Money Management

A writer owns up to a big blunder she makes with food shopping. Read on to see how she’s addressing it. 

Years ago, my husband and I made the decision to spring for a second fridge. We found that a single fridge made things tight given our family of five, and also, we were constantly running out of room every time we were scheduled to host a party or holiday gathering.

I don’t remember how much we spent on that second fridge, but I remember getting it on sale and therefore not racking up a massive credit card tab in the process. And since setting up that fridge in our basement, it’s been easier to do our food shopping, especially because we tend to shop at Costco on a weekly basis. That second fridge allows us to store our perishable Costco hauls with ease, and it also saves us trips to the store.

Case in point: My family can go through up to three gallons of milk per week, and buying our milk at Costco saves us money. But there’s no way we have room for more than one gallon at a time in our main fridge. Thanks to our second fridge, we can buy extra milk when we go to Costco without having to worry about there being enough space.

But while my second fridge has certainly come in handy through the years, there’s one pitfall I’ve run into. And it’s probably cost me hundreds of dollars on a yearly basis.

When you don’t actually check the second fridge

I’ve gotten into the habit of giving my main fridge a quick look before hitting the supermarket to make sure I’m not buying things we already have. But even though my basement really isn’t all that far away (I mean, it’s a short flight of stairs, nothing more), somehow, I constantly find myself forgetting to check my second fridge before running out to the store.

In fact, it would be fair to call it a mental block more so than laziness. I usually walk/run five miles a day or more, so I can swing the 10-foot walk down to the basement. But for some reason, I’m always forgetting to check that fridge, and as a result, I frequently buy things I’m convinced we’re out of when, in fact, we’re not.

A solution is in the works

When I say I waste a few hundred dollars a year on duplicate grocery purchases, I’m perhaps being a little hard on myself. It’s more that I spend a few hundred dollars extra on groceries we technically don’t need, but once I realize my mistake, my family makes an effort to consume that food. So most of the time, it doesn’t actually go to waste.

In fact, Americans waste an astounding 120 billion pounds of food every year, according to Recycle Track Systems. I really don’t want to add to that problem, so sometimes, we’ll pivot accordingly when I’ve bought something needless, such as having pancakes for dinner.

But still, I’d rather break this habit. And since my brain can’t seem to comprehend the notion of walking downstairs before running off to the store, my husband has begun to implement a solution.

Not so long ago, he created a shared list I have access to on my phone of the items in our second fridge. So now, for those times when I arrive at the supermarket and realize “d’oh, I forgot to check the fridge again,” I can instead just pull up that list on my phone and make sure I’m not buying anything on it.

Of course, this system will only work well if my husband regularly updates that list. And to be fair, I should help out there, too.

The point, however, is that it’s silly of me to spend extra money on food we already have. And since I seem to have this mental block that prevents me from checking our second fridge, this seems like the next best solution.

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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. The Motley Fool has a disclosure policy.

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If you lose your debit card, you need to contact your bank ASAP to avoid being held responsible for charges. Find out more here. 

Losing your debit card can be a huge problem. This card is directly linked to your checking account, which means thieves could potentially access the money in your account. While they won’t be able to take cash out of an ATM without your PIN (which hopefully wasn’t written anywhere near the card), they may be able to use your card like a credit card to pay for purchases.

You don’t want to find yourself out money due to a lost debit card, so here’s what you should do if this happens to you.

Report the loss to your bank ASAP

If you have lost your debit card, you need to take action immediately and report it to the bank as soon as you realize that you do not know where the card is.

You are protected by federal law against being held responsible for fraudulent charges once your card has been reported as lost. But if you do not report the missing card promptly and someone uses it to buy things or access your cash, you could potentially be held responsible for any charges incurred prior to the time you let your bank know the card was out of your control.

Your bank statements or your bank’s website should provide a customer service telephone number that you can call to report your lost debit card. You should also think about putting this information into the contacts on your phone before your card is lost, so you’ll be ready to make a swift report if you do find yourself missing it.

The Federal Trade Commission recommends following up your phone call reporting the loss with a written letter. This will create a paper trail in case there’s a question of whether you actually alerted the bank once the card was out of your hands.

Keep a careful eye on your account

As soon as your card has been lost, you should start keeping a very watchful eye on your bank accounts. You should sign into your account balance right away and at least everyday thereafter for a while.

When you sign into your account, be on the lookout for charges or withdrawals you did not authorize. If you find them, alert your bank immediately both via phone and with a written follow-up. This can help protect you from being held responsible for the financial loss resulting from misuse of your card.

Find an alternative way to access funds until a new debit card is sent to you

Finally, you are going to need to figure out how you’re going to gain access to your money in your bank account until you get a new debit card. If you have a branch close to you, you may be able to visit and make a manual withdrawal from a teller. You could also write yourself a check and cash it, or initiate an online transfer from your bank with the missing card to another financial institution where you have an account.

Unfortunately, taking all these steps can be a hassle. But losing a debit card can happen to anyone, and if it happens to you, you’ll want to act quickly to avoid suffering major financial losses as a result of your card loss.

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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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This writer is putting off home improvements for the time being. Read on to see why. 

When my husband and I purchased our home years ago, we opted to buy new construction. And the benefit there was not having to make many improvements during the early years.

But at this point, our house isn’t so new. And there are certain projects I wouldn’t mind tackling, like redoing my kitchen.

But there’s a big reason I’m not going to be making home improvements anytime soon, and it’s not due to a lack of money. I have the cash in my savings account to pull off the short list of projects I have in mind, including having work done on my kitchen.

Rather, the reason I refuse to make home improvements in the near term is that my property tax bill has risen substantially over the last decade. And I don’t want to see it rise further.

The hidden cost of home improvements

When you take on a home improvement project, you clearly have to cover the expenses involved. But there’s a lesser-known cost of renovating your property, and it’s getting stuck with higher property taxes as a result.

Your property tax bill is based on your home’s assessed value. So the more improved your home is, the higher an assessed value it’s likely to have.

Meanwhile, I happen to live in New Jersey, which has the highest property taxes in the nation. In fact, for many years, my property taxes actually cost me more than my mortgage. The only reason I’m paying slightly more on my home loan every month is that I refinanced my home loan in 2020, when mortgage lenders were offering up ultra-low rates.

In swapping a 30-year loan for a 15-year loan, I raised my monthly payments a bit, but it was worth it for the interest savings. So at this point, my monthly mortgage payments are only slightly more than what I owe in property taxes.

But even a modest property tax hike would flip things around, and I’m not looking to have that happen. As such, I’m going to hold off on renovating.

Another reason I’m waiting to do home improvements? Property values are up in general right now due to the state of the housing market. So the reality is that my property taxes could go up soon even if I don’t fix up my home at all. I’d rather not pile on by making improvements.

A big expense to plan for

The fact that I pay a lot in property tax isn’t a shock. I knew when I moved to New Jersey that the state had the highest property taxes in the U.S.

But what was a shock was the extent to which my personal property taxes have risen over the past 10 years and change. And at this point, I really don’t want to do anything to drive that expense upward. As such, I’m okay with holding off on renovations.

Besides, as much as part of me wants a new kitchen, mine is perfectly functional, so it’s not so easy to justify the expense. And redoing a kitchen is a huge undertaking. So while not wanting to increase my property taxes is the main reason why I’m holding off on that, the associated upheaval that might ensue — like not being able to cook for weeks on end — is also a factor.

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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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A side hustle could not only boost your income, but score you some tax breaks. Read on to learn more. 

There are plenty of good reasons to get a side hustle, like being able to boost your savings account balance or pay down pesky debt. And if you opt to get a side hustle this year, you’ll probably be in good company. That’s because as of last year, a good 40% of Americans were working a side hustle, according to data from Zapier.

But while it’s clear that a side gig could work wonders for your bank account, it could also benefit you from a tax perspective. Here are a few tax breaks you can enjoy when you work a side hustle in a self-employed capacity.

1. You can claim a deduction for equipment and supplies

If you buy a new laptop to play around on for non-work purposes, then you can’t claim that expense on your taxes. But if you have a side hustle that involves writing content or designing websites, and you’re buying a laptop to make that work possible, then that device becomes a deductible expense for you.

The IRS allows you to deduct the cost of equipment and supplies needed to uphold your side gig. This means that if you have a dog-walking business and buy treats for your furry friends, you can write off the cost of doing so.

2. You can deduct the cost of services you pay for to do your work

If you’re a content writer, you probably need an internet connection to do research and submit your work. As such, you can deduct the cost of paying for internet service on your taxes, and that holds true for any other service you pay for that enables you to earn a side income. So if, for example, you have a pet care business and you take a course in dog training to get better at what you do, that could be an appropriate expense to deduct.

3. You can deduct travel costs

You may need to travel, whether a short distance or a long one, to maintain your side hustle. And travel costs are considered a deductible expense.

So if you’re a dog-walker and you drive all over town to clients’ homes, you can claim a mileage deduction, provided you keep good records for the IRS. And if you’re a web designer and need to board a train to travel 150 miles to meet with a client, that ticket cost is deductible, too.

4. You can contribute to a SEP IRA

Saving for retirement in an IRA is a good way to enjoy a tax break on your contributions — at least with a traditional IRA, not a Roth, which is funded with after-tax dollars. But both traditional and Roth IRAs max out at $6,500 this year for savers under age 50 and $7,500 for those 50 and over.

If you work a side hustle in a self-employed capacity, it renders you eligible to contribute money to a SEP IRA. A SEP IRA allows you to contribute more toward retirement than a traditional or Roth IRA. This year, the limit is $66,000, though the amount you’ll be allowed to put into one of these accounts will hinge on your self-employment income.

Working a side hustle could open the door to a host of tax breaks. But to be clear, the above benefits will only apply if you’re self-employed in the context of your side hustle. If you’re put on somebody’s payroll as a part-time worker, the rules work differently. And if you’re not sure what tax breaks to claim, it’s best to consult an accountant who can tell you what benefits you are and are not eligible for.

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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 become a Costco Executive member, you can get exclusive discounts and cash back. Find out about more little-known perks of an Executive membership. 

When you become a Costco member, you’ll need to decide if you want a Gold Star membership that costs $60 per year or if you want an Executive membership that costs $120.

The most obvious benefit of the Executive membership is that you receive a 2% annual reward on qualifying Costco purchases. But there are some lesser-known benefits for Executive members as well. In fact, here are four perks you may not know that Executive members get exclusive access to.

1. Cash back on travel purchases

Costco Travel provides the chance to get deals on vacation packages, rental cars, hotels, and other travel-related services. And Gold Star and Executive members get to take advantage of these bargains so the trips they take will cost them less on their credit cards.

But, Costco Executive members get an extra perk that standard members are not able to take advantage of. Specifically, those with an Executive membership can claim their 2% cash back rewards on travel.

This is a huge benefit, especially when purchasing an expensive trip. If you charge $1,500, for example, a 2% cash back bonus from Costco would mean you end up with $30 coming back to you. That could pay for a meal out on your vacation.

If you can get cash back from Costco and a travel rewards card, you can double dip, getting 2% back from the warehouse club as well as whatever cash back your card issuer offers. This could mean you end up getting a good amount of money coming back to you. This cash back can significantly reduce your out-of-pocket spending on your vacation.

2. Extra savings on checks

Buying checks is not a very fun purchase, and the price of them can add up — especially if you routinely write checks and need to order them often. The good thing is, Costco offers discounts on checks through its partnership with Harland Clarke Check Printing.

While many of the checks are already a little bit cheaper than what competitors charge, Executive members score even more savings. Specifically, Executive members get an extra 20% off of their checks compared to the discount provided to Gold Star members.

3. Exclusive insurance benefits

Costco can help members save on insurance as well, with both home and auto policies offered at a discount by CONNECT powered by American Family Insurance. Costco indicates that members can save an average of $595.86 if they switch their coverage to CONNECT.

While the affordably-priced insurance is available for all Costco members, Executive members get some exclusive perks when they get covered. These benefits open to Executive members include:

Lifetime renewability of coverageRoadside assistanceReimbursement for glass repairsLockout assistance if they become locked out of their home

These benefits could make a huge difference when something goes wrong, but an Executive membership is the only way to take advantage of them.

4. Other savings on Costco services

Finally, Costco has a long list of services that members can take advantage of including:

Car-buying programPayment processing services for businessesBottled water deliveryPet insurance

Costco makes clear that Executive members can get some bonus savings with many of these partner-provided services as well.

Ultimately, if you are shopping at Costco on a regular basis, or if you want to take advantage of any of these extra perks, then upgrading to an Executive membership may be well worth it for 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.Christy Bieber 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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Pet insurance is an important thing to have. Read on for signs that you may have chosen the wrong plan. 

Some people will tell you that pet insurance is a waste of money, especially if you happen to have a pet without any health issues. But here’s the thing about health issues and pets. Problems have the potential to arise over time, the same way humans can find themselves plagued with health issues as they age.

If you don’t put a pet insurance policy in place, you might easily max out your credit cards and drive yourself into a pile of debt when a catastrophic event occurs, such as if your pet gets injured and needs surgery or falls ill and needs extensive treatment. So it’s really important to get coverage for your pet, even if a part of you is convinced you don’t really need it.

That said, you don’t have to resign yourself to a pet insurance policy that isn’t working for you. If these signs apply, it may be that it’s time to switch to a new pet insurance policy.

1. You can’t keep up with your premium costs

Nobody is going to give you pet insurance for free. But if you’ve reached the point where your premiums are just too expensive for your budget, then it may be time to make a change.

If you stop paying those premiums, your coverage for your pet will go away. It’s that simple. And then you’re back to square one.

2. Your insurer is difficult to work with

Ideally, you won’t have to interact with your pet insurance company all that frequently because your pet stays healthy and you don’t end up having to file many claims against your policy. But chances are, at some point, you’re going to need to speak to your insurer or follow up on a claim. And if that experience is not a pleasant one, it’s a sign that you should look for coverage elsewhere.

Often, people are calling a pet insurance company after they’ve experienced a stressful event with their pet and are now dealing with the financial aftermath. If your insurer isn’t helpful and lacks compassion, then the company probably doesn’t deserve your business.

3. Your deductible is unreasonably high

Many people are used to having to meet a deductible before a human health insurance company starts to pick up the tab for treatment. Similarly, a deductible might apply to your pet insurance policy, and that’s not so unreasonable. But if your deductible is higher than average, you may want to switch to coverage that comes with a deductible that’s more manageable.

Nationwide says that most pet insurance policies have a deductible of $250. So if you’re facing a much higher deductible than that, you may want to shop around for different options.

When you own a pet, having insurance really is a must. But that doesn’t mean you need to get stuck with a policy that’s not right for you and your pet. So if you can relate to any of the items above, it may be time to start doing some research to see if there’s a better coverage option out there.

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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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