Money Management

That new medication costs how much!? Try this. 

Healthcare in the United States is expensive. In addition to costly insurance premiums, copays, and lab testing, many people struggle with the high cost of prescription drugs. Some Americans even choose to go without their medications due to financial concerns — which is not a safe choice. If you have a new prescription that’s too pricey, you may be able to pay less. Here are a few ways to save money on prescription drug prices in the United States.

1. Use GoodRX to get discounts

GoodRX helps patients save money on many commonly prescribed medications. You can search the GoodRX prescription savings database through the company’s mobile app or website to see if any coupons are available for your medication. If a coupon is available, show it during the checkout process to score a lower price. GoodRx is accepted at over 70,000 pharmacies, and patients can save up to 80% on prescription costs.

2. Try Mark Cuban’s prescription drug company

Many people save money by using the Mark Cuban Cost Plus Drug Company. The company fills and delivers prescriptions at cost, plus a 15% markup and a $3 pharmacy filing fee — which can be a significant win for everyday consumers who are on a tight budget. When you use this service, your filled prescriptions will be mailed to your home, so this service could make your life easier, too. You can search the website to see if your medication is supported.

3. Switch to the generic version

Are you taking an expensive name-brand drug? Generic medications offer an excellent way to save money. According to the FDA, when multiple generic companies market the same product, generic drugs typically cost about 85% less than their name-brand equivalents.

Not all medications have a generic version, but many do. You may want to speak with your medical provider to see if a generic version would be a good fit for you. Switching to generic could help you keep more money in your checking account without skipping the medication you need.

4. Compare prices by pharmacy

Not all pharmacies charge the same prices for prescription drugs. If you have a new prescription and are shocked at how much your current pharmacy charges, it’s not a bad idea to see if other nearby pharmacies offer the same drug at a lower price. You may be able to get a better deal by switching pharmacies.

5. Get a 90-day supply of medication

Depending on the type of medication that you take, you may be able to request that your medical provider prescribes a 90-day supply instead of a 30-day supply. Some pharmacies offer significant discounts to customers who order a 90-day supply because it’s similar to buying in bulk. As a bonus, you’ll be stocked up on medication for a while, so you won’t have to worry about refilling your prescription every month or running low too soon.

Don’t let the price of prescription drugs get you down

You’re not alone if you’re frustrated about the high cost of medical care and prescription drugs in the United States. But there are ways to save money on this expense. Make sure you explore alternative options, like the ones mentioned above, so you can continue prioritizing your health without feeling stressed out about your personal finance situation.

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You may want to steer clear of these. 

Whether you shop at Costco once a week or once a month, you might really appreciate the savings your Costco membership buys you. And the great thing about Costco is that it offers a wide range of grocery items at ultra-affordable price points.

Need a week’s supply of salad and fruit for your family? Costco’s got you covered. You can also buy lean meats and fish in bulk if you have a larger household to cook for.

But while Costco certainly stocks its share of healthy foods, some of its offerings are anything but. Here are some of the most unhealthy products you might be tempted to buy.

1. Yakisoba vegetable bowls

When you need a quick lunch that’s easy to transport to work and pop in the microwave, you may be tempted to buy a bulk pack of Yakisoba vegetable bowls. But don’t let the word “vegetable” trick you into thinking this is a health food item.

Each bowl contains 10 grams of fat. But that’s not the worst part. A single bowl also contains a whopping 1,160 milligrams of sodium, or 50% of the recommended daily value. Wowsa.

2. Kirkland Signature Butter Croissants

It’s hardly a secret that Costco’s fresh bakery section isn’t exactly loaded with health food items. But while it may be obvious that a giant cheesecake or a muffin the size of your head isn’t good for you, Kirkland croissants might seem to fall into a different category. After all, they’re not so large.

But actually, those croissants contain 300 calories apiece, plus 17 grams of fat (22% of the recommended daily value). And so while it may not be a problem to indulge in one on occasion, you’ll need to be careful when picking up a bulk pack, because this is not the sort of food item you want to eat for breakfast every day. (Or rather, you may want a daily croissant, but your doctor might caution against it.)

3. Any bulk bag of chips

The chip aisle at Costco is loaded with bulk bags of potato chips, tortilla chips, and snack mixes. And while you might pledge to limit yourself to a single serving each time you break into one of those bags, chances are, you won’t.

If you buy a regular-sized bag of chips at the supermarket — say, one that comes with eight servings — you’re apt to notice if you consume four servings’ worth in a single sitting, since you’ll have depleted half the bag. But when you’re buying a bag of chips with 22 servings, maintaining any semblance of portion control can be difficult. So unless you’re hosting a party, you may want to steer clear of the Costco chip aisle.

As an example, Costco sells a massive bag of Chex Mix with 39 servings as per its label. Each serving contains 130 calories, 3.5 grams of fat, and 230 milligrams of sodium, or 10% of the recommended daily value. So accidentally eating four servings could mean consuming 520 calories, 14 grams of fat, and 40% of your daily sodium in one sitting.

4. The $1.50 hot dog and soda combo

Costco has maintained its competitive $1.50 price point for its hot dog and soda combo for years — and it’s pledged to continue to do so indefinitely. But while $1.50 is clearly a steal when it comes to lunch on the go, a hot dog and soda combo is just about the most unhealthy thing you can put in your mouth.

First of all, hot dogs tend to be loaded with fillers and sodium that could make even a healthy heart race. And unless you’re drinking diet soda with it, you might consume a day’s worth of sugar alongside your emulsified meat trimmings and salt. In fact, a Costco food court hot dog has 580 calories, and the total calorie count from the combo could reach 850, depending on the type of soda you choose and the amount of ice you fill your cup with.

Shopping at Costco can result in a lower credit card tab than shopping at a regular supermarket. But if you load up on too many unhealthy products and consume them regularly, what you save on food, you might spend more on doctor bills. So if you’re going to indulge in the items above, your best bet is probably to do so in moderation.

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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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One personal loan option may no longer be on the table for you. 

There’s a reason personal loans are popular among consumers. Not only do they tend to come with competitive interest rates — at least compared to credit cards — but they’re also very flexible.

When you take out a personal loan, you can use your proceeds for any purpose. Other loans, such as mortgages, restrict you to buying a specific asset, like a home.

But personal loans can be risky for lenders. That’s because these loans are unsecured — they’re not tied to a specific asset that can be used as collateral in case a borrower falls behind on their payments. And also, in some cases, they may not be very profitable.

Meanwhile, recently, investment banking giant Goldman Sachs announced it’s going to stop the practice of offering personal loans to consumers through its Marcus brand. This is part of the banking giant’s decision to cut back on consumer-facing products.

Given these uncertain economic times, this news isn’t so surprising. But that doesn’t mean all lenders are about to pull out of the personal loan space.

You can still get a personal loan elsewhere

Losing a big player in the personal loan space could be a blow to consumers, because the more borrowing options there are, the easier it might be to secure an affordable rate. But if you need a personal loan, don’t stress out over the fact that Goldman Sachs is pulling the plug on them. There are still plenty of lenders you can apply with.

In fact, a good bet is to shop around for a personal loan, since each lender ultimately sets its own rate. You should also know that the higher your credit score, the more likely you are to snag a competitive interest rate on a personal loan. But there are plenty of personal loans out there for people with poor credit. If you have a need for money, it pays to do some research and see what options you have.

That said, before you take out a personal loan through a new lender, it could pay to see if an existing lender you have a relationship with offers them. Your bank, for example, might offer personal loans. And if they’ve had your business for many years, that could work to your advantage. So while it’s a good idea to shop around for a personal loan, starting off with an institution you’re familiar with could be a good bet.

What to do if you have a personal loan through Marcus by Goldman Sachs

Going forward, you may not be able to take out a personal loan through Marcus by Goldman Sachs. But what if you have one already? Rest assured that despite the wrap-up of the bank’s personal loan business, your balance isn’t going to be magically forgiven. You should expect to still have to make good on that loan. However, whether your loan is sold or transferred elsewhere is yet to be determined.

The best thing you can do is wait to hear from your lender. They’ll tell you what to do in light of this change.

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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 Goldman Sachs Group. The Motley Fool has a disclosure policy.

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Cheaping out can cost you in other ways. 

Frugality can be a good quality. For example, you might consider buying some items used, like books and bicycles. You might also keep your credit card tab down by repairing clothes and appliances, rather than replacing them, or by swapping some of your grocery purchases for the store brand version (I’ve finally switched to store-brand peanut butter and I can’t believe how much cheaper it is).

That said, being too frugal in your quest to save money can sometimes come back to bite you. Here are five purchases you shouldn’t buy the cheapest version of, for very good reasons.

1. Mattresses

As my mother has said for years, you spend a third of your life asleep. It’s a good bet that most of those nights will be spent in your very own bed, making your mattress the most important factor in a good night’s sleep. If you buy a cheap mattress, you could eventually end up with back pain, but in the short term, you’ll cope with the kind of poor night’s sleep that makes you hate everyone around you. Remember, sleep is vital for not just your physical health but also your mental health. Mattresses often go on sale around holiday weekends, according to Real Simple, so plan to go shopping then if you’re in need of a new one.

2. Car tires

Your car’s tires are extremely important for safety and driveability. Cheap tires might look the same as the more expensive brands, but the reason they cost less is often due to the lower quality rubber compounds they’re made from, which could break down sooner, leaving you without adequate tread for stopping and traction. If you need new tires, it pays to see what kind of deals are on offer from your mechanic, or you could even shop online (where you’ll be able to see reviews from other drivers, too). On a similar note, consider investing in winter tires if you live in a snowy area, to get a longer lifespan out of your regular ones.

3. Shoes

Your feet are the only part of your body that touches the ground, and wearing poorly made shoes can throw off your body’s alignment, resulting in foot pain, leg pain, and even back pain. Plus, $20 shoes are not going to last you as long as $60 ones, and if you’re buying them more often because they’re wearing out, are you really saving money at all? Watch for sales at local shoe stores, or try my trick — if you already know your size for a particular brand/style, buy them online for less.

4. Major appliances

It’s very tempting to go cheap on an appliance purchase, especially if you see the price difference between a brand you’ve heard of and one you haven’t is several hundred dollars. That said, more reputable appliance brands tend to offer better warranties on their products as well as more robust customer service.

Just like mattresses, major appliances tend to go on sale at certain times of the year. Bob Vila notes that it pays to wait until the manufacturers roll out new models, as that’s when the previous year’s model is reduced in price. For laundry machines and dishwashers, this will be September, with new refrigerators coming out in May and ovens in January. My tip? If you’re trying to save, buy the least expensive name-brand model you can find. This works especially well if you don’t need features like digital displays or a built-in app and just want something basic.

5. Electronics

Finally, while you may be tempted by that $99 tablet, and are thinking of opting to buy it over the $400 or $500 one by a big-name computer company, this isn’t a good idea. As with some of the above items, a cheap piece of tech might not last you as long as one that costs more. And it might also be a major hassle to use, with a less-than-responsive touch screen or frustrating operating system. A great way to save on electronics is by buying them refurbished from the manufacturer — you can get a great deal and ensure the item you’re buying will work as intended.

While items like car tires, mattresses, and electronic devices can be costly, it’s far better to save money on them in other ways rather than by buying the cheapest version you can find. After all, you don’t want to harm your health and safety, or end up having to replace something sooner than expected, as that will just cost you more money 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.The Motley Fool has a disclosure policy.

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It’s a move that may not actually pay off. 

For many people, housing is their largest monthly expense. And whether you rent a home or own one, that expense is probably far more expensive than the next costly item on your list.

Meanwhile, the cost of housing can vary depending on what part of the country you live in. In some cities, $1,000 will buy you a nice apartment. In other cities, $1,500 won’t even be enough to rent your own studio.

The same holds true when we talk about homeownership. In some areas, a nice starter home might cost $200,000. In other areas, you might need to spend $1 million or more for a two-bedroom, one-bathroom condo or townhouse.

If you’re tired of grappling with sky-high housing costs, and you’re able to work from home or find a new job easily, then you may be thinking about relocating to a part of the country where it doesn’t cost as much money to purchase a home. But while that can be a good strategy in general, it may not be your best move right now.

A less expensive home won’t necessarily save you tons of money

Let’s say you’re tired of paying the mortgage on a $500,000 home, so you’re thinking of moving to an area where you can buy, say, a $300,000 home and wind up with roughly the same amount of space. It’s a good idea in theory. But the numbers may not work out that nicely due to the cost of borrowing today.

It’s gotten more expensive for consumers to borrow money across the board, whether in the form of an auto loan, personal loan, or mortgage. And these days, borrowers are looking at more than twice the mortgage rate they would’ve landed a year ago.

That’s why moving to a state with cheaper housing may not be financially beneficial right now. It just costs so much to borrow for a home that even with a lower purchase price on one, you may not end up reaping all that much savings.

In fact, let’s say you signed a 30-year mortgage on a $500,000 home that you took out a $400,000 mortgage on (in other words, you made a $100,000 down payment, or 20%). If you locked in a mortgage at 3%, it means you’re paying $1,686 a month on principal and interest.

Now, let’s say you can relocate someplace where you can buy a $300,000 home, and you can put down $100,000 on it. In that case, you’re only borrowing $200,000. If you get stuck paying 7% interest on a 30-year mortgage, your monthly payment of principal and interest will be $1,330.

All told, you’re looking at saving around $350 a month. That’s not nothing. But it may not be a life-changing amount.

And also, remember that there’s a cost of moving, and also, a cost of taking out a mortgage — namely, closing costs to finalize that loan. All told, it could be a while before you come out ahead financially.

A smart move in a different borrowing environment

Moving to a state with less expensive housing makes lots of sense when borrowing rates are more affordable. But because mortgage rates are so high right now, it could pay to put those plans on hold.

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Payday loans are designed to create a vicious circle of ever-deepening debt. 

Recently, there was an interesting exchange on Twitter. It began with Twitter superstar Nathalie Jacoby tweeting this question to her followers: “What’s 100% a total scam, but we still accept it in society.”

As you might imagine, people had all kinds of clever responses. One of those responses came from money and career expert Tori Dunlap, founder of Her First $100K. Dunlap answered simply, “400% interest on payday loans.”

Dunlap was right. Payday loans are officially the biggest loan scam perpetrated on unsuspecting borrowers. Here, we break down payday loans and offer ideas to help you avoid predatory lenders.

They make it easy

Let’s say you need money fast. It’s the dead of winter, and your furnace no longer blows warm air. You consider applying for a traditional personal loan from your credit union, but you’re in a hurry. Besides, you’re afraid that your low credit score will make loan approval impossible. And so you stop into your local payday lending store. They’ll give money to anyone.

The person behind the partition is nice enough, and they make the entire process easy for you. All they ask to see is your identification and most recent pay stub. They give you two options:

Write a post-dated check for the full loan amount, including fees, orSign an authorization permitting them to debit the money owed from your checking account

“But don’t worry,” they tell you. “We won’t cash the check or debit your account until your next payday.”

What’s really going on

They tell you that your interest rate is 15%, which doesn’t seem so bad. In fact, it’s lower than the average credit card rate these days. What you need to look for is the annual percentage rate (APR), breaking down the true cost of a loan.

Say you borrow $1,000, and the payday lender charges you a $15 fee for every $100. That’s a simple interest rate of 15%. But here’s where things get dicey. You’re expected to repay the loan in 14 days when your next paycheck arrives. Due to this very short loan term, the actual amount you’re paying for the loan (the APR) hovers around 400%.

Designed to fail

It is no surprise to payday lenders that people who come to them for money are desperate. After all, they would visit their local bank if they had high paychecks and great credit scores.

Sure, predatory lending rates bring in the big bucks, but more is made when a borrower is forced to roll one loan over into another. Once that happens, the lender has the interest and fees charged on the first loan, followed by the interest and fees they charge on the new loan.

Better yet? The borrower must now pay interest on the interest associated with the first loan.

According to the Consumer Finance Protection Bureau (CFPB), over 80% of payday loans are rolled into a new loan within 14 days. And the deeper a consumer gets into the payday loan cycle, the harder it is to get out. CFPB reports that half of all payday loans result in the borrower rolling the loan over at least 10 times.

Alternatives

We’ve all run into a financial wall we didn’t know how to climb over. There’s no shame in that. But if you need money and you need it fast, here are a few other options to consider.

Friends and family

If you don’t need to borrow much and are confident you can pay it off quickly, let a good friend or close family member know what you’re going through. If they offer to lend you the cash, write an IOU clearly outlining when the loan will be repaid in full.

Credit card

If you have a credit card, check the interest rate. Chances are, it’s a small fraction of the rate you would end up paying a payday lender. Again, make a plan to pay it off as quickly as possible. There’s no reason to take money out of your bank account to make a credit card company richer.

Credit union

If you’re a member of a credit union, that means that you’re also a part owner. Because of that, credit unions have more flexibility when it comes to lending. Go in and explain your situation and ask about a short-term loan. Your history with the credit union may give you a leg up.

There is nothing redeemable about payday lenders, which makes it no surprise that they’re illegal in some states.

If things are going relatively well today, the best thing you can do for yourself is to start building an emergency savings account. Consider this: If you put $100 a month into the account, you’ll have enough to cover small emergencies before the end of the year.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

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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