Money Management

Running through them could help you avoid wasting money. 

My family generally shops at Costco on a weekly basis, and when it’s my turn to pick up groceries, I often take a “get in, get out quickly” kind of attitude. It’s not that I don’t love Costco, but rather, I tend to be pressed for time during the workweek, so I try my best to limit the minutes I spend in the store.

But there are certain times of the year, like the weeks leading up the holidays, when I make a point to spend extra time wandering the aisles of Costco. That’s because Costco is known to introduce seasonal offerings, many of which I tend to find appealing (usually, they’re of the bulk chocolate variety).

But to be clear, Costco actually introduces new products quite often during the year, whether it’s fresh food, packaged food, toys, or apparel. And you may be tempted to take a chance on a new Costco product that catches your eye. Before you do, though, ask yourself these questions to make sure you don’t end up wasting your money.

1. Have I done any research on price?

You might see a cool new toy hit the shelves at Costco. And if you have a kid’s birthday coming up, you may want to jump at the opportunity to buy it. Before you do, though, whip out your phone and see if another retailer carries it. You may find that Amazon or Target has a better price, so it’s worth looking around.

It pays to do the same with bulk grocery items. A quick online search might reveal a different source for the product you’re looking for — at a lower price than Costco’s, believe it or not.

2. Will my family really eat/use this?

Most of what I buy at Costco is food. So when I see new products arrive that I’m tempted to purchase, one of the first things I try to consider is whether my family will enjoy and consume it.

My kids tend to be picky about things like crackers, for example. So even if I come across a new brand or variety that looks good to me, I’ll often hold off on buying it so as to not throw my money away.

3. Can I afford an extra purchase this month?

Money has been tight for a lot of people since inflation started surging. If you’ve been consistently dipping into your savings account to make ends meet, then it may not be the time to buy something new at Costco if it isn’t a staple item your household can definitely use. After all, the last thing you need is an extra $15 charge on your credit card when you’re struggling to scrape by.

If you shop at Costco frequently enough, you may come across your share of new products. And it’s natural that you’d want to make the most of your $60 membership (or $120, if you have an executive one).

In some cases, buying them might work out nicely. But be sure to ask yourself these key questions before loading those products into your oversized shopping cart.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com and Target. The Motley Fool has positions in and recommends Amazon.com, Costco Wholesale, and Target. The Motley Fool has a disclosure policy.

 Read More 

It’s a move you may want to make for several reasons. 

The process of searching for and buying a home can be a stressful one. This holds true even in the most buyer-friendly housing markets.

Today’s real estate market, however, is anything but. And since housing inventory is still very low on a national level, it’s important to do what you can to give yourself a leg up over the competition.

To that end, financial guru Dave Ramsey has some solid advice. And it’s worth following it if you’re serious about being able to buy a home in the near term.

Get pre-approved for a mortgage

Getting pre-approved for a mortgage is not the same thing as signing an actual mortgage loan. But what a pre-approval letter does is show home sellers that you’re a serious buyer whose finances have already been looked at by a lender. And that’s an important document to have in a tight housing market where there’s still a lot of competition for available homes.

As Ramsey says himself, “Getting pre-approved for a mortgage before you go house hunting is a must in any market. And it’s even more important when home supply is low. If you don’t do this legwork ahead of time in a market like this, you could give a pre-approved buyer free rein to swipe the home you want right out of your hands.”

Remember, when a home seller enters into a contract with a buyer, they take the risk that the buyer in question may not be able to qualify for a mortgage on the property they’re looking to purchase. And that could lead to a deal falling through.

That’s why so many sellers prefer cash offers. Those don’t hinge on mortgage approval, so if a buyer can prove they have $500,000 sitting in their bank account they can transfer to a seller at any time, that’s more of a sure thing.

But when you come in with a mortgage pre-approval letter, you give your seller similar peace of mind. And so if you’re competing with another buyer for the same home, and that other buyer didn’t get pre-approved for a mortgage and you did, it gives you an instant advantage.

Help in narrowing down your home search

In getting pre-approved for a mortgage, the lender you work with will tell you what amount you’re pre-approved for. And that could help you embark on a more efficient home search.

If you’re told you’re pre-approved to borrow up to $400,000, and you have $100,000 to put down on a home purchase, it means you’re looking at a $500,000 limit. So in that case, you’ll know not to bother looking at homes in the $600,000 range.

All told, getting pre-approved for a mortgage is a smart move to make in a market like the one we’re in today. But even during markets where buyers have the upper hand, it still pays to get pre-approved for a mortgage for the numerous benefits involved.

Just keep in mind that your mortgage pre-approval letter might have an expiration date on it. So it’s best to get pre-approved for a mortgage once you’re serious about starting your search for a home.

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 

Your local Costco could be a source of not just bulk grocery items, but clothing, too. 

Many people join Costco to get access to bulk household essentials and grocery items. And shopping there can easily result in a lower credit card tab than shopping at supermarkets and big-box stores. But if you’re only buying groceries and household supplies at Costco, you’re potentially making a big mistake.

Costco actually carries a wide range of apparel for men, women, and children. Depending on the time of year, you’ll find everything from winter coats to swimsuits to pajamas and activewear. Costco even carries footwear, accessories like gloves and hats, and some specialty clothing items, like party dresses. And here are a few good reasons to do your clothing shopping at Costco.

1. You can save money

Costco’s competitive prices aren’t just limited to food, cleaning supplies, and paper goods. Shopping there could also mean spending less on apparel.

Case in point: Right now, Costco has a three-pack of women’s quick-dry t-shirts for $13.99 from one of its featured brands, 32 Degrees. Amazon, by contrast, is selling a two-pack of similar t-shirts by its Amazon Essentials brand for $17.40. When you do the math, you can see that Costco’s offering is the much better deal.

Of course, this is just one example, and if you have the time to comparison-shop, it pays to do so. The point, however, is that you’ll often find great deals on clothing at Costco. And if you’re trying to grow your savings account balance, that’s important.

2. You can access brands you may not find elsewhere

If you shop at Costco a lot, you may be familiar with the Kirkland brand, which is Costco’s signature brand. You can find Kirkland-branded clothing, and a lot of it is actually quite stylish and comfortable. But you generally won’t find Kirkland clothing at a regular department store.

3. You don’t have to make a separate trip to another store

Let’s say you’re out grocery shopping at Costco, and your child needs new socks or athletic pants. Your day is already jam-packed, and your nearest clothing store is a good 15 minutes out of your way — each way. In that scenario, it pays to see if Costco has what you need. Although Costco’s selection of apparel can be limited, if the store has what you want, it might save you the trip to another store. The result? More free time for you, and less money spent on gas.

You may not think of Costco as a go-to source for clothing. But it pays to walk around your warehouse club store and see what’s in stock. You can also find great deals on clothing by shopping at Costco online. In fact, you may find a wider range of sizes and selection online, so if your local store doesn’t have what you’re looking for, Costco’s website is worth checking out.

Best of all, you can commonly find clothing deals at Costco online that ship out for free. So in some cases, you may not even have to leave the house at all.

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.

 Read More 

It’s starting to seem like higher costs just aren’t going to go away. 

Many Americans have been struggling with higher living costs for well over a year now. And unfortunately, lawmakers don’t seem to be rushing to send any federal stimulus aid to help out.

Now to be fair, putting stimulus funds into Americans’ bank accounts is unlikely to solve the problem of inflation. If anything, it might only make the issue even worse.

But that doesn’t change the fact that many consumers are struggling to pay their bills, and have been for many months. And at this point, a lot of people may no longer have savings to dip into to compensate for higher costs.

Meanwhile, the Consumer Price Index (CPI) showed that inflation rose in February compared to January. However, the CPI showed a lower level of annual inflation in February than a month prior, so that’s at least one positive sign. And now, another key index is pointing to a drop in prices.

Producer prices are falling

In February, the Producer Price Index, which measures what producers get paid for goods and services, fell to 4.6% on an annual basis. In January, the index sat at 5.7% for that same measure. And between January and February, producer prices fell by 0.1%.

That’s a good sign on one hand. But it won’t necessarily spell the immediate relief consumers are desperate for. After all, it just shows that producers are being paid less for goods. It doesn’t mean goods have become affordable again.

Also, a 4.6% Producer Price Index reading doesn’t necessarily mean that next month’s CPI is going to plunge dramatically. So all told, while a lower annual reading is encouraging, it’s not a solution.

When will consumers finally get relief?

Last year, the problem of inflation got so bad that a number of states decided to send out stimulus payments to residents to help them cope with higher costs. Since then, inflation has dipped modestly, but it’s still high, historically speaking.

Since stimulus aid can’t solve the issue of inflation, consumers’ best bet right now may be to exercise a combination of patience and strict budgeting. Turning to the gig economy could also be a good way to cope with inflation, since right now, jobs seem to be fairly abundant.

Will tax credits be introduced to fight inflation?

That’s pretty unlikely. Lawmakers have been fighting to bring back the boosted Child Tax Credit, which was introduced in 2021 to provide relief while the pandemic was still raging. But so far, they’ve been unsuccessful.

It’s doubtful that lawmakers will get away with passing an inflation-specific tax credit. But struggling consumers might manage to eke out more tax savings by reading up on existing credits and deductions and claiming the right ones.

Those wishing for a stimulus check may also want to get their taxes done sooner rather than later if they’re anticipating a refund. Having that extra money arrive a few weeks earlier could be crucial at a time when living costs are still so unbelievably high.

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 a disclosure policy.

 Read More