Money Management

Costco is one of the largest retailers in the world, but it’s not for everybody. Here are three signs a membership may not be worth it. [[{“value”:”

In terms of retail power, Costco is tough to beat. With 871 locations worldwide (as of July 2024), the warehouse giant boasts 71 million paid members and nearly 128 million total members.

Despite those eye-popping statistics, Costco is not suitable for everyone. Plus, even if you’ve been a member for years, keeping that membership indefinitely may not make sense. While everyone’s budget differs, here are three scenarios that may inspire a member to take a Costco break.

1. You rarely visit the store

If you’re paying for a Costco membership you rarely use, you could decide to put those funds to better use. Whether you’re paying $65 or $130 for an annual membership, that’s $65 or $130 that can be used to help build an emergency fund or pay off existing debt.

While some people have several Costco warehouses within driving distance of their homes, others must practically re-enact the Oregon Trail to get to their nearest Costco. And if distance isn’t an issue, an empty-nester parent may find that they don’t have the same need to shop at Costco as they did when their children were living at home.

Whatever the situation, if you rarely visit a Costco, it may be time to rethink the value of your membership.

2. You’re an impulse shopper

According to Capital One Shopping Research, impulse shopping is a widespread issue. Its research shows:

73% of Americans say the majority of their purchases are unplanned.89% of Americans admit to having some history of impulse buying.80% of consumers say they tend to shop impulsively in brick-and-mortar retailers.54% of Americans have spent at least $100 on an impulse purchase.The average American consumer has spent $281.75 per month on impulse purchases in 2024.The average American consumer makes 9.75 impulse buys monthly, averaging $28.90 each.

In other words, you’re not alone if you tend to impulse shop while visiting Costco. However, that’s cold comfort when finances are tight. If you’re living paycheck to paycheck or have trouble paying bills, it’s time to consider whether the money you save by shopping at Costco is greater than the money you spend impulsively.

3. You primarily shop on Costco.com

Shopping on Costco.com rather than in-store could make it easier to avoid impulse buys. However, because shipping costs are typically factored in, you’ll often pay more for an item online than in-store. Again, if your budget is tight, every extra dollar can help.

Online shopping makes perfect sense if you face challenges that make in-store shopping difficult. However, if you shop on Costco.com because you don’t have the time to get out and pick up groceries, it’s possible you’d be better off with free delivery from Walmart+.

A Walmart+ membership costs $12.95 per month, or $98 annually. And with Walmart+ Assist, anyone who receives aid from the following programs may be eligible to purchase a membership for $6.47 a month, or $49 per year:

SNAPWICMedicaidSSITANFTTANFNSLPLIHEAP

For some, a trip to Costco is like spending an afternoon in an amusement park. It’s an event they look forward to. For others, the idea of finding a parking space and jockeying for position once they’re inside the warehouse store fills them with dread. It takes all kinds.

Whether you adore your Costco membership or have sort of forgotten the card is in your wallet, it’s always a good idea to reassess the things you pay for. If your membership still serves you, that’s excellent news. If not, it may be time to take a break.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Dana George has positions in Walmart. The Motley Fool has positions in and recommends Cboe Global Markets, Costco Wholesale, JPMorgan Chase, and Walmart. The Motley Fool has a disclosure policy.

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CDs and savings accounts can both make great homes for your savings, but the right one for you depends on your needs. Here’s what you need to know. [[{“value”:”

After a few years of incredibly high rates, bank account APYs are expected to begin their descent within the coming weeks. The Federal Reserve is expected to initiate its first federal funds rate cut since 2020 this month, and bank account rates usually trend in the same direction.

You might be wondering about the best move for your money right now, and that depends a lot on your needs. Below, we’ll talk about two of the most common options — high-yield savings accounts and certificates of deposit (CDs) — to help you decide which is right for you.

High-yield savings accounts: Easy access, variable rates

Savings accounts are the best place for your emergency savings and cash you plan to spend in the next couple of years. These accounts place few restrictions on when you can access your cash.

A few banks still limit you to six free withdrawals per statement cycle, but this is no longer a federal requirement. Many banks today let you make more withdrawals and some even offer ATM cards so you don’t have to first transfer the funds to a checking account.

The downside to choosing a savings account for your cash is that their rates can change over time. This is a benefit when interest rates are climbing, as we’ve seen in recent years.

But now, with rates likely to fall throughout the rest of the year into 2025, it’s a drawback. You’ll likely earn less on your savings account funds over the next year than you did over the previous year, and there’s no telling exactly how low rates will go.

Choosing a high-yield savings account at least ensures you earn an above-average rate, even if they’re not near today’s highs. Many brick-and-mortar banks offer a 0.01% APY through good times and bad. But even when rates were at their lowest during the pandemic, high-yield savings accounts typically offered at least a 0.30% APY.

Certificates of deposit (CDs): Limited access, fixed rates

CDs could be more appealing for cash you don’t need to spend in the next few years. Interest rates on these accounts are generally fixed at the time you open them, and they remain this way for the entire CD term. This could be months or years, depending on the account you choose.

Opening a CD right now could help you earn a higher rate of return than you could with a high-yield savings account over the same period. But this isn’t a smart move if you think you may need to access your cash before the CD term is up.

You can take money out of a CD early, but you generally must withdraw all your funds at once. You’ll also face an early withdrawal penalty equal to several months of interest payments. This could even cost you some of your principal if you withdraw the funds shortly after opening the CD.

If you decide to open a CD, compare CD rates from several banks and choose yours carefully. Pay attention to the early withdrawal penalty and make sure you’re comfortable with this. Some CDs also have minimum deposit requirements that may prevent those with small balances from opening one.

It doesn’t have to be one or the other

If you’re having a tough time deciding, you may want to split your savings between the two. Put some money in a high-yield savings account where you can access it as needed and put the rest in a CD so you can hold onto those high interest rates.

You may want to act quickly if this is your strategy, though. Bank account rates could fall within weeks and this could limit the rate you’re able to lock in on your CD.

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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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Costco offers so many perks and discounts, it’s hard to keep track of them all. Find out which five you might be missing out on. [[{“value”:”

Costco is more than just a bulk buys warehouse. It’s an airplane hangar filled with pretty much everything a modern person could want: electronics, games, clothing, furniture, jewelry, mattresses. You name it, and nine times out of 10, Costco sells it.

The sheer variety of products and services can make it challenging to take advantage of all of it. Veteran Costco members are likely saving hundreds and hundreds per year simply because they’ve learned the ropes and know what services to take advantage of. If you’re not there yet — or could use some help — here are five little-known perks to keep in mind.

1. Free technical care for electronic devices

Costco’s electronics are typically low priced and come with a wide 90-day return window. But what most members don’t realize is that Costco’s electronics also entitle you to free technical and troubleshooting support through its Concierge Service. This can really come in handy if you buy products that are notoriously stubborn or fail frequently (like printers).

What’s more, you get technical support indefinitely. This differs from other retailers, like Apple, which gives you support for a set amount of time after your purchase, like 90 days.

2. Easy rental car booking

If you dread renting a car, Costco’s rental car service might give you a new experience. Through Costco Travel, you can compare prices for multiple car rental companies online. The prices are honest, and car rental has no cancellation fees.

The experience won’t be flawless per se — since you still have to deal with the rental company in person — but Costco makes it a lot easier to compare rentals than doing the work yourself.

P.S.: If you’re an Executive member, you’ll get 2% in cash back on your rental.

3. Haggle-free car buying

Another little-known perk: Costco can help you buy a new or used car.

If you’re in the market for a vehicle, Costco’s Auto Program could be a convenient service. Costco pre-negotiates prices on cars at local dealerships. This eliminates one of the most stressful parts of buying a car: haggling. Plus, Costco members can get up to 15% off of parts, service, and accessories (maximum of $500 in savings per visit) at participating service centers.

4. Discounts on moving truck rentals

Moving homes — whether to a new state or just down the road — isn’t cheap. A local move could cost between $882 and $2,558, according to Home Advisor, while cross-country moves cost $2,404 to $6,864 or more.

Costco can help members cut some of this cost by offering a 25% discount on the retail rate of a Budget truck rental. Trucks can be as large as 26 feet and the promotion also includes a free additional driver, which would normally cost about $13 to $65 per day. Combine this with a top credit card for Costco and you could save some of that moving cost money for new furniture or home appliances.

5. Virtual care

Finally, you can save on virtual care appointments when you book with Costco’s partner, Sesame. The following are some healthcare services you can get at a low (Costco) price.

As you can see, a Costco membership entails more than just $4.99 rotisserie chickens and $1.50 hot dog combos. Those, too, are great deals, but Costco’s services, like those mentioned above, can save you as much as a membership costs — sometimes more. These are just a few of the many Costco savings tips that can help you maximize your membership and save more on your monthly expenses.

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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.The Motley Fool has a disclosure policy.

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Don’t assume you must dump a ton of money into a new small business. Read on for a few ideas that come with lower upfront costs. [[{“value”:”

Starting your own business comes with many hurdles, and for many people, the costs involved could be a big stumbling block. According to research by CB Insights, the biggest reason startups fail is that they ran out of money (or failed to raise new money) — this was a reason for 38% of new business failures.

With this in mind, let’s look at a few business ideas with lower upfront costs — getting to leave more cash in your checking account could take a load off your mind when you’re just getting started as your own boss.

Home or office cleaning

OK, it might not be the most glamorous option for starting your own business, but it’s satisfying work (maybe I just enjoy doing chores?), and there’s always a need for it. Plus, hiring yourself out as a cleaner for houses and office spaces comes with very little in the way of upfront costs.

You’ll need to buy cleaning supplies and tools (and hey, joining Costco could come in handy here, to help you source cleaning solutions in bulk for less), of course. And you’ll need to market your services — social media can go a long way, as can testimonials and reviews from satisfied customers. Consider offering a lower rate for your services for friends and family and see what kind of buzz you can generate.

Outdoor maintenance

Love being outside? Consider starting a lawn care and outdoor maintenance business. I’m a new homeowner, and after I closed on my mortgage, I went in search of someone to mow my lawn every week, because I have no interest in doing it myself. Based on the number of lawn care company vehicles I routinely see in my new neighborhood, many of my neighbors feel the same way.

You’ll need the equipment for this, such as a mower, weed whacker, and edger. You can even turn this into a four-season business if you live somewhere with all four seasons and you’re willing to put more money into start-up costs — you can buy a snow blade for your pickup truck for around $2,000. And if you’ve got a green thumb and an eye for it, you could offer landscape design services, too.

Don’t forget to market your business — social media works well here, but I found my lawn-mowing service thanks to an outdoor sign I saw when driving around my city. So if you know someone with land you can use (or you own land in a prominent spot), consider this move.

Digital content creation

This is a broad category of business, encompassing writing and editing (which is what I do), graphic design, video production, and more. But if you have these in-demand skills, you might be able to hire yourself out to generate content for fellow businesses. Freelance and fully digital opportunities abound on Indeed, LinkedIn, and FlexJobs.

Your upfront costs here are likely minimal, depending on whether you have a computer and software (if needed) suitable for this kind of work.

When I was launching my freelance career, I knew my puny personal laptop wouldn’t be right for the kind of daily work I’d be doing. So I sourced a refurbished desktop computer from the manufacturer and managed to save myself several hundred dollars in the process. I recommend going this route for computers and related equipment, if you can.

Repair services

Handyperson skills are incredibly valuable to people of all kinds, especially homeowners who don’t have a landlord to call if something breaks. If I need to make a minor repair to something in my home, I can certainly Google and possibly find a YouTube video showing me how to do it, but I never have any confidence that I won’t make the problem worse.

If you already know how to do things like install a ceiling fan, hook up a refrigerator water line, or unclog a kitchen sink, you probably have many of the tools you’ll need to get your business off the ground. If you don’t, spend some time on Craigslist, Facebook Marketplace, or even driving around to weekend yard or estate sales. You might be able to scoop up tools for cheaper than buying them new.

Don’t forget those marketing costs for this one, too — no one can hire you if they don’t know you exist. Testimonials from satisfied clients and social media advertising can be good routes, as can having sturdy yard signs made that you can ask homeowners to put on their lawns if you’ve recently completed a job there.

Starting your own business doesn’t have to come with a business loan to purchase expensive equipment or buy a building. Lean on the skills and interests you already have, and try one of these business ideas on for size to keep your costs low.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet and Costco Wholesale. The Motley Fool has a disclosure policy.

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Everyone is speculating about the coming interest rate cuts, but who do they really benefit? Find out who needs to refinance in September. [[{“value”:”

The word on the street is that my bestie Jerome Powell is about to announce a cut to the federal funds rate at the next meeting of the Federal Reserve Board. Although the federal funds rate doesn’t directly affect mortgage rates, they do tend to move with it, so potential borrowers can likely plan on seeing rates drop further in September.

For current homeowners, though, it’s a bit of a mixed bag. A drop in rates at this point could spell savings for them, or it might just be a lot of cost for a very small gain. Here are some borrowers who should definitely talk to a mortgage lender as interest rates fall.

1. Anyone who borrowed at a 7% interest rate

Most of the people who borrowed their mortgage with an interest rate of around 7% did so between October 2022 and July 2024, though there were certainly several rate dips in that range, too. With such recent purchases, it may make sense to refinance, especially if you plan to stay in your home long term.

But a refinance will generally cost between 2% and 5% of the new loan balance. So, not only do you reset the clock on your mortgage interest (more on that later), you also have to find a breakeven point for when the refinance actually pays for itself and stay on the right side of that. Your best-case scenario comes with paying your note in full.

Let’s say you bought a house using a 30-year fixed-rate mortgage for $300,000 with 5% down at a rate of 7.00% in November 2022. Right now, in September 2024, you’d owe $274,048 in principal to the bank. You borrowed $285,000 initially, so you’ve not made a lot of progress on the principal yet, but you’ve paid $35,919 in interest.

If you pay this mortgage in full for its lifetime, you’ll have paid a total of $397,000 in interest to the bank. However, if you refinance at 6.00% today, and pay the rest of the principal off over 30 years, you’ll pay $317,452 in interest, plus the sunk cost of the first mortgage’s interest, $35,919, which comes to a grand total of $353,371 in interest paid.

Even adding the cost of the refinance into the mix, let’s use 5% as a figure for a worst-case scenario, you’re adding just $13,702 to the total interest for both, bringing the grand total to $367,073, almost exactly $30,000 less than if you kept your original mortgage.

2. People who got an FHA loan with less than 10% down

These people are also possibly in a position to do well when interest rates fall. They knew when they bought their house that they’d have to sell or refinance eventually, or they’d pay mortgage insurance for 30 years, but with rates staying stable, there’s not been much of an incentive to do so in the last couple of years.

They can’t shake their mortgage insurance until their note is at 80% of the value of their home, but this can come from either paying down the mortgage (the old fashioned way) or experiencing booming real estate inflation (a way that’s been common recently). This often won’t happen until you’ve been in your home a while, which may mean that this theoretical FHA note has a 3% mortgage, and that likely won’t make sense to refinance in the near future.

But as rates drop, a refinance gets a lot better looking, on paper and in the vibe check arena. Let’s say rates drop to 5.50%, rather than just 6.00% — maybe someone with a 3.85% rate would be OK making that move. After all, they’re losing mortgage insurance in the deal.

For a borrower who was today refinancing their original 3.85% mortgage of $237,500 from September 2019, they could expect to have just $214,288 remaining in principal. Their base mortgage payment for the existing note was $1,209, including the mortgage insurance.

The refinanced mortgage payment at 5.50%, is $1,216, but there’s no mortgage insurance to be seen. Effectively, that payment remains the same, even with the mortgage insurance removed.

If they had paid a lifetime of mortgage insurance, it would have totaled an extra $20,847. Even if it costs about half of that to do the refinance, they’re still significantly ahead to refinance away their mortgage insurance if they’re staying in their home.

Refinancing is a strategic move in all rate environments

No matter when you choose to refinance your home, you have to look at the numbers, as well as how it makes you feel. Does it feel bad to go from a 3.00% note to a 6.00% one? Of course. But it doesn’t always mean it’s a bad financial move, depending on the other pieces on the money board.

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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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Backyard chickens can help reduce the variability in the price of eggs. Find out if this is actually a way to lower your grocery costs. [[{“value”:”

Chicken chatter is in the air once again, with the price of eggs and their breaking of budgets making the complaint circuit on social media. If eggs are so expensive, then why not just raise your own chickens? After all, many municipalities already allow a few backyard chickens, and how hard can it be, anyway?

I raised chickens for years and years, including small backyard flocks and large farm flocks, so it got me wondering — do they really save you money?

For us, owning chickens ranged from a whimsical decision to a practical one — on the farm we sold chicks to the neighbors, and composted their droppings for the vegetable garden. In the city, it was just nice to kind of keep that same rhythm as we had on the farm, albeit at a much smaller scale.

Plus, chickens are interesting pets — so long as they live outside.

Which came first?

There are a few things you need to make an egg, the most important being a female chicken. But having a female chicken isn’t enough — you must feed her and house her, too. She needs water and, often, electricity to heat the coop through the winter. Although just a couple of chickens will be perfectly happy in a doghouse with a very large run, housing for a chicken can be as simple or as elaborate as you want to make it.

Most of the time, when you buy a chicken, it’s a baby chicken, because, frankly, they’re cute, and also they’re easy to ship. You might be able to get adult chickens locally, but there is a ton of variability at that point, and a lot of questions about disease status and age, since chickens go through various periods of more and less egg production in their lives.

So, let’s talk about baby chickens.

To buy a baby chicken, you’re going to drop $4 to $6 or so at Tractor Supply Co. or your nearest hatchery. I grew up in Lebanon, Missouri, so when I owned chickens, nothing but the famous Cackle Hatchery would do. But if you don’t want to ship your babies, Tractor Supply Co. will work in a pinch.

But you can’t just buy one chick, they must have friends, so make sure you’re prepared to take at least three home. Assuming you’ve begged, borrowed, or stolen the things you’ll need to raise baby chicks at home, the biggest recurring expenses you’ll have are food and bedding.

What does it cost to make an egg?

Chicken feed for babies costs almost nothing because they’re babies who weigh less than a wiffle ball. But as they grow, the food bill grows, and did I mention that they won’t lay their first egg for several months, or longer if you start them in the fall? You can expect four or five months of feeding birds that are hapless layabouts.

Food for chickens varies based on their life stage, but let’s focus on layer feed, which is what you’ll mostly feed your birds for the rest of their lives. A 25-pound bag of feed costs about $15.50 directly from Purina (your local feed store may be cheaper). For a full-grown, average laying hen, that’s about 100 days of meals at $0.15 a day, or about $13.50 per month for three.

Bedding is also not so bad, depending on what you choose. I always used pine horse bedding because I could later spread it around my plants as mulch. An eight cubic foot bag of that runs about $15.

How much you’ll need will depend heavily on your coop size, but assuming you just have three birds and you change or add a new layer of bedding every two weeks to a doghouse-sized coop, you might have four to six bedding changes in that bag (the more you use, to a point, the better you’ll keep the smell down). So, bedding, let’s say, is $2.50 every 14 days.

So, for three birds, for a month of existing with basic needs, you’ve spent about $18.90 so far. A chicken can lay one egg every 25 hours if she’s really going strong (much fewer in the winter, depending on the breed). So for a lovely month of June, you’ll get about 86 eggs between your young trio, or about seven dozen eggs. This may go down to as few as zero eggs in the winter, though.

For June, it’s not bad at all — about $2.70 per dozen. The Federal Reserve’s most recent measure of average egg prices was $3.08 per dozen.

Other costs for chickens

$2.70 per dozen is a great price for pasture-raised, cruelty-free eggs, there’s no doubt about it. But that’s not all there is to pay for. Your hens will need to be dewormed, they’ll need veterinary care, you’ll have additional costs from watering them and keeping them warm in the winter. Plus, you’ll pay for their house, their fencing, and their feeders.

So, do backyard chickens save you money? Maybe. If you already have their care and feeding in your budget, raising your own hens can help offset fluctuations in egg prices that even Costco isn’t immune to, but you also have to consider that your time is worth something.

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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.Kristi Waterworth 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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