Money Management

There’s a simple way to reduce spending at Costco without settling for less. Read on to see why switching brands could make all the difference. [[{“value”:”

Shopping at Costco can give your credit cards a workout because the warehouse club has so many amazing products for sale. From household electronics to groceries and more, just about everyone can find stuff they need — and want — when they visit Costco.

The problem, though, is that your bills can get out of hand when you fill your cart at Costco, even if the store does sell items for less, since you can take advantage of bulk shopping. The good news is, you can avoid draining your checking account if you follow this simple tip. It’s the single easiest way you can reduce your Costco spending without sacrificing quality.

This move could save you 20% or more on your Costco bills

The best and simplest way to reduce what you spend at Costco is to switch to buying Kirkland brand products for as many items as you can.

Kirkland is Costco’s house brand. There are more than 350 different Kirkland products for sale at the warehouse club, including clothing, grocery items, health and beauty items, baby items, pet food, and home and kitchen items.

Costco is rigorous in its selection process when deciding what products can be sold under the Kirkland label, and one of the key rules it set was that these store-brand items had to save customers at least 20% off of the already-low Costco prices for that particular product. This means if you make a change to buying Kirkland items instead of your favorite brand names, you could be looking at slashing your bill by as much as 20%. If you spend $100 on every Costco trip, you’d have $20 extra left in your pocket.

Can you really switch to Kirkland products without sacrificing quality?

Now, you may be thinking that buying the store brand is obviously cheaper, but that the quality is probably lower than the name brand. But that is not at all the case with Costco. In fact, a huge number of the store’s Kirkland products are actually made by the same big-name manufacturers that are household names.

For example, some of the brands behind the Kirkland Signature label include:

StarbucksDuracellBumble Bee TunaDiamond Naturals (dog food)HuggiesReynolds aluminum foilKeurigOcean SprayJelly Belly

So you could buy any of these other products being sold under the Kirkland name for a fraction of the cost of the name brand price and get essentially the same product.

Costco customers regularly rave about Kirkland deals, with many loving not just the low prices but also the great taste and wide selection. Reddit favorites include Kirkland olive oil (described as some of the “best you can buy”), as well as dishwasher detergent tabs, artisanal bread, various cheeses, and much more.

There’s no reason to pass up these perfectly great products when doing so could save you 20% or more on your bill. Just be sure the next time you’re at Costco you check out Kirkland products first and switch to as many of them as you can. By doing that, you’ll be surprised at how easy it is to use your Costco membership to improve your personal finances while still getting the same products you love.

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

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Fearing an audit at tax time only adds to the stress. Look at how using tax preparation software can help you avoid the hassle of an audit. [[{“value”:”

The odds of your tax return being audited are roughly 3 in 1,000, or 0.3%. But a Lexington Law survey found that 25% of us are afraid of an IRS audit. Some people will try anything, from paying top dollar for an accountant’s help filing their returns to buying tax software with all the bells and whistles. And yet, we’re not precisely sure if either expense is worth the money. Here, we take a look at what tax preparation software can (and can’t) do for taxpayers.

The reality

Even the best tax preparation software can’t prevent taxpayers from making silly mistakes, like transposing numbers or forgetting to electronically sign a return. Either simple mistake will earn a letter from the IRS. Sure, tax prep software will double check math, but if the wrong numbers are entered, the program can only work with what it’s given.

There were more than 141 million tax returns filed last year. Of those, a tiny portion will be audited. If you’re worried about the IRS coming after you for forgetting to add your child’s Social Security number or misspelling your spouse’s middle name, you’re worried about nothing. While there’s a good chance the revenue service will send a polite letter asking you to correct the error, the IRS processes far too many returns to get worked up about honest mistakes.

Even if you end up owing money, there’s no reason to panic. If you don’t have enough money in your bank account to pay the IRS, it is surprisingly easy to work with. The IRS routinely sets up payment plans to help taxpayers get their tax bill paid.

What triggers an IRS audit is cheating — deliberately lying to avoid taxes or receive a larger refund. And that’s where tax preparation software may come in handy. Some software allows you to run a review before you file a return. The review looks for potential red flags — the type that triggers audits in the first place.

What else you can do

If you’re concerned that you might be audited, there are options that could help you sleep easier at night. They include:

Don’t file too early: No matter how anxious you are to get your taxes over with, wait until you have all the documentation you need to begin your return.Check and double check your return: This includes checking your math, ensuring you haven’t made any spelling mistakes, and combing through your return line by line to make sure you haven’t left anything blank.Report all income: No one wants to pay more in taxes than they have to. However, honestly reporting all sources of income makes it less likely you’ll be audited.Take realistic deductions: For example, if you itemize charitable contributions, don’t claim the tuba you donated was worth five times its actual value. Also avoid claiming excessive mileage or cash deductions.Have evidence: Make sure you have the paperwork necessary to back up any claimed losses.

While tax preparation software can’t catch every potential mistake, some of the biggest names in prep software do offer audit support in the event you receive the dreaded letter. Worry-free audit support is typically available for an additional fee, but it may be a small price to pay for peace of mind. Here’s a sample of four tax prep software companies that offer audit support:

H&R Block Worry-Free Audit SupportTurboTax Audit DefenseTaxSlayer Audit Maintenance ProTaxACT ProtectionPlus Audit Defense

Whether you’re looking forward to receiving a refund that you can sock away in your savings account or simply want to get taxes over with for the year, tax software can make the process easier. However, it’s not a catch-all. You’ll still need to do your part by ensuring your tax return is filled out as completely and accurately as possible.

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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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If you could make just a few moves to be happier about your money, what would they be? See the biggest causes of happiness in personal finances. [[{“value”:”

Do you know what makes the biggest difference between people being happy or unhappy with their personal finances? According to a recent survey from Wells Fargo and The Female Quotient (The FQ), people who are happy about their money situation are significantly more likely to experience certain achievements and money moves.

Let’s look at the top three priority money moves that could make the biggest difference to your financial happiness, according to survey data.

1. Making more money

Being able to make enough money to support yourself and your loved ones can make a big difference in your financial happiness. Survey data from Wells Fargo and The FQ found that:

Among people who are “happy” with their financial situation, 58% had earned enough money to support themselves/support their families during the past year.Among people who are “unhappy” with their finances, only 20% said that they had earned enough money during the past year.

This “happiness gap” of 38% was the biggest difference between financially happy and unhappy people. This survey insight shows how powerful it can be to earn a good enough income to pay your bills and provide for your loved ones — and how painful it can feel when you don’t.

If you want to boost your earning power in 2024, you should start by looking for opportunities at your job to get a pay raise or promotion. If your company is being less generous with pay raises, look for other opportunities in your career field. Or look at ways to increase your professional value to more confidently ask for a raise, or consider a career change.

Another way to raise your income is to start a side hustle. Side hustles take time and effort, and not everyone has a flexible schedule or enough energy to make extra money on the side. But if you can make extra cash with a side hustle, it feels energizing and inspiring to see that money coming into your bank account.

2. Having emergency savings

According to the survey from Wells Fargo and The FQ, among financially “happy” people, 48% had an emergency savings fund. But only 11% of financially “unhappy” people could say the same. Having emergency savings (or not) is related to a “happiness gap” of 37% — the second biggest difference-maker, according to the survey.

During the past few years of fast-rising prices and stress-driven “doom spending,” many Americans have depleted their savings accounts. If you want to reverse this trend in 2024, consider signing up for a budgeting app. Or find creative ways to save money, like hosting food prep parties with friends instead of spending money on restaurants.

3. Having good credit

The third biggest difference-maker in financial happiness, according to the Wells Fargo/The FQ survey, was having a good credit score:

65% of financially “happy” people said that their credit score was good.Only 29% of financially “unhappy” people had a good credit score.

This is another big difference between people who are happy and unhappy with their personal finances. Having good credit (or not) represents a happiness gap of 36%.

Want to improve your personal finances? You might want to start by improving your credit score. Having good credit is like getting welcomed into a velvet-rope nightclub where everyone is getting slightly better service and special perks. People with higher credit scores are more likely to save money on loan interest (by getting lower APRs) and qualify for the best rewards credit cards. Having a higher credit score can even help you save money on auto insurance, get hired, or get approved for renting a home.

A good first step for increasing your credit score is to sign up for a credit monitoring service. These tools can help you understand why your credit score is what it is and make better-informed decisions about how to use your credit in the way that helps you the most. You can also sign up for credit-building products like Credit Sesame’s Sesame Credit Builder, or a secured credit card.

Bottom line

The recent survey from Wells Fargo and The FQ found the top three money moves that can make the biggest difference in financial happiness. People who are happy with their personal finances are much more likely to have a good enough income to support themselves, an emergency savings fund, and a good credit score.

If you want to feel better about your money in 2024, you might want to start by prioritizing those three areas: Go for a pay raise or start a side hustle to increase your income, boost your savings account balance, and build your credit.

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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 recommends Maker. The Motley Fool has a disclosure policy.

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Costco’s known as a great place to save, but that’s only true if you aren’t making these common shopping mistakes. Read on for more. [[{“value”:”

The average Costco shopper spends around $150 a trip. With that much money on the line, it’s easy to see how Costco can be a personal finance boon — or a disaster.

Shopping smartly, you can find some fantastic deals in those hallowed aisles. If you’re making some of these common Costco mistakes, however, you may be losing out on savings. Here’s what to avoid.

1. Buying things in bulk you don’t use enough

One of the key ways Costco saves you money is by selling things in bulk. You’re buying more, yes, but the per-unit price is typically much lower than you’d pay for smaller quantities at a big-box or grocery store.

The trouble here is that buying in bulk is only actually a good deal if you’re using up all of the purchase before it spoils. Throwing out half a gallon of unused mayonnaise probably means you didn’t really save any money by purchasing the large size, despite a lower per-unit price.

To avoid this problem, make sure you’re only buying the bulk-sized items at Costco that your family actually uses. For perishables, these should be things you go through quickly and/or in large quantities. For non-perishable items, just be sure you’re happy with the quality and have the proper storage space.

2. Not making use of the excellent return policy

Costco has one of the best return policies in retail. Minus a few exceptions (major appliances, computers, etc.), you can return nearly any Costco purchase, more or less at any time — and for pretty much any reason.

What do I mean? Well, that package of cheese that turned prematurely moldy? Yep, Costco will take that back. The coffee maker you bought two years ago that suddenly stopped working? It’ll take that back, too.

My point is that there’s really no reason to lose money on something that simply isn’t working out. If you bought it at Costco and aren’t satisfied, return it!

A caveat for the return policy

Although Costco’s return policy is quite generous, that generosity has its limits. Excessive returns or otherwise appearing to abuse the return policy can get you in some trouble. Costco could suspend or even revoke your membership.

There isn’t a published limit on how often you can make returns, so you’ll need to use a bit of common sense.

3. Assuming Costco always has the best price

I have definitely found some great deals at Costco. And there’s no doubt in my mind that most folks could save a bundle switching from name brands to Kirkland Signature (often without sacrificing quality).

All that being said, Costco is never guaranteed to be the best price. And you should never be taking for granted that Costco’s price is the best without doing your own comparison shopping.

While it’s admittedly rare that I find big items more expensive at Costco, it does happen. Moreover, I can regularly find brand-name electronics and small appliances that are the same price at Costco as at other retailers — ones that don’t require a costly membership.

4. Using the wrong rewards credit card

As a rewards evangelist, this is something I feel like most people can improve on in general, but especially when you’re dropping three figures a trip. Costco doesn’t make it easy, though, since the retailer has some persnickety credit card policies.

In stores: You can only use Visa credit cards.Online: You can only use Visa or Mastercard credit cards.

Costco’s own credit card is a competitive option. Its gas rewards alone can be quite lucrative. However, it may not be the best way to maximize your rewards. A travel rewards card, for instance, may be a better bet. Some of these cards can earn more than $0.02 per point when the rewards are transferred and redeemed for free travel.

Consider your needs — and other spending habits — and choose a card that maximizes your rewards at Costco, as well as on other regular expenses.

Shop smarter, not harder

Costco’s endless aisles of goodies can harbor a ton of great deals. But, as with many things, the deal is in the eye (or wallet?) of the proverbial beholder. Avoid buying things you won’t use, keeping things you can’t use, and using the wrong credit card. And always, always, always compare prices!

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends Maker and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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There are a lot of factors pushing car insurance higher. Read on to find out what you can do to make your own premiums cheaper. [[{“value”:”

You may have noticed recently that your car insurance premiums have increased, just like the price of nearly everything else over the past few years. According to Bureau of Labor Statistics data, car insurance prices have soared 20% on average over the past year, much faster than inflation.

Here are seven factors that can cause your car insurance premiums to rise and a few ways to help bring the costs down.

1. Your driving record isn’t great

Your driving record is a major factor in how much you pay for car insurance. If you have a lot of speeding tickets, frequent accidents, or other violations, your car insurance will likely be expensive.

Most of the time, violations will be erased from your record after a few years. But until they come off, you may want to take a defensive driving course. Completing this class can keep a ticket from going on your record and may lower your insurance by up to 10%.

2. You own an EV

Electric vehicles are usually more expensive to insure because they’re more complicated to fix, require expensive parts, and have fewer mechanics trained to fix them. Contact your insurance company if you’re considering buying an EV to determine which models are the most expensive to insure.

For example, the average EV costs 25% more to insure than a comparable gas-powered vehicle, but Tesla models can cost up to 48% more to insure.

3. You own an expensive car

Expensive cars are generally more costly to insure. Car insurance companies decide how much it will cost to fully replace a vehicle if it’s totaled, as well as how much it will cost to repair after an accident. While not all expensive cars cost more to insure than cheaper ones, most do.

4. You’re a young driver

Progressive says age is one of the most important factors in how much you pay for car insurance. Younger drivers are more likely to take risks and are involved in more accidents, which drives up insurance claims.

While you can’t change your age, Progressive says that costs typically decrease substantially between ages 19 and 34 and then stabilize or even come down slightly between 34 and 74. But if you continue driving at 74 and beyond, your rates may go back up.

5. You live in one of these states

Car insurance rates aren’t the same in every state. Frequent accidents, major weather events, and state laws can all influence the cost of auto insurance in different states. The most expensive states for car insurance are Michigan, Louisiana, Florida, New York, and New Jersey. Michigan is the priciest, with an average annual premium of $4,894.

6. Your credit score is low

Most insurance companies will use your credit score as one of many factors for determining your insurance premiums. One reason for this is that drivers with lower credit scores tend to file more car insurance claims.

To increase your score, focus first on paying down your debt. How much debt you owe, relative to how much credit is available to you, accounts for 30% of your credit score. Additionally, make sure to make all of your payments on time. Payments 30 days past due can severely affect your credit score.

7. You haven’t bundled your home and auto insurance

Like so many insurance ads suggest, bundling your home (or renters) and auto insurance gives you a discount on your rates. The percentage you save depends on how expensive your policies are and what they cover. With some companies, you can save up to 7% on your insurance by bundling. Considering you don’t have to do much more than contact your insurance company to get a bundled discount, that’s a decent percentage of savings.

A few extra tips for lowering your car insurance

You may want to contact your insurance agent about any discounts you currently don’t have. For example, if you work from home and don’t drive your car very often, there may be a low-mileage discount you might qualify for.

Similarly, you may want to try telematics car insurance that gives you a discount based on how well you drive. Many insurance companies offer this through an app that tracks how you drive — including your driving speed, acceleration, and braking — and may adjust your rates based on the data. You may save money with telematics insurance if you’re a good driver. But if your driving isn’t great, your insurance premiums might actually go up.

Lastly, shop around for car insurance quotes. About 60% of consumers find cheaper insurance rates when they get quotes from different companies. It’s easy to do, and if nothing else, you may find out that you’re already getting the best deal.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Can’t decide what to get at Costco this week? Here are five super affordable finds you don’t want to miss out on. [[{“value”:”

Most people shop at Costco for the great deals on Kirkland Signature and bulk items. But while Costco can save you money on groceries and household items, not everything you buy will be the best value. If you’re trying to cut your grocery bill — and, let’s be honest, who isn’t — here are five affordable finds at Costco that aren’t toilet paper.

1. Trash bags

Price: $19.99

There’s nothing worse than taking your trash out only to find you have no bag to replace it. Fortunately, Costco sells trash bags in packs of 200 and at a cheaper per-unit price than other retailers — $0.10 a bag. For comparison, Amazon sells the same size bag for roughly $0.18 per bag ($8.99 for a pack of 50). By saving $.08 per bag, you’ll save a total $16 by buying them in bulk at Costco. Yeah — talk about some relief for your credit card.

2. Diapers

Price: $34.99

Similar to trash bags, this is one thing I hate running out of. Newborns can easily go through 10 diapers a day. Trust me — you don’t want to be panic-buying and spending an extra $2.99 for express shipping on Amazon because you’ve run out of diapers at 3 a.m.

A 192-count box of Kirkland Signature Diapers Sizes 1 – 2 costs $34.99, which comes out to $0.18 per diaper. For comparison, Amazon’s Mama Bear size 1 diapers are $0.25 per diaper. And if you choose a name brand — like Huggies — you could end up spending even more.

One small note: While these diapers are a great deal, keep in mind that children grow quickly and could leave you with extra diapers that no longer fit. So avoid stocking up if your child is on the cusp of moving into a new size.

3. Croissants

Price: $7.01

I need breakfast to be fast, easy, and cheap, but don’t want to skimp on taste or quality. Costco’s croissants fit the bill. Since they come in a 12-pack, I pop a few in a gallon-size bag and store them in the freezer to keep them fresh longer. And at $0.58 per pastry, these are a win-win for my grocery budget.

4. Sparkling water

Price: $12.86

I’ll be honest, I go through more cans of sparkling water than I’d like to admit. Buying them in bulk, then, helps me save on what’s probably not the greatest habit for my budget. A 35-count case of Kirkland sparkling water is $12.86, which is just $0.37 per can. Even name brands, like La Croix, are cheaper at Costco. For instance, you can buy a 24-pack of La Croix at Costco for $10.52, while Amazon sells a 24-pack for $36.98.

5. Almond butter

Price: $7.99

This is another daily essential for me — I use it for smoothies, spread it on my toast, and as a dip for apple slices. But it can be pricey. For example, a 16-ounce jar from Amazon Fresh is $11.68 or about $0.69 per ounce. Costco, on the other hand, sells a 27-ounce jar for just $7.99. That’s 11 more ounces for $3 less.

Knowing what things to buy at Costco can save you a lot (a CNET price comparison, for instance, found that buying the right products could reduce your yearly grocery bill by over $1,000). Next time you’re at Costco, take a look at some of the items mentioned above and see if they can help you improve your personal finances.

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!

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

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