Money Management

Trader Joe’s is a great place to shop if you’re a foodie. Keep reading to learn one writer’s top picks from TJ’s. 

It would certainly be a fair assessment to call me a foodie. I was extremely excited to get approved for a grocery rewards credit card last year, because grocery expenses form the third largest category of my budget (after rent and health insurance). And before I even applied for that card, I double-checked that I’d get cash back on my purchases at Trader Joe’s.

Sadly, I no longer live in a city with a TJ’s location, and now must travel either 50 miles in one direction or 90 miles in the other (I don’t visit that one often, for obvious reasons) to get to my closest store. So when I do go, I make it count. I bring a big cooler and often go first thing in the morning, before the store gets too crowded. Here are a few of the products I stock up on regularly.

1. Quinoa Stuffed Dolmas

I consider myself particularly blessed these days, because I am a lover of Mediterranean food and I live in a city with no fewer than six Mediterranean restaurants. That said, sometimes I want to be able to chow on my favorite dishes at home and on the cheap. This is where Trader Joe’s comes in. These stuffed grape leaves come in a can and run $2.99 each, which means I can fill my pantry for cheap. And while I also love Trader Joe’s original dolmas (which are stuffed with rice), the quinoa version is fun and different.

2. Jumbo Pitted Greek Kalamata Olives

As a lifelong olive fan, I’ve found that olives are one of those foods that people either love or hate. And to the haters I say, more for me! The $2.99 price point for these beats what I can find at my local grocery store, and kalamata olives are one of those foods I eat every week. Try adding them to salads, charcuterie plates, or even as a side dish to the Quinoa Stuffed Dolmas!

3. Chicken Gyoza Potstickers

I tend to spend a lot of time in the frozen foods section of TJ’s, and it’s definitely part of the reason I own a big cooler. I like being able to make a big Trader Joe’s run and keep everything frozen during the long ride home. I buy a few bags of these potstickers on every trip, as they make a fast and easy lunch and they taste really good. Plus, for $3.99 per pound, you can’t go wrong.

4. Vegetable Fried Rice

I love to cook, but sometimes convenience foods are a handy fall back — or in this case, a starting place for a recipe. Trader Joe’s Vegetable Fried Rice can be had for $2.99 per pound, and it’s an excellent way to save time on dinner. I keep bags on hand to serve with chicken or steak and vegetable stir fry. If you’ve got leftover Chinese takeout, this can be a nice pairing for that, as well.

5. Fig & Olive Crisps

Yes, olives again! These tasty little crackers are the perfect place to park a fancy spreadable cheese. If you’re feeling less fancy, try them with a little cream cheese and a dollop of jam. Or you can just eat them as-is, but where’s the fun in that? However you consume these, the $3.99 price point is quite budget-friendly.

With so many great products available, it comes as no surprise to me that Trader Joe’s was ranked the second-favorite grocery store in a 2022 YouGov survey. Shopping at Trader Joe’s is fun and can save you money — what’s not to like?

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

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Got an old credit card collecting dust? Keep reading to learn what to consider if you opt to close the account. 

Sometimes, things just don’t work out. This is true of jobs, relationships, and even credit cards. If you have more than one card, it’s possible that one of them just isn’t pulling its weight. Perhaps you’re paying an annual fee you can’t justify based on the benefits of the card. Or maybe you’re struggling with managing credit card debt, and closing this account will help you tighten up your money management. If this is the case, you might consider closing the account altogether. But what will happen if you cancel that card? Let’s find out.

Your credit score could take a hit

We may as well start with the worst possible consequences of closing that credit card: Your credit score could be impacted by the closure. There are a few ways this can be true. Your credit score is made up of several different factors, and each is weighted differently to calculate the three-digit number.

In the case of your FICO® Score (the most frequently used score by lenders), the amount of debt you have makes up 30% of your score. Closing a credit card means losing access to its credit limit, which forms part of your credit utilization ratio (the amount of credit at your disposal that you’re actually using). So that could result in a credit score hit.

The other way you might impact your credit score by closing that card is in the length of your credit history (15% of your FICO® Score). If that credit card has been in your wallet a long time, closing it could bring down the average age of your accounts to a significant degree.

You’ll lose the card’s benefits

You might not be fussed about this impact of closing a credit card, because if the card’s benefits were all that great, you might not be closing it. But it’s important to remember that if you’ve amassed a pile of rewards points based on using that card, you’ll lose access to them when you close the account. So be sure you use them before you close it.

You won’t have to pay an annual fee anymore

Here’s a nice thing about closing a credit card: If it has an annual fee, you won’t have to keep paying it. And this could be a nice bonus, especially if you’re not using the card enough to justify that fee dinging your checking account every year. Don’t get me wrong, sometimes an annual fee is worth it — but only if you’re getting benefits from the card that outweigh its cost.

You’ll have one fewer account to manage

This is another plus to closing a credit card, especially if you struggle to keep track of all your financial accounts. It’s also good from an identity theft perspective. If you have fewer open accounts, that’s fewer opportunities for your data to be exposed to hackers and for thieves to gain access to your account.

You may avoid temptation

Finally, if you’re closing the account to limit your opportunities to overspend, the loss of this credit card will help remove some of that temptation. Closing the card could be an opportunity to limit your credit card spending to those cards that give you benefits like cash back and rewards. Or it might be a chance to take a break from credit cards while you pay off debt on other accounts. (And there’s no shame in that — we all have to do what’s best for us and our finances.)

You’re allowed to close credit card accounts, but it’s best to approach it with an awareness of what could happen to your credit score and finances as a whole when you do. A quick note of caution: If you close a card that has a balance on it, note that you have to pay off the balance. Otherwise, the card issuer could send the bill to collections, and you don’t want that (or the impact on your credit score). Consider all angles and what you stand to lose (or gain) before you close a credit card.

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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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Putting retirement money into a savings account could lead you to fall short as a retiree. Check out why your retirement funds should be invested instead. 

You should be setting aside money for retirement right now. You can’t live on Social Security alone since it only replaces 40% of pre-retirement income. That’s likely not enough, so you need a nest egg you can rely on to provide the rest of the money you’ll need to support yourself.

Because I want to make sure I have a secure future as a retiree, I’ve been steadily investing for retirement. But not a penny of this money has gone into a savings account, and not a dollar of it will go into savings for the foreseeable future. Here’s why that’s the case.

Savings accounts won’t provide the necessary ROI

The biggest reason why none of my retirement money is going into savings is because I know I can’t earn the return on my investment (ROI) that I need by putting money in savings. Typically, high-yield savings accounts pay around 2.00% or less (although there have been some better rate offers recently during this time of high inflation). That’s not a very good return for long-term investing.

See, savings accounts aren’t designed to provide really generous returns since there’s no risk of losing money and there’s an inverse relationship between risk and reward. The higher the risk, usually, the greater the potential reward if it pans out. And I want to earn a reasonable return — while taking on reasonable risk — to make hitting my retirement savings targets more feasible.

Let’s say I wanted to amass $1 million for retirement over 30 years and I planned to keep my retirement money in a savings account that provided an average 2.00% annual return on investment. To hit my target goal, I would need to put aside $2,054.16 every month for 30 years. But if I invested my money instead and earned a 10% average annual rate of return, I would only need to invest $506.60 per month.

I don’t want to make my life a lot harder or reduce the chances of ending up with the needed funds, so I wouldn’t even consider limiting my returns by investing my retirement funds in a savings account.

Savings accounts don’t come with the same valuable tax breaks retirement accounts offer

Another big reason why I won’t put my retirement money into a savings account is because I want tax breaks for my retirement investments.

Tax deductions are available when you invest in a 401(k) plan through your employer and when you invest in an IRA opened at brokerage firms. In general, you don’t get to deduct money you contribute to a high-yield savings account in the year you make the contribution as you would with a tax-advantaged retirement plan.

Being able to claim a tax deduction for retirement investing is a huge benefit. Say you contribute $5,000 and are in the 22% tax bracket. The fact you don’t pay tax on the $5,000 will save you up to 22% of that amount or $1,100. That’s a lot of money. The tax savings makes investing enough for retirement easier.

What should you do with your retirement money instead?

Most people should not put their retirement money into savings for the same reasons I don’t. Instead, it’s a good idea to max out any employer matching funds by contributing to a workplace 401(k) if you’re eligible. As a self-employed person, I don’t have a 401(k) at work so I don’t do this step. Matching funds means your employer contributes money when you do, so it’s essentially free money your employer rewards you with when you save for retirement.

Next, consider whether you want to switch over to an IRA account, as an IRA can offer a broader choice of investment options for the rest of your retirement funds. If you happen to max out the IRA, then you can contribute your remaining retirement money for the year in your 401(k), as it has higher contribution limits.

The bottom line is, you want to be sure you’re putting your money into something you can invest in so you can find assets — like an S&P 500 index fund — that stand a very good chance of giving you the returns you need to build retirement wealth. This is the surest path to a secure future, while putting retirement money into savings would mean limiting your ROI and missing out on the tax breaks that are designed to help you build your nest egg. You don’t want to miss out, so open a brokerage account today for your retirement funds if you don’t have one already.

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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 Target. The Motley Fool has a disclosure policy.

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You may be surprised at this factor that has the potential to break up a marriage. Read on to learn more. 

These days, a lot of people have layoffs on the brain, and understandably so. Not only have many large employers been implementing layoffs since the start of 2023, but with all of the recession warnings that have been popping up, a lot of people are increasingly worried about losing their jobs.

Clearly, getting laid off could have a major impact on your finances. But you may not realize that it also has the potential to impact your marriage.

In fact, a recent Quicken survey found that about 50% of people would consider leaving their spouse in at least one scenario if they lost their job. Now to be fair, there’s a little more to the story than a glaring lack of empathy among those 50% of people.

When we dig deeper, we see that people would be more likely to end their marriage over job loss if the laid-off spouse started spending too much money or remained unemployed for more than a few years. And 16% of respondents said they’d consider leaving their spouse if their partner made no effort to look for a new job after losing one, which is more understandable.

But clearly, getting laid off has the potential to bring about unfavorable consequences. And while you can’t necessarily prevent a layoff, you can at least do this one thing to protect yourself and your family financially in the face of one.

Build an emergency fund

A big reason the loss of a job might drive some couples to split up is that being unemployed can be financially stressful. And financial stress can evolve into emotional stress, putting a strain on any given relationship.

That’s why it’s so important to do what you can to prepare for a layoff by building up an emergency fund. In a nutshell, you’ll want to make sure you have enough money in savings to cover at least three full months of essential living expenses.

As such, comb through your financial documents to figure out what your essential bills look like, from your mortgage payments to your utility bills. Aim for at least three times that amount so that if you were to lose your job, you’d have the ability to pay your bills while looking for work elsewhere.

If you go into a layoff with three months’ worth of bills in the bank, you may not experience so much stress in the wake of one. And if you’re able to show your partner that you’re able to pay your bills despite having lost a job, they may not react so harshly.

It’s important to be prepared

It’s pretty shocking to see that such a large percentage of couples would consider leaving their partner over a layoff. But the reality is that financial stress tends to be a huge reason why couples split up. So if you want to position yourself to get through not just a layoff, but a rough patch in your relationship, do what you can to build up the right amount of cash reserves.

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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 need to borrow money, your bank may offer a loan, but that doesn’t necessarily mean you should get it from that financial institution. Find out why. 

If you need to borrow money, you will likely have lots of options when it comes to lenders that offer you that chance — especially if you’re a qualified borrower. This is true if you’re getting a mortgage loan, as banks, online lenders, and credit unions typically offer home loans. It’s also true if you’re getting a personal loan, car loan, business loan, or most other kinds of loan products.

Chances are good you already have a relationship with a bank, though — the one where you keep your checking account and perhaps your savings account. And it may be tempting to just borrow through that bank rather than dealing with finding a different one.

The big question, though, is whether that’s actually a financially smart idea or not. And, in many cases, you may actually be better off looking elsewhere. Here’s what you need to consider to help you decide.

Benefits of turning to your own bank

There are some good reasons to consider using your own bank for your borrowing needs.

Doing all your banking at one place can be convenient

If you already have a bank account with a financial institution, then you’re familiar with your local branch, the customer service offered, and the products available. Going to that bank and getting a loan could feel simpler because you don’t need to decide where else to look to borrow. It’ll also be easy to set up autopay for your loan from a checking account with the same bank.

Your lender already knows you, so approval may be easier

In some cases, having an established relationship with the lender could make it more likely you’ll be approved for the loan. Since you’re an existing customer, the bank will be able to see your past habits.

You may qualify for loyalty discounts

In some cases, banks offer you discounted rates on other loans if you have a relationship with them already. For example, Bank of America offers $200 off mortgage origination fees for those who have at least $20,000 in a checking or brokerage account. That’s a good amount of savings.

These benefits could potentially be enough to convince you that it’s a good idea to borrow from your bank.

Potential downsides

There are also some huge downsides to consider, though. Here’s some of the reasons why you may want a different lender.

Your bank may not offer the lowest rates

If you just default to borrowing with your existing bank, you may not be aware there are cheaper options out there. And that could cost you — especially if you’re borrowing a lot of money over time. Say, for example, your bank offered you a $240,000 30-year fixed rate mortgage at 7.00%, while there was an online lender out there offering 6.50%. If you went with your bank, your monthly payment for principal and interest over 30 years would be $1,597, while if you opted for the cheaper one, it would be just $1,517.

Your bank may not offer the best selection of financial products

Depending on what kind of loan you want, your bank may not offer you exactly what you need. For example, your bank may not offer FHA loans, which you may be interested in using to buy a home if you don’t have a large down payment or good credit.

What’s the right choice?

For many people, these downsides outweigh the upsides — especially if borrowing would be costlier with your bank. The best course of action is usually to check what your bank offers but also look into what other lenders could do for you. If your bank has competitive terms, you may as well stick with it.

But if you can do better elsewhere, then don’t pay more just for the convenience of keeping your loans and checking account at the same place. It’s easy enough to manage multiple accounts online, and it’s worth the effort if doing so can save you a lot of 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.Bank of America is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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