Money Management

You can have Costco goods arrive at your door without paying a delivery fee. 

There’s a reason so many people love shopping at Costco. When you load up on bulk items, from groceries to household essentials, you can do so at an affordable price point. The result? Extra money for your savings account.

But taking advantage of Costco is really difficult when you don’t have a car, or when your closest warehouse club store is really far away from your home. If you don’t have a car, you’ll pretty much need to pay for a rideshare service to get your Costco haul home (unless you have a nice friend who’s willing to drive you back and forth).

And even if you have a vehicle, if your nearest Costco location is a 30-minute drive, that means you’re spending an hour on the road to do your shopping. You may not have the time for that.

Thankfully, it’s possible to get Costco goods delivered to your door — even perishable items like baked goods and dairy products. And if you sign up for one specific program, you can get same-day Costco delivery without having to actually pay a delivery fee.

The power of Instacart+

Costco offers same-day delivery that’s powered by Instacart+. You can order Costco same-day delivery through Costco itself, or through Instacart. But if you don’t want to pay a delivery fee for same-day service, then you may want to sign up for Instacart+.

Instacart+ costs $99 a year or $9.99 a month if you don’t want to charge an entire year of service on your credit card in one fell swoop. But that membership gives you access to no-fee delivery for orders over $35. In fact, you get unlimited same-day delivery for free if you meet that spending threshold. And since Costco items, by nature, tend to come in bulk, it’s not so difficult to meet that $35 requirement when shopping there.

Should you order same-day delivery from Costco?

If you can’t easily access your nearest Costco location, or you have a week when you’re simply too swamped to make a trip to the store, then paying for same-day delivery could make sense. But you should know that when you order same-day Costco delivery, you’ll pay more per item than you normally would at the store. In fact, Costco is very transparent about this on its website.

Now, the extent of that markup will hinge on your local area. Costco prices vary by geographic region. What you pay for muffins and milk in New Jersey might vary from what they cost you in Delaware. So you’ll need to do your own comparisons to see how much extra money you’re looking at when ordering same-day delivery from Costco.

But ultimately, if you can’t make it over to the store, same-day delivery is certainly a reasonable option to fall back on once in a while. And if you decide that it makes sense to sign up for Instacart+, you can avoid paying a delivery fee not just on Costco orders, but on grocery delivery from a host of different supermarkets.

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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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Know your financial situation to a T. 

You’ve done it. You’ve retired. Now, what? Well, for starters, you’ll want to ensure you’ve got a cash cow big enough to milk for the rest of your life. That means having a solid grasp of your finances, and leaning on good financial habits, like cash savings.

It’s never too late to start planning for retirement. The earlier you start, the better prepared you’ll be.

Why wait? Suze Orman, financial guru, tweeted six tips from her Ultimate Retirement Guide for how to properly pay yourself in retirement. Check out how you can prepare for the next step in your financial life right now.

1. Know your living expenses

Know how much it costs to pay rent, groceries, and your other essential bills. In the words of James Clear, author of bestseller Atomic Habits, we optimize for what we measure. You can’t even begin to optimize for low spending in retirement until you’ve measured your spending habits.

Sneaky expenses like subscriptions can drain your money without you even knowing it. Account for them. List both your monthly and annual fees so you don’t miss once-a-year payments. Don’t know where to start? Check out the average American’s monthly spending for a list of common living expense categories.

Don’t forget to automate where you can! Technology makes this easier than ever. A good budgeting app will track your expenses for you.

2. Calculate your reliable income

Interest. Stock dividends. Social Security income. Tally it up. It will give you a clear picture of how much money you’ll have coming in. Once you’ve measured how much you make, you can work on stretching that income through retirement if necessary.

3. Pay your fixed living expenses from guaranteed income

Build your retirement plan upon a stable foundation. Bare minimum, you’ll want to ensure that you can afford your fixed living expenses. These are the payments necessary to maintain your current quality of life. The biggest household expenses include mortgage, insurance, and grocery payments.

4. Keep two years of living expenses in cash

Even retirees must confront unexpected situations — like crashing markets — that derail financial plans. Prepare for them by keeping two years of living expenses in cash.

Cash is catch-all insurance for the unexpected. It gives you the flexibility you need to gracefully handle financial surprises in retirement. The alternative is being forced to sell stocks for a loss, or taking out interest-bearing loans to pay for a house you can’t sell. When you’re in a pinch, cash is king.

5. Hatch an RMD plan

RMD stands for required minimum distributions, the minimum amount of money a retiree over 72 years old must withdraw from their tax-advantaged retirement accounts. Remember to make the withdrawals before the annual deadline, or you’ll be fined by the government.

Failing to withdraw enough money can cost you thousands of dollars. Figure out your RMD for the year by using the RMD calculator offered by AARP.

6. Plan to spend no more than 3% of your portfolio in your first year

Build good financial habits. You may be thinking of spending a little extra your first year and cutting back your second. That’s a slippery slope. Suze Orman recommends planning to spend no more than 3% of your portfolio in your first year of retirement.

For example, if you have $1,000,000 in assets, you’ll want to spend no more than $30,000 your first year. If that seems low, remember that you may be supplementing that spending power with alternative income streams.

Stick with good habits. According to James Clear, the expert on habits, “You can break a habit, but you’re unlikely to forget it.” Don’t risk your financial future by forming unsustainable financial habits your first year of retirement. Start retirement right, then go from there.

What if you don’t have enough money?

Save more, delay retirement, or stay employed. That’s it. That’s all you can do.

Say you want to save more. Consider contributing 10% of income to a tax-advantaged retirement account to maximize savings. Automate contributions to make saving even easier.

You can retire as soon as you’re 65, but there’s a catch. You can delay retirement to increase your Social Security benefit. Consider this when calculating your reliable income.

Speaking of reliable income, many folks work through retirement. Reasons for doing so include supplementing Social Security income, maintaining a lifestyle, and doing meaningful work. Even picking up a light side hustle can help you properly pay yourself in retirement.

One more thing

I’m reluctant to bring this up, but it bears saying. You can always plan on spending less to make retirement more affordable. Consider a timely move — the best states to retire in offer retirees the most bang for their buck and high quality of life. By planning on spending less, you save more.

That said, be wary of slashing spending left and right. Keep your plan realistic — cut too much, and you might struggle to avoid falling into old spending habits. Better to reduce spending right now than to plan on reducing spending later. That way, you can build good financial habits that will serve you by the time you reach your golden years.

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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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Here’s how to catch up with your retirement savings. 

Conventional wisdom says it takes saving 10% to 15% of your income, starting in your 20s, to be on track for retirement. Fidelity also has some popular guidelines on how much you should have at various ages:

One times your yearly income at age 30Three times your yearly income at age 40Six times your yearly income at age 50Eight times your yearly income at age 60

Most Americans don’t meet those guidelines. The average retirement savings was just $65,000 as of 2019, and those under 35 had an average of $13,000. If you’re behind on your retirement, you might be feeling worried and wondering if you’ll ever be able to retire. While this is a stressful situation, a good savings plan can help you get back on track.

How much to save if you’re behind on retirement

When you’re behind on your retirement savings, the first thing to do is set some clear goals. Ask yourself:

When do you want to retire? Pick a retirement age, and then do the math on how many years away you are.How much annual income will you need in retirement? A common rule of thumb is that you’ll need about 70% to 75% of your salary in retirement.How much money will you need in total? Fidelity recommends retiring with at least 10 times your yearly income.

Once you have goals in mind, plug your information into a retirement savings calculator. This will calculate how much you need to save to retire on time. The best-case scenario is that the amount you need to save per month is doable for you. But what if it’s not?

Don’t feel like you need to make a massive increase in your retirement contributions right away. This usually doesn’t work out well. It’s hard to make such a big financial change all at once, and you don’t want to discourage yourself with an unrealistic goal.

Instead, bump up your retirement contributions by a reasonable amount. If you’re not contributing anything yet, start with 10% of your income. If you’re contributing 10%, try raising that to 15% or 20%. Having a goal you can reach every month helps you stay motivated. You can always save more if you still have money left over.

The good news is that even if you’re behind on retirement savings, it could be easier to save as you get older. Income goes up with age and normally peaks between 45 and 54, according to U.S. income statistics. As your income increases, you can save more towards retirement.

Keep in mind that in a worst-case scenario, you can always make changes to your retirement plans. Maybe you work a few extra years to save more and delay taking Social Security. Or, you could revamp your retirement budget and find ways to get by on less annual income.

Getting on track with your retirement savings

The amount you save for retirement is very important, but it’s not all that matters. There are also a few strategies you can use to maximize that money you’re saving. First and foremost, make sure you’re contributing to tax-advantaged retirement accounts. Options include:

401(k) plans: This is an employer-sponsored retirement plan. Many employers will match 401(k) contributions up to a certain amount. The contribution limit for 401(k)s in 2023 is $22,500 if you’re under 50 and $30,000 if you’re 50 or older.Individual retirement accounts (IRAs): This is a retirement account you can open on your own. The contribution limit for IRAs in 2023 is $6,500 if you’re under 50 and $7,500 if you’re 50 or older.

Both these accounts allow you to deduct contributions on your income taxes. For example, if you contribute $10,000 to a 401(k), it reduces your taxable income by $10,000. You don’t pay taxes on the money until you make withdrawals in retirement. There’s also another type of IRA, Roth IRAs, where you pay income taxes on contributions but get to make tax-free withdrawals.

Since retirement accounts help you save on taxes, it’s recommended to contribute to them first, until reaching the annual limits. If you want to invest more, you can do so through any of the best stock brokers.

Another key consideration is how you invest your money. Most retirement and brokerage accounts give you a range of options. Here are two of the best:

Target-date retirement funds: An investment fund designed for a specific retirement year. Asset allocation is optimized for that retirement year, so this type of fund does the work for you.Index funds: An investment fund that tracks a market index. These tend to have very low fees. Total stock market index funds are popular because you get a diversified portfolio with great growth potential.

It’s stressful when you feel as if you haven’t saved enough for retirement, but it’s also fixable. What’s most important is making the necessary changes immediately. The sooner you start, the better your chances of catching up and being able to retire on schedule.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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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Don’t miss out on the chance to earn rewards while shopping. 

Even if you primarily focus on only purchasing essentials, you likely go shopping regularly. When we shop, we spend our hard-earned money. Seeing a lower checking account balance after completing a costly shopping trip can feel disappointing. But did you know that you can earn valuable rewards while shopping? Find out how to earn rewards as you shop.

1. Pay with rewards credit cards

If you often use credit cards to pay for groceries, gas, and other daily expenses, don’t miss out on the chance to earn rewards. Reward credit cards make it easy to earn valuable rewards as you shop. Some credit cards offer cash back rewards, while others earn points and miles that can be redeemed for things like free travel, products, and gift cards.

2. Join free loyalty programs

Many brands have loyalty programs to incentivize customers to spend more money. Some examples are fast food eateries, restaurants, grocery stores, and beauty retailers. These programs are typically free to join and allow you to earn rewards as you spend money.

What kind of rewards can you earn? Examples include discounts on purchases, free products, and cash back earnings. If you frequent the same business regularly, check to see if it offers loyalty programs. By joining these programs, you can get more out of your shopping trips.

3. Put cash back apps and browser extensions to use

Another way to earn rewards while shopping is using cash back apps and browser extensions. They require little extra work to use. How do these programs work? When you see available offers, you must activate them to earn cash back or other rewards on eligible purchases with participating retailers.

Three ways to save money on your purchases

In addition to earning rewards, you may be able to save money as you shop. Here are three ways to get a discount the next time you head to the store or shop online.

Coupon apps: Don’t forget to use coupon apps when shopping online. These apps and browser extensions help you quickly find active promo and discount codes from your favorite retailers. Promo codes can help you spend less during the checkout process.Credit card offers: Many credit cards make money-saving offers available to users in their mobile apps. When you activate offers from participating retailers and make eligible purchases, you can earn cash back in the form of a credit card statement credit.Loyalty program coupons: Some brands offer coupons through their loyalty programs. Many grocery stores do this and make them available in their mobile apps. You can get discounts at the checkout line by activating these offers and making eligible purchases.

Most of us have to do at least some shopping regularly, but it’s possible to earn rewards and get discounts while you spend money at your favorite stores. Every little bit of extra cash and every freebie earned can make a difference and improve your personal finance situation. Keep strategies like these in mind the next time you go shopping.

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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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U.S. healthcare can cost an arm and a leg. 

You’re fighting a serious medical ailment or working to recover from an injury, only to find a stack of medical bills waiting for you at home. Knowing that there’s not enough money in your bank account to pay the medical bills, you worry that you may become one of the million or so U.S. adults who claim bankruptcy every year.

It doesn’t help to know that medical bankruptcy is nearly unheard of outside of the U.S. Other than China, every other developed country in the world has a single-payer healthcare system. Medical costs for residents of those countries are financed by taxes rather than premium-paid insurance. There are no out-of-pocket costs for medical care and no need to declare bankruptcy due to medical care.

But here you are, faced with medical debt. Fortunately, medical debt in the U.S. is negotiable. It can be lowered or even wiped out entirely. Here are the steps you’ll need to take to whittle away at those bills.

Familiarize yourself with the debt

One of the least enjoyable things you’ll ever do is to pore over an itemized bill for your medical care. If you’ve received services from several medical providers, ask for an itemized statement from each.

You’re looking for billing errors. For example, a statement may list another patient’s name, incorrect insurance information, or incorrect procedure codes. You may also see two charges for the same procedure. Circle anything that looks “off.”

Note: You may not feel physically or emotionally ready to deal with medical bills. If you have someone in your life who can help you, ask them to look for errors and to circle anything that seems odd to them.

Familiarizing yourself with medical bills is not meant to be a practice in torture. Rather, knowing how much you owe is the foundation for coming up with an alternative payment plan.

Determine your bottom line

Before calling a hospital or medical provider, sit down with your budget and determine how much you can afford to pay. For example, some medical providers will settle for a lower amount if you’re willing to make an upfront lump-sum payment.

If you can’t afford an upfront payment, decide whether you can afford to make a monthly payment for a fixed period of time. For example, you may suggest making a $200 payment each month for four years.

If you absolutely cannot afford to pay the debt, you’ll want to share that information with the medical provider.

Negotiating

This is where you’re going to reach out to the hospital or medical provider. Stay calm, remain polite, and never underestimate the power of empathy. You’ll be dealing with real people in the billing department, folks who know how tough it can be to cover medical costs. Lay your situation out for them, and request their assistance.

If you discovered any mistakes in billing, now is a good time to review those errors with the billing department and ask that they be removed from the total due.Find out if you’re eligible for Medicaid. The majority of states offer three months of retroactive coverage for those who qualify for Medicaid but have not applied. How well this works for you will depend upon where you live. For example, state legislatures in a handful of states — like Florida, Georgia, Indiana, Iowa, Oklahoma, Tennessee, and Utah — have eliminated the retroactive aspect of Medicaid, except for a select portion of the population.Ask about any financial assistance programs offered to low-income patients. There are federal requirements for nonprofit hospitals to provide this assistance.Ask about the cash price for your procedures or stay. The cash price is almost always lower than the price charged to insurance companies.If you have the money to make a lump-sum payment, now would be a good time to find out if doing so will lower the bill.If you can’t make a lump-sum payment but can manage monthly payments for a fixed term, ask that the billing department set you up on a payment plan. Aim to pay zero interest, but if that’s not possible, ask for the lowest possible interest rate.Billing departments are accustomed to negotiating, and most are good about walking patients through their options. However, if the person you’re speaking with is rude, seems disinterested, or asks about things like how much you have in your savings account, escalate the situation by asking to speak with their supervisor. You may end up telling your story several times, but it pays to work with someone who can help.You also have the option of turning to a patient advocacy organization. For example, you can contact the Patient Advocate Foundation at PatientAdvocate.org or your state or local consumer protection agency at USA.gov/State-Consumer.

As of 2023, medical debt is a reality for millions of Americans. Until the day we can find a better way to cover the cost of medical care, we’ll have to depend on a compassionate person on the other end of the phone line to help us erase the debt.

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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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