Money Management

Expiration dates are real and valid, right? Maybe not. Learn why you shouldn’t necessarily trust the dates on your food. 

Food waste is a huge, expensive problem in America. According to the nonprofit Feeding America, we waste 119 billion pounds of food per year in this country. The USDA calculates that 30% to 40% of the food supply is wasted. These are staggering figures, and this reflects a tragedy in several ways. Some Americans don’t get enough to eat, period — and even if you do, the chances are still good that you’d like to save more money on food.

Food waste can hit you right in the wallet, and since food costs have been up thanks to inflation, it’s worth doing what you can to eat more of what you buy. To that end, let’s talk about expiration dates and how they can lead to food waste.

What do expiration dates actually mean?

Well, for starters, to call them “expiration dates” is inaccurate, because in most cases, they don’t indicate when a food item has expired. According to the USDA’s Food Safety and Inspection Service, no food product is actually required to bear a date under federal law, except for infant formula (which requires a “use by” date). So these dates aren’t applied to food to comply with laws. Rather, they indicate the time of supposed best quality for a given food, for the benefit of retailers and consumers like you and me.

Adding to the confusion over what the dates mean, there are also several types of labels you might see on food packages. These include:

“Best By”/”Best If Used By”: This could tell you when the food will be at its best flavor.”Sell By”: This one tells a store how long to keep the food on the shelf for purchase.”Use By”: Remember, this one is only required for infant formula. For other food, it’s there to give you an idea of the peak quality for the item.”Freeze By”: This one tells you when a food should be frozen to preserve its quality.

None of these labels have to do with safety, and if you have food in your kitchen that has passed these dates, it doesn’t mean you should automatically rush to throw it out (and absorb the hit to your checking account that comes from buying food you don’t actually eat).

How can you mitigate food waste in your own kitchen?

The good news is that there’s so much you can do to ensure you’re not wasting food due to somewhat arbitrary and often inaccurate printed dates. I hate throwing away food, so I’ve gotten pretty good at applying these tips in my own kitchen.

Employ the smell test

Don’t assume dairy products have gone bad based on the date. Crack open the lid on that milk and give it a sniff. If it smells okay, it likely is. Trust me, milk that is going sour will smell and taste different. If you have a cold or your sense of smell is otherwise compromised, employ a friend or family member to double-check your smell test results.

Rely on other ways to tell whether food has gone bad

For example, eggs that have gone bad will float if you put them in a bowl of water. If that cheese hasn’t grown mold, it’s probably fine (though be careful with the pre-shredded stuff). If your deli meat has a slimy film, toss it. If the food in question is noticeably discolored, think twice about eating it.

Keep an eye on the calendar and the temperature

One type of food that’s worth being extra careful with is leftovers of all kinds. If it’s already been cooked, partially consumed, and then saved, you run a greater risk of nasty bacteria taking over, because that food has been in “the danger zone” (between 40 and 140 degrees F, which is the optimum temperature for bacteria to multiply) for a period of time already. My rule of thumb is three days in the refrigerator, max. If I need more time, I might elect to stick the item in the freezer.

Reheat leftovers thoroughly

Take the extra bit of time and care to reheat your leftover food in such a way that any bacteria is killed off in the process. If you use the microwave, I recommend reheating in short bursts (30 seconds to a minute) and stirring in between. You want to bring food back up to at least 165 degrees F. A food thermometer is worth the small outlay of money.

Keep track of what you have

It’s a good idea to make a regular inventory of your fridge, freezer, and pantry. I love the challenge of using up food before it goes bad, and keeping track of what’s in the house keeps me from throwing food out as well as buying more of the same item I already have.

Try a food app

There are apps out there that connect you to services that sell food that would otherwise be tossed out. You get to save money on the food and help mitigate food waste. Win win!

Be part of the solution to food waste, not the problem. To that end, employ your senses to decide whether food is still okay to eat — but if you have any doubt, throw it out. It’s not worth getting sick to save a few bucks. (Do the smell test first, though.)

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

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Only 57% of people in their midlife years believe they’ll be able to retire. Here’s how to start your retirement plans if you need to catch up. 

Retirement is a popular topic among Americans. And while all age groups have some level of interest in retirement topics, it’s those in mid-life — aged 40 to 59 — who are the most concerned about their retirement savings, according to a recent MIT AgeLab report.

Nearly 34% of midlifers were interested in learning about saving for retirement, compared to 23.7% for young adults and 14.8% for older adults.

Here’s why this age group is trying to learn as much as they can about saving for retirement, and what you can do if your retirement planning has fallen behind your own goals.

Why people in mid-life are focused on retirement

Based on the survey, there may be two reasons why midlifers are more concerned about retirement savings than other age groups. The first is that they’re the most likely of the age groups to say that they don’t expect to retire because they won’t have enough money.

While most people were optimistic about their futures in the survey, midlifers were slightly more pessimistic about having enough money saved up. This may be because this age group is caring for their kids and aging parents, in addition to trying to navigate their careers, the survey noted.

And it’s more than just a psychological feeling for this age group. Half of people in the midlife age group report they are “just getting by” or “struggling to get by” financially, which is larger than any other age group — and only 57% believe they’ll be able to retire.

The report noted that this may be because midlifers manage multiple forms of debt, including mortgage and medical care, as well as saving for their kids’ education.

How to catch up on retirement savings

If you find yourself further behind on your retirement savings than you want to be, there are a few things you can do to put yourself in a better position:

Max out your 401(k) contributions: You can contribute up to $22,500 in tax-deductible contributions to your 401(k) in 2023. And if you’re 50 or older, the maximum amount is $30,000. Sign up for your employer 401(k) match program: Many companies have 401(k) programs that match how much you contribute, up to a certain percentage of your salary. Make sure you take advantage of the program if your company has one, so you’re not leaving free money on the table. Take advantage of IRA investments: Even if you have a 401(k), you can open a brokerage account and put money in an individual retirement account (IRA). Whether you choose an IRA or a Roth IRA, there are tax advantages with either choice. You can contribute $6,500 toward an IRA in 2023 or up to $7,500 if you’re 50 or older. Consider downsizing your home: Moving into a smaller home could save you a lot of money. While it may not be possible for everyone, a StorageCafe report published last year found that homeowners across the country could save an average of $196,000 by downsizing from a four-bedroom home to a two-bedroom.Extend your working years: Delaying your retirement by a few years will give you more time to put a portion of your salary toward retirement and potentially increase the amount of money you get from Social Security.

The MIT AgeLab survey said that one-third of Americans said they don’t expect to be able to retire. But no matter your financial situation, having some money put aside for retirement is better than none.

For example, let’s say you’re older than 50 and max out your IRA contributions for the next 10 years — putting $7,500 aside annually. The IRA account limits often increase for inflation, but we’ll keep it the same just to keep the calculations simple. If you start with $5,000 in retirement savings, add $7,500 each year for 10 years, and let your money grow in a retirement account, earning a historical average of 10% per year, you’ll have over $132,000 in retirement savings at the end of that time.

That’s why it’s important to assess your retirement saving options, whether that’s opening a Roth IRA or talking to your employer about a 401(k) matching program. Taking the first step toward putting some retirement savings aside — or boosting your current contributions — will allow that money to grow for years.

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I pay more for insurance than I need to because I want additional protection for my assets. Should other people do the same? Read on to find out. 

When I bought my homeowners insurance, I paid more than I needed to in order to get covered. I did the same for my auto insurance.

It may seem silly to overpay for insurance, but there’s a very good reason I decided to do so. In fact, I’m happy to have the extra money come out of my bank account. Here’s why.

Overpaying for insurance just makes sense

Overpaying for insurance makes a lot of sense to me because I purchase more than the minimum required coverage.

My state — like most states — only requires liability auto insurance, not collision or comprehensive coverage. I could easily opt to purchase only the minimum required protection and opt out of other types of auto insurance. But, if I did that, I would have no coverage for theft of my vehicle or for anything that happened to go wrong with my car that wasn’t caused by another driver. That would leave me financially vulnerable.

Not only did I buy additional kinds of auto insurance that were not required, but I also opted for higher policy limits than my state requires. In other words, I bought more of the required coverage. The mandated coverage is for such a small amount that I feared I’d find myself paying for losses out of pocket that were above and beyond what the insurer would cover.

See, if someone doesn’t have enough liability insurance and harms someone or damages their property, the victim could pursue a claim against the responsible party’s personal assets. Liability coverage would only pay up to policy limits, creating a significant risk of out-of-pocket losses.

I wanted to pay more for my auto insurance to make sure I wouldn’t lose money whether my own car was damaged or I accidentally damaged someone else’s. It was worth it to me to pay higher premiums to transfer more risk.

The same was true with home insurance, as lenders only require coverage for the house that serves as collateral — but additional protections are important as well, such as:

Good liability coveragePersonal property coverage (which pays to replace or repair damaged property)Loss of use coverage (which pays for costs associated with not being able to live in the house due to a covered event)

I bought all this extra coverage that wasn’t mandatory because the risks of not doing so were too great.

Don’t put your assets at risk with too little insurance coverage

I’m happy to overpay for insurance, or pay more than the minimum, to get the benefit of more protection for my assets. And most other people should do the same.

The goal of insurance isn’t to pay the least for a policy. It’s to make sure that a covered disaster doesn’t result in financial devastation. It’s well worth paying the premiums necessary to put the right coverage in place and transfer an appropriate level of risk.

To decide how much insurance to purchase, don’t look at what’s required. Instead, think about what losses could be easily paid for without insurance. Unless the costs associated with a loss could easily be covered without emptying a bank account, get the insurance needed to transfer the risk to the insurer that can cover it.

This will pay off big time in the end if and when a disaster strikes.

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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.
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Nobody wants to spend more than they have to at the grocery store. Take these four key steps to keep your food spending in check. 

Groceries have become really expensive — which probably isn’t news to you if you pay attention to the cash coming out of your bank account. In 2022, average annual prices for food at home (meaning groceries) were up 11.4% from the prior year, and prices have continued to climb this year as well, albeit at a slower pace.

You don’t have to run up high credit card bills at the grocery store, even though food costs a lot more now than it did just a few short years ago. You can implement four effective techniques to keep your costs down so you have more money for other goals. Here’s what they are.

1. Make a meal plan

Making a meal plan is one of the best ways to reduce your grocery spending, because you can ensure that:

You only buy the ingredients you need to make meals You have scheduled meals for each day so you won’t be tempted to eat out

Meal planning is simple and quick. You can just sit down at the start of the week and write down what you want to have for breakfast, lunch, and dinner. My husband and I started doing this years ago and we ended up cutting our grocery bill by about 25% because we weren’t buying wasted ingredients or scrambling to figure out what we wanted to eat and ending up with takeout.

2. Shop the sales flyers

Most grocery stores have sales flyers, which show you what items are on sale each week. If you can plan your meals around those discounted items, you can reduce your grocery spending dramatically.

For example, if pork is on sale at your local store for $1 off per pound and going for $3.29, why not make pulled pork for one dinner and pork tacos for another? You could end up spending a lot less at the store doing that than if you paid full price for ground beef and got stuck spending $6 a pound for the meat instead of $3.29 for the pork.

You can find your local sales flier online, and you should pull them up each week when outlining your meal plans for the week.

3. Clip coupons

Using coupons is another great way to save on groceries. A recent study showed that consumers could save an average of $316 per year at the grocery store by using coupons.

Coupons can be found in all different places. You can get them from the Sunday paper, print them from manufacturer websites, buy them online, or get them from your local store’s website. There are even coupon apps. There’s no reason not to do a quick search for coupons for the products you plan to buy before you go to the store.

4. Keep track of sale cycles

Finally, keep track of how often things go on sale and stock up on items when they’re on discount, so you don’t have to pay full price. For example, let’s say you have a favorite brand of pasta sauce that is regularly $3.50 and goes on sale every six weeks for $2. You can find out that schedule by making a note of when things you buy go on sale, as stores often follow predictable schedules.

If you use one jar of pasta sauce a week and you buy six of them on sale for $2, you won’t ever have to pay that $3.50. You could save $7.50 on that item alone (the $1.50 extra you’d have paid for the other five weeks when they weren’t on sale). You can do this with any item you buy regularly to reap significant savings.

These steps are pretty simple, but they can make a big impact on your finances. Give them a try and see how much you can cut your spending at the grocery store.

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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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Higher earners have an advantage when it comes to retirement savings. Read on to see how you can gain an edge even if your income is lower. 

The more money you can save for retirement, the more comfortable and enjoyable that period of life might be. Plus, certain expenses, like healthcare, have the potential to soar as you get older, so it’s important to have plenty of savings to cover them.

It should stand to reason that higher earners are apt to have an easier time building retirement savings than lower earners. It’s the same idea as higher earners being more likely to be in a position to afford a $500,000 mortgage or a $50,000 car than people earning a lot less.

But new data shows that the retirement savings gap between higher earners and middle-income households is truly significant. And if you fall into the latter category, it pays to take steps to address that gap.

A major difference in retirement savings

The median retirement savings balance for households aged 51 to 64 for the highest income group in 2019 was $605,000. That’s nine times higher than the balance of middle-income households in 2019, which was $64,300, according to data from the Government Accountability Office.

Now, it’s not so surprising to see higher earners approaching retirement with more money than their lower-earning counterparts. But nine times the amount of savings is huge.

While $64,300 may be a lot of money in its own right, it may not last very long in the course of what could be a 20- or 30-year retirement. So lower or average earners need to do what they can to get an advantage on retirement savings.

How to give your savings a major lift

Let’s say you earn a $50,000 salary while someone you know earns $150,000. Saving $10,000 a year would, for you, mean parting with 20% of your income. For them, it would mean parting with a little under 7%.

It’s hard to pump massive amounts of money into an IRA or 401(k) when your income is just average. But if you start funding your retirement plan from a young age and invest your money aggressively by choosing stocks over safer investments, like bonds, you might end up with a comparable amount of wealth as higher earners.

Let’s imagine you’re able to sock away $150 a month in an IRA between the ages of 25 and 65. If your IRA or 401(k) generates an average annual return of 10%, which is consistent with the stock market’s average annual return over the past 50 years, you’ll end up with about $797,000. That’s more than the $605,000 median retirement savings balance for higher earners in 2019.

Also, this example has you parting with $1,800 a year in total. If you earn $50,000 a year, that’s less than 4% of your salary. And, it gives you the leeway to not start funding your retirement plan the second you graduate college and start working, too.

All told, higher earners have a clear advantage when it comes to building retirement savings. But that doesn’t mean you can’t amass a comparable amount of wealth over time — even if your income isn’t all that high.

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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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