Money Management

It’s sometimes possible to get items at Dollar General for a cent. Here are four steps you’ll need to take to make that happen. 

If you’re trying to keep your credit card bills down, buying something for a penny may seem like a dream scenario. After all, what could be friendlier to your bank account than purchasing an item you want or need that costs only a cent?

In today’s day and age, it may seem impossible to find anything to purchase so cheaply, but that’s not necessarily the case. In fact, it may be possible to find penny items at Dollar General.

That’s because the store has a system in which items that are supposed to be removed from stock are priced at $0.01. If employees do not remove these items from the shelves before the price adjustment happens, they’ll ring up for only a penny.

So, how can you find these items? Here are the steps you’ll need to take.

1. Go shopping on the correct day

Items are marked down to a penny only when it’s determined that they need to be removed from stock. Typically, this markdown process happens on a Tuesday, so if you want to be able to buy one of these deeply discounted products, you’ll want to go shopping then.

Since others may also be on the lookout for the penny products, it can help to go early in the morning before all of the items you might want are bought up.

2. Check the penny lists online

Penny items are not advertised, since they are not really supposed to be for sale at that price. This means you can’t just consult the Dollar General sales flyer to see what’s on discount. You also shouldn’t ask cashiers, as they not only won’t help you find the items but instead are more likely to remove them from the shelves before you can purchase them.

Since these products are like hidden gems, you’ll want a guide to discovering them — and there are a few lists online that can help you do that. The Krazy Coupon lady publishes a weekly list of penny items. You can also join Facebook groups dedicated to finding them.

Since penny items change regularly, you’ll want to check out these resources every week to see what’s on discount.

3. Load up your cart

When you are lucky enough to find a penny list item on the shelves, you should bring up as many of the items as you want to purchase.

As soon as you have alerted the store to the fact the items were left on the shelf, they will be pulled so you won’t have a chance to get any more of them. If they ring up for a higher price, you can just say you changed your mind.

4. Get lucky with your cashier

Finally, you need to hope that the cashier you have ringing up your items allows you to actually buy them. Official store policy is that they should not be purchased, so you may well be told you can’t actually get the item for a penny and may have to put the item back.

While there’s an element of luck involved in both finding the penny items and being able to buy them, it may be worth the effort to try if there’s something on the penny list you are excited about purchasing — or if you happen to be at Dollar General anyway.

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If you’re thinking of investing in an income-producing property, take the time to make sure you can legally rent it out. Read on to find out how. 

Real estate investment is one of the most profitable ways of investing money in today’s world. Rental properties offer long-term returns, and it’s a great way to build wealth. However, before you dive into the rental property business, you need to do your homework to ensure you’re making the right investment moves. It’s essential to ensure your investment follows all the laws in your area. Otherwise, you will be unable to rent out your investment property legally, leading to fines and potential legal action.

Know the regulations in your area

Before you even start looking for properties, you need to know the regulations in your area that govern rental properties. This means knowing the zoning laws, the building codes, and any other regulations that apply.

Local governments nationwide are increasingly implementing regulations to restrict individuals from renting out their properties for short-term stays.

Find out also if there are any homeowners association (HOA) restrictions that might limit your ability to rent out your property. It is important to know this information so you can make an informed decision about where to invest your money.

Short-term rental impact on the housing market

Short-term rentals (STRs) like Airbnb and Vrbo have increased in popularity in recent years. However, many cities have started to crack down on these rentals due to the impact they have on the housing market.

A recent article in the Harvard Law & Policy Review suggests that short-term rentals have a negative impact on the availability of affordable housing in two ways. First, when a housing unit that was previously occupied by a city resident is listed on Airbnb all year round, it is no longer available for long-term rent. This effectively takes the property out of the rental market and adds it to the supply of hotel rooms in the community.

The second impact is known as “hotelization.” Property owners have a strong incentive to list their units on Airbnb rather than renting to local residents if they can rent out a room for a lower price than a hotel room and still make a profit.

As a result, critics accuse STRs of driving up housing prices, reducing the availability of long-term rental units, and changing the character of residential neighborhoods.

Know the registration and permitting process

If you are allowed to rent out your property, you will need to register with the local government and obtain the necessary permits. Some require a home-sharing permit, some a tourist license, and others require you to pay a hotel tax and carry liability insurance.

The registration and permitting process varies depending on where you live, so do your research to find out what is required in your area. Failing to register or obtain the necessary permits can result in hefty fines. Make sure you do this step before you start renting out the property.

Determine the potential rental income

Once you are familiar with the regulations and have obtained the necessary permits, you will need to determine the potential rental income. Research the rental rates for similar properties in your area and calculate how much you can charge for your property.

You will also need to consider the expenses associated with owning a rental property, such as:

Mortgage paymentsTaxesInsuranceMaintenance and repairsProperty management fees

Understand the risks involved in owning a rental property

Owning a rental property comes with risks, just like any other investment. You may encounter difficult tenants, unexpected expenses, or a sudden drop in rental rates. Make sure you understand the risks involved before you invest in a rental property.

You may even want to consider hiring a property manager to take care of the day-to-day tasks like collecting rent and handling repairs.

Before you invest in a rental property, it’s important to do your research and understand the regulations in your area. Short-term rentals have changed the landscape of the rental market, so it is crucial to know if there are any restrictions or limitations on rental properties. Once you have ensured you can legally rent out an investment property, you need to determine the potential rental income and understand the risks involved in owning a rental property. Take the time to do your research, and you’ll be on your way to building wealth through real estate investment.

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You can tap a Roth IRA penalty-free to pay for college. But read on to see why that may not be such a good idea. 

If the idea of having to pay for college seems overwhelming to you, you’re certainly not alone. For the 2022-2023 academic year, here’s what average tuition and fees looked like, according to U.S. News & World Report:

$10,423 for public in-state college$22,953 for public out-of-state college$39,723 for private college

And these are just averages. If your child happens to pick a more expensive school, your costs could be even higher.

Ideally, you’ve been setting aside money to pay for college, either in a savings account, a 529 plan, or elsewhere. But if it’s not enough to cover your costs in full, then you may be tempted to tap your Roth IRA to pay for college.

The good news is that you’re allowed to take Roth IRA withdrawals penalty-free to cover the cost of higher education. The bad news, though, is that if you go this route, you might end up shorting yourself on retirement income down the line.

The problem with tapping your IRA early

Normally, tapping an IRA before age 59 1/2 results in an early withdrawal penalty. The rules here can be a little different with Roth IRAs, since these accounts are funded with after-tax dollars. In that case, you can commonly avoid early withdrawal penalties if you only touch the principal portion of your account, not the gains portion.

But do remember that the main function of an IRA, whether it’s a traditional or a Roth, is to save for retirement. And so when you remove funds for another purpose, whether it’s to pay for college or to buy a home, you leave yourself with that much less money for your senior years.

And remember, it’s not just your principal withdrawals you’ll be down. You’ll also lose out on investment gains.

Let’s say your Roth IRA delivers an average annual return of 8%, which is a little bit below the stock market’s average return over the past 50 years. Let’s also assume you take a $20,000 withdrawal at age 50 to pay for college expenses. If you’re not retiring until age 65, it means you’ve lost out on 15 years of gains in your retirement plan. The total damage? Almost $63,500.

Don’t put your retirement at risk

It’s natural to want to do your best to cover the cost of college in full. But if you raid your own savings to pay for college for your kids, you might end up short on retirement funds. That’s a risk you don’t want to take — especially when there are different options your kids can explore, whether it’s choosing less expensive schools, working during their studies, or a combination of both.

Also, recognize that if you take too much out of your savings to pay for your kids’ college, you might end up struggling financially in retirement. At that point, you might have to come to your grown children for money when they’re trying to establish families and careers. And in that situation, absolutely nobody wins.

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Keep reading to learn why your employees may be disengaged, and how you can adjust your strategies to retain the best workers. 

According to a recent Gallup study, “quiet quitters” make up at least half of the American workforce — and the number is likely higher. While this behavior may be subtle and go unnoticed for some time, it can have a significant impact on productivity and overall team morale. Here’s what quiet quitting is and how to reverse the trend.

What is quiet quitting?

Quiet quitting refers to a concerning trend in the workforce where employees lack motivation, interest, and engagement in their tasks. Instead of putting in the effort to do their best work, they merely fulfill the bare minimum requirements to get the job done.

Unfortunately, a significant portion of the U.S. workforce are silently disengaging, and it is highly probable that the numbers surpass the 50% mark. This behavior can lead to dissatisfaction and burnout, making it essential to tackle this issue before it worsens.

In fact, employees who are actively disengaged from their work have resulted in a staggering $7.8 trillion loss in productivity worldwide. This eye-opening figure amounts to 11% of the global GDP, negatively impacting companies’ bank accounts.

Why are workers quiet quitting?

Employee engagement in the U.S. declined further in the second quarter of 2022. While the percentage of engaged workers remained at 32%, the percentage of actively disengaged employees increased to 18%.

This means the ratio of engaged to actively disengaged employees is now 1.8 to 1, the lowest it has been in almost 10 years. The decline in engagement started in the second half of 2021 and coincided with an increase in job resignations.

The decline in overall employee satisfaction can be attributed to several factors, including a lack of clear expectations, limited opportunities for personal and professional growth, a sense of not being valued or cared for, and a lack of connection to the organization’s mission or purpose. These issues highlight a growing disconnect between employees and their employers.

Employees expect their organization to deliver on the promises made during the hiring process and throughout their careers. When promises are not upheld, individuals may lose trust and become disengaged with the organization.

How to keep your employees engaged

Gallup found that the quiet quitting crisis is a clear symptom of poor management practices. Having great managers who help to create the desired company culture is crucial in preventing employees from quietly quitting. Research shows that only one in three managers are actively engaged in their own work.

To address this issue, senior leadership needs to focus on reskilling managers to succeed in the new hybrid work environment. Managers must learn how to engage with employees in meaningful conversations to reduce disengagement and burnout. These conversations allow managers to gain insights into each employee’s unique circumstances, strengths, and goals.

Gallup suggests that managers should have at least one meaningful conversation per week with each employee to create stronger engagement and retention. Leaders should also take responsibility for ensuring a positive and motivating work environment for their employees. It may seem like a looming threat, but it can certainly be fixed. Make company culture your focus with the tips below.

Focus on your company culture

The key to keeping your employees engaged and productive also lies in your company’s culture. It doesn’t matter if you run an established company or just started your own business. Culture is essentially “the way things are done” at your company.

To improve your company culture, first define the culture you want. Then establish your core values and mission statement. These should encompass what your company stands for and what you hope to achieve. Involve your employees in the process and encourage open communication.

Next, make sure your culture delivers on its promises. Employees are more hopeful and excited about their jobs when their workplace promises flexibility, a great mission, and managers who care for them.

The culture of the organization needs to match what is being promised in order for employees to be satisfied. In other words, in order to attract and retain top talent, the promises you make about your culture need to align with reality.

It’s also important to note that your culture doesn’t have to be perfect. In fact, a company that acknowledges its imperfections is more genuine and trustworthy than one that pretends to be perfect. Building a successful employee experience means being authentic, inspiring, and in line with your employer brand.

Remember that it’s important to invest in your managers. Great managers play a crucial role in bringing your desired culture to life. Without them, your employees may become quiet quitters. Lastly, lead by example. Your actions as a leader set the tone for the entire workplace.

Make sure to prioritize a healthy work-life balance and reinforce a positive work environment. With consistent effort and dedication, your company can develop a strong and supportive culture that benefits everyone involved. Remember that your culture is the backbone of your organization, and it is essential to attract and retain top talent.

Businesses have a significant role to play in keeping their employees engaged and productive. By encouraging open communication, creating a positive work environment and culture, and keeping promises, businesses can improve their retention rates and boost productivity. In the long run, it’s worth the investment to keep good workers motivated and engaged as it can have a significant impact on the success of the business.

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Your buyer’s inability to secure a mortgage could kill a real estate deal. Read on to learn more. 

Most people can’t afford to purchase a home outright. That’s where mortgages come in.

If you’re trying to sell your home, you might end up getting an offer from a buyer whose closing is contingent on getting a mortgage. If that’s the case, in many situations, that mortgage will come through just fine and there won’t be a problem. But if your buyer’s mortgage ends up falling through, you’ll generally be back to square one.

Why might a mortgage fall through?

There are different reasons why a buyer might ultimately be unable to finalize their mortgage. Let’s say your buyer applied for a home loan at a time when their income was $75,000 a year, only to lose their job right after that application and get a new one paying just $65,000. A mortgage lender may not be willing to finalize that loan because it’s worried your buyer now doesn’t earn enough money to keep up with their ongoing payments.

It could also be that your buyer was delinquent on some bills after applying for their mortgage and their credit score took a dive. That could be enough for a lender to pull a mortgage offer.

In that situation, it may be that your buyer has the option to pay for your home in cash. If so, and they opt to do that, you can move forward with the deal. But otherwise, you’ll basically have to start over and look for a new buyer. And unfortunately, that puts you at a disadvantage, because the longer a given home sits on the market, the more bargaining power other buyers get.

And if you’re wondering whether you’re protected financially in this situation, the answer is that most home purchase agreements come with a mortgage contingency clause stating that if a buyer can’t secure a home loan, they can walk away from the deal and get their deposit back. So in that case, you don’t get much recourse as a seller.

A good way to avoid losing your buyer due to mortgage issues

If you’re worried about accepting an offer on your home only to have the deal fall through due to an inability on your buyer’s part to finalize a mortgage, the solution is simple — try to get a cash buyer. In 2022, a good 36.1% of home sales were cash-only, according to EZ Home Search. And these days, cash offers are also more appealing to buyers who have the money because mortgage rates are so high.

Of course, this doesn’t guarantee that you’re going to be able to find a cash buyer. So your next best bet may be to try to find a buyer who’s at least been pre-approved for a mortgage.

This doesn’t guarantee that their loan will be put in place, because things could change between the time of the pre-approval and when the mortgage is ready to be finalized. But it at least tells you that your buyer’s finances have been looked at by a lender, and they were in a good position at that moment to purchase a home.

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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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Keeping an emergency fund in stocks is a bad idea. Read on to see why. 

I’ve been building an emergency fund since my teenage years. Back then, I was maybe putting $20 away here and there since my only job was babysitting, but it was a start.

Since then, I’ve grown my emergency fund significantly, to the point where I now have enough money socked away to cover about a year’s worth of essential bills. And all of that money is sitting in my savings account.

These days, that’s not such a bad thing, seeing as how many savings accounts are paying somewhere in the ballpark of 4% interest. But for many years, my savings account paid significantly less than that. There was a point when I wasn’t even earning a full 1% on my money, and believe me when I say that was frustrating.

Still, I’ve never been tempted to keep my emergency fund in stocks. Here’s why.

It’s a risk I won’t take with my emergency fund

Today’s savings account interest rates aren’t really the norm. Like I said, there was a period where I was getting much less.

By comparison, over the past 50 years, the stock market, as measured by the S&P 500 index’s performance, has delivered an average return of 10%. That’s far better than what you’ll get in a savings account, even today.

But keeping your emergency fund in stocks is very risky for one big reason — you never know when the value of your stocks might decline. And you also never know when you might need to tap your emergency fund without warning.

So, let’s say you build a $10,000 emergency fund and stick that money in a brokerage account loaded up with stocks. What if the value of your stocks declines to $8,000, and you have to pull $8,000 out to cover a sudden home repair? At that point, you’re making that loss permanent. On the other hand, waiting out that loss might allow your portfolio to climb back up to $10,000.

What’s more, your stock portfolio might decline to the point where you’re not even covered for the emergency at hand. Let’s say you run into a $9,000 home repair bill, but your $10,000 emergency fund has fallen to $8,000. At that point, you’re not even able to access all of the money you need, and you’re at risk of having to borrow the remaining $1,000 in the form of a credit card charge you pay off over time.

On the other hand, when you put $10,000 in the bank, the only way it’s not going to be worth $10,000 is if you take a withdrawal. Otherwise, your money is guaranteed to be there, provided your bank is FDIC-insured.

It’s worth earning less of a return on your money

The idea of investing your emergency fund can be tempting, because putting that cash into stocks might grow it into a larger sum over time. But in going this route, you take a big risk. So a much safer bet is to keep your emergency fund in the bank, even if it means earning minimal interest. You can always invest funds you aren’t earmarking for emergencies, but your actual emergency fund absolutely needs to sit in cash.

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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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