Money Management

Costco memberships are a great deal, but store locations aren’t always convenient. Read on to find out how you can still save without a membership. [[{“value”:”

Having a Costco membership is a great way to save money on groceries and other household products. The discount warehouse club’s low prices, cheap gas, and other perks like low prescription drug prices can help anyone keep to a strict budget.

But what if you don’t live near a Costco? My local store is technically just a few miles from me, but it’s on a busy road with lots of traffic and is in the opposite direction of where I’m usually driving. That alone makes a Costco membership less of a draw for me.

If your local Costco store isn’t as convenient as you’d like, here are three great alternatives to help you stick to your budget.

1. Give Aldi a try

Thanks to Aldi’s simplicity and low prices, I’m an unabashed fan. I don’t like having too many options when I’m shopping, making Aldi’s no-frills experience ideal. Sure, you can’t get many popular brands that some people prefer, but you get really low prices in return.

A recent report from AARP found that Aldi is the cheapest grocery store, beating out Target and Walmart for the best prices. Aldi even cut prices on 250 of its items earlier this year to help relieve the pain of inflation for customers.

If you’ve never been to an Aldi store, you should know a few things about it before you go. First, you’ll need to bring a quarter to unlock a shopping cart. To help keep prices low, Aldi doesn’t have employees chasing down shopping carts in the parking lot. Instead, you return your own cart and get your quarter back.

Also, as I mentioned before, you won’t find some of the popular brands you might be used to at other stores. Instead, about 90% of Aldi’s items are under its own brand. I’ve rarely had any issues with the quality of products I’ve purchased.

2. Buy your household goods on Amazon

I’ve been an Amazon Prime member for years and can’t imagine not having the subscription. It costs just $139 annually (or $15 for a one-month membership), and you’ll receive Prime member discounts on products and free two-day shipping (and sometimes, shipping is faster).

My family frequently buys our household goods on Amazon, so we take advantage of the company’s Subscribe & Save option. Amazon’s Subscribe & Save gives you a discount of up to 15% if you set up a recurring order schedule. We use it for things we buy frequently, like paper towels, soap, and cereal.

We also have a Prime Visa credit card, which gives us unlimited 5% cash rewards on Amazon, AmazonFresh, and Whole Foods, and Chase Travel purchases with an eligible Prime membership. The cash back rewards we get each year more than cover the annual cost of a Prime membership.

3. Score deals at your local grocery store

Local grocery stores don’t always get the credit they deserve for saving customers money. Sure, prices are often higher than at Costco and other discount stores. But if you time the sales right, you can save big.

Publix is a large local chain in our area, and the store regularly has great buy one, get one free deals. My wife regularly plans her grocery store trips to Publix just for these BOGO deals, and we save money by (mostly) only buying the items on sale.

While shopping at Costco can save you lots of money, the store locations aren’t ideal for everyone. Thankfully, there are plenty of alternatives where you can save money. It might take a little more effort to track down a good deal, but a combination of shopping at Aldi, Amazon, and your local grocery store can help keep you within your budget.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, JPMorgan Chase, Target, Visa, and Walmart. The Motley Fool has a disclosure policy.

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Many mortgage lenders require a down payment, which can make it much harder to buy a home. But how big does this down payment really need to be? Find out here. [[{“value”:”

For many people eager to buy a house, there’s one big obstacle standing in their way. It’s not their ability to afford a mortgage, nor the challenges of finding a house when inventory is low. Instead, the problem boils down to this: an inability to save up a down payment.

Research from The Motley Fool Ascent revealed that 17% of all homeowners found saving up a down payment was the most difficult part of buying a property. For young millennials, this number was much higher, with a whopping 38% saying they struggled to save enough to put down.

It’s not just current homeowners who face challenges with this aspect of becoming a property owner, either. In fact, with research showing that 67% of millennials have no savings at all toward a down payment, it’s clear that down payment requirements are a major reason why many people aren’t able to move forward with a purchase even if they want to.

The big question, though, is how much of a down payment do you really need to buy a house? And the answer might surprise you.

Some lenders offer low down payment loans to help you become a property owner

Traditionally, the standard required down payment for purchasing a property was 20%. However, in today’s day and age, many people put down far less. Older millennials put down an average of just 13%, while younger millennials made 10% down payments on average. And, among all home buyers, the median down payment was 15%, according to The Motley Fool Ascent’s data.

Some lenders even allow less than these median amounts. The minimum down payment for an FHA loan is just 3.5% if you have a credit score of at least 580, and some lenders offering conventional loans (those not guaranteed by the government) will allow you to put down just 3%. Then there are VA loans, which don’t require any down payment at all.

With all these programs out there, you technically can buy a home with very little or nothing in your savings account to pay for part of your purchase. But just because you can do something doesn’t mean it’s a good idea.

How much of a down payment should you have to buy a home?

In a perfect world, you’d put down 20% to purchase a home. You’d do this because:

You’d have the broadest choice of lenders, so you could shop around to get the best deal.You’d likely be offered a better mortgage rate with a large down payment than you’d get if you had a smaller one.You are less likely to end up owing more than the home is worth, since you go in with a good amount of equity. This can help you avoid big problems like not being able to sell or refinance without bringing cash to the tableYou’ll avoid private mortgage insurance (PMI), which is insurance that lenders require you to pay for monthly as part of your mortgage payment to protect them if you put too little down.

Of course, saving 20% may be impossible in some parts of the country where home prices are very high. If you can’t save that much, it’s a good rule of thumb to try to put at least 10% down.

Many lenders offer 90% loan-to-value ratios so you won’t be limiting your options too much with this approach. And you’ll have a little buffer of equity, so you’re less likely to find yourself underwater even after covering closing costs and other transaction fees.

Plus, while you’ll still get stuck with PMI if you have a 10% down payment, you’ll also be closer to the day when you’ve paid down your loan enough to eliminate it. Generally, you can request that your mortgage lender remove PMI once you’ve reached 80% equity in the home. And mortgage lenders are required to cancel your PMI once your loan-to-value ratio reaches 78%.

Ultimately, the right decision about when to buy — and how much to put down — is a choice only you can make. But if saving 20% is feasible, you should do it, and if not, a minimum of 10% down can help you avoid putting yourself at big financial risk of disaster without delaying your homeownership date for too long.

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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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Many Americans do more than half their shopping online, but 44% want to cut back. Learn whether you need to get your online shopping under control. [[{“value”:”

Online shopping can be a fantastic way to save time and money. It’s convenient. Shipping is often free. And, you can use cash back apps and price comparison tools to find the best bargains. Sadly, the flip side to that convenience is that it’s extremely easy to overspend and lose track of your purchases.

Many Americans (around 60%) do more than half of their shopping on the internet. However, for some, online shopping brings additional stress. A recent survey from BadCredit.org showed more than 4 in 10 people want to reduce the amount they spend online.

Do you spend more or less than the average American?

The BadCredit report shows the average American spends $513 every month online. It also highlighted a worrying disconnect between perception and reality, spending-wise. The survey participants overestimated their online spending by over $100.

Here’s the BadCredit breakdown of Americans’ spending estimates:

Food and beverage: $167Clothes: $104Consumer electronics: $94Shoes: $80Self care: $53Home goods: $46

Know how much you spend

Look through your recent transactions to get a realistic picture of your spending. If you spend around $500, you’re in line with many other Americans. But that only tells us so much because our financial situations are all different.

What matters is how your spending fits into your wider financial picture, not the average American. To understand that, compare your online spending against your budget.

If you don’t have a budget, now might be a good time to make one. It doesn’t have to be complicated. A budgeting app can help if you’re not sure where to start.

Essentially, budgeting is about working out where your money goes, deciding if that’s working, and setting some targets around different categories of spending.

I spent a long time putting off making a budget. When I finally did it, I wished I’d done it sooner. My budget means I am in control of my money — whether I’m spending online or in person. On top of that, it helps me feel less guilty about spending, because I know exactly what my limits are in each area of life.

How online shopping can save you money

The best thing about shopping online is that price comparisons are a doddle. It is also easy to find coupons and special offers. You don’t even have to visit lots of online stores, because cash back apps like Honey or Rakuten will do the work for you. My browser extensions tell me the price history and whether there are better deals out there.

I also wait for big sales (such as Black Friday or Amazon Prime Day) when I want to buy big-ticket items. Shopping online means you don’t have to fight through crowds of people to snag some of the best bargains. Lots of online stores will highlight special deals in the run-up to sales.

It’s worth watching out for shipping and returns policies, as some of them aren’t as consumer-friendly as they used to be. If you’re paying $10 for shipping and only shaving a few dollars off the product’s cost, you might be better off going to the store.

What to do if you’re worried about your online shopping habits

The biggest difficulty with shopping online is that it doesn’t feel real. Cash already feels like a thing of the past in a lot of situations. But when you shop on the internet, it’s another step removed from, say, swiping your card in the store. That makes it way too easy to accidentally rack up a balance on your credit card.

Here are some ways to keep your online spending under control.

Track your online spending. Check in with your spending at least once a week so you know where your money goes. If you’re worried about overspending, use lists and try to stick to your budget.Keep a laser focus on what’s essential. Online shopping makes it super easy to give in to promotions and buy things we later regret. Before you hit the “Buy” button, ask yourself if this is something you need.Wait a few days before you buy. Another way to avoid impulse purchases is to leave items in your cart for a little while. If you still want them after mulling it over, they will still be there.Don’t store your credit card information. Online stores want to make it as easy as possible for you to spend. Forcing yourself to enter your payment details each time adds a little friction to the process.

Key takeaway

Shopping online isn’t inherently good or bad. What matters is whether you are living within your means and getting the best value from your hard-earned cash. If you’re worried about overspending, first take some time to review where your money goes. That way you’ll know if you need to make cuts and where you might make 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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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There may come a time when you decide a Costco membership is worth the investment. Find out why one writer decided to join the warehouse club. [[{“value”:”

I’m a first-time Costco member. Previously, I never felt it was necessary to join a warehouse club. I’ve been able to get all the essentials I need while shopping deals at retailers like Target. However, I made a change a few weeks ago and joined Costco for the first time.

Here’s why I finally gave in and joined Costco in 2024.

1. I want to get a better deal on pricey items

Now felt like a good time to join because my spouse and I are planning to make some purchases for our home, including upgrading some furniture and appliances, in the coming months.

I had previously spent time comparing product prices at other retailers and Costco.com. I felt confident we could keep more money in our checking account by getting these buys from Costco.

2. I can stay in my pajamas and shop deals from my couch

I love traveling the world — so much that I typically spend four to six weeks traveling internationally each year. But I’m a bit of a homebody when I’m not jetting around the globe. When shopping, I generally prefer to order what I need online.

While I have a Costco club within a 30-minute drive from my house, I plan to primarily use my Costco membership to shop on the retailer’s website. Doing this will allow me to save money on the purchases I need to make without having to throw on regular clothes and deal with people. As an introvert, that’s a major win.

And since I’ll shop online, I’ll use a cash back credit card to pay for my Costco.com orders. By doing this, I’ll earn cash back rewards. Explore our list of the best credit cards for Costco to see how you can be rewarded for your next Costco haul.

3. It’s a resource that can help me avoid overspending

I’m a big fan of saving money. I’m used to comparing product pricing online before making a purchase. I decided a Costco membership was worthwhile because it would provide another resource for me to compare prices across retailers.

When researching the prices on other retailer’s websites, I can now check Costco’s price to see if I can get a better deal thanks to my Costco membership card. My new membership has already helped me avoid overspending.

I made my first Costco.com purchase two weeks ago because an item I had planned to buy was available at a discount. I bought a multi-piece Pyrex storage container set for 50% off the retail price, thanks to a Costco promotion.

Had I not become a member, I would have spent $40 more for my new storage container set. It only took a few seconds to compare Costco’s price to other retailers’.

4. I saved money by taking advantage of a new member promotion

Since I didn’t feel a Costco membership was a must for me, I wasn’t in a big hurry to spend money on another yearly membership fee. However, I finally joined because of a membership promotion I purchased through StackSocial.

Thanks to this deal, I became a Costco member and received a free $20 Costco Shop Card. While I had to wait a week or two to receive my digital Shop Card, I treated this promotion as if it were a $20 discount on my first year of membership.

It felt like the perfect opportunity to give Costco a try without draining my wallet. So far, I’m pleased with my decision to become a member. If all goes well during my first year of membership, I may decide to renew again at the standard membership rate.

Is a Costco membership right for you?

If you want to save money when shopping and are open to paying an annual fee to access members-only discounts and deals, consider joining Costco. But before joining, review the benefits and consider your shopping habits to decide if it’s a good fit for you.

It costs $65 to $130 annually to be a Costco member. But if you get value from the perks provided, it may be worth joining. If you join and are unsatisfied, Costco has a membership guarantee. You can cancel and get your entire membership fee refunded.

Maximize your savings with credit card rewards

In addition to shopping Costco’s many deals, you can maximize your savings by earning rewards. Paying with the right credit card makes getting rewarded a breeze. Our favorite strategy to save money at Costco is using a rewards credit card at checkout.

Every dollar you save or earn adds up. Want to get rewarded when you shop? Click here to see our curated list of the best cash back credit cards that earn cash back when you swipe your card.

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.Natasha Gabrielle 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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Are you a new credit card user looking for guidance? Learn how to get the most from your credit cards while staying out of debt. [[{“value”:”

Credit cards are a convenient payment method that can help you build credit. But they should be used with care to maintain good financial health. If you’re considering applying for your first card or are a credit card newbie, you can benefit from reviewing some best practices.

Doing this can help you make informed decisions when managing your credit card usage and help you build healthy habits. Here are some tips that can benefit new credit card users.

1. Don’t spend money you don’t have

It’s best to treat credit cards just like debit cards. When you use a debit card, money is withdrawn from your checking account, you can only spend money you have. It’s wise to follow a similar approach when swiping your credit card.

If you spend beyond your means, you won’t be able to afford to pay your total balance off when your credit card bill arrives. Your credit card issuer will charge interest if you carry a balance. You can avoid expensive credit card debt by only spending what you can afford.

2. Always pay your credit card bills on time

It’s necessary to stay on top of your credit card payments. You should pay your bill on time every month. If you don’t, your credit card issuer will charge you late fees.

Another reason to pay your bill on time is to benefit your credit. If you miss payments or pay your bills more than 30 days late, you’ll end up with negative marks on your credit report — which doesn’t look good to creditors.

If you want to maintain a good credit score, on-time payments are a must. Why? Your payment history is recorded on your credit report and it makes up 35% of your FICO® Score. In fact, that’s the biggest part of your credit score. Be sure to prioritize on-time payments.

3. Unlock rewards with rewards credit cards

Rewards credit cards allow you to earn rewards when you swipe your card for everyday purchases. You can earn points, miles, or cash back, depending on the card you choose. Cashing out your rewards for travel purchases or a statement credit can feel like hitting the jackpot.

Keep in mind that if you have little to no credit history, you may need to use non-rewards cards for some time to build up your credit score before qualifying for a rewards card.

But as you build credit and establish healthy credit card usage habits, you can improve your credit score — which could make you a candidate for a rewards credit card.

Ready to earn valuable rewards with your credit card? Explore our list of the best cash back credit cards to learn how easy it is to get rewarded when you swipe your card.

4. Pay more than the minimum amount due

Here’s another tip: don’t just make your card’s minimum payment every month. As mentioned above, carrying a balance on your card will result in interest charges. According to the Federal Reserve Bank of St. Louis, the average credit card interest rate was 22.76% in May 2024. The best strategy to avoid paying a rate like this is to pay off the entire statement balance every time your credit card bill arrives.

If you don’t, as your account balance climbs, your debt will grow — making it harder to pay off. You can avoid debt and added stress by paying the entire statement balance.

5. Aim to use less than 30% of your available credit

You should also stay alert to how much credit you’re using. While several factors influence your credit score, credit utilization is one crucial marker. Your credit utilization ratio, or the amount of available credit you use, makes up 30% of your FICO Score.

Maintaining a low credit utilization ratio is a good move for your credit. Many experts recommend keeping your credit utilization ratio below 30%. Let’s imagine your card’s credit limit is $1,000. You’ll want to keep your balance below $300 to meet that suggested guideline.

Establish good habits from the beginning

These tips can help you manage your credit card usage with ease. As a new credit card user, you can set yourself up for success by establishing good spending and payment habits early on.

Don’t have a credit card? Regardless of age or life stage, it’s never too late to start using credit cards. If you’re ready to apply for your first card, explore the best starter credit cards to learn more. Reading and heeding the above tips can give you more confidence as a new credit card user.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.

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Women’s financial rights have a short history in America. Learn how building financial independence is paramount to your happiness and security. [[{“value”:”

Women are at a disadvantage when it comes to our financial literacy. The 2020 TIAA Institute-GFLEC Personal Finance Index found that 49% of women surveyed answered questions about personal finance correctly, compared to 56% of men. We especially struggle with comprehending risk and uncertainty, and so much of money management (especially planning for an uncertain future) deals with these skills.

To make matters worse, when we couple up, we’re often encouraged to combine finances with our partners and give up financial autonomy. Not having job skills, the ability to manage your own money, or access to a great checking account of your own can be a real problem if your relationship ends and you’re left without the financial support of a partner.

And if the relationship turns abusive, you could find yourself a victim of financial abuse — the National Network to End Domestic Violence found that financial abuse occurs in 99% of domestic violence cases.

In short, building financial independence is the best money move you can make as a woman. Let’s take a closer look at how you can do just that.

How to create a life no break-up can take from you

Your life is your own — here’s what to focus on to make sure you’re not left high and dry when a relationship ends or if you find yourself in an abusive situation.

Save and invest on your own

You should absolutely open your own savings and investment accounts to ensure your future is secure. And you have so many excellent options. One of the top-rated high-yield savings accounts can help you beat inflation and keep your emergency fund liquid.

And the best stock brokers offer investing accounts with low fees, useful mobile apps, and the ability to buy stock shares (even fractional shares), index funds, and more.

Build a career

Invest in yourself by pursuing education and building a career you can be proud of and that will let you cover your expenses and (ideally) save money for your future. This doesn’t have to be expensive, by the way — you can access free or low-cost learning opportunities on the internet, such as via LinkedIn Learning. Look for networking opportunities, like industry conferences, and make connections with people in roles you aspire to.

And don’t forget to research salaries to ensure you’re being paid fairly. The gender pay gap is still alive and well, and as of 2022, American women were still earning an average of $0.82 per $1 earned by a man. Don’t be afraid to change jobs or even careers to advance your life.

Learn as much as you can about personal finance

Good news: you’re already in the right place for this. We cover the money topics that impact your life here at The Ascent, and we review bank accounts, credit cards, and financial products of all kinds.

Consider speaking with a financial advisor if you need some help with budgeting, investing, or any of the minutiae of managing money. Meeting with a Certified Financial Planner™ when I was struggling with my finances was one of the best decisions I’ve ever made.

A caveat

None of this is to say that you should never combine any part of your financial life with a partner.

Let’s face it: Living in America is expensive, and as someone who happily lives alone, I recognize that my own existence would be cheaper if I was splitting my housing costs, auto insurance premium, and cellphone service plan with someone else.

That said, after two divorces, knowing that my finances are now independent of anyone else’s and my mortgage is in my name alone helps me sleep better at night.

I do highly recommend making the above moves, and only partly combining finances with another person. This could look like maintaining your own checking, savings, and investment accounts, but also opening a joint checking account that you can both deposit money into to cover shared bills.

Don’t let the fog of romance and the promise of “forever” lure you into giving up control of your own earnings and financial fortunes. Life turns on a dime, abusers charm you into letting your guard down, and even if your relationship is perfect now, you never know what the future holds. Protect yourself.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.

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