Money Management

Looking to take a vacation? Read on to see why you may want to turn to Costco. 

We all need a good vacation once in a while. But seeing as how the cost of travel is way up these days, and given the fact that flights tend to be limited and overbooked, it may be in your best interest to get some help planning your trip.

You could go the travel agent route in this regard. But if you’re a Costco member, there’s another option worth considering.

It pays to book travel through Costco

Costco Travel is a service that’s available to Costco members only. With Costco Travel, you can book a trip to a wide range of destinations, from Europe to the Caribbean to theme parks.

One of the primary benefits of booking travel through Costco is getting access to exclusive deals and packages that may result in a much lower credit card tab than what a travel agent can find for you. Plus, when you book travel through Costco, you get access to dedicated travel specialists who can help you find the right trip and finalize its details. You’ll also get help navigating issues that might arise.

Let’s say, for example, that you need to make changes to an itinerary you’ve booked. You can simply call Costco Travel, speak to an agent, and tweak your plans accordingly. You may also have options if you need to cancel your trip completely (though depending on when you’re canceling, you may not be entitled to a full refund).

It especially pays to consider booking your next trip through Costco if you have an executive membership. The reason? This membership tier gives you 2% cash back on all Costco purchases, and that extends to any travel you book. So you might end up getting a nice amount of money back to spend at Costco upon returning from your travels.

And speaking of money back at Costco, even if you don’t have an executive membership, you might still be eligible for a Costco cash card as part of your vacation package. Right now, for example, Costco is offering a host of itineraries on Norwegian Cruise Lines, and all of its packages come with a Costco cash card as an added perk. If you shop at Costco regularly, that’s like getting free money.

An option worth exploring

Using a travel agent to plan your next trip could end up being a rewarding experience. And if you have a relationship with a travel agent you’ve worked with before, you may want to stick with them, especially if you’ve always been happy with the vacations they’ve helped you book.

But if you’re torn between using a travel agent versus booking a trip through Costco, it pays to at least see what packages are available through the latter. If there’s a deal that catches your eye, you may find that you’re able to spend less on your trip by booking through Costco.

Also remember that when you book with Costco, you get access to a network of travel specialists who can help you troubleshoot issues as they arise. If your travel agent happens to have a family emergency the week of your vacation, they may not be available to help you in a pinch. So that, too, is a good reason to give Costco Travel a chance.

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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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You can already earn some great rewards on large purchases with the right card. But this low-effort trick can easily double your return. 

Credit cards are already one of the most popular ways to pay for everyday purchases. But when it comes to the big buys, there’s even more reasons to pull out your trusty plastic payment card.

In particular, rewards credit cards can easily turn a big purchase into big rewards. And this is especially true when you pair a major purchase with a new card — and its sign-up bonus.

Sign-up bonus basics

Many credit cards offer sign-up bonuses as a way to draw in new customers. Basically, new cardholders can earn a lump-sum bonus of extra cash back, points, or miles, by meeting the sign-up bonus criteria.

In most cases, you’ll need to meet a certain spending requirement within a few months of opening your account to earn the bonus. For example, a cash back card may offer a $200 sign-up bonus if you spend $2,000 in the first 90 days.

While these bonuses can be quite valuable for cash back cards, it’s arguably travel rewards cards that pack the most profit potential. Picking the right card, and redeeming your points at the right time, could mean earning thousands of dollars worth of free travel.

Unfortunately, the cards with the best bonuses also tend to have the highest spending requirements. Some of the top travel rewards cards have bonuses with spending requirements upwards of $5,000, and some requirements can even reach into the five figures.

That’s why the very best time to get a new card — and new sign-up bonus — is when you already have a large purchase on the horizon. Maybe you need new furniture, are picking up a used car, or even just paying your quarterly taxes. Whatever the case, if you have a big bill coming up, it can be well worth the effort to make sure you have a fresh sign-up bonus to earn, too.

Double the cards, double the bonuses

Depending on the size of your purchase — and the size of your spending requirement — you may have the option to double your rewards. How? By getting two new credit cards and splitting your purchase.

Consider this: You’re about to move. This means a few grand in moving costs, as well as another few thousands dollars spent on furniture. Let’s say you’re looking at $7,000, all told.

If you can find two travel rewards cards that each have a spending requirement in the $3,000 to $4,000 range, you could easily split your purchases to earn not one, but two bonuses without much extra effort. Then, once you’re settled into your new location, you can take a free vacation to de-stress!

Watch out for issuer restrictions

As with anything, there are a few caveats to this trick. For one thing, opening new credit cards will impact your credit score. Specifically, your credit score will likely dip a bit from multiple hard credit pulls, and your average account age will also take a dip (especially if you don’t have many credit accounts).

On the plus side, paying your cards on time and keeping your balances low can help your credit score, and having more accounts in good standing can also boost your score. So this should balance out after a short while. However, if your big move also involves getting a mortgage loan, you’ll have to consider how opening two new credit cards will impact your approval (and vice versa).

Another — perhaps more important, especially if you’re not getting a loan for anything — thing to keep in mind is that many issuers have limitations about how often you can apply for new cards, as well as how often you can earn bonuses on those cards.

Chase’s 5/24 Rule, for instance, says you’ll be rejected for a new Chase card if you’ve opened five or more new credit accounts in the last 24 months. And most issuers won’t let you earn a sign-up bonus for a particular card family more than once every 24 to 48 months.

Although these downsides are worth consideration, they can be well worth it. And for people with robust credit histories — and no major loans in the near future — the two-bonus strategy can be an excellent way to boost the rewards earned on big 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.The Motley Fool has a disclosure policy.

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Cat owners spend hundreds to thousands of dollars per year on their pets. Here’s a closer look at where all that money goes. 

Spring is a popular time to add a new pet to the household, and for those interested in welcoming a cat or kitten, I have good news. You’ll probably save a lot of money compared to getting a dog. But that doesn’t mean your furry friend is going to come cheap.

Here’s a look at what one recent Rover survey had to say about the average cost of cat ownership, along with some steps you can take to keep your costs down.

The first year is by far the most expensive

Bringing home a new cat means you also have to cover a lot of additional costs for them, including:

Vet visitsSpaying or neuteringCollarsBedFoodFood bowlsLitterLitter boxCarrierScratching postToysGrooming suppliesMicrochipping

Then, there are the adoption fees itself. This varies depending on several factors, including the breed, age, and health of the cat as well as where you get it. Adopting a cat from an animal shelter is usually your most affordable option. You could easily spend thousands of dollars if you want a purebred cat from a breeder.

All told, Rover estimates new cat owners could spend anywhere from $755 to $3,020 in their first year. The range is so wide because you have a lot of choice in how much you spend on your pet. Also, vet costs can vary significantly from one city to another, and that can affect how much you pay for checkups, vaccinations, and routine surgeries.

If you’re trying to keep costs down, avoid bells and whistles, like automatic cat feeders or memory foam beds. Focus on just the essentials at first. You can always upgrade down the road if that’s important to you.

Most cat owners will still spend hundreds of dollars in 2023

Ongoing annual expenses for cats range from about $325 to $1,600 in 2023. This includes your pet’s food, litter, toys, and an annual vet checkup.

Again, there’s quite a range here and a lot of it comes down to your food and litter choices. This is a personal decision you’ll have to make based on your budget and the food or litter’s ingredients. If you’re not sure what’s really worth upgrading for and what’s mostly just marketing hype, you could always ask your vet for their opinion.

Once you’ve settled on a food and litter you’re happy with, keep an eye out for coupons or sales and stock up when you find them. Don’t forget to check for coupons online as well.

How much you spend on your cat is ultimately up to you

So far, we’ve talked about essential costs, but there are a lot of extras you can splurge on too if you want. Things like regular grooming appointments or litter disposal systems are popular with some people, while others see them as unnecessary.

Then, you have the things that are absolutely necessary but hard to budget for, like emergency vet bills. You never know when your cat will get sick or injured, and if they do, you often have no choice but to take them in for treatment and pay whatever the vet charges.

More and more people are turning to pet insurance in an effort to combat this. Pet insurance helps pay for some vet bills, but it also has costs of its own, including premiums, deductibles, and copays. Still, many find this easier to budget for than the vet bills themselves.

Those seeking an affordable rate on pet insurance should start by comparing quotes from several top providers. Going with an accident-only plan can also help keep costs low, though pet owners will be on their own if their pet gets sick.

Ultimately, it’s up to you to decide which cat expenses fit into your budget. And if you don’t think you have enough money to buy all the things your cat needs, you may be better off waiting to add a new pet to your household.

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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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Thinking of getting a Costco executive membership? Read on to see why you really have nothing to lose. 

If you shop at Costco fairly often, you may be tempted to upgrade your membership from a basic one to an executive one. The cost of an executive membership is double that of a basic membership — $120 a year versus $60. But in exchange, you’ll get the opportunity to score 2% back on your Costco purchases, including those made online.

All told, you’ll need to spend more than $3,000 in a single year to make the upgrade to an executive membership worth it financially. That’s because it’ll take $3,000 in spending to get your $60 upgrade fee back. And only once your spending exceeds that point will you come out ahead in the form of cash back.

If your Costco spending hasn’t been so high in the past, you may be hesitant to pay for the upgrade. But here’s why you should.

It’s a no-risk proposition

You may be leery about upgrading your Costco membership because you don’t want to spend an extra $60 to only get, say, $20 back. But one thing you should know is that if the executive membership doesn’t end up working out for you financially, Costco will make sure you’re not out any money.

Costco will allow you to cancel your executive membership and downgrade to a basic one when you want to. And it will also pay you the difference if you don’t manage to accrue enough cash back via your executive membership rewards to make up for that $60 investment.

So, let’s say you upgrade your Costco membership to an executive one at the start of the year, and then throughout the year, you only spend enough at Costco to accumulate $40 in executive membership rewards. If, at the end of the year, you want to downgrade your membership to a basic one, Costco will allow you to do that, and it will also pay you the $20 you didn’t make back in rewards. So all told, you won’t be out any money.

An option worth pursuing

When you buy an executive membership, your credit card will be charged the extra $60 at the time of your upgrade. So you’ll be shelling out that cash upfront. But if you don’t earn at least $60 back in rewards, you’ll get paid the difference. As such, it pays to upgrade your membership and see what happens.

You might end up spending enough money to accumulate more than $60 in rewards. This especially holds true if you end up booking travel through Costco, since that can be a large expense that counts toward your executive membership rewards. Similarly, if you buy furniture or appliances at Costco, those larger purchases, too, will count.

But you can rest assured that Costco will make it so that you at least break even between your annual executive membership rewards certificate and whatever refund it issues you. When you think about it that way, there’s really no reason not to give an executive membership a try.

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.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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