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Money Management

11 Name Brands Behind Costco’s Generic Products

By Money Management No Comments

 If products bearing the giant warehouse store’s brand seem awfully familiar, there’s a good reason. The Image Party / Shutterstock.com

Stroll through any Costco, and you’ll find it hard not to notice brand-name products stacked right next to displays of Costco’s own Kirkland Signature brand. Costco’s thinking is clear: Remind the customers that while they can surely spend extra for a familiar label, they’ll save money by buying the Kirkland version. And it’s been a profitable venture for the company. According to CNN…

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Is a Costco Executive Membership Worth the Cost?

By Money Management No Comments

This upgraded membership costs twice as much as the basic Costco membership. Here’s why the perks might be worth it. 

Image source: Getty Images

There are two main categories of Costco memberships that individuals can buy. The basic membership — formally known as a Gold Star membership — costs $60 per year and includes access to Costco’s warehouse clubs and adjacent businesses such as its gas stations and tire centers.

There’s also the Executive membership, which costs $120, or exactly twice as much as the Gold Star level. However, the extra $60 per year from your checking account could be worth it depending on your spending habits. Here’s a rundown of what a Costco Executive membership gets you and whether it might be a good idea for you.

Perks of the Executive membership

For most people, the biggest perk of an Executive membership is an annual 2% reward on qualifying Costco purchases. This works similarly to a credit card cash back rewards program, except the reward is only issued once per year and can only be redeemed for Costco purchases.

Gas is excluded from the rewards program, as are purchases of tobacco, Costco Shop Cards, food court purchases, and alcohol and prescription purchases in certain states. But even with these exclusions, getting 2% back on your Costco purchases (including online purchases) every year can be a big deal.

Think of it this way. If you spend $3,000 on groceries and other purchases in Costco warehouse clubs in a given year, 2% of this amount translates into a $60 reward that can be used at Costco, thereby justifying the higher cost of the Executive membership all by itself.

In fact, for people who spend a lot at Costco, this benefit could justify the Executive membership several times over. The annual reward is capped at $1,000, which would take $50,000 in spending — but even if you don’t come close to that level, it can be very valuable. Consider that the average family of four budgets nearly $900 per month for groceries alone, according to Mint, and it’s not hard to see how those 2% rewards can add up quickly. Throw in some other purchases at Costco, and it’s easier than you may think to have five-figure Costco spending in a year.

In addition to the 2% reward, there are two other benefits of Executive membership, according to Costco’s website:

Additional benefits and greater savings on Costco Services: Executive members get perks on things like auto insurance bought through Costco, such as roadside assistance and glass repair reimbursement.Extra benefits on select Costco Travel products: Executive members get bonuses, such as spa or resort credits, when booking certain vacation packages. For example, one Caribbean vacation package offers a $100 resort credit.

These benefits can vary widely, and many people don’t use Costco for anything other than everyday shopping. So, for the bulk of members, the big question is whether you spend enough for the 2% reward to exceed the extra cost of an Executive membership.

Is the Executive membership worth the cost?

The short answer is “it depends.” As we saw in the previous section, frequent customers could potentially justify the cost with the 2% reward alone. I have a family of four and we typically hit this spending threshold before the summer each year, so we find the Executive membership to be well worth the cost.

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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.Matthew Frankel, CFP® 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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4 Ways to Save Up a Home Down Payment ASAP

By Money Management No Comments

When you’re trying to save up a home down payment quickly, techniques such as reducing your current housing budget could help. Find out more. 

Image source: Getty Images

Saving up a home down payment can be a huge source of financial stress. While the average home down payment has hovered around 6% to 7% since 2018, according to the National Association of Realtors, the median sale price of a home as of the first quarter of 2023 was $436,800. Even if you make just a 6% down payment, that would still mean saving as much as $26,196 to buy a median-priced house.

If you want to buy a place of your own, there are ways you can try to save for your down payment more quickly. Following these tips could help you get the money you need for your down payment ASAP so you can get a mortgage soon and move into your dream house.

1. Downsize your current housing arrangement

If you can cut your current housing costs, you can divert some of that extra money to saving for a down payment. Consider renting out a spare room, moving in with family temporarily while you save money, or moving to a cheaper, smaller apartment.

While you may not enjoy sharing your space or living in cramped quarters for a long time, you’ll only be making this sacrifice temporarily so you can buy a property of your own. It could be well worth living in a less-comfortable area for a limited period so you can end up in a home of your own sooner.

2. Take on extra work

There’s no limit to the amount of extra money you can earn, so try to fill some of your spare hours with jobs that will bring in additional funds you can put toward your down payment. Doing some overtime at your regular job or finding a side gig such as driving for a rideshare service could be a great way to bring in a few hundred dollars extra each month that can go directly into your down payment fund.

3. Declutter by selling unnecessary items

If you’re going to be moving into a new house, you’ll have to move all of your stuff. This can be an expensive hassle. But the good news is that you can both make your move easier and bring in extra down payment funds by selling unnecessary items. Craigslist, eBay and Facebook Marketplace are some great options to bring in extra cash for your home down payment by selling things you don’t like enough to move with you.

4. Temporarily slash your spending on non-necessities

Finally, you can cut your budget down to the bare bones, eliminating expenses like dining out and reducing your entertainment spending. Again, it’s important to remember these are just short-term sacrifices in service of your goal, so you don’t need to do it forever.

To help keep you motivated, tape a picture of your dream home over the area in your wallet where your credit card is kept. Each time you’re about to buy something, pause for a moment to ask yourself if you’d rather get your house sooner or buy the item. By doing that, you’ll be surprised how often the item ends up back on the shelf.

Taking as many of these four steps as possible can get you a long way toward saving a big down payment, which will also likely make it easier to get approved for a mortgage loan. So, get started today and you’ll hopefully be in your home before you know it.

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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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7 Reasons Not to Take Social Security at Age 62

By Money Management No Comments

 The sooner you claim Social Security retirement benefits, the more you — and perhaps your spouse — stand to lose. Here are the stakes. pixelheadphoto digitalskillet / Shutterstock.com

Some people believe in starting to collect Social Security as early as possible, which is generally at age 62. “Live while it is yet possible to live!” the early birds cry. “After all, I could die tomorrow, and then the government will keep my money.” What’s more likely is that you’ll live a lot longer than 62. According to the Social Security Administration (SSA), the average woman reaching the…

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DoorDash Introduces Hourly Pay for Dashers

By Money Management No Comments

DoorDash drivers can now choose between two ways to get paid while making deliveries. Find out how this news could impact DoorDash gig workers financially. 

Image source: Getty Images

What happened

On June 28, DoorDash announced in a news release that it would give Dashers more flexibility, by allowing them to choose between two ways to earn money while making deliveries on the platform. Dashers can now choose whether to earn by time or earn per offer.

The earn-by-time option will allow Dashers to be paid a guaranteed hourly rate for their time spent on a delivery, plus keep 100% of the tips they earn. Previously, most Dashers were paid per offer, meaning they received a base payment for each delivery and any tips they made.

So what

DoorDash is a top side hustle option for contract workers. The food delivery app company is now offering another way to get paid while making deliveries in response to feedback received from Dashers. “One of the things we’ve heard a lot is around choice: Choice of when, where, and how they earn is really important,” a DoorDash spokesperson told The New York Times.

Dashers who earn by time will be paid a guaranteed hourly rate for their time spent on deliveries, starting when an order is accepted until it’s dropped off. Dashers are shown the hourly rate upfront. They will also get to keep 100% of the tips they earn.

However, there’s one catch: Dashers won’t receive payment for idle waiting times between deliveries. The brand told The New York Times that the minimum hourly compensation rate varies by region, and will range from $10 to $19.50 per hour.

Dashers who prefer to be paid per offer can continue to do so. Those workers will also get to keep 100% of the tips they earn. Drivers can switch between payment methods at any time. This change gives Dashers more control over how they’re paid, provides greater pay transparency, and may encourage more Dashers to take smaller delivery orders.

Now what

If you’ve been considering a food delivery side hustle like DoorDash, this is news worth knowing. You may want to try the new hourly payment method to see if it works well for you. You can always switch back if you prefer to be paid per offer. With time, you can determine the best payment method for maximum income potential. After all, the goal is to boost your checking account balance as much as possible.

Before starting a new side hustle, it’s essential to consider how the decision will impact your personal finances. If you’re new to gig work, remember you’re a contractor — not an employee. You should stash money in your savings account to cover your tax bill. Since you’re self-employed, you should also make quarterly estimated tax payments to avoid penalties.

No matter what kind of side hustle or gig work you do, it’s recommended that you have a solid emergency fund. If an unexpected bill comes your way, you’ll feel more prepared if you have a sizable amount of cash in savings. An emergency fund can help you avoid credit card debt.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash. The Motley Fool has a disclosure policy.

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How to Give Your Kitchen a Facelift for Under $500

By Money Management No Comments

It’s no secret that kitchen remodels can be costly. Here are a few simple ways to update a kitchen for under $500. 

Image source: Getty Images

I suspect that most of us have a favorite room in the house. For me, it’s the kitchen. As long as the kitchen is pulled together, I can take my time creating the atmosphere I want in the other rooms. That said, we’ve purchased a few homes with less-than-attractive kitchens. My favorite may have been the one with wall-to-wall carpeting and avocado-green appliances. It wasn’t the former homeowner’s stab at kitschy design; it was just woefully out of style.

Given that Better Homes & Gardens reports that the average price of a kitchen remodel ranges from $10,000 to $130,000 depending on how grand you want it to be, you may be saving up for the job or waiting until interest rates cool down a bit before considering a personal loan. Until the day comes that you can create your dream kitchen, here are a few ideas for giving it an attractive facelift without going into debt.

Edit and clean: $0

I cannot begin to tell you how much editing will change the look of your kitchen. Go through every drawer and cabinet and pull out anything you don’t need, want, or regularly use. Yes, even the junk drawer. Focus on one drawer or cabinet at a time

Create two piles. One is for the items that are ready for the trash heap, and the other for things you’d like to donate. If you don’t use something regularly, ask yourself if you’re likely to miss it. If not, put it into the donation pile.

Once you’ve jettisoned the things you no longer need or use, take time to give the kitchen a deep cleaning. You may be surprised by how much better your cabinets look after they’ve been sprayed with a 50/50 solution of white vinegar and water, then wiped down with a clean cloth.

Not only does an edited kitchen make it easier to find the things you need, but you’re likely to end up with enough extra space to help you achieve the next step.

Stow away countertop clutter: $0

In 2011, neuroscience researchers used functional magnetic resonance imaging (fMRI) to study the impact of clutter on the human brain. It didn’t take them long to figure out that simply clearing clutter from a space resulted in increased focus, more effective information processing, and increased productivity. Yet another study in 2009 found that levels of the stress hormone cortisol were higher in those whose homes were cluttered, leading to a constant low-grade fight or flight response.

This is where any cabinet space you freed up during the editing process will come in handy. If there’s anything on your countertops you no longer need, get rid of it. Otherwise, find a new home for that toaster, coffee maker, or mixer inside a cabinet.

Not only will you end up with a kitchen that appears larger, but you’ll also have a fresher, calmer space.

Switch out hardware: $40

Although I like the kitchen cabinets in our new house just fine, the drawer pulls and knobs were too modern for my taste, so a few weeks ago, I switched them all out. The difference is night and day.

I spent weeks shopping for the rustic-looking pulls and knobs I wanted, and by far, the best selection and prices I found were through Walmart.com. Let’s say you need 20 knobs for your cabinet doors and six drawer pulls. The most you would spend through Walmart is just south of $40.

New hardware allows you to change the entire decorative vibe of the room for very little money.

Paint backsplash: $100

If you dislike the look of your backsplash but don’t want to change it out just yet, many of today’s paints are created to go on and stay on for years. For example, both tile varnish and chalk paint can breathe new life into those old tiles.

If the tiles have any drill holes or cracks that need to be repaired, a product like Cocomfix Porcelain Tile Repair Kit can work wonders for less than $13. If you decide to work with chalk paint, you will find how forgiving it is. Plus, there are tons of brands to choose from — here are three of the most popular:

Annie SloanDixie BelleCountry Chic

A little chalk paint goes a long way, so you won’t have to empty your checking account to make the purchase. You’ll also need supplies like paint brushes, a small foam roller, and a sealant. Still, the entire project should cost around $100.

A video like this will walk you through the process.

Update lighting: $100

Take a look at your lighting. Has it seen better days? Shopping around will show you that you don’t have to skip a deposit into your retirement account to cover the cost of new lighting. For example, Lowe’s offers a great industrial-looking semi-flush mount light for under $90. You could also pick up two oil-rubbed bronze pendant lights for $40.

Focus on the floor: $220

Finally, if you’re working with a small budget, now may not be the right time to invest in new flooring. However, companies like Ruggable offer high-quality area rugs that are stain and water resistant and machine washable. After scrubbing your kitchen floors clean, a single area rug in the middle can change the look of the entire room.

In case you’re wondering how you can stick an entire area rug in your home machine, here’s how it works: These rugs allow you to separate the top from the pad and toss the top in the washing machine. Once clean, you simply reattach the top to the non-slip bottom.

A medium sized kitchen (around 200 square feet) can easily accommodate a 5′ x 7′ foot rug, an easy find at Ruggable for around $220. That said, washable rugs have become more popular in recent years, so shop around for the style and price that appeals to you.

If you decide to take on each of these quick turnaround changes, you can easily get it done for under $500. Better yet, if the plan is to make bigger changes down the road, these small tweaks should hold you over until that time.

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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.Dana George has positions in Walmart. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

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