Money Management

Making a change to my membership has made shopping at Sam’s easier than ever. 

There are lots of great warehouse clubs out there, including Sam’s Club and Costco. Our family has always had a Sam’s membership, though, and we use the store to buy lots of staples ranging from trash bags to toothbrush heads.

Recently, though, I started shopping at Sam’s more than ever after making one big change. Here’s why.

Changing my membership made Sam’s Club an even better deal

I increased the amount of shopping I do at Sam’s Club for one simple reason. I signed up for the Plus membership because doing so enabled our household to actually save money on a purchase of eyeglasses (even after putting the added membership costs on our credit card).

The Sam’s Club Plus membership comes with a lot of perks that my previous membership did not offer. But the two most important added benefits for me are free shipping as well as 2% back on Sam’s Club purchases. And both of these Plus membership perks have significantly increased the amount of shopping I do at the big-box store.

The extra 2% savings that I’m able to score on Sam’s products is obviously a huge benefit since it makes all of the deals at the warehouse club even better. When combined with the cash back I get from my credit card, I end up saving almost 5% on each purchase that I make at Sam’s now, so my money goes further.

It’s actually the free shipping that has made the biggest impact, though. Because, now I don’t have to go into the store in order to get my bulk items from Sam’s — I can do my purchasing right from the comfort of home on my computer. So if I want to make an impulse buy late at night or just grab one or two items, I no longer navigate automatically to Amazon but I can check Sam’s prices first to see if I get a better deal (which I often do).

When I had to drag two kids with me into the car and then to the warehouse club, or else potentially pay for shipping on my purchases, it simply wasn’t worth any savings Sam’s provided in most cases.

But with that obstacle removed, my spending at Sam’s has gone up big time. And that’s not a bad thing, because I’ve been able to shift some of my purchasing to this big-box store where I get better deals. So, my total overall spending has actually declined — especially with the cash back factored in.

Is a Sam’s Club Plus membership right for you?

The Sam’s Club Plus membership is definitely more expensive than the standard membership, coming in at $110 compared with $50. But the savings on glasses, generic prescription drugs, and other pharmacy items can sometimes more than cover this added cost if you take advantage of these deals — and that’s not even mentioning the free shipping and cash back.

Ultimately, the right membership tier for you depends on how often you shop at Sam’s and whether you’ll take advantage of those extra perks or not. So be sure to take the time to consider whether the higher membership tier is the better choice, as sometimes spending a little more upfront can save you a fortune in the long run.

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, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

Put these on your list if your income needs a boost. 

If you’re thinking about getting a side hustle in 2023, you’re no doubt in good company. Many people have been struggling to keep up with their bills this year due to inflation. And if you’re eager to chip away at the credit card balance you’ve racked up, you may be interested in not only finding a side hustle, but landing a gig with added earnings potential. If that’s your goal, here are a few specific jobs worth looking at.

1. Driving for a ride-hailing service

You may not make all that much money driving for a ride-hailing company on a per-ride basis. But the reason this gig has the potential to be so lucrative is that you’ll generally have the option to work as many hours as you want. So the more time you put in, the more income you stand to generate.

Plus, if you go out of your way to be friendly to passengers and maintain a clean vehicle, they might reward you in the form of generous tips. Those could add to your wages, making this a gig that puts a lot of extra money in your pocket.

2. Tutoring

You can’t get away with being a tutor if you don’t really know your stuff. But if you’re a pro at challenging subjects like advanced math or chemistry, you might manage to command a really nice hourly wage by offering up your services as a tutor.

The one drawback here is that you’ll generally have to travel to clients’ homes, which could be time-consuming. And also, you’ll need to work around the schedules of the people you’re tutoring. But if you’re willing to do that, you could earn a bundle of money.

3. Teaching music lessons

It takes more than just knowing how to play an instrument to do well as a music teacher. You also need to have patience and the ability to teach others in an easy-to-follow manner. But if you have those skills, you can do pretty well for yourself by offering up music lessons. This especially holds true if you’re willing to travel to people’s homes, as opposed to having them come to yours.

4. Designing websites

You need to be a web design pro to create and update websites for clients. But if you possess the right skills, you can earn a nice amount of money by doing this type of work. And best of all, it’s the sort of gig you can generally do from home and at your own pace, provided you meet the deadlines your clients set for you.

Granted, you may have to take client meetings once in a while, and that could prove a little challenging if your clients want to meet during the day. But if you have the option to sneak out on your lunch break, it’s doable.

Working a side hustle could help your finances improve tremendously in 2023. And if you want to maximize your earnings, it pays to see if any of these four gigs is a good fit for you.

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 

I’ve still got a credit card tucked away somewhere safe. 

Credit cards are so last year. It’s all about smartphone tap-and-pay technology. Or if you’re a frequent Amazon shopper, one-click checkout. Then there’s the Gen-Z favorite: buy now, pay later services like Klarna.

All of that equals a cash register’s worth of ways to pay without swiping a credit card.

Everyone is doing it. In fact, digital wallets are now the most popular payment method in the world. They’re more popular than credit cards — but the U.S. lags behind most other countries in adopting them for day-to-day payments.

You may be tempted to ditch your credit card. But before you do, consider the pros and cons of tossing away that slick plastic rectangle and going digital.

Pro: Digital payments are convenient

Let’s face it: It’s easier to click a button or tap a smartphone than carry a credit card. Credit cards have loads of problems. Like faulty chips. Or weird swipe issues that pop up every time you buy bananas at Ralphs. With digital payments, you get to skip all of that.

Some services, like PayPal, save your information for you. It keeps you from filling out lengthy forms asking for your credit card information, home address, and billing address…again.

Speaking of tedious tasks, Cash App allows users to file their tax returns from their account — for free. Digital payments frequently come with bonuses that make them more convenient to use than credit cards alone.

People prefer to avoid getting stuck at the Walgreens register. Especially when the manager starts muttering about technology while tinkering with the broken card reader. Consider updating to a contactless credit card for maximum convenience at the counter.

Pro: Digital payments are secure

Is a digital payment more secure than a credit card? Depends on what you use. Digital payment platforms frequently offer two-factor authentication (2FA), which sends you an email or text message every time you make a purchase.

Mobile wallets like Apple Pay and Samsung Pay are typically safe to use. They use features like encryption and personal IDs to make sure only you have access to your cards. Some of these features must be enabled manually, so users should ensure they take a moment to do so.

Third-party payment platforms like PayPal come with many of the same security features you’d expect from a credit card company. Your digital credit card is not connected to your bank account, and you will still receive notices if your credit company flags fraudulent transactions.

Finally, it’s more challenging for a thief to steal your phone and hack your password than to nick your wallet while waiting in line for the latest iPhone. That counts for quite a bit.

Pro: Digital payments offer rewards

If your credit card offers 1% cash back for shopping at a grocery store, you will get that same benefit with a digital credit card saved to your PayPal account. Plus, some digital wallets, like Cash App, offer their own discounts.

Con: Credit card users spend less

It’s worth noting that credit card users tend to spend a little less than mobile wallet users. That could be because it’s easier to feel like you’re losing money when you’ve got a hard piece of plastic gripped between your knuckles at Walmart.

Con: Credit cards are accepted more universally

I have been guilty of walking into a store with only my phone and walking out empty-handed, having been informed that, no, sir, your local CVS doesn’t take Apple Pay. However, I’ve only been denied a credit card swipe when traveling abroad.

Should you cut up your credit cards?

Despite greater use of digital payments, credit cards are still the best option for many people, and if you link them to a payment app, you can also benefit from an extra layer of security and convenience. Consider keeping your physical cards in a safe place at home and popping them out when you need them. It’s important to note that In the United States, stores accept physical cards more often than digital payments at the cashier, so plan accordingly. Check out the best payment apps for convenient shopping options you may be able to use at your favorite grocery store.

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.John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, PayPal, and Walmart. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

 Read More 

If you’re one of them, you could come to regret it. 

Credit cards can be either a great tool that helps you improve your finances over the long term — or they can turn your financial life into a disaster. It all comes down to what you do with them.

Unfortunately, millions of Americans may be using their cards in a way that could be dangerous to their financial health over the long run.

Millions of Americans are relying on their credit cards for the wrong reasons

According to a recent study from Ramsey Solutions, an estimated 25% of all Americans have indicated they are relying more than normal on their credit cards to help them to cover the bills. This amounts to about 70 million people total who are turning to credit to cover everyday essentials.

The same study also revealed that close to 100 million Americans have indicated they are either struggling with their finances or are in crisis already. Since this study was conducted in the third quarter of 2022, when inflation has surged and the prices of basic necessities like gas and groceries have climbed to recent records, this isn’t a surprise.

Still, it’s troubling that so many people are relying on debt to make ends meet as this could have consequences both in the short term and in the long term.

Why is using credit cards to pay the bills so dangerous?

Using credit cards to help pay the bills can be problematic for a whole host of reasons.

First, if you’re using your credit cards to help cover your everyday costs, this likely means you aren’t paying off your balance in full when your card bill comes due. If you had the money to repay your balance in full, then you wouldn’t be relying on your cards so much to make ends meet.

If you don’t pay off your balance in full every single time you get a credit card statement, you’re going to be charged interest on your purchases. That means everything you buy — which is likely already costlier due to inflation — will come at an even higher price. If you’re struggling to afford things without tacking interest onto them, paying financing charges certainly isn’t going to make things easier.

Aside from the fact you’ll be making your purchases cost more in the near term by borrowing on credit cards to pay for them, you’ll also make life harder for yourself going forward. If you’re committing now to paying back creditors in the future for purchases you’re making today, you will have less money available to you later on due to the fact this monthly payment will still be with you.

For as long as you have that monthly payment, it will be harder to live on what you earn since the money you earn will be partly used to pay for your past living expenses.

For these key reasons, if you’re currently turning to credit cards to help cover the bills, you’ll likely want to try to stop doing that as soon as possible. It will no doubt be difficult since you probably wouldn’t rely on your cards if you didn’t feel like you had to. But if you can find solutions like temporarily cutting your budget or picking up some extra hours at your job or side hustle, you’ll end up a lot better off in the long run.

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.The Motley Fool has a disclosure policy.

 Read More 

If you’re paying a lot of money on your car loan, you need to read this. 

A car is a necessity for many people. Unfortunately, it comes at a huge cost. The average monthly car payment now tops $700, which means you could be devoting a huge percentage of your monthly income to paying for transportation.

The opportunity cost of these high car loan payments could be much higher than you think. In fact, it could be so high that you’re missing out on millions of dollars over the course of your life just because of the car in your driveway.

Here’s why selling your car to get rid of your loan payment may well be worth it once you do the math.

How much is your car really costing you?

If you can fit your car payment into your budget, then you might feel OK about paying it — but the problem is, you need to consider the opportunity cost. Every dollar you are spending on a vehicle is money you cannot spend on something else like saving for a house or investing for your future.

Those dollars you are spending on a car don’t help you to build your net worth in the long run. That’s because a car is a depreciating asset. That means it goes down in value the longer you own it and you aren’t going to be able to make a profit when you sell it (unlike, hopefully, stocks you invest in or a house you buy, which you can often sell for more than you spent).

The opportunity cost really adds up — especially if you have a car payment for most of your life. Say, for example, you end up making a $700 monthly payment on your car every month for 30 years. At the end of that process, you’d be left only with the memory of the vehicles you drove. But if you instead invested $700 a month every month in a brokerage account for 30 years and you made an average annual return of 10%, you would have over $1.3 million.

If you have a choice between keeping your car and retiring a millionaire, it becomes easy to see why selling a car to get rid of a loan payment could be a smart financial move.

Is it actually possible to go without a car payment?

Now, you’re probably thinking that this all sounds well and good — but you need your car to get places. So, how can you sell it to skip your car loan?

The answer is, you can opt for a cheaper used car you pay cash for. Let’s say you have a car worth $30,000 that you still owe $20,000 on. You could sell the car, buy a cheap used vehicle for $10,000, and get rid of your monthly loan payment.

Going forward, you can save a small amount of money each month towards paying for your next car in cash and can invest the difference. If you try to drive your cars for as long as possible, you should be able to easily save up to buy an inexpensive used one while still having plenty of money left over to invest.

You can also consider whether you really need to be a two-car household if you are one — or whether you really need a car at all if it’s possible (and cheaper) to move to a walkable area or work from home and rent cars on the rare occasions when you need them.

Ultimately, you shouldn’t necessarily assume a car payment is a normal, non-negotiable part of life. If you can sell your vehicle to avoid a loan payment, you may end up a lot more financially secure in the future.

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.

 Read More