Money Management

Saving 5% of your earnings year after year could go a really long way. Read on to learn more. 

It’s important to save for retirement so you have some income during your golden years on top of whatever benefits you collect from Social Security. But it’s not always so easy to find money for your IRA or 401(k). After all, you might have a mortgage loan to pay for many years or childcare costs to keep up with. And unless you earn a bundle of money, finding any funds for retirement savings might be a tall order.

Now, you’ll often hear that you should aim to save 15% to 20% of your income — or more — for retirement. That may be doable if you’re bringing in $200,000 a year. But what if you earn more of an average wage?

Median weekly earnings for U.S. workers were $1,118 during the third quarter of 2023, according to the Bureau of Labor Statistics. That’s about $58,000 a year, assuming 52 weeks or work.

In that case, saving 15% of your income would mean parting with $8,700 annually, or $725 a month. That’s probably not doable.

But what if you were to save 5% of your income for retirement? On a $58,000 wage, that’s a monthly IRA or 401(k) contribution of $242. And it might go a really long way toward helping you retire with a lot of money.

The right investments and savings window make all the difference

You might be quick to assume that saving $242 a month for retirement, or 5% of a typical wage, won’t yield very impressive results in the context of building a nest egg. But actually, you’d be surprised at how much wealth you can accumulate over time.

Let’s imagine you’re able to save $242 a month between the ages of 24 and 67. That’s a 43-year savings window. Let’s also assume that your portfolio is loaded with stocks and that it gives you an average annual 10% return. That’s consistent with the stock market’s average return over the past 50 years, so it’s a fairly reasonable assumption.

In that case, you’ll be looking at a portfolio worth about $1.7 million by the time your retirement rolls around. Really. And a big reason is that you’ll get to benefit from many years of compounded returns.

But what if you don’t manage to start saving $242 a month at age 24? Maybe you can’t do that until age 44. In that case, you’re narrowing your investment window to 23 years. But assuming that same 10% return, you’ll be looking at $231,000.

Clearly, that’s a far cry from $1.7 million. But seeing as how the average 60-something has a retirement plan balance of $112,500, according to Northwestern Mutual, it still puts you way ahead of the game.

It’s okay to do the best you can

If you’re able to set aside 15% to 20% of your income per year or more for retirement, then the more power to you. It’s great to be able to do that, and hopefully your efforts will result in the retirement you’ve always dreamed of.

But if you’re not able to save at that level, don’t sweat it. As you can see, you have an opportunity to build plenty of wealth if you save and invest consistently over a long period of time — even if you never manage to sock away more than 5% of your paycheck.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More 

It can be expensive to feed a larger family. Read on for tips to save on your grocery bill. 

As of 2021, the average U.S. household size was 2.6 people, according to Census Bureau data. But if you’re a family of two adults and one child, you’re already beyond the average. And if you have a larger family — say, three kids or more — then you may be well aware that feeding your household can eat up a lot of your income.

In September, grocery costs were up 2.4% from a year prior, according to the Consumer Price Index. So if you have a larger grocery tab to begin with due to your household size, you may, at this point, be eager to find ways to free up some cash to add to your savings account. Here are some tactics you can use.

1. Buy in bulk — but only when it makes sense

Warehouse club stores like Costco and Sam’s Club give members access to grocery items in bulk. And even if you don’t have a warehouse club membership, you can often find bulk food items at supermarkets and big-box retailers like Target and Walmart.

Buying in bulk will often mean paying less on a per-item or per-ounce basis. So it’s something that easily makes sense for items your family consumes mass quantities of.

But do note that caveat. One thing you don’t want to do is buy items in bulk that you only eat sparingly at home, especially if those items are perishable. You might end up throwing some of your stash away, which could mean wasting money rather than saving it.

A good bet is to make a list of the items your family tends to eat the most and go through most quickly. Maybe that’s a certain cereal or items like cheese and bread. From there, you can look at your options for bulk purchases and load up on items you’re unlikely to let go to waste.

2. Look to discount grocers

Discount grocery stores like Aldi can be a big source of savings when you’re trying to feed a larger family. But that strategy may not work so well if you have a household of pickier eaters who refuse to go off-brand.

A big reason discount grocers can offer such competitive prices is that they stock lesser-known brands that don’t spend as much money on advertising as the brands most households know. Since those little-known brands cost less, those savings can be passed along to consumers.

So if your kids love granola bars but don’t really care what the packaging looks like, then it pays to see what prices stores like Aldi have. But if you know that your kids just plain aren’t going to eat a product they don’t recognize, then you might as well save your money.

3. Subscribe to snacks and pantry staples on Amazon

Amazon’s Subscribe & Save program lets you sign up to have products shipped to your door automatically at different intervals. It can be monthly, every other month, and so forth — your choice.

The upside of this program is that on top of Amazon’s already competitive prices, you can save up to 15% when you’re signed up for five or more products in one auto-delivery. So if there are snack or pantry items your family uses regularly, it pays to see what price you can snag with this program. Not only might you save money, but you’ll save yourself the hassle of having to remember to restock.

Feeding a larger family is no easy feat at a time when grocery costs are still up. And even when they aren’t elevated, it’s still a tall order. But these tips could help you shave some money off of your grocery bills, so you have more financial leeway to cover the many other costs associated with having a big household.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

 Read More 

Costco has a great variety of frozen food. Here are some of the best items to keep in your freezer in case you need a quick meal or snack. 

With grocery prices through the roof, your credit cards have probably been getting a workout. But you can do your bank account a favor by stocking up on some Costco frozen food items.

Here are some top picks that deserve a place in your freezer. These items are delicious and can form the basis for quick, affordable meals on nights you don’t really feel like cooking. They’re so good, that they could even prompt you to stay home instead of eating out, thus sparing you a restaurant bill.

1. Just Bare Lightly Breaded Chicken Breast Chunks

You can score four pounds of frozen chicken breast chunks for just $20.19 delivered (and even less in store) if you pick up the Just Bare Lightly Breaded Chicken Breast Chunks from Costco.

These delightful chicken treats come in a resealable bag and are fully cooked, so it’s just a simple matter of reheating them to get dinner on the plate. There are no antibiotics, no added hormones, and no steroids to worry about, and Costco’s price on them is below what many competitors charge, even if you’re paying the higher online price and having them delivered.

The breast chunks are a great alternative to chicken nuggets for your kids (or for you), but adults will love them as well. Serve them by themselves or in a salad for a simple and delicious meal.

2. Flav-R-Pac Cut Green Beans

Priced at just $8.09 for a five-pound bag, this Flav-R-Pac of cut green beans gives you the perfect base for a side dish or can be used as a yummy salad topper. Just $1.62 per pound is a great price for a healthy and nutritious product, and you can serve them along with Costco’s famous rotisserie chicken to have a complete meal on the cheap that actually has some health benefits as a bonus.

3. Kirkland Signature Ground Beef Patties

A classic hamburger is a great lunch or dinner, especially if you can just toss it on the grill or in a frying pan and have it ready within minutes. Whether you’re camping, tailgating, throwing a BBQ, or just want a fast and meaty meal at home, the Kirkland Signature Ground Beef patties waiting in your freezer will be there for you.

The online price-per-pound with delivery is only $5.10 and costs are lower in store, so these are a pretty good deal compared to what competitors charge for similar products. They’re also best if cooked directly from frozen so you don’t even have to plan ahead.

4. Otis Spunkmeyer Chocolate Chunk Cookie Dough, 6 lbs

This product is six pounds of cookie dough for $16.99 delivered. I shouldn’t even have to say anything more to convince you to buy it. But just in case you aren’t clearing freezer space right now, consider the fact that the cookie dough chunks are pre-portioned and don’t have to be thawed before baking. So you can just grab a few out of the freezer whenever you feel the urge for a cookie, bake them, and they’ll be ready in minutes.

Each of these Costco items is a great buy, and a delicious treat that you’ll want to have ready and waiting in case you need a meal or snack. Pick them up on your next Costco trip so you’ll have food at home the next time your kids (or you) are tempted to splurge on a restaurant meal just because you don’t feel like making something from scratch. Your wallet will thank you.

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.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.

 Read More 

Credit card debt can be a slippery slope. Take a look at three things you can try to get out of it. 

No one loves having debt, but credit card debt can be particularly tough to deal with. Interest rates are high, even for those with good credit, and once you fall into that cycle, it can be tough to get out again.

If you have credit card debt, you should know you’re not alone. More than 45% of families have some, according to the Federal Reserve’s latest Survey of Consumer Finances, with a median balance of $2,700. But there are steps you can take to get yourself out of debt. Here are three ideas to get you started

1. Try the debt avalanche method

The debt avalanche method is a strategy that involves paying the minimum balance on all your credit cards each month and then putting any extra cash you have toward the card with the highest interest rate. Once that’s paid off, you move to the card with the next-highest interest rate, and so on until you’re debt-free.

This approach doesn’t require you to apply for new loans or credit cards, and it minimizes how much you pay in interest over time. But it might be challenging for those without much extra cash each month.

It might also be difficult to feel like you’re making progress with this approach, especially if you have large balances on your cards. In that case, the debt snowball method might work better. It’s almost identical to the debt avalanche method, except you pay off the card with the smallest balance first before moving onto the card with the next-smallest balance. The idea here is that you’ll be able to see the progress you’re making more easily, though you may pay more in interest overall this way.

2. Open a balance transfer card

A balance transfer credit card has a 0% introductory annual percentage rate (APR) for anywhere from a few months to a year or more. During this time, your balance won’t accumulate interest, so your payments go toward reducing your principal balance. This can get you out of debt more quickly than using a credit card with no 0% introductory APR.

But there are a few things to keep in mind. First, you must open a balance transfer card with an issuer you don’t already work with. If you already owe a card issuer, it has no incentive to give you a 0% APR period. Also, there’s usually a fee associated with balance transfers that could increase the amount you owe slightly.

You also have to consider what the card’s standard APR is if you don’t think you’ll be able to pay back the full balance before the introductory APR period is up. Once this ends, any remaining balance will accrue interest at this standard rate.

3. Take out a personal loan

A personal loan gives you a predictable monthly payment, which eliminates concerns about your balance ballooning over time due to interest charges. As long as you make your payments, you won’t have to worry about your debt growing over time. You also don’t need collateral for these types of loans, and it’s often possible to get them even if your credit isn’t great.

But they still have above-average interest rates, particularly for those with fair or poor credit. And the monthly payments are probably going to be a lot higher than the minimum monthly payments on your credit cards.

You could also try a combination of these approaches. For example, you might use a balance transfer card until the 0% APR period is over and then take out a personal loan for the remaining balance. Think about which strategy you’re most comfortable with and then give it a shot. If you find it’s not working out for you, you can always try one of the other options mentioned here.

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.Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Avalanche. The Motley Fool has a disclosure policy.

 Read More 

ALDI is offering some awesome deals for the Thanksgiving season. Take a look at what you can expect to save on at this discount grocer. 

In the 2022 Thanksgiving season, the discount grocer ALDI offered great deals on festive items. Recognizing that many Americans had taken a big hit to their bank accounts due to inflation, ALDI ran a “Thanksgiving rewind” promotion, which rolled back prices on appetizers, sides, beverages, and deserts to pre-pandemic prices. This resulted in items being sold for around 30% off current prices, which was a big benefit to those whose personal finances had taken a hit.

This year, ALDI will again be offering some special deals on items you may need for the holiday season. In fact, you’re likely to see savings on everything from pumpkin pie mix to baking staples as the retailer announced discounts of up to 50% off on a variety of different products people tend to buy at this time of year.

If you’re looking for some bargains to help you avoid busting your budget as you get ready to celebrate, check out some of the best Thanksgiving deals ALDI has on offer.

1. Turkey

Turkey is the ultimate Thanksgiving staple, and ALDI is offering a good price on it. When you get your bird from the German grocer, you’ll pay $1.27 per pound. This is for a whole frozen turkey, which is regularly priced at $1.59 at ALDI.

The turkeys on offer are Butterball, which is a household name, and you’re subject to a limit of two. If you have a ton of people to feed, you may want to bring a friend with you to buy any turkeys beyond that number.

2. Pumpkin pie mix

If you want a quick and easy dessert that’s a Thanksgiving classic, Baker’s Corner Pumpkin Pie Mix is also on sale from ALDI. It’s marked down to $1.89 from $2.69, and you have a limit of 12 cans for this item, which is really more pumpkin pie than the average person is realistically going to require.

This 30-ounce can of pie filling is priced well below what competitors charge for similar offerings (a can of Libby’s Pumpkin Pie Mix, for example, would cost you $4.49 from Target). And all you have to do is add eggs and the crust and you’ll have a perfect dessert to finish off your Thanksgiving meal.

3. Vanilla extract

Pure vanilla extract can be shockingly expensive, but it’s a baking essential, so you may need it for Thanksgiving desserts as well as for upcoming Christmas cookie baking (which you’ll have to start working on sooner than you might think).

ALDI has you covered if you can’t afford to spend a fortune to get your vanilla. You can get two ounces of StoneMill pure vanilla extract made with Madagascar vanilla beans for only $3.49 (the regular price is $4.79).

Each of these three items can help you spend less on getting ready for Thanksgiving while ensuring you’re still able to make all the delicious treats you want.

ALDI will also be rolling out its price reductions on holiday staples throughout the festive season with discounts available to customers through the end of 2023. So be sure to check out the company’s online sale flyers or stop in the store and see what the grocer has to offer if you haven’t visited yet. You may be surprised to discover a great selection of Thanksgiving necessities at unbeatable prices.

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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

 Read More