Money Management

Ready for Christmas shopping? Read on to see why Costco may be a great source for gifts, decor, and more. 

The holidays will be here in short order, so if you haven’t begun the process of shopping for them, you may want to get started soon. Wait too long, and you might find yourself in a pretty stressful situation.

You have plenty of options when it comes to Christmas shopping. If you’re someone who doesn’t like crowded stores or malls, you could do the bulk of your shopping on Amazon and potentially enjoy extra cash to put in your savings account.

But another great source of savings could be your local Costco — or Costco.com if you’d rather shop from the comfort of home. Costco is known for its competitive prices on everything from food to gift items to decor.

But that’s not the only reason to do your Christmas shopping at Costco. Here are a few other reasons why Costco might be the best place to stock up on everything you need to celebrate the holidays to the fullest.

1. You can score loads of deals early on

Many people don’t really dive into Christmas shopping until mid- or late November. But if you’re someone who wants to get started early, you’re in luck.

Costco has already released a host of holiday deals. Right now, you can save big on holiday candy, housewares, jewelry, decorations, and more. There’s no need to wait until Black Friday rolls around if you’d rather start tackling the mammoth task of preparing for the holidays now.

2. You get a longer warranty on electronics

When you buy electronics at Costco, you get the benefit of a free second-year warranty. That can help you shop with more confidence, especially for items you may be stretching your budget to purchase.

In addition to extended warranties, Costco also offers free technical support for electronics. So if you buy your spouse a new laptop or TV and they find themselves struggling to get it set up, you won’t have to feel bad about putting them in a stressful situation.

3. You’ll have an easy time making returns

Costco has a very generous return policy that could take some of the pressure off when it comes to buying holiday gifts. Most items purchased at Costco can be brought back at any time for a full refund as long as they’re in suitable condition. Costco will also accept used items that are defective.

You also get 90 days to return electronics to Costco, which means that if you’re buying items in early November with the intent to hand them over to loved ones in late December, you/they still have plenty of time to take them back if they’re not a good fit.

Plenty of retailers will gladly take your money during the holiday season. But shopping at Costco might not only save you money, but also, stress and aggravation. Plus, if you have an Executive membership at Costco, your holiday purchases could set you up with 2% cash back. And that’s a great way to offset the enormous expense of the holidays.

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

 Read More 

Not having the right home insurance could be a costly mistake. Don’t fall victim to these four misconceptions about homeowners insurance. 

Property owners need to be sure they have the right homeowners insurance in place. Unfortunately, not having sufficient coverage could be devastating to their savings account balances — and many people don’t realize they aren’t fully protected.

One big reason why people make mistakes with their insurance is because they buy into myths. This could have devastating financial consequences, so every property owner should be sure they aren’t operating under these four misconceptions.

1. Workers who come to your home are always covered

Most property owners hire someone to do work on their place at some point. And, when they do, they put themselves at potential risk if something happens to the visiting worker.

Sadly, some homeowners believe that a worker’s own insurer would always cover their damages. And, indeed, this can be the case in certain circumstances. For example, if a homeowner hires a licensed carpenter to do some home upgrades, that contractor should have insurance in place — and their insurance should cover them if they’re harmed. A homeowner will want to check that, though, to be sure they aren’t hiring someone without the right protections.

Homeowners are not only responsible for injuries to uninsured professionals, but they can also be responsible for losses even insured professionals experience if those losses occur due to some defect in the property or equipment — such as a faulty ladder the owner offers to the contractor.

Plenty of other workers may also not be insured, ranging from babysitters to a teenager who mows the lawn. It’s very important to be sure that every homeowner has sufficient liability coverage in place to pay for any damages that these visiting workers may experience. Typically, it’s a good idea to buy a minimum of $300,000 to $500,000 in liability coverage, but homeowners with substantial assets that would be at risk in a lawsuit may want to buy more protection.

2. Mold is always covered by homeowners insurance

Dealing with a mold problem could cost an average of $3,500. Unfortunately, home insurance rarely covers mold-related issues. If the mold was directly caused by a covered peril such as a pipe bursting, then it could be paid for.

But if it happened due to deferred maintenance over time, such as occurring because a toilet was leaking under the floor, then home insurance would provide no help at all to pay the bills. It’s important to be aware that mold — and other maintenance issues — won’t be paid for, so homeowners should maintain a special savings account dedicated to dealing with these kinds of problems if they arise.

3. A lender will make sure coverage is sufficient

Some homeowners also believe that their mortgage lender will require the coverage they need. This isn’t the case, though. Lenders do require homeowners to have a certain minimum amount of dwelling coverage (usually, enough to rebuild the home in the event of damage). But lenders don’t care how much, if any, personal property protection or liability coverage a property owner has since lenders only focus on protecting their own financial interest in the house.

Property owners will need to decide for themselves how much coverage they need, taking into account the value of their personal property and the risk to their assets if they are sued.

4. Water and flood damage are treated the same

Finally, some homeowners don’t realize only certain kinds of water damage are covered. For example, if a home floods because of a burst pipe or broken refrigerator water line, home insurance will cover that. But standard home insurance policies always exclude flood damage resulting from acts of nature.

Any homeowner who wants to be protected in case their home floods due to weather should make sure to put a separate flood insurance policy in place.

Understanding the truth about these four myths could help homeowners avoid unexpected financial disasters. With this knowledge, every property owner can make sure to get the coverage they need from one of the best home insurers before something goes wrong.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

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 

The U.S. real estate market sorely lacks inventory. Read on to see if that’s likely to change in the new year. 

There’s a reason 2023 has been such a tough year to buy a home. In addition to expensive home prices, buyers have had to deal with a glaring lack of inventory.

As of late September, there was only a 3.4-month supply of available homes on the U.S. real estate market, according to the National Association of Realtors. That’s well below the four- to six-month supply that’s often needed to meet buyer demand in full.

If you’ve been struggling to find a home in 2023, you may be wondering if housing inventory is likely to pick up in 2024. And the answer? It’ll depend heavily on how expensive it is to sign a mortgage loan.

Borrowing rates are keeping people put

A big reason there aren’t a lot of homes on the market is that mortgage rates are sky-high these days. As of late October, the average 30-year mortgage rate was a whopping 7.79%, according to Freddie Mac.

By comparison, just a few years ago, mortgage lenders were offering up 30-year loans at around 3%. During that time, many people rushed to sign purchase mortgages. And existing homeowners rushed to refinance their existing loans.

But because it’s gotten so expensive to sign a mortgage, pretty much nobody with a competitive mortgage rate wants to move. And that makes sense. Would you want to trade in a 30-year mortgage at 3% for a new loan at almost 8%? Probably not.

So all told, it’ll probably take a pretty big drop in mortgage rates to help housing inventory pick up. And it’s not looking likely that mortgage rates will plummet in early 2024.

As the year progresses, they may come down. But unless that happens to a notable degree, real estate inventory is likely to remain stagnant.

How to cope with a low housing inventory

We unfortunately may not see a big uptick in property listings in 2024. But that doesn’t mean buying a home won’t be possible for you in the new year.

One way to get around the issue of limited inventory is to narrow down your wish list and focus on homes that satisfy your core requirements. If you can find a home that has the space and square footage you need, you can worry less about factors such as whether the kitchen is updated or the basement is finished. Those are projects you can tackle in the future as time and money allow for.

Also, you may want to expand your search geographically. There may be a specific neighborhood you want to get into for its local amenities, like parks and shops. But if there are nearby neighborhoods that give you reasonable access to those same amenities — say, a six-minute or eight-minute drive — then it could be worth it to broaden your search parameters.

Finally, put the word out that you’re looking for a home to buy, and don’t just rely on your real estate agent to find available properties in your area. Tell all of your neighbors and friends to tell their friends that they know a seriously interested buyer. You never know when you might get an opportunity to take a look at a home before it hits the market — and potentially beat other buyers to the punch.

At this point, real estate inventory will likely remain low at the start of 2024. Things could improve as the year moves along. But it’s likely going to take a major drop in mortgage rates to open inventory up in a meaningful way. So until that happens, do your best to be flexible in your search, and don’t be shy about putting the word out that you’re in the market to buy.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 

You don’t want a credit card with a foreign transaction fee if you are traveling outside of the United States. Find out why. 

If you’re traveling abroad for the first time, you will probably be using a credit card to book your hotels and to pay for the spending you do when you’re on vacation. That way, you don’t have to worry about bringing a ton of cash that could get stolen or trying to find an ATM in a foreign country. And you don’t have to worry about exchanging U.S. currency for foreign currency.

You don’t want to just go abroad with whatever card is in your wallet, though. You should check to see if your card has this feature first. If it does, consider using a different card instead.

Be sure your card doesn’t charge you this fee before you go abroad

Before you head abroad with your credit card, you need to find out if your card will charge you a foreign transaction fee. You can check the fee schedule provided by your card issuer to determine if you will have to pay a fee, or you can call your credit card company and ask a customer service representative.

Foreign transaction fees are charged by some card issuers if you use your credit card to charge things outside of the United States. These fees typically cost around 1% to 3% on average, although the exact fee amount can vary by card. If you spend $5,000 on your trip including hotels, food, souvenirs, and tours while you’re away, you could get hit with a fee as high as $150.

A foreign transaction fee is a complete waste of money. It makes your trip more expensive without you getting any added benefit. There is no reason why you would want to pay this expense when there are a lot of better things to spend money on during your vacation — like a nice meal out or a special gift for a loved one back home.

How to find a credit card with no foreign transaction fees

If you discover that your credit card has a foreign transaction fee, your best bet is to apply for a new card before you head out on your trip.

READ MORE: Best No Foreign Transaction Fee Credit Cards

You should do this as long as you aren’t going to be making any major purchases that require you to borrow (such as getting a mortgage or a car loan). If you’re making a major purchase, the hit to your credit score from opening a new card might not be worth it just to avoid the fee. But outside of this situation, unless there’s another specific reason not to add a new card to your arsenal, you should find a card issuer that’s not going to charge you just for using it while you are abroad.

Most of the best travel cards don’t charge foreign transaction fees, so check them out to see which is best for you. Not only can you avoid this unnecessary charge, but you may also get a card that offers you other perks, including the chance to earn a new cardmember bonus that could give you some extra cash to enjoy while on vacation.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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 recommends Discover Financial Services. The Motley Fool has a disclosure policy.

 Read More