Money Management

Don’t overlook cheaper retailers if you’re sick of high grocery prices. It may be time to switch retailers. Discover why more people are shopping at Aldi. 

Even if you go to the grocery store with a list and a plan, your grocery bill could be more expensive than anticipated due to higher grocery prices. For many households, money is tight due to increasing living costs, so every extra dollar spent adds up.

Find out why some shoppers are getting more of their groceries at Aldi. You may want to consider doing the same.

Shoppers are spending less money at Aldi

You likely have several grocery store options in your community. Being picky about where you shop could be a wise financial move. Not all grocery stores price their products the same way, and you can keep more money in the bank by shopping at a less costly retailer.

Aldi is one grocery store known for its affordable prices. The retailer has over 2,300 locations throughout the United States. It may be worthwhile to see if there is a location near your home. Many shoppers are doing more shopping at Aldi to waste less money.

It’s worth noting that prices vary by location, and Aldi doesn’t always have the lowest prices. But many products are priced more cheaply than similar offerings at other grocery chains. If you’re working hard to follow a budget in 2024, shopping at Aldi may allow you to be more successful.

A significant number of Aldi products are private-label brands exclusive to the retailer. But if you already buy generic products at your local grocery store, you may want to try some of Aldi’s products. If most prices are cheaper than you’re paying elsewhere, switching retailers could allow you to keep more money in your bank account.

Review the weekly flier before you shop

Aldi publishes a weekly sales flier to help shoppers plan their grocery hauls. That means you can review sale prices before stepping in the door. For many shoppers, buying on-sale items and planning their weekly meals around sales can be a win for their wallets.

While this takes extra effort, the time spent can pay off big time. You can review the weekly sales flier and research product pricing using Aldi’s mobile app.

Other tips to save money on groceries

Are you looking for other strategies to reduce your spending? Here are a few tips that may make it easier for you to honor your grocery budget.

1. Don’t ignore pantry items

It’s a good idea to take inventory of your pantry to avoid wasting food. Many shoppers buy canned food, boxed pasta, and other jarred items. But they forget to use them before they go bad, resulting in wasted money.

By taking inventory of your pantry every month, you can ensure nothing goes to waste and plan your meals around what you already have. Doing this can also help you save money on your upcoming grocery trip because you’ll need to buy fewer essentials.

2. Freeze what you can

Your freezer can also help you keep more money in your pocket. Purchasing freezer-safe food items when on sale and freezing them to use later could help you stretch your money further. For example, many retailers sell larger quantities of meat at lower prices. You can buy these discounted packages and separate them into smaller portions for freezing.

You can also buy other freezable essentials like vegetables, fruit, and bread when they’re on sale. Another option is to cook larger quantities of food and freeze the leftovers to have ready-made dishes for the future. Doing this can save you time and money.

3. Use a credit card to earn rewards

While you won’t get a direct discount on your groceries with this strategy, using a rewards credit card can be beneficial. You can earn rewards when you spend money with your card. Before paying for your groceries, consider which payment method will yield the most rewards.

Once you accumulate enough credit card rewards, you can use them to make future grocery trips cheaper. Learn more by browsing our list of the best cash back credit cards. For other ways to save money, review these personal finance resources.

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Do you want to be more successful as a freelancer or gig worker in 2024? Check out one move that could help you boost your income and protect your finances. 

Many workers hope to take on a side hustle or shift their career toward gig work in 2024. Being a freelancer or small business owner is ideal for many people because it can offer more flexibility and more income potential.

If you’re considering getting into gig work this year or want to expand your freelance business in 2024, one strategy could help you be more successful.

Don’t rely on one income source

As you explore the gig economy, you may feel tempted to stick with one opportunity or gig. Doing this may make you feel more comfortable because you’re already familiar with the work and know what to expect. But there is some financial risk to this strategy.

Without notice, a good work situation can quickly change. There may come a time when fewer opportunities for work are available, meaning you can only make a fraction of the money you once made. Having less money coming in can cause significant stress when you have bills to pay. That’s why you don’t want to rely on only one source of income.

Learn from my experience of losing an anchor client

There have been highs and lows throughout my seven years as a freelance writer. I’m happy to report that I’ve experienced more good than bad, but I’ve had my fair share of struggles. Many freelance writers aim to land an anchor client. These long-term clients provide steady work — so they offer more financial stability.

But once you land an anchor client, you shouldn’t stop looking for more work. You may have plenty of work and make good money now, but that can change overnight. In 2019, I was doing well as a freelance travel writer. I spent most of my time writing for an agency that managed two travel websites, and this work made up a significant portion of my income.

It was a dream gig — my managing editor was friendly and a great communicator, I received weekly pay, and could write about topics of personal interest to me. I continued to take on small projects elsewhere but devoted much of my time to this anchor client.

In October of that year, only a couple of months after my husband and I bought our first home and right after finding out that our furnace needed to be replaced, I was told that within two weeks, no more work would be available, as the client had decided to shift gears and shut down both websites.

As you might imagine, this was shocking and upsetting news for my husband and me. I had been saving all year, but much of the money in my savings account had gone toward our home down payment and closing costs. Plus, we needed to replace our furnace before winter.

2020 was a challenging year for many reasons. Losing that anchor client and additional travel writing work due to the pandemic topped my stressors. While it all worked out, it was a tough few months while I worked to rebuild my client base.

Diversify your income

That challenging chapter of my life taught me to never rely on one anchor client. I now have several anchor clients because I know that even the best gig can disappear overnight. If you’re a gig worker or small business owner, you can benefit by diversifying your income streams. With this strategy, you can still earn money if one income source becomes less reliable.

It’s also a good idea to build a solid emergency fund and continue saving, especially when work is plentiful. I continue to contribute money to my emergency fund every month because I want to avoid a situation where the loss of a writing client means I can’t afford my bills.

No matter what kind of gig work you do, consider how your everyday actions will impact your business bank account. It’s best to make strategic moves that allow you to protect yourself financially. For additional tips, check out these personal finance resources.

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The 2021 boost to the Child Tax Credit was a lifeline for recipients. Is it back on the table? Read on to find out. 

In 2021, when the U.S. economy was hurting in the wake of the pandemic, lawmakers provided relief with a boosted Child Tax Credit. Not only did the credit’s maximum value increase, but the credit itself became fully refundable, which meant parents could receive its full value even if they had no tax liability. Also, the credit was paid in monthly installments so recipients didn’t have to wait to file a tax return to see that money hit their bank accounts.

The enhanced version of the tax credit expired at the end of 2021. This doesn’t mean the Child Tax Credit disappeared in 2022. Rather, it simply reverted to its original value of $2,000 (in 2021, it was worth up to $3,600 per child).

Also, the credit stopped being fully refundable. As of 2023, the refundable value of the credit was limited to $1,600 per child.

But recently, bipartisan lawmakers introduced the Tax Relief for American Families and Workers Act of 2024. And an enhanced Child Tax Credit is a big component of it.

Could the Child Tax Credit improve?

Lawmakers are not necessarily looking to increase the value of the Child Tax Credit. But they’re looking to make it more refundable so more families can collect that money.

As of 2023, the maximum refundable portion of the credit is limited to $1,600 per child for 2023. The new proposal seeks to increase the maximum refundable amount as follows:

$1,800 for tax year 2023$1,900 in tax year 2024$2,000 in tax year 2025

The first line item would clearly have to be retroactive. If the rule is implemented before tax filers start submitting their 2023 taxes, it could change the extent to which many are eligible for refunds this year.

The new law would also expand refundability for families with multiple children. Currently, the maximum refundable portion of the Child Tax Credit is calculated by taking a taxpayer’s earned income over $2,500 and multiplying it by 15%. The new law would then have that taxpayer multiplying that amount per child.

How likely is this to pass?

Lawmakers have been fighting for a better Child Tax Credit for years. What makes this proposal feasible is that it has bipartisan support, which is always a positive thing. And unlike other proposals, it’s not looking to boost the maximum value of the credit. Rather, this proposal focuses on refundability.

Granted, that’s still going to cost the government money. But it may be a more palatable suggestion in the eyes of lawmakers who have previously balked at increasing the credit’s maximum value.

All told, many families are struggling these days due to factors that include high borrowing costs and lingering inflation. Getting more money out of the Child Tax Credit could be a lifeline for those whose savings are depleted and finances need a lift. We’ll have to wait and see what happens.

For now, if you’re a parent who’s struggling, there may be different benefits available to you. It pays to see if you qualify for food benefits through programs like SNAP, or if your children are eligible for reduced or free lunch and breakfast through your local school district. If you call your superintendent’s office, you should be able to connect with someone who can tell you how to apply for free or reduced school meals.

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I don’t have a crystal ball. But keep reading for three housing market what-ifs that I believe are rather likely to happen. 

There’s no way to predict mortgage rates or housing market trends with complete accuracy, and the experts get it wrong often. After all, many experts thought the COVID-19 pandemic would be a negative catalyst for home prices, and almost nobody would have thought at the beginning of 2022 (when mortgage rates were around 3%) that they would more than double by the end of the year.

With that in mind, we can use some of the information that’s available to make projections, so that’s what I’m going to do here. These are meant to be bold predictions, but I think they have a higher chance of happening than experts seem to believe.

Prediction 1: Mortgage rates will fall by more than the experts think

As I wrote in an article toward the end of 2023, most experts are predicting that mortgage rates will fall in 2024. Realtor.com predicted that the average 30-year mortgage rate would be 6.5% at the end of the year, while the National Association of Realtors (NAR) is predicting a decline to 6.3%. And Wells Fargo’s Economics Group is one of the more optimistic forecasters, anticipating rates to fall to 6.05% before 2025 begins.

However, keep in mind that most of these projections were made in the latter months of 2023, when mortgage rates reached multi-decade highs over 8%. Since peaking in October, mortgage rates have dropped sharply, sitting at 6.75% as of mid-January.

I think mortgage rates could fall significantly further from here, especially if the Federal Reserve starts lowering benchmark interest rates. Plus, consider that the spread between the 30-year mortgage rate and 10-year Treasury yield has averaged about 1.75% historically, but is currently more than a percentage point higher. If this were to normalize, we’d have mortgage rates of about 5.75% today.

To be sure, I don’t think 3% and 4% mortgage rates are coming back anytime soon. However, my bold prediction is that we’ll see mortgage lenders offering rates of 5.5% (or less) by the end of 2024.

Prediction 2: Millions of homeowners will benefit from refinancing

Mortgage refinancing volume has plunged to roughly one-tenth of the level we saw in late 2020 when rates were in the 3% range. After all, not many homeowners have been able to benefit from refinancing, with rates over 6.5% for much of 2023.

However, keep in mind that there has been well over $1 trillion in purchase mortgage volume over the past year, and this was with average 30-year mortgage rates as high as 8%. If rates fall more sharply than expected in 2024, it could lead to a wave of recent home buyers refinancing their loans to reduce their monthly mortgage payments. So, my bold prediction is that refinancing volume by the end of 2024 will be double what it was at the end of 2023.

Prediction 3: Home prices will rise again

Most experts are predicting that home prices will hold roughly steady in 2024 after a modest 3% increase in 2023. Zillow’s latest forecast calls for home values to fall by 0.2% this year, while Redfin’s economists see a 1% year-over-year decline in the second and third quarters, but home values finishing the year right where they were at the end of 2023.

I see things playing out a little differently, and specifically because I foresee mortgage rates falling more than expected. The vast majority of home buyers use a mortgage, so it isn’t as much about the price they pay for the home as it is about their monthly housing expense. Falling mortgage rates mean that homeowners’ monthly budget can bear the payments on a larger loan, and I think this will cause home values to unexpectedly rise by a mid-single-digit percentage in 2024.

No way to know for sure

To reiterate, I don’t know what will happen with mortgage rates, home-buying activity, or real estate prices in 2024. Anyone who tells you they know these things for sure is lying to you.

Having said that, with the sharper-than-expected plunge in mortgage rates we’ve already seen in recent months, there’s a solid case to be made that 2024 could see mortgage rates rapidly cool off, leading to a spike in home-buying activity due to pent-up demand from buyers who stayed on the sidelines due to 7%-and-higher mortgage rates. We’ll have to wait and see, and I look forward to revisiting these bold predictions at the end of the 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.Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has positions in Wells Fargo and Zillow Group. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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SNAP eligibility changes will impact around 750,000 people this year. Find out what other food benefit changes to watch out for in 2024. 

If you rely on SNAP food benefits to keep food on the table for your household, the most pressing question on your mind is probably how much you will receive this year. You might also be concerned about how the government’s budget negotiations could impact you.

The good news is that SNAP funding is mandatory — lawmakers in Congress can’t just take it away. However, the negotiations have already impacted SNAP eligibility for some people. Moreover, if the government shuts down because the politicians can’t reach an agreement on spending, it could mean delays to your payments.

Read on to find out about SNAP benefit changes to watch out for in 2024.

1. SNAP benefit amount

SNAP benefits get adjusted each fiscal year to account for changes in living costs. The fiscal year starts in October, so you will already be receiving the increased benefit amount for 2024. Watch out for an announcement in August from the USDA setting out how much benefits might increase for 2025. The new amount will come into effect on Oct. 1, 2024.

For the 2024 fiscal year, these are the maximum benefits in most states:

What it means for you

If you were hoping to receive extra money in 2024, you will have to wait until October to see any changes in your benefits. Look for ways to stretch your SNAP payments a little further, such as maximizing coupons and cash back apps to get extra discounts. It’s also worth seeing if your state has a Double Up Food Bucks program, as these can get you two-for-one on fresh produce at participating stores.

If you have school-age kids, you might be able to get some extra assistance during the summer holidays. The USDA recently announced that 21 million children will benefit from its new, permanent Summer EBT program. Families in the 35 states that will participate can receive up to $40 per child to help them buy groceries while school’s out.

2. SNAP eligibility requirements

Eligibility for SNAP largely depends on the assets you hold in your bank account, your income, and your work situation. Unless one of your household members is disabled or over 60, the maximum amount you can hold in your account is $2,750. This is unchanged from last year.

In terms of income, SNAP assessors will look at your gross monthly income (the amount you receive before taxes are taken out) and your net income (what you actually take home.) Both are calculated based on the U.S. poverty line. For the 2024 fiscal year, here are the maximum amounts households can earn each month and still be eligible.

The biggest change to SNAP eligibility in 2024 is the age threshold for work requirements. In addition to the standard work requirements, there’s something called an Able Bodied Adult Without Dependents (ABAWD) Work requirement. Essentially, if you’re an able-bodied adult with no dependents and you aren’t working or volunteering 80 hours a month, you can only claim three months of SNAP benefits in a three-year period.

The ABAWD working requirements used to only apply to people between the ages of 18 and 50.

Last year’s Fiscal Responsibility Act increased the upper age limit to 52 in October 2023, and 54 in 2024. Many states waived work requirements during the pandemic, but the new legislation has also made that harder to do.

What it means for you

The CBPP estimates around 750,000 older adults will be impacted by the new age requirements. If you’re one of them, try not to let the red tape stop you from getting your food benefits. One study showed that work requirements can impact SNAP participation, even though they’re not effective in getting people to work more.

Try to understand what counts as work and what types of unpaid work might make up your hours. There may be a lot of red tape involved, especially as the policy is confusing and poorly implemented. Persevere — if you are a one- or two-person household, the maximum benefit you could be receiving is $535. That could make a big difference to your bottom line.

Go to benefits.gov to see if you qualify for any other benefits. The requirements differ on other programs, so you might be able to get health or even utility bill assistance. Talk to hunger NGOs or call United Way at 2-1-1 to see what food pantries or soup kitchens are in operation near you.

3. Expect more delivery services to accept SNAP payments

Grocery delivery services can give people access to lower-cost stores, bulk purchases, and special offers. Earlier this year, Uber Eats said it would start accepting SNAP payments in 2024. It joins Instacart, Amazon, and Walmart, which already accept EBT payments. This is a trend that is almost certain to grow in 2024.

What it means for you

Delivery services can offer convenience and value, and it’s great that SNAP participants can access them. However, make sure you understand the fees involved and compare prices to see if you’re getting the best deal. For example, I recently compared Instacart prices of a few items at Target against buying them directly from the website. The Instacart shop was almost 20% more expensive.

Key takeaway

October, the start of a new fiscal year, is when SNAP benefits change according to the cost of living. As such, SNAP participants will already be receiving the increased 2024 amount. Coupons, cash back apps, and Double Up deals can all help stretch your SNAP dollars a little further. If you don’t have enough money to buy food, see if local food pantries or soup kitchens could help.

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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. Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Target, Uber Technologies, and Walmart. The Motley Fool has a disclosure policy.

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