Money Management

If you order from the right online retailer, your order might qualify for free shipping. 

It can feel like a win when you make an online purchase that qualifies for free shipping. Many online shoppers become Amazon Prime members to take advantage of free shipping on their orders. But did you know that lots of retailers offer free shipping if you spend enough money? While Amazon is convenient, you may qualify for free shipping while shopping at one of your favorite online retailers. Find out which retailers offer free shipping when you spend over $35.

These 8 retailers offer free shipping on orders of $35 or more

Target: Target promises free shipping to customers who spend at least $35 when shopping at Target.com.Walmart: Shipping is free when you spend at least $35 on eligible items at Walmart.com. Walmart+ members can score free shipping with no order minimum. It costs $12.95 per month or $98 per year to become a Walmart+ member.GameStop: Are you buying something for your favorite gamer? GameStop is another retailer that promises free shipping. You won’t be charged shipping fees when you spend at least $35.Ulta: If you like to stock up on beauty supplies at Ulta, you’ll love that it’s easy to qualify for free shipping. If you spend at least $35, you’ll get free standard shipping.Wayfair: Wayfair offers free shipping on qualifying orders. Your order will ship free when you spend at least $35 on eligible items. Some items may not qualify for free shipping, but Wayfair marks products that are eligible for free shipping on orders of $35 or more.Best Buy: If you’ve been meaning to order from Best Buy, you’ll be happy to know that the electronics store also offers free shipping on qualifying orders. You’ll be eligible for free, standard shipping when you spend at least $35 on qualifying items.Petco: Petco also offers free shipping on qualifying orders of $35 or more. If you like to spoil your furry friends, hitting the order minimum is easy.Etsy: Participating shops can offer free shipping to U.S. customers who spend at least $35. You must spend at least $35 with one shop, and not all shops participate.

Bundle up your orders to avoid shipping fees

Do you want free shipping but you can’t meet the order minimum easily? It can be advantageous to bundle your orders so it’s easier to meet the order minimum. If you’re finding it hard to spend at least $35 to qualify for free shipping and you don’t need your items urgently, wait to make a larger order later.

Also, before checking out, don’t forget to use coupon apps to see if you can get a discount on your order. Many retailers accept online promo codes.

Don’t overspend to qualify for free shipping

Free shipping can help you keep more money in your checking account. But make sure you’re thinking through your online shopping decisions before you check out. You want to consider your financial situation and review your budget first. If you don’t, you could risk overspending or falling into expensive credit card debt.

You’re not getting a good deal if you’re adding items you don’t need to your cart to hit the order minimum for free shipping. But if you need what you’re buying and happen to qualify for free shipping, you can consider it a win for your wallet. For additional ways to save money, check out these personal finance resources.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Best Buy, Etsy, Target, and Walmart. The Motley Fool has a disclosure policy.

 Read More 

Home prices are still up, and you might struggle to buy a home today. 

Over the past number of months, home price gains have steadily declined. But that doesn’t mean homes have become inexpensive. In fact, home prices are still quite elevated on a national level.

Granted, sellers aren’t getting away with the same sky-high prices they did in 2021 and the first half of 2022. But they’re still profiting nicely.

In fact, the median price for an existing home (as opposed to new construction) sold in December was $366,900, according to the National Association of Realtors (NAR). That’s an increase of 2.3% from one year prior.

Now that increase may not seem all that substantial. But let’s remember that a year ago, mortgage rates were sitting at much lower levels than where they’re at today. So right now, a $366,900 home may not be affordable by virtue of higher borrowing rates alone. Ultimately, though, you’ll need to crunch the numbers to see what you can afford.

Is a $366,900 home within reach?

Let’s get one thing out of the way. The median home sale price in December may have been $366,900, but that’s not necessarily what homes are selling for in the neighborhood or city you wish to live in. Maybe the typical home in your area only costs $210,000. Or maybe it costs three times as much as $366,900.

Either way, there’s a simple formula you can use to determine whether a home is affordable to you, regardless of its cost. All you need to do is make sure your housing costs associated with that home do not exceed 30% of your take-home pay.

So, let’s say you bring home $4,000 a month in your paychecks after taxes and other deductions, like retirement plan contributions. That means you’re free to spend $1,200 a month on housing. If you can manage to keep your housing costs within that limit, you should be in a pretty strong position to buy.

To be clear, though, when we talk about housing costs in this context, we’re not just talking about a mortgage payment. You should also include preset, predictable costs like homeowners insurance, property taxes, and HOA fees, if they apply to you, in that calculation.

So, let’s say you’re looking at buying a home that will leave you with a monthly mortgage payment of $1,000. Unless you’re confident you can keep your remaining costs to $200 or less, that home is probably out of reach financially right now.

Of course, there are some exceptions to the rule. If you’re buying a home in a city that allows you to not have a car, well, that’s a huge source of savings. So you may be okay to spend more like 35% to 40% of your income on housing in that scenario, since you’re eliminating another really large expense. But otherwise, sticking to the 30% rule is probably your best bet if you want to avoid a scenario where you become house poor and fall behind on other bills.

Will home prices come down in 2023?

We really don’t know. As of December, there was only a 2.9-month supply of homes on the market, according to NAR. It normally takes a 4- to 6-month supply to fully meet buyer demand.

If inventory remains low, home prices are likely to stay elevated. So we’ll need to see if listings pick up over the next 12 months before we can make predictions about home prices.

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 

It’s your credit report, so make sure it correctly reflects your money management skills. 

Any time a lender or creditor requests a copy of your credit file from one of the big three credit bureaus — Equifax, TransUnion, or Experian — that single inquiry is referred to as a “hard pull.” While a single hard inquiry is unlikely to prevent you from taking out a loan or opening a credit card, it does ding your score a bit.

If you have too many hard inquiries on your credit report, a potential lender may grow concerned that you’re haphazardly trying to take out new lines of credit. In short, it makes them nervous about your ability to repay your obligation to them.

When you can have a hard inquiry removed

You have a legal right to request that a credit bureau remove hard inquiries from your report only when one of the following conditions applies:

You did not apply for credit through the company that pulled your report.You did not authorize the company to pull a credit report.

If you did not apply for credit or did not authorize a company to pull your credit report, dispute the hard inquiry through the credit bureau in question. You can dispute any errors you find directly through the bureau’s website or by mailing them a dispute letter.

Feel free to follow the steps laid out for disputing credit report mistakes.

When you cannot have a hard inquiry removed

Let’s say you applied for an auto loan. As you applied for the loan, you gave the creditor written permission to pull a copy of your credit report. If you give a creditor the right to check your credit, you cannot remove the hard inquiry from your report, even if your loan application was denied.

When you give a lender permission to check your credit, you do so knowing that your credit report will reflect that fact.

The good news is that hard inquiries only remain on your credit report for two years and typically only affect your credit score for one year.

The importance of monitoring your credit reports

People are sometimes surprised to learn that their Equifax, TransUnion, and Experian credit reports look very different. For example, one may show that you’ve paid your auto loan off in full, while another may indicate that you still owe money. They can’t both be right.

There’s nothing fun about going through a credit report with a fine-tooth comb looking for mistakes, but it’s important if you want to maintain a high credit score.

Your rights

Federal law allows you to do two things:

Receive a free copy of your credit report. These are being made available weekly through 2023. It’s easy to order your credit report from each of the three major credit bureaus through a site like AnnualCreditReport.com.Dispute any inaccurate information on your credit reports. If you find a mistake and dispute it, the credit bureau has 30 to 45 days from the day you file the dispute to investigate your claim. Once it’s investigated, they have five days to notify you of their findings. If they are unable to verify the point you disputed, it must be removed from your credit report.

Mistakes add up

Your credit report paints a picture for potential lenders, letting them know how you’ve managed your finances in the past. Any mistakes you find, no matter how minor, can add up to an inaccurate picture of your credit history. Removing even the smallest mistakes is a quick way to boost your credit score.

To be clear, having too many hard inquiries on your credit does matter. However, if you make your payments on time each month and carry less debt than you’re eligible for, your overall credit score will be on the right track.

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.The Motley Fool has a disclosure policy.

 Read More 

There’s a reason consumer spending has remained strong despite inflation. 

For much of 2022, economists made a point to warn consumers about a potential 2023 recession. Last year, consumers were told — repeatedly — to boost their savings and pay off debt ahead of a potential economic downturn.

But so far, we don’t seem to be inching closer to a broad economic decline. And while consumer spending has declined in recent months, it’s only done so to a modest degree, despite inflation. Leftover stimulus funds, however, could be the reason why.

Consumers might still have money in the bank

In December, consumer spending fell for the second month in a row. It dropped 0.2% compared to November, according to Commerce Department data as reported by Reuters. And in November, consumer spending dropped 0.1% compared to October.

Given the way inflation surged last year, these dips are pretty modest. And even if this trend continues, it likely won’t be enough to fuel a major recession in 2023.

But we could see consumer spending start to decline to more of an extreme this year for one very big reason, and it’s not inflation. Rather, consumer spending might drop once leftover stimulus funds from 2021 run out.

In 2021, lawmakers were extremely generous with their stimulus policies. They approved a round of $1,400 checks that started hitting recipients’ bank accounts in March that year. They also gave the Child Tax Credit a major boost, raising its maximum value from $2,000 per child to $3,000 per child aged 6 to 17 and $3,600 per child under age 6. Plus, the entire Child Tax Credit became fully refundable, so recipients with no tax liability could claim its value in full.

Some people needed the stimulus funds they received in 2021 to cover their near-term expenses as inflation levels began to rise. But a lot of people who received a payday from the government that year didn’t need the money right away. So instead, they saved it. And in 2022, they had the option to keep on spending even as living costs soared.

But at this point, a lot of that stimulus money is apt to be running out. So while leftover stimulus funds may have helped us stave off a recession until now, things do have the potential to take a turn for the worse once that lifeline dries up.

It pays to prepare for a recession

A 2023 recession is far from a sure thing. But it’s a good idea to prepare for one by boosting savings as much as possible. A recession could lead to widespread layoffs, and one of the best ways to cope with the loss of a job is to have cash reserves to fall back on.

Granted, if a recession strikes and the greater economic situation gets dire enough, lawmakers might be driven to issue a new round of stimulus funding. But in a more mild or moderate recession, that’s less likely to happen. So rather than fall back on more stimulus aid, consumers should gear up for a recession individually by growing their savings.

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.The Motley Fool has a disclosure policy.

 Read More 

Prepare now so you’re not thrown later. 

The benefit of keeping your money in a savings account instead of a jar next to your bed is getting to earn interest on it (not to mention minimizing your risk of losing it). For many years, banks were paying such little interest it was almost not even worth calculating. But last year, interest rates for savings accounts and certificates of deposit (CDs) started to soar. And while that’s a good thing in theory, it could result in a tax headache this year.

Don’t be shocked if your tax liability is higher

The IRS gets a piece of all of the income you earn. Make money at a salaried job or side hustle? The IRS gets a cut. Earn money on investments in a brokerage account? The IRS will charge you capital gains tax on your profits.

Similarly, any interest you earn in a savings account or CD is considered income. And because a lot of people earned more interest last year than they did in years back, a lot of people will owe the IRS more money on that income for 2022.

As such, don’t be shocked if you notice a higher tax liability due to having made more money on your savings. You should also know that interest you earn in a savings account or from a CD is taxed as ordinary income — meaning, at the same rate as your regular paycheck. So that’s another reason why a higher amount of interest could mean a higher tax bill than you’re used to.

Should you avoid keeping money in savings because of the tax implications?

Any money you have on hand for emergencies or near-term goals, like buying a home or taking a dream vacation, should stay in your savings account (or, in some cases, a CD). That way, you can earn interest on it, and you may not be as tempted to dip into it for less important things.

The fact that you have to pay taxes on interest income may be annoying. But that’s not a good reason to avoid keeping your money in a savings account or CD.

Think about it this way. If you earn $120,000 a year, you’re going to pay more taxes than someone earning $20,000. But is the fact that your salary is $100,000 higher a bad thing? No.

Similarly, it’s a good thing to earn more interest on your savings than you did in the past. After all, that’s basically like getting free money for taking on no risk (assuming you put your cash in an FDIC-insured bank and your deposit doesn’t exceed $250,000). But it’s also important to understand the tax implications.

You may end up with a smaller tax refund this year due to having earned more money on your savings. You may even end up having to write the IRS a small check, depending on your complete tax picture. But don’t pull your money out of the bank because of that.

Our picks for best tax software

Our independent analysts pored over the perks and user reviews for the most popular tax provider services to land on the best-in-class picks to file your taxes. Get started by reviewing our list of the best tax software.

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 go to Costco again without reading this. 

Costco is well-known for offering high-quality Kirkland products, as well as for providing both store-brand and name-brand items at a great price. That’s why the store has so many devoted fans.

But if you’re looking to keep more money in your bank account by shopping for items at Costco, it’s important not to make a big error that many fall victim to at warehouse clubs. This mistake is so common, and so easy to make, that even finance expert Dave Ramsey has admitted it’s happened to him.

This Costco trap has even caused Dave Ramsey to overspend

Ramsey is known for being a major advocate of budgeting and being careful about what you spend money on. That’s why it may come as a surprise to find he’s made a Costco mistake that leads to wasted money.

“To this day, if I’m not careful, I’m still bad about buying things I don’t need — or too much of the things I do need — in warehouse clubs,” Ramsey said. The finance guru explained that, despite what you might think, he’s a “spender by nature,” and warehouse clubs tend to bring that tendency out in him.

There are good reasons why Costco (and other warehouse stores) tend to have this effect.

For one thing, as Ramsey explains, many items in these stores come across as bargains. If you feel like you’re getting a “deal” on something, you may be really tempted to buy it — even if it isn’t actually something you really need. Unfortunately, spending any money on an item that wasn’t really necessary isn’t actually a bargain since you’re out the cash for something you wouldn’t have ordinarily purchased.

Another issue is that Costco often sells items in large quantities. While you pay a reduced price compared to buying smaller versions of the item, this only saves you money if you actually use everything up before it goes bad. If you paid more to buy a larger amount of something and ended up tossing a portion of it in the trash because it spoiled, you actually wasted money rather than saving it.

How to avoid falling victim to this Costco mistake

If you find yourself falling into the same trap Ramsey admitted to falling victim to, there are ways you can fix this problem so your Costco membership actually helps your finances instead of hurting them.

Shopping with a list is one of the best things you can do. If you don’t deviate from your pre-planned purchases, you won’t end up making impulse buys you regret just because something catches your eye on the Costco shelves.

You should also keep track of your consumption before you buy in bulk. If you notice you go through four containers of cereal in a six-month period, for example, don’t buy a 12-pack of the cereal that expires in half-a-year or you’ll end up throwing out half that amount.

By making sure you only purchase what you really need, you can avoid wasting money on your Costco shopping trips — and making the mistake Dave Ramsey is guilty of making.

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.Christy Bieber 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