Money Management

Costco isn’t just low-cost groceries and cleaning supplies. Read on to learn more about three products that are costly but valuable. 

When most of us think of shopping at Costco, we tend to picture bulk cases of our kids’ favorite snacks and massive quantities of paper towels. In fact, a lot of people join Costco for the express purpose of being able to save money on things like groceries and household essentials.

But while Costco certainly offers its fair share of bargains, not every item you’ll find at the store or on Costco.com is inexpensive. Here are three pricier items that Costco sells that may be more than worth the money they cost.

1. The LG 86″ Class — UR8000 Series — 4K UHD LED LCD TV

An 86-inch TV is clearly a big investment. And at a price tag of $949.99 online (note that prices may be cheaper in stores), you’re clearly not spending a small amount of money.

But this LG TV features a clear, crisp picture that’s ideal for sports, movies, or gaming. It’s also compatible with Alexa, Apple AirPlay 2, and Google Assistant.

Plus, when you buy electronics at Costco, you get not only free tech support, but a second-year warranty included. You also get 90 days to return this TV if you buy it, but decide it’s not right for you.

Of course, as is the case with any expensive purchase you’re looking to make, you’ll want to make sure you can afford to pay for this TV outright before buying it. If you charge it on a credit card that you don’t pay off for a year or more, you’ll rack up interest that will make an already pricey item cost even more.

2. The Kirkland Signature Stainless Steel 6 Burner Gas Grill

If you have a grill that’s seen better days, then it could be time for an upgrade. And that’s where this Kirkland model comes in.

It features a stainless steel cooking area and 737 square inches of total cooking surface so you can sear your way to the perfect burger, fish, or steak. And while the $899.99 online price does not include assembly, delivery is included. Plus, you can arrange for assembly through Costco when you go to checkout.

It’s worth noting that since we’re past the peak grilling season, some retailers may have excess inventory they’re looking to get rid of. So before you buy this grill from Costco, you may want to shop around and see if there’s a better price elsewhere.

But you should also know that Costco stands behind its products. So if you run into any issues with your new grill, you can rest assured that Costco will aim to make things right.

3. The De’Longhi Magnifica Evo Automatic Espresso & Coffee Machine with Manual Frother

At an online price of $699.99, this coffee maker is far from cheap. It’s also not your average coffee maker.

Rather, this device lets you make everything from regular old coffee to espresso to iced beverages — all from the comfort of your kitchen. It also features removable parts for easy cleaning and a traditional milk frother, so your beverages are comparable to what you might find at your local Starbucks.

Now, $699.99 is a lot of money to spend on a kitchen gadget. But think about the amount of money you spend on store-bought coffee.

If you normally buy a fancy caffeinated beverage outside the home for $5, it’ll take 140 home-brewed coffees to break even on your $699.99 purchase. But if you buy a fancy coffee from a store three times a week, you’ll break even in less than a year, and from there, you can put all the money you’re not spending on coffee into your savings account.

Some of Costco’s inventory is pretty high-end, and these items are certainly not cheap. But if they fill a want or need for you and you can afford them, then they may be worth the higher price point.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Costco Wholesale, and Starbucks. The Motley Fool has a disclosure policy.

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The paycheck-to-paycheck lifestyle is beyond stressful. Read on to see how you can break that cycle. 

Imagine you’re in the midst of a typical month when your car decides to stop running. One $700 repair later, you’re back on the road — only now you’re stuck with a large credit card balance you’re not going to be able to begin to chip away at until your next paycheck arrives.

When you live paycheck to paycheck, you have no savings on hand for things like higher-than-expected bills or unplanned expenses. And that, frankly, can be a very stressful way to live.

Unfortunately, that’s the reality for 61% of Americans, according to a recent CNBC survey. And if you’re part of that statistic, it means you’re vulnerable to debt the next time an unanticipated bill lands in your lap.

Not only can debt be costly in terms of interest, but too much of it has the potential to damage your credit score. And that could have an impact for years. It could force you to do things like delay homeownership, and it could even limit your ability to live where you want to live due to not qualifying for a rental.

If you’re tired of living paycheck to paycheck, your best bet is to build yourself an emergency fund. And while that’s not easy to do when you’re starting with a balance of $0, here’s how you can gradually accumulate some cash reserves.

1. Cut your spending to a reasonable level

Many people who live paycheck to paycheck aren’t in that boat because they’re driving $90,000 cars and living in homes that cost $7,000 a month. Rather, it’s that many are challenged by stagnant wages.

As such, you may not be in a position to cut your spending significantly. If you have no savings, chances are, you’re not earning all that much and therefore aren’t spending an unreasonable amount.

But you may be able to cut a little bit of spending here and there, whether it’s canceling one streaming service or walking more often instead of constantly putting gas in your car. These small changes might seem insignificant, but they can make a big difference over time.

If they result in an extra $30 a month in savings, after a year, you’ve got a $360 emergency fund. That’s far better than $0.

2. Embrace the gig economy

When you work hard at a primary job, the idea of getting a second one can be downright unappealing. But the nice thing about the gig economy is that it’s fairly flexible. And often, you don’t have to commit to a side hustle in terms of schedule and hours. If you sign up to drive for a ride-share company, for example, you can work when you want and however many hours a week you can fit in.

Of course, some side gigs are less flexible. If you’re picking up shifts at a local retailer, management is likely going to want a commitment. But think about what your schedule looks like and how much extra work you can handle. Even if it’s not that much, any extra income you’re able to generate could go a long way toward helping you build savings.

3. Put the process on autopilot

Many people have the best intentions when it comes to saving money but get tripped up along the way. If you want to build an emergency fund to stop living paycheck to paycheck, take a look at your bills and earnings and see how much money you should, in theory, be able to save every month. Then set up an automatic transfer so that sum lands in your savings account as soon as each paycheck arrives.

If you send money into savings as soon as it becomes yours, you won’t get a chance to spend it. And let’s face it — we all get tempted to spend money when we know we shouldn’t, and it’s hard to say no. This system makes it so you really don’t give yourself a choice.

Living paycheck to paycheck can easily ruin your outlook and wreak havoc on your mental health as well as your finances. And you deserve better. So if you’re tired of having no financial cushion whatsoever, take steps to build your emergency fund, even if it’s a slow process. Over time, your efforts are apt to pay off.

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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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Mortgage rates just hit 8% for the first time since 2000. Find out what that milestone means for home buyers. 

The average interest rate on a 30-year fixed mortgage just hit 8% for the first time in more than two decades. While this is clearly much higher than the 3% (or lower) rates we were seeing just two years ago, what exactly does this mean to you if you’re planning to buy a home?

To illustrate just how much of an effect this higher mortgage rate can have on your housing costs, here’s a rundown of how much the typical $500,000 home costs per month now, compared to how much you would have paid if you had bought when rates were low.

How much does a $500,000 house cost per month now?

As mentioned, the average 30-year fixed mortgage rate just hit 8% for the first time since 2000. Assuming a 20% down payment, this means that the monthly mortgage payment on a $500,000 home would be $2,935.

However, not all borrowers can come up with a 20% down payment, which would be $100,000 on a half-million-dollar home. If a borrower put 5% down on a conventional mortgage, not only would they have to finance $475,000, but they’d also have to pay private mortgage insurance, or PMI. This would make their monthly payment $3,683.

Now, this is just the principal and interest portion of your mortgage payment. You’ll most likely be required to pay property taxes and homeowners insurance premiums along with your monthly mortgage payments, and for this reason, mortgage payments are often referred to as PITI (principal, interest, taxes, and insurance).

The costs of property taxes and homeowners insurance can vary significantly based on location, but using the national averages, someone buying a home worth $500,000 can expect to pay $5,550 per year (about $463 per month) in property taxes and another $3,033 per year (about $253 per month) for insurance.

Putting it all together, this means that the average person buying a $500,000 home today with 20% down would have a $3,651 monthly housing payment. If the buyer put 5% down, their payment would be $4,399, including the cost of private mortgage insurance (PMI).

How much a $500,000 house cost per month two years ago

Two years ago, in October 2021, the 30-year mortgage rate was hovering around a 3% average rate. But that’s not the only factor to consider. Since that time, the average home value has risen by 12%, so a home that costs $500,000 today could be reasonably expected to have cost $440,000 two years ago.

Not only that, but property taxes and insurance are generally based on home value, so those would have been lower upon buying a home two years ago as well.

I’ll spare you all of the math here, but the end result is that a home that costs $500,000 today would have come with a monthly PITI payment of $2,114 with a 20% down payment in 2021. With 5% down and PMI, the payment would be $2,566 per month. These figures are a staggering 42% less than what the same home could be expected to cost today.

Is now a terrible time to buy?

The cost of homeownership has certainly increased, but it could still be a smart time to find a good mortgage lender and buy a house. The market has cooled off quite a bit as rates have risen, and buyers generally have a better selection of homes (and more negotiating power) than they did a year or two ago.

Plus, it’s important to keep in mind that a 30-year mortgage rate isn’t necessarily permanent. If rates fall, it’s fairly easy to refinance a home mortgage in most cases. So, assuming you can afford the monthly payment at today’s rates, it could still be a good time to get the process started.

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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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While many people do their banking with brick-and-mortar banks, online banks are also popular. Find out what perks you may get with an online bank. 

Brick-and-mortar banks aren’t the only financial institutions available. If you’re looking to open a new bank account, online banks are another option to explore. Even though these banks are internet-based, you can easily access your money and take advantage of similar offerings made available by traditional banks. You might also enjoy some additional perks when banking with an online bank. Keep reading to learn the little-known perks of online banks.

1. Minimal extra fees

If you’re not careful, checking account fees and other banking fees can add up quickly. The good news is many online banks are known for having minimal extra fees. It’s not uncommon for online banks to provide bank accounts free of monthly maintenance fees.

Another way to save money on fees with an online bank is if the bank offers reimbursement for ATM fees. Usually, if this benefit is available, the bank will provide reimbursement up to a certain dollar amount per month. If you need to withdraw cash regularly, this perk could be valuable.

Remember that not every online bank account has the same fee structure. It’s important to carefully review all fees before opening a new bank account. You want to understand all potential costs to avoid a surprise that impacts your wallet.

2. Get paid early

While not all online banks offer early direct deposit, many banks provide this benefit. Receiving your paycheck a day or two earlier could be helpful for those occasional times when additional costs creep up on you.

It’s best not to become too reliant on this account feature, though. You can prepare for unexpected expenses in other ways. Building an emergency fund is a smart way to prepare for unforeseen costs.

3. Earn more interest with higher APYs

If you’re working hard to meet your savings goals, paying attention to the annual percentage yield (APY) offered by your bank is essential. Choosing a bank account with a higher APY is an excellent way to maximize the interest you earn while your savings sit in the bank.

Many online banks offer higher APYs than brick-and-mortar banks do, thanks to lower overhead costs. This perk could be valuable if you have a sizable emergency fund. You may miss out on additional interest if you have a savings account with a brick-and-mortar bank.

Check out our list of the best high-yield savings accounts to compare account offerings, including APYs.

Don’t ignore online banks

Brick-and-mortar banks are a popular choice for many people, but they’re not the only banks. If you don’t need a physical bank branch nearby, an online bank could be an ideal solution for your banking needs.

They function like other banks and have many of the same benefits you’ve come to love about your local bank. But you could also take advantage of additional perks like the ones mentioned above. If you’re thinking about switching banks, these resources may be helpful:

How to Choose a BankHow to Open a Bank Account OnlineOnline vs. Brick and Mortar Banks: Which Is Better?Pros and Cons of Online Banks

Check out our personal finance resources for additional financial guidance.

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Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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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Want to make the most of Costco? Read on for a simple set of guidelines to follow. 

For many people, the $60 or $120 annual fee for a Costco membership is well worth the money thanks to the savings it results in. If you use your membership often, you might save hundreds or thousands of dollars a year on things like groceries and household essentials.

But if you want to make the most of your Costco membership, then you’ll need to commit a few key rules to memory. These four rules could help improve your shopping experience.

1. Don’t shop on weekends unless you absolutely have to

Although this isn’t necessarily the case universally, in many areas, Costco warehouses become a madhouse on Saturdays and Sundays. It’s similar to the way supermarkets tend to be more packed on weekends because people can shop without the constraints of the workday.

The problem with shopping at a packed store is that you might feel more stressed. And if you’re rushing to escape those crowds, you might forget items you need or purchase things impulsively because you just want to leave the store as soon as possible.

If your work schedule is such that you can’t shop during the daytime on weekdays, consider going to Costco at night after work. Chances are, it won’t be nearly as busy as a weekend.

2. Pay attention to seasonal items

There are certain Costco items you won’t find year-round. The bakery’s famed pumpkin pie and muffins, for example, are generally only available from September through roughly Thanksgiving time. So if there are favorites of yours that you’re eager to scoop up, be mindful of the fact that they may not stay on the shelves forever, and buy them when you can.

And if you’re not sure how long a given item will be available, ask. If it’s baked goods, for instance, just talk to someone in the bakery department. Chances are, they’ll have the inside scoop.

Of course, some Costco items — baked goods in particular — only have a limited shelf life. But some items also freeze really well, like muffins. Again, if you’re not sure, the people producing those goods are the best people to ask.

3. Compare prices for bigger-ticket items

Costco is known for its competitive prices. But that doesn’t mean Costco always has the best price on every single thing.

Now, if you’re buying something like a gallon of milk, you might as well go with Costco’s price. Unless money is extremely tight, it doesn’t pay to spend time researching prices to potentially save yourself $0.14. But if you’re buying a bigger-ticket item, like a TV, laptop, or piece of furniture, then it does pay to check around at different retailers and see which one has the lowest price.

That said, look at the big picture when deciding whether to make a larger purchase at Costco versus another store. If you have an Executive membership, you get 2% cash back on Costco buys. You also get a second-year warranty on electronics for free, plus free tech support.

So, let’s say you’re looking at a $900 laptop at Costco that you see available at another store for $875. Before you rush to save that $25, remember that with an Executive membership, you’ll get $18 back on your purchase. You may decide that spending an extra $7 at Costco is worth it to get free tech support and the added warranty.

4. Be reasonable with your returns

Costco is big on customer satisfaction, so you shouldn’t hesitate to return items that are defective or, in the case of food, spoiled or just plain off. But it’s also important to be reasonable with your returns. If you abuse that privilege, Costco does have the right to revoke your membership.

What does being reasonable mean? In the context of clothing, don’t return a pair of kids’ pants that’s been washed and worn many times over. In the context of food, don’t return a cake that’s 60% eaten based on the taste being odd.

That said, don’t sweat it if you need to make a Costco return but can’t locate your receipt. A customer service representative can use your membership number to look your purchase up and see what you paid for it.

Shopping at Costco has the potential to be a very positive experience. Stick to these basic rules to make your Costco outings even more productive and cost-effective.

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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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Do you enjoy meal subscription services, but don’t like paying a high price? Here are some strategies that could help you save money on the cost of meal kits. 

When life gets busy, using services that offer convenience can be a win. Many people pay for meal subscription services to save time. You can spend less time at the grocery store by having ingredients for your weekly meals delivered to your home. But these services come at a cost. If you’re looking for ways to save money on meal subscription kits, this article is for you. Here are a few tips to help you maximize savings on meal subscription services.

1. Try new services

The cost of meal subscription kits can add up fast — especially if you’re a regular customer. You can save money on meal kits by trying new services. Many meal subscription companies provide discounts to new users to encourage more customers to try them.

Before you place an order with a new-to-you meal subscription service company, check to see if a coupon code is available to new customers. You can use one of the best coupon apps to find active promo codes. This strategy could help you keep more money in the bank. Another option: if you have a friend or family member who’s signed up for a meal service, ask if they received a code to share with new customers.

2. Order more meals

Ordering extra servings or meals per week is another way to get a better deal. Usually, you’ll pay a cheaper per-serving price when you order more meals. So, if you’re only a two-person household, it can benefit your wallet to subscribe to a four-person meal subscription.

By doing this, your per-meal cost will be cheaper. As long as you have a plan to eat the extra meals you order, this is a wise strategy. But be careful not to waste food. Ordering extra servings is also an excellent option if you like having leftovers for lunch.

3. Review available cash back app offers

Using cash back apps and browser extensions when you shop online is an excellent rewards strategy. Before placing your next meal subscription service order, review current cash back app offers first. You could earn cash back on your purchase using a service like Rakuten. You won’t get an immediate discount when you order, but you can redeem your cash back earnings in the future and stash the extra cash in your savings account.

4. Add other ingredients to bulk up your meals

You can also save money by adding additional ingredients to your meals. For example, adding a can of chickpeas to a dish will make it more protein-packed and could help you stretch the servings to feed more people or have leftovers for another meal. This technique might not work for every meal, but it could help you get more value from your meal kits.

5. Pay for your order with a rewards credit card

Another way to maximize your savings is using rewards credit cards to pay for your meal subscription service orders. During checkout, consider which credit card will provide you with the most rewards on your meal orders. If you prefer earning cash back rewards (rather than points or airline miles), look at our list of the best cash back credit cards.

Convenience may be worth the extra expense

You’ll pay more for convenience. But some conveniences, like meal subscription services, are worthwhile. Consider whether meal delivery kits could add value to your life. The above tips can help you maximize your savings and avoid overspending. Check out our free personal finance resources for more ways to save money.

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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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