Money Management

It can cost a lot of money to sell a home. Read on to see why sellers may soon be in for relief. [[{“value”:”

It’s more than possible to sell a home without enlisting the help of a real estate agent. But that doesn’t mean selling a home on your own is easy.

If you’re not well-versed in negotiating with buyers and their agents, you could end up getting in way over your head. And you may not have the time to market your home and respond to multiple offers while also holding down a job. That’s why so many home sellers inevitably turn to real estate agents for help, despite the costs involved.

It’s common to pay real estate agents a commission in the course of selling a home. In recent years, 6% commissions were common. That’s because sellers have historically been on the hook for paying not just their agents’ commissions, but covering the cost of a commission to the associated buyer’s agent.

But a big reason for that boils down to the rules established by the National Association of Realtors (NAR), which represents more than 1 million Realtors. And soon, those rules may be changing for the better.

The cost of selling a home could drop

The NAR was recently sued by a group of home sellers for violating antitrust laws — namely, by setting rules that led to inflated industry-wide commissions for Realtors. (For clarity, a Realtor is a licensed real estate agent who belongs to the National Association of Realtors. All Realtors are real estate agents, but not all real estate agents are Realtors.)

The NAR just settled that suit by paying out $418 million in damages and eliminating the rules it had previously established with respect to commissions. The most notable change is that going forward, sellers will not have to pay both their agent and their buyers’ agents a commission for selling a home. Rather, sellers will be able to simply pay their own agent alone.

Furthermore, agents should now be able to lower their commission rates to drum up business. The result? A more competitive housing market, and one that could leave sellers and buyers paying less.

Everyone stands to win

TD Cowen Insights says that for the average-priced American home sale, sellers are paying more than $25,000 in agent fees on a $417,000 base price. This change could cause that fee to fall to $6,000 to $12,000.

At first, it may seem like sellers are the ones who will win in light of this development. But this change has the potential to benefit home buyers, too.

If sellers don’t have to spend as much to sell their homes, they may not have to charge as much for their homes. These days, buyers are facing a double whammy of expensive mortgages and elevated home prices. This change won’t drive mortgage lenders to lower their rates, but it may cause sellers to lower their listing prices, leading to better affordability for buyers.

All told, the NAR’s settlement has the potential to really open up the housing market in a positive way. Realtors may soon be in a position where they can opt to lower their commissions to entice sellers, which may benefit both parties (sellers pay less, and Realtors get more business).

To be clear, the NAR has not proposed a suggested commission structure as part of its settlement agreement. But the days of the standard 6% commission may soon be behind us, and that’s a positive thing overall.

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Pet food companies are in business to make a profit. Take a look at some of the lies they tell to get you to spend money. [[{“value”:”

Between pet insurance, grooming costs, and meeting everyday needs, it’s expensive to be a pet owner. However, most pet owners adore their dogs, cats, rabbits, and other non-human family members and care about what they eat. It’s not always easy to know if they’re getting it right, though.

How is someone supposed to know when a pet food company is lying? We’ve identified some of the most obvious fibs.

1. “We list ingredients with the greatest amounts first”

American consumers have been taught that the first ingredient listed on a bag or can of pet food is the “main” ingredient. And pet food companies know pet owners want that main ingredient to be meat. Some companies have found a clever way to get around the issue. Take a look at this example:

Ingredients: Beef (25%), Rice (20%), Corn (15%), Ground yellow corn (10%), Corn gluten meal (10%), Pea protein (10%), Potato (5%), Potato starch (5%)

At first glance, it appears that beef is the primary ingredient in the pet food. However, if you look closely, you’ll notice that the main ingredient is actually corn. The pet food company knows that if it breaks the corn products down into different categories, it can list each of those categories lower on the list. In this example, if you add up the three different types of corn, you see that corn makes up 35% of the total ingredients.

Instead, do this: Look for the same word repeated in a different form. In this example, corn is listed in three different ways.

2. “Here’s how much protein this pet food offers”

If you’re looking for a protein-rich diet for your pet, you might be swayed by pet food packaging that reads, “60% protein!”

It’s fair to guess that most consumers would believe the entire 60% of protein comes from meat, but that’s often not the case. There may be meat or eggs in the pet food, but it’s just as likely that the company has added less digestible plant protein, like wheat gluten meal or pea protein. Adding plant proteins is cheaper for the manufacturer and allows them to claim the food is rich in a nutrient shoppers are looking for, even if it’s not good for pets.

Instead, do this: Don’t take the manufacturer’s word for it. Look for the percentage of meat or egg-based protein.

3. “This food is 100% grain free”

This is not so much a lie as a partial truth. Often, when a pet food manufacturer decides to go grain free, it looks for other ways to keep its costs low and profits high. What some companies land on is including larger portions of peas, potatoes, and tapioca — simple carbohydrates that do little to improve a pet’s health.

Instead, do this: Rather than take the pet food company’s word for it, go through the entire list of ingredients to identify how many simple carbohydrates the food contains. Cats and dogs need very few carbohydrates in their diets. For cats, it’s 10% to 15%, and for dogs, it’s around 7% to 14%. Run through the ingredients listed on the packaging. If it’s carb-heavy, you know the manufacturer has replaced grain with carbohydrates.

4. “It’s 100% hypoallergenic”

While animals have probably always had allergies, they’re being diagnosed more widely now than ever before. Pet food companies have stepped into the niche of selling food they call hypoallergenic to worried pet families. Here’s the rub: There is no such thing as a “hypoallergenic” pet food. A pet can develop an allergy to any food it’s exposed to.

The only way to find hypoallergenic food is to locate a food that does not contain any of the ingredients a particular pet is allergic to. There is no way for a pet food manufacturer to create food that addresses every potential allergen.

Instead, do this: If your veterinarian tells you your pet has developed an allergy, ask them to identify the specific allergen. Once you know what the pet is allergic to, shop for foods that don’t contain the allergen. If your vet recommends a prescription diet, see if your pet insurance policy can defray some of your costs. This isn’t a given, but some insurance plans may.

5. “Diet pet food will cause your pet to drop weight”

Like many popular human diets, pet diets often consist of reduced-fat meals. However, when dog food manufacturers cut fat from their formulas, they tend to add more carbohydrates to their recipes. There’s a good chance that a low-fat, high-carb diet will do little to help your pet lose weight. What it will shrink is the size of your checking account.

Do this instead: Rather than invest in expensive diet pet food, consider cutting the amount of your pet’s regular food and supplementing it with high-quality meat. The protein will give your pet energy and help them drop pounds.

Misleading advertising appears to be the way of the world, at least for now. Until better consumer protections are in place, you’ll have to be vigilant about investigating which claims to believe and which to discard.

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Celebrate Women’s History Month by taking a deep dive into your finances. Keep reading to learn how. [[{“value”:”

March is Women’s History Month, and while women should be celebrated every single day of the year, I’ll admit this is a really excellent time to focus on women’s finances in particular. Making positive changes to the way you save, invest, and even think about money can help you build more security, freedom, and happiness. Here are three key moves that can improve your financial standing, this month and long into the future.

1. Save for emergencies

Could you handle a $500 emergency from your savings? According to SecureSave, 63% of U.S. employees couldn’t. Growing your savings account balance is easily one of the best things you can do for yourself.

The typical recommendation for an emergency fund target is enough cash to cover three to six months’ worth of regular expenses. But if you’re starting from $0, that probably sounds daunting. So don’t focus on that — instead, focus on making savings contributions a regular part of your financial life.

Some people have success through automation — you can set up an automatic transfer from your checking account to savings on a regular schedule (say, whenever you get a paycheck). If the money lands in a high-yield savings account, it’ll grow even faster with interest.

And if you don’t earn enough to save much, I have been in your shoes. Increasing my income was the only way I managed to build savings. Consider asking for a raise at work, or even changing jobs; that can be a more effective way to boost your pay than assuming your current employer will. You could also pick up a casual side hustle for a few hours a week. Nothing feels better than getting a big bill from the auto mechanic and having it be an annoyance rather than a catastrophe.

2. Prioritize investing

Did you know that women are less likely than men to have retirement savings? According to 2018 data from the U.S. Census Bureau, 50% of women aged 55 to 66 have $0 in personal retirement savings — compared to 47% of men. And since this data is a few years old, I wonder how much worse the problem is now, after a few years of COVID-19 and inflation worsening many people’s personal finances.

What’s more, data about women investors collected by the Motley Fool shows that we’re actually more successful investors than men are. This is despite the fact that we’re less likely to actually do it (and sadly, have less money to put in thanks to the continued gender pay gap). This could be explained by our more conservative and less impulsive approach to investing.

Investing money to grow for the future (especially for your golden years) is absolutely crucial — you’ll find it difficult to get by on Social Security alone. If you have access to a 401(k) or other employer-sponsored retirement plan, that’s an easy way to get started. And if you qualify for an employer match to your contributions, that’s like getting free money. If you don’t have access to such a plan, it’s easy to open an IRA, be it Roth or traditional. Roth IRAs grow your money tax-free, but traditional IRAs lower your taxable income now.

3. Maintain at least some financial independence

I’m certainly not shy about advocating for women’s financial independence. In fact, yesterday I was chatting with my downstairs neighbor. She’s currently weighing her options for work after leaving a toxic job situation, and her sweet boyfriend is stepping up a lot financially. I flatly warned her to never leave herself without money and a way to earn it. Domestic violence (which includes a financial component 94%–99% of the time) can happen to anyone — and life can be unpredictable under the best of relationship circumstances.

Even an amicable breakup can leave you in dire financial straits — after a divorce a few years ago, I was seriously afraid I’d end up living in my car due to my inability to cover all my bills alone. Things turned out OK, thankfully — but this isn’t the case for every woman.

This isn’t to say that women should never split the rent with anyone — living alone is expensive. And if you’re in a relationship, you likely have shared financial goals, such as having kids, buying a home, or retiring early. Just be cautious about combining finances with another person — it’s a wise idea to open a joint account for shared bills and also maintain your own bank and retirement accounts, for example. And investing in your professional development to give yourself a leg up on staying employed (and increasing your income) is one of the best ways you can maximize your financial growth.

This is easily the best time in history to be a woman, but we’re still not where we should be as far as equal pay and equal access to human rights — even in such a rich country as the United States. Use these tips to build financial success and the opportunities that come along with it.

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It’s one thing to become wealthy, and it’s another to stay wealthy. Read on to see how the rich do it. [[{“value”:”

You’ll often hear the term “the 1%” tossed around in the context of personal finance success. Forbes Advisor says that to be in the top 1%, you need a net worth of about $11.1 million. Yikes.

But while it’s one thing to build enough wealth to get into the 1%, it’s another thing to actually stay there. Here are some of the things the 1% do to retain their wealth.

1. They invest on a long-term basis

Investing money is a great way to build wealth. If you invest $20,000 today and your portfolio generates a 10% yearly return over the next five decades, which is in line with the stock market’s average, you’ll end up with almost $2.35 million — based on just $20,000!

But it’s not just that wealthy people invest their money to get rich. They also stay invested once they are rich.

In fact, investing is something you should aim to do on a long-term, continuous basis, even if you’re nowhere close to the 1%. No matter how much wealth you’ve accumulated personally, maintaining an investment portfolio could help you hang onto the money you’ve amassed and potentially set you up to pass some wealth down to future generations in your family.

2. They diversify their investments

Diversifying investments is a great way to build wealth as well as continue generating strong returns within your portfolio. It’s also a good way to protect yourself from losses during a market downturn.

Let’s say you’ve put together a winning stock portfolio, but the market crashes. You may be able to minimize your losses if you also have a portfolio of real estate investments.

Of course, you don’t lose money in a stock market crash (or a real estate market crash) if you don’t actually sell off investments at a loss. So another thing the rich often do to maintain wealth is load up on different assets that continue to pay them, even when market conditions are sour.

Many companies, for example, might continue to pay dividends even when their share prices have fallen. And if you own rental properties, you can continue to receive rental income even if the value of those homes has declined.

3. They steer clear of high-cost debt

Wasting money on high-interest debt means having less money to save and invest. It’s important to avoid high-interest debt if you want to both build and maintain wealth. So to that end, aim to use credit cards cautiously. Only charge expenses you can pay off in full, and maintain a solid emergency fund so you’re not forced into expensive debt if unplanned expenses arise.

Of course, people in the1% are less likely to have to turn to a credit card when surprise bills pop up. Those in that boat can commonly liquidate investments when a need for cash arises. But it’s still wise to avoid expensive credit card debt to the greatest extent possible.

Maintaining wealth takes work. Even if you’re nowhere close to the 1%, it pays to do what you can to maintain the wealth you’ve worked hard to build. And you can use the same tactics the ultra-rich do in that regard.

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There’s much to be gained from joining Costco. Read on to learn about the benefits you might enjoy. [[{“value”:”

Many people join Costco to save money on things like groceries and household essentials. But the benefits of a Costco membership extend well beyond discounted milk, produce, and eggs.

Did you know, for example, that Costco offers big savings on eyeglasses and prescription medications? And were you aware that you can save money on things like stamps and flowers by going through Costco?

Because the chain’s offerings are truly immense, many people don’t realize just how many perks members are privy to. Here are some of the lesser-known benefits of having a Costco membership.

1. Hassle-free returns

Costco has one of the friendliest return policies you’ll find at a major retailer. With few exceptions, you can bring back any item at any time for any reason. So if you purchase apparel and change your mind about it five months after the fact, simply head to customer service and ask for your money back. You don’t even need to bring a receipt, as Costco will be able to look up your purchase based on your membership number.

2. Low-cost eyeglasses and contacts

Costco’s optical centers offer a host of great deals on glasses, contact lenses, and sunglasses. And if you’re not sure whether your prescription is up to date, know that you may be able to get your eyes examined at a Costco location in town. Plus, Costco Optical accepts most vision insurance plans (though you may want to contact yours to make sure Costco is in your plan’s network). Also, if your prescription is current, you may be able to purchase your glasses or contacts online, saving you a trip to the store.

3. Discounted gift cards

Costco carries a range of gift cards at below face value. You may, for example, find $100 worth of gift cards to your favorite pizza chain for only $80. You can also find gift cards that can be redeemed for low-cost tickets to sporting events and other live events. And while the selection of gift cards available at your local store may be limited, you can always look online for an even wider range of choices.

4. Extended warranties on electronics

Electronics purchases are often a big deal, such as if you’re spending $1,200 to upgrade a laptop or plunking down $1,000 or more for a new TV you’ve been saving for. The benefit of buying electronics at Costco is that you get a free second-year warranty included. That gives you peace of mind when you’re spending a larger sum. It also saves you from having to purchase a separate extended warranty elsewhere.

5. Free tech support

There’s nothing more frustrating than bringing home a new laptop or TV only to find yourself struggling to set it up or navigate its functions. As a Costco member, you’re eligible for free tech support related to the items you purchase at the store or on Costco.com. That way, you don’t have to pay a local tech person to come out and help you troubleshoot. Plus, you might save yourself a fair amount of time and frustration.

6. Great deals on travel

Costco’s travel service gives you access to a host of fabulous vacation packages, from cruises to resorts to theme park destinations. Not only might you enjoy some savings on travel by booking through Costco, but you may be eligible for exclusive deals a local travel agent can’t access. Plus, when you book travel through Costco, you get the support of a professional who can answer questions about your itinerary and help you work through issues that may arise.

7. Floral delivery

Sending a floral arrangement can be an expensive prospect. Costco’s floral delivery service, on the other hand, gives you access to a range of options at competitive prices. You can also buy flowers in bulk for a big event, such as if you’re planning a wedding and want to use Costco to decorate your tables with centerpieces. And if you need flowers sent out in a pinch, some arrangements are eligible for next-day delivery.

8. Lifetime maintenance for your tires

If you purchase your tires at Costco, you’re entitled to free pressure checks, balancing, and rotations for the lifetime of those tires. You may also be eligible to have flat tires repaired for free. And whether you buy your tires at Costco or not, if they need air, that’s a self-service option you won’t have to pay for, either.

9. The option to shop anywhere

As of February 2024, Costco had 603 warehouse club locations across 47 U.S. states and Puerto Rico. The nice thing about having a Costco membership is that it gets you into any store location of your choice. So if you’re traveling, for example, and need milk or fruit to keep at your vacation rental, you can pop into Costco at your destination without any trouble. You can also bring your children along with you, plus up to two adult guests.

10. Cash back on your purchases

An Executive membership at Costco costs $120 a year, which is double the cost of a basic membership. In exchange, you get 2% cash back on your Costco purchases, including those made online. If you spend more than $3,000 at Costco in a year, you come out ahead financially by paying for the upgrade. An Executive membership also isn’t something you have to commit to, as you can downgrade to a basic membership at any time.

Being a Costco member comes with numerous benefits. If you’re on the fence about joining Costco, keep these perks in mind. And if you’re already paying for a membership, make sure to take advantage of these terrific savings opportunities.

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

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You have options when it comes to your tax refund. Take a look at how to determine the best way to use that money. [[{“value”:”

The majority of Americans will have their annual tax return filed in a little over a month, and many are waiting for a refund. If that’s the case for you, you may already have plans for the money. After all, it’s become a bit of an American tradition to splurge as soon as the funds are available. Before you book a vacation or buy a new wardrobe, though, take a look at some of the more underrated uses for tax refund dollars.

Invest in your home

If you own a home, you know how much maintenance and upkeep cost. If you have small, nagging jobs that should have been taken care of months ago, using your tax refund to get them completed is a smart use of the money. Here’s why: The sooner you take care of small problems, the less likely they are to become big (and more expensive) problems.

But there are also other long-term benefits to taking care of issues now.

You’ll be more comfortable. Let’s say the windows in your home leak air. Spending the money to seal the windows is likely to make you more comfortable. Whether it’s warm or cold outside, you can maintain a constant temperature throughout the house.You’re likely to save money. As mentioned, you’ll save money by catching small problems before they get bigger and more expensive. However, another benefit of making repairs now is how much money you can save on utility costs. Whether having your furnace cleaned or adding awnings over the living room windows, there are dozens of ways to improve energy efficiency.Any repairs you make now can add value. You may not be thinking about selling your home, but if you ever do, you want it to be worth as much as possible. That’s far more probable if you make regular upgrades and repairs.

While the price tag associated with maintaining a home helps explain why so many people delay repairs, staying on top of maintenance issues can save you money today and make you money in the future.

Unshackle yourself from high-interest debt

I understand the desire to splurge when money appears, but if you splurge while also carrying high-interest debt, you’ll do nothing to improve your financial condition.

Let’s say you owe $5,000 on a credit card carrying a 22% APR. If you make the minimum monthly payment of $142, it will take you nearly five years to pay the card off in full. Worse yet, you’ll part with an extra $3,107 in interest payments.

Imagine what you could do with that $3,107. You could tuck it away in a high-yield savings account and watch it grow or otherwise invest it in a way that ensures you’ll make a profit (and not the credit card company).

Build a “someday” fund

Back when my husband was finishing graduate school, one of our sons wanted to play ice hockey. There was absolutely no way we could swing the cost at that time. And even though our son played several different (less expensive) sports, I remember feeling awful for not being able to provide him with the opportunity to try hockey.

The good thing about feeling awful is that lessons learned tend to stick. What that taught me was the importance of keeping an emergency savings account in case things go south for us. However, because of situations like not being able to afford ice hockey, I’ve also gotten in the habit of keeping a smaller “someday” fund. I’m not sure what I’ll do with it, but if a non-emergency situation arises, I’ll have a small pool of money to draw from without doing any damage to our emergency fund.

Whether you’re getting $1,000 or $3,000 back this year, consider putting it away for someday.

Invest

Ask anyone sending their kids off to college or nearing retirement whether they’re glad they waited to invest. Actually, don’t bother. I can tell you.

When the finance software company Quicken surveyed around 1,000 Americans last November, 80% said they had some financial regrets. And one of those regrets? Not investing aggressively enough.

Investing is one of those things we try to convince ourselves we have more time to do. However, the younger you are when you begin, the more time compound interest has to do its thing. Here’s what I mean:

Thanks to compound interest, you’ll notice that a single $3,000 investment roughly doubles in value every 10 years. Whether you invest in a traditional IRA, Roth IRA, or are inspired to contribute more to your company’s retirement plan, time equals growth.

If you don’t have a firm plan for your refund, remember that you always have the option of investing it for your future — and watching it grow.

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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.Dana George 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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