Money Management

Honoring a loved one is important. Read on to see if you should borrow via a personal loan to attend a funeral of someone who meant a lot to you. 

The loss of a loved one can be tremendously painful. And it can be even more difficult if that loved one isn’t local.

Honoring someone important to you by attending their funeral may be something you’re eager to do. It may also be something you don’t have enough cash in your savings account to cover.

In many cases, funerals are an unexpected expense — both for the people who have to put them together and the people who feel compelled to attend them. So if you don’t magically have the cash on hand to travel to a funeral, that’s understandable.

As such, you may be looking at borrowing options to attend that important event. And a personal loan could end up being your best borrowing choice.

Why it may be best to borrow via a personal loan

You might assume that charging your travel costs on a credit card is your best option, provided your cards aren’t maxed out. If you have that line of credit already available to you, you won’t have to wait around to get approved. And in the case of a funeral, you may only have a few days’ heads-up that you need to travel.

But the interest rate you pay on a credit card balance could end up being extraordinarily high. So a better bet may be to take out a personal loan, especially if the costs you’ll incur will extend beyond just a flight.

It may be that you want to not only travel to a funeral, but also spend a week or two with family after the fact. That might require you to rent a car and take time off from work without pay.

Personal loans commonly have a borrowing minimum. If you only need to borrow enough to cover a flight, you may not meet that requirement. But if you’re looking to borrow a few thousand dollars, it’s a different story.

You should also know that personal loans tend to close very quickly. And in some cases, you might have your money the same day you apply. So before you assume that a credit card is your best bet in this situation, it pays to quickly look into personal loan options.

You may be able to avoid debt altogether

If the only cost you need to finance in the course of traveling for a funeral is a flight, then before you resign yourself to borrowing via a personal loan or credit card balance, explore other options. Many airlines offer bereavement fares that could save you money on the cost of your travel.

You’ll need to check each one’s policy to see if you qualify. On Delta, for example, you may be eligible for a discounted fare if you’re a SkyMiles member and are traveling for the funeral of an immediate family member.

Also, if you have air miles racked up, you may be able to redeem them for a free flight. Often, you need to redeem air miles in advance because availability tends to be limited. But if you’re traveling for a funeral, call the airline in question, talk to someone in customer service, and see if they’ll work with you.

It’s never easy to lose an important person in your life. But you don’t want the act of attending their funeral to drive you deep into debt if that’s avoidable. So it pays to look at a personal loan if you’re looking at an extended stay and added costs, as that might end up being a more affordable option than accumulating a credit card balance.

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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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An Executive membership at Costco may be worth paying for. Read on for details on how the program works. 

Joining Costco is a great way to reap savings on a wide range of products and services. And one good way to eke extra value out of your Costco membership is to sign up for the Executive membership program.

A basic Costco membership costs $60 a year. By contrast, you’ll pay double, or $120, for an Executive membership.

But that extra $60 per year comes with one very notable perk — the opportunity to score 2% cash back on your Costco purchases. So it’s important to run the numbers and see if an Executive membership makes sense for you.

It’s also important to know the ins and outs of the program so you can make an informed decision. Here are a few important details.

1. Your break-even point is $3,000

If you spend $3,000 a year at Costco, you break even on the Executive membership upgrade fee of $60, since 2% back on $3,000 equals $60. If you’re not sure whether the Executive membership is worth it, take a look at your typical Costco spending and see what it amounts to.

And if you’re brand-new to Costco, think about your schedule and household needs. Do you have a larger family? If so, you may be more inclined to buy a lot of groceries at Costco, making it more likely that you’ll end up spending $3,000 a year. Similarly, if you have a Costco nearby and feel you’ll have time to shop there often, then an Executive membership could make sense.

2. There’s a limit as to how much cash back you can earn

Costco Executive members get an annual reward certificate that totals the amount of cash back they accrued over the previous 12 months. But you should know that your Executive membership cash back will be limited to $1,000 a year. Clearly, if you’re spending an extra $60 for the upgrade, you still have the potential to come out $940 ahead, so that cap shouldn’t really deter you from signing up for the Executive membership.

Also, to snag $1,000 in cash back on an Executive membership, you need to spend $50,000 a year on Costco. Now to be fair, travel purchases count toward that cash back. And even with Costco’s discounts, those packages can be pricey, especially if you’re booking for multiple people. But even so, your chances of actually spending more than $50,000 a year at Costco are probably pretty slim.

3. Certain purchases won’t qualify for cash back

You can earn cash back through your Executive membership on a wide range of Costco purchases. But certain items don’t count. If you’re banking on those purchases to come out ahead financially on your $60 upgrade, you may need to re-run those numbers.

Gas purchases, for example, do not earn you cash back as an Executive member. Neither do cigarette purchases or alcoholic beverage purchases in certain states.

Additionally, Costco Shop Cards (Costco’s version of a gift card) won’t be eligible for cash back, and neither will postage stamps. And if you’re thinking of buying a car through Costco to hit that $50,000 spending threshold to score the maximum $1,000 back, think again. Vehicle purchases don’t qualify, either.

However, rest assured that online purchases do count toward the Executive membership. So if you prefer to shop from home, it shouldn’t stop you from racking up cash back.

4. You might enjoy extra savings on different Costco programs

Costco makes certain programs available to all of its members. These include bottled water delivery, auto insurance, and pet insurance. You may, however, be eligible for additional savings as an Executive member, should you opt to utilize these and other services.

5. You get a free magazine out of the deal

Costco Executive members get access to Costco Connection, a monthly magazine that comes in the mail. It includes roadshow schedules so you can see which new products are headed to your local Costco for a limited time as well as recipes and other updates. Granted, it may not be the most exciting perk you’ll get as an Executive member — but it’s worth knowing about.

6. You’re not stuck with the Executive membership if it doesn’t end up working for you

You may decide to upgrade your Costco membership only to then experience a shift in your schedule or habits that has you shopping there less frequently. Rest assured that if you don’t end up wanting or needing your Executive membership, you’re not stuck with it. Simply request to downgrade for a refund.

There’s lots to like about Costco’s Executive membership. But there are also certain pitfalls you might encounter. If you’re banking on gassing up your car at Costco every week to make back your upgrade fee, for example, then that strategy won’t work. So it’s helpful to know the details before signing up.

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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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Pet sitting through an app like Rover could make for a good side hustle. Read on to see what tax breaks you can claim if you have this gig. 

For some people, pet sitting is a full-time job. But there are plenty of people who do pet sitting as a side hustle to earn extra money.

Either way, using an app like Rover can be beneficial. You can grow your client base. You also get the benefit of having new clients pay for your services upfront so there aren’t any issues with receiving your money.

Meanwhile, no matter how many hours a week of pet sitting you do, if you earn income that way, you may be eligible for a number of tax breaks. Here are three to keep in mind.

1. Rover fees

Rover charges fees to cover its costs and make money. So when you secure a booking through Rover, you ultimately don’t get your rate in full, because a portion is deducted for fees. And while those fees might cause less money to hit your bank account per booking, the good news is that you can deduct those fees on your tax return.

At the end of the year, Rover will provide you with a 1099-K Summary showing how much of your gross income from the app consisted of fees. You can then deduct those fees from your taxable income. So if you earned $30,000 in gross income from Rover but lost $3,000 to fees, you can deduct that $3,000.

2. Dog treats and supplies

Many pet owners like to provide their own supplies when you pet sit for them. But you may decide to maintain your own stash of treats, chew toys, and other supplies to ensure that things go smoothly.

These are all expenses you’re incurring in the course of earning money. So they count as deductible expenses for tax purposes. However, you’ll need to keep really good records so you know what amount to claim.

A good bet is to keep a log of your receipts so your total deduction is easy to calculate at the end of the year. At the same time, take pictures of your receipts and save those files electronically in case the IRS needs proof that you purchased the things you say you did.

3. Travel costs

You may be asked to care for pets in their owners’ homes, as opposed to yours. In that case, you’re allowed to deduct the cost of getting to and from clients’ properties.

The IRS allows drivers to deduct $0.655 per mile when driving is done for business purposes. So if you drive 300 miles in the course of a year for pet sitting gigs, you’ll be entitled to a deduction of $196.50.

But as is the case with expenses, it’s also important to keep great mileage records. A good bet is to keep a notebook in your car that you update each time you drive for income-earning purposes. You’ll want to record the date of your trip, the mileage, and the name and address of the client you’re going to see.

Pet sitting through Rover could be a great way to earn a side income — or even a primary income. Make sure to claim all of the tax breaks you’re entitled to if you’re working a pet sitting gig.

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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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