Money Management

You may want to add these to your shopping list. 

For many people, an annual Costco membership more than pays for itself. That’s because the warehouse club giant offers great deals on a host of products year-round. And if you do a lot of shopping there, you might rack up a much lower credit card tab than you would at supermarkets and big-box stores.

Meanwhile, Costco also offers limited-time deals on top of its already low prices. Here are some worth checking out this month.

1. $250 off Lenovo Flex 16-inch FHD Touchscreen 2-in-1 Laptop

Maybe you’ve had the same laptop for several years and it’s starting to lose steam. Or maybe you’re starting a small business and need a new laptop to do your work. Either way, now’s a great time to score $250 off of this Lenovo model. It comes with an integrated webcam, a backlit keyboard, and a two-year warranty.

2. $100 off SafeRacks 4-foot by 8-foot Overhead Garage Storage Rack

Since we’re still deep in the throes of winter, now’s a good time to tackle indoor home organization projects — before spring arrives and you need to dive into things like gardening. Costco is selling this storage system at a great price this month. It has a 600-pound weight capacity, and its height can be adjusted to accommodate your space and belongings. All told, it adds up to 120 cubic feet of storage.

3. $700 off of Samsung 30 cu. ft. Bespoke 3-Door French Door Refrigerator with AutoFill Water Pitcher

Need a refrigerator upgrade? Now’s a good time to check out this model being offered at a deep discount by Costco. Not only does Costco’s offer include free delivery and installation, but you’ll also get a three-year warranty. Plus, you’ll have the option to have your old fridge hauled away at no charge.

4. $5.30 off Bounty Advanced Paper Towels (12-count)

If you have a messy household that tends to see its share of spills, then you need a tough paper towel like Bounty to tackle the cleanup. Right now, Costco is offering a nice discount on a 12-pack of Bounty. You may want to consider stocking up on two packs if you go through paper towels a lot.

5. $8 off Starbucks K-Cups (72 count)

If one of your New Year’s resolutions is to grow your savings account balance, then making your own coffee at home rather than buying it daily at a coffee shop could help you achieve it. To that end, Costco has a great discount on Starbucks K-Cups. Buy a bunch, and you can enjoy the same great coffee you’re used to at a fraction of the cost of buying it at a Starbucks location. And you may even find that you’re able to save time on the way to work by not having to wait in long lines at the Starbucks drive-thru.

These are just a few of the excellent deals you might come across when you shop at Costco this month. It pays to browse online or walk through your local warehouse club store to see what other products are heavily discounted in February.

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 expert loves 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 expert even uses 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 and Starbucks. The Motley Fool recommends the following options: short April 2023 $100 calls on Starbucks. The Motley Fool has a disclosure policy.

 Read More 

When it’s right, it’s right. 

If you’re anything like me, you’ve always heard that homeownership is part of the American Dream. It’s how families build generational wealth. Owning a home plants you firmly in a community. And for some, homeownership is a status symbol.

The pressure to pull money from your savings account and buy a home can be intense. Unfortunately, according to an Anytime Estimate American Home Buyer Survey conducted in July 2022, nearly 3 out of 4 (72%) respondents who purchased a home in 2021 or 2022 have regrets about the purchase.

So, how do you know when it’s the right time to buy? Here, Suze Orman helps answer that question by pointing out when it’s the wrong time to buy a house.

When credit card debt and down payment are out of whack

According to Orman, if you’re carrying credit card debt and have yet to save up enough money to cover a 10% to 20% down payment, you’re not ready to buy a home.

Orman is right. As someone whose greatest financial regret is buying a home before we were ready, I know that it can take years to get caught up. If you’re still lugging around high-interest credit card debt and don’t have much of a down payment saved, you have two things to accomplish before contacting a real estate agent:

Focus on paying off your credit cards. Once that high-interest debt is gone, you can deposit the money you save each month directly into a house fund.Aim for a down payment of 20%. Yes, you can finance a home with a smaller down payment, but you’ll end up paying private mortgage insurance (PMI). PMI typically costs 0.1% to 2% of your loan amount per year.

If you don’t plan on hanging around

Orman says that if you can see yourself moving within five to seven years, you may want to hold off on buying. Again, this is solid advice. Due to job transfers, my husband and I have purchased 10 homes over the years and sold nine.

The homes we lived in the longest were the only ones to net us a profit. Sometimes we nearly broke even, and on one occasion, we had to bring money to the closing table because, after expenses, we didn’t clear enough to pay off the mortgage.

As a home buyer, you pay closing costs. However, as a seller, you’re responsible for real estate fees of 6% (3% to the buyer’s agent and 3% to the seller’s agent). You must also cover closing costs and moving expenses. By the time you add up your expenses, they can eat up to 10% of the sales price of your home.

If you don’t plan to stay around long enough for the home to appreciate, hold on until you land somewhere you want to stay.

When the numbers don’t make sense

Let’s say you’re renting a great house or condo and are fortunate enough to be doing well financially. You have some money left over each month and are able to invest in things like your children’s education and retirement.

There’s nothing saying that you have to change anything. Use a housing costs calculator to crunch the numbers. Owning a home can be expensive, and it’s possible that renting simply makes more sense right now.

If the responsibility does not appeal to you

The average American homeowner spends more than $3,000 per year maintaining their home. But it’s more than money that matters. As a homeowner, there’s a constant stream of issues that need addressing. If it’s not a leaky hot water heater, it’s a missing roof shingle. If the idea of spending weekends fixing problems around the house does not appeal to you, it’s okay to wait.

If I could add one thing to Orman’s list, it would be this: It’s not the right time to buy a home if there’s something you would rather do with the money. Let’s say you long to go back to school to become a geologist or dentist. Or perhaps you want to travel extensively, teach abroad, or live a more nomadic life. Do not go to the trouble and expense of buying a home if it means putting the kibosh on your dreams.

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 

Don’t fall into the same trap. 

If you’ve ever had to carry a balance forward on one of your credit cards, you’re not alone. It’s common for consumers to rack up some credit card debt when emergencies strike and their savings account can’t cover those unplanned bills. Or, you might accrue a credit card balance due to something like having to attend a destination wedding that’s beyond your budget but you feel obliged to attend.

Although carrying a balance on a credit card may be unavoidable in certain situations, it’s best to steer clear of that scenario to the greatest extent possible. Any time you don’t pay off a credit card balance in full, you accrue interest by virtue of carrying it forward. Plus, having a credit card balance could actually hurt your credit score — even though some people might think otherwise.

A scary myth you shouldn’t fall for

In a recent survey by Capital One, 37% of respondents said that carrying a balance on a credit card each month is a good way to increase your credit score. But that’s really not true at all.

Here’s what is true. If you charge expenses on a credit card every month but then pay off your balance on time and in full consistently, that positive payment activity could help your credit score increase. But carrying a credit card balance on purpose to boost your credit score is not something you should do by any means. And the main reason, aside from the fact that it can cost you in interest, is that too high a credit card balance could actually damage your credit score.

One factor that goes into calculating your credit score is your utilization ratio. This speaks to the amount of available revolving credit you’re using at once. Once that ratio climbs above 30%, your credit score could take a pretty significant beating. So it’s best to avoid a credit card balance if you have the money to pay your bills in full.

As an example, let’s say you have a spending limit of $10,000 across your various credit cards. Once you carry a balance above $3,000, your credit score could potentially incur damage.

Now, will a smaller balance — say, owing $1,000 in this scenario — have the same impact? No. A balance that small relative to your total spending limit may not cause much, or any, damage to your credit score. But again, you’ll be racking up interest on that $1,000 balance. So it’s best to not carry it forward if you can avoid doing so.

A better way to build credit

If your goal is to boost your credit score, you can do so by paying all of your bills on time and in full every month, and by hanging onto credit cards you’ve had open a long time instead of closing out accounts frequently. Not applying for too many new credit cards within a short period of time could also help your credit score improve or stay strong, as could keeping your credit card balance to a minimum.

If you have to carry a credit card balance because you’re in a pinch and don’t have the money to cover an unplanned bill, so it goes. But don’t intentionally not pay your credit card bills in full because you think it’s good for your credit score.

Top credit card wipes out interest until 2024

If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.

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

 Read More 

Never make key life decisions while standing in The Gap. 

When we check out from a store, we’re often in a uniquely vulnerable position. We’re already mentally tallying the total, perhaps second-guessing our purchases, and thinking about the credit card payments to come.

And it’s at that moment that we get the spiel for the store’s credit card. “You could get a jillion percent off your purchase if you sign up now!”

Well, we think, I would certainly like to get a discount. But because we’re now put on the spot, our increasingly impatient fellows stacked up behind us, we don’t stop to do the math on what that discount actually works out to be in real terms.

Or whether that likely meager discount is worth the consequences of opening a new card.

Store cards are rarely worth it

The main reason to skip the application? Store credit cards aren’t great. A few store cards can be handy for certain shoppers, but on the whole, store cards simply don’t compare with regular rewards cards.

There are three main reasons to get a credit card: the rewards, the perks, or the financing. The majority of store credit cards miss the mark on all three.

1. Rewards

You want two things out of a rewards credit card: a sign-up bonus and purchase rewards. In the case of store cards, the sign-up bonus is usually some sort of discount on your first card purchase.

Unless you are making a very significant purchase, that discount is unlikely to save you as much as it may sound at first. For instance, a 20% discount on a $100 purchase is $20. You can easily find cash back credit cards with $150 to $300 sign-up bonuses. Why settle for $20?

And purchase rewards are similar. You can find rewards cards that offer competitive rewards rates for most types of purchases, including most of the brands for which you’d want a store card. In many cases, you can even earn more with another card than you could with the store’s own offering.

2. Perks

The perks and benefits you get can be a big driver to get a card. That’s what drives most people to seek premium travel rewards cards, after all.

But store cards are not travel rewards cards. However long the list of perks rattled off by the cashier may be, the perks you actually get with most store cards are minimal at best.

Take free shipping. This is a common cardholder perk — and one offered to nearly everyone else provided they meet some negligible minimum order amount. How often are you paying for shipping now? If the answer is “never,” it’s not much of a perk.

3. Financing

The words, “No-Interest Financing” can sound magical when you’re already wondering how you’ll manage your purchase. No payments until I’ve nearly forgotten I made the purchase? Sounds great!

Until you read the fine print. Unlike the 0% APR intro offers from regular credit cards, store card financing deals typically use deferred interest. With deferred interest, you have to pay off every cent of your purchase before the end of the financing period. If you don’t, you’ll be stuck paying interest on the entire amount.

Credit card applications have consequences

Even if you know store cards aren’t the greatest long term, it can still be tempting to sign up just for the discount, especially if you’re making a large purchase. But unless that discount comes out to a very competitive bonus, you still may want to think twice.

You see, signing up for a new store card is exactly the same as getting any other credit card, so far as your credit report is concerned. That means you’ll get hit with a hard credit inquiry. Your average account age will dip. You’ll even lose a Chase 5/24 slot.

So the real question becomes, is all of that worth it to you?

Checkout isn’t the time to decide

No matter how you feel about a particular store credit card, one thing is absolutely certain: Standing at the checkout counter is not the time or place to make an important financial decision.

If the cashier’s spiel catches your attention, make a note of the card in your phone so you can check it out later. Take the time to browse the website, read the terms and conditions, and evaluate the contents of the Schumer box. Thus informed, you can make a smarter decision that you’re less likely to regret once the rush of the deal wears off.

Top credit card wipes out interest until 2024

If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

 Read More 

Banks just aren’t that into new customers right now. 

There was a time when rising interest rates had a silver lining. As the rate for products like auto loans and home mortgages crept up, so did the APY banks paid on savings accounts. Today, people who are accustomed to looking for that silver lining wonder why savings rates remain so low. As of this writing, the average rate on a 30-year fixed-rate mortgage is 6.40%, while the national average APY on savings accounts is a measly 0.24%.

The answer boils down to one thing.

Swimming in cash

When a bank, credit union, or any other financial institution offers an attractive interest rate, it’s designed to bring in new customers. With those customers come new deposits. For the past two years, banks have not needed new deposits.

In the early stages of the COVID-19 crisis, banks feared huge losses. In response, they built up large cushions of cash reserves. By early 2021, when it was clear those losses had not materialized, they moved to shrink their reserves. Suddenly, money they had earmarked as emergency funds flooded back into bank coffers.

In short, banks were in the position of having too much cash on hand. Flush, they have not needed new customers or new deposits. While the situation will surely change at some point, it does not appear that we’re there yet.

Until banks once again need to attract new customers, the interest rate you’ll earn on your savings account is unlikely to increase by much.

The online option

When it comes to getting the best bang for your buck, it pays to check out online banks. Because online banks don’t have the same overhead costs as traditional banks (like maintaining physical locations), they are better positioned to pay higher interest rates on deposit accounts and to charge lower interest rates on loans. Here are a few of the advantages of online banks:

Many online banks pay 1% to 2% more than traditional banks on savings accounts.Online banks typically charge low or no maintenance fees and carry no minimum deposit requirement.Some online banks offer instant access to your cash through partner ATMs.The FDIC insures online banks the same way it insures traditional brick-and-mortar banks. That’s to say, each account category is covered for up to $250,000 per depositor, per insured bank.

Online banks aren’t the right fit for everyone. Still, there’s no rule saying you must keep all of your accounts under one roof. For example, you’re free to have a checking account through a traditional bank and a savings account with an online bank. If you link the two accounts, you can easily transfer money back and forth as needed.

Some banks stand out

Although the average national APY on savings accounts is only 0.24%, some banks have managed to find a way to offer an attractive APY. They may be the minority, but these banks are worth checking out if you’re looking to earn more on cash stashed away for a rainy day.

Research shows that by the time we go to bed at night, we’ve made an average of 35,000 decisions, both large and small. Fortunately, when it comes to deciding where you’ll earn the best rate on your savings account, the decision is practically made for you.

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

Many 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 more than 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.The Motley Fool has a disclosure policy.

 Read More 

What would you do with an extra $30,000 in your bank account? 

Imagine that you’re out running errands. Suddenly, you remember that you owe the little girl next door $40 for Girl Scout cookies. Your mind is laser focused on Thin Mints and Samoas, as you drive to the nearest ATM. It’s not until the ATM spits out a receipt that you realize that you have an extra $30,000 in your checking account.

What would you do?

Do not spend that money

Worldwide, banks handle billions of transactions every day — successfully. However, there is always the chance that human error will result in a mistake made in your favor. If there’s ever a deposit to your account that you don’t recognize, don’t spend it.

A man named Mike

Several years ago, NBC News interviewed a man we’ll call Mike. Mike had just sold his Brooklyn, New York apartment and went into his bank to deposit the proceeds check. Rather than type in the actual deposit amount, the visibly tired teller deposited $700,000 into Mike’s account.

Mike describes what happened next. He said it was as though a million things ran through his mind in a split second. “Can I keep it, can I spend it, can I invest it and give it back before anyone notices?” Mike recalls thinking.

The answer is no. Spending money that is accidentally deposited into your bank account is illegal and can land you in seriously hot water.

A Georgia teen

A Georgia teenager was unfortunate enough to learn just how hot the water can be.

It all began in March 2014, when a 70-year old account holder sold some land, and deposited more than $30,000 in his checking account. It just so happens that the 70-year-old shares a name with the teenager. Rather than putting the check into the older man’s account, a teller incorrectly deposited it into the teen’s account.

A woman who raised the teen described how excited he was to find an extra $30,000 in his account. Evidently, the boy and his former caretaker adhere to the rule, “finders keepers,” and soon, nearly all the money had been spent. The teen purchased a slew of items for himself, including a BMW.

The young man was charged with felony theft for spending money that was not his. He was convicted and sentenced to 10 years on probation and ordered to repay the money. While it may seem as though he got off easy with probation, the teen will have a felony conviction permanently on his record.

What you can expect

Banks run regular audits of customer accounts. There is no doubt the bank will find the mistake and reverse the transaction. If the money has been spent, you can expect them to contact the police.

Claiming that you didn’t notice the error does not get you off the hook. If the funds are spent, you’re the one held responsible.

What to do if your bank account suddenly balloons

Whether the error leaves you $300, $3,000, or even $30,000 richer, the first thing to do is contact your bank and let them know. It may be painful, but that simple call will keep you out of trouble.

Once the bank has been made aware, check your account each day to ensure that the transaction is reversed. In the meantime, pretend the money is not there.

In short, treat the “found” money as you would treat a wallet that falls out of your grandfather’s pocket. Pick it up and hand it back.

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

Many 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 more than 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.The Motley Fool has a disclosure policy.

 Read More