Money Management

Want to make the most of your Costco membership? Then read on for some mistakes to avoid at all costs. 

Many people shop at Costco regularly. And if you’re one of them, you may feel that you’re a pro at this point. You know which aisles to hit to find the items you need, and you know exactly how to spot a Costco clearance sale (hint: look for those prices that end in “97”).

But even if you’re someone who shops at Costco frequently, it’s all too easy to fall into certain traps. Here are a few mistakes you may be making to this day without even realizing it.

1. Avoiding Kirkland products

If you’re a Costco regular, you’re probably well aware that you’ll find the Kirkland label on a host of products, from baked goods to spices to dairy products. But if you’re someone who routinely avoids Kirkland products because it’s not the brand you know and love, then you may be making a major mistake.

Not only do Kirkland products tend to be high in quality, but they can be substantially cheaper than their name-brand counterparts. And here’s the kicker — many Kirkland products are actually made by well-known brands.

Kirkland’s Signature House Blend Coffee in medium roast, for example, is made by none other than Starbucks. And this isn’t one of those facts you have to dig around the internet to learn about — it says so right there on the product’s label. So rather than write off Kirkland items, give them a try and see if they result in a lower credit card bill.

2. Shopping on weekends

Shopping at Costco can be overwhelming in its own right. Throw in the crowds that tend to emerge on the weekends, and it can make for a very frazzling experience.

A better bet? Shop at Costco during your lunch hour if you work from home and have that flexibility, or hit the store in the evening once work has wrapped up for the day. Being able to shop in a calm manner could lead you to make better decisions.

3. Passing up the free samples

You may be inclined to say no to Costco’s free samples because you don’t want to seem greedy. Don’t continue that practice.

Costco wants members to try its products for free because often, those samples lead to extra sales. But on your part, sampling food products could help you avoid wasting money. If you try a multigrain cracker that looks delicious based on the packaging but tastes vile, you’ll save yourself the needless bulk purchase.

4. Sticking to a basic membership

A basic Costco membership might seem sufficient for you, and at $60 a year, it may be a more appealing price point than the $120 you’ll pay for an executive membership. But upgrading to an executive membership could actually be a more financially sound move when you consider the cash back it puts in your pocket.

Executive members at Costco earn 2% back on all in-store and online purchases. So if you spend more than $3,000 a year at Costco, then an Executive membership makes financial sense. Take a little time to review your Costco spending over the past 12 months, because you might find that an Executive membership is worth paying for.

A Costco membership can result in a lot of savings — if you play your cards right. Aim to avoid these mistakes so you can make the most of yours.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

A government shutdown could affect hundreds of millions of workers and cost the economy tens of millions of dollars. Here’s how we got here again and what comes next. 

On Capitol Hill, lawmakers are gearing up for what has become a national tradition: haggling over government spending. If a decision cannot be agreed upon in the next two months, the government will be forced into a shutdown. Here’s what you need to know ahead of a possible shutdown in 2023.

What is a government shutdown?

Congress controls the pursestrings of the U.S. government, meaning the government generally cannot spend or promise money without the legislative branch’s say-so. The federal government’s new fiscal year begins on Oct. 1, and without an approved budget resolution, federal agencies will be unable to spend any money and will effectively shut down.

During a shutdown, Federal employees who are furloughed will see their personal finances tighten while being temporarily out of work. Additionally, private-sector spending by government agencies will be put on hold, as happened during the 2013 shutdown that reportedly cost the economy $24 million.

However, a government shutdown would not mean the end of all federal services. Programs like Social Security and Medicare are protected in the event of a shutdown. While some services, such as contacting your local Social Security office or applying for Medicare benefits would be restricted, monthly payments and medical benefits would not.

Read more: How Do Government Shutdowns Affect the Stock Market?

Playing politics

To be clear, government shutdowns are not uncommon. There have been 20 so-called “funding gaps” since the current budget approval process was put into place in 1976. Many of those funding shortfalls have lasted mere hours, culminating in compromise. But the 118th Congress has a handful of unique hurdles in the way of reaching an agreement before the Oct. 1 deadline.

As is common in budget proceedings, politicians on both sides of the aisle are playing politics with a must-pass bill. Specifically, some on the right flank of the Republican party are seeking to eliminate certain programs that do not match their ideology on social issues. The prospect is a non-starter for President Biden, who has threatened to veto any bill including such measures.

The power dynamic within the House has also shifted, in large part due to political drama revolving around Speaker McCarthy. To pass a bill, he will need to cobble together support from his already slim Republican majority — without getting thrown off by a bucking Freedom Caucus of far-right members. And Speaker McCarthy is in a vulnerable position, with only a few representatives needing to agree to call a snap vote to replace him. His failure to find common ground in a hostile House could spell a drawn out shutdown.

What comes next?

There is a lot of work to be done in the next two months to avoid a shutdown, not the least of which is reconciling a budget proposal between the two chambers of Congress. And while the Democratic-majority Senate has begun drafting a bill in earnest, the House has some work to do before it can stand behind a proposal of its own. If Congress can eventually agree on a spending bill, it will then require President Biden’s signature to become law.

In the meantime, federal employees should consider boosting their savings should a shutdown happen. Because funding will not run out until October, affected workers have a little time on their side to bolster their emergency funds and prepare for a temporary loss of income. A well-planned strategy today can help prevent the need to dip into retirement accounts or take on debt to fund daily expenses.

The drama that will play out in Washington over the next few months is an all-too-common display of political brinkmanship, but with an added twist. Social issues are taking center stage, and a divided House may be unable to reconcile its differences in order to put forth passable legislation. And for the half million federal workers whose livelihoods depend on finding a compromise, all eyes will be on the House over the next few months.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

A writer hopes to unload her home ahead of retirement. Read on to see why. 

When my husband and I first signed our mortgage, we took out a 30-year loan. Mortgage rates were fairly low at the time, but we felt more comfortable sticking to a 30-year loan to secure lower monthly payments.

But when mortgage rates plunged in 2020, we took the opportunity to refinance. And we weren’t the only ones to go this route. About 14 million home loans were refinanced between the second quarter of 2020 and the fourth quarter of 2021, according to the New York Federal Reserve.

But we didn’t simply refinance to a lower rate. We also swapped our 30-year loan for a 15-year loan. And while our mortgage lender did warn that we’d be looking at higher monthly payments because of that, we also set ourselves up to save a lot of money on interest.

Meanwhile, at this point, I only have 12 years left on my mortgage. So I expect my home to be paid off in full well ahead of retirement. But I also have no intention of keeping my home once my career is wrapped up. Here’s why.

It’s super expensive

Because my husband and I put a 50% down payment on our home, we’ve never had a particularly expensive mortgage. Throw in the ultra-low rate we currently have on our loan, and our monthly mortgage payments themselves are quite manageable. Rather, it’s the peripheral costs of homeownership, like property taxes, maintenance, and repairs, that eat up an uncomfortably large chunk of our money.

Not only is my property tax bill super high, but we’re constantly having to sink money into home repairs just to keep the place running. And we easily spend thousands of dollars a year on routine, predictable maintenance — things like lawn care and gutter cleanings.

Meanwhile, it’s common to cut back on spending once retirement arrives. And so I don’t see why I’d hang onto such an expensive property at a time when my budget may be more limited. Even if I’m not looking at mortgage payments in retirement, the cost of keeping this house could still be astronomical.

It’s larger than what I need

My home is hardly a mansion, but it does have five bedrooms and bathrooms. Since we’re a family of five, that’s not so unreasonable — it allows us to spread out and it gives me a room to use as my home office.

But I hope to be an empty nester in retirement because I want my kids to be independent and venture out on their own. And so I really don’t see the point in keeping such a large house if it’s just me, my husband, and, ideally, a dog or seven.

Some people work hard to pay off their homes ahead of retirement so they can live mortgage-free once their careers come to a close. I’m on track to meet that goal, but that doesn’t mean I intend to stay put. What I’d love to be able to do is sell my paid-off home and buy a less expensive one outright in an area where the property taxes aren’t so high. And if I end up with an extra chunk of money I can spend on leisure, even better.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More 

When writing a will, it’s important to ensure assets are distributed in a way that keeps the peace. Read on for tips to make a will that protects your family. 

Death is inevitable. We need to prepare ourselves and our loved ones for when it comes. Estate planning is an essential part of life that ensures the smooth transfer of our assets to our loved ones after we pass. However, creating a will can be a sensitive and emotional process.

It’s not uncommon for family members to fight over inheritance, leading to prolonged legal battles and damaged relationships. Here are some tips on how to create a will that keeps your family from fighting.

Discuss your intentions beforehand

Financial and estate planners stress the importance of parents discussing the aims and intentions of their estate plans with their children. This conversation will allow parents to set expectations.

RELATED: Personal Finance Guides

There is no need to reveal dollar figures or investment assets, as the key is to ensure the children understand the rationale behind the will. One suggestion is for parents to include side letters in their wills that are not part of the legal document, which explain their intentions.

This message serves as a final message to the children. Parents who give more assets to one child over others may be able to prevent misunderstandings if they explain their reasons in advance.

For example, if one child already received financial support for a home down payment, the parents can communicate why the assets will not be split equally. Parents need to emphasize that any unequal gift amount is not made due to a lack of affection for children who receive less.

Splitting up unique assets

Dividing up unique property can often lead to disputes among family members. You may have sentimental items that multiple family members have expressed interest in, or maybe there’s a piece of property that has sentimental value to one family member over the others.

Consider talking to family members beforehand to see if any items are particularly important to them. Some families use sticky notes to tag favorite heirlooms. Whatever the case may be, the key is to be clear in your wishes and make sure everyone is on the same page.

Utilize specific language in your will that outlines who gets what and under what conditions. If there is a disagreement, consider hiring a mediator or seeking legal advice to help resolve the issue before it becomes a larger problem.

Consider having an open dialogue with your family members beforehand to hear their concerns and explain your reasoning. You need to be specific and detailed in your will. List each item individually and state who you would like to receive them.

By taking these steps, you can help ensure your family stays united during a difficult time.

Preserving inheritance for blended families

The process can be even more complicated for blended families. It’s crucial to approach the division of your assets with sensitivity and thoughtfulness to avoid potential conflicts among family members.

Parents who have children from previous marriages must take extra care to ensure their children are protected financially. This is important, as stepchildren can be disinherited once a parent dies. It’s advisable to inform the children of these provisions.

Separate wills for each spouse can add a layer of protection, particularly the so-called “contractual” wills. In these wills, each spouse agrees that the surviving spouse does not have the legal right to execute a new will that cuts out the children of the deceased spouse.

This provision aims to ensure that each spouse’s assets are distributed according to their wishes and prevents the surviving spouse from making changes that cut other family members out of the will.

Bottom line

Creating a will that keeps your family from fighting is a sensitive yet valuable process. Parents must discuss their estate plans with their children to ensure they understand their intentions. Separate wills for each spouse can add an extra layer of protection, and including side letters in wills can provide clarity and help prevent misunderstandings.

Communication is key when it comes to estate planning, and taking the time to consider each family member’s needs and well-being can make the difference between leaving a legacy of love or a legacy of conflict.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More