Money Management

A big savings opportunity could be coming to Amazon. Read on to learn more. 

Last year, Amazon Prime Day, which took place on July 12 and 13, was one of the most highly anticipated shopping events of the year. So far, Amazon has not put out an official date for 2023 Prime Day. But many retail experts think it’s going to happen in mid-July once again.

If you enjoyed a host of savings last year during Prime Day, then you may be eager to do the same this year. But if you want to enjoy those bargains without landing in a pile of credit card debt, then the time to start banking extra money is now.

Give yourself the option to spend

It’s not guaranteed that the items on your Amazon wish list will all go on sale during Prime Day this year, whenever it happens to fall. But based on last year’s event, it’s fair to say that a number of items will be discounted during Prime Day 2023, some heavily so. And if you want the option to spend somewhat freely on Prime Day, then you may want to do what you can to boost your savings account balance ahead of the big event.

In fact, one thing you may want to do is look at your credit card statements from last July and see how much of a Prime Day tab you racked up. You can also check your order history on Amazon to get that data. If you spent $300 in 2022, there’s a good chance you’ll want to spend a comparable amount in 2023. So that might be a good savings goal to set.

How to boost your savings ahead of Prime Day

Given that inflation has driven up the cost of living, it’s harder these days to carve out savings simply by cutting back on expenses. But still, if you’re willing to shed a few bills in the next month or two, you might end up giving yourself more of a cushion for Prime Day.

Think about the non-essential expenses you’re covering. Are you paying for a streaming service you don’t get much use out of? Canceling it for a couple of months could mean getting to make one extra Prime Day purchase without having to rack up costly debt.

Also, think about getting yourself a side hustle. There’s nothing wrong with doing so for the express purpose of having more money at your disposal for when Prime Day rolls around. And if you end up enjoying that side gig, or finding that it’s easy enough to incorporate into your schedule, then you may be inclined to keep at it even once Prime Day has passed.

We don’t know when Prime Day is set to occur in 2023. But if Amazon repeats its 2022 strategy, then this year’s Prime Day might be upon us pretty soon. And that means you don’t have a whole lot of time to save up for the big event. So if you want the option to jump on those deals, your best bet is to map out a savings game plan now.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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April’s unemployment numbers are low. Read on to see why that’s not necessarily a good thing. 

Many financial experts are continuing to warn consumers about an impending recession. Even the Federal Reserve itself anticipates a near-term economic slowdown, albeit a mild one.

What’s confusing about those unpleasant warnings, though, is the solid state of the labor market. In April, the U.S. unemployment rate fell to 3.4%, and the U.S. economy added 253,000 jobs. That figure may get adjusted upward or downward slightly, as that tends to happen with job-related data. But either way, these numbers certainly paint a positive picture.

That’s not necessarily something for consumers to celebrate, though. While you’d think that a low level of unemployment and an abundance of jobs would be a good thing for the economy, all of this positive data could set the stage for additional interest rate hikes on the part of the Federal Reserve.

Consumer borrowing costs could soar

On May 3, the Federal Reserve raised its benchmark interest rate by 0.25% for the third time this year. That means the cost of borrowing across the board now has the potential to rise even more.

The Federal Reserve does not directly set consumer interest rates. But when it raises its federal funds rate, which is what banks charge one another for short-term borrowing, it tends to drive consumer borrowing costs upward. So in the coming months, it might become even more expensive to borrow money, whether in the form of an auto loan, a personal loan, or a home equity loan.

How do rate hikes relate to unemployment data? It’s simple. April’s positive numbers are an indication that the U.S. economy is not slowing down. But the Fed needs the economy to slow down in order to cool inflation. The whole reason the central bank has been hiking up interest rates is to bring inflation down to a more moderate level.

In fact, the addition of more than 250,000 jobs is a sign that consumer spending has the potential to increase in the coming weeks rather than decrease, which is what the Fed wants. And in light of this news, the Fed might have to raise interest rates yet again to get closer to its inflation target, thereby hurting consumers who need to borrow.

Be careful when signing a loan right now

It’s a nice thing that the U.S. labor market seems to have plenty of jobs. But a healthy jobs report could set the stage for even more expensive borrowing, so those looking to make big purchases in the coming months and finance them may want to hold off.

Meanwhile, rising interest rates are a big problem for consumers carrying variable-interest debt, like credit card balances. Paying those balances off before the Fed’s next rate hike would be ideal for those who can swing it.

And for those who can’t, today’s strong labor market extends to the gig economy. A side hustle could be the ticket to shedding credit card debt before it becomes even more expensive.

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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 special gift for your mother? Read on to see why Costco might easily have you covered. 

If you’re stressing out over Mother’s Day this year, you’re no doubt in good company. Many people struggle to come up with a nice gift for their moms. And if you’re trying to conserve funds and add cash to your savings account these days in light of inflation, then you might feel especially limited in what you can spend on Mother’s Day.

The good news is that Costco carries a host of items that could make for a really nice Mother’s Day gift. And since shopping at Costco often means racking up a lower credit card tab than shopping elsewhere, you may find that you’re able to stretch your Mother’s Day budget quite nicely.

Here are a few specific Costco items to look out for if you need a Mother’s Day gift.

1. Gourmet food baskets

What do you get for the mother who has everything? Fancy food, of course. This way, your mom won’t complain that you’ve given her something she doesn’t have room to store. Costco sells a variety of gift baskets that are loaded with delicious food items. Check out the selection at your local warehouse club store, or browse online to see which food or snack bundle you think your mom will appreciate the most.

2. Spafinder gift cards

It often pays to purchase your gift cards at Costco. That’s because you’ll typically get to buy those gift cards for a lower price than their face value. Meanwhile, for many moms, the gift of relaxation is the best gift of all. So it pays to head to your local Costco (or shop online) and pick up a Spafinder gift card for your mom.

3. Perfume

Costco carries a range of perfumes both in stores and online. If your mom enjoys perfume, you might score a better price at Costco than at an outside retailer.

For example, Costco offers a 2.5-ounce bottle of Givenchy Dahlia Divin Eau de Parfum for $46.79 in the New York metro area. (Do note that Costco prices vary by metro). Amazon carries the same item for $56.55.

4. A Fitbit

Have a mom who’s active? A Fitbit could be a great gift. Costco carries a variety of Fitbit models. Right now, the Fitbit Luxe Fitness and Wellness Tracker is available for $79.99 in the New York metro area. Your price may be different depending on where you live. Amazon has the same item for $89.95.

5. Loungewear

Being a mom is a demanding job — especially for moms of younger kids. As such, your mom might enjoy nothing more than changing into something comfortable at the end of a long day to sit on the couch and relax. Costco offers a range of loungewear products, from joggers to hoodies to matching sets. To give the gift of the ultimate “kick back and relax” experience, add a cozy throw blanket to your gift, which you can also find at Costco.

All of these gifts could make your mom extremely happy this Mother’s Day. But here’s one final gift you may want to consider: the gift of a Costco membership if your mom doesn’t have one already. For just $60 a year, you can purchase a basic membership that gives your mom access to Costco and all of its marvelous deals. You may even decide to splurge on an executive membership so your mom can score 2% back on all of her Costco purchases.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com and Costco Wholesale. The Motley Fool has a disclosure policy.

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Excited about Amazon Prime Day? Read on to see if a date has been announced. 

There are certain shopping events that consumers tend to look forward to all year. Black Friday is generally a big one, and the same holds true for Cyber Monday.

But you may not have to wait until late November to enjoy a host of bargains. Last year, Amazon Prime Day, a massive two-day shopping event, took place on July 12 and 13. Consumers across the world spent over $12 billion in the course of the most recent Amazon Prime Day. And it’s fair to assume that we’ll see a repeat this year.

But when is 2023’s Amazon Prime Day scheduled for? The bad news is that Amazon has yet to announce a date officially.

But many retail insiders expect the event to happen in mid-July once again. And that means you only have a couple of months to boost your savings account balance in anticipation of Prime Day 2023.

The time to save for Prime Day is now

Having its annual Prime Day shopping event in July works to Amazon’s benefit. That way, it doesn’t have to compete with other holiday shopping events that come later in the year.

Of course, there’s no guarantee that Prime Day will happen in mid-July this year. But there’s a good chance the event will happen at some point during the summer. So if you’re interested in taking advantage of the deals Amazon commonly puts out, then the time to start setting aside extra funds in the bank is now.

If you don’t save for Prime Day ahead of time, you might end up racking up an expensive balance on your credit card that you don’t manage to pay off for months. And the interest you accrue in that situation might wipe out any savings you reap by scoring Prime Day deals.

Should you sign up for Amazon Prime ahead of Prime Day?

You may be thinking of signing up for Amazon Prime to take advantage of the many deals that are apt to emerge during Prime Day. One thing you should know is that you’re allowed to sign up for a free 30-day trial of Amazon Prime if you haven’t been a member over the past 12 months.

If you really only want to sign up for Amazon Prime to benefit from Prime Day, then it pays to start your trial membership closer to when Prime Day is set to kick off. Since we don’t know when that is just yet, you may want to wait on that free trial until more details come out.

Meanwhile, if you have an existing Amazon Prime account but have been thinking about canceling it, you may want to hold off for another couple of months. That way, if Prime Day does happen in July, you’ll be in a good position to take advantage of it.

Of course, we don’t know what deals are in store for Prime Day this year. Amazon commonly leaks certain deals ahead of time, but given that the dates for Prime Day have yet to be announced, it’s hard, at this point, to get a handle on what will be on sale.

But based on previous years, it’s fair to assume that you’ll be able to find discounts on everything from toys to apparel to electronics on Prime Day. So it’s definitely worth setting some money aside for the big event — no matter when it ends up happening.

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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.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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