Money Management

Getting a jump on your holiday shopping could save you money. Read on to see if it pays to get started before October comes to an end. [[{“value”:”

At this point, a lot of us are busy finalizing our Halloween costumes and stocking up on candy to hand out to trick-or-treaters. If the winter holidays aren’t yet on your radar, that’s understandable.

It’s common for people to hold off on holiday shopping until events like Black Friday arrive. And waiting until late November to begin shopping for the holidays isn’t necessarily a poor decision. But here’s why you may want to get started sooner — as early as late October, in fact.

1. You don’t want to miss out on great deals

It’s a big myth that you’ll find the best prices during big events like Black Friday. In reality, retailers discount their products all the time. And it’s common for retailers to run sales ahead of Black Friday to drum up business earlier on in the season.

In the past, for example, Costco has been known to release pre-Black Friday specials in the weeks leading up to the big event. And other big retailers commonly do the same.

If you have a list of holiday purchases you know you want to make, start shopping around now. You may find bargains you weren’t expecting.

At the same time, though, make sure you’re using a credit card that offers great rewards so you can pocket some cash in the process. Click here for a list of the best cash back credit cards.

2. You don’t want your top buys to sell out

If you wait until Black Friday to do your holiday shopping, you risk having the more popular items on your list sell out. If you know there’s a certain toy your child really wants or a gadget your spouse is jonesing for, you might pay a little bit extra to buy it this month instead of waiting for it to go on sale. But if you can afford the higher price, it may be worth it to forgo the $10 or $15 in savings if it means snagging the one item your loved one truly wants.

And remember — those doorbuster deals you commonly see on Black Friday are very limited in quantity. So be honest with yourself. If you’re not going to get up at the crack of dawn to wait in a line to grab those deals, then you might as well try to scoop them up now, while they’re in stock.

3. You don’t want to make the process more stressful than it needs to be

Holiday shopping can be stressful, between finding the time and coping with the expense. If you get started this month, you’ll have more time to tackle your list and research deals, thereby reducing your stress.

Plus, starting your shopping now might lower your financial stress. Say a few items on your shopping list end up being more expensive than planned. If you start shopping now and realize that, you’ll have time to pick up some work on the side to make up for your increased holiday budget.

If you wait until late November to first start shopping and realize you can’t afford your list as easily as you thought, you’ll have fewer options. And at that point, you risk falling into the trap of holiday debt — which will make those gifts cost even more when you add interest charges.

It’s normal to put off holiday shopping until Black Friday. And there is something to be said for enjoying the latter part of October before worrying about the winter holidays. But you may find that starting your holiday shopping in the coming week benefits you in more ways than one.

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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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The days of 5% CDs may be over, but that doesn’t mean CDs are a poor choice. Read on to see why now’s still a great time to open one. [[{“value”:”

The Federal Reserve lowered its benchmark interest rate in mid-September. And it’s expected to continue lowering it in the coming year.

That’s good and bad news for consumers. On the plus side, it should lead to cheaper credit card and loan interest rates. However, CDs and savings accounts are already paying less interest than they were a couple of months ago. And that trend is only likely to continue.

In fact, you may have noticed that CDs are no longer paying 5% like they were for much of 2024. And that’s certainly a bummer.

But that doesn’t mean a CD is a bad idea today. Here are a few great reasons to open one now.

1. CD rates are still pretty competitive

You may not be able to find a 5% CD again anytime soon. But if you look around, you might find a CD paying 4.5%, or 4.25%. And while that’s less than 5%, it’s not so much less.

For a $1,000 deposit, a 12-month CD at 5% earns you $50. The same CD at 4.5% earns you $45. And sure, an extra $5 would be nice, but it’s not exactly a life-changing sum.

Plus, if you shop around, you might find a CD that pays close to 5%, even if you’re not quite able to get 5% on the nose. Click here for a list of the best CD rates today.

2. CD rates are likely to keep falling in the coming year

Today’s CD rates aren’t much lower than the rates we saw earlier in the year. But as the Fed continues lowering its benchmark interest rate, CDs are likely to start paying less.

By early 2025, you may not be able to lock in a CD at 4% or more. So if you like the idea of opening one, do it now.

If you’re saving for a goal that’s a few years away, you may want to consider a 24- or 36-month CD. A two- to three-year period isn’t enough time to invest your money, because you may not have an opportunity to ride out a stock market decline. So if you’re planning to buy a home or car in a few years, you may want to park some of the cash you’re saving for it in a CD so you can make some extra money on it.

3. A CD may motivate you to leave your money alone

Savings accounts aren’t paying so much less than CDs today. And with a savings account, you get the flexibility to withdraw your money whenever you feel like it.

But CDs have a couple of advantages over savings accounts. First, with a CD, your interest rate is guaranteed. With a savings account, your interest can — and is likely to — fall in the coming months as the Fed continues making rate cuts.

Also, CDs typically charge a penalty for withdrawing your money before they mature. With a savings account, you can take a withdrawal at any time.

But that’s not necessarily good if you’re pushing yourself to leave your money alone for a specific goal. With a CD, you may be more likely to stay on track because you’ll commonly face a costly penalty for taking your money out early — this will cost you some or all of the interest you’ve earned, and you may even lose some of your principal if you haven’t had the CD open long.

You may be sad to see 5% CD rates disappear. But that doesn’t mean you can’t still benefit from a CD. It pays to look around for a great deal and open one while rates aren’t too far off from 5%.

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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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The Fed’s interest rate cuts could benefit your finances — or hurt them. Read on to see why. [[{“value”:”

When the Federal Reserve opted to make its first interest rate cut in September, economists weren’t surprised. The Fed was expected to lower interest rates in response to cooling inflation.

The only aspect of that meeting that was a bit surprising was the fact that the Fed lowered its benchmark interest rate by half a percentage point, as opposed to a quarter of a point. A half-point cut is considered pretty aggressive. And in light of that, there’s a good chance the Fed will opt to make another half-point rate cut when it meets in early November.

At first, you might assume that the Fed’s rate cuts aren’t something you need to know or care about. But they actually have the potential to impact your finances in different ways — for better and worse. Here are two benefits and drawbacks you should know about.

Pro No. 1: Cheaper borrowing rates

Although the Fed doesn’t set consumer interest rates directly, when it lowers its benchmark interest rate, borrowing rates tend to follow. What this means is that as the Fed continues to cut rates, it could get a lot less expensive to sign a personal loan or finance a car. You may also find that a mortgage costs you less.

Of course, it’s always a good idea to shop around for the best rates when you’re looking to borrow. For example, you can click here for a list of the best personal loans if you have a large purchase you need to finance over the next few years.

But all told, you may find that you’re able to borrow more affordably in the coming months, especially if you have a good credit score.

Pro No. 2: Cheaper refinancing rates

If you signed an auto loan or mortgage last year, you may have paid up due to the fact that borrowing rates have been elevated. And if you’ve been struggling to make your payments, here’s some good news. Not only are borrowing rates expected to come down in the coming months, but refinancing an existing loan should also be more affordable.

So let’s say you signed a 30-year mortgage last year at 7.2%. The average 30-year mortgage rate as of this writing is 6.44%. But by early 2025, you may be looking at 6% instead. And if that’s the case, refinancing your mortgage could result in lower monthly payments and a lot of savings on interest over time.

Con No. 1: Lower savings account rates

Of course, there are downsides to the Fed’s rate cuts. One example is that in the coming months, savings accounts are likely to start paying less interest. If you have your emergency fund in your savings account, don’t move it out of there and over to a CD in anticipation of lower rates. You need to keep that money somewhere safe, and a savings account fits the bill.

But do look around for a better savings account rate if you find that yours drops a lot in the near term, or that it’s dropped a lot already. Check out this list of the best savings accounts to see if there’s a better home for your money.

Con No. 2: Lower CD rates

Just as savings account rates are likely to fall in the coming months, so too are CD rates. You’ll need to decide if a CD is worth it to you based on where rates land as a result of rate cuts.

As a general rule, a CD is a great place for money you’re saving for a short-term goal, while investing is a better bet for money earmarked for long-term goals. The good news, though, is that CD rates are still pretty competitive right now, even after the Fed’s large September rate cut. You may want to open a CD sooner rather than later, though, since rates are only likely to go down from here.

All told, the Fed’s interest rate cuts have the potential to be a mixed bag for your finances. It’s important to know how they might impact you so you can make smart decisions to benefit from them.

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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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Want to spend less at the pump? Read on to see how your Amazon Prime membership could lead to major savings. [[{“value”:”

There are certain expenses in your budget you may be able to eliminate, like streaming services or meal delivery kits. But putting gas in your car is an expense that’s unavoidable.

If your tank is empty and you need your car to get to work, it’s a problem. So if you rely on your car to go places, you have to fork over money for gas, no matter what.

But if you’re an Amazon Prime member, you’re in luck. Thanks to a new benefit, you may be eligible for big savings on fill-ups.

A very welcome perk

Amazon Prime costs $139 a year, but in exchange, you get benefits like free shipping on orders of any size and access to streaming content. Now, Prime members can link their accounts to earnify™ and then use the earnify™ app to find fuel stations in their areas that offer a discount on gas.

All told, you’re looking at saving $0.10 per gallon regardless of the grade of fuel you purchase for your car. And that benefit doesn’t max out at a certain number of gallons, so if you drive a lot, you can save big.

Amazon says that Prime members can save almost $70 per year on fuel costs. When you look at it that way, you’re basically getting back half of your annual Prime membership fee.

Other ways to save money on gas

If you’re already an Amazon Prime member, you might as well take advantage of the option to save on gas. But if you’re not a Prime member and don’t think you can justify the $139 annual fee, you’re not out of luck. There are other steps you can take to lower your fuel costs.

Join Walmart+

For one thing, Walmart+ members can save $0.10 per gallon of gas at select stations as well. And an annual Walmart+ membership is only $98 per year, compared to $139 for Amazon Prime. Walmart+ also gives you free shipping for online orders, plus free grocery delivery with any $35 minimum order and access to streaming content with Paramount+.

Fuel up at Costco

Another way to save on fuel involves maximizing your Costco membership. Not only does Costco offer some of the cheapest gas in town, but its fuel is TOP TIER™ certified, which means it could lend to better performance.

Change your habits

Making changes to your driving habits could also result in fuel-related savings. If you have colleagues who live nearby, set up a carpool. And if your work schedule is flexible, play around with different off-peak commutes. If you’re not stuck in traffic day in, day out, you might burn through less fuel (plus, avoiding traffic could work wonders for your mental health).

Use the right payment method

Finally, be sure to swipe the right credit card when you fill up your tank. Check out this list of the best credit cards for gas rewards so you can earn extra cash back on fuel purchases.

It’s pretty neat that Amazon is offering savings on gas for Prime members. But there are also plenty of other ways to reduce your fuel spending — and add more money to your savings account instead.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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, 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. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

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