Money Management

Want to ditch your debt in time for 2024? Read on to see if it’s feasible and how you might pull that off. 

If you’re carrying a balance on your credit cards, rest assured that you’re not alone. As of the third quarter of 2023, U.S. credit card balances were at $995 billion, according to TransUnion. And they also rose 15% from a year prior. This tells us that a lot of people clearly needed to borrow via their credit cards for different reasons over roughly the past 12 months.

Now, perhaps you ran into credit card debt because you encountered a home or car repair and didn’t have enough money in your emergency fund to cover it. Or maybe you just lost track of your spending at one point during the year. Hey, it happens.

Either way, you may be eager to shed your credit card debt by the end of the year so you can start off 2024 with a clean slate. Whether that’s doable, though, will depend on how much debt you have.

It’s important to be realistic about your credit card debt

If you’re an average earner with a $5,000 credit card balance, then chances are, it’s not going to be gone by Dec. 31. And it’s important to accept that.

You don’t want to put undue pressure on yourself and ruin the holiday season for no good reason. So if your debt load is large enough, set a more realistic goal — say, paying it off by the end of 2024.

However, it may be that you owe a smaller sum on your credit cards — say, $500 or $800. It may be more feasible to pay off a balance of that size in about a month with the right approach.

If you don’t think your credit cards can be paid off in full by the end of the year, then you may want to consider ways to consolidate your debt and make it less expensive to pay off. One option is to do a balance transfer to a new card with a 0% introductory APR. Another option is to consolidate your debt into a personal loan, where you’ll benefit from a fixed interest rate (and, most likely, a lower interest rate than what your credit cards are currently charging you).

The gig economy could bail you out

Maybe you owe an amount on your credit cards that’s reasonable to pay off by the end of the year with the right amount of effort. In that case, joining the gig economy could be your ticket to knocking it out in about a month’s time.

Many local retailers are all staffed up for the holiday season at this point. But you might still manage to find a local business that needs more help.

You can also consider gigs like pet-sitting, since many people tend to travel during the holidays and therefore might need the help. And if you live near an airport, December could be a good month to drive for a ride-hailing service, as there might be strong demand.

Paying off a moderate amount of credit card debt by the end of the year may be feasible. But if you have a larger balance, be realistic.

And rather than get down about carrying debt into 2024, map out a solid plan to get it paid off. Having a game plan could help you feel better about your situation, since you’ll know there’s a light at the end of the tunnel.

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Costco is great. But I’ve made my share of purchases that haven’t worked out. Read on to learn more. 

I shop at Costco weekly. And most weeks, I pick up groceries such as milk, cheese, fruits, veggies, and snacks.

Although I’m a bit set in my ways when it comes to Costco buys, I’m also more than willing to take a chance on a new product. Case in point: A few years ago, I bought these Kirkland cashew clusters on a whim, and they’ve become one of my favorite snacks to bring along on a hiking trail.

One of my favorite things about shopping at Costco is trying out different products. And another thing I love is reaping savings thanks to Costco’s ultra-low prices. But I’ve also had my share of Costco purchases that just haven’t worked out. These items fall into that category — and I probably won’t buy them at Costco again.

1. Avocados

The price of avocados at Costco varies based on the season as well as supply. But usually, a six-pack of avocados at Costco is equivalent to roughly three or four avocados at a regular supermarket where I live. That’s what tempted me to buy avocados at Costco in the past. But I won’t do that any longer because I’ve realized that avocados are just not a product I can buy in bulk.

I’ve found that when I buy a batch of avocados, what’ll happen is that they’ll be rock hard…until they aren’t. But it doesn’t help me to have six avocados ripen at the same time. And yes, I’ve tried the paper bag method. I find that it shaves maybe half a day off of the ripening time, which means spacing things out doesn’t really work.

Consumers often risk losing money to food waste by buying the wrong products in bulk. So think carefully before doing the same, especially when it comes to produce that isn’t ripe and ready to eat at the time you’ve bought it.

2. Kirkland paper towels

Kirkland paper towels tend to be a lot cheaper than Bounty, my go-to brand. A 12-count online costs $22.49, which is $2.19 per 100 square feet. Bounty costs $4.57 per 100 square feet, or $29.99 for a 12-pack of rolls. That’s clearly a lot more expensive.

But there’s a reason I’m loyal to Bounty — the stuff works. And when you have a household full of kids, you need a good paper towel.

Although I normally find Kirkland products to be high in quality, its paper towels are the one exception. As such, I don’t see myself buying them again.

You may have a certain budget you’re trying to stick to for things like toilet paper and other household essentials. But it’s important to recognize when it pays to spend a little extra. In this example, Kirkland paper towels are considerably cheaper than Bounty. But if you need four sheets of Kirkland to do the job of one sheet of Bounty, you’re not really saving money in the end.

3. Sandwich bread

Because my daughters take a sandwich to school for lunch almost every day, we go through bread somewhat quickly in my house. But I still find Costco’s two-pack of sandwich bread to be too large a quantity to buy at once.

It’s similar to the avocado issue — only with the bread, I don’t have to wait for it to become edible, because it’s edible as soon as you bring it home. But because of that, I find that it tends to get moldy somewhat quickly. By the time I’m only part of the way into my second loaf, I have to toss it out.

Buying in bulk can often be a big source of savings. But it’s important to know which bulk items do and don’t work for you. For me, bread is a no. Before you go shopping, think about your eating habits. You may find that even if you go through a lot of bread, you’re better off paying a little bit more at the regular supermarket and buying one loaf at a time.

Costco is a wonderful place to shop. But these three products no longer have a place on my Costco list.

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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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Think you’ve got the perfect gift picked out for that special someone? Discover a few present ideas to think twice about this holiday season. 

We’re in the thick of the holiday shopping season, and you know what that means — it’s time to stress over the gifts you’re getting for the people closest to you. Ideally, you’d know exactly what to get, and in the case of adult gift recipients, you’re opting for something they can really use. But if you’re still gathering ideas, here are a few to miss — or at least consider very, very carefully before you plunk down your credit card.

1. A pet

Ah, the gift of unconditional love — and a ton of physical and financial responsibility. For this reason, you should think very carefully before adopting or buying a pet for another person. If the gift recipient is your child, you should be prepared to shoulder a lot of the care for that pet — if you’re not prepared for it to be a family pet, opt for a low-maintenance stuffed animal instead.

I don’t know that there are really any circumstances under which you should choose an animal to give to a fellow adult. For one thing, the gift recipient likely would prefer to choose their own pet — the one you choose may not be a personality or breed fit. And for another, keeping pets healthy and happy requires a not-insignificant amount of money — you’ve got to cover food and supplies, as well as vet care, and some pet owners opt to pay for a pet insurance policy to help defray their veterinary costs. Finally, bringing an animal home over the holidays isn’t ideal — it’s a stressful and busy time for many people.

2. A spa package

OK, I admit it — a day of beauty and relaxation at a local spa would be a wonderful gift for the right person and in the right circumstances. But it’s those circumstances that you should weigh carefully ahead of time. If you’re getting a gift certificate for a special person, will they be able to use your gift to the fullest, or will they be worried about missing time at work? Do they have child care (if they need it)? Bringing a small child to a spa might not be allowed, and even if it technically is, doing so will surely dampen the enjoyment of the parent, and likely also that of the other paying spa guests.

Finally, is your gift certificate enough to cover the cost of a tip along with the treatment? Real Simple notes that a standard expected tip for say, a massage, is 20%. If money is tight for your gift recipient, the addition of a tip might serve to make your gift a financial burden, and you don’t want that.

3. A plane ticket

Buying someone a plane ticket is a generous way to show your love, but yes, this is another gift that has the potential to end up being extremely expensive for the recipient. If you’re prepared to pony up the rest of the costs for a vacation (or perhaps the plane ticket is a gift for an adult child that you’re hoping will visit, and can stay with you), this could be a good present.

It might also be a good idea if the recipient has been saving for a trip and just needs a little help to put them over the top. But if the recipient is living paycheck to paycheck and will not be able to swing the price of hotel rooms, renting a car, or potentially expensive vacation meals, don’t buy them a plane ticket.

4. A new phone

We all want the latest and greatest tech available, and it’s easy to gloss over the expenses that come with a shiny new smartphone. If the phone you’re buying is a big upgrade for the gift recipient, can they swing the monthly cost of a more expensive data plan? How about accessories, like chargers and a protective case? After all, if you’re spending $500 to $1,000 on a new phone, you want to keep it safe. It’s worth making an honest assessment of your gift recipient’s personal finances before springing for a new phone — it’ll spoil the surprise, but consider asking them first.

5. A car

Picture it: A spouse leads their spouse out to the driveway with a blindfold on, only to reveal that their holiday gift is a brand-new car, complete with a giant bow! But this is the magic of television advertising, and new cars come with the potential for a nearly endless string of additional expenses beyond just the price of the car itself. You’ve got to pay for a car insurance policy and maintenance (such as oil changes and new tires), of course.

But don’t forget about gas/EV charging and unplanned repairs (such as a four-digit mechanic bill for new coil springs). If you truly want to take advantage of a holiday sale at your local car dealership, discuss this idea thoroughly with the people in your life (such as your spouse, who will surely want some input before you commit to a major ongoing expense).

Personally, I love giving gifts, but would never want to give anyone a present that ends up costing them a lot more money, time, or stress after the fact. Think long and hard before opting for any of the above gifts.

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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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Want more money in the new year? Here’s an easy way to get it. 

For many people, the start of a new year inspires them to set big financial goals. And one of yours might be to boost your savings in 2024.

You could do so by cutting back on spending (think no more weekly takeout orders or Friday night restaurant dinners with friends) or by boosting your income with a second job (bye bye, downtime). But there may be a much easier way to meet your goal if it involves saving more.

Take advantage of today’s higher interest rates

The Federal Reserve has implemented a series of interest rate hikes to cool inflation. And while that’s resulted in higher costs for people needing loans and credit card borrowers, it’s had the positive effect of more generous interest rates for savers. Taking advantage of those rates could put a nice amount of money back in your pocket in 2023.

Let’s say you have a checking account balance of $10,000, but you really don’t need more than $2,000 on hand for near-term bills. These days, top savings accounts are paying 4.5% to upward of 5% interest.

If you move $8,000 out of a checking account and into a savings account paying 4.5%, you could give your savings a boost. That move alone could make you $360 richer by the end of 2023 — without having to give up anything or sacrifice precious free time.

Of course, this assumes that rates stay where they are throughout 2024. That may not happen, especially because the Federal Reserve is expected to cut rates at some point in 2024 if inflation cools further. But even if you take that $360 in interest and divide it in half, that’s still a lot of money to get your hands on without having to do anything other than transfer over some funds.

It could pay to shop around for a new bank

If you currently have a pile of money in a savings account but aren’t getting anywhere close to 4.5%, then it may be time for a switch. And one thing you may want to do is move from a physical bank account to an online bank.

Online banks are often able to offer more competitive interest rates on savings because they don’t have the same overhead costs as physical banks. So it pays to look around and see what rates are available.

Also, the nice thing about online savings accounts is that many do not have a minimum deposit requirement. You may be more likely to face that requirement when you’re opening a certificate of deposit (CD) or a money market account, but with a savings account, there’s less pressure. There’s also less pressure to keep your money in the bank should you decide you need it.

There are several steps you can take to end 2024 several hundred dollars richer. But choosing the right savings account is perhaps your least painless and most effective means of achieving that goal.

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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.
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It’s easy to get caught up in the holiday spirit. However, these shopping traps can leave you feeling blue. 

It would be next to impossible to forget that the holidays are upon us. If nothing else, the rows of Christmas trees, candles, and wrapping paper on display in local stores are there to remind us. Whether you’re someone who loves to shop (a little too much) or you find it painful to part with money, the primary challenge is how many traps you need to avoid if you want to leave a little money in your checking account.

1. Speed shopping

We all know someone who could shop early but loves the thrill of 11th-hour speed shopping. One of the easiest ways to spend money on stuff no one wants is to panic shop. You only have so many hours left on the clock and still need to get purchases home and get them wrapped.

Suddenly, that tacky singing bass seems like the perfect gift for your brother-in-law, and the only thing you can think of buying for your grandmother is another candle. In short, speed shopping can lead to poor decision-making.

If you wait until the last minute to shop, you may also find that the stock at your favorite stores has been picked over.

2. Extended warranties

While an extended warranty may be a nice idea, it’s typically a waste of money. Here are a few reasons why:

Extended warranties are not cheap.Chances are, the purchase comes with a manufacturer’s warranty of at least 12 months.If you plan to use a credit card, it pays to check whether the card offers purchase protection. Many do.

Even if the person offering you the warranty acts like you’re a putz for not tacking the price onto your bill, it’s your money, and you have the right to keep it.

3. Fighting over door-buster deals

Every year we hear about crowds gathering outside stores, only to fight their way in once the doors open. Often, those folks are there to snag advertised doorbuster deals. However, there’s a problem with counting on buying a high-end product on the cheap. Here are two major problems associated with those “unbelievable” doorbuster deals:

While stores advertise doorbuster deals, they may not always inform the public of how many they have of a particular item. Let’s say a store claims it’s selling new iPads for $199, and people line up for the opportunity to buy one. There may only be three or four available, and once those are gone, so is the deal.Retailers sometimes advertise a doorbuster deal, but they’ve actually worked with a manufacturer to produce low-quality versions of that product. For example, you may think you’re buying a perfectly dependable 65-inch television from a name-brand manufacturer, when what you’re getting is a cheap knock-off of the television you hoped to buy.

4. Fake shopping sites

If you became accustomed to online shopping during the pandemic and never quite broke the habit, you may be one of the millions who will scour the web looking for great holiday deals. Military.com reminds its readers to be on the lookout for fake shopping sites.

Here are two ways these scam sites seek to rip you off:

By selling you counterfeit goods, some of which are difficult to tell from the real thing.By accepting your credit card payment, but providing nothing in return.

5. Online promises of free stuff

If you’re on social media, you may have noticed the number of companies offering you something in return for hitting the “like” button on their page. Often, it’s something tempting, like a gift card. What these con artists are trying to do is get your personal information. While they may say they need your address so they can send you the gift, they’re actually looking for identities to steal.

The bottom line is this: Do not provide anyone with your name, address, Social Security number, or any other identifying information. Once your identity has been stolen, getting the issue straightened out can take years.

General rules for protecting yourself this holiday season

If you’re buying something locally, do not pay upfront. Let the seller know you’ll pay once you’re in receipt of the item.Do not make a payment via a money transfer service like Venmo, PayPal, or Zelle unless you know the person you’re sending the money to. Paying through a money transfer service is like handing the recipient cash. If you later learn that you’ve been ripped off, it’s too late. Your money is gone.Use a credit card to pay any time you make an online purchase. While you’re not there to look the shop owner in the eye or to examine the product, most credit cards protect consumers against fraud.

The discouraging news is that we have to be on the lookout for scams and traps. Fortunately, we know what we’re looking for and we can take steps to protect ourselves.

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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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.

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Considering starting a business in 2024? Learn what not to do in the process of getting your new company off the ground. 

According to data amassed by the Bureau of Labor Statistics, about 20% of new businesses fail within the first year of operation. If you’re hoping to start a small business of your own in the new year, you might now be at the stage of gathering information, investigating your competition, and preparing to quit your current job. But before you do, it’s a good idea to learn more about the potential pitfalls waiting for you in the process. Let’s take a closer look at a few mistakes to avoid if you’re a new entrepreneur.

1. Starting without a firm business plan

You may have an idea for a business, but have you taken the time to flesh out that idea and create a business plan? Getting started in earnest without this crucial document could mean setting yourself up to fail. A business plan is a guide to your company and everything you want to do with it over the first few years of operations. A comprehensive one will contain information such as a business overview (where does your company fit into its industry?) and an operations plan (how does your company function?).

Try not to be intimidated by the prospect of writing one — there are templates aplenty on the internet, and you can find resources on the Small Business Administration’s website. Once you’ve got a business plan, you’ll use it to track your progress, as well as to woo investors, hire staff, and even apply for grant funding.

2. Not having adequate savings

Before you quit your job and launch yourself feet first into your business, it’s important to have money in the bank. The typical emergency fund recommendation is to have enough cash to cover three to six months’ worth of bills, because that could be enough time for you to find a new job if you’re laid off. Plus, if you lose your regular job through no fault of your own, you’ll likely be entitled to unemployment benefits that will help you cover some of your expenses.

But if you’re a self-employed business owner and your company goes under, you will have no such luck. It might be prudent to therefore save up a year’s worth of expenses before launching your company, just to be on the safe side.

3. Neglecting tax prep

If you’re striking out on your own, taxes will take up a lot more space in your psyche than you may realize. Going into a new small business venture without a solid plan for handling them is a major mistake.

I became a full-time freelancer at the beginning of 2023, and one of the reasons I felt confident in doing so was because I had taken the time to find a good accountant in 2022, when I started freelancing regularly. I knew I’d need the help with estimating quarterly taxes as well as finding all the deductions I’d be entitled to come tax time. There are some excellent options for small business tax software out there, but I strongly recommend working with a human accountant, at least when you’re first getting started as an entrepreneur.

4. Undervaluing your product

If you’re going from working a job where you’re paid hourly or annually, to one where you’re selling a product or service, it can be really difficult to determine how much you should be charging. Undervaluing your time, your services, or the product you’re selling can be a significant error when you’re first getting started, because it’ll be a whole lot harder to raise your rates once you have clients who have gotten used to paying less.

As such, take the time to really dig in on market research to see how you should be setting your prices. Consider how much your competitors charge for their products that are similar to yours, and if you’re the product (say, if you’re an editor or graphic designer), research average salaries to land on the right rate to charge.

5. Never taking a break

It can be so easy to assume that you don’t need to take time off when you’re getting your business off the ground because that should be your main focus. A new business venture will indeed take up a lot of your time and energy, but it’s important not to neglect yourself in the process.

Never taking time off work will cost you good health, happy relationships, and more, so make it a point to unplug from your company from time to time. In the beginning, you might not feel comfortable taking a full week off (or even a whole weekend), but try to aim for at least one day a week without work obligations.

I’m sure you’re excited about your new company, which is perfectly natural. But try to avoid these common new entrepreneur mistakes to ensure your best shot at success.

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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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