Money Management

Need to pay for a wedding? Read on to see why taking the money from your emergency fund is a bad idea. 

Getting married is exciting — but it can also be expensive. In 2022, the average cost of a wedding was $30,000, according to The Knot. And even if you’ve been diligent about socking money away in a special savings account to pay for your upcoming wedding, you might still end up short of the total sum you need.

Unfortunately, because weddings are so expensive, many people wind up accumulating credit card debt in the course of paying for them. And clearly, that’s not ideal.

If you’d rather steer clear of wedding-related debt, you may be tempted to pull some money out of your emergency fund to pay for your big day. But that’s a move you might sorely regret.

Don’t forget why you built your emergency fund in the first place

The reasoning behind an emergency fund is simple. You need cash reserves to fall back on when unexpected expenses pop up, or when circumstances make it so you’re unable to work and earn money for a period of time.

Let’s say you bring home $4,000 a month. Chances are, you don’t save half of your paycheck. Well, what if your car were to need a $2,000 repair? That’s where your emergency fund would come to the rescue.

Similarly, if you were to get laid off at work, it might take a few months to find a new job. In that scenario, you’d want your emergency fund on hand to cover your bills.

It’s for these reasons that tapping your emergency fund to pay for a wedding is really not a good idea. You might think it makes sense to raid your own savings before resorting to debt since, well, the money is already there, and it’s already yours. But if you take a withdrawal from your emergency fund to cover your wedding costs, that money won’t be there for you when you truly need it.

A better way to pay for a wedding

In an ideal world, you’d be able to pay for your wedding outright. And to be clear, there are steps you can take to limit your costs. These include keeping your guest list on the smaller side, choosing an inexpensive venue, opting for a weeknight wedding, and asking friends to help out to minimize the number of vendors you have to hire (for example, have your buddy who’s great with a camera take pictures).

But your wedding is also, well, your wedding. And there are certain details you may not want to compromise on.

As such, if you need extra money to pull off the big event, consider looking at a personal loan. You’ll still end up having to pay interest on the sum you borrow, but you might spend a lot less on interest than you would with a credit card.

All told, it’s hard to pull off a wedding on a shoestring budget. And even if you do your best to save for yours, you might still end up with a shortfall.

The one thing you don’t want to do, however, is pull money out of your emergency savings to cover the cost of your wedding. Doing so could leave you extremely vulnerable when an actual emergency happens.

These savings accounts are FDIC insured and could earn you 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.

 Read More 

Want to grow $100 into a larger sum? Read on to see how. 

Given the way inflation has been surging lately, many people are barely managing to make ends meet, let alone free up $100. But what if you happen to have $100 at your disposal? Maybe you received a bonus at work or a birthday gift for that amount. Or maybe you were going through your stack of holiday cards and realized you never deposited that generous check from Aunt Mary.

Either way, if you’re sitting on $100, you have different opportunities for investing that money. Here are a few worth looking at.

1. Buy individual stocks

Buying stocks is a great way to invest money you don’t expect to need right away. You can buy individual stocks in an IRA if you want your investments earmarked for retirement. If not, you can open a regular brokerage account and buy stocks there.

Now, you may be thinking that if you only have $100, you’re not going to be able to scoop up shares of too many different companies. But actually, these days, many brokerage accounts allow you to buy shares of stock on a fractional basis. This means that rather than purchase shares in full, you can spread your money around by buying pieces of shares.

Say there’s a given company whose stock is trading for $100 a share. If you only have $100 and want to own a piece of that company, a full share would eat up all your money. But if your brokerage account allows for fractional investing, you could spend $20 on one-fifth of a share and then do the same for other stocks so you’re able to diversify.

2. Buy shares of an ETF

ETFs, or exchange-traded funds, make it easy to build a diverse portfolio without having to do a lot of work. If you put your $100 into an S&P 500 ETF, for example, you’ll effectively be investing in the 500 largest publicly traded companies.

Meanwhile, the S&P 500 index, which is generally considered to be representative of the broad stock market, has delivered an average annual return of 10% over the past 50 years. If you were to put $100 into an S&P 500 ETF today that delivers that same return and leave it alone for 50 years, you might end up with over $11,730. Now that’s a nice return.

3. Invest in a side hustle

If you’re not ready to invest in stocks or other assets whose value has the potential to fluctuate, you can use your $100 to grow your income. Let’s say you’ve been wanting to start a pet-sitting side hustle but money has been tight. You could use your $100 to invest in some bowls, treats, and supplies. Then, once you start getting clients, you might find that you’re able to earn your $100 back quickly — and then keep earning and earning on top of that.

While $100 isn’t a life-changing sum, you can do a lot of big things with it. And the sooner you put that money to work, the more it might do for you.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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.

 Read More 

Many people registered for wedding gifts at Bed Bath & Beyond. Read on for some other options now that the store is going out of business. 

When Bed Bath & Beyond announced that it would be closing its doors for good, many people were beyond disappointed. Not only did many consumers have piles of those iconic 20% off coupons just waiting to be spent, but many people realized that finding a replacement store for low-cost household goods would be easier said than done.

But as much as the closure of Bed Bath & Beyond has been a blow to everyday consumers, it’s been problematic for engaged couples. That’s because Bed Bath & Beyond was a popular place for couples to register for wedding gifts.

But if you’re tying the knot, you’re not out of luck. There are plenty of other options for creating a wedding registry. You’ll just want to explore your choices carefully and make sure you understand the return policy for each.

1. Macy’s

Macy’s carries a range of kitchen gadgets, linens, towels, and other items that are perfect for couples who are buying a home for the first time or moving into a new one. Those who register at Macy’s can benefit from a newlywed discount on the purchases they make off of their own registries and discounts on select product categories.

As far as returns goes, you can take items you received off of your registry back to Macy’s up to 90 days past your wedding date or past the date those items were purchased — whichever is sooner. From there, you can get store credit or exchange unwanted gifts for new purchases.

2. Target

Target is a great place to register for wedding gifts because the big-box giant has a massive selection of products to choose from. You can register for not just kitchenware and sheets, but furniture items, lamps, throw blankets, rugs, and other household accessories.

Plus, Target will give you a 15% off coupon you can apply to any leftover items on your registry that remain unpurchased once your wedding date passes. You can also return registry items for up to a year.

3. Amazon

There are plenty of good reasons to register for wedding gifts on Amazon. First, you can enjoy a 20% completion discount, which allows you to buy unpurchased items from your registry for less money. You can also return unwanted registry items within 180 days.

Amazon also offers a group gifting feature so that if you want to register for higher-priced items, your guests will be allowed to contribute money toward them. You can also have guests contribute to gift cards you can use on Amazon to buy just about anything — perhaps some new swimwear for your upcoming honeymoon, or an e-reader to take on your trip.

Shopping at Bed Bath & Beyond often meant racking up a lower credit card tab than shopping at other stores. You might not only miss Bed Bath & Beyond, but be disappointed that you can’t use it for your wedding registry. But thankfully, there are other options you can look at so your guests don’t have to rack their brains trying to figure out what gifts to give you.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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 and Target. The Motley Fool has positions in and recommends Amazon.com and Target. The Motley Fool has a disclosure policy.

 Read More 

You can use personal loan funds for any purpose. Read on to see if that means you can put that money toward a car. 

Buying a car is hardly an inexpensive prospect these days — especially if you’re looking to buy a new one. The average transaction price of a new vehicle was $48,008 in March, according to Cox Automotive.

But even if you’re buying a used car, you may not have the money in your savings account to pay for it in full on the spot. As such, you may have no choice but to borrow money and pay off your car over time.

Now, you may be inclined to take out a personal loan to cover your car purchase. But is that even allowed? The technical answer is yes. But whether it makes sense to take out a personal loan to buy a car is a whole different story.

An auto loan could make more sense

The nice thing about personal loans is that you can use your proceeds for any purpose. Want to finance a home renovation? A personal loan could help you do that. Looking to start a business? You can use the money you get from a personal loan to cover your start-up expenses.

Because personal loans generally don’t put restrictions on how you can use your proceeds, it’s technically possible to use one of these loans to buy a car. But that’s also not necessarily the best bet.

It’s true that personal loans can come with competitive interest rates. But if you shop around for an auto loan, you may find that you’re able to snag an even lower interest rate on one. Also, in some cases, you might have an easier time qualifying for an auto loan than a personal loan.

See, personal loans are unsecured, which means they’re not tied to a specific asset. With an auto loan, your loan is secured by the vehicle you’re borrowing money to purchase. This means that if you fall behind on your loan payments, your lender could repossess your car if need be to get repaid.

With a personal loan, it can be harder for a lender to recoup its money if you stop making payments. That’s why an auto loan may be an easier one to snag — especially if your credit score doesn’t happen to be the best.

Be careful with a personal loan

The fact that personal loans are so flexible can be both good and bad. On the one hand, it’s nice to be able to apply for a single loan and use your proceeds to, say, fix up your home and car if you have both needs.

But the flexibility that comes with personal loans might lead you to borrow money for the wrong reasons. You shouldn’t, for example, put yourself in debt to take a vacation. But if you’re tempted to sign a personal loan so you can travel, you might land in that very boat.

Now, a car is hardly a frivolous purchase. Chances are, you need one to function and get to your job. So using the proceeds from a personal loan to buy one isn’t necessarily a terrible choice. It may just be that taking out an auto loan is a more cost-effective way to finance a vehicle purchase.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More 

Joining a warehouse club like Costco may help you save money, but it isn’t a guarantee. Check out some of the ways you may overspend at Costco. 

For many people, shopping at a warehouse club can result in significant savings. Buying everyday essentials in bulk can be cheaper than buying them in smaller quantities at traditional stores. But if you’re not careful, it can be easy to overspend while shopping at warehouse clubs like Costco. It’s essential to consider your budget before you start loading up your cart, or your checking account may suffer. To help guide you, we’ve outlined a few of the most common ways people waste money while shopping at Costco.

1. Shopping without a plan

No matter where you shop, having a plan before you go is best. It’s easy to overspend when you don’t have a shopping list. The last thing you want to do is rack up expensive credit card debt from adding unnecessary items to your cart. As you create your list, check out the Costco mobile app or website to get a feel for current sales and product availability.

2. Buying bulk items that you won’t use before they expire

Many of the products sold at Costco are sold in bulk. The savings can be significant for everyday items you go through often. But make sure you look at expiration dates as you shop to avoid wasting your money.

You may waste food and money if you buy more than you need or are able to use. I’ve made this mistake myself. I once bought a gigantic tub of cookie dough, because who doesn’t want a never-ending supply of chocolate chip cookie dough? Since I live in a two-person household, I had to throw a lot of excess cookie dough away because it expired before we finished the tub.

3. Joining before reviewing club locations

A Costco membership may be worthwhile if you have a club nearby your home. But if you have to drive far to do your shopping, joining may not make sense. Some people purchase a membership only to realize that they don’t want to make the drive regularly. Before joining, you should review club locations and consider the time and cost to get there.

4. Falling for impulse buys

Costco wants you to spend more money because it makes the company more money. You may notice new-to-you items that attract your attention as you push your cart through your local club. While it can be fun to try new things sometimes, be cautious not to fall for every new item you see. Many shoppers waste money at Costco because they continuously fall for impulse purchases — and they later find out they don’t like or use what they buy.

5. Forgetting to compare prices

Costco has many great deals, but not every buy is a win for your wallet. You can find the best prices by comparing Costco’s prices with that of area competitors. Some items may be best to purchase at Costco. However, you may get a better price on some items by buying them elsewhere. Pay attention to price, brand, product size, and expiration date as you shop.

Be cautious not to spend more than necessary

If you’ve been considering joining a warehouse club like Costco, being aware of common mistakes like the ones above can help you avoid wasting your hard-earned money. Should you join a warehouse club in 2023? Maybe. But be sure to consider your personal finances and check to see if the products you purchase most are available at Costco.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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 Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

ChatGPT can compile real estate information in a snap, but is it accurate enough to help you find a home? Read on to find out. 

Imagine this scenario: You’re looking for a three-bedroom home in the suburbs of your favorite city with a price range of $350,000 to $400,000. Energy-efficient appliances would be nice (but not a deal breaker if it doesn’t have them) and you would love to be within a 15-minute drive of a grocery store, ideally Costco. Instead of searching Zillow and Redfin, you type these details into ChatGPT, and the AI machine brings up three properties instantly that are exactly what you want and gives you a good estimate of how much you should bid.

Sounds nice, doesn’t it? Well, unfortunately, ChatGPT isn’t that advanced. Currently, the chat AI’s data goes up to September 2021, which means it doesn’t know which properties are on the market today. It can’t perform a comparative market analysis (CMA) to help you figure out an offering price, and it most certainly can’t guarantee accurate knowledge on today’s real estate markets.

But use of ChatGPT is growing. In fact, according to The Ascent’s research on ChatGPT, around 28% of Americans are willing to use generative-AI to assist in the home-buying process. So while it can’t replace a real estate agent yet, here are some ways ChatGPT can help you hunt for a house.

Get basic information on a neighborhood

If you have a specific neighborhood in mind, ChatGPT can offer some basic facts, such as amenities, crime rates, walking score, local attractions, demographics, and the types of houses typically found there (such as single-family homes, condos, and townhouses).

For example, I typed in my neighborhood in Portland, the Pearl District, and it was fairly accurate. It gave details on our parks, mentioned the First Thursday Art Walk, and touched on our blend of industrial warehouses and modern apartment buildings.

To be sure, the information wasn’t comprehensive enough to give me a full picture of what’s in the Pearl District (it didn’t even mention Powell’s!). But as a starting point, it can accumulate data quickly and give you some facts to research if you want more depth.

Find your “ideal” place to live

ChatGPT doesn’t have real-time data and can’t tell you what’s selling on the market now. But if you’re a free bird and not tied to one place, ChatGPT could help you find a city that combines all of your interests.

I recently tried this for myself. I gave ChatGPT the following five criteria and asked it to pick a city for me:

A vibrant literary communityCultural diversityProximity to the oceanRenowned for its good foodIsn’t San Francisco (no offense!)

ChatGPT told me I should live in Seattle, Washington. This isn’t far from where I actually live and has been a city I’ve considered. In fact, when I asked ChatGPT to give me another city that isn’t Seattle, it recommended my city, Portland.

But I’ve also played around with it and found other cities I might be interested in. For instance, when I changed out “proximity to ocean” with “proximity to Trader Joe’s” and “Isn’t San Francisco” with “walking distance to daycares,” I got Cambridge, Massachusetts. I had never considered Cambridge, but after looking at it closer online, I could see myself living there.

Should you use ChatGPT to house hunt?

At this point in time, I wouldn’t depend on ChatGPT to help you find a house. Even the basic information it provides on home buying — such as getting a mortgage loan — isn’t always accurate and may not reflect current regulations. It cannot replace a real estate agent and should be used as a supplement to deepen your understanding, but not your primary source for finding a house to buy. It’s super exciting — and I’ve had fun with it — but it’s far from being reliable and comprehensive for house hunting.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Costco Wholesale and Zillow Group. The Motley Fool has a disclosure policy.

 Read More