Money Management

Both Trader Joe’s and Costco’s have very high satisfaction rates among consumers. Here’s why these stores are so beloved. 

Deciding where to shop is a very personal choice, as you’ll need to make the decision about which stores deserve some of your hard-earned cash. Before you break out the credit cards, it can be worth looking at where your fellow Americans like to shop so you can get some idea of which stores go the extra distance to make customers happy.

Winsight Grocery Business conducted a consumer satisfaction survey and, for 2023, the data is clear. There are two stores that are absolutely fan favorites.

Here’s what they are, as well as some insight into why so many Americans are happy to tap into their bank accounts to buy products from them.

1. Trader Joe’s

According to Winsight’s American Customer Satisfaction Survey, Trader Joe’s had the highest rating of any grocery store when it comes to consumer satisfaction. Trader Joe’s had an 84% satisfaction rating in 2023, down from 85% in 2022. This was well above the average 76% rating for all supermarkets.

It’s easy to see why so many people love Trader Joe’s. The store offers a variety of healthy foods on a budget, including many house-brand offerings you can’t find elsewhere. In fact, almost every aisle of Trader Joe’s has specialty items that are unique to the store, from its Pub Cheese and Unexpected Cheddar to its Blondies Mix in the baking aisle to the Pizza Parlano and Pastry Puffs in its frozen food section.

Trader Joe’s also offers food samples, and most of its employees are friendly, helpful, and willing to go the extra mile to ensure customer satisfaction.

2. Costco

Costco comes a very close second to Trader Joe’s in terms of consumer preferences. The store received an 82% satisfaction rating in 2023, up from 81% in 2022. It was also well above average, and it beat out similar warehouse clubs such as Sam’s and BJ’s, both of which had a satisfaction rating of 79%.

Costco also has plenty going for it, which explains why consumers love the store so much. Unlike Trader Joe’s, which has a very limited number of locations, Costco stores are widespread throughout the U.S. so most people can find one that’s close to them. And while you do have to pay for a membership, you get a lot for the money including not just grocery and household items but even the chance to buy discounted automobiles or score low-priced vacation packages.

Costco, like Trader Joe’s, also offers unique and delicious house-brand products through its Kirkland brand. Like Trader Joe’s, Costco also makes samples available. And it has an amazing return policy, with the ability to return almost anything you buy at any time if it doesn’t meet your needs. You get all this, and you also get to enjoy its famous $1.50 hot dog and soda combo deal when you shop.

Both of these stores are clearly doing something right, since consumers are so satisfied with shopping there. And if you want to benefit from low prices, great customer service, and unique product offerings, it may be worth checking out the Costco and Trader Joe’s stores in your local area to see if they can earn your business.

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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Dave Ramsey doesn’t want you to use balance transfers or debt consolidation to help you repay debt. Read on to learn why they’re worth considering anyway. 

Whether you have credit card debt or other types of high-interest consumer debt, paying off what you owe may be a priority. After all, if you can get rid of your expensive debt, you can stop wasting money on interest and reclaim the funds spent on monthly payments for other things.

There are lots of different techniques to repay debt, including cutting spending and increasing income to make extra payments — both of which are recommended by finance expert Dave Ramsey. But, there are also two great approaches to debt payoff that Ramsey rejects — even though they can be great tools.

Here are the two options Ramsey says to steer clear of, along with some insight into why you may want to use those techniques anyway despite what Ramsey claims.

Dave Ramsey says not to use these debt payoff tools

Debt consolidation and credit card balance transfers are the two debt payoff methods that Dave Ramsey recommends avoiding.

Debt consolidation occurs when you repay multiple existing loans with one new one — usually, a new personal loan at a lower rate than the debts you are paying off with it. Instead of having multiple monthly payments to different creditors, you’re ideally left with just one payment to make when you consolidate debt. The lower rate on your new loan also means more of your money goes to principal, not interest. The result is that your debt consolidation loan can be cheaper over time and each month.

Balance transfers are similar, but you use a credit card with a special introductory 0% rate on transferred balances and you transfer other card balances to it. Although you pay an upfront fee with most balance transfer cards (usually around 3%), the 0% rate means your entire payment goes to principal each month rather than to covering high credit card interest charges.

Reducing your interest rate and making payments cheaper sounds great, but Ramsey suggests steering clear of both techniques despite their obvious benefits because he believes they will “keep you in debt longer” either by extending your payoff time or prompting you to spend the money that these techniques save you on other things.

Here’s why Ramsey is wrong about these debt payoff strategies

Ramsey is wrong that you should avoid debt consolidation or balance transfers because both of these methods can really help you save — as long as you aren’t irresponsible about using them.

Debt consolidation and balance transfers are tools and they can be misused. If you consolidate your debt to a much longer payoff time than your current loans or if you transfer a balance and then just charge up your cards again with the credit you’ve freed up, obviously you’ll end up in a worse situation.

But if you are committed to debt payoff and living within your means, you can avoid doing those things. Instead, you can take advantage of your reduced interest rate to pay as much on your debt as possible to reduce your principal balance quickly and become debt free.

Ultimately, as long as you trust yourself not to make a bad financial choice after consolidating your debt or transferring your balance, you should go ahead and implement these methods of becoming debt free ASAP.

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Spring has sprung, and Dave Ramsey notes that this season often comes with some added costs. Read on to learn about some expenses to plan for and tips on how to do it. 

The spring season is upon us, bringing warmer weather and an upcoming end to a school year. This time of year is an exciting one, as flowers start to bloom and summer seems like it is just around the corner.

It’s also an expensive one, though. In fact, finance expert Dave Ramsey has warned there are several major expenses this season you should be prepared for. Here are some of the costs you should prepare your bank account for, along with some tips on how to make sure you’re ready for spring (and other seasonal) expenses.

Spring expenses Ramsey says to prepare for

Ramsey has a long list of spring expenses that many people are likely to face, including the following:

Mother’s Day gifts and celebrationsTax paymentsExpenses for the end of the school year if you have childrenLandscaping and gardening as the weather grows warmerGifts for graduations as the school year comes to an endGifts for weddings as the wedding season beginsWarm-weather activities that tend to start in the springSummer sports and summer camps for kidsOrganizational gear if you’re doing some spring cleaning

While likely not all of these seasonal items are on your list, chances are good that at least some will be, and it’s important to be ready for the added costs.

How to make sure you’re financially ready for every season

These are just some of the many irregular costs that could hit you this time of year. And it’s not just springtime that brings expenses, either.

Every season has its own unique events that could lead to big credit card bills, whether it’s back-to-school shopping for the start of the year or holiday shopping and snowplowing during the winter months, or vacations and landscaping costs during the summer season.

The reality is, you need to be ready to adjust your budget and prepare for the seasonal and irregular expenses that you’ll face all year long — usually by thinking ahead and saving for them throughout the year. For example, if you know you’re going to have a $1,000 tax bill come April, you’ll want to save for that during the year rather than scrambling to come up with it as tax season approaches. Likewise, if you know your spouse’s birthday is in October, you may want to save a little bit over time for that extra special gift you’re hoping to buy.

The best way to make sure you’re prepared for all these costs is to go over your last 12 months of credit card statements and take a look at important dates on a calendar.

Make a list of the different expenditures you’ll have throughout each season, figure out how much you need to cover them, and set aside a fund for bigger expenses that you can’t pay for all at once. You can even contribute to a dedicated savings account for each of these seasonal costs a little bit each month so you’re ready when they arise.

If you don’t want to find yourself surprised by the spring expenses Ramsey has warned you to get ready for, taking these steps can help ensure you’re always ready when these and other irregular costs come your way.

Ramsey himself has recommended both adding a seasonal budget category as well as line items for certain expenses, and following his advice could help ensure you don’t face financial worries as a new time of the year brings new expenses.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Many people dream of owning a home, but aren’t in a good financial position to do so. Read on to see how to assess your own readiness to buy. 

It can be very tiresome to be a renter and watch your rent payments climb over time. If you’re wondering if you’re ready to take on a mortgage loan and become a homeowner instead, you should consider whether you can truly afford it. If any of the following conditions are true for you, I hate to say it, but you should probably wait a bit longer — and work on your finances in the meantime.

1. You live paycheck to paycheck

If I’ve said it once, I’ve said it at least 50 times: Owning a home is expensive. This isn’t to say that renting isn’t also expensive, but when you rent, your costs are different. If you’re currently renting and finding yourself out of money (or nearly out of money) at the end of every month, it’s not a good idea for you to buy a house right now.

While many finance gurus will tell you that you should stop buying that daily coffee as well as all the other small purchases that bring a little bit of joy into your life, increasing your income is likely a better move if you want to stop living paycheck to paycheck. This could look like picking up a side hustle, asking for a raise at work, or even changing jobs altogether. It’s a good time to be a job seeker, especially if you have valuable skills to offer.

2. You have no emergency fund

Did I mention that homeownership isn’t cheap? If you’re a renter and something breaks in your home, it is generally not on you to get it fixed. But if you own the house and the hot water heater decides to go kaput, you’ll have to foot the bill for a new one. This is why it’s a terrible idea to buy a house without an emergency fund saved up. In fact, if you’re buying an older home, you might even want a specific pot of cash to serve as a maintenance fund. This way, you can tackle those problems as they arise, and maybe avoid going into debt when the inevitable happens.

3. You have a lot of debt

Speaking of debt, if you have a lot of it, especially of the high-interest credit card variety, it’s likely not the best move for you to buy a home until you get out from under it. And credit card debt is particularly insidious because of the variable interest rates it comes with. Your balance will just keep climbing over time, so it’s best to chip away at it as much as you can before looking into mortgage loans. Plus, lenders consider your full financial picture when deciding whether to approve your loan application, so you may find it difficult to get a mortgage loan at all if you have a lot of debt to pay off.

4. Your credit score needs work

Speaking of getting approved for a mortgage loan, your credit score is of the utmost importance here. If you’re hoping to buy a home with a conventional loan, your target is likely 620, but you can buy a home with a lower credit score if you use a government-backed mortgage like an FHA loan. That said, the higher your credit score, the more likely it is that you’ll be offered a better interest rate, and rates are up right now, making this even more crucial. As of this writing, Freddie Mac is reporting the average rate for a 30-year fixed-rate loan is 6.32%. Ouch.

It’s a lousy feeling when you want to buy a home of your very own, but your finances aren’t in the right shape for you to do so. Taking steps like increasing your income, boosting your credit score, and paying off some existing debt can make a world of difference, though.

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Suze Orman recommends not buying a car until you have a credit score of at least 700. Here’s why it matters, as well as your options if your score is too low. 

If you’re buying a car, chances are you are going to have to borrow money to pay for it. For most people, a car loan is the best option, rather than a personal loan or credit card, because car loans are secured loans that usually come with a more affordable fixed interest rate.

If you are taking out a car loan, your credit score is going to impact how much you must pay to borrow. That’s why finance expert Suze Orman recommends waiting to buy a car until your credit score hits a certain threshold.

Suze Orman says this is the minimum recommended credit score before buying a car

According to Suze Orman, the credit score you have when applying for a loan could have a huge impact on total costs of your vehicle, with some borrowers paying more than double the interest rate of others due to the fact they have subprime credit.

Since applying with a low score can cost so much more, Orman believes you should ideally put off the purchase of a vehicle until your credit score is at least 700.

“Unless you must buy ASAP, I would advise anyone with a credit score below 700 or so to work on building up their credit score before loan shopping,” Orman said. “Paying all your bills on time is a big help, as is reducing any unpaid balance on your credit card bills.”

A score of 700 usually falls within the “good” range, which means you should be able to get a loan at an affordable cost from a variety of different lenders. By shopping around with a good score, financing should be relatively affordable so you won’t face much higher monthly payments due to extra interest owed to lenders who charge you more for presenting a greater risk.

What to do if you can’t wait

Of course, not everyone can wait to improve their credit score, even if doing so would be ideal. If you find yourself in a situation where you must buy a car ASAP but your credit is below the 700 threshold, there are a few steps you can take to try to make the purchase as affordable as possible.

First and foremost, you’ll want to shop around before you commit to borrowing. Don’t assume that the dealer is always going to have the best rate. Check with the bank you do business with, or shop around online with different lenders to find one that offers the most competitive terms.

If there is someone in your life with good credit, you may also want to consider asking if they might be willing to cosign for you. A co-signer with good credit can help you qualify for a loan at much more competitive rates — but you need to be sure you can pay off your loan in full so you don’t damage the co-signer’s credit and hurt your relationship.

Saving up a larger down payment also reduces the amount you must borrow and the risk to the lender, so it’s well worth it if you can.

Ultimately, focusing on increasing your credit score can help with your car purchase and other financial obligations in the future. And, if you can wait to borrow until you improve your score, you should try. But if that’s not possible, taking these steps can help you get the most affordable loan available for a car you need 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.The Motley Fool has a disclosure policy.

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