Money Management

A writer recently learned something new about her Costco executive membership. Read on to see if it might benefit you. 

Years ago, I made the decision to upgrade my basic Costco membership to an executive membership. And I haven’t gone back since.

What drew me to the executive membership is the fact that I get 2% back on all of my Costco purchases. This includes any Costco purchases I make online. When I add that to the cash back my credit card gives me, shopping at Costco puts a lot of money back in my pocket.

But while I’ve had an executive membership at Costco for many years now, it was only recently that I discovered a perk I never knew existed. Not only can you order checks through Costco, but if you have an executive membership, you can save an additional 20% compared to what people with a basic membership pay. I only wish I’d known that before ordering a whole batch of checks from my bank.

Another way to save at Costco

Costco prides itself on offering members ways to save money on a host of products and services, from prescriptions to travel. It wasn’t until a few weeks ago that I realized that ordering checks at a discount through Costco was a possibility.

And we’re not talking about boring checks, either. Costco offers a host of fun designs you can choose from, like Disney characters.

Now, it happened to be that a short while ago, I had to write out a check to the landscaper I use for lawn care, and I realized I was pretty much out of checks that day. Because I make so many payments via credit card or Venmo, I just didn’t notice I was running low. So I logged into my online bank account and ordered a batch without shopping around for options.

I paid $11 for 100 checks through Capital One, which is where I have an online checking and savings account. But at Costco, you can order 400 checks for $41.06 if you have a basic membership. And the cost with an executive membership is $32.85, which is a much better deal.

A good thing to know

All told, I could’ve saved myself a bit of money by ordering my checks through Costco. At Costco, my cost per 100 checks would’ve been $8.21, as opposed to the $11 I paid.

Thankfully, it’s not a huge difference. I can’t pretend that the roughly $3 extra I spent by ordering checks through my bank is something I’m going to get upset over (not when I probably throw $3 into the trash every day in the form of wasted food that my picky eater kids refuse to consume). But still, it’s good to know that the option to order low-cost checks through Costco is available. And it’s also nice to see that executive members get to enjoy added savings on this expense.

Granted, I wouldn’t recommend getting an executive membership at Costco for the express purpose of saving money on checks. But if you’re already paying for that upgraded membership like I am, then you might as well make the most of 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.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 has positions in and recommends Costco Wholesale. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Approximately 97% of day traders lose money. Read on to find out why, and what steps to take if you decide to day trade. 

Day trading has gained immense popularity over the years, with many people taking it on as a full-time career or a part-time source of income. Day trading has become one of the fastest-growing trends on social media. With the rise of commission-free trading apps and the accessibility of online trading platforms, it’s easy to see why so many people are drawn to day trading. Here are three reasons why you should be cautious before you start day trading and what you should know before taking the leap.

Reason 1: Day trading requires a lot of discipline

Investing your money requires a lot of discipline and self-control. One of the biggest mistakes that novice traders make is to let their emotions get the best of them. Day trading is a high-stress activity where you need to make quick decisions based on rapidly changing market conditions. Emotional decisions can lead to irrational behavior, which can cause you to lose money.

According to one study of Brazilian futures traders, 97% of them lost money over a period of 300 days. Another study showed that 70% of traders on average lose money every quarter, and within a year traders typically lose 100% of their money. This is because they do not have the discipline required to stay focused and make rational decisions. If you are someone who struggles with discipline, then day trading might not be the best fit for you.

Reason 2: Day trading requires a lot of time

Day trading can be a full-time job. To be successful, you need to devote a lot of time to researching and analyzing the market. This means you need to be awake when the markets are open, which can be very early in the morning or late at night. You also need to be constantly monitoring the markets throughout the day as they can change rapidly and unexpectedly.

If you have a full-time job or other commitments, then day trading might not be feasible for you. Even if you do have the time, day trading can be mentally exhausting, and you need to take breaks to avoid burnout.

Reason 3: Day trading is risky

Day trading is a high-risk activity. The market can be volatile, and stock prices can change rapidly. This means that you can make a lot of money very quickly, but you can also lose a lot of money just as quickly. According to statistics, only 1% of day traders consistently make a profit.

If you are risk-averse, then day trading is not for you. You need to be comfortable with the idea of losing money, and you need to have a long-term strategy in place. This means that you need to be patient and not get caught up in the short-term fluctuations of the market.

Still plan on day trading? Try this

If you do believe that you can make a profit with day trading, it is important to follow these tips to minimize losses and help maximize your gains.

Educate yourself before investing

If you’re considering day trading, be a smart investor and do your due diligence. Educate yourself by studying the market and make informed decisions when buying or selling stocks. It’s essential to have a sound knowledge of technical analysis, chart patterns, and market trends to make profitable trades. Joining online communities or groups with credible sources of information can also be a great way to get started.

Discipline and practice are essential to becoming a successful and consistent trader. Adhering to trading plans and effectively managing your emotions while avoiding distractions is critical. Experienced traders emphasize the importance of creating a well-documented trading plan before stepping into the market.

Risk management is KEY

It’s essential to keep a check on how much money you’re willing to lose while taking calculated risks. Traders who don’t use proper risk management strategies can end up losing their invested capital quickly. To make sure profits outweigh risks, you can set up stop-losses to protect your investments in case things don’t go as planned.

A stop-loss is an order that you can place on a trade to limit your losses. This order instructs your stock broker to sell a security (such as a stock or currency) once it has reached a certain price, which means that your potential losses are capped at that point. For example, if you place a stop-loss order on a stock at $50 and the stock drops to $45, your broker will automatically sell the stock at the next available price. A stop-loss can be a helpful tool for both experienced and amateur investors, particularly if they want to limit their losses in a volatile market.

Beware of scams

Social media platforms have reaped money from inexperienced traders by offering “hot tips” or “magic formulas” for making a profit. If they had the magic formula, they wouldn’t be selling it — they would be using it to make money! No one has special information that can guarantee success, so be careful before spending money to get what may be advertised as guaranteed success formulas.

Day trading is not for everyone. It requires a lot of discipline, time, and risk tolerance. If you are thinking about day trading, then you need to do your research, have a long-term strategy in place, and be prepared to lose money. While some can make money day trading, it’s important to remember that it’s not all sunshine and rainbows.

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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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Have a sports fan in your life? Read on for some great gifts you might find at your local Costco or online. 

Having a sports fan in your life can sometimes make gift-giving easier. After all, you can simply find a water bottle, sweatshirt, or towel with their favorite team’s logo, and voila — your work is done.

That said, you can only play the team logo card so many times. So if you have a sports fan in your life with a special event or birthday coming up, you may be struggling to find the right gift.

The good news is that Costco has you covered. Whether your special someone likes to watch sports or play sports, Costco has a nice range of gifts at affordable prices, which is important if you’re watching your savings account balance. Here are some options worth checking out.

1. Icon Sports Men’s International Soccer Jersey

Have a soccer fan in your life? This men’s jersey is a great shirt for them to wear to a game — whether it’s one they’re watching or participating in actively. Costco has this item available online for $19.99, and that price includes shipping and handling.

Costco prices can vary by metro area, though, so you’ll need to input your ZIP code on Costco.com to see what price you get. The $19.99 price applies to the New York metro area.

2. Major League Baseball Tickets

It’s gotten expensive to take the family out to the ball game. Thankfully, Costco’s got you covered with its baseball ticket bundles. For a preset fee, you’ll get two tickets to see your team of choice on certain dates.

The cost here will depend on your home team. A two-pack of tickets to see the Texas Rangers, for example, is $99.99. For the Arizona Diamondbacks, it’s $74.99.

3. Kirkland Signature Leather Golf Gloves – 4-pack

Have a special person in your life who loves to play golf? You can surprise them with a four-pack of gloves. Costco makes a set for left-handed players as well as right-handed players. And the best part? You’re only looking at a $29.99 credit card tab (though again, prices can vary by metro area).

4. Selkirk Sport SLK Latitude 2.0 Pickleball Bundle

Pickleball is becoming an increasingly popular sport. This bundle gives your special pickleball fan a chance to get in the game. It comes with two paddles, three balls, and a convenient bag to carry everything in for $99.99.

5. Tobin Sports Wavebreak Inflatable 2-person Kayak

There’s nothing like throwing a kayak out onto the water on a nice summer day. This set includes an inflatable kayak, paddles, removable seats and fins, a hand pump, and a gear bag so you can pack everything you need to take with you on the water. For $249.99, you can have this set delivered to your door, though it may be available for a lower price at your local warehouse club store.

You might mostly rely on Costco for things like groceries and household products. But actually, Costco can be a great resource when you’re trying to find the perfect gift — whether it’s sports-related or something else. And so it pays to browse the aisles of your local Costco store or check out its online selection and see what’s available.

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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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Personal loans and credit cards can both be smart financial tools, but one could be the better choice for you. Here’s how to tell. 

When it comes to financing large purchases or consolidating debts, two of the main ways you can do it are personal loans and credit cards. Both can be excellent financial tools in the right circumstances.

But which is best for you? Here’s a quick guide of how you can compare the two financing options to figure out which is the better fit for your borrowing needs.

How long do you need to pay the money back?

If you’re able to pay the money back right away — or even within the next few months — a credit card typically makes more sense. If you pay your credit card balance in full before your next statement, you won’t pay any interest at all. Plus, even if you have to pay a month or two of credit card interest, it can be better than a personal loan, especially if the personal loan has an origination fee.

Personal loans are generally the better choice if you need years to pay back the money you borrowed. Even if your personal loan’s interest rate is comparable to that of a credit card, it can be useful to have a fixed repayment schedule and a clearly defined loan term.

On the other hand, many credit cards offer 0% intro APR deals that can allow you to finance purchases for a certain amount of time with no interest whatsoever. Our favorite 0% intro APR credit cards have promotional periods ranging from six to 21 months, so if you’re confident you can pay off your purchase within that time window, it could be a smart way to go.

What interest rates are offered?

While there are other factors to consider, it’s still important to compare your borrowing costs.

When it comes to credit cards, the average interest rate in the United States is 23.84%, according to LendingTree. And most Americans can’t tell you what their interest rates are on their individual credit card accounts. You can usually find yours online or by looking at your latest credit card statement if you aren’t sure. Obviously, if you’re using promotional financing with a 0% APR, you don’t need to worry too much about it, but it’s still worth knowing what interest rate you could have to pay.

With personal loans, you can quickly and easily check your interest rates with as many lenders as you’d like. Most online personal lenders will show your personalized loan offers after you fill out a short prequalification form and agree to a soft credit check.

How much do you need to borrow?

There is absolutely no way to know what your limit on a new credit card will be until you apply. But in general, the typical borrower can get approved for a higher amount with a personal loan than with a credit card. Our favorite personal lenders offer loans in amounts ranging from $1,000 to $100,000. Meanwhile, the average American has a little over $31,000 in combined credit limits from their credit cards.

The point is that if you need to borrow a five-figure sum of money (or more), you might have difficulty putting it on a credit card.

What impact will this have on your credit score?

One other thing you may want to consider is how each type of debt impacts your credit score.

The FICO credit scoring formula, as well as most others, consider the amounts you owe on debts. In the FICO formula in particular, “amounts you owe” makes up 30% of your score. Although this includes the amounts you owe on revolving debts like credit cards as well as installment loans, they aren’t treated equally.

Generally speaking, installment loans are considered far more favorably in credit scoring. And that’s especially true if you’re comparing a new personal loan to a credit card with a relatively high balance compared with its credit limit. So, if you need to finance a large purchase, a personal loan is typically the better choice from the standpoint of which could have the most negative impact on your credit score.

Which is best for you?

As you have probably figured out, there’s no perfect answer. It depends on your unique situation. But now you have a framework for comparing credit cards versus personal loans, so you’ll be able to figure out the best choice for you.

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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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Need a TV? Read on to see why Costco could be a good place to purchase one. 

Having a TV technically isn’t a necessity. But it’s certainly a reasonable item to have access to. So if your TV is on the fritz, or you’re ready for an upgrade, and you don’t have nagging credit card debt, then it may be a purchase worth prioritizing.

There are plenty of stores you can hit when you’re seeking a new TV. But if you have a Costco membership, you may want to buy your next TV there. Here are some of the reasons why.

1. Extended warranties

When you buy a TV from a regular electronics store, it’s common to get a one-year warranty. When you buy a TV from Costco, you get a two-year warranty. That time frame begins on the day you purchase a TV from a warehouse club store or the date of delivery if you order your TV online.

This perk is also available to all Costco members. Even if you only have a basic membership, you still get the extended warranty.

2. Technical support

Installing and operating a TV is, for many people, a fairly simple thing. But you may run into trouble, especially if you’re not the most tech-savvy person.

When you buy certain electronics from Costco, including TVs, you’re eligible for free technical support. Costco also has a whole section on its website dedicated to technical support for TVs. You can choose your product and manufacturer and get access to helpful resources.

3. Low prices

Buying a TV at Costco often means paying less for it than buying a TV elsewhere. If you need a new TV but don’t want to ding your savings account too badly, then Costco could be a good choice.

That said, it can be tricky to compare TV prices at Costco versus other retailers for a few reasons. First, Costco prices vary by region. The cost of a given Costco item in Ohio might differ from the cost in California — even when that item is purchased online.

Also, the cost of a given Costco item online might differ from its local in-store price. This holds true across a range of product categories.

Finally, some electronics are made specifically for Costco, so you may not find the exact same model at another store or retail site. And it’s a little hard to compare prices when you’re not talking about the exact same model. However, you can try to get close.

As an example, right now, Costco has the LG 75″ Class – QNED80 Series – 4K UHD QNED TV on sale for $1,199.99 (Note that this item may not be available in all markets, or at this price in all markets). And that TV comes with a $100 streaming credit toward services that include Google Play, Paramount+, Sling TV, or Xbox. There’s also an extended warranty bundled into this specific TV purchase beyond Costco’s standard two-year warranty.

Amazon has a similar LG TV available for $1,939.99. That’s clearly a big difference in cost, and you don’t get the added perks like the streaming credit and extra coverage.

To be clear, Costco will not always have the best TV prices. It pays to do your research to see who has the best deal for the specific type of TV or model you want.

Buying a TV at Costco is a decision that might work out very well for you. But remember, if money is tight or you’re behind on bills, it’s a purchase worth putting off until your financial picture improves — especially if you happen to have a functional TV at home 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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet and Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, and Costco Wholesale. The Motley Fool has a disclosure policy.

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