Money Management

Some Costco habits could cause you to waste money. Read on to make sure that doesn’t happen to you. [[{“value”:”

For many people, joining Costco is a wise personal finance decision. For the amount of money you spend on a membership (either $60 for a basic one or $120 for the Executive version), you might more than make it up in the form of savings on grocery purchases throughout the year.

But certain habits of yours could cause you to waste money in the course of your Costco shopping. Here are three to try to break and replace with better ones to keep your budget in check.

1. Stop buying rarely used items in bulk — and start buying them at the regular store

Costco’s prices often can’t be beat on a per-ounce or per-unit basis. And as such, it makes sense to buy items you use on a regular basis in bulk. Where you risk wasting money is bulk purchases of items you only use sparingly.

You might think it’s a good idea to buy a massive bag of pecans ahead of Thanksgiving because on a per-ounce basis, you’re paying less at Costco than at your regular supermarket. But if your sole need for pecans is to make a single pie, and you don’t eat pecans normally, then why would you buy four pounds of them at once?

Pecans, like other nuts, can go stale after a few months. So in a case like that, don’t chase the bulk savings. You’re not going to save anything if you throw out half of your haul.

2. Stop loading up on produce and check your local discount grocer first

Produce is something that tends to have a very limited shelf life. You might buy a case of strawberries that looks great on Monday, only for those berries to look limp and possibly moldy by Thursday.

That’s why it often pays to turn to discount grocers to save money on produce rather than buy it at Costco. It’s one thing if you’re making a load of strawberry jam and need lots of fresh berries you’ll use up in a single day. But buying a week’s worth of fruit (or vegetables) just doesn’t make sense from a freshness standpoint.

The only reason to buy bulk produce at Costco is if you have a large family and it’s conceivable that you will eat up all of those strawberries, or your produce of choice, within about 72 hours.

3. Stop overpaying and ask for price adjustments when you’ve missed out on a deal

It’s happened to the best of us: You buy your favorite crackers or granola bars or chips at the grocery store only to see that same item go on sale a week later — after you’ve already opened your box.

The good news is that if you shopped at Costco, you’re not stuck paying the higher price. Costco will give you a price adjustment for items purchased within 30 days of a sale. But you need to take the time to go to customer service and ask for one. Since it’s an easy way to get some money back, why not do it? You can also request a price adjustment for online purchases by logging into your Costco.com account.

While Costco offers plenty of savings opportunities, certain mistakes might cause you to waste money. Try to avoid these three, so you can make the most of your membership without spending more than you have to.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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Cash back credit cards can make your purchases cheaper. But keep reading to learn how to make your cash back work harder. [[{“value”:”

Cash back credit cards are incredibly popular — according to credit card research from The Motley Fool Ascent, 72% of Americans with a net worth under $1 million have one. It’s not so surprising — rewards that come in the form of points or airline miles are more complicated to understand and use. How much are those rewards worth in real money? It varies among different credit card companies, and it depends on how you redeem them — and generally speaking, turning them into cash is your worst option for value.

Cash back credit cards, on the other hand? If you earn a set percentage rate on your purchases, they’re incredibly easy to understand. With my grocery rewards credit card, I get 6% cash back on supermarket purchases — if I spend $100, that’s $6 back to me. And I redeem it as a statement credit, which reduces the cost of my next credit card bill, directly saving me money.

But what if I invested the cash back I earned from credit cards instead? Let’s take a closer look at this option for your credit card cash back — it’s one that can grow your money over time.

Watch your cash back grow

Most cash back credit cards pay out monthly — when your statement period closes. At that point, you have options. For example, with one of my cash back cards, I can redeem cash back as a statement credit, of course — but I can also use it to directly pay for purchases. Or I can have it sent as an electronic deposit to a linked bank account or have it sent to me in the form of a check. It’s these options you need if you’re hoping to invest your cash back.

Let’s say I earned $50 in cash back during a given month, and I decided to have that money sent to my checking account. If I then send it to a brokerage account, I can invest it. The S&P 500 has returned an average of 10% annually over the last five decades, but let’s be more conservative and assume I can earn an 8% return. What does $50 turn into over 10, 20, and 30 years?

All right, I know a 10-fold increase over 30 years is perhaps not so impressive on its face. But what if you funnel $50 in cash back to your investment account every month, and get this same rate of growth? In 30 years, you’ll have $68,473.06, assuming that same 8% gain — and you’ll only have put in $18,050.00. Compound growth and time will work for you to an even greater degree. If you struggle to find money to invest every month, using your cash back earnings could be an easy option for you.

You also have this option

To make investing credit card rewards even easier, you might consider opening a credit card that links directly to your brokerage account. Charles Schwab offers one of these cards, and it gives cardholders the option to invest their rewards points in their Schwab investment account.

Cash back credit cards are a worthwhile addition to your wallet, assuming you’re able to pay your balance in full every month — paying interest will more than eat up any rewards you earn. And if you have the option to redeem your cash back as a transfer to a bank account, brokerage account, or even as a paper check, you have the chance to maximize that money by investing it.

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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.Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Charles Schwab. The Motley Fool recommends the following options: short March 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.

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Are you a solo shopper wondering if you should join Sam’s Club? You’re in the right place. Discover whether single people can save money at Sam’s Club. [[{“value”:”

You’ve probably heard many people rave about having a warehouse club membership. Sam’s Club is one popular warehouse club that sells bulk items to members at discounted prices. But if you live alone, you may wonder if investing in a Sam’s Club membership is worthwhile. For some solo shoppers, the money they save is worth the annual membership fee. Find out what you need to know before you enroll as a member at your local Sam’s Club.

A Sam’s Club membership is worth it for some solo shoppers

Like with anything, no solution works for every person. We all have unique needs, and our shopping habits and preferences vary. With that in mind, some single shoppers may benefit from becoming Sam’s Club members.

If you live alone and have the space to store bulk items, that’s a plus. Sam’s Club finds, like bulk meat that can be frozen, pre-made frozen foods, household cleaning essentials, and toiletries are a great option for single people. Unlike fresh produce, these items have a longer shelf life, allowing solo shoppers to get what they need while keeping more money in the bank.

Sam’s Club provides other savings to shoppers. For example, you can get a discount on gas. A membership can be helpful if you drive often for work or personal reasons. Another way you can use a membership to save is by purchasing gift cards at a discount. You can buy gift cards for your favorite retailers or get them as presents for loved ones.

A Sam’s Club membership is probably not worth it if…

When might a Sam’s Club membership not be ideal for a single shopper? If they don’t live near a club. You don’t want to waste time and money driving to a faraway club. A membership is likely not ideal if your home has limited storage space. Not everything is sold in bulk, but many items are, so you don’t want to clutter your house to get a deal.

A Sam’s Club membership might also be a waste of money if you don’t eat meat or frozen foods. Produce and refrigerator items may spoil too quickly if you don’t have roommates or family to help you eat what you buy. Consider your needs and habits before you join.

Other ways to save without a Sam’s Club card

If you’re a single shopper who wants to save money, there are other options to explore beyond a Sam’s Club membership. Here are a few ideas:

Buy store-brand items and sale items

You can save money on groceries and household essentials by buying store-brand items and sale items at local stores. Browsing the weekly sales flyer before you make your shopping list can help you spend less.

Plan smaller trips

When you get groceries infrequently, it can be easy to overspend and buy more than you need. By planning smaller trips to the grocery store, you may find you can save money and waste less food. It’ll also encourage you to eat what you have before you buy more.

Invest in an online shopping subscription

Investing in Amazon Prime or Walmart+ may be worthwhile if you shop online frequently and want to save time and money. You can get discounts on everyday essentials at Walmart and Amazon without buying most items in bulk. Plus, you can benefit from free shipping perks, meaning you won’t have to leave the house to shop. You’ll pay $98 annually for a Walmart+ membership or $139 per year for Amazon Prime.

Are you looking for other ways to save money? Check out our personal finance resources.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.

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Having a hard time building long-term savings? Here’s your game plan. [[{“value”:”

Saving for retirement during your working years is a good way to help ensure that you’ll have enough income at your disposal during your senior years. But data from the Transamerica Center for Retirement Studies finds that 57% of women feel they don’t have enough income to save for retirement. If you feel as if saving for retirement has been a struggle, here are some tips to employ.

1. Fight for higher wages

In 2022, women earned an average of 82% of what their male counterparts earned, according to Pew Research Center data. And that’s a hard shortfall to overcome.

That’s why it’s important to do what you can to fight for higher wages. Research salary data for your role using sites like Glassdoor and Salary.com. If you can prove that you’re statistically underpaid, that might prompt your employer to boost your salary.

Also, see if any of your male colleagues with similar roles to yours are willing to be open with you about their pay. If you find out that you’re earning less, that’s information you can bring to your management team.

According to the National Labor Relations Act, policies that prohibit employees from discussing wages are generally unlawful. So if you’re worried about backlash for talking salary with your coworkers, well, don’t be. And if your employer does attempt to retaliate against you, you may be in a position to take legal action.

2. Get a side hustle to grow your income

Joining the gig economy could be your ticket to boosting your income. And the more money you earn, the more you might have available for your individual retirement account (IRA) or 401(k).

Not only that, but a side hustle could make it possible for you to pad your emergency savings. That could be crucial in helping you leave your existing retirement funds alone, rather than raiding them for an unplanned expense.

One thing you may want to do is get a side hustle that helps you grow your skills. That could make it easier to boost your overall income by pursuing better-paying jobs. For example, a company looking for data entry may be willing to teach you some basic Excel skills you may be lacking that could come in handy for your broader career.

3. Snag your full workplace 401(k) match

If you have access to a 401(k) plan with a match through your job, it’s important to do everything in your power to claim that match in full. That could translate into a lot of free money for your senior years.

Your workplace match is a sum you can invest over time. So if you get a $3,000 match this year that earns an average annual 10% return over the next three decades, which is in line with the stock market’s average, that employer match will eventually add over $52,300 to your retirement plan balance.

If you have to cut back on some expenses to be able to contribute enough to claim your employer match in full, just remind yourself of how much that money could grow over time. It should help soften the blow.

It’s important to set yourself up with a nice nest egg so your retirement can be free of financial worries. These moves are worth employing if socking money away for retirement in a brokerage account has been a struggle thus far.

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.The Motley Fool has a disclosure policy.

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