Money Management

A person might shop at Costco for many reasons, but are they the “right” kind of customer? Read on to find out how you can tell if you are. [[{“value”:”

Recently, I’ve toyed with allowing our Costco membership to lapse. Now that our children are grown and there’s no Costco right around the corner, I rarely visit the warehouse store. Still, I believe it’s an excellent fit for some.

Just as it once served a need for my family, there are those for whom the $65 to $130 annual membership fee makes perfect sense for their budget. Here are four signs that you may be the ideal Costco member.

1. You buy in bulk

If you’re watching your budget closely these days (and who’s not?) and you buy in bulk, you can bank more cash by picking up the items you need at Costco. According to estimates, purchasing the food required to feed your household in bulk can save you up to 33% off shopping at a traditional grocery store.

2. You’re a planner

Buying in bulk doesn’t make a lot of sense for someone who flies by the seat of their pants at mealtime. Sure, toilet paper will last you for months, but that’s not true of eggs, carrots, and mayonnaise.

If meal planning also involves meal prep, you may be the ideal Costco shopper. Whether you tune into your favorite podcast, have a football game on in the background, or simply enjoy the silence, putting a week or two’s worth of meals together on a weekend afternoon is one way to ensure all your perishable items will be consumed.

If you routinely buy in bulk from Costco, click here to check out our picks for the best Costco credit cards.

3. You’re all about squeezing the last dollar from your budget

Man, I love to watch an organized shopper in action. If you’re one of those people who decides in advance what you’re going to buy and factors in how much you can save by earning money back on one of your favorite cash back credit cards, I’m fascinated by you.

Imagine you settle on a cash back card and shop at Costco once a month, spending an average of $150 in the warehouse and $50 at the Costco gas station on each trip. Let’s say the cash back card you choose offers 2% back on groceries. That’s $3 back with each weekly shopping trip or $156 back annually.

Your cash back card also gives you 4% off on eligible gasoline purchases, no matter where you fill up. Since you’re paying $50 per week, that’s $2,600 per year, and you would earn $104 back.

In addition, the card pays 3% cash back on money spent at restaurants and eligible travel. Let’s say you eat out twice a week, spending $30 each time. In total, you would pay $3,120 to dine out in a year and earn another $94 back.

Here’s a sample of what you could do with the cash back earned:

More than cover the cost of two weeks of grocery shopping.Tuck it away in a high-yield savings account.Save for a weekend getaway.

Insider tip: The next time you’re looking for the ideal card for your Costco spending, sit down with a cup of coffee (or another beverage of choice) and comb through our list of the best cash back cards.

Choosing a card that closely matches your spending is likely your best bet. For example, if you travel extensively, a cash back card that rewards you for travel-related purchases would be a nice choice. But if the bulk of your money goes toward everyday expenses, like groceries and gasoline, a card that offers generous rewards for grocery and gasoline spending can quickly build up a healthy cash back balance.

4. You enjoy the experience

I loved going to the grocery store when my boys were young. It was pretty much the only time I could be alone with my thoughts, and honestly, just remembering those solo trips to Hen House to pick up diapers or frozen corn makes me feel calm. Money was tight at the time, so some trips consisted of just wandering the aisles (which I still found relaxing).

My husband feels similarly about shopping at a warehouse store like Costco. From the moment he pulls into the parking lot, he’s in his element. If you enjoy looking around to see what’s new, picking up staples, and trying out samples, you may be the ideal Costco customer. If the experience is half the fun for you, it’s the perfect marriage of customer and retailer.

Costco is not for everyone, and that’s OK. Based on the number of Costco members worldwide, it’s a good fit for plenty of people. But if it’s right for you based on these signs, consider joining Costco (or simply renewing your membership) to save money on household goods and special purchases alike.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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.

“}]] Read More 

You may want to sell your home sooner rather than later for one big reason. Read on to see what it is. [[{“value”:”

There tends to be a clear relationship between mortgage rates and home buyer demand.

Case in point: In 2020 and 2021, buyers were clamoring to purchase homes when borrowing rates plunged to record lows. Back then, buyers were so eager that many were willing to purchase homes without even seeing them in person. And during that period, bidding wars were rampant, which drove home prices up even more.

But in 2022, mortgage rates started climbing. And for much of 2023 and 2024, the average 30-year mortgage was above 7%. That pushed many home buyers out of the market. The only reason it didn’t lead to a steep drop in home prices is that inventory remained sluggish during that time.

But there’s a good chance housing inventory will increase in the coming months. So if you’ve been thinking about selling your home, you may want to get moving ASAP.

Why you don’t want to wait too long to sell your home

In August, there was a 4.2-month supply of available homes on the real estate market, according to the National Association of Realtors. But it commonly takes a six-month supply to meet buyer demand.

Getting back to Economics 101, any time there’s a lack of supply, prices tend to go up. It’s for this reason that home prices are as high as they are today.

But as housing inventory increases and supply catches up to demand, home prices are likely to fall. If you want to sell for top dollar, the time to do so is the next few months.

Why is housing inventory expected to pick up? It boils down to mortgage rates. They’ve been falling in recent weeks, and they’re likely to continue falling as the Federal Reserve continues to lower its benchmark interest rate.

Higher mortgage rates have kept many sellers from listing their homes. But as rates fall, sellers are apt to be more willing to get new mortgages, which will only lead to more competition. So if you want to list your home at a time when there’s less competition, now’s your opportunity.

That doesn’t mean you have to list your home this month if you’re not quite ready to sell, or if your home needs repairs before you’re comfortable putting it on the market. But you may want to try to sell before the end of the year so you can benefit from a general lack of competition.

What about a replacement home?

The tricky thing about selling a home is that you’ll need a place to live once it sells. You may be worried about selling now because of the inventory issues just discussed. A lack of inventory gives you an edge as a seller — but it also makes it harder to find a replacement home.

Before you put your home on the market, do some research and make sure there are at least some available homes in your price range. If that’s not the case, then ignore the above advice and wait to sell. It’s not going to do you much good to get a good price for your home only to then wind up with no options for putting a roof over your head.

When selling now makes sense

If you do find that there are replacement homes in your target price range, selling now could be a good bet — especially if you’re downsizing. While you might pay more for a replacement home, just like a buyer might pay more for your home, if you’re downsizing, you could still come out a winner financially.

Say you sell your home for $30,000 more than what you might get during a market with more inventory. You might pay $10,000 more for a smaller home you downsize into. But in this case, you’re still gaining something.

Of course, even with downsizing, you might still need to borrow money to finance a home purchase. But the good news is that mortgages are already more affordable now than they were earlier in the year. And if you shop around for a great deal on a mortgage, you might eke out extra savings. Click here for a list of today’s best mortgage lenders and rates.

In fact, you may want to do your mortgage lender research before listing your home so you’re not left scrambling in case it sells quickly. That may be the case if it’s in great shape and you work with a real estate agent to price it just right.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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

“}]] Read More 

Need to shop for Christmas decor and other holiday essentials? Your Sam’s Club card can unlock savings. Find out which holiday deals are worth it. [[{“value”:”

Less than 75 days remain until Christmas, but don’t fret. There’s plenty of time to get ready for the season. Now is an excellent time to begin shopping for the upcoming holidays. Whether you’re ready to buy gifts for your friends and family or want to add to your holiday decor collection, Sam’s Club is a great place to shop for all things Christmas.

This is especially true if you’re a fan of saving money. The warehouse club has fantastic members-only deals that help you keep more money in your checking account. Ready to get into the holiday spirit? Let’s explore a few holiday deals you can shop at Sam’s Club.

1. Seven-foot Member’s Mark Linden Fir Slim Pre-Lit Christmas Tree: $139.97

If you want to transition to artificial tree life, Sam’s Club has many trees to choose from. One example is the seven-foot Member’s Mark linden Fir Slim Pre-Lit Christmas Tree, which costs $139.97.

It’s pre-lit and has multiple lighting settings. Reviewers appreciate how easy it is to assemble and that it includes a storage bag. For less than $150, you can get a quality, great-looking tree that will last many seasons.

If you love saving money all year round and not just during the holidays, click here for our top list of credit cards that offer big rewards.

2. Six-pack of Scotch Magic Tape: $9.98

When was the last time you stocked up on tape? If you’re running low, don’t wait to replenish your collection. By purchasing more tape from Sam’s Club, you can avoid the dreaded nightmare of running out of tape while gift wrapping on Christmas Eve.

Sam’s Club sells a six-pack of Scotch Magic Tape for $9.98. Each roll is 0.75 inches by 850 inches, so you’ll get a total of 5,100 inches of invisible tape.

Meanwhile, the most comparable item sold at Target is a six-pack of 0.75-inch by 800-inch Scotch Magic Tape for $15.19. By shopping at Sam’s Club, you’ll get more tape for less.

3. Member’s Mark Pre-Lit Classic 3-Wreath Door Hanger: $69.88

Sam’s Club has plentiful indoor and outdoor Christmas decorations for those looking to dress up their home in time for the holiday season. One holiday deal you may want to shop for is the Member’s Mark Pre-Lit Classic 3-Wreath Door Hanger.

This decoration features three wreaths, is battery-powered, and comes pre-lit to be displayed on your front door. With this purchase, you can get into the spirit and make your porch more welcoming. It costs just under $70 and has great reviews. This is an excellent buy because many individual pre-lit holiday wreaths cost $50 or more at other retailers.

4. Member’s Mark Shatterproof Ornaments: $34.96

Have you been meaning to replace some of the ornaments that broke and got thrown away years ago? This Sam’s Club Deal can save you from having a bare Christmas tree this season.

For $34.96, you can score a Member’s Mark Shatterproof Ornament Collection, which includes 76 ornaments and hooks. Each ornament is made from shatterproof material for added peace of mind, and various color options are available. You may want to take advantage of this deal if you’re long overdue to replace your Christmas tree ornaments.

Earn rewards when you shop at your favorite retailers

Taking advantage of deals like these is one way to save money. But shopping at warehouse clubs and discount retailers isn’t the only way to save big. Many shoppers use rewards credit cards to pay themselves back by earning credit card rewards.

With the right credit card in your wallet, you can earn rewards when you swipe your card at Sam’s Club and other popular retailers. If you’re not using rewards cards, you’re missing out.

Want to maximize your savings? Explore our list of the best rewards credit cards to discover how easy it is to earn rewards.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

“}]] Read More 

CD rates aren’t as high as they were a few months ago. Read on to see whether you should continue to buy them or not. [[{“value”:”

There’s a reason CDs have been such a popular choice among savers this year. For much of 2024, shorter-term CDs were paying around 5%. And considering that you’re not taking risks with a CD the same way you are with an investment portfolio, it’s hard to pass up a rate that generous.

But at this point, the days of 5% CDs are largely behind us. You might find a 5% CD if you look around. But for the most part, CD rates have dipped below 5% following the Federal Reserve’s interest rate cut that took place in September.

Not only did the Fed make a rate cut last month, but it’s expected to continue doing so repeatedly in the course of the next year. And that’s apt to lead to lower CD rates across the board.

So it raises the question: Should you stop buying CDs given the Fed’s rate-cutting plans? Or do CDs still make sense even if they aren’t paying as much?

There are still great deals to be had

If you missed the chance to lock in a 5% CD, you may be disappointed. But you should also know that CDs aren’t paying so much less than 5% these days. Check out this list of fantastic CD rates to earn a great return on your money.

If you have $5,000 to put into a 12-month CD, a 5.00% APY would give you $250. But if you’re only able to get a 4.50% APY, guess what? You’re looking at earning $225. That’s still a nice payday. And the $25 difference, while perhaps annoying, isn’t earth-shattering.

But while you shouldn’t necessarily shy away from CDs today, you should know that as the Fed’s rate cuts continue, CD rates are likely to keep falling. So if you have money to put into a CD today, open one now rather than wait. A year from now, we may be looking back fondly on the days of 4.50% CDs — and bemoaning the much lower rates we’re stuck with.

Is a CD right for you in the first place?

A CD is a great place to park some cash for a year, or even a few years. But if you have money you don’t expect to need for about seven years or more, then investing it is a better bet.

Because the Fed is expected to keep cutting rates, you should expect CD rates to become increasingly less competitive in the course of the next year. On the other hand, the S&P 500’s average annual return through thick and thin over the past 50 years is about 10%. And the Fed’s interest rate cuts may not have nearly the same impact on stock market returns as they do on CD rates.

In fact, if anything, the Fed’s rate cuts might lead to stronger stock market returns. Rate cuts could make it less expensive for companies to borrow money, thereby increasing their bottom line. And because rate cuts should lead to less expensive borrowing for consumers, too, spending might increase, leading to higher prices for some publicly traded companies.

So let’s say you have that $5,000 we discussed above. If it’s for a near-term goal, like buying a house in 2026 or 2027, then a CD is likely a good place to put it. But if it’s for your retirement, don’t settle for a 4.5% return or anything in that ballpark.

Instead, open an IRA and put that money to work in the stock market. If you score a 10% yearly return on your $5,000, in 25 years, you’ll have around $54,000, or roughly 11 times your initial investment. It’s hard to know what $5,000 might turn into if you put it into CDs over a 25-year period. But suffice it to say that it’s unlikely to be anywhere close to $54,000.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.The Motley Fool has a disclosure policy.

“}]] Read More 

Aldi is known for its low prices on groceries. But read on to see why shopping there might come back to bite you. [[{“value”:”

There’s a reason so many people love to shop at Aldi. The store is known for its super low prices, which can make sticking to your budget much easier.

But shopping at Aldi also has the potential to backfire on you. Here are a few surprising pitfalls you might encounter.

1. Changes to your shopping list might result in food waste

The reason Aldi is able to save shoppers so much money is that it stocks its shelves with off brands that are cheaper to purchase than the national brands you commonly see advertised. And if you’re able to find everything you need at Aldi, it could result in nice savings — especially if you check out using the right credit card. Click here for a list of credit cards offering top grocery rewards.

But on the flipside, if Aldi can’t source a given item at a price it’s happy with, it won’t carry it. This means that on a week-to-week basis, Aldi’s inventory can be very inconsistent. And if you’re unable to find all of the items on your list, it’s more than just an annoyance. Rather, it could result in wasted food — and thrown-out money.

Say your kids normally eat carrots and tomatoes as the healthy component of their dinner, but Aldi is out of those items one week. You may have to pivot and substitute broccoli and celery instead. But if your kids refuse to eat broccoli and celery, that food may end up going to waste. And in that case, you aren’t saving money at all.

2. You may not get all of the information on the products you’re buying

Because Aldi stocks off brands, some of its products may not contain the nutritional information you’re used to seeing on food labels. That could be a problem if you have dietary restrictions or allergies.

And sure, you could try to call up the manufacturers of those products and inquire about their contents. But do you really have the time to do that on an item-by-item basis? Probably not. The upside of buying national brands is that you’re almost always going to get a complete set of nutritional data and ingredients.

3. You might get suckered into the Aldi Aisle of Shame

Part of the appeal of shopping at Aldi is getting to check out the “Aldi Finds” aisle. That aisle contains seasonal buys that tend to be of the non-food variety. You might spot everything from cat toys to home decor at prices that are hard to resist.

But there’s a reason Aldi fans call that section the “Aisle of Shame.” If you shop at Aldi because you’re on a budget, being tempted by impulse purchases isn’t very helpful. And you’re not going to improve your financial situation by spending $15 less on groceries per week only to bring home $25 worth of Aldi Finds you didn’t need in the first place.

Aldi is a great store for people who have the time and patience to deal with its inconsistent inventory and who aren’t picky about the brands they bring home. But if that’s not you, you may want to avoid shopping there. And if impulse buys have the potential to upend your budget, then you should especially consider staying far away.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.The Motley Fool has a disclosure policy.

“}]] Read More 

Do you have a high-yield savings account and are worried about potential interest rate reductions? Find out why one writer isn’t too concerned. [[{“value”:”

Last month, the Federal Reserve cut the federal funds rate by half a percentage point. This benchmark rate is now 4.75% to 5.00%. When the federal funds rate changes, credit unions and banks tend to make adjustments to the interest rates for consumer products.

As expected, many banks have recently reduced rates for accounts that earn interest, such as money market accounts and high-yield savings accounts (HYSAs). My own bank recently lowered the rate for my HYSA. Here’s why I’m not too upset about this change.

My HYSA APY went from 4.20% to 4.00%

It’s crucial to be aware of the annual percentage yield (APY) for your bank accounts. The APY is how much you can expect to earn by keeping your cash in the bank for one year.

Knowing this rate can help you make informed choices about your money — like deciding whether to transfer your money to a different account with a higher APY to maximize the interest you earn or keep it where it is.

The APY for my HYSA recently dropped from 4.20% to 4.00%. While the rate is lower, it’s not a significant reduction. The difference in interest that I’ll earn isn’t enough to justify moving my savings elsewhere, so I’m not worried about this change, and my money is staying put.

Let’s explore a few hypothetical scenarios to illustrate how a 0.20% rate change like this impacts your earnings:

As you can see, the earnings difference is not big enough for me to feel the need to make drastic money moves. Plus, the rate is on par with what many other online banks now offer.

If you don’t have a HYSA, now is still an excellent time to open an account. You can reach your savings goals sooner by earning interest.

Ready to get rewarded for saving? Explore our list of the best high-yield savings accounts to find the right fit for you.

Savers can earn more with HYSAs

Even as rates change, HYSAs are still excellent financial vehicles for stashing savings. Many financial institutions, like national and regional banks, offer much lower APYs for savings accounts.

According to the FDIC, the national average for savings accounts is currently 0.46%. That’s a huge difference compared to the 4.00% my bank now offers me.

If you’re keeping your savings in your checking account or a savings account with a low APY, now is a good time to open a HYSA. By transferring your money to an account with a higher APY, you can maximize the interest you earn.

Don’t let interest rate cuts get you down

For some, interest rate reductions spell good news. Lower rates are beneficial if you apply for a car loan or a mortgage. However, for savers, reduced interest rates mean less interest earned from their savings.

But slight rate reductions won’t impact your savings significantly. If you have a HYSA, you’ll continue to earn more interest than you’d get from the average savings account. Don’t let an interest rate reduction get you down. Instead, focus on the long term as you keep working hard to reach your financial goals.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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.The Motley Fool has a disclosure policy.

“}]] Read More