Money Management

Just because you bought a home intending to live in it forever doesn’t mean you must stay there. Watch for these ways to tell it’s time to put it on the market. [[{“value”:”

Many people go into the process of buying a home with the goal of finding their forever house. Unfortunately, this can end up putting a lot of pressure on you — both when you’re looking for a property and when you’re living in one.

If you applied for a mortgage and bought a house with the intent to stay there for life, it may be really hard for you to admit — or even realize — when it turns out that your time there should actually be a whole lot shorter than that.

You don’t want to get stuck with a house that’s not really right, just because you went into it with a certain forever mindset. Watch for these three signs that it may be time to sell and move on, despite your prior intent.

1. Your housing costs have become a burden

If you got a fixed-rate mortgage, your principal and interest costs shouldn’t ever change — your mortgage rate is set. But property taxes and insurance costs can increase, as can utilities. In fact, homeowners insurance premiums across the country are up 23% on average since 2023.

If your housing costs have become a burden because of rising prices, then it may be time to think seriously about moving. Likewise, if you stretched to buy a home in the first place or your income has fallen and covering housing costs has become harder, then you should think about selling ASAP.

Your home should ideally not cost you more than 30% of your income. If it does, you may not be able to do other important stuff like putting enough money into your investment and savings account. Take a serious look at whether your house is costing you your future security and, if so, it’s time to downsize.

2. Your lifestyle and needs have changed

It can be really hard to predict what forever looks like for you. So, if your lifestyle needs have changed, it’s important to recognize when your home no longer fits them. Say, for example, you bought a house when you had young kids and you realize it really doesn’t work for teenagers or empty nesters. There’s nothing wrong with realizing that your forever home should really have been your “for now” house and looking elsewhere.

3. Your commute is causing you endless stress

Finally, you need to think about how your location is affecting your life. If you moved somewhere that turned out to be a long and stressful commute away from friends, family, work, or school and you are miserable on your drive every day, then it may be time to relocate.

In 2019, Americans spent an average of an hour a day commuting to work, which could add up to close to a year of your life by the end of your career. If you can find a house that’s close to the stuff you need to do, you can get back your time — and that’s one of the few things in this world you can’t ever get more of.

So, watch out for these three red flags that suggest a move to a new place might be in order, even if you thought your current house was forever.

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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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Costco has a unique shopping culture that’s created several interesting shopper personas. Learn the nine most common Costco shoppers. [[{“value”:”

With great prices and a wide selection of products, Costco has amassed a huge following of loyal customers. In fact, through all its savings opportunities and offerings, we might even say the warehouse retailer has created several breeds of its own shoppers. Sure, you might think you’re a regular Costco shopper (“I only go once a month!”). But if your habits match any of the following nine, you might belong to a class of shoppers unique to Costco’s culture.

1. Kirkland die-hards

Kirkland die-hards are brand ambassadors of Kirkland Signature products. It might be hard to spot them at a Costco store, but in their homes it’s clear where their loyalties lie: Everything is signed by the Kirkland name. Olive oil, toilet paper, paper towels, coffee grounds, wines, batteries — If Costco has packaged it under its label, you can bet the Kirkland die-hards have tried it at least once.

2. Weekday shoppers

We might also call these the shrewdest of the bunch. These shoppers are averse to lines and crowds and know the best time to shop at Costco is during the week. You might even see them pushing their carts in the — gasp — center of the aisle, because, guess what? They don’t have to worry about people coming up behind them or bumping into them upfront.

3. Stock-uppers

Whether they live far away from a Costco warehouse or they’re preparing for a doomsday scenario, the stock-uppers show up at Costco and buy a van-load of stuff to last a presumably long, long time. They’re not necessarily hoarders. They’re just taking advantage of what Costco does best: Giving us supremely good deals when we buy in bulk.

4. One-time purchasers

Of course, you don’t have to buy in bulk to help your personal finances at Costco, and the one-time purchasers know this well. Truth is, Costco frequently runs good deals on single items, like electronics, appliances, travel packages, outdoor equipment, and car tires. It might even be worth it to buy a Costco membership for a single purchase, but only if the savings are big enough to be worth the effort.

5. Samplers

The samplers give Costco’s sampling representatives a job to do. They never say no to a sample, even if they truly have no interest in buying it, and you can sometimes see them circling the aisles with almost nothing in their carts.

Another kind of sampler are those who are enthusiastic about Costco’s return policy. We might say they return things with a little more giddiness than others, treating it as an extension of the sampling stands. These shoppers, like all Costco members, can return most items at any time for a full refund, but they shouldn’t use the privilege too liberally. Costco could terminate your membership if you’re abusing its policy.

6. Executives

As you might guess, executives have an Executive Costco membership and earn 2% back on their Costco purchases. Every now and then, you might see them paying with their cash back vouchers (usually in March or April), which hopefully amount to more than $60, as they have to pay $60 extra each year ($120) to be a part of this group.

7. Fashionistas

A refined class of Costco shoppers, these members know how to spot the best deals on clothes. Most importantly, they know when Kirkland Signature clothes match the style of a more fashionable label, resulting in savings when the clothes, though indistinguishable, are much different in price. If you befriend a Costco fashionista, hold on to them for as long as you can — they’re an invaluable asset when you’re shopping for new clothes.

8. The budgeteers

The budgeteers are a very peculiar class of Costco shoppers. Typically, you can spot them by one characteristic: They carry their purchases out of Costco in one or two hands. Yes, no cart needed. We might say they’re ultra-disciplined, ultra-focused, ultra-rigid. Truth is, they’re on a strict budget and are not fazed by all the great, low-priced, tasty products that are not within their spending limits.

Truly, I admire the budgeteers, since they can squeeze value out of a Costco membership without letting it generate excess consumerism. You won’t see them walking out of Costco with a three-pound bag of Haribo gummy bears (which are great by the way and have lasted me one and a half months).

9. Instacarters

A relatively new breed of Costco shoppers, the Instacarters don’t shop at Costco warehouses. They order their groceries through Instacart or Costco’s app. Of course, they know by doing so they’re paying slightly more for each Costco product, as there’s a surcharge for buying things online. But if it means avoiding traffic and parking, the Instacarters are willing to pay a little extra to shop from their couches.

This list isn’t meant to be exhaustive (we didn’t even touch on the foodcourters). But next time you’re at Costco, take a look around. Chances are you’ll spot a few examples of these personas, or demonstrate one or several of them yourself.

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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Curious about CDs? Read on for a few things you should know about getting started with CDs. [[{“value”:”

Certificates of deposit (CDs) have gained popularity recently because many of them pay high yields, including some that are above 5%.

But even though CDs can be a great place to put your money, they can be confusing for beginners. Here are a few tips to help you better understand them if you’re just starting with CDs.

1. Ask yourself what you want your money to accomplish

The first thing you should consider is why you want to put money into a CD. This is important, because knowing your goal for your money is necessary to make the right decision. For example, ask yourself if you’re trying to make money or preserve what you currently have.

Even a high-yield CD isn’t the best place for your money if you want that money to grow for your retirement. In that case, putting your money in the stock market, with its historical average annual rate of return of 10%, is a better investment.

However, if you just want some of your money to grow so its value outpaces inflation, a CD is a great choice. Also, if you’re risk-averse and want a low-risk place to keep some of your money, a CD is a great option.

2. Comparison shop for the APY

There are many places you can invest in a CD. Your bank likely offers CDs, but it might not have the best annual percentage yield (APY). That’s why it’s a good idea to shop around for the best CD rates.

I bank at Wells Fargo, which currently has a 1-year CD APY of just 1.50%. In contrast, many online banks will pay an APY above 4.00% right now.

If you have $3,000 to put in a CD for one year and chose a CD issue that paid 4.50%, you’d earn about $135 in interest over that time. In contrast, the CD paying 1.50% would earn you only $45 in interest.

3. Check the early withdrawal fee and minimum deposit amount

Many CDs have a required minimum deposit, so double-check before you choose one. Some will have as low as $0 deposit minimum, while others may be several thousand dollars. There’s no use wasting time finding a CD with the right APY if the minimum deposit is more than you can afford.

Additionally, you should know that if you withdraw your money early, you’ll likely have to pay a fee. For CDs with maturity terms longer than 24 months, you’ll typically pay a penalty fee of 180 days of simple interest on any money you withdraw early. For CDs with terms of 24 months or shorter, the penalty fee is usually 90 days of simple interest on the amount withdrawn early.

For example, if you put $3,000 into a 3-year CD paying 4.50% but take all of it out after one year, you’ll likely pay a penalty of about $66. Each CD issuer sets its own penalty terms, so make sure you look closely at the fees before you invest your money.

4. Start with a short-term CD and a little bit of money

Putting your money into a 6-month CD might be a good choice if you’re just starting out with CDs. It’ll give you a chance to see how you feel about having your money locked up for a period of time, without having to wait too long to get it back.

Additionally, it may be best to start with a small amount of money for your first CD. Doing so will help you learn how it feels to have your money in a CD, compared to having it invested in stocks or in a savings account.

It’s worth mentioning that any money you think you might need for emergencies or other expenses should not be placed in a CD.

5. If you’re interested, you may want to act soon

CD rates are influenced by the federal funds rate set by the Federal Reserve. When the Fed began raising interest rates to tamp down inflation a couple years ago, CD rates began to rise.

Many economists expect the Fed to cut interest rates later this year, with multiple cuts possible before the end of the year. If this happens, CD issuers will likely lower the interest rate they pay for CDs.

So if you’re interested in CDs and want to snag the highest rates, now is an excellent time to do so.

CDs don’t have to be intimidating, and understanding a little more about them should give you the confidence to put money into one. But if you’re still not ready, you can always opt for a high-yield savings account. These will let your money earn interest, without the early withdrawal penalties that CDs have.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

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. Chris Neiger 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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Rewards and credit card debt don’t mix. Find out how chasing rewards while you’re paying off credit cards could do you more harm than good. [[{“value”:”

Credit card debt is all-too-common in the United States. Collectively, Americans have $1.129 trillion of it, according to credit card debt research by The Motley Fool Ascent.

It’s not an insurmountable issue. Even if you have a lot of credit card debt, you can get rid of it by making it a priority and paying as much as you can. But some people make this much harder on themselves than it needs to be, because of one key mistake: They split their focus between paying off debt and earning rewards.

Earning points or cash back is always tempting. When you’re in credit card debt already, it could keep you there much longer and at a much higher cost.

The math doesn’t work out in your favor

With rewards credit cards, you can generally expect to earn 1% to 2% back on purchases. Some cards have bonus categories where you can earn more than that, but not all your purchases will be in those areas.

To make it easy, let’s say you spend $30,000 per year on a card that earns 2% back. You’ll end up with $600 in cash back — a great return, if your credit card isn’t costing you anything. If you’re paying interest, it’s a different story.

The average credit card interest rate is 22.77% on interest-bearing accounts (credit cards that charge interest, which excludes cards charging a 0% intro APR). That’s a whole lot more than the 1% or 2% you can earn in rewards.

Let’s say your credit card balance is right at the national average of $6,501. If you carry that balance for a year, it will cost you $1,480 in interest. Even if you’re earning rewards, you’re still losing quite a bit of money.

You’ll be pulled in two opposite directions

Chasing rewards while you have credit card debt isn’t just a problem for mathematical reasons. You’re also trying to do two things that are at odds with each other.

Rewards incentivize spending money. That’s why card issuers offer them. They know that people love earning points and sign-up bonuses, and that these benefits will drive many cardholders to spend more. Even if you don’t spend more than usual, the only way to earn rewards is to use your credit card.

Paying off credit card debt goes faster when you reduce your spending. It’s also much easier to do if you stop using your credit cards entirely and use your debit card instead. That way, you’re not adding to your balances anymore.

Part of the reason some people stay in credit card debt for so long is because they keep using their cards. This slows down your progress. Even as you’re paying down your debt, you’re also adding to it every time you make a purchase.

Get out of debt first and save rewards for later

You can save money thanks to credit card rewards — but only if you’re not paying any interest. For that reason, it’s better to pay your credit cards down to $0 first.

The most effective way to get out of credit card debt is to pay as much as you can toward it. Here are a few tips that can help with this:

Look for expenses that are easy to reduce, such as going out to eat or streaming subscriptions. Cut back where you can and redirect that money toward your debt.Try a budgeting app to see exactly where you’re spending and more opportunities to save.Pick up extra hours at work or add a side hustle to increase your earnings. Add that extra income to your monthly credit card payment.Come up with an amount you can commit to paying every month, such as $500. Always pay at least this much, and if you can, pay even more.

If you have a good credit score, you could also check out balance transfer credit cards. These have a 0% intro APR on balance transfers. You can transfer over your debt and pay it down at the 0% introductory rate. They don’t pay off your debt for you, but they can help speed up the process and save you money on interest.

Once you’re out of debt, get into the habit of always paying your credit card bills in full. If you do this, you won’t be charged any interest. When you’ve made it a habit, then it’s a good time to start focusing on earning rewards.

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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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