Money Management

I’m going to owe a lot of money in taxes, too. 

Every year, I owe the IRS money. I do this because I’d rather slightly under-pay my taxes rather than overpaying them. I don’t like to give the government an interest-free loan of my money or make my cash inaccessible to me throughout the year until refund time comes along.

Since I’ll need to send funds to the IRS when I submit my tax returns, I have to decide how to pay the money. And, for me, it’s a no-brainer. I’ll be using my credit card in 2023 to pay my 2022 taxes, just as I have done every year for the past few years.

There’s a simple reason why I’m putting my taxes on a credit card

When I make my tax payment, I will be putting the amount on a credit card because doing so will enable me to earn credit card rewards.

Now, there is a fee for paying taxes using a credit card. There are a few different services available that you can use to charge your taxes, but the cost for them ranges from 1.85% to 1.98%. I choose the cheapest one every year, but I have to take this cost into account when deciding if paying my taxes on a card is worth it.

Fortunately, I have a credit card that gives me 2.62% cash back on all of the purchases I make. I get these extra rewards because I’m part of the card’s loyalty program since I have quite a bit of money in a bank account and brokerage account affiliated with the card issuer.

Since the rewards I can earn exceed the fee that I pay for paying my taxes with a card, it’s absolutely worthwhile for me to charge my taxes and get that extra cash back. And this would be true for me even if my card wasn’t so generous and I got just 2% cash back. That’s because it’s really easy to pay my taxes with a card and there’s no real downside to doing so, so I figure why not get the rewards on offer.

Since I usually owe quite a bit of money when I end up submitting my tax forms, even that little bit of cash back ends up making a difference. And, since I pay off my credit card balance in full before I end up owing interest, the rewards I earn are essentially free money in my pocket just for doing something I’d have to do anyway.

Other reasons to pay taxes with a card

There are a lot of good reasons to pay taxes with a credit card. If you’re trying to earn a new cardmember sign-up bonus, for example, paying your tax bill could help you to meet the spending requirements.

If you don’t have quite enough money to fully pay your tax bill when it’s due, paying your taxes on a card offering a 0% APR for purchases for a set period of time (such as 12 months) can also allow you more time to cover the costs without interest charges.

Ultimately, though, you do need to remember there’s a fee involved — and you don’t want to pay interest on your tax bill — so think carefully to decide if paying your taxes with a credit card makes sense for you.

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.

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Don’t just let that time off go to waste. 

Paid time off is a benefit that not everyone is entitled to. In fact, one of the biggest drawbacks of being self-employed is not getting paid when you need to take time away from work, whether it’s to deal with an illness or to take vacation.

And speaking of vacation, paying for one may not be in the cards these days. A lot of people are struggling financially due to inflation — and they have higher credit card bills to show for it. If money has gotten tight, or if you don’t have the money in your savings account to cover a vacation, then you may need to pass on a getaway this year.

That doesn’t mean you shouldn’t use your PTO (paid time off) days, though. Sorbet, a PTO solutions platform, recently found that 55% of PTO goes unused by employees. And it’s a shame to give those days up when you’re entitled to them and they’re built into your compensation package. So if you can’t afford to take a vacation, here are some other options for using your PTO days.

1. Work your side hustle

Maybe you can’t wrap your head around the idea of taking time off from work just to sit on your couch eating popcorn for days on end. But if you can’t pull off a vacation, use your PTO days to work a side hustle. And if you don’t have one already, well, get one. The gig economy is loaded with opportunities, and many side hustles don’t require a regular time commitment.

Say you have a week of PTO to use. You can drive for a ride-hailing service for that week and then never do it again if you don’t have the time or desire. But at least that way, you’re not leaving vacation days on the table and you’re not using that time unproductively.

2. Volunteer

If you don’t want to work a side hustle in the course of taking PTO because you want a mental break from doing any sort of job, try doing some volunteer work instead. Help plant a community garden or go walk dogs at your local animal shelter. It will give you something meaningful to do with your time.

3. Grow your job skills

Using your time off from work to focus on work might seem like a drag. But think about it this way. Your regular work schedule may not allow you to focus on professional development. And that could actually be hindering your career. So if there’s a course you’ve been wanting to take that will make you better at your job, and you can’t fit it in normally, use your PTO to make it happen.

If you don’t use the PTO you’re entitled to, you might regret it later. Worse yet, if you and your fellow employees leave too many PTO days on the table, your employer might start to claw some back. You don’t want that to happen, so find a way to make the most of the time off you’re entitled to — even if it doesn’t mean getting to lounge on the beach or explore an exotic island.

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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 could be a big money saver. 

You’ve really got to hand it to Amazon — the retail giant has come a long way since starting off as an online bookseller. These days, you can order just about anything through Amazon, from clothes to furniture to electronics. You can even order prescription medications through Amazon Pharmacy. And now, Amazon has launched a new program that could result in a lower credit card tab the next time you need to refill a prescription for a generic drug.

Introducing Amazon RxPass

Amazon’s new RxPass program is an add-on to Amazon Prime. It’s not available in every state, though, so you’ll need to see if yours is on the list. But if it is, then it pays to look at the list of drugs offered through the program. If medications you take are available through RxPass, then it could pay to sign up.

Amazon’s RxPass program costs just $5 a month. And for that single fee, you can receive all of your medications if they’re on Amazon’s list. Delivery of those medications is also free.

Will RxPass benefit you?

If you currently spend more than $5 a month on the generic medications you take, and RxPass offers them, then signing up could save you a nice amount of money. But if your medications aren’t on the list, then the program won’t do you any good. Similarly, if the medications you take aren’t available in generic form, they won’t be available through RxPass.

It’s also worth noting that RxPass needs to be coupled with an existing Amazon Prime membership. And one of those costs $139 a year. So if you’re not already paying for Prime, you’ll need to factor in that added cost to see if you’ll end up reaping savings.

If, for example, you currently spend $15 a month on a medication that Amazon has available for $5 through RxPass, you could save yourself $10 every month — that is, unless you now have to sign up for Amazon Prime. If you do, you’ll wipe out that savings (though you’ll also get to enjoy the benefits of Amazon Prime, like free two-day shipping on orders of any amount and access to different streaming content).

Of course, even if RxPass doesn’t save you money per se — because maybe you’re already only paying $5 a month for your medications — there’s also the benefit of not having to go to the pharmacy every few weeks to pick up your pills. With RxPass, you’ll have your medications delivered to your door, saving you time and gas money.

If you’re interested in signing up for RxPass, just log into your Amazon account and follow the directions. You’ll need to go through some steps to verify your eligibility and prescription information.

A good way to spend less

Healthcare expenses can make a huge dent in your budget. With RxPass, you might manage to lower your costs and bank more money in your savings account. So it pays to consider signing up if the medications you take are offered under the program.

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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. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Who knows? It’s possible that the ugliest seafood is also the most delicious.  

To be fair, “weird” is in the eye of the beholder. What seems exotic to us here in the U.S. may be an everyday staple in another country. Still, we thought it would be fun to learn more about the types of things Costco carries in stores outside the U.S.

With 847 stores spread across 14 countries, it’s no wonder the retail goliath boasts nearly 121 million members. You can find a Costco in each of the following countries:

CanadaUnited KingdomTaiwanKoreaJapanAustraliaMexicoSpainIcelandFranceChinaNew ZealandSweden

There’s some overlap in most Costco locations. For example, you’ll see appliances, huge stuffed animals, clothing, and books in nearly all stores. It’s the food items offered that tends to set one Costco apart from another.

1. More candy than is healthy

If you’re in the mood for chocolate, you’ll be glad to know that Costco Australia carries a 22-pound Cadbury Dairy milk chocolate bar. That’s right. You can walk into an Australian Costco, grab a cup of taro milk tea with boba, and stroll through the store in search of a candy bar larger than most young children. On your way out, you’re going to want to stop at the food court for a tub of Vegemite.

2. High-end designer handbags

While it may be jarring to bump into a display of designer handbags while shopping for groceries and a new teapot, that’s what happens when you’re in a Costco in Australia or China. You can find anything from Jimmy Choo, to Prada, to Chanel lined up on tiered tables.

By the way, you might be interested to know that on Costco’s opening day in Shanghai, the store was so overrun with people looking for money-saving deals that traffic was disrupted and the wait time to park was up to three hours. Oh, and due to the crush of people, the store was forced to close early to allow those who’d already made their way in to complete their shopping.

3. Liquor-infused ice cream

What’s not to love about France? Just outside of Paris is one of the country’s two Costco warehouse stores. Inside you’ll find gigantic cheese wheels, huge bottles of wine, bulk crepes, and a liquor-infused ice cream. With an alcohol volume of 3.3%, this is the real stuff. You have a couple of options. To give you a better idea of what you’re looking at, one ice cream option is a salted caramel with Belgian chocolate, and infused with bourbon.

4. Rice, so much rice

In any of the 30 Costco locations in Japan you’ll find the usual suspects: Dried sardines you can eat straight from the bag, salty little snacks called Nori Maki, and fried squid. But you’ll also find rice. While there’s nothing odd about finding rice for sale in a Japanese Costco, it’s the sheer volume that may blow your hair back a little. There’s an entire aisle dedicated to massive bags of rice. It’s seriously impressive.

5. An array of unusual seafood

South Korea is home to 18 Costco stores, and each one carries some of the least attractive seafood to be pulled out of the deep blue sea. There’s the fresh sea cucumber, so ugly it hides on the bottom of the ocean floor. Nearby you’ll find whole, raw octopus, the stuff of children’s nightmares. And finally, there’s abalone, the least attractive of all mollusks, if such a thing is possible. In the right chef’s hands, each of these creatures are undoubtedly delicious. It’s the sight of such a motley array of deep sea creatures that takes some getting used to.

As mentioned, what seems weird to us is considered a delicacy in other countries, and it’s nice that residents of those countries have access to the foods they enjoy. It’s particularly convenient that they can pick them up at a retailer selling everything from mega-packs of socks to pet insurance.

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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.Dana George 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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