Money Management

Here’s how to save more money shopping online. 

A lot of people do their shopping on Amazon. The popular online retailer makes buying household essentials, clothes, electronics, books, toiletries, and anything else you might need convenient. But if you’re not careful, you may spend more than necessary when filling your Amazon cart. It’s a good idea to consider using a price comparison tool, so you don’t overpay. Keep reading to find out how to get the best price before you check out.

Comparing prices could help you get a better deal

If you’re not researching prices before you shop, you’re probably spending more money than necessary. Sometimes you may need something quickly and won’t have time to shop around, and that’s okay. But if you do have a few seconds to compare prices, you may be able to score a better deal so you can keep more money in your checking account. If you can save some money while still getting what you need, why spend more money than necessary?

Give Capital One Shopping a try

If you’re a regular Amazon shopper, you will want to check out Capital One Shopping. This browser extension and mobile app could help you get a better deal. While shopping on Amazon, this tool will compare prices at other retailers and alert you if you can save money by purchasing the same product elsewhere.

In addition to comparing product prices, Capital One Shopping factors in shipping costs so you can make a more informed purchasing decision and review shipping timelines before you buy. Amazon has some fantastic deals, but you may find that Amazon isn’t always the most affordable place to get what you need.

Other ways to save money with this tool

The good news is that Capital One Shopping isn’t only for Amazon shoppers. The price comparison feature works for many other popular retailers, too. You can search for specific products and be shown current prices at different retailers to decide where to shop.

Capital One Shopping has other features to help you save. One that you won’t want to miss is the built-in coupons. Capital One Shopping will alert you when retailers have coupon or promo codes available that could help you get an even bigger discount. It will automatically apply the best coupon at checkout to maximize your savings.

Another feature worth mentioning is shopping credits. When you shop at participating retailers, you can earn shopping credits. When visiting a participating retailer’s website, you must activate the shopping credit offer to earn credits. Then all you have to do is shop like usual. When you’ve earned enough credits, you can redeem them for gift cards from popular retailers. Using these gift cards for future purchases can allow you to save even more money when you shop.

Don’t miss opportunities to save in your daily life

Life seems to get increasingly expensive each year, and many of us are on tight budgets. Make sure you utilize all available tools and resources to maximize your savings. Cash back apps, coupon apps, and similar shopping browser extensions can help you waste less money. For additional ways to save, check out our personal finance resources.

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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.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. The Motley Fool has a disclosure policy.

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You don’t have to be a victim. 

We live in a digital age, and while that’s a good thing from a convenience standpoint, it does open the door to more opportunities for financial fraud. Just think about the number of companies that have reported major data breaches in recent years. A single incident could leave thousands of consumers vulnerable to fraud and identity theft. And unfortunately, there’s not much you can do individually to prevent a situation like that.

But that doesn’t mean you have to just sit back and wait to become a fraud victim. There are a number of steps you can take to protect yourself financially. Here are a few to put into practice this year.

1. Don’t respond to unsolicited communication

As a consumer and functional person, you might be reachable by email, text message, and phone on a perpetual basis. But one general rule to follow if you want to avoid falling victim to scams is to never respond to unsolicited communication with regard to a so-called financial matter.

You might, for example, get a phone call from someone claiming to be a representative of your bank asking you to verify your online banking password so as to not hold up your direct deposit. Give out that password, and you’ve just invited a criminal to empty out your savings account.

Similarly, you might get an email from your credit card company asking you to click a link to get your credit limit increased. Be careful — it may look legit when it isn’t.

A better bet in this scenario is to call the number on the back of your credit card, speak to a representative, and ask about getting a higher spending limit. And in the previous example, what you’d want to do is hang up and then call your bank back directly to make sure there’s no problem with your account or scheduled deposits.

2. Shred all documents that contain personal data

If you’re still receiving statements from your bank or credit card company by mail, it’s important that you shed them rather than toss them out. If you don’t shred those documents, a criminal could get a hold of your financial data and do something nefarious with it.

3. Sign up for electronic communications

In this day and age, there’s no need to run the risk of having the information contained on different documents get into the wrong hands. Pretty much every bank, credit card company, and financial institution will allow you to sign up for electronic communications rather than receive documents in the mail. As long as you keep your various passwords secure, this is a much safer way to review your own financial data month after month.

Falling victim to a financial scam could have devastating consequences. A criminal could try to steal money from your bank account, run up charges on your credit card, or open new accounts in your name, which could ruin your credit if you don’t catch it in time.

Avoiding financial scams could spare you a world of stress. So while you can’t control massive data breaches, you can at least take some individual steps to safeguard your most sensitive information.

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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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As investors, we’re always learning. 

Graham Stephan is a real estate agent and investor, turned YouTube financial influencer. He’s known for sharing tips on everything from learning to budget to cryptocurrency. Here’s how he says he plans to invest for 2023.

Inspiration

Stephan makes no secret of the fact that he takes investment inspiration from the late David Swensen, a man who dramatically increased Yale University’s endowment fund by sticking with two core principles:

Don’t put all your eggs in one basket.The opportunity cost of not investing in stocks is a bigger risk than investing.

Based upon those principles, here’s how Stephan plans to allocate his investments this year:

35% equities35% real estate22% treasuries4% alternative assets3% Bitcoin and Ethereum

Asset allocation

Stephan says that when he was in his 20s he put all his money into real estate. He would save up enough money to buy a residential property, fix it up, and rent it out. Every penny he had was tied up in seven properties. In other words, all his eggs were in one basket.

“The risk with tying up your assets in one type of investment is that it can force your arm into liquidating when you are least prepared,” Stephan said.

You’ll notice that his current allocation is diversified. That way, if one sector bites the dust, other assets can carry the portfolio as a whole.

It’s all about asset allocation.

The big, scary stock market

Stephan understands that investing in stocks scares some people right now. After all, the market closed 19% down in 2022. The last time stocks tanked like this was 2008. However, he says it’s important to look at the big picture.

Here’s how he explains it: “When you look at stocks over a longer time horizon of 20-30 years, stocks have never lost money. The return on the S&P 500 has been positive over any 20-year rolling period, and the least it’s ever been was in 1948 at 4% — not much different from a Treasury bill. But most times, the stock market has had an average return of 7%-10%.

A fascinating statistic

Stephan says that it’s in the short term that holding stocks can be uncomfortable. However, he offers a fascinating set of statistics.

If you buy and sell within one year, you have a 73% chance of making money.If you wait and sell in the second year, there’s an 80% chance of making moneyIf you wait and sell in the fifth year, the odds raise to 90%If you sell in the 10th year, you have a 97% chance of making money.

It is with that mindset that Stephan invests and forgets about it until 2040.

Switching up how he invests in real estate

You’ll notice that Stephan has allocated 35% to invest in real estate. Instead of buying multi-family properties like he once did, he’s turning his attention to commercial real estate this year — space that a business might use for the next five to 20 years.

He’s attracted to the fact that commercial property prices have already dropped 13% from their peak. He also appreciates that tenants are responsible for paying taxes, insurance, and maintenance fees. As a residential landlord, he was responsible for everything. Investing in commercial real estate will allow him more time to focus on other projects.

Assets influenced by different factors

It’s not enough to invest in stocks and bonds, two assets heavily influenced by Federal Reserve rates. Stephan feels most comfortable investing in some assets unimpacted by those rates.

For example, Stephan invested in a Ford GT and Tesla Roadster. So far, the GT is up 30% since he purchased it, and the value of the Roadster has done better than his Tesla stock holdings.

That said, Stephan does not advise anyone to go all in on exotic cars or watches. He’s used less than 5% of his net worth on such investments.

Like all of us, Stephan will get some things wrong and others right as he continues to invest. What’s so appealing about his style is the way he adopts new strategies as he learns what works for him.

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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Tesla. The Motley Fool has a disclosure policy.

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Should you follow Ramsey’s lead and become a club member? 

Both Costco and Sam’s Club are warehouse clubs where you can make bulk buys at a discount. But you have to become a member in order to be eligible to shop at either one.

Finance expert Dave Ramsey has joined both of these popular clubs. In response to a letter from a reader asking about his opinion on wholesale clubs, Ramsey wrote, “My wife and I are members of Costco and Sam’s Club.”

Ramsey is well-known for his financial knowledge, and for being careful and purposeful about how he spends his money. The fact he’s chosen to pay a membership fee to Costco and Sam’s obviously suggests he believes this upfront cost is worth paying due to the membership benefits available.

But, should you follow his lead and sign up for yourself?

Does Costco or Sam’s membership make sense for you?

For most people, it doesn’t make a whole lot of sense to pay a membership fee for two warehouse clubs. You may decide you want to join Sam’s or you may decide you want to join Costco — and doing either one could be smart depending on your circumstances. But paying for both would likely be redundant as the discounts and savings you’d get from each club would overlap in many ways.

So, the big question is, would it be smart to join either one. And the answer to that is going to depend on how you shop and what you tend to shop for.

Both Costco and Sam’s Club sell large bulk items. You need to buy a lot of something in order to get a meaningful discount on it. This can be fine if you have a large family or a big household — or if you can join up with a group of others and split bulk purchases up among you. But if you are single or in a small household and you won’t be able to use up bulk buys before they go bad, then Costco and Sam’s probably aren’t right for you.

Both stores also have large grocery departments along with selling just about everything else you can imagine from clothing to TVs. If you tend to be a big consumer and you buy a lot of stuff, then you can benefit from bargains on the myriad products the big warehouse clubs offer. But if you’re a minimalist who rarely buys things and you prefer to get mostly organic fresh foods, you may not find much you actually want to buy at a warehouse club.

Finally, proximity to your home also matters. If you have to drive a long distance to go to a warehouse club, then it may be a hassle and any savings you realize would be lost due to gas and time.

Think carefully before you become a warehouse club member

For many people, joining Costco or Sam’s as Dave Ramsey has done will end up paying off. You may be able to give your credit cards less of a workout when you shop thanks to lower prices.

But, ultimately, you need to think about how often you’ll shop there and what kinds of things you’ll buy in order to decide if the membership fee is justified. Taking time to think this decision through before paying an annual fee can help you avoid wasting money on a membership you don’t use much in the end.

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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.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.

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Savings accounts are safe, but they’re not great for building wealth. 

People usually feel pretty comfortable with their money in a savings account. It keeps your savings secure, and you can access that money at any time. But maybe you shouldn’t be too comfortable, because one prominent finance guru says you’re actually losing wealth by saving money in a savings account.

That’s according to former Wall Street trader Vivian Tu in a video from her social media channel, Your Rich BFF. She says that because inflation makes life more expensive, you can’t save your way to being rich. Savings account rates just don’t keep up with inflation.

The math checks out. Inflation was above 7% all of last year, and even the most generous savings accounts offered about 3% to 4%. If you only have your money in a savings account, you’re fighting a losing battle against inflation. There’s nothing wrong with having some money in a savings account, but you definitely don’t want all your cash there.

How can you turn that battle against inflation back in your favor? Here’s what Tu recommends and why you should take her advice.

Make your money work for you by investing

Since Tu used to work on Wall Street, it’s probably no surprise that she recommends investing. As she puts it, “You need to invest, because your money can work 24/7, and you can’t.”

This is excellent advice, and if you’re not investing yet, it’s something you should start doing right away. Once again, it’s all about the math. The stock market produces an average annual return of about 10%. That makes it one of, if not the most reliable ways to build wealth.

There are down markets, and we went through one for most of 2022. But over the long haul, if you invest in the stock market consistently, you’re going to make money. It also doesn’t take much money or knowledge to get started.

How to start investing

If you’ve never invested before, you might be wondering where to start. The first step is getting an investment account, and you have a few options:

Set up a 401(k) with your employer. Many employers offer this type of tax-advantaged retirement plan for their employees. If you have this option, it’s a great way to invest.Open an individual retirement account (IRA). This type of account also has tax benefits, and you can open one through a stock broker.Open an individual brokerage account with one of the top stock brokers. This type of account doesn’t offer tax savings, so investors often use it after reaching the contribution limits on their retirement accounts.

After you have an account, you need to put money into it. With a 401(k), contributions typically come right out of your paycheck. You decide how much of your salary to contribute. Some employers will also match your contributions up to a certain amount. If your employer offers this, it’s almost always worth maxing out that match, because it’s practically free money.

With IRAs and individual brokerage accounts, you can transfer money over from your bank account.

The last thing to do is figure out how you’re going to invest. Your options depend on the account. 401(k)s typically offer a variety of investment funds. IRAs and individual brokerage accounts let you invest in just about anything. Here are some of the best ways to invest:

Index funds: This type of fund tracks a market index, such as the S&P 500 (500 of the largest publicly traded U.S. companies).Exchange-traded funds (ETFs): Similar to index funds, these contain a large number of stocks. Most brokers have plenty of ETFs to choose from.Target-date funds: A type of fund built around a specific retirement year. The investments are adjusted and optimized assuming investors retire on the fund’s target date.

If you want something simple and effective, look into S&P 500 index funds. You’ll get competitive returns, because the S&P 500 has the largest companies in the stock market. You also won’t overspend on fees, because index funds tend to have very low fees.

You don’t need to ditch your savings account

To be clear, savings accounts aren’t a bad thing. When you deposit money in a savings account, there’s no risk the value temporarily drops, which can happen while investing.

That makes savings accounts a good place to put money you don’t want to risk, like your emergency fund. Another example would be money for short-term savings goals, like a down payment on a home in a year or two.

Savings accounts just aren’t the right tool for building wealth, so you shouldn’t use them for your retirement savings. For that, you’re going to get much better results by investing.

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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If you struggle with saving money, it may be time to change your financial habits. 

If your goal is to save more money this year, you may want to look at your current habits to see if it’s time to make some adjustments to your habits so you have more success reaching your goals. Many of us regularly overspend without realizing it because we make the same financial choices repeatedly. You may be able to free up some of your income to save more by altering your current habits. Here are a few to break in 2023.

1. Not monitoring your spending

It can be too easy to overspend when you don’t track your spending or follow a budget. You may think that a small unnecessary purchase isn’t a big deal, and if it’s an occasional splurge, it may not be. But when you repeatedly buy things without considering your budget, those purchases can add up and negatively impact your personal finance situation.

If you want to get better at monitoring your transactions, budgeting apps make it easy to track your spending and set spending limits. Over time, you’ll see what habits need to be changed, and you can adjust your budget accordingly to save more money.

2. Not paying your credit card balance in full

If you use credit cards, make sure that you pay your debt each month. When you carry a balance, you’ll have to pay interest. Most credit card interest rates are high, making it easy to accumulate debt quickly. It’s best to pay your entire balance monthly to avoid extra fees. If you’ve been paying credit card interest fees, you’re wasting your money and making it harder to reach your savings goals because you’re handing your money over to your card issuer.

3. Not automating your savings

Many people want to save more, but don’t because one of two things happens:

Life gets busy, and they forget to transfer money to their savings account.They spend more money than they realize and don’t have enough extra money left to save after paying their bills.

If you relate to either of these situations, now is an excellent time to put your savings on autopilot. You can set up automatic transfers so that money from your checking account is transferred to your savings account on a regular basis. This way, you never forget to save. Treating your savings like a bill is a fantastic way to ensure that you stick to your goals.

4. Not planning your spending before you shop

With today’s higher living costs, overspending is easy if you don’t plan before entering the store. Whether you’re headed to the grocery store or running other household errands, it’s wise to review the retailer’s sales flier and make a shopping list, so you stick to your budget. Otherwise, you may fill your cart with expensive items you don’t need or miss out on discounted buys that are a better fit for your wallet. Making a plan before you shop can help you waste less money.

5. Not keeping your savings in a HYSA

Keeping all your savings in your primary bank account isn’t ideal because most checking accounts don’t earn interest. By keeping extra cash in a savings account, you can earn interest on your contributions. High-yield savings accounts pay out higher rates than many standard savings accounts, so don’t miss out on the opportunity to boost your bank account balance.

If you’re not saving as much money as you’d like, you’re not alone. Changing some of your financial habits may allow you to waste less money and maximize your savings potential. You’ll feel more prepared for unexpected emergencies when you have savings set aside.

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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.

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