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Money Management

I Used HelloFresh For 5 Months. Here’s What I Learned

By Money Management No Comments

Is HelloFresh, the popular meal-kit delivery service, really worth it? Find out what happens when you use it for five months. [[{“value”:”

Image source: Getty Images

A little over five months ago, my wife and I had our first baby, and, like most new parents, we had no idea what we were in for.

I imagine most people know this as a fact, indeed, we were also aware of it as a phenomenon, that babies cry a lot. They cry when they’re hungry, they cry when they’re gassy, they cry when they’re alone or around too many people. They cry when they want to be held or rocked or swaddled or shushed — and sometimes they cry even when all of the above are checked, to stretch the lungs, as the doctor said, to cry just to cry.

With all that crying, we had no time to grocery shop, prepare meals in advance, or even plan out our dinners. The take-out containers and paper bags were piling above our garbage lid, and our monthly food budget was wagging its finger as it surpassed quadruple digits. We had to find a cheap way to prepare meals fast.

So we tried HelloFresh.

In a nutshell, HelloFresh is a German meal-kit provider. The company delivers ingredients and recipes to its customers, who then prepare the meals. Although we were skeptical at first, the meals are actually easy to make, the ingredients are fresh, and the recipes are varied enough to overlap only once or twice in a quarter.

We’ve been using HelloFresh for five months, and our experiences have been mostly positive. It’s been a wonder for our personal finances, and we’ve learned a few things along the way — like the following.

1. You won’t get 18 free meals all at once

HelloFresh often gives new customers 18 free meals with an active subscription. While that technically translates to three weeks of free dinner (assuming you get six meals per week), HelloFresh doesn’t calculate it that way. Instead, HelloFresh will give you 18 free meals over nine weeks.

For us, that meant getting a huge discount on our first box ($62.74), followed by a smaller discount on our second box ($17.79), followed by several smaller discounts until the nine weeks were up. We were still saving money, but the savings were spread out to keep us subscribed. It’s not a big deal if you plan to use HelloFresh for the long term, but if you’re looking for a few weeks of free dinner, you might be disappointed.

2. The boxes can smell like garbage

I don’t know what it is about HelloFresh boxes, but they give off a really unpleasant odor. Maybe it’s because they’re made of recycled cardboard, but if you don’t discard the box immediately, your house might smell putrid like garbage. Not every box smells like it’s cutting the cheese in your kitchen, but to be sure, I’d throw the boxes away as soon as you take the food out just to avoid that smell.

3. You get reimbursed for missing ingredients

It doesn’t happen often, but if you’re missing ingredients for your meals, rest assured HelloFresh will reimburse you via its app. And they don’t skimp on the payment, either: I’ve gotten $6.99 for a small packet of shawarma spice and $28.80 for an onion, cilantro, and potatoes.

That said, these reimbursements aren’t credited back to your debit or credit card. Instead, you get credits in your HelloFresh wallet, which you can apply to your next weekly delivery. Still, it’s good to know HelloFresh will take credit for its own mishaps, without making you wait for reimbursement or call a customer hotline.

4. Your box can show up late (or go missing)

Since using HelloFresh, we’ve had two late deliveries. One was over Christmas (acceptable) and the other was during an ice storm (also acceptable). This latter box was delivered only a day late, while the one meant to arrive on Christmas Eve went missing — then arrived, packaged in another box, about 10 days later.

HelloFresh reimbursed us (the food was spoiled, hence the second box). But since we were expecting that box, we hadn’t bought enough groceries for the weeks’ dinners. In the end, we resorted to our old habit — takeout — which cost us much more than the reimbursed box.

5. It could save you a lot (or nothing at all)

We spend about $125 a week for six meals and two servings per meal. This also includes a free breakfast item and whatever freebies HelloFresh throws our way (desserts, premium meals, seltzers, etc).

Since we live in a city, where grocery inflation has been unflinchingly ruthless, we’re saving about $40 to $60 weekly on groceries. To be sure, we still buy food at Trader Joe’s and Costco. After all, we don’t buy breakfast and lunch from Hello Fresh. But we’re making fewer trips, and we’re buying fewer perishable goods (like vegetables).

For our family size, then, HelloFresh translates into savings. But not everyone will save money.

If you’re already paying $100 to $125 weekly to cover all your meals, HelloFresh could end up costing you more. Of course, you might be willing to pay a premium to have your meals picked and portioned out for you. But if you’re looking to save money, it pays to do the math beforehand.

All in all, we’re happy with HelloFresh and plan to keep using it. Even though our baby is smiling and giggling now more than crying, we like the convenience and savings. Give it a try — you never know how much money (and time!) it could save you.

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5 Tips for Making a Dent in Your Debts in 2024

By Money Management No Comments

Unlock financial freedom in 2024 with these five essential debt-reduction tips. See how to take action now and start paving your path to a debt-free life. [[{“value”:”

Image source: Getty Images

Ah, a new year! It’s that time again when we’re all buzzing with resolutions, and for many of us, improving our personal finances is at the top of the list. This is especially true for tackling one of the most common challenges we face: managing our debts. Let’s face it, debt can sometimes feel like a never-ending spiral, but it doesn’t have to be that way. With a little bit of strategy and a lot of determination, reducing debt is not just a dream — it’s a goal we can achieve.

Think of debt as a puzzle that needs solving, not a shadow that follows you around. It’s all about having the right approach and tools. And the good news? This year could be the year you turn things around and get a firm grip on your finances. Let’s dive into five actionable and practical tips to help you chip away at that daunting debt mountain and start your journey toward financial freedom in 2024.

1. Revise your budget

Revising your budget is an essential step in tackling debt. Richard Barrington, an analyst for Credit Sesame, emphasizes the importance of aligning your spending with your income. This involves identifying and cutting unnecessary expenses to prioritize debt repayments.

When reworking your 2024 budget, ensure that debt repayments are treated as non-negotiable expenses. This disciplined approach to budgeting helps prevent the accumulation of new debt while steadily reducing existing debts. Sacrifices made today for debt repayment can lead to significant financial freedom in the future.

2. Discover hidden passive income sources

Veetahl Eilat-Raichel, the founder and CEO of Sorbet, points out a commonly overlooked opportunity: uncovering passive income sources. She suggests that many individuals are unaware of potential income streams available through their employee benefits package. Delving deep into the specifics of your FSA, HSA, 401(k), and PTO policy can reveal “untapped perks.”

For instance, some companies offer unique benefits such as subsidies for public transportation using pre-tax dollars. Additionally, understanding the monetary value of unused paid vacation days can be enlightening. If your salary includes unused vacation days, converting these into a cash equivalent can provide extra funds to alleviate debts. Veetahl encourages seeing your total compensation package through “money-colored glasses,” urging a reevaluation of traditional views on benefits and compensation.

3. Use the snowball or avalanche method

When faced with multiple debts, how you tackle them can significantly affect your overall interest payments and debt clearance speed. Richard Barrington recommends organizing debts by interest rate, first paying off those with the highest rates. This strategy, known as the avalanche method, minimizes the total interest paid.

Alternatively, the snowball method, where you pay off smaller debts first for psychological wins, can also be effective. Choosing between these methods depends on your personal financial situation and motivational needs, but both approaches can accelerate the journey toward being debt-free.

4. Consolidate debt to lower your interest rate

Debt consolidation is a strategy that can simplify debt management and potentially reduce the interest you pay. Barrington explains that transferring balances from high-interest debts to lower-interest options, such as personal loans or balance transfer credit cards, can provide financial relief. This approach consolidates various debts into a single payment, often with a lower interest rate, making it easier to manage and pay down your debts more quickly.

5. Negotiate your debts

In situations where full repayment is challenging, negotiating with creditors for a settlement can be a viable option. This approach involves agreeing with the creditor to pay a reduced amount, considered as full debt repayment. While this can negatively impact your credit score, it can also provide a more achievable path to clearing your debts, especially in cases of financial hardship. However, it’s important to approach this strategy cautiously and possibly seek advice from a financial advisor.

Reducing debt is not just about crunching numbers but changing how you think about money. Sure, it’ll take some effort, but imagine the freedom you’ll feel when you’re debt-free. Here’s to making that happen this year!

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Avalanche. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Starbucks and Bank of America Introduce New Rewards Program. Could It Benefit You?

By Money Management No Comments

Love Starbucks? Read on to see how you might soon be in line for even better rewards on your purchases. [[{“value”:”

Image source: Getty Images

For many people, a visit to Starbucks is a regular occurrence, despite the hefty credit card tab that might ensue. And while it could be argued that buying coffee regularly is a waste of money, the reality is that we all need a little luxury in our lives sometimes.

If you know how to work the system, you can also save money on Starbucks purchases by racking up points through the company’s popular rewards program. But now, Starbucks is teaming up with Bank of America to sweeten the deal even more for cardholders.

A whole new world of benefits for Starbucks customers

Starbucks customers who pay for their food and drink purchases with a Bank of America credit or debit card are now eligible for added rewards. Members of the Starbucks Rewards program will get 2% cash back on their purchases with their Bank of America credit or debit card, plus 1 extra star per $2 spent on orders placed through the app. Normally, Starbucks Rewards members get 1 or 2 stars per $1 spent.

Those extra perks won’t happen automatically, though. You’ll need to activate the offer.

Be careful not to overspend

If you’re a Bank of America cardholder and Starbucks fan, this change to the chain’s rewards program may prompt you to indulge in your favorite baked goods and beverages even more. But do be careful not to go overboard on spending.

The idea of racking up more cash back on Starbucks purchases is tempting. But if you’re charging a $10 Starbucks order every day and aren’t paying your credit card bills in full, then despite the extra cash back, you’re not going to come out ahead financially by taking advantage of this new program. You might instead end up in serious debt.

If money is tight, your best bet may be to steer clear of Starbucks altogether until you’re in a better place financially. That doesn’t mean you have to give up tasty coffee, though.

If you have a Keurig machine at home, a 96-count of Starbucks Medium Roast K-Cups will cost you just $45.31 on Amazon right now. That’s only $0.47 per cup, which is worlds less than what you’ll pay for a fresh cup at your local Starbucks — even when accounting for the cash back and rewards you might get.

What if you’re not a Bank of America cardholder?

Even if you don’t have a Bank of America credit or debit card, you still have options for saving big on Starbucks purchases, since the rewards program is available to all customers. Once you sign up, you’ll be eligible for various offers that help you earn stars you can eventually redeem for free products. And you’ll also be eligible for a free birthday treat. Since there’s no cost to join, it pays to become a Starbucks Rewards member even if you only visit the store on occasion.

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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.Bank of America is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America and Starbucks. The Motley Fool has a disclosure policy.

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The Single Best Strategy for CD Investing in Today’s Market

By Money Management No Comments

CD rates are still high, but what’s the best way to capture them? Read on to learn the best strategy for CDs here. [[{“value”:”

Image source: Getty Images

The best CDs are currently yielding at generous rates between 5% and 5.50%. With rates that high, you’re basically getting free money with little or no risk, plus a chance to freeze an APY before banks start reducing rates. You have a number of banks and credit unions to choose from, but, with CD rates likely going to change later this year, what’s the best strategy for investing in them? If you have a fair amount of spare change to invest, the answer is clear — a CD ladder.

Why CD ladders are the best strategy for today’s market

CD laddering is a strategy where you open numerous CDs with different maturity dates. Think of the “ladder” as extending forward in time, and the CDs as your rungs. You can have a 1-month rung, a 3-month rung, a 6-month rung, a 1-year rung, and onward for as long as you can afford.

Why would you stagger CDs like this? Well, one reason is that it ensures that you have cash available periodically. Most CDs have early withdrawal penalties, anywhere from a few months to a year or more of interest. So, instead of making a large deposit into one or two CD accounts, you can give yourself some flexibility by splitting your money among multiple CDs of different term lengths.

Combining short-term and long-term CDs in this way also helps you take full advantage of today’s best rates. Short-term CDs, which have higher APYs right now, let you earn more interest, while long-term CDs help you freeze those rates for longer periods.

This is important in today’s market because, by the looks of it, CD rates may not stay elevated for long. Everything hinges on the Federal Reserve’s monetary policy, which has hitherto been aggressively in favor of hiking its federal funds rate to extinguish inflation. The federal funds rate sets the pace for CD rates, so when one goes up (or down), the other isn’t far behind. The central bank hasn’t touched the federal funds rate since July 2023, but, if the economy continues improving, we should see rate cuts sometime this year.

Locking money into long-term CDs, then, is a great strategy for prolonging high CD rates. If you play your cards right, your CDs could be earning several times above the very best rates for several years to come. Likewise, short-term CDs can help you earn more interest now, but then give you the option to reinvest that money in other securities when they mature.

How to build a CD ladder for today’s market

To build an effective CD ladder for 2024, ask yourself the following questions:

How much can I invest in CDs? You’ll split your deposit into smaller chunks, but it’s important to decide how much you’re willing to lock away in a CD of any term length. Keep in mind that CDs with high yields often have minimum deposits, like $1,000. This could limit how many CDs you can afford to purchase.What maturity dates do I want? You have options. I’ve seen CDs that mature in seven days and others that mature in 20 years. Most bank CDs, however, will have terms between six months and five years.What’s my backup plan if I need cash fast? Always have a plan B. While CDs can give you some flexibility, you might still need cash before they mature. Combine your CDs with a high-yield savings account, money market account, or no-penalty CD for more liquidity.

All in all, CDs are a great investment for 2024 both for their high APYs and guaranteed rates of return. Investing in one CD is fine, but if you have the cash and time horizon, definitely consider laddering them — you can extend the best rates on long-term CDs, while also capturing the very best APYs on the market.

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Target’s New Brand Could Be a Lifeline for Budget-Conscious Consumers

By Money Management No Comments

Many consumers are feeling cash-strapped these days. Read on to see how Target is coming to the rescue. [[{“value”:”

Image source: Getty Images

Many Americans are struggling with their personal finances these days, and understandably so. Although inflation has cooled since peaking in 2022, living costs are still elevated. And a lot of people are having trouble making ends meet and covering basic necessities.

It’s with that in mind that Target is introducing its new Dealworthy product line. The line will feature a few hundred items across a variety of product categories, including everyday basics like toiletries and underwear. Most of the items that fall under the Dealworthy umbrella will be priced at under $10, with some items costing as little as less than $1.

If you’ve been having a hard time covering your basic living expenses, then you may want to keep an eye out for Target’s new product line. That said, you might already have access to budget-friendly products at existing retail stores and sites.

Budget-friendly options already abound

Target tends to have a pretty loyal fan base, but it’s not a discount retailer per se. The new Dealworthy product line is designed to draw in budget-conscious consumers who may be more inclined to seek out discount stores for their everyday shopping needs.

Once Target’s new line hits the shelves, it could be worth checking out to see how competitive the prices end up being. You may find that you can save a lot of money on the items you commonly bring home. But you should know that you might already have access to similar deals if you know where to look.

Retailers like Walmart and Amazon, for example, offer a host of low-cost items whose prices may be comparable to Target’s new line. And when it comes to low-cost toiletries and household essentials, your local dollar store may be a perfectly good source of affordable products. So rather than bank on Target’s new offerings, it could pay to explore the options that are currently available to you.

You don’t want to fall into the classic Target trap

There’s a running joke about going to Target to buy milk and eggs and emerging 60 minutes later with a $100 credit card tab at a minimum. The Target name has long been synonymous with impulse buys. And while that may not be such a terrible thing for someone who’s doing okay financially, it’s problematic for people who are currently living paycheck to paycheck with no money in their savings account whatsoever.

As such, pledge to proceed with caution if you’re not much of a Target shopper at present but intend to start visiting the store in short order to check out its new low-cost product line. Target has a way of tempting people to overspend, and you don’t want to end up in debt because of it.

If you decide to take advantage of Target’s new line of lower-priced items once they hit the shelves, make a shopping list each time you visit the store and stick to it. You may even want to estimate the cost of those items ahead of time and bring just enough cash with you to cover them (perhaps a little extra in case sales tax throws your calculations off). Shopping without a credit card is a really good way to avoid extra purchases — and the pile of debt that might ensue as a result.

Finally, don’t assume that Target’s new Dealworthy line will be your least expensive option. Once you see those products arrive, compare their cost to what competing big-box stores and dollar stores charge. You may find that while Dealworthy products are cheaper than comparable items within the confines of Target, they’re not the cheapest on a whole.

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

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The First Tax Returns Are In. Here’s the Average Refund So Far

By Money Management No Comments

Average tax refunds are lower so far than they were this time last year. Here’s what you need to know. [[{“value”:”

Image source: Getty Images

The tax deadline is still two months away, so don’t feel bad if you haven’t gotten around to filing your return just yet. You’re definitely in good company. But there are plenty of early birds out there too who have already filed their 2023 returns — more than 15 million as of Feb. 2.

So far, that’s led to over 2.6 million refunds issued. Here’s a closer look at how much the IRS has given out so far, and why you might not be excited about getting a big check in the mail.

The average tax refund is down $568 from 2023

In 2023, the average American who got a tax refund received $1,963 by about this point in the tax season. Those who had their refunds direct deposited received $2,056 on average. But so far, refunds aren’t quite that high in 2024.

As of Feb. 2, the average tax refund is just $1,395, and the average refund for direct depositors is $1,543. But don’t get discouraged.

The 2024 data is based on a shorter filing period than 2023’s. In 2023, the tax season began on Jan. 23, 2023, and the first report about tax refunds came in on Feb. 3, 2023, covering a 12-day span. This year, the filing season opened on Jan. 29, so the report only covers five days of data. The average refund amount may continue to rise as more people continue to file their taxes over the coming weeks.

Why you might not want a tax refund

Though most people are happy to get a large tax refund, it could actually be a sign that you’ve had too much withheld during the year. The government withholds money from your paychecks all year long to cover your taxes, and during tax season, it looks at your actual income and tax breaks to determine whether you’ve paid too much or not enough. Not enough results in a bill and too much results in a refund.

But that refund is essentially an interest-free loan you gave the government all year long. You could’ve had that money months sooner if you’d had the correct amount withheld from your paychecks throughout the year.

You can avoid this issue in future years by adjusting your tax withholding. To start, gather your W-2s, 1099s, and all other income forms for yourself and your spouse, if you’re married. Have the details of any investment income and your most recent tax return on hand too.

Then, use the IRS’s Tax Withholding Estimator tool to determine the best withholding amount for you. It’ll ask you a few basic questions about your tax filing status and income, then you’ll be able to see how changing your tax withholding would affect your take-home pay and your tax refund.

How to change your withholding and what to keep in mind

If you decide to change your tax withholding, you’ll need to fill out a new Form W-4 and submit it to your employer. Keep in mind that it may take a few weeks for this change to take effect. Ask your employer if you’re unsure how long this will be.

A few words of warning: First, if you have complicated taxes or you’re a nonresident alien, the above tool isn’t right for you. Consult a tax professional in your area who can provide you with more personalized advice on tax withholding.

Second, be careful not to reduce your tax withholding too much. This might benefit you in the short term with larger paychecks, but it could come back to bite you if you owe taxes at the end of the year. Again, if you have any questions, it’s best to consult with a tax professional who can give you advice that’s tailored to your unique situation.

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