping tips above can help you score the best deals at Sam’s Club to keep more money in your checking account. Every dollar you save adds up, so making strategic shopping moves is worthwhile.

If you’re thinking about joining Sam’s Club, check to see if there is a current new membership offer. The retailer frequently promotes discounted membership to new customers. Investing in a Sam’s Club membership may help you reduce your household expenses.

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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.Natasha Gabrielle 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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Laws on HOAs give associations a lot of power — including daily fines for continuing violations. Here’s how costly things can get. [[{“value”:”

I recently bought a house from investors who had purchased it after a foreclosure. In this case, it wasn’t the bank that foreclosed as a result of a late mortgage. Instead, the homeowners association foreclosed because there were unpaid fines and fees on the account. This gave the association the right to put a lien and establish an ownership claim, which gave it the right to foreclose.

Once I purchased it, I could see all of the past issues since the association wanted me to correct them (and because the investors had to pay off the outstanding balance due before we could close on the deal). One of the fines I saw was a $5,000 fine for a dead bush in the landscaping — which I was able to replace upon moving in for $30.

It may seem impossible to believe, but this means my HOA fined homeowners $5,000 for a dead bush that cost just $30 to fix. Here’s how that happened.

HOAs often have the right to impose fines for continuing violations

State laws governing HOAs vary from place to place. But, in general, most states give associations broad authority to impose fines for not complying with rules and regulations. Without this authority, HOA rules would essentially be meaningless since people could ignore them.

And, crucially, while the law typically imposes certain limits, like mandating that owners be told in advance they’ll be fined and that fines must be reasonable, they don’t typically stop associations from imposing daily fines for continuing violations.

In other words, if you’re not in compliance with the rules, the HOA isn’t limited to only fining you once. It can impose a fee for every single day you remain out of compliance. And that’s exactly what happened to the owners of our house. They were told they had to replace the dead bush, for whatever reason they didn’t, and they were fined $100 per day.

Now, in this case, the fine was capped at $5,000 because that’s the rule of my association’s bylaws. And, while Florida law says fines can be levied daily up to $1,000 total, there’s an important caveat in the law. It says the $1,000 limit applies “unless otherwise provided in the governing documents.” And, my HOA’s governing documents have a $5,000 cap, not a $1,000 one.

Be sure you understand your association’s rules

While it may seem ridiculous to be fined so much money for something that cost so little to fix, the reality is that there was nothing legally wrong with what the association did. And this is why it’s so important to:

Ask your realtor (or the HOA directly) for the rules and regulations before you buy.Read and understand your HOA’s rules, including when you can be charged fees.Comply with the rules so you don’t get hit with fees.Respond promptly to violations and fix them.

Ultimately, the prior owners lost their house because they didn’t follow the rules. And this can and does happen to people every day. If you’re buying in an association, you do not want this to be your fate — so don’t even consider purchasing in a neighborhood with these types of rules unless you’re ready, willing, and able to follow them at all times.

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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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Attractive mortgage offers go to those with the strongest credit scores. Here’s how to give your score a boost before applying for a mortgage. [[{“value”:”

When you buy your first home, you have three goals: Find a house you like, agree on a fair price, and land a great interest rate. The interest rate you end up with will depend, in large part, on your credit score. Whether your credit score is currently in the basement or just a bit lower than you would prefer, here are some great hacks to help you elevate it.

1. Review your credit reports

One of the first rules of personal finance is to always know where you stand, credit wise. The easiest way to get a free credit report from the big three credit reporting agencies is to place an order through AnnualCreditReport.com. Once you have them, review each with a fine-toothed comb, looking for any possible mistakes. They may be something huge, like showing that you still owe money on a car you paid off years ago, or they may be something small, like saying you live somewhere you don’t.

When you find an error, circle it. Once you’re done with each report, dispute any mistakes with the credit reporting agency in question. For example, if the mistake is on your Equifax report, dispute it through the Equifax website.

If the credit bureau approves your dispute, you should see the error corrected within 30 days. Even a seemingly small mistake can lower your credit score, and getting it off your credit report is a good way to give your score a small boost.

2. Get caught up

Sticking with a budget month after month can be a challenge, and it’s easy to fall behind on bills. However, any time you fall behind on a bill, it’s reported to the credit reporting agencies and shows up on your credit report (dragging down your credit score). One of the first things you should do is to focus on getting caught up on bills that have fallen behind.

3. Limit credit applications

Since the goal is to score the lowest mortgage rate possible, you’ll want to apply for credit only when necessary — especially in the months leading up to house hunting. Lenders get nervous when they see someone borrowing money haphazardly.

Let’s say you receive an advertisement for a credit card. All you have to do is apply. If you don’t need another credit card, do not apply. The same is true for borrowing money from any other source. Avoid applying for an auto loan, personal loan, or any other consumer loan before applying for a mortgage.

It’s not just that it looks good to lenders. Applying for too much credit in too short a period lowers your credit score.

4. Request a credit limit increase

Rather than applying for new credit, ask a current creditor to raise your credit limit. Here’s why: Credit utilization counts for 30% of your total FICO® Score, the credit score most frequently used by U.S. lenders.

Credit utilization is a snapshot of how much credit you have available compared to how much you use. Let’s say you have a credit card with a spending limit of $10,000. Financial experts recommend that you keep your utilization under 30%. That means you never want to spend more than $3,000 ($10,000 x 0.30 = $3,000). Once that $3,000 is paid off, you can spend another $3,000.

In short, lenders want to know that you’re credit-worthy enough to get credit but careful enough to only use a little of it. Asking for a credit limit increase on an existing credit card or loan automatically lowers your utilization ratio — as long as you don’t spend money to take advantage of the new, higher limit.

5. Do not close old credit card accounts

If you’ve ever had a problem with credit card debt, you know how tempting it can be to cut cards up and close accounts. While putting them out of reach is a good idea, do not close out old cards. Doing so will not only impact your credit utilization (because you’ll have less available credit), but it will also damage the length of credit history portion of your credit score. FICO says how long you’ve had access to credit counts for 15% of your total score. Getting rid of available credit will only hurt your credit score.

If you’re excited about buying a home but aren’t sure you’re up to snuff on personal finances, there are some great, easy-to-follow financial literacy apps that walk you through the basics. After all, the more you know, the more confident you will be as a first-time home buyer.

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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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Not having a bank account can be bad for your personal finances. See why millions of Americans are unbanked — and learn how the best banks can help. [[{“value”:”

“Financial inclusion” is a concept in the banking industry focused on helping people get connected to essential banking services, so that people are not left behind and do not get excluded from economic opportunities. One important aspect of financial inclusion is helping people who are “unbanked” — those who don’t have a checking or savings account at a bank or credit union.

Being unbanked is risky, and can put people at a big disadvantage in their personal finances. Sadly, people who are unbanked are also more likely to be from communities that have faced other historic disadvantages like racial discrimination, language barriers, and exclusion from economic opportunity. Being unbanked can compound these disadvantages.

Let’s look at a few communities that have disproportionately higher rates of unbanked households — and see how banks are trying to help.

Which communities are less likely to have a bank account?

Approximately 5.9 million U.S. households do not have a bank account, and more than half of these unbanked households are Black, Latino, and Native American. The good news is that there has been progress. The unbanked rate has come down in recent years, in part because more people started using bank accounts to receive direct deposits of government pandemic relief payments.

But too many American families are still missing out on the safety, cost savings, and other financial benefits of having a bank account. According to FDIC research, while 4.5% of all U.S. households are unbanked, there are big gaps in the unbanked rates for people of different racial and socioeconomic groups:

Only 2.1% of white households are unbanked.6.9% of Native American/Alaska Native households, 9.3% of Hispanic households, and 11.3% of Black households don’t have a bank account.Households with lower income and less education are more likely to be unbanked.Households with a working-age adult with a disability have an unbanked rate of 14.8% (compared to 3.7% for households without a disability).Households headed by a single mother have an unbanked rate of 15.9% (compared to 1.8% for married couples).

Why banks need to try harder to help underserved communities

None of these statistics is meant to be a criticism of people who are unbanked. People try to make the best choices they can for their finances, and many unbanked people just don’t believe that opening a bank account is a good enough deal. For example, a survey from UnidosUS found that unbanked Latinos had the following big reasons for not getting a bank account.

Minimum balance requirements

For lower-income people who are living paycheck to paycheck, it can be hard to maintain a minimum balance to avoid a monthly account fee. Some banks offer checking accounts with no minimum balance, but it’s understandable why unbanked people might feel like “banking isn’t for me.”

High account fees

People from lower-income families often get hit hardest by overdraft fees and other unexpected banking costs. Even though many banks are now offering accounts with no overdraft fees, not everyone who is unbanked might be willing to try their luck.

Lack of trust in financial institutions

Sometimes people from underrepresented communities don’t trust banks, have had a bad experience with banks, have been discriminated against, or just otherwise feel like they don’t “belong” at the bank. This lack of trust can be especially strong when there’s a language barrier or cultural barriers.

Imagine that you’re a recent immigrant to America, working long hours at a physically demanding job, and you want to send money home to your family in your native country. Do you trust a bank to manage your hard-earned money? Or are you more likely to use a check-cashing service, a convenience store money wire service, or an app that your friend recommends, even if it charges you a fee?

How banks can help the unbanked

The banking system needs to try harder to reach people who are unbanked, and offer the right products and services that make banking a good deal. When people exist outside the banking system, they are at risk for higher fees, predatory loans, and everyday disasters like getting robbed or losing their cash savings to a house fire or natural disaster.

Financial inclusion can bring everyone under the protections of FDIC insurance and other benefits of having a bank account. Here are a few types of bank accounts and services that can be good for unbanked people to get established within the banking system — and improve their personal finances.

No fee checking accounts

In the past few years, checking accounts seem to be getting cheaper. More banks are offering free checking accounts that have no monthly account fees, no maintenance fees, and no overdraft fees. Some of the best free checking accounts also have no minimum balance requirement.

Secured credit cards

People who are unbanked might often not have established credit history. Building credit is so important, because it helps people save money on interest and reduce their borrowing costs. Opening a secured credit card could be a good financial move for many previously unbanked families.

Financial coaching and mentoring

Most banks and credit unions will help answer people’s questions about personal finances. Some banks even have free financial coaching and mentoring programs:

Capital One offers free “Money & Life Mentoring” to help customers with questions about personal finances.Wells Fargo offers free one-on-one sessions with HOPE Inside financial coaches at over 150 Wells Fargo branches.

Bottom line

Too many Americans have not felt welcome or included at America’s banks. By improving financial inclusion, the banking industry can make sure no one misses out on the benefits of a bank account.

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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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Maxing out your 401(k) can be difficult if you don’t earn a high salary. Check these four goals off the list before you max out your 401(k). [[{“value”:”

Maxing out your 401(k) is a noble financial goal. By sacrificing now and investing money, your retirement years will be more comfortable. The earlier you get started, the more time your money has to compound and grow.

The problem is that it takes a lot of money to max out your 401(k). In 2024, the 401(k) contribution limit if you’re younger than 50 is $23,000. If you’re 50 or older, you can contribute up to $30,500.

If you can afford to sock away that level of cash, great. But for someone with relatively average earnings and expenses, those numbers are probably out of reach. But that’s OK. Before you aim to max out your 401(k), here are four better goals to aim for instead.

1. Pay off credit card debt

Paying off credit card debt will give you a much greater return than maxing out your 401(k) in a typical year. The average credit card interest rate is over 21%, whereas average annual stock market returns are around 10%.

In other words, if you invest $100 in your 401(k), you’d typically have about $110 at the end of a year. But after a year, a $100 credit card balance would balloon to about $121 in debt.

Because the cost of credit card debt is higher than typical 401(k) returns, aim to pay off your balance before you make maxing out your 401(k) a priority. A balance transfer credit card can be an awesome tool for getting out of debt and saving money on interest.

2. Build an emergency fund

Before you max out your 401(k), you need a solid emergency fund in place. A high-yield savings account is a great place to store that money. You typically want enough to cover your bills for three to six months so you’re protected from the unexpected, like a large medical expense, home repair, or job loss.

Turning to your 401(k) in an emergency is extremely costly. When you invest in a 401(k), you’re essentially locking up your money for a long time. Any withdrawals you make before age 59 1/2 will typically be subject to a 10% early withdrawal penalty on top of applicable income taxes. Because investments fluctuate in value, there’s also the risk that you’ll need money when the market is down and you’ll be forced to cash out investments at a loss.

3. Max out your Roth IRA

It almost always makes sense to contribute enough to get your company’s full 401(k) match. After all, who would say no to free money? But if you’re considering making unmatched contributions to your 401(k), it’s usually a better move to max out your Roth IRA first.

The best Roth IRA brokers charge low fees and let you invest in virtually any stock, bond, mutual fund, or exchange-traded fund (ETF) you want, whereas with a 401(k), you have higher fees and a relatively limited menu of investments. Plus, unlike a 401(k), an IRA isn’t tied to your employer. If you change jobs, you won’t have to worry about a 401(k) rollover.

After you’ve maxed out your Roth IRA, you can decide whether making unmatched 401(k) contributions is worth it.

4. Save for medium-term goals

You probably have a lot of financial goals you want to accomplish before retirement. Perhaps you want to buy a home, build college savings for your kids, or take your dream vacation.

Sometimes, striking a balance between saving for your long-term needs in retirement vs. your goals that are a few years out is the best course of action. But remember that the years in between now and your retirement years matter, too. It’s important to consistently invest for retirement, but if your nest egg is on track, you may find that saving for a medium-term goal makes more sense than maxing out a 401(k).

How much should you save in your 401(k)?

Usually, you want to replace about 80% of your pre-retirement income. To get there, aim to save at least 15% of your pre-tax income for retirement in a 401(k), IRA, or a combination of the two.

You may need to adjust those goals based on your circumstances. If you got a late start on saving or you’re aiming to retire early, you may need to save more. However, you may be able to get away with saving less if you started investing early and you’ll be retiring with no debt.

Your first priority is to take advantage of your employer’s 401(k) match. Beyond that, the amount to aim for each year depends more on your income and budget than whatever contribution limit the IRS sets.

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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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