Money Management

The online retail giant is being awfully secretive about its mega sales event. Read on to learn how to plan for Prime Day. 

Amazon Prime Day is one of the most highly anticipated shopping events of the year. Last year, Amazon Prime members purchased more than 300 million items worldwide on Prime Day, and this year’s mega-sale has the potential to be even bigger.

But meanwhile, we’re in mid-June, and Amazon has yet to announce the official date(s) for Prime Day 2023. And consumers are wondering why the online retail giant is being so secretive.

Is it a matter of hype, or a matter of change?

Amazon Prime Day typically takes place in July. Last year, the big event happened on July 12 and 13.

Many retail experts anticipate that this year’s Prime Day event will also take place in July, and likely around the midpoint of the month. But it’s a little odd that we’re within a month of that time frame and Amazon has yet to put an official date in place.

Now on the one hand, it may be that Amazon is trying to generate more hype for Prime Day by keeping the timing a secret. That way, consumers can grow increasingly excited about it.

On the other hand, it may be that Amazon is contemplating pushing Prime Day off to later on in the year, in which case a mid-June announcement wouldn’t necessarily be crucial.

If Amazon is going the former route and trying to drum up hype, though, it may only be hurting itself. Many consumers are fairly cash-strapped these days as inflation remains a problem. And many people have, over the past year, raided their savings accounts and racked up debt to cope with higher living costs.

If Amazon wants Prime Day to be successful, it wouldn’t be a bad idea to give consumers a heads-up that it’s coming. That way, they can start saving for it ahead of time. If Amazon springs Prime Day on everyone just a couple of weeks before the big event, consumers might have fewer options for spending money.

Should you plan to take advantage of Amazon Prime Day?

Amazon Prime Day could offer opportunities to scoop up items on your wish list — both essentials and non-essentials. But for the latter category, you should really only plan to do your share of spending if money isn’t tight and you’re not already struggling with a large credit card balance.

If that’s the case, you may want to keep your Prime Day purchases to essentials only — things like back to school supplies and clothes for your kids, or household items you really can’t do without.

It’s a good idea to assume that Prime Day will be held in July this year and spend the next few weeks spending less and banking extra cash so you have more options to take advantage of the deals that are apt to pop up. Saving an extra $20 or $25 a week between now and mid-July (assuming that’s when Prime Day is) could spell the difference between carrying a credit card balance forward after Prime Day or not.

All told, many consumers are eager to learn when Prime Day will take place this year. And some may even be getting annoyed that an official announcement hasn’t come through.

At this point, the ball is clearly in Amazon’s court. So we’ll just need to wait and see what the online retail giant decides to do.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Sam’s Club has lots of products that could come in handy on your next trip. Get ideas for your shopping list with the best travel accessories at Sam’s Club. 

I travel fairly often, normally anywhere from five to 10 times per year. Recently, I decided it was finally time to pick up some of the travel accessories people are always talking about. After one transatlantic flight, they’ve already made a huge difference.

If you’re a Sam’s Club member, it has plenty of useful travel gear available in stores and online. Here are the best travel accessories you can buy at Sam’s Club right now.

1. iFLY Smart 4-Piece Packing Cube Travel Set: $39.98

Packing cubes are one of those products I was never sure about and now feel silly for doubting. They’re great for keeping things organized, and they make it so much easier to pack and unpack your suitcase.

Instead of having all your clothes packed together, you separate them into your packing cubes. When you get to your destination, you don’t have a mass of clothes to sort through. You have a packing cube with your shirts, another with your pants, and so on. These also help keep your clothes clean by protecting them from everything else in your suitcase.

2. myCharge Hub All-in-One Portable Charger, 10,050 mAh: $49.98

Charging your devices away from home can be a pain. There’s often a crowd of people around the outlets already. It takes forever to charge anything on a plane. And to top it off, the FBI has warned that hackers are stealing data through public USB chargers in what’s called “juice jacking.”

All the more reason to carry a power bank. This myCharge portable charger doesn’t take up much space, can charge up to three devices at once, and advertises up to 54 hours of battery life.

3. Apple AirTag: $27.98 (One-pack) or $94.98 (Four-pack)

Lost luggage is every traveler’s worst nightmare. It can happen to anyone, so while you certainly hope it doesn’t happen to you, it’s good to be prepared in case it does.

A luggage tracking device is a great start. It can help you pinpoint where your luggage is and see if it’s just delayed or went to a completely different city. Police have even been able to track down stolen luggage thanks to people’s AirTags. Personally, I bought a four-pack so my wife and I would have one each for our checked bags and carry-ons.

By the way, another smart way to be prepared in the event of lost luggage is travel insurance. Many travel credit cards include insurance for lost and delayed luggage as a complimentary benefit. It’s well worth using one of these cards to pay for your trips so you’re protected.

4. Swissgear 3760 ScanSmart Laptop Backpack: $49.98

Many travelers focus on getting quality luggage, meaning a carry-on and maybe a checked bag. It’s definitely smart to do that, because good luggage can seriously improve your travel experience. It’s often better designed, which helps you pack and organize everything, and smoother to wheel around. Quality luggage also lasts longer, so it can pay off from a personal finance standpoint.

That being said, don’t neglect the personal item, either. It’s nice when you don’t need to dig around your carry-on at the airport or on the plane. With a laptop backpack, like this one, you’ll have easy access to your devices, snacks, and anything else you need during your trip.

5. ZULU 26-ounce Stainless Insulated Water Bottle (Two-pack): $19.98

A reusable water bottle is a simple way to save money on every trip. Everything is notoriously overpriced at the airport, and because of TSA rules, liquids are only allowed through security in travel-sized containers of up to 3.4 ounces. Instead of paying a premium for a bottle of water, bring your own and fill it up at a water fountain.

Whether you travel all the time or only on special occasions, the right travel accessories make the experience much more enjoyable. Before your next trip, it’s worth checking out the gear you can get at Sam’s Club.

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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 Apple. The Motley Fool has a disclosure policy.

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Closing a long-standing credit card account could have negative consequences. Read on to learn more. 

Your credit score is an important number because it tells lenders how much risk they’re taking on by loaning you money. A higher credit score sends the message that you’re less of a risk, while a lower credit score indicates that a lender may be less likely to get repaid if it decides to extend you a loan or line or credit.

That’s why it’s so important to do your best to maintain a good credit score. And that’s also why you may want to think twice before closing a credit card account you’ve had open for many years.

Closing an older account could hurt you

There are different factors that are accounted for when calculating your credit score. One of them is the length of your credit history, and it comprises 15% of your score.

The more long-standing credit card accounts you have open, the more that consistency can help your score. And so if you close an account you’ve had for years, it could cause your credit score to take a hit (the closed card can stay on your credit report for up to 10 years).

As such, if you’re looking to close a credit card that doesn’t impose an annual fee, you may want to hang onto it and use it sparingly just to keep the account open. That could mean putting a small recurring expense on that card, like a streaming service, or even just charging small purchases every so often to keep your account active.

Closing an older account could raise your utilization, too

Another key factor that goes into calculating a credit score is your credit utilization ratio, which measures the amount of available credit you’re using at once. That ratio comprises 30% of your credit score.

When you close an old credit card, you don’t just potentially impact the length of your credit history. You might also lower your total credit limit. And that could send your credit utilization ratio into unfavorable territory.

It’s generally best to keep that ratio to 30% or less if you want to keep your credit score in good shape. Let’s say you owe $2,000 on your credit cards and have a total credit limit of $10,000. That’s 20% utilization, which is generally not a problematic level. But if you close an old credit card with a $5,000 limit, thereby cutting your total limit in half, suddenly, your $2,000 balance puts you at 40% utilization. That’s not so great.

In many cases, it pays to hang onto an older credit card rather than close the account. So if you’re not facing a fee to keep it open, it could pay to go that route to avoid unwanted damage to your credit score that makes it harder to borrow affordably the next time you need to.

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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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Having too much cash in the bank could hurt you. Read on to see why. 

A recent SecureSave survey discovered that a whopping 67% of Americans do not have enough cash in the bank to cover a $400 emergency expense. So if you have a large emergency fund with many thousands of dollars, you’re clearly in far better shape.

But there may come a point when your emergency savings are overfunded. Here’s how to know when you’ve gotten there — and why it’s a problem.

A year’s worth of expenses will generally suffice

There are different guidelines as to what constitutes a solid emergency fund. Some financial experts will tell you that three to six months’ worth of living expenses in savings will suffice. Others might tell you to aim for more like nine to 12 months’ worth.

But for the most part, once you have enough cash reserves in savings to cover a full year of essential bills, you’re pretty set. This isn’t to say there’s never a reason to save beyond a year’s worth of bills. But for the typical U.S. household, a full year’s worth of bills in savings offers a lot of protection, and there’s really no need to have emergency savings beyond that. In fact, if you sock away more than 12 months’ worth of living costs in the bank, you might lose out financially in the long run.

Don’t sell yourself short

It’s natural to want financial protection, especially if you’re the sole breadwinner in your household or if you have multiple dependents who rely on you. But if you keep too much cash in emergency savings, you might lose out on the opportunity to generate higher returns by investing your excess money.

Over the past 50 years, the stock market has rewarded investors with an average annual 10% return before inflation, as measured by the performance of the S&P 500 index. These days, it’s possible to find a high-yield savings account paying somewhere in the vicinity of 4%. But that’s a lot lower than 10%. And today’s higher returns also aren’t guaranteed to stick around.

But let’s say you have enough money in your emergency fund to cover a year’s worth of bills plus $5,000 beyond that. If you were to score a 4% return on that money over the next 10 years, you’d grow your $5,000 into about $7,400. On the other hand, if you were to invest that money in stocks or an S&P 500 ETF, thereby generating an average yearly 10% return, in a decade from now, your $5,000 would be worth around $13,000.

And that’s why there actually is such a thing as having too much money in emergency savings. It’s good to have a solid cushion in case your job is yanked away or you end up with very expensive home repairs. But once you’ve reached the point of being able to cover a full year of bills, you can give yourself a pat on the back for a job well done and start investing your additional cash to grow it nicely.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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