Money Management

Want a quick way to earn a $150-plus shopping spree at Costco? Check out these four little-known ways to get a Costco Shop Card. 

What’s better than saving money on bulk goods at Costco? How about earning a $150 Costco Shop Card on top of it?

Yes, although Costco doesn’t advertise it frequently, the warehouse retailer regularly gives out Costco Shop Cards, many of which are valued between $150 and $500. If you’ve been shopping at Costco for a while and haven’t earned one of these Shop Cards yet, here are four ways you might be able to claim yours.

1. Seasonal promotions

It’s safe to assume that at any given time, Costco is offering a Shop Card promotion. Many of these promotions, however, are time-sensitive and occur only around holidays or seasons. What’s more, Costco doesn’t always advertise the Shop Card promotion, which can make these deals difficult to spot.

For instance, we’re currently in Costco’s “Labor Day” promotional season, which might make you think Costco would attach Shop Cards to grills or outdoor furniture. Instead, you can earn a $200 Costco Shop Card by buying certain qualifying mattresses before its Labor Day promotion ends (Sept. 13, 2023). Yes, a mattress. Check in-store or online for more details, but many of its qualifying mattresses are made by Tempur-Pedic and are very competitively priced.

Sometimes the Shop Card promotion aligns perfectly with the season or holiday. For example, Costco was giving away generously valued Shop Cards at the beginning of summer for certain outdoor supplies, such as a Agio Prairieview Outdoor Dining Set (which came with a $500 Shop Card).

Perhaps the best way to stay on top of these deals is to check Costco’s website frequently. Sometimes, when you search “Costco Shop Card” in its search bar, you’ll find promotions that come with these gift cards. Other times, you’ll have to scroll through its “deals” and look for Costco Shop Card in the product description.

2. Trade in Apple devices

Costco has partnered with Phobio to let you trade in old Apple products — like laptops, tablets, and phones — for Costco Shop Cards.

In truth, Apple is likely going to give you more value for the same used products. For instance, I could trade in my laptop to Phobio — a 2020 13-inch MacBook Air — for a $265 Costco Shop Card. But if I trade it in through Apple, I can get $350 off my next Macbook or the same value in an Apple Gift Card.

It might make sense for your personal finances, however, if you don’t want Apple products or would rather spend that money at Costco. I would still do a comparison before you decide, however, as you might get more value through another trade-in company.

3. Costco Travel

If you thought resort vacations were for the rich and retired, Costco Travel is about to blow your mind. Through Costco’s travel portal, you can book affordable, but luxurious, all-inclusive resort vacations — flights, hotel stays, transportation, even food. And, yes, many travel packages come with Costco Shop Cards.

The value of the Shop Card depends on the final price of your travel. But many are above $150. For example, I was recently looking at a resort package for a hotel on Waikiki Beach, Honolulu, which would have cost $4,126 for a 7-night stay. The Shop Card for this package would have been valued at $172, which is a little more than 4% back on the purchase. That’s more than even some of the best rewards credit cards offer.

4. Costco services

Many of Costco’s services also give away Shop Cards with a purchase. The value is usually a percentage of the final price — like 10% — but given how much they typically cost, the value of your Shop Card will likely be over $150. Here’s list of some Costco’s services that give Shop Cards with a purchase:

Bath remodeling: 10% Costco Shop CardCabinet refacing: 10% Costco Shop CardCarpet & flooring installation: 10% Costco Shop CardCountertop installation: 10% Costco Shop CardGenerator installation: 10% Costco Shop CardGutter installation: 10% Costco Shop CardHome organization services: 10% Costco Shop CardHVAC installation: 10% Costco Shop CardSolar panel installation: 10% Costco Shop CardWater treatment: 10% Costco Shop CardWindow treatments: 15% to 20% Costco Shop Card

Get a Costco Shop Card on your first membership

Finally, Costco will often run Shop Card promotions for new members. For example, for its Labor Day promotion, Costco is giving out $30 Shop Cards for new members (those who haven’t had a Costco membership in the last 18 months) who elect for auto-renewal of their Costco membership. For current members on the hunt for Shop Card deals, I’d keep my eyes open as Black Friday and Cyber Monday get closer, as Costco may have some generous Shop Card promotions for these shopping days.

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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 Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

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On occasion, Sam’s Club offers deep discounts through Instant Savings. Here are some of September’s best deals. 

My husband and I moved last summer. Due to a combination of bad decisions on our part and a comically inept moving company, we lost thousands of dollars’ worth of possessions on the way from Missouri to Illinois. In fact, we’re still replacing items the movers left behind on the side of I-35, misplaced in their warehouse, or delivered to someone else’s home. As for the bent, dented, or otherwise damaged items, we’ve had to suck it up and make the best of the situation.

I repeat this story because I find myself in the odd position of shopping like a newlywed. I’m looking for deep sale prices on items first purchased years ago. Every couple of weeks, I realize something else didn’t make the move. Often it’s something small, like a meat thermometer or cookie sheet. But sometimes, it’s more substantial, like winter coats and boots. The steady stream of purchases has put a bit of a dent in the checking account.

It never occurred to me to check Sam’s Club Instant Savings this time last year. If it had, I suspect I would have saved a ton of money on the things I needed to replace. Whether you’re moving into your first apartment, recently purchased a home, or you’re shopping for the holidays, Sam’s Club pulled out all the stops with this month’s Instant Savings.

Quick confession: Calling them “this month’s savings” is a bit of an exaggeration. Sales prices end on Sept. 24.

KitchenAid 5.5 Quart Stand Mixer

Regular price: $380

Instant Savings price: $290

A friend of the family is known for giving KitchenAid mixers as wedding gifts. Coincidentally, she’s also considered by one and all to be the best wedding guest ever. In any case, feel free to gift yourself with this 5.5 quart stand mixer in one of five (seriously cool) colors.

The KitchenAid mixer does it all, from kneading dough to perfectly blending heavy, dense ingredients. Although I can’t explain the science behind it, I can tell you that it makes my baked good taste better.

Member’s Mark 6-Tier NSF Heavy Duty Wire Shelving

Regular price: $120

Instant Savings price: $100

Here’s what I’ve learned after 24 moves: You can never be too organized. Whether you have a large attic space, huge basement, or small storage unit, heavy duty shelves make it possible to make the most of each available square inch. These shelves measure 47.75″ wide x 18″ deep x 75.5″ high.

Member’s Mark Fliplock 4 Container Set

Regular price: $30

Instant Savings price: $24

Speaking of organization, we moved from a house with a fairly spacious pantry to a home with a small pantry. Very few of our storage containers made the move, so buying clear containers with airtight lids like these made all the difference. Not only do they look nice, but they allow me to store twice as much in half the space.

Ninja Foodi 6-in-1

Regular price: $160

Instant Savings price: $130

This air fryer is the first to feature two independent baskets that allow you to prepare two foods at once. Rather than waiting around, you can make salmon fillets and broccoli at the same time (or any combo of your favorite air-fried foods).

Everlast 5-Person Outdoor Spa

Regular price: $5,000

Instant Savings price: $4,000

Truth be told, I did not have an outdoor spa in the old house, but that doesn’t prevent me from dreaming of buying one for the new house. Here’s what’s great about this one (in addition to $1,000 off the regular price):

Seats up to five full-grown adultsHas two captain’s chairsIncludes a full-body loungerProvides 68 streams of soothing waterComes with adjustable multicolor LED water columnsSteps and a spa cover are included

If you’re not familiar with Instant Savings, it’s a membership benefit that provides additional savings to Sam’s Club members. Instant Savings are like flash sales, meaning available for a limited time only. You can access the most recent Instant Savings on the Sam’s Club mobile app or through your online account on SamsClub.com.

The truth is, you don’t have to experience a terrible interstate move to appreciate the value of Instant Savings. Savings are typically made available on a wide range of items, from laundry detergent to snow cone machines. If you need something, Sam’s Club is the place to check first.

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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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If you’re considering early withdrawal from your retirement accounts, you should rethink that decision. Find out more. 

If you’ve put money into a tax-advantaged retirement account, you need to leave it there until retirement. This is true whether the money is in your 401(k) or whether you opened an IRA with a brokerage firm.

While you may be tempted to withdraw money from your retirement accounts in certain circumstances — such as if you’re facing financial difficulties — you want to avoid early withdrawals if at all possible. Here are four reasons why.

1. You could incur a penalty

With very limited exceptions, if you take money out of a 401(k) or IRA early (before age 59 ½), you’re going to be hit with a 10% early withdrawal penalty. This is money you just lose to the IRS for simply not waiting until you’re at least 59 ½ years old.

In addition to the 10% penalty, you’ll be taxed on the distribution at your ordinary income tax rate. You could also owe both state and federal taxes. This significantly reduces the amount you get to take home. Say you withdraw $10,000, are in the 22% federal tax bracket, and pay 8% state taxes. You could lose around this much money to taxes:

$1,000 for an early withdrawal penalty$2,200 for federal taxes$800 for state taxes

You’d only end up with $6,000 in usable funds of the $10,000 you took out, with the rest going to the government.

2. You’ll miss out on compound growth

When you take money out of a retirement account early, it stops working for you. You lose out on all the compound growth you’d have benefitted from if you hadn’t withdrawn the funds early. That’s a huge loss, given the long timeline your money might otherwise have been invested for.

Say you took out that $10,000 around 30 years before retirement. If you’d left it alone and it had earned 10% average annual returns, it would have turned into $174,494.02. You will cost yourself a lot of money due to your early withdrawal.

3. Retirement accounts are protected

If you are really in financial trouble, you may still want to hold off on taking any money out of a retirement plan. Most tax-advantaged retirement accounts are protected in the event of a bankruptcy. That means even if you get your debt discharged, you’ll still be able to keep your retirement funds.

It would be a bad financial choice to withdraw money from these retirement plans, end up having to declare bankruptcy anyway because it didn’t fix your financial problems fully, and then lose retirement money you otherwise could have kept.

4. You need a big retirement account balance to have a comfortable retirement

Raiding your retirement accounts could have dire consequences in the future. Most seniors need to replace around 70% or more of their pre-retirement income, and Social Security replaces around 40%. Without a big retirement account nest egg that provides enough income to cover the rest of your costs beyond what Social Security can pay for, you could be in dire straits.

As a senior, it can be a lot harder to cope with a shortfall than when you’re young, working, and have options. So don’t steal from your future self by taking money from your retirement accounts early.

What can you do instead?

So, there are plenty of reasons not to take money out of retirement accounts early. But what can you do instead if you really need the money today? Here are a few options:

Look into affordable borrowing options: If you have a pressing need, could you use a 0% APR credit card or a personal loan to cover the costs and pay them off over time? Take advantage of government benefits: Programs like SNAP and Temporary Assistance for Needy Families can help you in hard times. Benefits.gov can help you identify assistance you may be eligible for. Talk to creditors: If you’re experiencing temporary hardship that’s preventing you from being able to pay bills temporarily, talk to your creditors about your options. They may be able to work out a payment plan or allow you to pause payments.Downsize: If you can’t cover your costs, consider moving to a cheaper location, selling your car and getting a cheaper used one, or otherwise scaling down your lifestyle. Better to do it now voluntarily than later when you’re forced into it as a senior. Take on a side hustle: The average side gig provides $483 per month in income. If you can pick up a temporary side job, you could potentially cover the costs you’re thinking of draining your retirement fund to pay for. Put off your purchase: If you don’t absolutely need to incur the costs right now, you shouldn’t be taking money out of your retirement plan to pay for them.

The bottom line is, you should not take money out of retirement plans if there are any other options, so explore these solutions first before even considering raiding your future funds.

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

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Where does your income fall relative to your fellow Americans? Find out how much the lower, middle, and upper classes are making. 

Incomes vary widely across the United States, with some people making many times the amount that others earn. If you’ve ever wondered how your personal finances stack up, and what “class” your income officially puts you in, here’s what you need to know.

What income do you need to be upper, middle, or lower class?

Based on 2021 data, here’s what you would need to earn in order to be in each class:

Lower class: This is defined as the bottom 20% of earners. Those in the lower class have an income at or below $28,007.Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744.Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131.Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.

Take a look at these numbers and see where you fall based on your own earnings. And remember, this is a snapshot in time — your earnings can change throughout your life, and so can your class designation.

Will your success be determined by your income and class?

It’s probably not a surprise that those in the upper classes or in the upper middle class do have a higher net worth than those in the lower class or the lower middle class. But the disparity is greater than you might think. While the median net worth of those with incomes of $149,132 or higher is $805,400, the median net worth of those in the lower class is just $12,000.

Your income impacts how easy it is for you to build wealth. If you make more money, it is easier to save it and invest it in a brokerage account where it can work for you. If you make less money, then you may struggle even to cover the necessities out of your checking account, much less to buy valuable assets that help you grow richer over time.

But that doesn’t mean people who don’t make a lot of money can’t be a financial success. A lot depends on what you do with the money you actually have, including how much you spend and how much you save.

There are plenty of people who make over $100,000 a year who live paycheck to paycheck, and plenty of people with incomes that put them squarely in the lower or lower middle class who have diligently saved and grown quite wealthy over many years.

Here’s how you can improve your standing

Don’t be discouraged if you aren’t in the class you hope to be. For one thing, you have opportunities to increase your income by taking the following steps:

Learning new job skills: You could obtain a certification, take part in a management training program at work, or take some classes to develop skills that may help you get promoted (such as computer training courses or public speaking classes), depending on your industry.Take on a side hustle: The average side hustle brings in $483 per month, which is a good amount of extra money that could make a meaningful difference in your income.Work some extra hours: If your company allows you to work overtime, take advantage of it, as many people are paid time and a half for overtime hours.Negotiate your salary: According to Pew Research, when workers negotiated for higher pay, 28% said they received the extra money they asked for and 38% indicated they were given more than originally offered but less than their ask. Whether you are getting a new job or staying at your current job but feel you’re underpaid, it doesn’t hurt to make a request for more money — especially if you can find salary data to back up the fact that others in your industry are paid more.

And even if your earnings never put you in the top 20% of earners, you can still have a rich life and end up with the financial security you deserve — especially if you prioritize saving as much as you can for as long as you can.

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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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