Money Management

Some airlines have more generous policies — Delta is one of them. 

It can be frustrating showing up to the baggage claim after your flight, only to find that your checked bag is nowhere in sight. Unfortunately, sometimes bags are delayed or don’t reach their intended destination as planned. It’s worthwhile to look into your airline’s baggage policy before your next trip. One major airline has a 20-minute bag-to-claim guarantee for all domestic flights, and if your checked bag doesn’t arrive on time, you could be entitled to bonus miles. Your unfortunate situation may not be too terrible after all.

Delta is committed to delivering your bags on time

Delta Air Lines is committed to providing reliable, on-time baggage service to its customers. The airline has a 20-minute bag-to-claim guarantee for all domestic flights operated by Delta Air Lines and Delta Connection carriers. This policy doesn’t apply to international flights.

Here’s how the guarantee works: If your checked bag doesn’t arrive at the carousel in 20 minutes or less, you’re eligible to receive 2,500 bonus SkyMiles. Travelers must be SkyMiles members and must include their SkyMiles number on their reservation to be eligible.

If your bag takes longer than 20 minutes to arrive at the carousel after flying with Delta within the United States or Puerto Rico, you can fill out a claim form online to collect your bonus miles. You must submit the claim form no later than three days after your flight’s arrival. Travelers should allow up to two weeks for bonus miles to appear in their accounts.

2,500 bonus miles could be a win for your wallet

You may wonder if it’s worth your time to submit a claim. The required form only takes a few moments to submit, so it’s not a time-consuming process. Getting 2,500 free miles for the inconvenience is likely a win for most Delta customers, especially if they’re frequent fliers.

According to The Ascent’s valuation estimates, Delta SkyMiles are generally worth between $0.01 and $0.03 per mile when redeemed for travel. With this information in mind, 2,500 miles are worth between $25 and $75. This could make for an easy way to boost your stockpile of SkyMiles so you’re closer to your next award travel redemption.

Review baggage policies before traveling

Reviewing all baggage policies for your chosen airline before flying is a good idea, and it can help you feel less stressed when dealing with an unfortunate baggage situation. If your checked bag is delayed, lost, or damaged, you’ll want to know how the airline will handle the situation and what compensation you’re entitled to if things go wrong. You may be entitled to compensation if your bag is delayed or lost for a significant period, so don’t miss out.

Don’t ignore travel credit card perks

Many travelers use travel rewards credit cards to earn rewards and get extra benefits. Some travel credit cards and airline credit cards include baggage delay protections. This benefit could be valuable if you fly often and tend to check a bag when you travel.

Make sure you review your credit card perks, so you don’t let valuable benefits go to waste. Getting a Delta credit card may be worthwhile if you’re a frequent Delta flier. Check out our list of the best Delta credit cards to learn more about each card’s benefits and features.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

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Aldi is a great place to buy groceries, but it has its flaws. 

Inflation has driven the cost of groceries way up. As of January, supermarket prices were up 11.3% on an annual basis, according to that month’s Consumer Price Index.

In light of this, I’ve been trying to do what I can to save money on groceries to keep my credit card bills manageable. One thing I’ve done is try to get more organized and plan meals in advance. I’ve also tried shopping for food more strategically.

Normally, I shop at Costco once a week to benefit from the bulk discounts it offers. And because I have an executive membership, I get 2% cash back on all of my purchases.

Meanwhile, there happens to be an Aldi in the same shopping center as my local Costco. And I started shopping there a few months ago because I’d heard that you can snag a lot of discounts.

That’s definitely true. In the past few months, I’ve saved my fair share by purchasing food at Aldi — particularly produce, which I’d normally buy at Costco. But I’ve also run into a few pitfalls in the course of shopping at Aldi. So if you’re looking to give it a try, here are some drawbacks you should be aware of.

1. Lesser-known brands

Most of the brands you’ll find at Aldi aren’t nationally recognized ones. Aldi specifically carries brands that are exclusive to the store so it can offer lower prices to consumers. But because I have picky eater kids in my household, that’s a problem.

My kids and I eat cereal frequently. Now I don’t care if the toasted, circular oats floating around my cereal bowl are called Cheerios or something else. But my kids do. And so I can’t buy the Aldi brand cereals because I know they won’t get eaten.

2. Limited products

When I go to Costco, I know full well that I won’t be able to do all of my shopping for the week there. Though Costco carries a wide variety of food products, it doesn’t stock everything I need, so I generally have to visit a regular grocery store at least once a week as well.

Aldi, however, doesn’t have the same amount of inventory as my regular grocery store. And so even when I shop at Aldi and Costco, it doesn’t tend to save me a trip to the regular supermarket.

3. Less consistency

Back in 2021, when supply chains were all hammered, it was common for me to walk into my regular supermarket and struggle to find something basic, like cream cheese or grapes. These days, that’s thankfully not an issue anymore. But at Aldi, it is.

I’ve found that Aldi’s product offerings are not very consistent. There are some weeks when I’ll stop in only to find that they don’t have strawberries, or cucumbers, or another common product you’d expect to see at a grocery store. That can be a frustrating thing when you only have time to stop at one store.

All told, I still recommend checking out Aldi if you’re looking to save money on groceries. But do be aware that shopping there might leave you disappointed — and needing to hit up yet another supermarket after the fact.

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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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Don’t get mad at Costco for raking in the fees. 

If you’re a Costco member, you’re no doubt aware that it costs money to be able to shop there. Currently, a basic Costco membership costs $60, while an executive membership has a $120 price tag. But with an executive membership, you get 2% back on your Costco purchases, the same way you might get 2% cash back by swiping a credit card at a gas station or grocery store.

Now, there’s talk of Costco raising its membership fees in the near future, namely because it hasn’t done so since June 2017. And that may not sit well with some members.

Meanwhile, you may be curious to know how much money Costco makes on membership fees. The answer? A lot.

Last year, in fact, Costco made more than $4 billion in membership fees. And clearly, that’s not a small amount of money.

But rather than begrudge Costco that revenue, you should actually be thankful for it. Here’s why.

What Costco fees do

Costco charges members a fee to help offset its operating costs, and to also offset the cost of procuring inventory. You’ve probably noticed that Costco’s prices tend to be quite competitive, whether you’re buying groceries, household essentials, or gas. The reason Costco is able to offer such low prices is that it takes in enough revenue from membership fees to do so. If Costco were to lower its fees, it would probably have to raise the price of the goods it sells.

Is your Costco membership worth it?

You may be at a point where you’re tired of paying a membership fee to access Costco. If that’s the case, you’ll need to ask yourself whether it’s worth it to keep paying for the privilege to shop there.

A good bet is to think about how often you shop at Costco and how much you save, on average, per visit. Let’s say you shop there once a month and save an estimated $20 on your grocery bills when you do. Even Costco’s more expensive membership is much less than $240, which is the amount of savings you’re looking at in this example. So in that case, keeping your membership makes sense.

But if you only shop at Costco a couple of times a year and save $20 per visit, well, then it may be time to rethink your membership. Ultimately, a good bet is to look at your credit card statements from last year and see how often you visited Costco. Then, pay attention to your savings on your next visit and figure out from there whether it makes sense to renew your membership.

And if you’re not sure what your savings per visit look like, keep your next receipt from Costco and then compare prices with what your neighborhood supermarket charges. You may need to bust out the calculator on your phone to adjust for differences in quantity and figure out unit price, but it’s important to run those numbers — because while a Costco membership makes sense for a lot of people, it may not actually make sense for you.

What’s more, it’s a good idea to make sure a Costco membership makes sense now, before the cost of one increases. We don’t know when that’s going to happen, but there is a chance it’ll be sometime in 2023.

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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 may not be able to have one without the other. 

You’ll often hear that it’s important to save money for retirement if you want to live comfortably during your senior years. That could mean contributing to a 401(k) plan sponsored by your employer or putting money into an IRA that you manage independently.

Now, you may be in the habit of steadily funding a retirement savings plan. And if so, give yourself a pat on the back, because that’s not an easy thing to commit to.

But if you really want to help ensure you’ll be able to kick off retirement with a solid nest egg, you’ll need to work on building a strong emergency fund. Here’s why.

When you don’t want to be forced to tap your nest egg prematurely

It’s not all that uncommon to be faced with unplanned bills, whether it’s home repairs, car repairs, or medical expenses. The problem, though, is that many Americans aren’t equipped to handle a surprise bill.

A recent SecureSave survey found that 67% of Americans could not cover a $400 expense from money in savings. If you’re in a similar boat, it might put your nest egg at risk.

Let’s say you don’t have any money in your savings account, but you happen to have a $10,000 balance in your 401(k) because you’ve saved in that plan for many years while taking advantage of matching contributions from your employer. If you’re hit with a $3,000 home repair, you may decide to take out a 401(k) loan to cover that expense.

But what if you can’t pay that loan back? Not only might you face penalties (because your loan will then be treated as a distribution, and if you’re not 59 ½, an early withdrawal penalty will ensue), but you’ll also have that much less money in your nest egg.

You might think that retiring with $3,000 less won’t really hurt you. But remember, when you remove money from a retirement account, you don’t just lose out on principal funds. You also lose out on the chance to grow your money into a larger sum.

So, let’s say your 401(k) typically generates an 8% average annual return, which is a bit below the stock market’s average, as measured by the S&P 500 index. If you remove that $3,000 when you’re 30 years away from retirement, it means potentially missing out on more than $30,000 of future income when you account for lost growth.

Make emergency savings your priority

It’s definitely a good thing to save for retirement. But if you don’t also make an effort to sock money away for near-term needs and emergencies, you might end up depleting your nest egg over time — and shorting yourself financially later in life.

At a minimum, you should aim for an emergency fund with enough cash to cover three months of bills. If you can’t do that, save enough to cover one month of expenses, and then work your way up from there.

Funding an IRA or 401(k) could leave you in a great spot once retirement rolls around. But make sure to leave yourself with enough emergency savings to let your retirement plan be.

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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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A Sam’s Club membership is loaded with value. 

As everyday prices continue rising, many of us are looking for ways to save money on food and essentials. For some consumers, a warehouse club membership allows them to keep more money in their checking accounts. If you’ve been considering investing in a warehouse club membership, Sam’s Club is one popular option. Members enjoy a variety of perks, like these.

1. Save money on food, household essentials, and more

If you want to stretch your money further, a Sam’s Club membership may help. A variety of products are sold at a discount to members. You may find it easier to stick to your budget by shopping here instead of a traditional grocery store or other retailers in your area.

Here are some items you can save money by becoming a member:

GroceriesToiletriesHousehold cleaning suppliesFurnitureClothingPet suppliesElectronicsOffice suppliesHealth and wellness products

2. Share a membership with a household member for free

When you become a member, you can choose an additional household member to share your membership benefits with, and it won’t cost you anything extra. Each household member will get a membership card so they can shop when it’s convenient for them. This is a valuable perk if you have another adult who shares the shopping responsibilities in your household.

3. Use the Scan & Go service to save time

Time is money, and Sam’s Club is making it easier for members to get in and out quickly. You can check out faster with the Scan & Go service. All you have to do is scan items as you shop. When you finish shopping, you can pay through the Sam’s Club mobile app. With this service, you can avoid waiting in a long line and get on with your day. Introverts who like to limit their human interactions may find this perk especially useful.

4. Earn Sam’s Cash through bonus offers

Members can also earn Sam’s Cash through bonus offers. You’ll earn it when you spend money with participating retailers. You’ll need to link your debit card or credit card through the Sam’s Club mobile app and activate offers to earn rewards. Sam’s Cash earnings can be redeemed as cash back to pay for in-club purchases, online purchases, and membership costs.

5. Get a discount when you fill up your gas tank

These days, it can be costly to fill your gas tank. As a Sam’s Club member, you can get a discount on gasoline by filling up at your local Sam’s Club fuel station. You likely won’t get rich from these savings, but if you drive a lot, you could save quite a bit of money with this included membership benefit.

Sam’s Club membership options

Sam’s Club offers two types of memberships. The base membership is called a Club membership and costs $50 annually. The company’s higher-level Plus membership costs $110 per year. The Plus membership comes with additional perks, like free shipping for online orders and free curbside pickup.

However, you may be able to join for even less. That’s because Sam’s Club frequently has new-customer promotions, which makes joining more affordable. New customers can become Club members for one year for $25 instead of $50 through January 2024. If you’re on a tight budget and want to become a member, check current membership promotions first, so you don’t overspend.

Switch up your shopping routine to save money

Life is expensive, and leaving the grocery store without spending a hefty sum can be challenging. But you can honor your personal finance goals and stay on budget by shopping at more affordable retailers. If you’re unhappy with the prices you’re paying at the grocery store, don’t be afraid to check out other stores in your area to see if you can save money by shopping elsewhere. If you’re a Sam’s Club member, be sure to take advantage of these big perks.

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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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In some cities, the number of millionaire renters has tripled in recent years. 

The Millionaire Next Door? The Millionaire Down The Hall may be a more apt name for a personal finance book written in 2023. A record number of affluent Americans are renting across nearly every major city in the nation. What’s behind the shift and what does it mean for the rest of us?

Lifestyle renters

Thousands of high-income Americans are renting these days, and they wouldn’t have it any other way. While the ownership of property may be a nice-to-have for these people, they are instead prioritizing the prime proximity and short-term commitment of a rental property.

A more central location is a major consideration for many affluent households, regardless of age. The young High Earner, Not Rich Yet (HENRY) crowd may seek the social life of downtown while the middle-aged worker may want to ditch the commute. Another group, retirees, may want to downsize into a more walkable neighborhood. For all of these people, renting in a more metropolitan area beats buying in a suburb.

Homeownership, and especially the mortgage loan that comes with it, is a long-term commitment. Bundling your living arrangement with an illiquid asset like a home may not be ideal for many high earners. Affluent young Americans may not want to settle down, and with high rates of job hopping, being able to drop everything and move on short notice is a must.

Patient renters

While some affluent households choose to rent, others may have the choice made for them. Home buyers today face a highly competitive market where supply and demand, the interest rate environment, and other buyers present many obstacles.

It’s no secret: the housing market is hot right now. Long gone are the days of the pandemic-era buyer’s market. Today, a home buyer in most cities can expect stiff competition, which can lead to waivers of inspection and hard-to-beat cash offers. It is no surprise then that affluent households who can afford to wait in their home search are increasingly likely to do so. Even though these buyers likely can enter the real estate market, they may wait for a better deal or fewer headaches in the buying process.

The Fed’s main weapon in fighting inflation is a double-edged sword. While higher interest rates are reining in inflation, they are also making it harder for buyers to finance the purchase of a home. A dramatic increase in interest rates means that Americans are paying hundreds of thousands of dollars more today than they were at this time last year to buy the same house. That kind of cash makes it hard to blame some consumers for sitting this market cycle out.

What this trend means for you

Wealthy Americans are, in record numbers, choosing to rent instead of buy homes. But the economic reverberations of that shift will affect more than just those affluent households. So, what signals can we read from this change?

The most major impact will be in the supply and demand of rental properties. A growing influx of renters means, in the short term, more competition and higher prices. And for the lowest income renters, often younger workers who cannot afford to pay higher rents, the results could be devastating. A report found that rentals by Americans earning under $50,000 annually dropped 11%, signaling that many young workers have been forced to move back in with their families.

The number of wealthy Americans renting is in an upswing across the nation. While some households are prioritizing location and flexibility over property ownership, others may be waiting out a crazy housing market. Regardless of your financial situation, a wave of renters could sweep you out of the rental market.

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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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