Money Management

DIY feels good, but does it really save you money? 

One of the biggest personal finance problems with hiring a professional to do, well, anything, is the cost of that expertise. That’s right, we’re talking labor. The biggest line item on nearly any bill.

That’s why it’s often so much more affordable to do it yourself (DIY) — provided you have the requisite skills to not make a mess out of it, of course. This applies to everything from home haircuts to simple repairs. And, yes, even some auto maintenance and repair jobs.

But what about the most frequent bit of auto maintenance: oil changes? Is it really more economical to DIY your oil change? Or is that something you should leave to the hourly “pros” at the quickie lube? Turns out, it’s not as clear-cut as you may think.

You might save a little money — maybe

At the end of the day, whether you save money on your oil change by doing it yourself instead of taking it into a shop depends on a ton of variables:

The cost of the oil: If you can get it on sale, you might come out ahead. If not, the shop buying it by the vat probably gets a better per-quart price than you can find.The cost of the filter: Like the oil, if you can find a good sale, you may get a better price. Again, though, the scale at which big shops buy these things means they’re likely getting the better deal.The cost of disposal: You can’t dump motor oil down the drain or in your yard. (Seriously, that’s a major no-no. Don’t do it.) Instead, you need to take it to an auto parts shop or mechanic who can safely dispose of it. Some places will do this for free, but others will charge you a fee for the service.The tools of the trade: Changing your own oil means you’ll need a few tools, including an oil pan (to catch the oil), funnel, wrenches and pliers (to access everything), and ramps and/or a jack (so you have room to work). If you don’t already have these things on hand, that first DIY oil change is going to be pricey. The know-how: Here’s the big one. If you already know how to change oil — and, more specifically, how to change the oil in your current vehicle — then great! If not, be prepared for the first few changes to have a significant time investment while you learn what to do (YouTube videos take time to watch, after all). And, potentially, more time spent trying to fix things if you mess something up.

All this is to say, if you know what you’re doing and can find a good deal on your supplies — which shouldn’t be that hard, honestly, as auto parts stores (and even big box stores) run sales on these things regularly — then yes, you might save a few bucks doing it yourself.

Is it going to be an eye-popping amount of savings? No, probably not. And especially not if you place a high value on your time.

Fringe perks of a professional job

Another thing to keep in mind when debating whether to DIY your next oil change is that the shop typically doesn’t stop at the oil and filter. Most professional oil changes also come bundled with a number of other services that may change the savings quotient.

For example, most oil change shops will also check and top off your various fluids — power steering fluid, brake fluid, coolant/antifreeze, wiper fluid — as well as inspect things like belts and hoses. They also may inspect your windshield wipers, the health of your battery, and even your tire pressure.

All of these extra checks and top-ups take only minutes for the techs who have easy access to the right tools. For the home mechanic, this may mean an extra half hour to an hour of work as you maneuver for access and swap out tools (or even longer if you need to run to the store for a fluid you don’t have on hand).

The priceless quality of peace of mind

Of course, there are reasons other than the base cost of the job for doing it yourself. The biggest one? The peace of mind of knowing the job was done with care and with quality materials.

When you do the job yourself, you can ensure you’re using exactly the parts you want. You can choose the best-quality air filter and oil. You can check and triple check that every cap is replaced and screw back in place.

And you also have to do it all with your own two hands. In a world where most of us spend our days in front of a screen, that quality time getting your hands dirty could be a real boon.

How to save in either case

If you’re sold on the DIY approach, it’s time to start looking for deals. You’ll need oil, filters, and tools — ideally all on sale. (You can keep unused oil in your garage, so don’t be afraid to buy a little extra if you find a great sale.)

If you’d rather let the pros handle it — well, you’ll also want to keep an eye out for deals. Many chains will run regular specials, including putting coupons on their websites and/or in local publications. Your neighborhood mechanic may also offer you a deal if you ask (though don’t expect them to price match a big chain).

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Image source: Getty Images
What happenedThe FDIC says the collapse of Silicon Valley Bank and Signature Bank will cost it around $23 billion. In a speech to the Senate Banking Committee, FDIC Chair Martin Gruenberg said it would use a “special assessment” to replenish its Deposit Insurance Fund (DIF). According to a recent Bloomberg article, big banks may be on the hook for a large proportion of that money.So whatFDIC insurance is an essential consumer protection that underpins the entire industry. It covers bank customers for up to $250,000 per depositor, per insured bank, for each account ownership category. It gives consumers the peace of mind that if their bank failed, they would not lose their savings. As such, consumers need to trust that the FDIC has enough money to protect them.
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As of November last year, there was $128.2 billion in the DIF, meaning recent events cost almost 20% of the cash it has on hand. Gruenberg says the FDIC has the legal authority to recover the funds from various entities and that it will report back in May on who will have to pay what. Bloomberg cites people close to the matter in suggesting that big banks — who’ve already put significant sums into propping up First Republic — may take a lot of the strain.Now whatAuthorities are doing everything they can to prevent a full scale banking crisis. While it isn’t clear if all the shock waves from SVB’s collapse have fully passed, it does appear that the worst is over. Gruenberg said the massive flow of withdrawals has slowed in the past few weeks and stressed, “The state of the U.S. financial system remains sound despite recent events.”If you’re worried that the FDIC will run out of money if the bank failures continue, try not to panic. Take heart from the fact that nobody’s ever lost money in insured deposits. There are a number of safeguards in place to stop this from happening. History shows us that authorities will step in to protect your savings and deposits. Even during more significant financial crises, such as that of 2008, the FDIC has always found ways to make bank customers whole.One practical step you can take is to double check that your bank account is FDIC insured. If you have large sums deposited with a single bank, it’s also worth making sure all your funds are covered. You might need to use a joint account or even open a new account with another bank to spread out your funds. Check out our guide on what to do if you have more than $250,000 for more information.These savings accounts are FDIC insured and could earn you 13x your bankMany 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 13x 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.Emma Newbery 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. 

What happened

The FDIC says the collapse of Silicon Valley Bank and Signature Bank will cost it around $23 billion. In a speech to the Senate Banking Committee, FDIC Chair Martin Gruenberg said it would use a “special assessment” to replenish its Deposit Insurance Fund (DIF). According to a recent Bloomberg article, big banks may be on the hook for a large proportion of that money.

So what

FDIC insurance is an essential consumer protection that underpins the entire industry. It covers bank customers for up to $250,000 per depositor, per insured bank, for each account ownership category. It gives consumers the peace of mind that if their bank failed, they would not lose their savings. As such, consumers need to trust that the FDIC has enough money to protect them.

As of November last year, there was $128.2 billion in the DIF, meaning recent events cost almost 20% of the cash it has on hand. Gruenberg says the FDIC has the legal authority to recover the funds from various entities and that it will report back in May on who will have to pay what. Bloomberg cites people close to the matter in suggesting that big banks — who’ve already put significant sums into propping up First Republic — may take a lot of the strain.

Now what

Authorities are doing everything they can to prevent a full scale banking crisis. While it isn’t clear if all the shock waves from SVB’s collapse have fully passed, it does appear that the worst is over. Gruenberg said the massive flow of withdrawals has slowed in the past few weeks and stressed, “The state of the U.S. financial system remains sound despite recent events.”

If you’re worried that the FDIC will run out of money if the bank failures continue, try not to panic. Take heart from the fact that nobody’s ever lost money in insured deposits. There are a number of safeguards in place to stop this from happening. History shows us that authorities will step in to protect your savings and deposits. Even during more significant financial crises, such as that of 2008, the FDIC has always found ways to make bank customers whole.

One practical step you can take is to double check that your bank account is FDIC insured. If you have large sums deposited with a single bank, it’s also worth making sure all your funds are covered. You might need to use a joint account or even open a new account with another bank to spread out your funds. Check out our guide on what to do if you have more than $250,000 for more information.

These savings accounts are FDIC insured and could earn you 13x your bank

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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 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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Lots of shoppers spend big when they go to Costco. 

It probably doesn’t come as a shock that shoppers tend to spend more at Costco than at other stores. Costco is, after all, the place you go when you want to stock up.

Previous data from Numerator estimated that the average Costco shopper spent about $100 per visit, as reported by Business Insider. That was close to double its estimates for the average at Target ($50) and Walmart ($54). But that was just an estimate based on receipts from a small number of customers. A Costco representative recently revealed the real average, and it turned out to be a whole lot higher.

How much the average Costco shopper spends each trip

The average Costco shopper spends “roughly $150 per order,” said a Costco representative who spoke with Nexstar.

Recent data has also revealed more on Costco members’ shopping habits. The average Costco executive member “spends more and shops more” than the average Gold Star member, according to CFO Richard Galanti on an earnings call in March. That makes sense, given that a Costco executive membership includes a 2% annual reward (of up to $1,000 per year) on eligible purchases.

The amount that people spend on Costco trips has also been increasing. Costco reported that its average spend-per-visit went up by 6.9% and 1.9%, respectively, in its first and second quarter earnings calls for 2023.

Do you actually save money shopping at Costco?

Since Costco is known for low prices, you might assume you’re going to save money there. You definitely can, but it’s also easy to overspend, for a few reasons.

For one, Costco warehouses have lots of quality, affordable products. While that’s a good thing, it also means there’s the temptation to take home anything that catches your eye, even when it’s not on your shopping list. The free sample stations don’t help matters, either.

The fact that Costco sells products in bulk also means shoppers often buy more than usual. Now, this can save you money in the long run — assuming you use up everything you buy. You don’t end up saving money if half the fruit you bought goes bad.

The bottom line is that it’s important to keep track of how much you spend at Costco to see if it’s saving you money. Budgeting apps are a convenient way to track your spending at Costco, and everywhere else.

How to make your Costco trips more affordable

If you want to save more money on your Costco trips, the most important thing you can do is go in with a plan. You’re far more likely to make impulse purchases if you only have a general idea of what you want or what your budget is. Make a shopping list and decide how much you want to spend beforehand.

Also, do the math on your Costco spending to see if an executive membership makes sense. The breakeven point, since it offers a 2% annual reward and costs $120 compared to the $60 Gold Star membership, is $3,000 in annual Costco spending. If you spend at least $3,000, you’ll earn $60 back and make up the additional membership cost. The more you spend, the more valuable it is — up to $50,000 in eligible spending, since the reward limit is $1,000 per year.

Whether you sign up for an executive membership or not, make sure you use a rewards credit card for all your Costco purchases. This way, you earn cash back or points on your spending. Costco only accepts Visa credit cards, but there are plenty of Visa rewards cards to choose from.

It’s not too hard to save at Costco, thanks to its competitive prices. If you stick to a shopping list and maximize your rewards, you’ll get a good deal on every trip.

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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. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Gala, Target, Visa, and Walmart. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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