Money Management

Gearing up to move? Read on to see what it might cost you. 

The decision to move isn’t an easy one. There’s something to be said for leaving your comfort zone and getting settled in a new city or state.

But moving could also do a lot of good things for you. It could open the door to a better-paying job, a lower cost of living, and the opportunity to buy a larger home without being utterly saddled with mortgage debt.

The cost of moving will hinge on several factors, including:

How much stuff you haveThe type of stuff you have (bulky or fragile items might cost more to transport)The distance you’re moving

But it’s important to get a handle on your moving costs, especially if you’re also buying and closing on a home at the same time.

What does the average move cost today?

Data from Angi reveals that the average cost of a move today is $920 to $2,530 for a local move and $2,700 to $10,000 for a long-distance move. Clearly, these are pretty big ranges. So it’s important to get an estimate based on your situation. This especially applies if you’re moving at the same time you’re closing on a home.

When you buy a home, there are closing costs you have to come up with to finalize that loan. Now, the good news is your mortgage lender is required to disclose those fees ahead of time, so you won’t just show up to your closing and learn that you’re required to hand over a $6,000 check on the spot. Rather, your lender will tell you in advance.

But if you’re paying for closing costs and a move at the same time, it could easily add up to a lot. You need to know exactly what you’re in for.

Ways to save money on a move

There are certain steps you can take to make a move less expensive. For one thing, do your own packing. Some moving companies offer packing services that might save you time, but those will only add to your total tab.

It’s also a good idea to take inventory at home before you move and weed out those items you no longer really want or need. You may decide to sell or donate them ahead of time — the choice is yours. But the less you have to move, the less you’re apt to spend.

Timing your move strategically could also result in lower costs. In some cases, this may not be in your control. But generally, spring and summer are popular times to move (summer in particular). If you’re able to move in the winter or fall (especially the former), you might lower your costs.

Similarly, you’ll generally pay more to move on a weekend than during the week. If you’re able to take time off of work, a weekday move could result in a lower tab.

Finally, consider whether you need to hire professional movers at all. If you’re moving locally, you don’t have a lot of furniture, and you have several strong friends who own pickup trucks or larger vehicles, you may be able to pull off a move with their assistance. And thanking them in the form of a nice meal is apt to be less expensive than paying for a moving service.

Moving costs may be an unavoidable expense when you’re relocating, but it’s important to get a sense of what they’ll entail. This especially applies if you’re buying a home and also need to fork over money for closing costs.

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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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Are CDs truly risk free? Read on to see why that may not be the case. 

Money you have socked away to cover emergency expenses should sit in a savings account. That way, you have easy access to it at all times.

But if you have money you don’t need for emergencies, you might consider putting it into a certificate of deposit, or CD. The upside of going this route is that you’ll commonly snag a higher interest rate on your money compared to a regular savings account. And the interest rate you sign up with is guaranteed throughout the term of your CD (whereas the rate on your savings account could fall at any time).

Plus, as long as you limit yourself to a $250,000 deposit and your bank is FDIC insured, your principal CD deposit is safe. So if you put $10,000 into a CD and your bank fails, you’re guaranteed not to lose a dime of that $10,000.

But while CDs might seem like a risk-free endeavor based on all of this, the reality is that they can be more risky than you’d think. Here’s why.

You could end up getting hit with a penalty

When you open a CD, you’re committing to keeping your money there for a preset period. So if you cash out your CD early, you should expect your bank to impose a penalty.

Now, the extent of that penalty will hinge on where you bank and the duration of your CD. At Capital One, for example, CDs with a term of 12 months or less impose a penalty equal to three months of interest for cashing out early. Your bank might have a different policy, and it’s always a good idea to ask about penalties before opening a CD.

You can minimize the risk of facing a penalty by laddering your CDs rather than putting all of your extra cash into a single one. In the case of a $10,000 deposit, dividing it into four and opening 12-month CDs in the amount of $2,500 each at three-month intervals will have portions of your money freeing up regularly. But even then, you risk an early cash-out penalty if your financial circumstances change and you need that money immediately.

You could lose out on growth

The nice thing about CDs is that you don’t risk losing out on principal the same way you do by investing your money. But instead, you face another risk — not meeting your financial goals in the long run due to limiting your money’s growth.

Over the past 50 years, the stock market’s average return, as measured by the S&P 500 index, is 10%. If you put $10,000 into CDs over the next 20 years that pay you 5% interest (which is feasible today but a high rate historically), you’ll end up with about $26,500. Invest that money in stocks over 20 years at a 10% return instead, and you’ll be looking at a little more than $67,000. That’s a huge difference.

CDs are generally considered to be a risk-free option for parking your cash. But be mindful of these pitfalls before you commit to one.

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

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Job security is one of the biggest worries as a recession approaches. However, people working in these 38 jobs have less to worry about than most. 

There is no such thing as a recession-proof job. It would be nice, but the economy doesn’t work that way. However, there are jobs that have historically been safer than others — professions that have managed to ride out recessions without receiving the dreaded pink slip. Here are 38 jobs less likely to be cut as the country fights economic headwinds.

Healthcare providers

Recession or not, people are going to continue to have babies, undergo medical treatments, and catch the flu. Healthcare providers tend to land on their feet when a recession hits. In addition to doctors, these professionals are likely to make it through the next recession unscathed.

NursesPhysician assistantsRadiographersMental health providersMedical technologistsLaboratory technologistsHealth care administratorsPharmacists

Public safety workers

The folks who work to ensure our safety are not only in high demand, but they’re also less likely to feel the sting of job loss during a recession. Here are some of the professions included on that list.

Law enforcement officerFirefighterEmergency medical technicianCorrectional officerSecurity guardOccupational health and safety specialist

Utility workers

We may try to cut back on our energy use during a recession, but we still need access to utility services. That means we still need utility workers to keep things running smoothly. Here are some of the utility jobs that may not be 100% safe during a recession, but are pretty darn close.

Power linemanUtility managerSafety engineerPower plant managerWastewater engineerGas or pipeline controllerPower plant or substation engineer

Educators

There’s nothing easy about being a teacher at any level, but teaching does tend to provide a secure income, even during recessions. From kindergarten through college, educators are necessary to expand the knowledge and capabilities of their students. In addition, here are some of the other school-related workers who tend to remain employed during economic downturns.

School administratorsOffice workersParaprofessionalsFood service personnelJanitorial staffBus drivers

Legal professionals

Not all jobs in the legal profession are safe during a recession, but legal professionals overall are more likely than not to keep their jobs. Courts continue to operate no matter what’s going on economically, keeping most of these professionals safe.

JudgesAttorneysParalegalsCourt clerksCourtroom securityCourt reportersLegal assistants

Social workers

Child neglect, drug abuse, elder abuse, and other societal woes often get worse during times of economic stress. It’s social workers who walk into messy, sometimes dangerous situations to deal with the aftermath.

Due to the important work they do, social workers are likely to continue depositing paychecks into their checking accounts throughout a recession.

Funeral home directors

There’s a (morbid) joke about a funeral director who decided the funeral home’s advertising slogan should be, “My day starts when yours ends.” While funeral directors probably do not find the joke funny at all, there is some truth to the slogan.

No matter what’s going on, people will die, and families will require the services of funeral homes. Loved ones may cut back spending on fancy caskets and huge flower arrangements, but they will still need wakes, burial plots, and cremation urns.

If you’re concerned

If you find yourself worrying about job security to an unhealthy degree, you may want to consider a job change. According to Emeritus.org, the safe bet is looking for a job that will remain in demand during a recession. Some of the most common “hard skills” in-demand businesses are looking for are:

Project managementDigital marketingData analyticsCodingTechnology know-how

If you have access to a computer, you have access to free training in these fields. The best thing about taking a free course is that you’ll get a sense of whether you enjoy what you’re learning enough to pursue a job in the field. Here are a few examples of free online courses.

Coding: Five 15-minute daily lessons from CareerFoundry.Digital marketing: You can find a list of more than 40 free online digital marketing classes here.Data analytics: MLTut.com provides insight about seven free data analytics courses.

Whether your job feels secure or not, it’s a good idea for all of us to prepare for the next recession. That could involve paying down debt, boosting your emergency savings, and finding ways to save money on purchases.

RELATED: What Is an Emergency Fund and Why Do You Need One?

As awful as recessions feel, they don’t last forever. In fact, the average recession has lasted 14 months, while the average period of economic recovery and growth has lasted 47 months. In other words, there are always better days ahead. The key is to get through a recession with your nerves and personal finances intact.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Dana George has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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There’s a step you can take to ease the burden of child care costs. Read on to find out what it is. 

There’s a reason soon-to-be parents are advised to save money before bringing children into the world. The cost of child care can be exorbitant, and it only seems to rise over time.

An estimated 67% of parents spend 20% or more of their household income on child care, according to recent data from Care.com. And on a national level, it costs an average of $284 a week to put a child into daycare. That’s up 53% from 10 years ago, when the average cost for a week of daycare was $186.

If you’re struggling to keep up with child care costs, you may be wondering if it’s even worth it to hold down a job. And the answer will depend on your household’s situation.

For many people, giving up a job means giving up health insurance coverage. And the cost of securing coverage independently could be astronomical. So some parents might decide to stick with a job for that reason alone, even if child care costs virtually eat up their entire paycheck.

But there’s one step you might be able to take to lower your child care costs in the form of tax savings. So it’s worth seeing if it’s an option your employer offers.

When you get a tax break on child care

The ability to lower your taxes is huge, as it could put a lot more money back in your pocket. And that’s why it pays to see if your employer offers a dependent care FSA.

Many people are familiar with an FSA, or flexible spending account, in the context of healthcare expenses. But there’s a dependent care version that allows you to sock away up to $5,000 a year for child care costs if you’re single or married and filing a tax return jointly. If you’re married but file a tax return separately from your spouse, then your dependent care FSA limit is $2,500.

As is the case with a healthcare FSA, to use a dependent care FSA, you must show proof that you’re paying for child care. A statement from your daycare provider, for example, will suffice. And you also have to use up your plan balance every year or risk forfeiting funds. But seeing as how expensive it’s gotten to put a child into daycare, if you’re paying somewhere in the ballpark of $284 per week, you should have no problem spending down a $5,000 balance in a year.

Also keep in mind that this $5,000 balance is per household, not per child. If you’re married and filing jointly with three kids, you get the same $5,000 limit as a household in that boat with one child.

A benefit worth exploring

A dependent care FSA won’t lower the cost of child care. But you can fund one of these accounts on a pre-tax basis to shield some of your income from the IRS.

As an example, let’s say you put $5,000 into a dependent care FSA this year and your tax bracket based on your earnings is 22%. Your FSA would save you $1,100.

Usually, you have to fund a dependent care FSA before the start of a new calendar year. But if you didn’t sign up for a 2023 dependent care FSA last fall when your employer offered that option, but you had a baby in 2023, then you should be allowed to participate now because of that qualifying life change. Talk to your benefits department to see what options are available to 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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Tired of sky-high Costco tabs? Read on for ways to start spending less. 

For many people, the primary purpose of having a Costco membership is to save money on everyday needs, like foods and household supplies. But if you’re someone who tends to go overboard with Costco shopping, then your membership may be hurting your finances rather than helping them. If that’s the case, here are a few steps you can take to break that cycle.

1. Make shopping lists

It’s easy enough to get distracted when shopping at Costco, since those warehouse club stores are utterly massive. But a good way to stay on track is to make a shopping list before you visit Costco and carry it around with you. Staying focused on the things you need could help you avoid impulse buys.

That said, your lists shouldn’t be thrown together randomly. Actually look through your pantry and fridge before heading to Costco. You don’t want to buy a bulk pack of eggs if there’s a carton hidden in the back of your fridge that’s mostly full.

2. Don’t go into aisles you don’t need

Some people shop at Costco by wandering in and out of every single aisle in the store. That’s a good way to spend extra money. A better bet? If you don’t have a need for a given Costco aisle based on your shopping list, don’t set foot in it. Period.

Sure, you might enjoy “just seeing what’s there” or scoping out new items on the shelves. But if that leads to extra spending, then it’s not worth doing.

3. Only shop with cash

There are different ways you can pay for purchases at Costco. The warehouse club giant will accept any Visa credit card you have, plus debit cards, personal checks, and cash. But if you’ve been known to overspend at Costco, then you may want to leave your credit cards behind when you go there and only bring enough cash to cover the items you’re planning to buy based on your list.

Of course, the problem with paying in cash is that you forgo the perks that come with using a credit card, like getting to score cash back on your purchases. But if you have an Executive membership at Costco, you can earn 2% back on all of your purchases regardless of how you choose to pay for them. So either way, you get an opportunity to earn money back on the things you’re buying.

Don’t let your Costco membership become a negative thing

The whole point of joining Costco is to enjoy savings on groceries and household essentials, plus the other items you might need to buy there, like apparel. So the last thing you want is to ruin that by overspending at the store on a regular basis.

But if you take these tips to heart, you may find that you’re able to avoid needless or impulse purchases and just stick to the basics. That could work wonders for your finances at a time when things are still pretty expensive across the board thanks to higher inflation.

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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 and Visa. The Motley Fool has a disclosure policy.

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The Costco Executive membership costs $120 annually and earns 2% in cash back. Learn whether two people can make it work. 

Recently, my spouse and I were checking out at Costco when we were flagged by an employee as good candidates for the Costco Executive membership — you know, the membership that costs twice as much as a Gold Star but earns 2% back on all Costco purchases (up to $1,000 in rewards per 12-month period).

She offered us the Executive membership for $50, which on top of the $60 we already paid for the Gold Star membership, would make our annual Costco membership $110 — $10 cheaper than if we had purchased the $120 Executive membership outright. What’s more, she said Costco would refund the $50 if we didn’t get at least $50 in cash back during our first year.

We signed up. But it got me thinking — is an Executive membership really worth it for two people? Let’s take a look.

You have to earn at least $60 back

On paper, a Costco Executive membership is definitely worth it if you and your partner can earn back at least the price of your annual membership dues. In my case, the difference between Gold Star and Executive was $50, but usually it’s $60.

Since you earn 2% cash back with an Executive membership on Costco purchases (up to $1,000 in total rewards), you would need to spend at least $3,000 per 12-month period at Costco to earn $60 back, which comes out to $250 per month. We spend about $350 at Costco each month, so the membership could save us money, as we would earn $84 on our annual spending — or $24 after we factor in the $60 membership dues.

For perspective, here’s how much you can earn for different monthly and annual spending.

In addition to the 2% back, an Executive member also gets access to special perks, such as free roadside assistance with Costco auto insurance, additional travel benefits, and lower prices on check printing, car buying, and water delivery.

Now, to be fair, these perks aren’t especially compelling to me, as I don’t have car insurance through Costco nor do I write many checks. But they might add additional value to you, if you’re already using some of these services.

It won’t hurt to try the Costco Executive membership

The good thing about an Executive membership at Costco is that if you’re unsatisfied, you can downgrade at any time and get a prorated refund. So if you decide after six months that you don’t like the Executive membership, Costco will give you $30 back and leave you with the Gold Star membership again.

That said, you really don’t have any reason to downgrade. If you don’t earn enough cash back to pay for the membership, Costco will automatically refund you the difference. So if you only earn $30 after one year of shopping with an Executive membership, Costco would put another $30 in your voucher.

So it really doesn’t hurt your personal finances to try. The best outcome is that you’ll earn enough cash back to more than pay for the membership, plus get access to special discounts and deals you won’t find anywhere else. The worst outcome is that you get refunded for your membership, which is basically the same as the best outcome. As for my family of two — we’re almost a family of three, so we’re pretty confident this membership will pay for itself.

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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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