Money Management

Pet care can be overwhelmingly expensive. Read on for tips on managing your vet bills when they get out of hand. 

There’s a reason pet owners are commonly advised to put pet insurance in place. Without a policy, you might struggle to cover the costs of things like surgery or expensive medical treatment for your pet.

But what if your pet care bills are still unmanageable despite having insurance? At that point, you may be ready to resign yourself to loads of credit card debt. But before you do, consider these options instead.

1. Negotiate with your vet

You might have a pet insurance policy to help cover your pet’s medical care. But veterinarians are often well aware that these policies commonly come with coverage limits, and that they also don’t cover pre-existing conditions.

That’s why it pays to talk to your vet about your financial situation and try to negotiate either a payment plan or a reduced rate for your pet’s care. In many cases, the former is something vets tend to be more amenable to, because it allows them to get their money, albeit over time.

2. Seek out assistance from different organizations

Even if you put money into your savings account and bought pet insurance to make sure you could cover your pet’s care, you might end up with bills that you’re not capable of managing. But in that situation, you shouldn’t feel bad about asking for help, and a good place to start may be a local animal rescue group in your area.

Sometimes, rescues have discretionary funds available to help struggling pet owners. And if you adopted your pet from an actual rescue, that specific organization may be especially willing to help cover some of your medical costs, even if your adoption took place years ago. Otherwise, the Humane Society has a list of resources you can explore if you need help covering your pet’s care.

3. Fundraise the money

Asking people you know (and those you don’t) for money to help cover your pet’s care can be an uncomfortable thing to do. But if you’re left with no better choice, you might as well go for it.

One option here is to create a GoFundMe campaign and try circulating it on social media. Another is to try to team up with a local business to fundraise for your pet. A local pet store or groomer, for example, might be willing to let you set up a booth outside their storefront.

You could even put up a lemonade stand or sell home-baked goods outside your home in the hopes of scrounging up some cash — though to be fair, if you need to raise $2,000 to cover your pet’s care, you’re going to have to sell a lot of cookies to meet your fundraising goal. But remember, if you tell people what you’re fundraising for, they might buy a $3 cookie and also throw an extra $5 or $10 in your donation jar. And that could add up.

A recent survey by Lemonade found that on average, pet owners would spend $6,060 to save their pets in an emergency situation. But that’s money you may not have. So before you wreck your finances in the course of providing care for your pet, consider these options.

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 

This common mistake we make while shopping at Costco is impacting us economically and environmentally. Read on to learn more. 

Costco, one of the biggest and most popular warehouse stores in the world, is known for its great deals and low prices. However, as a Costco shopper, you may be making an expensive mistake without even realizing it. This mistake can lead to overspending, and ultimately, it can affect your budget significantly. So, before you head out to your local Costco, keep reading to learn more about this costly mistake and how to avoid it.

Americans waste more food than any other country

The biggest mistake that many Costco shoppers make is buying things in bulk they don’t need. It’s easy to get carried away when purchasing items in larger quantities, especially when you see the savings. However, most shoppers don’t take into consideration whether they’ll use that item. If you end up throwing away unused or expired bulk items, the savings you thought you were getting will end up being a waste of money.

Every year, U.S. consumers waste a staggering amount of food — equal to one-third of all purchased food! This means that each person throws away an average of 1,250 calories per day, or $1,500 worth of groceries for a four-person household each year. And that’s not even counting recent food price inflation.

Sadly, it’s not just the food that goes to waste. According to the USDA, all the resources that went into producing, processing, transporting, storing, and preparing that food — including land, labor, water, chemicals, and energy — are wasted too.

Be careful when buying in bulk

Many Americans buy more food than they need or make unrealistic assessments about how much food they require. This impulsiveness leads to the discarding of nearly 40 million tons of food every year, amounting to 30%-40% of the entire U.S. food supply. Food in the U.S. is more abundant and affordable compared to other countries.

One of the most popular destinations for shopping is Costco. Shoppers can find a wide variety of high-quality items in bulk at competitive prices. Costco is also lauded for its Kirkland Signature house brand.

But here’s the catch: Since we have so much food to choose from, we often buy more than we actually need, which contributes to massive food waste. While buying in bulk can lead to a lower price per unit, the savings only work if you actually consume all of what you buy. You may end up wasting money at Costco by purchasing items that you just toss out before you have a chance to finish them.

What should you do?

It is important to understand the economic and environmental impacts of food waste. It makes up 11% of the world’s emissions and occupies almost 25% of landfill space nationwide. Being aware of the costs can help us be more mindful of our choices and make sure we only buy what we can use. Make a list of what you need by pre-planning your meals. Find recipes to use leftover food and work to improve how you handle and store food to reduce waste.

Avoid impulse buys at Costco, especially of perishable bulk items that have a short shelf life. Costco shoppers can go over budget when they get excited about trying new products that they don’t need and won’t finish. Costco is known for its sample stations and new product displays, which can sometimes lead to impulse buying. While trying new things is always good, it’s important to stick to your budget when doing so. You can always come back and purchase the product at a later time if you realize that you do, in fact, want it and will be able to finish it, reducing waste.

Shopping at Costco can be a great way to save money, but it’s important not to fall into the trap of buying more than you need. Always compare prices and don’t give in to the temptation to buy new products you don’t need. Most importantly, understand the impact that food waste has on both your personal finances and the environment.

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.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

Buying a used car? Read on to see how it might save you money on insurance. 

For some people, there’s nothing like the feeling of driving off in a brand-new car. And to be fair, it can be a nice thing to have a new car in pristine condition.

The problem? A new car is likely to cost you. As of March, new car prices were up 6.1% on an annual basis, according to that month’s Consumer Price Index. Used car prices, meanwhile, were down 11.2%.

Generally speaking, buying a used car means having to put less money down on a vehicle purchase and taking on smaller auto loan payments. But these days, you might especially save on the latter by going with a used vehicle. Loan rates are up following a series of interest rate hikes on the part of the Federal Reserve. So the less money you have to borrow to buy a car, the better.

But auto loan payments aside, there’s another good reason to buy a used car over a new one, and it’s that you might save yourself a nice amount of money on auto insurance.

A less expensive car could mean less expensive insurance

One myth you’ll often hear about auto insurance is that it costs more to insure a used car. The logic there is that there are more unknowns with a used car, so your auto insurance company is taking on more risk by writing a policy for one.

But actually, the reason you might pay less for auto insurance with a used car, not more, is that used cars, by nature, are less expensive. When your auto insurance company sets premium rates, it considers how much money it might need to pay out in the event of an accident or damage to your car. And the less your car is worth, the less it might have to pay to fix or replace it.

Remember, part of the reason new cars cost more money than used ones is that they’re loaded with newer parts that are more expensive to procure. So if you’re willing to drive a used car, you might save yourself a lot of money all in.

How to decide which car to buy

There are different factors that should go into your car-buying decision, such as how much space you need and how important it is to get good gas mileage. You should also consider your budget and how much you actually expect to use your car.

If you don’t tend to do a lot of driving, then it’s easier to make the argument for a used car — because why pay up for a vehicle that might only leave your garage once or twice a week? Similarly, if you’re not sure whether you want a larger vehicle or a smaller one, and so you’re taking a chance on the model you get, you might as well buy a used car, drive it for a year, and see how it works for you.

It’s also a good idea to buy a used car if you’re purchasing your first vehicle and aren’t really sure which features are most important to you. Plus, paying for a car can take some getting used to. So if you’re able to keep your costs down as you adjust to that expense, that’s a good thing.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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 

It’s important to have money in the bank for pet care bills even if you have pet insurance. Read on to see why. 

There are certain things you need to do to prepare to adopt a pet. First, you have to do some research to see what their care entails and make sure you’re up to the task. If you rent a home, you also need to make sure your landlord will allow you to have a pet. And you’ll need to stock up on the right supplies and gear.

But those aren’t the only moves to make when you’re looking to adopt a pet. You should also make a point to allocate money in your savings for pet care. If you don’t, you might end up in a really bad situation if your pet needs emergency care.

A chance you can’t afford to take

Even if you’re adopting a pet who’s young and healthy, you never know when a medical issue might arise. Plus, your pet could get hurt unexpectedly, leading to expensive medical care.

That’s why it’s so important to have money in savings for pet care. In fact, you may want to open a separate savings account and designate it as your pet emergency fund. If you don’t go this route, you might end up with a whopping credit card balance that costs you lots of money in interest if you’re forced to pay for emergency pet care out of the blue.

Now you may be thinking, “I’ll just buy pet insurance, and that way, I won’t have to worry about saving for pet care.” But while it’s a good idea to put a pet insurance policy in place, you might still need money in the bank regardless.

First, you never know when your pet insurance company might reject a claim of yours, whether due to a pre-existing condition or another reason. Also, while pet insurance will often cover much of the tab in situations when a pet needs medical care or surgery, it won’t necessarily cover your costs at 100%. So if you have a dog who needs a $5,0000 surgery, your pet insurance plan might have a $4,500 cap for that treatment, leaving you to come up with the remaining $500 on your own.

You should also know that many pet insurance companies require you to shell out the money for your pet’s care upfront, submit a claim, and wait to be reimbursed. So, let’s say you have to charge $2,000 on a credit card to cover treatment for your pet. If you don’t have the savings to cover that bill immediately, you might end up accruing interest on it if your pet insurance company takes two months to approve your claim and issue you a reimbursement check.

Don’t leave yourself without savings

Adopting a pet is a huge undertaking, so it’s important to be prepared. And that includes having money in savings for pet care or any sort of pet-related emergency that might arise.

A surprising 70% of pet owners have not saved anything for a future pet health crisis, according to recent data from Lemonade. But those pet owners risk racking up debt or having to make very hard decisions with regard to their pets’ care. Do yourself a favor and save for pet care so you never have to land in a similar boat.

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 

Are you struggling to build a solid emergency fund? If so, you’re not alone. Find out what one writer does to prioritize her emergency fund savings goals. 

Saving money is a wise move if you’re working to improve your personal finances. But for many people, it’s challenging to prioritize saving money. Even if they have good intentions, they may fail to reach their goals because they spend all their money before they get the chance to save it. Are you finding it difficult to reach your savings goals? If so, you’re not alone in your struggles. Here’s what I do to ensure I continue to build my emergency fund.

The importance of an emergency fund

Why do you need to prioritize saving? Unexpected life events can quickly alter your situation even when life is going well and you make a decent income. A surprise home repair, trip to the vet, or medical bill can impact your personal finances and cause additional stress.

But an emergency fund can save the day. An emergency fund is a collection of extra money saved for emergency expenses. When an unforeseen life event happens, you’ll have the cash you need to continue to pay your living expenses. Having the option to use money that you’ve saved can help you avoid accumulating expensive credit card debt.

How much cash should you keep in your emergency fund? No set amount will work for everyone. Many experts suggest saving at least three to six months of living expenses, but it doesn’t hurt to keep building beyond that. You can use an emergency fund calculator to calculate your monthly costs and set a realistic savings goal that works for your situation.

Treat your savings like a necessary expense

I feel most confident about my finances when I have extra money saved. I want to feel comfortable knowing I’m well-prepared for life’s twists and turns. But I wasn’t always the best saver. Eventually, I realized that I needed to change my thinking and routine. Shifting my thinking helped me prioritize saving so I could stay on top of my goals.

I changed my thinking by treating my savings contributions like a regular bill. To me, it’s a necessary expense, not an optional expense. Similar to my mortgage, electric bill, car insurance, and water bill, it’s a must-pay expense. I include my savings contributions when calculating my monthly expenses and figuring out my budget, so I know I can afford it.

As I’ve gone through different chapters of my life, I’ve experienced various small and big emergencies that have impacted my finances. Having an emergency fund has made my life easier and has helped me manage my stress when the unexpected happens.

If you’re struggling to reach your savings goals, you may want to give this strategy a try. Automation has also helped me minimize forgetfulness. You can set up automated transfers so money is regularly transferred from your checking account to your savings account. Keep your extra cash in a high-yield savings account so you earn interest and boost your balance.

Plan for the unexpected

Don’t neglect to save. Even when life is going well, planning for the unexpected is beneficial. Setting aside extra money each month can help you prepare for the future. Even if you can only afford to save $50 or $100 a month, it’ll make a difference. A solid savings account balance can give you greater confidence, as you’ll know you have extra money available when needed.

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 

Failing to repay a 401(k) loan could have big consequences. Read on to learn more. 

If you have a need for money, there are different options you could look at. You could apply for a personal loan or tap the equity you have in your home. But if you have money sitting in a retirement plan, you may decide you’d rather borrow against your own savings.

While you generally cannot borrow money from an IRA account, if you have a 401(k), your plan might allow you to take out a loan. And you might prefer to go that route because that way, you’re paying yourself back rather than repaying a lender.

As of the fourth quarter of 2022, an estimated 16.7% of 401(k) plan participants had an outstanding loan, according to Fidelity. So if you decide to borrow from your 401(k), you’ll be in good company. But that’s not necessarily the right move, because if you don’t repay your 401(k) loan, the consequences could be quite unfavorable.

You could end up with a penalty on your hands

If you fail to repay your 401(k) loan, it will be treated as a distribution from your plan. And the consequences there will depend on your age.

If you’re not yet 59 1/2, you’ll face an early withdrawal penalty equal to 10% of the sum you borrowed. And regardless of your age, if you have a traditional 401(k) plan, not a Roth, you’ll be taxed on the money you borrowed since it will be considered a distribution.

That tax isn’t a penalty. That’s just how traditional 401(k)s work — withdrawals are subject to taxes because you get a tax break on your contributions. But either way, not repaying a 401(k) loan could end up being costly, so it’s a situation best avoided.

Also keep in mind that if you don’t repay a 401(k) loan, you’ll have that much less money left in your account for retirement itself. And at that stage of life, you’re apt to need that money the most.

There may be a better way to borrow money

It’s easy to see why taking out a 401(k) loan can be tempting. After all, if you have money that’s actually yours, why not do that instead of going through the process of applying for a loan elsewhere?

But borrowing against your 401(k) is risky because there’s a chance you might not be able to pay your loan back as expected. So it pays to consider other borrowing options that can be reasonably affordable, like taking out a personal loan or a home equity loan.

Granted, there can be consequences for not repaying these types of loans, too. If you fall behind on either, you risk damaging your credit score quite a bit. And in a more extreme scenario, not repaying a home equity loan could result in losing your home.

One major difference, though, is that if you sign one of these loans, you’ll have a preset repayment schedule to follow. With a 401(k) loan, the same thing will happen. But if you end up leaving your job (voluntarily or otherwise), your repayment window might be whittled down to just a few months, depending on the rules of your plan. And that specifically makes a 401(k) loan a more precarious borrowing option.

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