Money Management

Costco has a very generous refund policy. Read on to learn more about getting your money back on a regrettable purchase. 

The reasons I enjoy shopping at Costco are multifold. For one thing, buying groceries at Costco often results in a lower credit card tab than shopping at regular supermarkets. That’s important when you’re trying to build up your savings account. Also, Costco is known for its great customer service. And that’s something I’ve experienced firsthand.

Costco happens to have an extremely generous return policy. If you buy something that’s defective, you can rest assured you’ll be given your money back. And if you buy food items that end up spoiling ahead of their printed expiration date, you can return them and get your money back.

Now, there are some rules you need to follow when making Costco returns. With electronics, for example, you must make your return within 90 days to get your refund. But as long as you stick to the rules, you don’t even have to make up an excuse for asking for your money back. In fact, here are three situations where I was able to get a Costco refund simply for not liking the product in question.

1. When a laptop keyboard wasn’t comfortable

As someone whose job is to write content, it’s important to me to have a laptop that’s easy to use. So when I picked out a new laptop at Costco years back and brought it home, I was bummed to discover that I just plain didn’t love the feel of the keyboard. And I felt that would slow me down in the course of my work.

When I took the item back to Costco and was asked if anything was wrong with it, I explained that I didn’t love the feel of the keyboard keys. The customer service representative simply said “okay” and processed my return.

2. When the towels I bought lacked the fluff factor

I’m not someone who needs the most luxurious towels after a shower. But a while back, I bought towels from Costco I didn’t end up liking the feel of. I got all of my money back — even though I’d already used one of the towels from the two-pack I’d purchased.

3. When I didn’t like the feel of a workout shirt

I purchased a shirt from Costco that I thought would be perfect for running in. Only the material wound up being heavier than I thought it would be. Costco took it back without even asking about fit. And I was fine with that.

You have options when you shop at Costco

There are certain Costco products you can’t return as easily as others. Cigarettes and alcohol, for example, generally cannot be returned to the store after you’ve walked out with them.

But you may find it helpful to know that you can change your mind about a Costco purchase and still get a full refund for it. And you might also appreciate that you don’t have to make up an excuse as to why you’re taking it back.

Best of all, you don’t even necessarily need a receipt to get a Costco refund. When you go to customer service, they can look up the item using your membership number and refund you accordingly. It really doesn’t get much easier than that.

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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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Investors are taking FTX celebrity ambassadors to court for promoting unregistered securities. Find out why Taylor Swift turned down the FTX deal. 

The collapse of FTX was devastating for many crypto investors, both in the U.S. and the rest of the world. It isn’t yet clear whether people will be able to get any of their money back, nor how long it will take. A lot depends on what happens in the bankruptcy courts and how much money the new leadership is able to recover.

Some investors are pursuing a different route. They are taking out lawsuits against celebrities who promoted FTX and other crypto firms. For example, the Moskowitz Law Firm is seeking $5 billion in action against personalities such as Tom Brady, Kevin O’Leary, Shaquille O’Neal, and Larry David, who promoted FTX. “We’re going after the influencers, we’re going after the brand ambassadors, and then of course, we’ll go after any money that’s left,” said Adam Moskowitz on The Scoop podcast.

He also said that one of the few celebs who questioned and then turned down an FTX deal was Taylor Swift. Why? She was concerned that FTX was selling unregistered securities.

Are cryptocurrencies unregistered securities?

The issue of whether or not cryptocurrencies could be securities has dogged the industry for years. It matters because there are strict rules about how securities are managed, including how they can be traded and how they share information. If a product is a security, it has to be registered with the Securities and Exchange Commission (SEC) and it can only be traded by licensed stockbrokers. Many top crypto exchanges are not licensed security brokers.

Right now, many cryptocurrencies are treated as commodities, meaning they come under the remit of the Commodity Futures Trading Commission (CFTC). But the SEC argues that a lot of crypto products are, in fact, unregistered securities. The lawyers who want to sue FTX brand ambassadors say the same.

The SEC uses something called the Howey test, which states that if people invest money into a common enterprise with a reasonable expectation of profits to be derived from the efforts of others, it qualifies as an “investment contract.” Investment contracts are a type of security, and there’s still debate about whether many cryptocurrencies check all four boxes.

As if all that wasn’t enough to digest, another legal body — the New York Attorney General (NYAG) — weighed in earlier this year. It filed a case against KuCoin for trading unregistered securities. In its suit, it asserts that the second-biggest crypto, Ethereum (ETH), is a security. Meanwhile, the crypto industry complains about a lack of regulatory clarity. In the absence of clearer rules from Washington, a lot hinges on how cases — such as the SEC’s ongoing action against Ripple (XRP) — play out in court.

What investors can learn from Taylor Swift’s question

Cryptocurrency is a relatively new and unregulated industry. If you’re considering buying crypto, Taylor Swift’s question is an important one. If authorities decide that top cryptocurrencies like Ethereum are actually securities, those projects would have to follow the SEC rules.

In the long term, increased regulation — whatever shape that takes — could be beneficial for the crypto industry. It might build much needed trust and give more transparency around what crypto platforms are doing with your cash. It may reduce instances of market manipulation and insider trading. But could also suffocate projects in their infancy and make it hard for retail investors to buy and sell certain coins and tokens.

As an investor, it’s important to understand the debate and pay attention to the various court cases. For example, the Moskowitz case suggests investors might claw back money they lost in the FTX collapse if cryptos are securities. However, that ruling could also have a significant impact on prices and change the way the U.S. crypto industry works.

Bottom line

One of the many risks involved in crypto investing is the limited levels of investor protection that come with a less-than-clear regulatory environment. Others are the high volatility, uncertainty around how the technology might develop, and the potential for market manipulation. If you hold crypto, be clear on those risks. Only invest money you can afford to lose and ensure that crypto only makes up a small portion of your portfolio.

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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.Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.

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Getting a tax refund? Read on to see why saving it is the best move. 

At this point, many tax-filers have already received a refund after submitting a 2022 tax return. If you filed your taxes by the deadline and haven’t seen your refund hit your bank account yet, it may be arriving any day now.

As of mid-March, the average tax refund amount issued this season was $2,933. That figure will likely be updated as the IRS continues to process 2022 tax returns.

Now, you may be in line for a larger tax refund than that or a smaller one. But either way, it’s a good idea to consider putting your refund directly into your savings account. Here’s why.

1. If you don’t save your tax refund, you might waste it

When you get a tax refund, it can be very tempting to spend that money on something fun, whether it’s electronics, a vacation, or a series of concerts. But if you don’t save that money and spend it on a whim, you might end up regretting your decision to spend it, and that’s not what you want.

Of course, if there’s a specific item you’ve been saving to buy for quite some time, then that’s a different story. But blowing your refund could mean kicking yourself after the fact.

2. We don’t know if a recession will hit later this year

Last year, there were numerous rumblings about a 2023 recession. So far, the economy seems fairly stable, but we don’t know if that will change during the latter part of the year. So if you want to protect yourself in the face of a potential economic downturn, then it’s a good idea to bank your tax refund so it’s there for you if you need it.

In fact, as a general rule, it’s a good idea to have an emergency fund at the ready with enough cash to cover at least three full months of essential living expenses. So if you’re not at that point, then it definitely pays to save your tax refund — even if you’re not particularly worried about a recession striking soon.

3. Your personal financial situation might take a turn for the worse

Maybe the U.S. economy will hold steady and a recession won’t hit this year. But that doesn’t mean you won’t experience your own personal financial crisis.

You never know if you’ll get downsized out of a job. Or maybe your work will be there for you, but you’ll need to take a leave of absence to deal with an injury.

Perhaps you’re able to continue working, but your home ends up needing extensive repairs this summer that your current savings can’t handle. If you put your refund into the bank to pad your savings, it could spell the difference between being able to get through a tough financial situation or potentially landing in debt because of one.

A tax refund isn’t free money. Rather, it’s money you’re entitled to. So your best bet is to treat it as you would your wages and save as much of it as you can, even if that means having to wait to indulge in some of the things you’d like.

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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’re interested in becoming an extreme couponer, knowing where to look for deals and coupons is key. Learn more about these and other techniques. 

If you are hoping to slash your spending on groceries and other essentials, then extreme couponing is one technique you might try.

Extreme couponing can allow you to get many items for free or close to it, meaning you give your credit cards much less of a workout when it comes to buying the boring basics you need.

If you’re hoping to pad your bank account by becoming an extreme couponer, you’ll need to know how to get started though. As a former extreme couponer myself, I know it’s more than just clipping a coupon. In fact, here are five steps you’ll want to take to maximize your savings.

1. Find a good site that lists deals (or save sales flyers)

Extreme couponing is all about using coupons at strategic times to get items for almost no money out of pocket. In order to do that, though, you need to know when you can combine store and manufacturer coupons with sales in order to get the best deal.

For example, you may want to use a coupon for toothpaste at a time when the store has it on sale and is also running a promotion where you get a $5 gift card if you buy a certain number of products made by that manufacturer.

In order to be strategic about when you buy, you would need to know when that sale was. You can keep sales flyers and comb through them to do that or use a website like Slickdeals where users come together to share knowledge about what bargains are available at various locations in any given week.

2. Assemble a binder or folder to keep your coupons

If you’re going to use coupons strategically, you’ll need to have a lot of them around. And you may need to keep coupons for weeks until the right time comes to use them. This means you will need a system to keep them organized.

There are small accordion folders that some people use to keep their coupons, but if you are really going to be serious about extreme couponing, you’ll likely want a binder with cardholders so you can keep more coupons, organize them by category, and flip through more easily to find them.

3. Decide where you’ll get your coupons

Extreme couponing also requires you to collect a lot of coupons — say, for example, five or six toothpaste coupons so you can get that aforementioned toothpaste deal multiple times so you can hit the target to get your gift card without having to spend much out of pocket.

This means you’ll need a good source or coupons. You can buy several copies of the Sunday paper where the coupon inserts are, or ask friends or family to save inserts for you. You can also buy coupons online from various websites that sell them in batches. Look into both options to decide which you’d prefer.

4. Outline your goals

Next, you’ll need to decide what your goals are for extreme couponing. Do you just want to get deals on items your family needs, or is the goal to get as much stuff for free as possible that you can donate or resell at flea markets or garage sales? This will dictate how many stores you go to, how many coupons you need to buy, and what kinds of deals you want to do.

5. Start shopping the sales

Finally, once you have your plan in place, you’re ready to become an extreme couponer. Just remember to be a polite shopper and if you’re going to pay with a huge handful of coupons, warn the people who try to get in line behind 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.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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Dave Ramsey hates personal loans. But here’s one situation in which he recommends using one to get out of a bad situation. 

Dave Ramsey is arguably the most vocal opponent to debt of any kind. He hates credit cards, holds a crucifix to loans, and won’t go near mortgages unless they have a maximum term of 15 years and are financed with a 20% down payment.

Be that as it may, Ramsey has admitted that a personal loan can come in handy for one — and only one — situation.

When does Ramsey recommend a personal loan?

Ramsey would never recommend a personal loan to finance a purchase. But he does recommend leveraging personal loans to get out of a bad situation; namely, when you owe more money on your car than the car is actually worth.

This is called being “underwater” on your loan, and it can put you in a tough spot. For instance, let’s say you own a car that’s worth $10,000, but you have a car loan with an outstanding balance of $13,500. If you were to sell the car for $10,000, you would still owe $3,500. Not exactly the best place to be in, especially if you default on your loan.

In an ideal situation, one in which you have plenty of savings, Ramsey would recommend that you pay the full $13,500 balance, which will put the car’s title in your hand. Assuming then that you can sell the car for $10,000, you would only have used $3,500 of your own savings to get out of the loan. You’d lose a car, but hey — at least you’re not underwater.

But Ramsey knows paying cash isn’t possible for everyone. If you can’t pay $13,500 upfront, Ramsey would recommend covering the difference with an unsecured personal loan.

In this scenario, you would sell the car for $10,000, then take out a personal loan for $3,500. This gives you $13,500 cash to pay off your car loan.

Wait — why would you use a loan to pay off another loan?

Easy: To get a better interest rate.

Many personal loans have lower interest rates than car loans. This might make your debt repayments cheaper and could help you pay the loan faster.

Is Ramsey right?

His advice is sensible, but I can think of two scenarios in which you might want to go your own way.

You need the car. It doesn’t make sense to sell if you’re using the car frequently. Unless you’re okay buying a rust bucket to replace it — which is problematic if you want something reliable — selling could make your life more difficult.You have an asset to put up as collateral. Ramsey recommends an unsecured personal loan. But if you have collateral — like a certificate of deposit (CD) — you could get a better interest rate on a secured loan.

Of course, if you’re on a mission to become debt-free, then you might want to follow Ramsey’s advice, no matter what it takes. In that situation, I would make sure I borrow enough cash on the personal loan to buy myself a reliable used car. For instance, using the example above, I might borrow $6,500 instead of $3,500, which would give me at least $3,000 to find a used car.

Whatever personal loan you land on, be sure you’re getting a competitively low interest rate. Check out some of the best lenders for low interest loans and see if your credit score is high enough for a low rate.

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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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