Money Management

Do you really need all of those beauty products? Read on to see how you might be wasting your money. 

For some people, beauty products like lipstick and foundation are just as essential as expenses like groceries and medication — so much so that they’re willing to cut back on other purchases to buy the items they need to look their best.

Data from Advanced Dermatology finds that the average American spends $722 a year on their appearance. Of that, 71% goes toward hair products, 69% goes toward skin care products, and 41% goes toward makeup.

But while you may feel compelled to own some beauty products, that doesn’t mean you have to rack up a giant credit card tab every few months when buying them. A big reason some people might overspend on beauty products is that the folks who market these items are very good at their jobs. And so it’s important to cut through some of those lies and shop more judiciously.

Here are some of the biggest lies you shouldn’t believe.

1. You need the most expensive products

You’ll often hear that it’s worth paying extra for expensive beauty products because these are items you’re putting on your face and body, and you can’t afford to compromise. But the reality is that there are plenty of lower or moderately priced products that do just as good a job as their far more expensive counterparts. And if you buy into the myth that you need to purchase the highest-end version of each item you use, you might end up spending a fortune.

Before you load up on expensive products, do some research. Talk to your dermatologist, if you have one, about lower-cost skin and beauty products that get the job done. Also, talk to friends and read online reviews so you don’t end up wasting your money.

2. You need every single product out there

Heading out for a night on the town? Beauty product marketers might lead you to believe that you need eye shadow, mascara, primer, and eyeliner to pull off a dazzling look. In reality, just one or two of those products might suffice.

This is just one example, but the point is that there are dozens of different beauty products you could fill your bathroom with. That doesn’t mean you need every single one.

3. You need to replace your products often

Some beauty products do indeed have a limited shelf life. Mascara, for example, is something you should generally expect to replace about every three months since the product will clump and degrade beyond that point.

But other items in your collection have the potential to last a lot longer. So don’t assume you need to toss out your lipstick just because you’ve been using it for almost a year. If it goes on smoothly and smells alright, it’s probably OK.

This isn’t to say that your beauty products will last years. But they might have a longer life than you’ve been led to believe. Buying those products less frequently could be a source of savings for you.

It’s perfectly OK to spend some of your money on products that help you feel good about the way you look. But don’t let aggressive marketing tactics drive you to go overboard and spend money you don’t need to part with. Instead, prioritize your purchases and research different brands to strike a good balance.

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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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Plan to do your Black Friday shopping at Costco? Read on for some strategies to employ. 

Black Friday is only a couple of short weeks away. But you may be gearing up to do the bulk of your holiday shopping that day.

If you’re a Costco member, you may have plans to visit your local warehouse club to take advantage of its Black Friday deals. If you’re going that route, use these strategies to eke out even more savings and maximize that shopping trip.

1. Study the deals ahead of time

Shopping on Black Friday can be very overwhelming. There’s lots of pressure to snag the best deals, and stores (Costco included) tend to be very crowded.

That’s why a good plan is to read up on Costco’s Black Friday deals ahead of the big event. Some of those deals are already listed on Costco’s website. See what’s available so you can map out a budget ahead of time.

2. Compare prices at other retailers

There are certain items you’ll find at Costco that you won’t find at other stores. That can make comparison shopping somewhat difficult, since you’re not comparing apples to apples.

But some of the products Costco carries are available elsewhere. So it’s a good idea to make a list of the items you’re thinking of buying on Black Friday to see what prices other retailers are offering. Although Costco is known for its great prices, it doesn’t always have the lowest prices available.

3. Research electronics before buying them

It’s common for retailers to offer special-run electronics on Black Friday of lower quality than what you’ll normally find during the year. Costco may not necessarily employ the practice of offering lower-quality items, as that, frankly, goes against its business model of holding products to the highest of standards. But it still pays to check.

Of course, it may not bother you to purchase a special-run laptop or TV on Black Friday — from Costco or another store — if the price is right. But it’s still a good thing to know what item you’re really getting.

Pay attention to the model numbers you see as you research Black Friday electronics deals at Costco. If you don’t see those same models elsewhere, it’s a sign you’re looking at a special run for that shopping event.

4. Upgrade to the Executive membership if you anticipate spending a lot

Costco’s Executive membership costs twice as much as a basic one — $120 per year versus $60. But the Executive membership offers the benefit of 2% back on Costco purchases. If you’re planning to do a lot of shopping on Black Friday, it could pay to upgrade ahead of the big event. That could result in more cash back in your pocket.

You should also know that Costco’s Executive membership is really risk-free, because if you don’t spend enough money in the year after you get it to make back the cost of your $60 upgrade fee, Costco will let you downgrade to a basic membership and refund you the difference. So it pays to switch your membership before potentially bringing home a massive haul.

You might end up enjoying a world of savings if you shop at Costco on Black Friday. Use these tips to make the day even more rewarding.

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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 positions in Apple. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

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Giving your portfolio an annual check-up is a good idea. Here’s what you should do to ensure it’s ready for the new year. 

The end of the year is a great time to closely examine your investment strategies and decide whether or not they’re working for you. Many people take an assessment of their brokerage account this time of the year because they’ll soon be doing their taxes, but there are other reasons to perform an annual check-up.

For example, maybe your financial situation has changed, you’re nearing retirement, or your risk tolerance has changed. No matter the reason, here are a few moves you should consider making with your brokerage account before 2024.

1. Rebalance your portfolio

Over time, the value of your investments will fluctuate, causing some to be worth far more than others. This is normal, of course, but it can send your portfolio out of balance.

For example, maybe the value of your tech stocks has increased significantly over the past year while some of your energy stocks haven’t done well. If you want to balance the two types of stock sectors, you may want to consider selling some of your tech stocks or buying more energy stocks.

Rebalancing also applies to the types of investments you make, like stocks versus bonds. For example, if you want an asset allocation focused on growth, you want to keep 70% of your money in stocks and 30% in bonds. A quick look at your brokerage account at the end of the year will show you whether you’re still meeting that goal.

2. Reevaluate your investment thesis

This could be a general reevaluation of how you invest your money, reconsidering individual investments, or both.

For example, look back on the performance of your investments over the past year and ask yourself whether your stock purchases are giving you the desired results. Did you take too many risks or not enough? Did you lean too heavily toward one investment idea that kept you from diversifying your investments?

I have one stock I’ve been very patient with, but it hasn’t performed well over the past several years. The company is facing new hurdles that it wasn’t facing when I bought the stock, which has changed my investment thesis for the company.

Take a little time to reflect on the investment decisions you’ve made and why, and make any necessary changes in your brokerage account based on what you’ve learned. I know I will be.

3. Make sure you’re being tax efficient

Lowering your tax requirement shouldn’t be the primary driver of what you do with the money in your brokerage account, but being tax efficient is certainly worth the effort.

For example, you may want to consider how much you contributed to tax-advantaged accounts like a traditional IRA account or Roth IRA this year and decide whether to allocate the same amount in 2024. For 2024, the IRS says you can contribute up to $7,000 in an IRA account or $8,000 if you’re 50 or older and want to make a catch-up contribution.

Both IRA account types have their tax advantages. In general, the Roth IRA allows your contributions to grow tax-free, while contributions to a traditional IRA will enable you to lower your taxable income. Whichever you choose, it’s a good idea to evaluate if the strategy currently works based on your income and how close you are to retirement.

4. Consider talking to a professional

If making changes to a brokerage account is overwhelming, you may want to hire a financial advisor.

About 35% of Americans use a financial advisor, and hiring one could help you better understand what you should be doing with your money based on your age, income, risk tolerance, and retirement expectations. Talking through all your options with a professional could help you decide which direction to go in.

And if you want some help but aren’t ready to hire a human professional, consider using a robo-advisor to help you allocate your investments automatically.

Spending time evaluating your brokerage account doesn’t have to be a difficult task. But it can help you ensure that your investments are on the right track and your retirement goals are met.

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To score the best Costco Black Friday deals, start shopping throughout the month. Find out what else you need to do. 

Costco can be an ideal place to shop for the holiday season if you’re trying to avoid large credit card bills. The warehouse club offers low everyday prices, and Black Friday brings even more discounts that allow you to get great products without draining your bank account.

But if you want to make the most of the Black Friday deals at Costco, there are a few techniques you’ll definitely want to implement. Here’s what they are.

1. Check out the Costco Black Friday ad

The best way to get good deals is to know what’s actually on sale. The good news is, Costco has released its Black Friday ad (and has a dedicated Black Friday section online) so you can check out all of the bargains that are on offer. The deal book is called the Holiday Savings Guide, and it’s been out since October.

When you review the ad, check the price and model number of items that catch your eye. You can search the model number of each item before buying to confirm the deal is actually a good one.

2. Shop early before Black Friday

At Costco, Black Friday is not a one-day event. Special promotional deals started Oct. 30, and sales will continue all month in waves. The first wave of deals runs through Nov. 12. Here’s the schedule for the other three:

Nov. 13–27: Second waveNov. 23: Third wave, with deals only available online since it is Thanksgiving Day and Costco clubs are closed.Nov. 24–27: Fourth wave

Other than on Thanksgiving, each wave of deals comes with bargains available online and in person. So don’t wait until Black Friday to start looking for discounted items.

3. Visit the warehouse club in person

If you want to shop Costco Black Friday deals (either on the big day or during the rest of the holiday event), you’ll typically need to go to the warehouse club in person. The company imposes a surcharge for online purchases, which could cost anywhere from 3% to 38% more, depending on the item.

This added cost helps Costco defray shopping costs, even though the store technically offers “free” shipping. Rather than paying it, visit the store in person to buy your desired items.

4. Make use of the price adjustment policy

If you purchase an item and are disappointed to find out the price drops later, you can take advantage of Costco’s price adjustment policy.

Most purchases can be priced-adjusted within 30 days for members who aren’t resellers. This can be especially beneficial to those who want to grab items early before they’re gone but who don’t want to overpay for an item that ends up seeing a price drop later.

Just be aware there are limitations, including the fact that the online website does not price match in-store prices.

5. Claim your promotional offer if you’re eligible

Finally, Costco is offering a special promotion where if you spend $500, you’ll get a $50 discount on your purchase.

This is valid only on qualifying items and is limited to one use per member. It also must be used on Thanksgiving Day. But if you’ll be taking advantage of Black Friday deals available at that time and are planning to spend that much, there’s no reason not to save $50.

If you follow these tips, your Black Friday shopping at Costco should be a great success. Get started today, as the sales are already underway.

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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Paying for travel over time might seem appealing. But read on to see why it might end up costing you. 

Travel can be pricey at any time of the year. And as we approach the holiday season, we’re likely to see even higher prices for things like airfare and lodging.

Hopper reports that airfare for Thanksgiving is expected to average $268 per ticket this year. That’s actually a 14% drop from last year, but it’s a lot of money nonetheless. Airfare for Christmas, meanwhile, is expected to average $400 per ticket.

If you’re worried about paying for your holiday travel in one fell swoop, that’s understandable. Charging your flight or rental car on a credit card might be a viable option. But if you carry a balance forward, you’ll risk accruing interest on that sum. That’s not ideal at a time when you’re already looking at spending extra money on things like holiday gifts and decorations.

But you may not have to rack up credit card interest when paying for travel over time. Many “buy now, pay later” plans, or BNPL plans, allow you to pay for travel in installments. In many cases, that means avoiding interest charges and fees.

But if you’re going to sign up for one of these plans, you’ll need to be careful. Falling behind on payments could have serious consequences.

Don’t fall into a dangerous trap

BNPL plans might seem like a good thing at first. After all, you get the leeway to spread your payments out over a period without incurring extra costs. But that assumes you’re able to stick to your payment plan. If you fall behind, interest and fees could apply.

And that’s not all. Just as failing to make your credit card payments when you’re supposed to can result in credit score damage, so, too, can defaulting on BNPL plan payments. So if you’re gearing up to apply for a big personal loan in 2024, using a BNPL agreement to pay for holiday travel and then falling behind on your payments could easily wreck those plans.

Read the fine print of BNPL plans

It’s easy to see why a BNPL plan may be a more appealing way to pay for travel than a credit card. But do know that there are consequences to falling behind. Before you sign up for one of these plans, read the terms and conditions carefully so you know what you’re getting into.

You may also want to consider choosing a credit card over a BNPL plan if you’re confident in your ability to pay off your travel quickly. With a BNPL plan, you won’t rack up rewards or cash back for your purchases, whereas with a credit card, there’s the potential to get rewarded financially for the costs you incur to book a flight, rental car, or hotel room.

To be clear, though, whether you’re using a BNPL plan or a credit card to pay for your holiday travel, you should really only move forward if you’re confident in your ability to pay right away. If not, you may want to skip that travel this year, or encourage your family to come to you instead if their financial situations lend to that.

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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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Watching mortgage rates soar has been painful for many Americans. However, these three factors could be the key to cooling them back down. 

Watching interest rates rise from 3% to over 8% in a relatively short period has been enough to give anyone whiplash. And it may have been particularly difficult if it happened just as you prepared to buy a home or new car. It’s possible to intellectually accept that the Federal Reserve raises interest rates to combat inflation, but that does not mean you have to like it.

During the pandemic, the world felt wonky. However, the influences that led to higher mortgage rates were, at their core, the same factors that have always driven rate hikes. Here’s what they were and what it will take to stall and reverse them.

1. Inflation cools

There are a couple of basic reasons interest rates increase when inflation is on the rise. The first is that higher interest rates are one important way the Federal Reserve can slow the economy and cool inflation. The other has to do with mortgage lenders needing to earn a higher rate of return to ensure they don’t lose out on purchasing power due to inflation.

As inflation heats up, businesses — including your mortgage lender — look for ways to remain competitive. If they’re going to pay more for rent, supplies, and the other costs associated with doing business, they must find the money from somewhere. By raising the mortgage rate on their loans, lenders can hedge against losses due to inflation.

Stall No. 1: As inflation cools, lenders have fewer concerns about what it’s costing them to do business and can begin to cautiously lower their rates on mortgage loans alongside the Federal Reserve cutting rates.

2. Unemployment rises

At 3.9%, the unemployment rate remains low. While that’s great for employed families, low unemployment means consumers have more money to spend on goods and services, including new homes. The more people who can afford to buy a home, the more vital it is that inventory keeps pace. When that’s not the case, anxious buyers begin paying too much just to get in a house. In what becomes a vicious circle, overpaying leads to inflation, and inflation leads the Federal Reserve to raise interest rates.

Stall No. 2: As the economy weakens, companies lay off more employees. Once the unemployment rate begins to climb, the Federal Reserve makes it easier to borrow money by lowering interest rates.

Bonus: As interest rates drop, more current homeowners may be more willing to sell their properties and take out a new mortgage for another house. Once enough homes come back on the market and inventory begins to approach pre-pandemic levels, home prices should cool.

3. People begin to squirrel away more money

The U.S. is currently enjoying a strong economic period. During these times, governments, businesses, and households each have the urge to spend — often more than they bring in. This desire leads to higher interest rates as lenders know they can cash in on the desire for loans.

Stall No. 3: As economic conditions weaken, fewer people are willing to borrow money. Instead of spending, people begin to stow their money somewhere secure, like savings accounts and certificates of deposit (CDs). Slowly, lenders realize they have more funds to loan than consumers willing to borrow, and interest rates drop.

We can’t say for sure when rates will stall and then begin to fall. However, we can say that there’s nothing about today’s economy to suggest that rates will always be high. Historically, mortgage rates have gone up, and they’ve come back down. It’s a matter of deciding how patient we can be as it all plays out.

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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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