Money Management

The USDA warns that a lengthy shutdown could have “serious consequences” for SNAP recipients. See how the issues in Washington could impact your food budget. 

Many SNAP recipients are looking forward to October. It marks the start of the new fiscal year and brings a slight increase to people’s monthly food benefits. But now there’s a catch. Before the start of each fiscal year, lawmakers in Washington need to pass certain spending bills. So far, that hasn’t happened. And sadly, the political wrangling could have an impact on your SNAP and WIC payments.

How a shutdown could impact your food benefits

If Congress can’t pass the necessary funding bills or some kind of stopgap measure before September 30, the government will shut down. A government shutdown would mean that many non-essential federal services would stop. Many federal workers will be sent home or work without pay.

Some benefits, such as Social Security, Medicaid, and veterans benefits, will still be paid during a shutdown. However, it would have a knock-on effect on all kinds of federal services, including the administration and payment of food benefits.

Here’s what you need to know about WIC and SNAP:

WIC: Women, infants, and children who receive extra assistance in buying nutritious food would be the first to feel the impact. Secretary of Agriculture Tom Vilsack told reporters that in some states, WIC funding would run out “within a matter of days.”SNAP: Vilsack says SNAP recipients should receive their increased October payment, but after that it could get sticky. “Now, if the shutdown were to extend longer than that, there would be some serious consequences to SNAP,” he said.

According to the Committee for a Responsible Budget, the USDA is generally only allowed to make SNAP payments for 30 days after a shutdown begins. That’s why people are worried about a prolonged shutdown. However, there are still ways authorities can keep the money flowing. For example, the Food Research & Action Center says there is a $6 billion contingency fund that could be used to fund SNAP in November.

How likely is a lengthy shutdown?

Before we get into the likelihood of a prolonged shutdown, it’s worth pointing out that the government is still open. Lawmakers still have a few days to find a temporary solution or pass the necessary funding bills. Unfortunately, political analysts say this is unlikely to happen, but it really would be the best scenario.

Shutdowns have happened before. Sometimes they only last a day or two, which has limited impact. But others have dragged on for weeks, and that is when ordinary Americans start to feel the bite. The longest was in 2018, when the country went 34 days without a number of federal services.

For SNAP recipients worried about a lengthy shutdown, there are no easy answers. If the government does shut down next week, it’s almost impossible to predict when it might reopen. Lawmakers will need to reach some agreements, and in the current political climate, consensus has been hard to come by.

That said, cooler heads may prevail. It hasn’t been very long since I wrote articles on another potential political disaster — the failure to raise the debt ceiling. That didn’t happen. This shutdown may also yet be averted, or may prove to be short lived. The trick, as we navigate these uncertain waters, is to know what storms could be on the horizon and prepare for them as best we can.

How SNAP recipients can prepare for a government shutdown

It has been a difficult few years for low-income households. Inflation hit a lot of families hard. And the end of the pandemic-related extra food payments was yet another blow to people’s bank account balances. I know it’s hard, but if you are able to put even a small amount of money aside in October, it could ease the impact of any payment delays.

Here are some steps SNAP recipients might take:

Get up to date with any admin: In the event of a shutdown, your local SNAP office may close or operate with fewer staff members. Act now if you have any queries or paperwork that needs processing.Prepare for a possible delay in your November SNAP payment: See if you can stretch your October SNAP dollars a little further and save some for November. If you’re able to make some extra cash by working extra hours, that could also make a difference.Check for unused cash back rewards: If you’ve been using a cash back app to get rewards for your grocery shopping, November might be the time to cash out those rewards.Look for extra assistance: If you can’t feed your family, find out what help you can get from local food pantries or soup kitchens. Anti-hunger NGOs are already gearing up for increased demand. Call United Way at 211 to find out about available support in your area.

Key takeaway

If you rely on SNAP benefits to keep food on the table, the idea of stretching your cash to accommodate yet another financial bump in the road may fill you with dread. It’s beyond stressful and frustrating to feel like you have no financial wiggle room, especially if you’re already struggling to keep on top of your bill payments.

The good news is that a government shutdown, even a prolonged one, won’t last forever. Your November SNAP payment may be delayed, but it will arrive eventually. You should also receive slightly more SNAP money in October. If you can carry that extra cash (and perhaps a little more) over, it might be enough to see you through.

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Moving is expensive under ideal circumstances. It gets worse when you make mistakes along the way. Here’s one writer’s experience. 

The last time I moved a large distance, I was significantly younger, and all of my worldly possessions fit into my car and could be moved in an afternoon. This time, it took multiple moving trucks and the better part of a month.

Oh, and money. So. Much. Money. More than $5,000 over my estimate, in fact.

Needless to say, I made some financial mistakes during this move. A lot of those mistakes cost me money. A few saved me money — but weren’t worth it. Here are some of my biggest money mistakes from my cross-country move.

1. Waiting too long to sell big items

I think we all have an overinflated sense of what our stuff is worth on the open market. We value it, so we assume someone else will value it, too. Often, someone else could value it, but you have to find them. This takes time.

Not only did I underestimate how much time it would take to sell our larger items, but I also vastly underestimated how much time we would have during the final weeks of our move to do so. (Spoiler: Basically none.)

When all was said and done, we lost out on potentially hundreds of dollars (if not more) in profit on some of our large items because we had to sell them now. Had we been wise enough to list and sell these items weeks, or even months, sooner, we could have waited for better offers and likely profited much more.

2. Not packing early enough

One of the most expensive mistakes we made this entire move — heck, I’ll even include the home-buying process before the move — was not starting to pack early enough. Sure, there were good reasons — traveling, buying a house, working, it all takes up your time. And really, how long could it possibly take to pack up a few rooms?

Ages. It takes ages.

By the time we were filling up the first truck (yes, first), only a portion of our house was packed. Since so many things were still in cupboards and closets, it was next to impossible to really gauge how much stuff there was. So, we guessed. And boy, did we guess wrong.

In the end, we needed an additional truck to carry it all. That led to a series of extra expenses and added thousands onto the cost of our move. Had we started packing earlier, we could have made better, more informed choices.

3. Using free boxes

One of the most common “hacks” you see advertised in every click-bait article about moving is to get free moving boxes from various stores. Considering moving boxes are $1 to $5 a pop (depending on size), this sounds like a great way to save a couple hundred bucks on a move.

Well, I’m here to say: If you value your mental health at all, don’t do this.

Alright, sure, if you’re like my younger self and it all fits in your car, by all means, use any boxes you can find. But if you’re moving anything larger than a single room, spring for the moving boxes.

Why? Because when all of your boxes are the same size and shape, they fit much, much better on a moving truck. Instead of playing a giant game of Tetris with all of your belongings, you can neatly stack everything in beautiful rows.

Additionally, moving boxes are so much easier to mark up. They tend to have spaces to write what’s inside them, including nice little checkboxes to indicate where they go. Totally beats trying to read what you wrote between the pictures of coconuts on that recycled booze box from the liquor store (experience is talking here, folks).

4. Toughing it out

There are a lot of sacrifices we make to save money, especially when it comes to big, expensive things like moving. Sometimes, relying on your own grit and perseverance can certainly help you save money. For instance, we chose to load and drive the moving trucks ourselves, easily saving thousands over the cost of professional movers.

But sometimes, toughing it out isn’t worth the savings. While driving the first truck up, we were certain we’d save time and money both by simply driving straight through. There were two of us, after all, we could just switch off and everything would be great.

Wrong. Driving a moving truck is exhausting — not just physically, but mentally, as well. And sleeping in a truck cab isn’t exactly restful, and it’s not any better even if you’re stopped at a rest area when you do it. In the end, we did save a little time and some cash on hotels, but we were in sad shape by the time we got to our destination. And we still had a truck to unload.

By the second trip, we knew better. We split it into multiple days with stops to sleep in real beds. We even took showers. When we got to our destination this time, we were in infinitely better condition. Worth every extra penny.

What I did right

While I made my share of mistakes, I did a few things right on this move. We comparison shopped our moving truck rental, for example, saving a couple hundred bucks. We also packed our own snacks and sandwich fixings, so we weren’t dropping a ton on fast food for the drive.

There were also a lot of excellent opportunities to maximize our credit card rewards. We used gas credit cards for the drive. Our grocery rewards cards paid for snacks. I even earned a welcome bonus paying for the first rental truck. Oh, and that second drive, with its rejuvenating hotel bed? Paid for with points from our travel rewards cards.

All in all, I think it’s fair to say we did more right than we did wrong. And we learned some important lessons to apply to our next move (hopefully a long, long time in the future).

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It is getting more expensive to insure your home, especially if your state is at risk of wildfires, tornadoes, or hurricanes. Find out how you can reduce your insurance costs. 

The U.S. has seen the highest ever number of billion-dollar disasters this year, and we’re only in September. According to the National Oceanic and Atmospheric Administration (NOAA), there’ve already been 23 separate climate-related catastrophes that cost more than $1 billion each. These include droughts, flooding, hurricanes, tornadoes, and wildfires.

The NOAA puts the total cost of the damage done by those disasters at almost $58 billion. That’s on top of untold harm to people’s lives and livelihoods, including over 250 fatalities. To put that figure in context, $58 billion is around $170 for every person in the U.S. It’s also higher than the GDP of countries like Tunisia and Jordan.

If you own a home, your homeowners insurance can cushion you financially against a host of unexpected events, including those of the climate variety. Unfortunately, that insurance is getting more expensive. Per Consumer Reports, S&P Global Market Intelligence says that homeowners insurance premiums are likely to increase by 7.1% this year.

Average home insurance tops $4,000 a year in these states

The cost of home insurance depends on a host of factors, including where you live, how you use the property, what condition it is in, and what the property is worth. As we’ll see, homeowners insurance in some states costs significantly more than in others. It’s particularly difficult to find affordable insurance in states that are regularly hit by extreme weather events.

The Ascent research shows that the average house price in the U.S. was $416,100 as of the second quarter of 2023. Taking that as a baseline, we looked at the coverage rates for $400,000 homes in each state. The average annual coverage rate nationwide comes in at $3,231 with a liability coverage of $300,000 and a $1,000 deductible, according to latest data from Insurance.com.

In tornado-prone Oklahoma, the most expensive state for home insurance, the average is almost double that. In fact, the average annual rates for homeowners insurance in the following 11 states are all above $4,000:

Oklahoma: $6,387Nebraska: $5,433Kansas: $5,427Arkansas: $4,598South Dakota: $4,596Mississippi: $4,578Texas: $4,529Missouri: $4,189Colorado: $4,142Alabama: $4,123Kentucky: $4,049

Extreme weather conditions and frequency of natural disasters are largely to blame for the high insurance costs in most of these states. It’s also worth noting that flooding is generally not covered by home insurance and so it has to be bought as a separate policy.

How to reduce your home insurance costs

Paying upward of $4,000 a year for home insurance works out to over $330 a month, which can be a significant chunk of your budget. It’s a cost most people can’t skip as mortgage lenders require you to have home insurance. Even if you could skip paying home insurance, it could turn out to be a devastating financial decision. Given that your home is often the biggest asset you own, it makes sense to insure it against unexpected damage.

All the same, here are three ways you might be able to cut your insurance costs.

1. Shop around

No matter whether you’re shopping for personal loans or insurance deals, it’s always worth getting two or three quotes. Each company will have offers that suit different groups of people, so take a careful look at what each one covers and decide which one is right for you. For example our best cheap homeowners insurance for Oklahoma shows the annual insurance costs can differ by over $1,000 a year, depending on the company you choose.

READ MORE: Best homeowners insurance companies

That said, do a bit of digging before you sign up with the cheapest company. Check for reviews online and ask friends or family for recommendations. There’s no point in shelling out thousands of dollars a year for an insurance policy that won’t pay out when you need it to. I’ve opted for the cheapest insurance in the past, but it actually wound up costing me more. I’d paid the premiums but then the company nickel-and-dimed me over a legitimate claim.

2. Bundle up

You can often swing decent discounts if you bundle your home and auto insurance and buy them from the same company. According to the Insurance Information Institute, you could save 5% to 15% if you bundle two or more policies together. If you’re paying upward of $4,000 in annual premiums, a 15% saving could come to $600 a year.

3. Increase your deductible

Your deductible is the amount you pay out of pocket before the insurance kicks in. It can be a dollar amount or a percentage. If you’re able to put enough cash aside to cover a sizable deductible, you can reduce your monthly premiums.

Let’s say your home is hit by a severe storm, damaging the roof. The repairs cost $15,000. If you have a $1,000 deductible, you’ll have to pay the first $1,000 and the insurance will cover the remaining $14,000. If you push the deductible up to $2,500, the insurance company would only pay $12,500.

Bottom line

Sadly, it looks like we are going to see more of these extreme weather events. That’s going to impact our lives in many different ways, one of which will be higher insurance premiums. Remember to factor the higher costs into your budget for the coming year, and don’t be afraid to switch insurance providers if you can get a better deal elsewhere. If you’re able to sock some extra cash into your home emergency fund so you could cover a higher deductible, this could also help to keep costs down.

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.

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Investing isn’t as hard as you might think. Discover one of the most common misconceptions people have about investing and why it’s incorrect. 

Investing is a great financial habit, but not everybody does it. In fact, about 39% of American adults don’t own any stocks, according to recent Motley Fool research.

For some people, it’s just a matter of not having any disposable income to invest. But I’ve talked to a lot of people about investing, and among those who don’t invest, the most common reason isn’t “I don’t have enough money.” Even friends on tight budgets have been able to invest a portion of their incomes.

Instead, when people tell me that they don’t invest, they usually follow up with “I just wouldn’t know what to invest in.” And my response is that you really don’t need to.

The most common misconception about investing

Many people think that if you want to invest, you need to pick the right stocks. They believe that successful investing is about finding the next Apple, Amazon, or Netflix. Unfortunately, those who aren’t confident in their ability to pick stocks often stay away from the market entirely.

But stock picking is only one way to invest. There’s also a much easier and more efficient way to invest. Instead of picking every stock yourself, you can put your money in a fund that invests your money for you.

One of the best ways to do this is with index funds, which are investment funds that seek to follow a market index. For example, there are S&P 500 index funds, which follow the S&P 500 (an index with 500 of the largest publicly traded U.S. companies). These normally have very low fees, and they spread your money across a large number of companies. You don’t need to worry about building a diverse portfolio, because the fund you choose does that for you.

So no, you don’t need to be good at predicting which companies are going to do well to be a successful investor. John C. Bogle, founder of investment company Vanguard, summed it up perfectly when he wrote, “Don’t look for the needle in the haystack. Just buy the haystack!” When you put your money in investment funds, you’re buying the haystack.

How to invest when you don’t know what to invest in

For most investors, the best option is passive investing. This is when you choose investment funds you like, and buy more of them every month. You can build a quality portfolio even with just a single investment fund this way, and it requires hardly any time once you set it up.

As far as which investment fund you should pick, here are a couple of good options:

You could invest in a target-date fund for your desired retirement year. For example, if you want to retire in 2055, choose a 2055 target-date fund. This type of fund does all the work for you, optimizing investments for your retirement timeline.You could invest in a total stock market or S&P 500 index fund. Either option will mean your portfolio largely tracks the U.S. stock market, which has historically grown by an average of about 10% per year. For what it’s worth, most of my money is in a total stock market Vanguard fund — and I write about stocks!

Every quality stock broker has these types of investments available. If you don’t have a brokerage account yet, head over to our list of the best online stock brokers to find one. Once you have a brokerage account, you can pick one or more investment funds you like. Then, just invest money on a consistent schedule, such as monthly or using money from every paycheck.

Investing doesn’t need to be hard work or take up a ton of time. You can get fantastic results with a target-date fund or with index fund investing. If you’ve held off because you aren’t sure what to invest in, don’t let that stop you anymore.

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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. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Netflix, and Target. The Motley Fool has a disclosure policy.

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Costco Travel offers rental car discounts, but is using your membership the cheapest way to rent a car? Find out the surprising truth. 

You may think of Costco as the place you go to buy $4.99 rotisserie chickens and toilet paper in bulk. But groceries and household supplies aren’t the only things you’ll score with your membership. You can also get discounts when you rent a car. Read on to learn how Costco’s car rental program works and whether it’s actually worth it.

The basics of renting a car through Costco

In addition to offering vacation packages and discounts on hotels and cruises, Costco Travel can help you save money on rental cars. Costco doesn’t directly rent out cars, but it partners with four companies — Alamo, Avis, Budget, and Enterprise — to offer car rentals at a discounted rate. You can get discounted car rentals no matter what tier of Costco membership you have, though Executive members score an extra 2% reward with their rentals.

Some other perks of renting a car through Costco:

You can add an additional driver for free at Alamo, Avis, Budget, and Enterprise locations in the U.S. In Canada, you’ll only get the additional free driver at Alamo and Enterprise, though. While the primary driver must be a Costco member, the second driver need not have a membership.You can cancel reservations without a fee using your online Costco Travel account.You can use Costco Travel’s search engine to find the best deal among all four companies.

The easiest way to book a car through Costco is to use the Costco Travel website and select “rental cars.” You’ll enter your ZIP code and pick-up and drop-off locations, times, and dates.

You’ll need to verify your membership when you book your rental card, but no credit card is required to make the reservation. When you pick up the vehicle, you can pay with any major credit card.

You’ll also be asked whether you’re at least age 25. If you’re younger than 25, you’ll still get the Costco membership discount, but you may be charged an underaged driver fee. Drivers who haven’t yet reached the quarter-century mark will also have to call Costco Travel directly at 1-866-921-7925, Option 1 to book instead of making reservations online.

Is renting a car from Costco really cheaper?

Of course, a number of factors determine how much you’ll pay to rent a car, including the type of car you’re renting, your rental dates, and your pick-up and drop-off locations. I searched Costco Travel along with Booking.com and Hotels.com to see how Costco Travel discounts would stack up if I were renting a four-door compact gas-powered car that holds five passengers from Nov. 20-Nov. 25, 2023, which is Thanksgiving week, from three major U.S. airports. I searched for options that let you pay at pickup and offer unlimited mileage and free cancellation.

Here’s how the three websites compared. Note that prices are for five days total.

Atlanta-Hartsfield International Airport

Costco Travel: $344 for a Toyota Corolla or similar vehicle (via Avis)Booking.com: $319 for a Ford Focus or similar vehicle (via Thrifty Car Rental)Hotels.com: $319 for a Nissan Versa or similar vehicle (via Thrifty Car Rental)

Winner: Tie between Booking.com and Hotels.com

John F. Kennedy International Airport

Costco Travel: $450 for a Toyota Corolla or similar vehicle (via Budget)Booking.com: $484 for a Nissan Versa or similar vehicle (via Sixt)Hotels.com: $484 for a Nissan Versa or similar vehicle (via Sixt)

Winner: Costco

Los Angeles International Airport

Costco Travel: $448 for a Toyota Corolla or similar vehicle (via Alamo)Booking.com: $190 for a Toyota Camry or similar vehicle (via Black & White Car Rental)Hotels.com: $292 for a Dodge Neon or similar vehicle (via NU Car Rental)

Winner: Booking.com

As you can see, Costco Travel was only the cheapest option in one of the three cities in this very unscientific experiment. One shortcoming is that Costco only has four car rental companies in its network, whereas Booking.com and Hotels.com were searching for deals with far more companies.

Should you rent a car through Costco?

The results above apply only to five days in November 2023 at three major airports in the U.S. When you’re renting a car, be sure to shop around. Plug your dates and location into several travel search websites and see what provides the best deal.

Some additional factors to consider beyond price:

What’s the additional driver policy? While Costco doesn’t charge for a secondary driver, some rental companies also allow you to add your spouse, domestic partner, or business partner at no extra cost.Will you earn loyalty points? You can earn 2% rewards with Costco’s car rental if you’re an Executive member, but many travel sites like Booking.com, Hotels.com, and Expedia have loyalty programs. It’s worth looking at the points you’ll earn through these sites, particularly if you’re a frequent traveler.Are there additional fees? Make sure you’re aware of any additional fees you could be charged, like cancellation fees, before you book a car, as well as the policy on refueling and mileage.

Whether you book a car through Costco or a different site, consider using a travel rewards card so you’re earning points wherever your next adventure takes 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.Robin Hartill, CFP® 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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