Money Management

You can withdraw from a joint account the same way you would from a solo one. But read on to see why you should consult your partner before taking a big withdrawal. 

There are several benefits to opening up a joint bank account with a partner or spouse. For one thing, if you and your partner share bills, then it’s easy to have a single checking account you dip into to pay those expenses. And if you’re working toward specific financial goals together, like buying a house, it helps to have your money in a joint savings account.

Plus, opening a joint bank account gives you more FDIC insurance protection. When you open an account on your own at an FDIC-insured bank, you’re granted up to $250,000 worth of protection. But that limit rises to $500,000 when you have a joint account ($250,000 per account holder).

However, if you’re going to open a joint bank account, then it’s important to be on the same page about how you manage it. And that generally means consulting one another before taking a large withdrawal.

You can take withdrawals on your own

When you have a joint bank account, you don’t need your partner’s permission to take a withdrawal. You can remove funds from that account on your own, and your bank won’t ask for verification that the other person on the account is okay with that transaction.

But just because you can make an independent decision to withdraw money from a joint bank account doesn’t mean you should. If both you and your partner have contributed to that account, then you both deserve to have a say in how that money is spent. And if you don’t consult one another, you could end up with a financial mess on your hands.

Let’s say you remove $1,000 from your joint checking account to put down a deposit on a home improvement project without consulting your partner. It may be that they just wrote a check for $2,000 to cover a big car repair, but you may not have realized that. Without discussing payments with each other, you risk overdrawing your account.

But even if you don’t end up in that specific situation, not discussing large withdrawals with one another could damage your relationship. And that could have serious consequences.

When money becomes a source of conflict

The Jimenez Law Firm says that for every 10 U.S. marriages that end in divorce, four are due to money matters. You don’t necessarily need to consult your partner if you’re removing $80 from your joint bank account to buy groceries or pay the water bill — those are ongoing expenses. But you probably should talk to your partner before taking a $700 withdrawal to update your wardrobe.

And it goes both ways. Any time you’re looking to take a withdrawal for something that isn’t a recurring bill, or a joint bill you both know about, it’s best to have a quick conversation to make sure both of you are on board. If you keep removing funds without consulting each other, you might not only whittle down your account balance, but create a scenario where there’s loads of resentment. And that’s not what you want.

So sit down and come up with a plan for managing your joint account together. It could work wonders for your finances, as well as your relationship.

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Ramit Sethi’s opinion on the worst financial goal may surprise you. Find out what it is and how it can hold you back in life. 

Ramit Sethi is the star of How to Get Rich on Netflix, and he talks to people from all walks of life about money. In a recent interview with Men’s Health, he was asked what the worst financial goal is. He had an answer you might not expect, and he says it’s the response he gets from 90% of the people he talks to about their rich lives.

Here’s what Ramit Sethi calls the worst financial goal

Sethi says that when he asks people what their rich life is, most tell him “I want to do what I want, when I want.” Many of us are probably guilty of thinking this way about personal finance. When we imagine being rich, the first thing that comes to mind is often the freedom that money provides.

The problem is that this goal is as generic as it gets, and generic goals rarely work out well. Sure, if you have enough money, you have the freedom to do what you want. But what exactly is it that you want to do? Without a clear idea of that, it’s going to be hard to figure out the right steps to get there. Even if you could, generic goals aren’t exactly great for motivation.

Sethi says the reason so many people have this answer is because “most of us have never actually thought about what we truly want with our money.” That’s why he recommends vividly detailing your rich life, meaning one where you use your money as a tool to build a life that you love.

How to build a rich life

If you want to improve your financial goal setting, start by getting specific about what you really want. Deciding you want to travel more or spend more time with your kids is too vague. Compare that to specific goals like:

Spending a week at a five-star resort in Puerto Vallarta every year.Having the time to take your kids to school every day (at least until they’re old enough that it gets embarrassing for them).Buying season tickets to your favorite sports team.

Those are the kinds of detailed goals that give you something to get excited about.

Here’s why it’s so important to do this — when you know exactly what you want, you can make sure you’re using your money on things that bring the most joy to your life. You can start planning what you need to do to have your version of a rich life. And you can cut back heavily on expenses that don’t matter as much, giving you more to spend on what does.

For example, I love to travel, and to be as comfortable as possible along the way. I always imagined what it would be like flying in business class to Europe, staying in nice hotels, and eating at high-end restaurants.

Because I know exactly what I want, I set aside a solid portion of my money for travel expenses. I’m able to do that because I’ve cut back my spending in a lot of areas that don’t matter to me. Case in point, I don’t own a car, even though I could afford one, because it’s not something I need or want. I also learned how to travel with credit card points. Then, I opened travel credit cards to help me save on flights and hotels when possible.

Your goals could be completely different. What’s important is that you take some time thinking about what those goals are, so you can find the best ways to use your money.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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Many people love Costco. But is it worth paying for in your case? Read on to find out. 

Shopping at Costco is a great way to save money on everything from groceries to household supplies to apparel. You can even save on things like furniture, appliances, and travel bookings.

These days, a basic Costco membership costs $60 a year, while an executive membership that gives you cash back on your purchases costs $120. And these are reasonable fees to pay in the sense that they can more than make up for themselves under the right circumstances. But if the following signs apply to you, it may be that you’re throwing your hard-earned money away on a Costco membership.

1. You hardly ever visit the store

It may be that your closest Costco warehouse club store takes 30 minutes to get to. Or it may be that you have a very busy schedule with little time for in-person shopping. Either way, if you hardly ever manage to make it over to Costco, and you don’t tend to shop at Costco online, then it may not be worth it to pay for a membership.

Let’s say each visit to the store saves you $10 on groceries, but you only manage to set foot in Costco once every three months. That means you’re paying $60 to save yourself $40.

2. You mostly shop at Costco online

Here’s a little secret about Costco — you don’t need to be a member to shop at Costco online. Now there are exceptions, because some online items are designated as member-only items. But most of Costco’s online inventory is available to the masses — membership or not. So if you only shop at Costco online, you may want to consider forgoing your membership.

Now that said, Costco does impose a 5% surcharge on online purchases made by non-members. But even so, you might come out ahead financially by paying those extra fees and saving on the cost of a membership.

Let’s say you place a $100 online order at Costco nine times a year. That $900 in total, and 5% of $900 is $45. That’s less than the cost of a basic membership.

3. You’re paying for an executive membership you’re not getting value from

For an executive membership at Costco to be worth the money, you need to spend more than $3,000 a year. The reason? It costs an extra $60 to upgrade to an executive membership, and you get 2% back on Costco purchases in exchange. Since 2% of $3,000 is $60, you’ll want to spend at least a touch more than that to justify the extra $60 outlay. But if you only spend, say, $2,000 a year at Costco, then you’re wasting money on an executive membership, since you’re only getting $40 back.

The good news is that Costco will allow you to downgrade from an executive membership to a basic one at any time. Simply go to customer service and they’ll switch your membership without a hassle.

For many people, getting a Costco membership is an easy call. But if these signs apply to you, it may be time to rethink yours.

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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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Low housing inventory can be bad for buyers and great for sellers. Read on to learn more. 

It normally takes a four- to six-month supply of available homes to create an equalized housing market — meaning one that doesn’t favor buyers over sellers or vice versa. But as of the end of May, there was only a three-month supply of homes available, according to the National Association of Realtors.

To put it another way, housing inventory is currently very low. And that means that buyers have a clear advantage over sellers in today’s housing market.

When there’s not enough supply to go around

The basic laws of supply and demand tell us that when any given commodity is in short supply, its price is apt to rise. Just take a look at the auto industry. Car production slowed tremendously during the pandemic due in part to chip shortages, and that’s driven vehicle prices upward in a meaningful way.

Similarly, there’s been a glaring lack of housing inventory for a good number of years now. And that, in turn, is making things tough for home buyers.

Why is housing supply so limited? At this point, it’s most likely a matter of costlier mortgage loans.

Many mortgage borrowers locked in ultra-low rates in 2020 and 2021, and since then, rates have climbed substantially. So anyone selling a home today and buying a new one is likely looking at giving up a relatively low mortgage rate and replacing it with a much higher one. That’s not ideal, so a lot of homeowners are opting to stay put until borrowing rates come down.

A good situation for sellers, but not for buyers

Low housing inventory means that buyers have to duke it out with one another when quality homes hit the market. That’s been leading to bidding wars that have driven home prices upward.

Clearly, higher home prices are what sellers want. But buyers, not so much.

Also, because there’s not a lot of real estate inventory to choose from, sellers today don’t have to make as much of an effort to make their homes presentable as they once did. Buyers are apt to be more willing to overlook certain flaws at a time when their choices are extremely limited.

But it’s not just low inventory that is forcing buyers to pay more for homes. It’s also that buyers are being forced to compromise on the features they’re looking for since there’s not a lot of selection. That, too, is problematic, since a home is, or should be, a longer-term commitment.

All told, a housing market with low inventory can work to sellers’ advantage. But from a buyer’s standpoint, it can be an extremely frustrating thing to navigate.

If mortgage rates start to fall, housing inventory could pick up nicely. But we may be a long way off from seeing that happen.

That said, if today’s higher mortgage rates hold steady to the point where they become the norm, sellers are apt to adjust to that eventually. So even if borrowing rates don’t come down, housing inventory should pick up gradually. It’s really just a matter of when.

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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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DashPass members get special discounts and other benefits, like cheaper UPS package pick-ups. Find out more. 

I use the food-delivery service DoorDash five times a week, arguably three times too many. Thus, I’m very familiar with DoorDash’s many member-only perks. Here’s the inside scoop.

What is DashPass?

Doordash offers an optional $9.99/month DashPass subscription service. This includes:

Free delivery from many stores. These include restaurants, grocery stores, and outlets.Reduced service fees.

Did I sign up? You better believe it. Doordash claims the subscription service pays for itself in two orders because it saves you $4-$5 per order. To be safe, I’d round that up to three orders. I order delivery five times per week, which adds up to about 20 orders per month.

Doordash saves me around $80-$100 per month in delivery fees, more than making up for the $9.99/month subscription. But most folks aren’t nearly as delivery-happy. What about the average American shopper? Is the DashPass still worth it?

Let’s dig into what DashPass offers and whether the subscription suits you. The devil lies in the details, in this case. From one food delivery fanatic to you, here are seven little-known perks of a DoorDash DashPass subscription.

1. 5% back on in-store pickup

Sometimes, I’m so close to a restaurant that I have no choice but to power off my laptop, hop in my car, and pick up the order in-person. It’s cheaper than delivery. That said, Doordash makes it easy to order pick-up through the app. It’ll even refund DashPass members 5% in store credit.

It’s a nice-to-have perk, especially if the store is tough to contact via phone. But know that prices on DoorDash are typically higher than in-store — which eats into that 5% DoorDash credit.

2. Cheaper package pick-up

My housemate is a reseller. She frequently delivers packages to UPS and occasionally asks me to help with drop-off, which takes me five minutes to schedule when I do it through DoorDash. The app lets users schedule package porch pick-up and drop-off to the post office, UPS, and FedEx. Doordash reduces the pickup fee for DashPass subscribers.

3. Exclusive promotions

DoorDash constantly has promotions running. Many of these are DashPass-member exclusives. I’ve found that convenience stores offer some of the biggest members-only discounts. Right now, Walgreens is offering DashPass members $10 back on $3; 7-Eleven offers 30% off, up to $10. Pretty standard stuff for DashPass subscribers. Every once in a while, I benefit from promos.

4. Priority support

DoorDash claims to offer priority customer support to DashPass subscribers. The one time I reached out about an order I never received, the company quickly refunded me in DoorDash credit. No complaints here. You can reach out to DoorDash support through the mobile app.

5. Caviar benefits

Little-known fact: DoorDash owns and operates Caviar, another delivery app. Caviar markets itself as a premium food-delivery service, partnering with top local restaurants: think quality over quantity. A DashPass subscription doubles as a Caviar subscription, a nifty two-for-one deal. I don’t care about exclusivity — I prefer broad access — so I haven’t used this perk.

6. DashPass for students

Students can get DashPass for cheap. DashPass for Students lets students enter their school information in the app, qualifying them for 50% off a standard subscription (I’m annoyed I didn’t know this back in college). That’s $4.99 per month for students. For the right reasons, that could be a steal of a deal.

7. Bonus DashPass subscription for Chase card members

DoorDash partners with Chase to give Chase card members special perks. That includes a free membership (up to one year) and cash back on DoorDash purchases.

I signed up for the DoorDash Rewards Mastercard® about a month ago. It offers a grab-bag of perks, but I only care about a few. Here are the ones that actually matter:

4% cash back on DoorDash orders$5 monthly store creditOne year free DashPass subscription

As a heavy DoorDash user, I decided to make more money on what I was already doing (i.e., using DoorDash). Chase automatically tacked the free year of DashPass onto the end of my current DashPass subscription. Neat. So far, the switch to the Mastercard has been worth it.

Is a DoorDash DashPass subscription worth it?

DoorDash users who order delivery three or more times a month will probably save money by subscribing to DashPass. Delivery fees can be brutal, and DashPass smothers most of them.

Other than frequent DoorDash users, here’s who might actually benefit from springing for a DoorDash subscription:

Students. It’s cheaper. A subscription pays for itself in about two orders.Frequent Caviar users. A subscription pays for itself in about three orders.Frequent shippers. Cut down on driving by scheduling cheap package pick-up.

Sure, I like DashPass, but I’ll be the first to tell you that it isn’t for everyone. If you rarely order through the app — say, no more than once a month — don’t bother. Save your money and stick it in an emergency fund or a high-yield savings account, which will benefit you long-term.

Consider your shopping habits. It’s often cheaper to drive to restaurants, grocery stores, and the post office than to order delivery. And DoorDash isn’t the only delivery service offering hidden perks — Amazon Prime members get a free one-year GrubHub membership. Shop around!

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, JPMorgan Chase, and Mastercard. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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