Money Management

Disney resorts come at a premium price, but is it worth paying for? Check out this guide that will help you decide. 

If you are planning on taking a Disney vacation to Florida, you’re going to have a choice to make about where to stay: You’ll need to decide if you should stay at a Disney hotel or whether you should opt for non-Disney accommodations.

There’s a lot that goes into this choice, so consider these issues before deciding whether to break out the credit cards and swing for a Disney room or not.

How much is the premium for a Disney hotel?

The first and most important thing to know is that you are usually going to take a bigger hit to your bank account if you stay on-site at a Disney hotel. The Disney name, coupled with the convenience of being so close to the parks, means Disney can charge a hefty premium.

Just how much more will you spend to stay at a Disney resort compared to a competitor property? That largely depends on whether you’re staying at an economy or value resort versus a more premium property.

Average nightly rates at some of Disney’s value-priced resorts still come in at around $150 to $225 per night depending on the resort and the season, while you could find a number of comparable — or nicer — hotels within five miles of the parks for around $80 to $100 per night.

The difference could be even more stark with luxurious properties, as luxury resorts at Disney can be well over $400 nightly while comparable rooms could be had for around $150 a night elsewhere.

What do you get for the added money?

So, is paying around double for a hotel worth it? To decide, consider the perks of actually staying at a Disney hotel.

For one thing, you’re going to have the easiest access to the parks. You can often grab a shuttle, boat, or monorail to get directly to the park of your choice. This makes it easier to get to the park at opening and to stay longer so you get more value for your park tickets. You can also avoid having to take a rideshare or pay for parking if you drive in from off-site.

You can also get early access to buy individual Lightning Lanes, which allow you to pay to avoid the line on premium rides. Anyone visiting Disney can buy these individual Lightning Lanes if they choose to, but you get to purchase them at 7 a.m. instead of 9 a.m. if you stay at a Disney hotel. Often, some of the more popular Lightning Lanes are sold out by then.

You can also make dining reservations earlier than the general public, as those who aren’t staying at a Disney hotel can make them 60 days in advance while you can make them for the entire length of time you’re at the property for up to 10 days. In other words, you may be able to make reservations 10 days earlier than others if you’re doing a 10-day stay. This can help you gain access to exclusive restaurants.

Early theme park entry and extended evening theme park hours are also available to Disney hotel resort guests, but not to others — so you can have extra time when the park is less crowded.

Weigh the benefits against the cost to decide

You are undoubtedly going to pay a lot extra for these perks, most of which don’t directly save you money but which instead save you time. If you’re eager to pack as much into your vacation as possible, or if these perks allow you to spend one less day at the parks and save on an entire day’s tickets, staying at a Disney resort may be worth it. But, if you just want the cheapest accommodations closest to the Mouse, looking elsewhere may be a better bet.

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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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You can charge Costco purchases on a credit card. But read on to see when cash might be a better bet. 

Shopping at Costco is a great way to save money on groceries and household essentials. And if you swipe your credit card at the Costco checkout line, you might even snag some nice cash back on your purchases. (That’s on top of the cash back you might score if you have a Costco executive membership, which gives you 2% back on everything you buy at Costco.)

But sometimes, it pays to shop at Costco with cash rather than a credit card. Here are a few such instances.

1. You don’t have a credit card that Costco accepts

Costco accepts Visa cards, and only Visa cards. If you have one, you’re all set. If not, it may not be worth it to apply for another credit card for the express purpose of being able to shop at Costco. So at that point, cash may be your only option.

To be clear, you can use a debit card at Costco — you don’t have to bring physical cash with you. But handing over cash might help you keep better tabs on your spending. And it also might prevent you from making impulse buys at Costco.

2. You’re already in debt

Paying off a credit card balance can take time. But one important thing to do when you’re trying to whittle down an existing balance is to not add to it. So if your goal is to be free of your credit card debt, you really don’t want to charge any more expenses if you can help it. And that includes Costco purchases.

3. You’re trying to boost your credit score

A higher credit score could do a lot of good things for you. It could make it easier to get approved for a loan should you decide to apply for one, and it could set you up for a more competitive borrowing rate.

One good way to boost your credit score is to keep your credit utilization as low as possible. Credit utilization speaks to the amount of available credit you’re using at once. If you have a $5,000 spending limit on your credit cards and have an outstanding balance of $1,000, it means you’re at 20% utilization.

A credit utilization ratio of 30% or less could be helpful to your credit score. So if you’re hovering around that mark and want to get your utilization down, you’ll need to limit the extent to which you swipe your credit card at the store. Paying cash for your Costco purchases could help you keep your total credit card balance low.

Many people prefer to pay for Costco purchases with a credit card because they can earn cash back on what they’re buying. And also, for some people, using a credit card actually makes it easier to keep tabs on their spending because all of that information is summarized when you log into your credit card account. But if these situations apply to you, then you may want to stick to cash at Costco — at least for the time being.

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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 and Visa. The Motley Fool has a disclosure policy.

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Figuring out how much to put into an investment account can be complicated. Read on to learn what to consider when making this choice. 

Putting money into a brokerage account allows you to invest it for your future. You can open a retirement account or a taxable account with a brokerage firm to save for other long-term goals — or you can open both.

But how much money, exactly, should you be putting into your brokerage account? Here’s how you can decide.

Consider your overall financial situation

You should start investing money as soon as possible. The sooner you begin funneling money into a brokerage account, the easier it will be to build wealth thanks to compound growth.

In fact, if you start investing at 30 and want to be a millionaire by 60, you have to contribute about $507 a month assuming a 10% average annual return before inflation. But if you wait a decade, you’d have to invest much more each month — $1,454.96 to hit millionaire status. That’s almost three times what you’d have needed to save with an earlier start.

Where to put your money first

That being said, you aren’t ready to invest anything in a brokerage account if you don’t have some other financial goals checked off your list first. For one thing, you must make sure you have paid off high interest credit card debt. The Federal Reserve reported that the average interest rate on consumer credit cards was 20.09% as of April 2023. You won’t earn that kind of return with a safe investment, so pay off your credit cards before putting money into your brokerage account.

You’ll also want to be sure that you have a fully-funded emergency fund in a savings account, which means having about three to six months of living expenses saved. You should have emergency money because if you tie up all your assets in investments with a brokerage firm, you could find yourself either going into debt or forced to sell investments at a bad time at a loss if you have an emergency.

If your employer is offering a 401(k) matching contribution, you should make sure you’re also investing enough in your workplace plan to earn the full match. Otherwise, you’re passing up free cash. Do this before putting money into your brokerage account to take advantage of the guaranteed returns.

If you don’t have high interest consumer debt, you do have an emergency fund, and you’re maxing out your 401(k), then you have to take some additional steps to decide exactly how much to put into your brokerage account.

Think about your financial goals

Determining how much money to put into a brokerage account largely depends on how much income you have available and what short-term and long-term goals you have.

A good rule of thumb to follow is not to put any money in your brokerage account that you’ll need within the next two to five years. That’s because the stock market predictably has both boom and bust times. If you have a long investing timeline, you can afford to lose some money, wait it out, and eventually earn it back (and hopefully more). But if you’re going to need the money in the next couple years, it’s possible the timing will work out poorly for you and you’ll have to sell during a downturn before you have a chance to make any profit on your investments.

If you’re saving for long-term goals beyond that two-to-five-year time limit, a brokerage account can be a great place to put the money because you can earn better returns by investing than in a savings account. You can determine exactly how much to invest in your account to meet your goals by using the Savings Goal calculator at Investor.gov. You just need to specify what amount you’re starting with, your timeline, your projected returns, and what your goal is.

For example, if you want to have $20,000 in 10 years time and you’re starting with $2,000, you could use this calculator to find out you’d need to put $77.45 per month in your brokerage account to hit that goal. If you do this with all your financial goals, you can get an exact estimate of the minimum you need to accomplish your goals — and you can aim to put at least that much money into your brokerage account.

Put a little time into customizing your investing plan

Taking this approach and calculating how much you need for your goals is more accurate than just following a simple rule of thumb, like investing 15% of your income in your brokerage account — although it takes more effort. If you know what your goals are, it’s worth going through this exercise to make sure you’re investing enough to accomplish them.

Of course, if you have extra disposable income after covering your needs and setting aside some for other financial goals and you know you won’t have to use that money for short-term purchases, you can also opt to put every extra penny into a brokerage account. After all, the more you invest, the faster you can grow your wealth, so there’s no reason not to invest your extra cash.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Wire transfers are a convenient way to transfer money. But with scams becoming more sophisticated, find out a few details you should verify first. 

With the rise of technology and online banking services, wiring money has become easier and more accessible than ever. However, as much as we rely on this convenient service, we must also know how to protect ourselves from fraud and scams. If you are planning to wire money to someone, it is essential to check the following steps off your list to protect yourself from being scammed.

1. Know the recipient’s information

Before sending money, it’s important to verify the recipient’s information to make sure you are sending it to the right person and the right checking account. Here are details you should double-check before wiring any money:

The recipient’s name and addressThe recipient’s bank name and addressThe recipient’s bank account numberThe recipient’s bank routing numberAmount of money being sent

If you are sending money internationally, you may also have to add additional banking information such as the bank’s SWIFT/BIC code, and the International Payments System Routing Code.

If possible, try to get confirmation in writing. Scammers often use fake identities or fake bank accounts to receive money, so it’s crucial to verify the information before wiring any money. In addition, verify any wire transfer fees you have to pay. With the rise of internet fraud and scams, it’s important to be vigilant when wiring money.

2. Know who not to wire money to

Per the FTC, scammers want you to wire money because they know you can’t get your money back and it is nearly impossible to identify or track down who picked up the money. They recommend that you do not wire money to the following people:

Anyone you haven’t met in personAnyone who says they work at a government agency like the IRS, SSA, or a well-known companyAnyone who pressures you into paying immediatelyAnyone who says a wire transfer is the only way you can payAnyone who tries to sell you something over the phone.

When you wire money, you do not have the same protections that come with credit cards. It is illegal for a telemarketer to ask you to pay with a wire transfer, like those with MoneyGram and Western Union. If you are asked to do so, report them immediately.

3. Be wary of urgent or unexpected requests

Scammers often use urgent or unexpected scenarios to get people to wire money quickly. Beware of callers who claim to be a friend or relative in trouble, or emails from someone claiming to be a supplier or business partner who needs payment urgently. These requests are often scams. If you receive an urgent request to wire money, take the time to verify the information before sending any money.

4. Protect your information

Another way scammers obtain money is through identity theft. Protect your personal and financial information by keeping it confidential and secure. Don’t share your financial information with anyone you don’t know and trust. Use strong passwords and two-factor authentication to protect your online accounts. If you suspect someone has stolen your identity, report it to the relevant authorities immediately.

5. Know about the latest scams

Finally, stay informed about the latest scams and fraud schemes. The internet is full of helpful resources that can help you recognize and avoid scams. Visit websites like the Federal Trade Commission or the Better Business Bureau to learn about the latest scams and tips for how to avoid them. Staying informed is key to protecting yourself from scammers.

Wiring money is a convenient and reliable way to transfer money from one account to another, but it’s important to be aware of the risks of scams and fraud. By following these practical tips, you can protect yourself from scams and safely wire money without worry. Always double-check the recipient’s information, do your research on the recipient, and avoid responding to urgent or unexpected requests without verifying the situation. Protect your personal and financial information, stay informed about scams, and remember: If something sounds too good to be true, it probably is. Stay safe!

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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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A writer has yet to regain her perfect credit score. Read on to see why that doesn’t bother her. 

Your credit score isn’t just a random number. Rather, it paints a picture of you as a borrower.

When you go to apply for a credit card, personal loan, or any other type of financing, a lender or credit card issuer will commonly do a hard inquiry on your credit report and check your credit score to see what it looks like. If it’s high, there’s a good chance you’ll get approved for whatever loan or credit card you’re applying for. If your credit score isn’t so high, you might still get approved to borrow, but at a less favorable rate. So it’s in your best interest to have as high a credit score as possible.

Meanwhile, credit scores range from 300 to 850. And if you’re thinking that getting to 850 is impossible, you should know that it isn’t.

As of April 2019, about 1.6% of the scorable population in the U.S. had a perfect credit score of 850, reports FICO. And while I didn’t have perfect credit in 2019, there was a point in my life when my credit score was indeed perfect. That’s no longer the case, but it doesn’t bother me at all.

How I got to an 850 credit score

I managed to have a perfect credit score in my early to mid-20s for a few reasons. First, back then, I used a very small percentage of my credit card’s spending limit — namely, because I didn’t earn as much as I do now and couldn’t afford to charge more than that. I also made a point to pay off every credit card bill in full and on time, which helped my score rise.

Another thing that worked in my favor was being an authorized user on my parents’ credit card. They had added me as an authorized user when I went to college so I’d have a credit card to use in an emergency.

Once I graduated from college, I don’t even think I carried their credit card around in my wallet — rather, I had tucked it away somewhere safe. But because I was still on that account, and it was a long-standing one, it helped my credit score, since the length of your credit history is a factor that’s also used to arrive at that number.

All told, by the time I was ready to rent my first apartment without roommates, I had a perfect credit score. But through the years, my credit score had dropped as a result of things like running up higher credit card balances some months and applying for more loans (including a mortgage refinance) and credit cards.

To be clear, I’ve always paid my credit card bills in full. But having a higher balance very temporarily has made it so my score isn’t perfect.

Why I won’t chase a perfect credit score

There are probably steps I could take, if I were so inclined, to try to get back to a credit score of 850. But I don’t feel compelled to do that.

For the past number of years, my credit score has fluctuated, but it’s been above 800 throughout. And that, frankly, is good enough for me.

I don’t have any near-term plans to apply for a loan. But I know that if I do, a credit score of 820 or 825 is going to put me in just as strong a position to get approved and snag a favorable borrowing rate as an 850 would. So it’s just not worth the effort to try to raise that number.

Now, if my credit score were in, say, the lower 700s, then I would be making an effort to raise it, even though a credit score in that range is still pretty good. But once your score tops the 800 mark, you’re in really good shape from a borrowing perspective. And since that’s the situation I’m in, I figure there’s no need to stress myself out over the fact that I’m not still sitting at 850.

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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. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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Father’s Day is coming up. Read on for some bulk Costco items that could make a great gift. 

Father’s Day will be here before we know it. If you love your dad but tend to struggle to come up with great gift ideas, get ready to break that cycle. Rather than focus on the perfect gift, you might instead want to focus on a practical gift — in bulk. Here are some bulk Costco items your dad might end up thrilled with this June.

1. Kirkland Signature Golf Balls

For some dads, there’s nothing more fun than a day at the golf course. If you’re looking for a great gift, consider a set of two dozen Kirkland golf balls. Costco is offering these online for $34.99 with shipping and handling included, though it’s worth noting that Costco prices can vary based on geographic location. Prices can also vary between online and in-store purchases, so if this is an item you’re interested in, it could pay to visit your local warehouse club and see if it’s less expensive there.

2. Scotts EZ Seed Patch & Repair Tall Fescue Lawn Patch

Some dads really take pride in their lawns, but maintaining one can get expensive. This Father’s Day, consider giving your dad the gift of a more vibrant lawn — or rather, the tools needed to make that happen. Costco is selling a 25-pound bag of Scotts EZ Seed Patch & Repair Tall Fescue Lawn Patch for $58.99, including shipping. It’s a great product for evening out lawns and filling in bare spots that may look unsightly.

3. Pacific Gold Original Beef Jerky

Due to its high protein content, beef jerky is a great snack for active people on the go. If your dad is a jerky fan, you may want to incorporate a bulk pack from Costco into his Father’s Day gift. You can scoop up a 12-count of 1.25-ounce bags of Pacific Gold Original Beef Jerky for $21.99.

4. Gillette Sensor 2 Plus Disposable Razors

This may not be the most exciting gift you’ll give your dad this Father’s Day. But if you’re looking for something useful, this 52-pack of Gillette Sensor 2 Plus Disposable Razors might fit the bill. At a price point of $39.99, you’re paying just $0.77 per razor. Pair this pack with a nice bottle of aftershave, and your dad might walk away thrilled.

5. Steel Vision 85-piece Impact Torsion Bit Set

If your dad loves his tools and enjoys getting his hands dirty, then you may want to consider this 85-pack of torsion bits. It not only includes a variety of screwdriver bit sizes, but comes in a handy case. Of course, to really make your Dad’s day, you may want to invent a project you need his help with so he can put these bad boys to work.

Shopping at Costco commonly means racking up a lower credit card tab in the course of your purchases. All of the bulk items above are deals worth jumping on while you can. In fact, you may even want to pick up one or two of these items for yourself so you can save money on your own snacking, grooming, lawn care, and entertainment.

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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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