Money Management

Paying $60 for a Costco membership only makes sense if you get more than that back in value. Here’s how a few Black Friday deals may be worth that investment. 

For anything with a membership fee, be it a credit card or Costco, you need to know whether what you’re getting is worth that cost. (If you’re paying more for something than it’s worth, it’s time to rethink your personal finance decisions.)

A basic Costco membership, for instance, costs $60 a year. So you need to get at least $60 in value from your membership to make it worthwhile.

While it’s easily possible to make up that value in little savings throughout the year, Black Friday offers an opportunity to get your $60 in value — or more — with a single deal.

Black Friday deals worth $60 or more

Alright, so Costco is not the biggest, baddest place for Black Friday deals. (The normal prices are already so low, the brand probably doesn’t feel it needs to do blowout deals for our beloved capitalist holiday.)

That said, you can definitely find a few deals that could make a membership worth the price.

$150 off the Vitamix Ascent 2300 Blender Super Bundle

If you want awesomely smooth smoothies, a Vitamix is a must-have appliance. (Mine was worth every expensive penny.) And you could definitely do worse than picking it up from Costco.

The Vitamix Ascent 2300 Blender Super Bundle normally goes for $649.99 on Costco.com (which is already a good deal since it’s currently $814.95 on the Vitamix website). But on Black Friday, you can get it for $499.99 from Costco.com, a discount of $150. Even if you subtract the $60 membership fee, you’re still saving $90 on the bundle.

It’s worth noting that the machine by itself goes for $450, which is less than even the sale price for the bundle. So make sure you actually need the additional items before paying the extra $50 for the Costco bundle.

$200 off Dyson V15 Detect Total Clean Extra Cordless Stick Vacuum

Much like Costco, Dyson seems to have its share of dedicated fans. I haven’t tried them, so I can’t speak to quality, but if you’re of a mind to pick one up, this is a solid offer.

The Dyson V15 Detect Total Clean Extra Cordless Stick Vacuum has a normal warehouse price of $699.99. For Black Friday, you can get it for just $499.99, both in-warehouse and online. By those numbers, that’s $200 off the cost; minus the $60 membership fee, you’re still $140 ahead.

That’s also less than you’ll pay at any other retailers, as far as I can uncover. Even Dyson itself (well, Dyson.com) wants $749.99 for the same mode. That said, I did see that Dyson sells what seems to be a nearly identical model that’s currently on sale for $549.99 if you’d rather skip the Costco route.

Keeping membership cost in mind

I looked at two examples of individual deals that could be worth the cost of membership, but some smaller deals could also add up to big savings. Just make sure you’re always including the cost of membership in your savings calculations.

For example, the Bose QuietComfort 45 SE Noise Canceling Headphones Bundle is going for $179.99 on Costco.com right now. That’s a $120 discount over the normal price, which is great at first glance. However, you could get the same item from Bose.com for $199.99 right now. When you consider the $60 cost of a Costco membership, you’re better off going with Bose.

More value all year long

While there are some good deals going on for Black Friday, you don’t necessarily need to pay for your entire membership in savings right now. That is, you don’t need to do so if you intend to shop at Costco for anything else in the next year.

There are several ways to get value from your Costco membership, as any fan can tell you. You could enjoy $1.50 hotdogs from the food court, for example (a Five Guys dog will run you more than $6 where I am!).

And don’t forget the immensely popular Costco house brand, Kirkland Signature, which features tons of everyday products that are highly reviewed — and generally a really good value. Saving $5 a month on toilet paper and paper towels would pay for your membership right there.

Oh, and being a member makes you eligible to apply for the Costco Anywhere Visa® Card by Citi. While it’s only a so-so card for Costco, it’s a competitive gas rewards card with 4% back on up to $7,000 a year in gas and EV charging. I’ve already shown how an average driver can make up their Costco membership in gas rewards alone with this card.

Now, all this isn’t to say a Costco membership is a slam dunk for everyone. If there is no Costco nearby, you’ll be missing out on most of the best prices (online prices are typically much higher than in-warehouse prices, and often come with shipping costs). But it’s certainly worth checking out the holiday sales ads to see if there are any deals that may make a membership make financial sense.

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

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. 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.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 and Visa. The Motley Fool has a disclosure policy.

 Read More 

Be careful when paying for holiday purchases, as choosing the wrong payment option could mean struggling down the line. Read on to learn more. 

At this point, many people are at the very least starting to do their Christmas shopping. And you may be hitting the stores over Thanksgiving weekend to take advantage of events like Black Friday and Small Business Saturday.

In the course of making your purchases, you may be tempted to check out using a buy now, pay later plan, or BNPL plan. Research from The Ascent from 2023 found that 35% of consumers use these plans, which is actually a decrease from previous years.

But you may want to steer clear of BNPL plans when doing your Christmas shopping. If you sign up for one of these plans, these unfortunate consequences might plague you in the new year.

1. The stress of having to make payments

If you’ve ever had to deal with monthly credit card payments, you know how stressful it can be to have debt hanging over your head. And because BNPL plans usually have you paying off your purchases in about three months’ time, signing up now could easily mean having those payments carry over into the new year. And that’s not a great way to kick things off.

You may want to resolve to save more money or meet other goals in 2023. Owing money on a BNPL plan could hinder those goals.

2. Credit score damage

Just as your credit score can take a hit if you’re late paying a credit card bill, so too can serious damage occur if you fall behind on a BNPL plan payment. BNPL companies have access to the credit bureaus just like credit card companies and can report delinquent payments as they see fit.

Meanwhile, let’s say you’re hoping to buy a home in 2024. You’ll need a good credit score to qualify for a mortgage and snag a reasonably competitive interest rate on one. As such, taking on BNPL payments right now could be risky.

3. Costly fees

A big reason consumers tend to like BNPL plans is that they don’t charge interest or fees — provided you keep up with your payments, of course. If you fall behind, you’ll face a host of expenses that could effectively have you throwing your money away.

The aforementioned research piece found that 26% of respondents who use BNPL plans have had a late or missed payment. Joining their ranks could cost you big time. Some plans charge a late fee around $40, and one even charges 25% of the original price, which could result in a big hit to your personal finances if your purchase was a large one.

A better way to pay for Christmas gifts

The best way to pay for Christmas gifts is simply with cash. Or you can swipe a rewards credit card to get your points, provided you know you have the money to pay for those purchases sitting in the bank already. If you can’t afford all of the items on your Christmas list, whittle down your list. Or pick up a side job and pad your personal finances to cover holiday purchases.

Whether it’s a BNPL plan, a credit card balance, or some other type of loan, you really don’t want to go into the new year with debt. So you’re better off making changes to your shopping plans than risking that fate.

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

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. 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 

Make sure you get the biggest discount possible this Black Friday. If you are strategic, you can save more money. Don’t miss these money-saving shopping tips. 

Now that Thanksgiving week is here, you may be trying to decide what deals to shop for Black Friday. Many big retailers and small businesses have money-saving offers that could help you keep more money in your wallet. But if you take extra time to strategize before you shop, you can maximize your savings. Here are a few lesser-known ways to save big this Black Friday.

1. Shop early…or late

These days, Black Friday is a multi-day event. Most major retailers hold sales beginning several days before Black Friday and extend them well past Cyber Monday. If you need to shop before or after Black Friday, you can still score significant savings. Don’t feel pressure to shop on one specific day, when there are multiple days to get a great deal during the holiday season.

2. Don’t ignore price match guarantees

As you shop for the best deals this Black Friday week, review price match policies. Many top retailers have more generous price match guarantees during the holiday season. If you buy something covered by such a policy and the price is later reduced, you can get the price difference refunded. If you don’t pay attention to price matches and don’t re-check pricing, you may spend more than necessary — so make sure you’re not missing out on an even better deal.

3. Use coupon codes at checkout

Many of us do our Black Friday shopping online. Shopping online is an excellent alternative if you hate lines, busy crowds, and traffic. Before you complete the online checkout process, first see if you can get a bigger discount using a coupon or promo code. You can use one of the best coupon apps to find discount codes that lower your shopping bill. This strategy is a simple but often overlooked way to save money during the busy holiday shopping season.

4. Check for subscription deals made available to new users

This time of year offers the perfect opportunity to try new-to-you service subscriptions. Whether there’s a new software program or streaming app you’ve been considering using, check for holiday deals. Many companies offer massive discounts to new subscribers. By subscribing now, you may find a fantastic service that meets your needs without draining your checking account.

5. Review deals and negotiate service provider prices

Some expenses, like home internet, cable, and cellphone service, can be negotiated. Now is an excellent time to review competitors’ plans and prices. You can use this pricing data to negotiate pricing with your current service providers. Call them and ask if they’d be willing to match a competitor’s price instead of you switching providers altogether. Even if they don’t match holiday deal prices, they may offer you a deal cheaper than your current price.

6. Stock up on everyday essentials

Many people shop deals to save money on holiday gifts, but that’s not the only option for big sales events. Black Friday is also a good time to stock up on everyday essentials for you and your family. Some of the products you use daily may be sold at a discount for the shopping holiday.

For example, my local skin care clinic will have all skincare products discounted by 20% in honor of Black Friday. I can save some money by stocking up on go-to products like my favorite face moisturizer. Plus, I won’t need to refill my cabinets for a while.

7. Pay with cash to avoid overspending

Spending more than you can afford is never a good idea, especially when you’re using credit cards. If you’re not cautious, you can quickly develop an expensive credit card debt problem. If you struggle with overspending, consider using cash for your Black Friday shopping trip. Having physical cash on hand could make it easier to stay on budget. But if you don’t struggle with this, you may want to opt for cash back credit cards to earn money back on your spending.

Keep your finances in mind as you shop

Whether shopping Black Friday sales for holiday gifts, upgrading home gadgets and accessories, or stocking up on everyday essentials, these tips can help you keep more money in your pocket. For additional ways to save money, check out our personal finance resources.

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

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. 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 

Fast food prices are outpacing inflation. Find out how planning ahead, using apps, and setting a budget can help. 

I’m about to take a road trip from my home in the mild South to the wintry North to visit family for the holidays. My family makes the long drive in one day, which means multiple stops for food and thus, eating some meals at fast food restaurants.

I have my own preference for a certain fried chicken location that’s closed on Sundays, but we often stop wherever it’s convenient. And while any trip to a fast food restaurant provides a typically predictable experience, the total cost of a fast food meal has recently become unexpected.

Fast food prices have jumped 29% since 2019, easily outpacing inflation. Add it to the list of higher prices eating into Americans’ personal finances. The result is traffic at fast-food restaurants was down 2.5% in October, and more than half of customers say they had “sticker shock” when looking at fast food prices, according to Restaurant Business Magazine.

And some restaurants are still raising prices. McDonald’s CEO Chris Kempczinski said recently that a new wage law in California that raises the minimum wage for fast food workers means the restaurant chain will increase prices in the state.

If you’ve noticed your own budget being stretched when eating at fast food restaurants, here are a few tips to navigate the sky-high prices.

1. Plan ahead to find deals

The rapid rise in fast food costs may mean you need to think more about a trip to your go-to fast food restaurant than you used to.

You don’t have to cut out these meals, but you may want to plan them out a little more. Lots of fast food locations offer weekly deals you can take advantage of. For example, my kids love Papa John’s pizza, and the chain has special carry-out deals, which saves about $5 off the cost of a pizza.

2. Use fast food apps to earn rewards

I used to go to Starbucks a lot and easily earned drink rewards through the store’s app. My family uses the Chik-fil-A app when we take our kids there, and we’ve earned free sandwiches and drinks.

Using an app for each of your favorite fast-food restaurants could help you quickly earn rewards points and get some food for free.

3. Order one item instead of a meal

Getting a combo meal isn’t always the best deal. If you order just a sandwich or burger and then combine it with your own chips and drink from home, you can likely save a few extra dollars.

I’ve done this before if I’m craving something specific, but don’t want the fries or whatever side comes with it. Sometimes it can even be cheaper to get two main course items — and no sides or drink — than getting a combo meal.

4. Set a budget

This suggestion goes for any type of spending, but having a specific budget for your monthly fast-food spending can keep your finances on track.

Just like you would for any other spending category, designate a specific amount you can spend on fast food and keep track of the costs throughout the month to ensure you stay within your limit.

5. Sign up to receive special deals

Some fast food restaurants will give insiders special deals for their birthdays or at random times throughout the year. You’ll likely have to give some personal information to them, like your email address, but many will return the favor with the occasional discount.

Of course, eating at home is a great way to reduce food costs as well, but the above tips will help you save a little money when you’re craving your favorite fries. Because the ones made at home in the air fryer aren’t the same. I’ve tried.

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

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. 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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

 Read More 

New growth, rising supply costs, and professional fees can affect your business’s finances. Read on to find out other costs you should look out for. 

A recent Shopify survey showed that new businesses spend an average of $40,000 in expenses in their first year. That’s a hefty sum no matter what your small business does, and for many entrepreneurs, there’s little room for error when it comes to costs.

Unfortunately, all businesses incur unexpected costs, and it’s better to embrace the fact there will be expenses you didn’t plan for than to assume you won’t have any.

The good news is that there are some patterns of unplanned costs that entrepreneurs can assume will occasionally impact their business. Here are five that could set you back $1,000 or more.

1. New growth

While many unexpected costs can have adverse effects on your business, it’s not always the case. Sometimes, opportunities come along that are too good to pass up, and you might need to spend some extra money to take advantage of them.

For example, maybe a space opens up right when you need it to in a perfect location for your business, but you haven’t planned for moving costs or a rent increase. Or, perhaps, you come across some new machinery that will make your business far more efficient and productive, but you haven’t previously budgeted for it. You may also discover a new product or service that you need to invest in but hadn’t previously set money aside to create.

Having a financial plan that leaves little room for new opportunities could help you jump on them when they pop up. But planning ahead could help you invest in new growth when you have the chance.

2. Equipment repair and replacement

Almost all small businesses have equipment costs, whether computers, factory equipment, ovens, or point-of-sale terminals. If you buy most of it new, it can be easy to forget that it’ll need to be repaired or replaced at some point.

You should plan for your equipment to need repairs or replacement every few years, and for many small businesses, that could easily cost more than $1,000. While it may not be in your budget to set money aside in a business bank account for future equipment needs, you should at least create a schedule for when you expect the equipment may need servicing.

3. Shifting supply costs

Inflation has weighed on many small businesses as their costs for nearly everything have risen significantly over the past few years.

Recent data shows that 22% of small business owners say inflation is their biggest challenge. And while the Federal Reserve has made some progress in slowing it down, small businesses will likely feel its impact for a while.

While you may not be able to calculate precisely how much your supply costs will increase, you can better understand your expenses by using expense management software to see where your costs are rising.

4. Professional fees

You may have hired a professional to help do some market research or consulted with a lawyer before you launched your business. Tapping into professional expertise is a critical move for entrepreneurs who may need extra help navigating complex areas of their business, like accounting or small business taxes.

However, some small businesses may end up spending more on professional fees than they expect. According to data from UpFlip, the average fee for one year of legal services for small, home-based businesses is $2,000. Planning for this cost could help avoid sticker shock when reaching out to professionals when you need their services.

While it’s unlikely that you’ll never need a professional, you can tackle some potential costs on your own using small business software, like accounting software.

5. Inventory shrinkage

Inventory shrinkage affects nearly every type of business and can be impacted by many factors, including theft, lost or misplaced products, and inventory damage. The retail industry may be the most affected by shrinkage, with the National Retail Federation estimating that it costs the entire sector $112 billion in losses in 2022.

Many businesses could easily lose $1,000 annually to missing or stolen products, and one way to know how much shrinkage affects your business is to track your inventory expenses.

While there’s no way to map out your unplanned expenses, having a few ideas of where your business is most vulnerable could help you budget for some of them. Or, at the very least, keep you from being caught off guard when they occur.

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

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. 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