Money Management

Airline and hotel loyalty programs offer more benefits if you reach their elite status tiers. Find out if it’s worth doing extra to get elite status. 

Many of the major airlines and hotels offer loyalty programs. Not only can you earn points through these programs, but if you travel enough, you could even score a shiny new status for yourself. You could become a silver member, or a gold member, or a platinum member…you get the drift.

These elite status tiers include complimentary benefits, so they can be valuable for frequent travelers. They may entitle you to free upgrades, waived fees, bonus points on bookings, and much more.

Perks like these are nice to have, and some travelers go all out chasing elite status. The most extreme examples are mileage runs and mattress runs. A mileage run is a flight taken only to earn points toward elite status with an airline. The traveler may even turn around and go home right away. A mattress run is a hotel stay booked for the same reason. The person who booked it might simply check in with the hotel’s app, and never even use the room.

If you travel regularly, you may be wondering just how worthwhile it is to chase elite status. Here’s what you should know before you try it.

Elite status is valuable, but not that valuable

When I first heard about mileage and mattress runs, I thought they were an absolutely ridiculous idea. After having some time to think about it, I still feel that way.

For starters, it’s wasteful. You’re booking a seat or a room that someone else who actually needs it could use. And none of the benefits of elite status are so valuable that it’s worth going out of your way for it. See for yourself. Pull up the loyalty programs for any airlines and hotels you like. Check out the benefits each elite status tier offers. Also, look at the requirements to reach those tiers, so you know how much work or spending on your credit cards would be involved.

Some of the benefits are useful, such as free hotel breakfasts and waived baggage fees with airlines. However, the most valuable benefits are largely of the “when available” variety. Free upgrades, when available. Early check-in and late checkout, when available. Even with elite status, the best perks aren’t guaranteed.

Here are the other problems with chasing elite status:

You only benefit from it when you book with that airline or hotel. To get the most value from elite status, you need to use it regularly.That airline or hotel might not be an option on all your trips. If you have status with Marriott Bonvoy, but the best hotel option where you’re going is a Hilton, then your status isn’t useful.Loyalty program rules and benefits can change at any time. In a recent example, Delta made changes to its SkyMiles program that were so unpopular with members that it decided to walk some of them back.

A better way to get elite status

If you travel often, and there’s an airline or hotel chain you like, then it could be worth booking with it whenever possible. Elite status isn’t worth chasing, but if you can get it naturally as part of your lifestyle, then that’s a different story.

Travel credit cards are another option to consider to speed up the process. Many airline credit cards allow you to earn points based on your spending that can qualify you for elite status. Hotel credit cards have the same type of benefit, and some of them also include complimentary elite status. So, if you book regularly with a specific airline or hotel, look into its credit card options.

Don’t overcomplicate things

Chasing elite status takes time, effort, and money. It’s the perfect example of how some people overcomplicate their lives for very little benefit.

Because compared to the cost and hard work that goes into getting elite status, you probably won’t come out that far ahead, if at all. You might score the occasional free upgrade. But if you save up and don’t spend money on mileage or mattress runs, you may have enough to fly business class or book a nicer hotel room outright.

You can have a fun time traveling with or without elite status. Most of the benefits are also available to anyone who doesn’t mind spending the cash or credit card points. It’s often best to keep it simple, and that applies here. There are much better ways to spend your time than chasing status with an airline or hotel.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy.

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You may not think of shopping at places like CVS on Black Friday, but they can offer great deals on more products than you’d imagine. Find out more here. 

When you think of Black Friday, you probably think of consumers at big box stores lining up with their credit cards to be the first to run in and snag one of a limited number of big TVs or fancy gaming systems. And you can certainly find that, with most of the stores you’d expect offering deals on fancy electronics that are pretty checking account–friendly.

But these aren’t the only places worth shopping at on Black Friday. In fact, some stores you might not expect can also have some pretty great offers. Here are a few underrated stops you might want to add to your to-do list on Black Friday.

1. CVS

CVS is more than just a place to pick up your prescriptions. The drug store has an entire Black Friday ad all of its own. And it offers a lot of products at great prices that might make wonderful gifts or help you make your home more festive. Some deals you could pick up include:

40% off children’s toys and books, including an Elsa doll, a 20-piece truck set with a playmat, and a classic Peanuts bookA $6 ExtraBucks reward if you buy two Covergirl cosmetics productsStarbucks and Maxwell House K-Cups for $6.99

There are also obviously many bargains on things you’d expect to find at a drugstore, like arthritis cream, vitamins, and laundry detergent. But you can stop there to pick up these essentials and get the fun stuff as an added bonus.

2. Walgreens

Not to be outdone, Walgreens also has some great Black Friday deals to check out, including:

$9.99 Totes Footwear50% off Russell Stover or Whitman’s boxed chocolates25% off designer fragrance sets

And again, some typical drugstore stuff is on sale as well, including a buy-one-get-one-50%-off deal for all Walgreens-brand health products.

3. AutoZone

AutoZone may not be a place you think of when it comes to Black Friday deals (unless you’re a much bigger car enthusiast than I am). But the store does offer some great bargains that can help you get your car in great shape for the winter. Top bargains include:

Two for $10 bottles of windshield washer fluidA $6 brake bundle, including brake cleaner, lubricant, and brake fluid$15 in AutoZone bonus rewards if you buy two Bosch Envision Wiper Blades

4. Michaels

Michaels not only offers great bargains on craft products, but also special prices on everything you’ll need to turn your home into the most decorated one on the block (even if you live next to the Griswolds). Special Black Friday deals include:

$230 off two different 7-foot pre-lit Christmas trees70% off all Christmas ribbons, mesh, and bows60% off Christmas wreath supplies and garland

Remember, while these stores are offering some good bargains, you do want to compare prices on everything you buy to make sure it’s really a sale. A quick online search can usually tell you what the regular price is, so you can assess how much you’re actually saving.

And even if a deal is great, if you can’t afford it, pass it up. The debt and the financial stress that comes with overbuying is the surest way to end up with regrets instead of fond holiday memories.

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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.Christy Bieber 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.

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Driving for ride-hailing services is a popular side hustle. Keep reading for a few factors to consider before taking on this gig. 

Driving for ride-hailing services is a really popular side hustle. And it can be a lucrative one. In fact, the Rideshare Guy indicates that Uber drivers typically make around $15 to $25 per hour.

However, before jumping into driving, it’s important to consider a few key financial factors to determine just how much money is actually likely to end up in your checking account if you try out this gig. Here are four of the biggest ones.

1. The increased cost of auto insurance

A standard auto insurance policy will typically not provide coverage while driving for Uber or Lyft, because it’s considered commercial use of a vehicle. And while Uber and Lyft provide some secondary insurance coverage, drivers are expected to maintain their own policies.

Unfortunately, adding a ride-hailing endorsement to an auto policy comes at an average cost of $94 per year. It’s important to factor in this added expense.

Furthermore, the more often a person drives, the greater the chances of a crash happening just due to pure chance. Simply put, if you spend 40 hours on the road a week as opposed to 10, there’s just more time for something to go wrong. And having an accident can substantially increase auto insurance premiums for years, so this potential risk has to be taken into account.

2. The added cost of wear and tear on a vehicle

Driving a car more naturally means that there’s more wear and tear. The tires and brakes will need to be replaced more often, and the oil will need to be changed more frequently. Putting more miles on a car also increases the rate at which it loses value.

And you’ll likely need to buy a car sooner than you otherwise would since you’re putting so many miles on your vehicle (and since Uber and Lyft both impose rules for how old a car can be to be used to drive passengers).

If you have to buy a new car a few years sooner, and incur added maintenance and repair costs each year, this can really add up, so be sure to consider these expenses. To figure them out, consider how many extra miles you’re driving each year and how that affects your repair and maintenance needs.

For example, if you need to get your oil changed every 5,000 miles and you put an extra 10,000 miles on your car a year due to driving for Uber or Lyft, you’d need to factor in the price of two extra annual oil changes.

3. Extra fuel costs

If you are driving more, it stands to reason that you’ll go through more gasoline. This one is an easy one to calculate.

Pay attention to how many miles you drive and what your gas mileage is.Once you see how many extra gallons of gas you’re using via this approach, multiply that number by the price of a gallon of gas

4. Self-employed taxes

Finally, there’s one more thing you may not think about — added taxes. When you drive for Uber or Lyft, you are an independent contractor and not an employee. You will get a 1099 form and you will have to pay your own small business taxes.

Beyond budgeting for this additional expense, you also need to realize this means you’re personally going to pay more Social Security and Medicare taxes. Your employer usually covers half of these taxes when you are a traditional worker (called a W-2 employee). But as a 1099 contractor, you must pay both your half and the employer’s half so taxes will cost you an extra 7.65%.

These extra costs are very important to think about before you decide if driving a ride-hailing vehicle makes good sense for you. Be sure to do the math before you dive in.

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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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Some people wait until Black Friday to tackle their holiday shopping. Read on to see why this writer is taking a different approach. 

A lot of people I know are excited to shop on Black Friday this year. And if you’ve been saving for the big event, you might feel similarly.

I, on the other hand, intend to do a lot of my holiday shopping before Black Friday this year. And I’m not the only one. Late October data by Sitecore found that 28% of consumers got an early start to their holiday shopping this year.

Here’s why shopping before Black Friday is the right approach for me — and why it may be the right one for you, too.

1. I’m convinced there will be equally good deals the week before the big event

Retailers tend to do a good job of talking up Black Friday, so many consumers are wired to believe that Black Friday is really when the best deals of the year will hit. I’m not going to argue the fact that Black Friday is likely to be loaded with sales. But I’m also fairly confident in saying that there are plenty of good deals to be had in the days leading up to Black Friday.

Costco, for example, has already released a host of pre–Black Friday deals that are available online and in warehouse club stores. Since I have a membership, I plan to stop in and see what gifts I can scoop up in the coming week.

2. Shopping early makes it less likely that the items on my list will sell out

This year, my holiday shopping list is very gift-focused. I don’t have items I’m looking to buy for myself in conjunction with my holiday shopping. This means that I really need to get my purchases made in short order since there’s a deadline to consider.

I’m worried that if I wait until Black Friday to do my shopping, the things on my list (or at least some of them) will sell out. And the last thing I want is to disappoint my kids because I waited too long to look for the things they want.

3. I like to spend Black Friday with family — not shopping

My husband and I both work long hours. Between that and my kids’ school and sports schedules, it’s pretty rare to get a day where we have an opportunity to stay home, relax, and spend time together.

I’d much rather do that than go to the mall on Black Friday and battle crowds. And while I know that there are plenty of Black Friday deals to be had online, I’d still rather spend the day with family than sit at my laptop comparing prices on toys and apparel.

I know a lot of people are looking forward to Black Friday and are gearing up to charge up a storm on their credit cards that day. But clearly, there are benefits to tackling your holiday shopping before the big event. So consider hitting the stores this week (perhaps while they’re less crowded) or looking online for the big-ticket items on your list. If anything, it might reduce your stress and help you enjoy the upcoming holiday weekend even more.

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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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