Money Management

Sales can help you save money when buying everyday goods. But make sure the discount you’re being shown is legit. Here’s what to do before you shop a deal. 

The end of the year is an excellent time to scoop up fantastic deals on electronics, beauty items, household essentials, appliances, and more. Thanks to Black Friday, Cyber Monday, and other holiday sales, you can shop for what you need and keep more money in the bank.

But make sure you’re not getting tricked by retail marketers. You should always research the product’s original price before adding a sale item to your shopping cart. Let me explain why.

Don’t assume every sale is worth your money

With so many businesses advertising sales, especially at the end of the year, deciding which deal is worth your time and money can feel overwhelming. As you review the constant flow of deals advertised in your email inbox and on social media, remember that this is a sales tactic businesses use to get you to spend more money.

It can be easy to fall into the trap of falling for every deal you see, especially if you’re short on time. But if you’re not careful, you could overspend, which could result in you accumulating expensive credit card debt. It’s essential to do your research before you shop.

When considering a potential sale, it’s best to research the original price. Don’t trust the price displayed in the advertisement or the in-store sales sign. Retailers are sneaky, and some will inflate the earlier price, so it appears you’re getting a better discount.

Once you know the retail price, you can better decide if a deal is worth your money. You may find out that you’re not getting as good of a deal as you first thought and may want to wait to purchase until you can get a more significant discount. Don’t get tricked into wasting money.

How to research prices before you buy

A quick internet each can give you more insight into product pricing. It’s wise to spend a few moments searching to verify the usual price of a product you’re interested in buying. Before buying a product at a big retailer like Target or Walmart, another option is to go to the manufacturer’s website to review pricing details.

You can use the Google Shopping tool to compare pricing for a specific product across multiple retailers. Another helpful feature of this pricing comparison tool is a feature that shows you whether the price you’re seeing is competitive. This is especially useful during a busy sales season when other retailers sell the same product at a discount.

Another tip: Gather sale pricing information from other customers. When I’m considering buying a specific product during a big sale event, like Black Friday or Prime Day, I search online for more detailed sale pricing information from other shoppers. Some shoppers will share their personal experiences regarding prices.

Reddit is one social media platform that may also be useful for this research. You may find other shoppers have scored better deals in the past and learn that the deal you’re seeing now isn’t worthwhile. This information can help you decide whether to shop a deal or hold off.

Keep your finances in mind as you shop

It’s essential to keep your personal finances in mind. Before you spend money, consider whether your choice will impact your financial situation negatively. You may want to set a budget during the busy holiday shopping season to avoid overspending. If you’re new to budgeting, using one of the best budgeting apps may help.

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Fully enmeshing your finances with another person can be a serious mistake. Keep reading to learn why financial independence is a woman’s best friend. 

Being a woman in America comes with a lot of baggage, not the least of which is financial baggage. For starters, we’ve only had protection from financial discrimination on the basis of sex since 1974, when the Equal Credit Opportunity Act (ECOA) became law. And all too often, we’re encouraged to fully combine our finances with a partner when things get serious — I advise against this. Creating and maintaining financial independence is the best money move you can make, period, even if you’re in a committed partnership. Here’s why.

What’s the danger of total financial dependence?

Leaving yourself without total access to at least some of your own money comes with a few potential dangers.

Domestic violence

Abusive relationships are frighteningly common. According to the National Coalition Against Domestic Violence (NCADV), 1 in 4 women experience severe intimate partner violence, and on any given day, over 19,000 phone calls are made to domestic violence hotlines. Financial abuse is a component of most abusive relationships; the NCADV says 94%-99% of DV survivors also experienced it.

Financial abuse in a relationship can be your partner not allowing you to work (or sabotaging your job so you get fired), controlling all the household money, or having secret bank accounts. If you have no money of your own and no way to make some, you could be in real trouble.

Life is unpredictable

Even if your relationship isn’t abusive, you could still find yourself on your own at some point. Even the most amicable break-up will change your financial outlook in a big and sometimes scary way.

I can tell you from experience that getting divorced and then scrambling to find a roommate so you can cover your bills is far from ideal. I got through it (alongside a ton of worry and sleepless nights), but it only strengthened my resolve to be able to afford all the household bills on my own, and maintain it going forward. When I finally got to that point, I celebrated.

If you’re in a relationship with a man, statistics say you’re likely to outlive him. According to research reported in JAMA Internal Medicine, the current gap in life expectancies between men and women is the widest it’s been since 1996 — 5.8 years. Imagine losing a beloved spouse of many years, and being immediately thrown into financial turmoil on top of widowhood because you don’t know how to manage or access the money left behind (if any). Thankfully, there are ways to ensure you don’t end up in this situation.

How do you prioritize your own finances?

Focus on making the following moves to improve your financial resiliency.

Build your job skills

The gender pay gap still exists — as of 2022, women still earned just $0.82 on average for every $1 earned by a man. And the disparity is even greater for women of color; Black women earn an average of just 70% of what white men earn.

You can boost your pay by finding ways to make yourself marketable to employers. Consider taking advantage of networking opportunities in your field, like conferences. Add new skills to your resume, as they can help you command higher pay or a greater variety of paid work tasks.

Research salaries, too. If you’re not being paid what you should be for your work, it might be time to change jobs — or even careers. And remember this when you’re applying for jobs: If you were 100% qualified for the role, that employer wouldn’t be able to afford you. So don’t be shy about applying for positions that you know you’ll grow into with time and training.

Maintain your own savings and retirement accounts

You need your own financial accounts, full stop. This is true even if you’re in a relationship that you expect to last the rest of your life. For one thing, it’s a good idea to diversify your financial holdings. Life is unpredictable, and if one of the banks where you keep your money has a problem, even with FDIC insurance, it might be a few days before you can access that money — so having some in another institution can help you avoid a problem.

Having your own savings account (and emergency fund) and your own investment account gives you access to the money you need when you need it, whether it’s to cover an unplanned car repair or ensure a secure and comfortable retirement. You can be proactive about saving and investing if you control your accounts. And there’s nothing saying you can’t also have shared accounts with a partner — doing so can be a good way to save for shared goals and split joint bills.

Learn as much as you can about personal finance

Finally, you can do yourself a world of good by learning everything you can about money management. Staying abreast of the latest money news is a great start. Consider reading more articles here at The Ascent; we cover the stories and developments that impact your wallet. It’s also a good idea to meet with a financial advisor who can answer your questions about budgeting, investing, and beyond.

And as larger economic trends impact everyday Americans’ lives, be prepared to act in your best interest. As an example, thanks to higher interest rates, it’s an even worse time to have variable-interest debt (like that on a credit card) — but it’s a fantastic time to open a certificate of deposit (CD).

If you’re currently partnered, the thought of being on your own against the world is a scary one. Women are all too often socialized to be dependent, and fighting for your financial independence can be a long hard struggle thanks to the gender wage gap, receiving less education about money, and social conditioning. But trust me — it’s worth it.

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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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Is Costco worth paying more for? Read on to see if the math works for you. 

Many people enjoy shopping at Costco because doing so can help them free up more money to add to a savings account. Aside from discounts on things like groceries and everyday essentials, a Costco membership offers a world of benefits.

You can use Costco to book an all-inclusive travel package at a competitive price. Or, you can use Costco to replace your car’s tires at a low cost or fill up your vehicle’s tank for less.

Right now, a basic Costco membership costs $60 a year, while an upgraded Executive membership costs $120. The Executive membership offers 2% cash back on Costco purchases, so it’s a good option for people who shop at the store a lot.

But while these are the fees associated with a Costco membership right now, that has the potential to change. See, Costco hasn’t raised its fees since June 2017. And that’s a longer stretch than usual to go without a fee hike.

During the company’s last earnings call, CFO Richard Galanti said, “it’s a question of when, not if,” in the context of an upcoming fee hike. And while he did not state that fees are set to rise in 2024, that’s certainly a possibility.

That raises the question — is your Costco membership worth keeping if it starts to cost more in the new year? Or should you dump it once the price goes up?

How much do you save at Costco?

The last time Costco raised membership fees, a basic membership went up by $5 and an Executive membership rose by $10. There’s a good chance that an upcoming fee hike will look similar. If so, that would bring the cost of a basic membership to $65 and an Executive membership to $130.

If your current Costco membership is worth paying for, then chances are, it’ll still be worth it to pay for a membership for $5-$10 more per year. But if you’re on the fence, crunch the numbers.

Let’s say you only have a basic membership because you only go to Costco once a month. The next time you’re there, keep your receipt and try to compare the cost of your Costco purchases to what the equivalent would cost at a supermarket or big-box store. Then, calculate your projected savings over a year.

So let’s say you do the math and figure you saved $15 during your last Costco visit. If you save $15 on 12 different occasions during the year, then that’s $180. So even if you end up having to spend $65 on a basic membership, you’re still coming out ahead financially.

Why a fee hike may not be so bad

As a consumer, it’s natural to want to pay as little for any given product or service as possible. But one thing to remember about Costco’s business model is that the company uses the revenue it collects in membership fees to help offset the cost of procuring the goods it sells.

To put it another way, by paying those membership fees, you’re often getting access to much lower prices than what you’d find at a regular store. So if fees increase at Costco in 2024, know that in return, you may be able to reap even more savings on the things you buy there regularly.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Managing your finances can be overwhelming. Keep reading to learn how working with a financial advisor can be great for your confidence levels. 

No one is born knowing how to manage money, and unfortunately, our schools don’t do a great job of teaching personal finance. I wish I’d spent more time in school learning about calculating income taxes and how credit card interest works, rather than square dancing and practicing cursive handwriting.

Luckily, it’s never too late to learn how to get better with money. I started working with a Certified Financial Planner in early 2022, and having a money coach in my corner has helped me immensely. I’ve learned a lot along the way, and if I have a question, I have someone I can ask. I’m not alone in this — according to findings from the 2023 Northwestern Mutual Planning and Progress Study, Americans who work with financial advisors report feeling significantly more confident about retiring with enough money, handling unplanned expenses, and living well today without costing themselves in the future.

If you’ve never met with a financial planner or advisor before, it might be worth your time (and the fee). Here’s why.

What can a financial advisor do for you?

Before I learned better, I assumed that I didn’t make enough money to need a financial advisor. I also didn’t have money to invest at that time, so I wasn’t sure what we would even talk about. Well, as it turns out, financial advisors can help anyone, regardless of income. And even if you’re just getting started with investing or aren’t ready yet, there are plenty of other financial matters they can help you with.

Budgeting and debt payoff are two of the cornerstones of money management, and a financial advisor can be your guide here. Some advisors use planning software that makes it easier to get a comprehensive look at your income versus your expenses, so figuring out where you can cut spending and find money to put in your savings account is a lot more straightforward. Similarly, if you’re struggling with debt, meeting with an advisor might give you the information and impetus you need to make a plan to pay it off.

When I started meeting with my CFP last year, I had a fair amount of high-interest debt, and as I went through the process of snowballing my debt payoff, it was helpful to have someone in my corner, cheering me on.

Going back to investing, helping you find the right brokerage account or setting up investments for retirement is an area where many financial advisors shine. An advisor will consider your risk tolerance, timeline, and how much money you have available to invest when deciding how to set you up for success. If you need help with insurance, saving to buy a home, or starting a business, yep, a financial advisor can be your ally here too. In short, no matter your money concerns, there’s an advisor out there for you.

How do you find a financial advisor?

Now you know how a financial advisor can help you, but how do you find a good one? Start by asking friends and family if they work with an advisor, and whether they’d recommend the person they use. Financial advisors have their own professional networks, too, which means that if you meet with one and they’re just not a fit, they might be able to recommend a colleague.

The National Association of Personal Financial Advisors is another excellent way to find one. Search the website to find someone in your area. The Securities and Exchange Commission also maintains a database of people licensed to work with investments. It’s also a good idea to run a prospective advisor’s name through the FINRA (Financial Industry Regulatory Authority) BrokerCheck database to ensure you’re working with someone who is licensed.

If you need help with money matters, you’re not alone, and consulting with a professional is one of the best ways to get a better handle on your finances. You might be amazed by just how much more confident you feel afterward.

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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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