Money Management

Would you buy an autograph from a baseball legend from Costco? Check out this bizarre deal and see whether it’s worth it. 

Recently, I was getting lost on Costco’s website when I came across a category I had never seen before — Sports Memorabilia & Collectibles. It sounded unusual, but definitely not as bizarre as the products that I found.

If you already know this, then live vicariously through my surprise because I had no idea Costco sells autographs from famous athletes ranging from Mickey Mantle to Cristano Ronaldo to Tom Brady. And though I saw plenty of other names I recognized, one stood out immediately: Babe Ruth.

An index card with a legend’s autograph

As if Costco hadn’t already blown my mind with other strange products — like greenhouses — the warehouse is selling a limited supply of three-by-five index cards with Babe Ruth’s autograph.

The price? $19,999.99.

For about the same cost as a 2023 Volkswagen Jetta, you can own the Big Bambino’s autographed name. The index card comes encapsulated in a tamper-proof case and has been certified by the Beckett Authentication Services, a reputable third-party company that authenticates autographs. The autograph itself is a mint 10, meaning it’s one of the best examples of Babe Ruth’s signature and is bold enough to see with the naked eye.

Should you buy it for $20K?

From what I can gather online, the price for Babe Ruth’s autograph swings wildly from a few thousand dollars for a faded squiggle to hundreds of thousands for clear signage on baseball cards, balls, and bats. eBay has quite a few autographed cards that are similar in size to Costco’s, but the only mint 10s I could find were priced between $21,000 and $28,000.

The fact that I can find Babe Ruth’s autograph so easily, however, tells me Costco’s index cards aren’t as rare as, say, buying Babe Ruth’s original Yankees contract. It’s neat that Costco is selling this. But don’t have high expectations that the card’s value will grow exponentially, if you’re looking at it as an investment.

For Yankees fans who can’t pass up a mint 10 Babe Ruth autograph, you might want to ask yourself a few questions before buying this (or any other collectible).

Where will you store it? The card may be in a tamper-proof case. But that doesn’t mean it’s fire-proof or theft-proof. Since it is a physical card, you’ll want a secure place to store it, such as a safe.Will you have to buy insurance? Some home insurance policies will cover collectibles, but they usually impose a limit. If your policy doesn’t cover the card, you might have to buy additional coverage.Can you actually afford it? Sinking $20,000 into an index card might not be the smartest personal finance decision. For instance, if you don’t have a solid balance to pay for your retirement, it would be better to invest this money for the long term.

All in all, if your finances are solid, and you collect autographed sports memorabilia, this could be a good deal. It is, after all, an autograph of a baseball legend and is at least 75 years old, if not older. Better yet, if you’re a Costco Executive member you can earn $400 in cash back on this purchase alone. Add in Costco’s generous return policy, and you might not find a better place to buy your autographed collectibles.

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

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Amazon’s next mega-sale will be here soon. Read on for ways to come out a winner. 

Amazon’s Prime Day event typically takes place during the summer. That was the case this year. But now, Amazon is running a second Prime Day event in 2023. Dubbed Prime Big Deal Days, the Oct. 10 and 11 sale is expected to feature countless deals across a wide range of product categories, from electronics to apparel to kitchen gadgets.

You may be eager to enjoy your share of savings during Prime Big Deal Days. And getting organized ahead of time could be your ticket to doing just that. Here are some steps you can take to make the most of the big event.

1. Make a wishlist before you shop

Chances are, you don’t have unlimited money to spend during Amazon’s upcoming mega-sale. So it’s important to get focused. You can do so by creating a list of the items you’re hoping to find on sale. That could help you avoid jumping at bargains you’re less interested in early on — and spending your money on the wrong things.

2. Sign up for deal alerts

Most of us can’t just blow off work for two days to sit at our laptops waiting for deals to drop. Thankfully, there’s an easier way to stay on top of deals during Amazon’s October Prime Day event — sign up for them ahead of time. You can do so in the Amazon app, website, or via Alexa. It could pay to sign up to follow your favorite brands so that as deals hit, you’ll be in the know.

3. Compare prices ahead of time

You might see a host of bargains hit during Prime Big Deal Days. But that doesn’t automatically mean you’re getting the lowest price on Amazon, as opposed to a competing retailer.

In fact, it’s a good idea to do some price research for the items on your wishlist ahead of October Prime Day. That will give you a better sense of which items are worth snagging. Apps like ShopSavvy make it easy to compare prices across retailers. Find a tool that’s easy for you to use so you’re privy to the data you need.

4. Use the right credit card to make your purchases

You don’t have to use the Prime Visa for your October Prime Day purchases. Rather, you can generally use any valid credit card you have. But if you want to enjoy even more savings on your Prime Day purchases, then the Prime Visa is worth favoring. That’s because it offers a whopping 5% back on all Amazon orders.

What’s more, the Prime Visa allows you to redeem your cash back as soon as the day after you accrue it. This means you could conceivably rack up cash back on Oct. 10 and use your rewards for purchases on Oct. 11, while Prime Big Deal Days is still going strong.

Amazon’s October Prime Day event is apt to draw in a lot of customers. Do what you can to make the most of the sales that are about to hit, so you wind up happy with your purchases and savings.

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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.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.com. The Motley Fool has positions in and recommends Amazon.com and Visa. The Motley Fool has a disclosure policy.

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Frustrated by sky-high mortgage rates? Read on to see why they don’t necessarily have to ruin your home-buying plans. 

There’s a reason so many home buyers have reached the point of utter frustration. Not only are home prices elevated today, but mortgage lenders are charging exorbitant rates for the privilege of borrowing for a home. And it’s not looking as if mortgages will get less expensive anytime soon.

The average 30-year mortgage rate today is 7.31%, according to Freddie Mac. For a $300,000 home with a 20% down payment, that means a monthly payment of $1,647 for principal and interest — not a small amount.

But while you may not want to pay upward of 7% on a mortgage today, you also don’t necessarily have to write off homeownership just because rates are elevated. If you can afford a home today in spite of the rate you’re looking at on a mortgage, then it could pay to move forward with a home purchase.

There’s a benefit to being a homeowner

Let’s get one thing out of the way — if you can’t afford to purchase a home today or simply don’t want to, there’s nothing wrong with renting. You can do quite well for yourself financially even if you’re writing a landlord a check every month.

But there are unquestionable benefits to owning a home you should know about. First, you get to call the shots and you don’t have to listen to a landlord’s rules. This means that if you want to paint your walls cobalt blue or adopt three dogs weighing 120 pounds each, that’s your right.

Also, there are tax benefits to having a mortgage, like getting to deduct the interest you pay on that loan (which, these days, is apt to be a lot since rates are up) if you itemize deductions. And there’s also the perk of getting to build equity in a place of your own.

That’s why it could pay to move forward with a home purchase today, despite getting stuck with a higher mortgage rate. If you can afford your monthly payments, you’ll enjoy the aforementioned benefits. And you also may not get stuck with a higher mortgage rate forever.

Mortgage rates tend to fluctuate over time. So there will likely be a point when rates come down. Once that happens, you can look to refinance.

Just make sure to crunch the numbers before you buy

The idea of paying 7.31% on a mortgage (or somewhere in that vicinity) when borrowers were paying just 3% a few years ago might be upsetting. But if you can swing the payments that come with a mortgage at today’s rates, you may find that you’re able to refinance sooner than expected. And you may find that you’re able to benefit from owning a home in the interim.

However, before you buy a home today, run some calculations. You’ll want to make sure that your total monthly housing costs, including your mortgage payment, property taxes, and homeowners insurance premiums, don’t exceed 30% of your take-home pay.

Going beyond that threshold could put you at risk of falling behind on your expenses — housing or otherwise. And that’s not a risk you want to take.

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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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Dollar stores are packed full of low-priced products, but not everything is a deal. Here are some items actually worth checking out. 

The dollar store is this sort of magical place where, if you hunt through aisles of junk, you can occasionally find an absolute gem of a deal. But the key to keeping the dollar store a boon to your personal finances — rather than a hazard — is to learn to identify the difference between the junk and the deals.

I’ve been visiting my local dollar stores for forever (give or take), so I’ve purchased my fair share of stuff that’s wound up in the garbage. I’ve also managed to find some go-to items that always give me great bang for my buck. Here are a few things that always wind up on my dollar store shopping list.

1. Gift bags and boxes

I am a terrible wrapper. Despite my best attempts, it always comes out uneven, wrinkled, and inevitably torn. So, I love gift bags. What I don’t love? The price of gift bags. Who is paying $5 a pop for something the recipient will more than likely toss? Not me!

The dollar stores near me have a surprisingly awesome selection of gift bags. You can get fantastically festive holiday bags, glittery birthday bags, and even more tame bags for any occasion.

You aren’t limited to bags, either. You can get boxes of all shapes and sizes, including small ones ideal for trinkets or gift cards. And don’t forget the accoutrements, like tissue paper, ribbons, and bows — all available at the dollar store for a fraction of the department store cost.

2. Greeting cards

In a world of digital this and e-that, there’s something utterly charming about receiving a physical greeting card. What’s less charming is paying $7 for a simple card (and twice that if you want something fancy). Not only does my local Dollar Tree have a great array of greeting cards for all occasions, but they even have lots of choices priced at two for $1. The envelope is even included.

Are the cards cute, sweet, and/or funny? Absolutely. Are these cards going to sing and dance? Not without a magical incantation. But does a greeting card need to do all that? It’s what you write inside that the recipient will really remember.

3. Seasonal decor

Dollar stores have a remarkably good arrangement of seasonal decor items, especially if you catch them right after a transition from one holiday to another. You can find indoor decor, from tableware to tea towels, as well as exterior decor. For instance, Halloween brings out the plastic spiders, posable skeletons, and pumpkins galore.

I particularly like hitting the dollar store for seasonal napkins and paper plates. For less than $5, I can pick up a variety of plates and napkins, adding a festive touch to my table while also cutting Thanksgiving clean-up time in half.

4. Hobby and craft materials

There are a remarkable number of hobby and craft goods you can pick up at the dollar store. Want a painting project? Pick up some craft paint and a small canvas for a buck each. Looking to try your thumb at gardening? You can find seeds, dirt, pots, and even plant markers if you’re hitting the dollar store in the spring or summer.

The same is true if you like to DIY gifts. The selection of florals changes regularly, as does the various types of glassware, from votives to champagne glasses. And the selection of photo frames is surprisingly decent.

5. Cleaning supplies

I like to DIY a lot of my cleaning supplies — you can get a lot done with some vinegar and elbow grease! — but the dollar store is where I get a lot of the rest. Sponges and cleaning cloths? Cheap and abundant. Pads for the mop? A fraction of the price of the name brand.

It’s not all knock-off brands, though. You can get brand-name cleaning supplies at the dollar store, just in smaller amounts than you’d find on the grocery store shelves. I’d argue that these are far more usable sizes, however. Do I use a capful of bleach now and then? Of course. Does that mean I need a 64-ounce jug taking up half the space under my sink? Nope!

Shop with cash for a hard budget

Have you ever walked into the dollar store to pick up one or two necessities — and somehow spent $30 on you-don’t-even-know-what? Yep, me too!

If you have an inner bargain gremlin (I call mine Sal), then seeing a veritable smorgasbord of “deals” can be overwhelming. So overwhelming, in fact, that both my Junk Meter and my Budget Meter get all out of whack, leading me to overspend on nonsense I don’t even need.

My solution? Cold hard cash, baby.

Yes, I know, I’m usually the first one to tell you to bust out your rewards credit card for pretty much everything. But the dollar store falls into that “pretty much” bit.

Don’t take your credit cards into the dollar store if you’re soft-willed around low prices (like me). Take cash instead. It makes it much easier to spend only what you set aside for the trip. Your bank account (and junk drawer) will thank you.

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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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Warren Buffett likes credit cards, but not because they’re good products for consumers. Here’s how Buffett makes credit cards work for him. 

Warren Buffett is a vocal critic of credit card debt. At a recent Berkshire Hathaway meeting, Buffett told the story of how an acquaintance who had inherited some money asked him for the best ways to put it to work. The person had a significant amount of credit card debt at roughly 18% interest, and Buffett strongly suggested that the best use of the money would be to pay off the debt, and not invest. As Buffett put it, a guaranteed 18% return is “going to be way better than any investment idea I’ve got.”

He’s right. The stock market as a whole has historically produced annualized returns of about 10% over long periods, and most of the best investors can’t do much better than 12% or so on a long-term basis. So, if you’re investing with these kinds of returns while simultaneously paying 18% or more on credit cards (the average credit card APR has increased to about 24% from 18% since Buffett’s comment), you’re setting yourself up to lose money, mathematically speaking.

One reason Warren Buffett likes credit cards

This isn’t to say that Buffett is completely opposed to credit cards. In fact, he’s probably benefited significantly from credit cards over the years.

It isn’t from using credit cards. Buffett has said that he pays for 98% of his own purchases in cash.

Instead, Buffett has made tons of money by investing in credit card issuers over the years. American Express — of which Berkshire Hathaway owns more than 20% — is one of Buffett’s largest and most successful investments ever. Berkshire (through Buffett) has also invested heavily in Bank of America, which is the conglomerate’s second-largest investment. In addition, Berkshire has substantial investments in Ally Financial, Citigroup, and Capital One, as well as in both major credit card processing networks Visa and Mastercard.

Between all of these, Buffett has made billions from companies that issue and profit from credit cards. Buffett originally paid $1.3 billion for Berkshire’s American Express stake, which is worth about $22.7 billion as of this writing.

The point is that when consumers carry over $1 trillion in credit card debt (as they do right now), the only big winners are the banks.

Is Buffett right that consumers should avoid credit cards?

To clarify, Buffett isn’t necessarily opposed to credit cards in all situations. He’s opposed to carrying a balance and paying interest. If you put a restaurant meal on a credit card and pay it off before the balance comes due, there’s little difference between doing that and paying cash. In fact, if you have a rewards credit card and pay your bill in full every month, you can actually make money by paying with plastic for everyday purchases.

However, the reality is that millions of people don’t use credit cards this way. After all, credit card companies are out to make a profit — not give things away — and all of the reward and loyalty programs are designed to entice people to spend more money.

The bottom line is that credit cards can be an excellent financial tool when used responsibly. But they can be an absolute financial disaster if they aren’t, so keep that in mind before you decide to play the credit card rewards game.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has positions in Ally Financial, American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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