Money Management

The cost of gas can really add up. Read on to see how a Walmart+ membership might come to your rescue. 

There are certain expenses in your budget that may be fixed, like your rent or mortgage payment. But it’s the variable expenses that are more likely to wreak havoc on your personal finances. These include things like groceries, entertainment, and gas.

Now there are several steps you can take to lower your credit card tab for gas. Planning your errands strategically could result in fewer miles on the road, and making a point not to speed could improve your vehicle’s fuel efficiency. But if your goal is to save money on gas, then it could pay to join Walmart+. Here’s why.

1. You can save money at thousands of fuel stations

One big perk of a Walmart+ membership is that you get access to discounted gas at over 14,000 locations nationwide. And we’re talking big savings — a cool $0.10 per gallon. If you fill up your 20-gallon tank once a week, that’s $104 in savings over the course of a year.

Now if you live in a very rural area with limited fuel stations, then your local options may not fall under Walmart’s umbrella. But if you live in a pretty central location, then chances are, you’ll have access to a gas station that’s eligible for this discount.

2. You can drive to the supermarket less often

Even if you’re someone who does a good job of planning meals in advance and stocking their fridge and pantry, you can only space out your grocery trips so much. Certain items are perishable in nature. So while you may want to only go to the supermarket twice a month, if you have kids who drink milk, you may not be able to find a decent supply with a 14-day freshness window.

The good thing about Walmart+ is that your membership comes with free grocery delivery on orders of $35 or more. That’s not a very high threshold. In fact, a week’s worth of produce, dairy products, and meat alone might cost more than that, which means that snagging free delivery on fresh food shouldn’t be difficult at all.

3. You won’t have to drive to Walmart every time you need to make a purchase

You may be someone who tends to run to Walmart pretty often. And while you could just order items from Walmart online, if you’re looking at a $6 purchase here or an $8 item there, you’re going to be charged for shipping. That’s a fee you may not want to pay, and understandably so.

The nice thing about Walmart+ is that you get free shipping on online purchases of any amount. There’s no need to meet a minimum. Access to free shipping could result in fewer trips to the store — and less gas spending in the course of a year.

If you’re tired of spending a fortune on gas, then it could pay to sign up for Walmart+ and see how much savings it results in. That said, you don’t have to commit to the $98 annual fee right away. Walmart will give you a 30-day trial at no cost, so you can try out the program and see if it’s worth the money.

Even if you’re not 100% ready to commit to Walmart+ beyond those 30 days, there’s the option to sign up for the program on a monthly basis. The cost there will be $12.95, so if you’re ready to commit to a full year, paying the $98 as a one-time charge makes more sense. But if you’re on the fence, you could always pay $12.95 for a month or so, see how things go, and then sign up for an annual membership if you decide that Walmart+ is worth keeping.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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 Walmart. The Motley Fool has a disclosure policy.

 Read More 

If you’re buying an old house, old-fashioned knob and tube wiring doesn’t have to be a dealbreaker. Learn how to get homeowners insurance at low cost. 

My wife and I recently bought a 101-year-old house — and we love it! We love the character, the big windows, the hardwood floors, the funny little architectural details, and the interesting door knobs and fixtures. We love everything that makes this house feel like stepping into another era of history, that makes us feel connected to the unique heritage of our neighborhood, and to the lives of all the families that have gone before.

But there’s one thing about buying an old house that we don’t love: knob and tube wiring.

Like so many other aspects of homeownership, I had never heard of “knob and tube wiring” before it became a weird, expensive problem in my life. But if you buy an old house that was built between 1880 and 1940, your house might have knob and tube wiring. And this old style of wiring can cause you thousands of dollars’ worth of headaches.

Let’s look at a few reasons why knob and tube wiring is a problem for homeowners insurance, and how you can solve it.

What is knob and tube wiring?

Electrical wiring technology has come a long way since 1880-1940. But back in those days, many homes were electrified with a style of wiring called “knob and tube wiring,” that uses porcelain knobs and tubes. This kind of wiring is now considered obsolete, and depending on how it was installed or modified over the years, or what kind of condition the wiring’s insulation is in, it can be a safety hazard.

Knob and tube wiring can’t be installed anymore, and the modern form of electrical wiring (called “romex”) is safer and better. But if you buy an older house, you might find yourself stuck with a knob and tube wiring problem that can keep you from getting homeowners insurance.

Homeowners insurance: Problems with knob and tube wiring

Some homeowners insurance companies will not insure homes that have knob and tube wiring. Other companies will offer insurance coverage for homes with knob and tube wiring, but at a higher premium. Want to replace the knob and tube wiring? It could cost thousands of dollars. According to homeinspectorsecrets.com, the average cost to replace knob and tube wiring ranges from $3,500 to $9,000.

But this doesn’t mean that knob and tube wiring has to be a dealbreaker. After all, many older homes from the pre-World War II era still have this kind of wiring. Knob and tube wiring is not always hazardous and does not always have to be replaced. With careful planning and expert advice, you can navigate the hassles of knob and tube.

How to get homeowners insurance with knob and tube wiring

When we were house hunting, our real estate agent knew that we loved older homes, and he knew that our desired neighborhood had a lot of houses from the era of knob and tube wiring. He recommended some homeowners insurance companies in our state that offered coverage for knob and tube wiring, and we were able to get a policy.

Fortunately, the same insurance company that already insured our cars was also willing to insure our new (old) knob and tube wired house. The premium was affordable, especially because we got an insurance discount for bundling home and auto coverage.

There was just one more thing that our insurance company needed so we could buy the house: it required a professional electrician to inspect the knob and tube wiring. We contacted a local electrical contractor and paid a few hundred dollars for one of their licensed electricians to spend a few hours checking out the nooks and crannies of our old house’s wiring.

The electrician’s report came back, and it was good news! The knob and tube wiring was in excellent condition and was limited to a few areas of the house; most of the high-demand places in our house like appliances and air conditioning were on newer wiring that had been replaced by previous homeowners. He did not recommend any further replacement of the knob and tube wiring; we were good to go, our home’s wiring was safe, we didn’t have to spend thousands of dollars rewiring the whole house, and our homeowners insurance got approved.

Bottom line: If you buy an old house, you might run into problems with knob and tube wiring. Some homeowners insurance companies won’t offer insurance for homes with this kind of wiring. But you don’t have to spend thousands of dollars to rewire the house — your insurer may just require a specialized inspection by an electrician. Knob and tube wiring doesn’t have to be a dealbreaker for your dream home.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

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.

 Read More 

Now is the time of year when many Americans renew their efforts to get healthy. Here’s how much it costs, on average, to join a gym. 

There are a multitude of reasons to focus on your health. After all, the state of your health impacts everything from your outlook on life to how much you pay for life insurance.

If one of your resolutions for 2024 is to get healthy, you may be looking into area gyms. If so, you may also be wondering how much you can expect to pay for a gym membership. The answer to that question is “it depends.” According to data from GoodRx Health, a typical gym membership costs between $40 and $70 per month. However, the amount you pay will depend on factors such as where the gym is located and the amenities offered. Here, we break it down for you.

Factors that impact gym membership price

There are multiple factors that determine how much you’ll be charged for a gym membership.

Location

Major metropolitan areas tend to have a higher cost of living overall, and that can trickle down to the cost of joining a gym. If you live in (or near) a city with a high cost of living, you may want to look into gyms toward the outskirts of town. The reason is twofold: Rents near the heart of town are more expensive, and that expense gets passed on to gym members, and gyms surrounded by businesses mean more potential customers stopping by after work. The less desperate a gym is for customers, the more it can charge.

Amenities

You can count on gyms with expensive amenities, like Pilates reformers, swimming pools, saunas, pickleball courts, and fancy dressing rooms to charge more for those niceties. There’s no reason to pay for the amenities unless you plan to use them.

How you pay

Some gyms offer a discount to members who pay their entire annual membership fee upfront instead of making monthly payments. A gym may also offer a discount to those who set up autopay from their checking accounts.

How often you plan to work out

While this does not apply to all gyms, some offer a price break to those who only plan to work out a couple of times a week. This is particularly true when a gym is built around classes. For example, a gym that offers yoga, Pilates, or swim classes may require frequent class-goers to pay more than those who drop in less frequently. These are sometimes referred to as “tiered memberships.”

If you’re in school

Many gyms offer discounts to college students. If you can provide proof that you’re a student, there’s a chance that you won’t be stuck paying full price.

The company you work for

Most companies have figured out that the health of their employees directly impacts productivity, days missed, and insurance rates. Some of those companies will cover a portion of an employee’s gym membership cost in hopes of keeping employees healthy. Before signing up for a gym, find out if your employer offers this benefit.

Your insurance

While Medicare “Part A” and “Part B” generally will not pay for a gym membership unless you have a medical diagnosis requiring physical therapy, Medicare Advantage plans may. These plans, known as “Part C” or “MA,” sometimes offer health and wellness benefits like gym memberships. It all comes down to which plan you choose.

No matter what type of insurance you have, it can pay to read your handbook to learn if your plan covers fitness programs and/or gym memberships.

If now is not the right time to join a gym

If you shop around and find that a gym membership does not currently fit into your monthly budget, you have other options. Here are some ways to get moving without putting much of a dent in your personal finances:

Draft a friend (or friends) to walk or ride bikes with you. Come up with a schedule you can stick with.There are some great exercise videos available for free on YouTube. Take advantage of them.Download fitness apps. Choose the type of workout you’re interested in, and find an inexpensive app that works for you.Check with your local community center to learn about the types of fitness classes it offers.Look into a streaming service. As you would with a fitness app, choose the type of workout you would most enjoy and check how much it would cost to stream the instruction you’re looking for.

Remember, paying to join a gym only makes sense if you’re going to use it. If not, there are more alternatives today than ever before.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Want to save money for healthcare, reduce your taxes, and get tax-free income in retirement? Here’s how an HSA can help you achieve all three goals. 

If you have a high-deductible health insurance plan (HDHP), you could be eligible for a special way to save money for healthcare costs. It’s called a health savings account (HSA). This account offers a few big benefits to help you save money on taxes in 2024. The health savings account is sometimes referred to by financial experts as offering a “triple tax break,” because it gives you three ways to save money on taxes.

The flexibility and tax advantages of a health savings account make it a great choice for anyone who has the right kind of health insurance situation to qualify. If your employer offers HSA-eligible health insurance plans, you should consider signing up for one at your next open enrollment period. Or if you’re self-employed or a small business owner, an HSA might be the best way to pay for your healthcare costs while reducing your taxable income.

Let’s look at a few reasons why putting money into an HSA could be a smart tax planning move in 2024.

Health savings account (HSA): The triple tax break

Here’s why the HSA is often called a “triple tax break” — it lets you save money on taxes in three different ways:

Your contributions to the HSA give you a tax deduction (up to a certain limit), just like a 401(k) or traditional IRA.You can invest the money in an HSA and let it grow tax free.You can pull money out of the HSA tax free to pay for qualifying types of healthcare expenses, or take money out of the HSA for any purpose after you reach age 65 (but you’ll owe income tax on non-healthcare related withdrawals).

That third tax break is an extra special reason to open a health savings account. If you can go through life without spending all of your HSA money on healthcare, you can use your HSA as an additional tax-deductible retirement savings account. If you use your HSA to save for retirement, you get the benefits of a traditional IRA (tax-deductible contributions).

Why an HSA is better than an HRA

Many employers offer health savings accounts as well as health reimbursement arrangements (HRAs). Sometimes these two types of tax-advantaged healthcare accounts get confused, because the abbreviations are almost the same! But there’s an important difference: With an HSA, you own the account. You can keep your HSA for as long as you want, as long as you have money in it. You can spend as much or as little of your HSA money as you choose, or you can invest the HSA money for retirement.

With an HRA, your employer owns the account, your employer gets the tax deduction, and there’s no special “triple tax break” like you get with an HSA. HRAs can be a good way to pay your out-of-pocket healthcare costs, depending on your overall insurance situation — but you don’t get a tax break on your tax return.

HSAs also tend to be more flexible than an HRA. With an HSA, you get a tax deduction for every dollar you put in (up to a certain limit), and you have full visibility and control over how that money gets spent.

I have personally experienced both HSAs and HRAs over the years with different employers and while being self-employed, and I prefer the HSA! Health savings accounts are just a little more straightforward and easy to understand. You get to keep your HSA even if you leave a job. And if you have extra money in an HSA when you reach age 65, you can spend that money for anything you want, not just healthcare. (But you will owe income tax on those non-healthcare withdrawals.)

How to use your HSA to save money on taxes in 2024

If you’re getting ready to file taxes on April 15, 2024, there are two ways you can reduce your taxes with a health savings account, if you qualify.

1. Put extra money into your HSA for 2023

Just like with a traditional IRA, you’re allowed to make prior year contributions to an HSA until the tax-filing deadline. So if you already had a health savings account in 2023 but didn’t put the maximum amount into it, you can still make tax-deductible contributions, up to the 2023 limits of $3,850 for single people, or $7,750 for families. You have until April 15, 2024 to make these extra contributions, and get a deduction on your 2023 taxes.

2. Max out your HSA for 2024

If you’re just getting started with a health savings account in 2024, you should make a plan to put as much money as possible into your HSA. The 2024 HSA contribution limits are $4,150 for singles, and $8,300 for family coverage. If you’re a married couple in the 22% tax bracket for 2024, maxing out your HSA would save you about $1,826 on your 2024 federal income taxes.

Bottom line: If you have the right kind of high-deductible health insurance plan (HDHP), you can open an HSA. This special tax-advantaged account can help you save money for healthcare, reduce your taxable income, and even get some extra tax-free income in retirement.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More