Money Management

This writer is pledging to stay loyal to Costco. Read on to find out why. [[{“value”:”

Paying for a warehouse club membership is an obvious win for me. As a family of five, my household goes through a lot of groceries and cleaning supplies in my house, and buying in bulk makes it easy to save on many of them.

Now as it happens, I joined Costco about 18 years ago because my husband was a member at the time. And I’ll admit that in all these years, I’ve never given Sam’s Club a chance because I’ve been happy with Costco from the start.

That said, Sam’s Club is a bit cheaper. A basic membership at Sam’s Club costs $50 a year, while a Plus membership costs $110. At Costco, the basic (Gold Star) membership costs $60, and I pay $120 for my Executive membership, which offers 2% cash back on my purchases.

At times, I’ve actually thought about giving Sam’s Club a try. But here’s why I don’t see myself canceling my Costco membership to join Sam’s Club instead.

1. There are certain products that I can only find at Costco

Although I frequently buy Bounty paper towels at Costco, you can get them at just about any supermarket or big-box store. But there are some items I buy regularly from Costco that you can’t get elsewhere.

I happen to love Costco’s bakery muffins. And each fall, I eagerly await the return of the pumpkin streusel variety. If I leave Costco, I give up my beloved muffins, which I can’t imagine doing.

There are also a few specific Kirkland snacks I happen to enjoy, like the Signature Cashew Clusters I snack on all year round. Sam’s Club may have a nice selection of snacks, but it doesn’t carry Kirkland products, since those are Costco’s signature brand.

2. The location is more convenient

The nearest Costco warehouse to where I live is about seven to 10 minutes closer than Sam’s Club. That may not seem so important, but trust me, it is.

Saving myself time on the road each week frees up that much more time for me to do my job. When you’re a freelance worker who gets paid on a per-project basis, every little bit of extra time at your desk counts.

And also, I don’t enjoy dealing with traffic. So sticking with Costco means experiencing less of it.

3. Costco has a slightly better return policy

Most of the items I buy from Costco end up being keepers. But it’s comforting to know how easy it is to bring back items I no longer want or that don’t meet my needs.

To be fair, Sam’s Club’s return policy is fairly similar to Costco’s. But Both stores, for example, give you 90 days to return electronics and major appliances. But Sam’s Club only gives you 14 days to return cellphones, whereas with Costco, cellphones fall under the general electronics policy. This happens to be important to me right now because this summer, we need to shop for new cellphones for my kids.

Also, Sam’s Club has the following instructions on its website for returning items to a store: “Return your item with your receipt to the Member Services desk at any Sam’s Club location.”

You’d think this would be fairly uncontroversial, but it’s the “with your receipt” part that gets me. I’m not good about keeping receipts. And with Costco, you don’t have to. I’ve made plenty of returns without a receipt, and the store employee just looked up the item based on my membership ID number.

Now I’ll admit that I don’t know how strictly Sam’s Club enforces the whole receipt policy because I’m not a member. But if you really do need a receipt to get refunded, I’d be in serious trouble with a Sam’s Club membership.

I’m happy where I am

All told, the main reason I won’t give up my Costco membership is that I’m more than satisfied with it. And I also can’t find a way to justify having a membership to two warehouse club stores at the same time.

None of this, however, is to say that Sam’s Club doesn’t offer plenty of value in its own right. And if Sam’s Club is much closer to your house or the lower-cost membership is helpful given your financial situation, then it could pay to choose Sam’s Club over Costco. But I don’t see myself joining Sam’s Club unless something at Costco changes drastically for the worse.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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.

“}]] Read More 

Inflation is not great for savers as it eats into the value of your funds. Find out how CDs and other savings accounts can help you stay ahead of inflation. [[{“value”:”

Let’s say you’d tucked $500 away in a drawer 10 years ago. You’d still have that money today, but inflation means it wouldn’t go as far. Indeed, data from the Bureau of Labor Statistics (BLS) shows you’d only get $400 worth of goods or services at today’s prices. Your buying power would have decreased by a whopping $100 in the past decade.

There are a few ways you can beat the inflation boogeyman. If your money is sitting in a drawer (or bank account) and not earning much interest, take it out and consider investing it in a CD. Here are three ways you might use CDs to stay ahead of cost-of-living increases.

1. Pick a high APY

In essence, beating inflation means making sure your money earns enough interest to offset its dwindling buying power. If the APY on your savings is higher than the rate of inflation, you will come out ahead. That would have been nigh-on impossible to do back in 2022 when inflation peaked at over 9%.

But today, you can earn over 5.00% APY on some of our top CD picks. That’s more than enough to offset the current rate of inflation. Prices in April were up 3.4% from the year before, according to data from the BLS. That’s slightly lower than the previous month, and supports reports that inflation is slowing.

2. Use a CD ladder

The common wisdom is that investing in CDs doesn’t make sense in times of high inflation. There’s a risk you might trap your money in an account that isn’t earning enough to keep up. Unlike a high-yield savings account, you’ll need to commit your money to a CD for the full term or pay an early withdrawal penalty to withdraw it before the end of the term.

Even worse? If interest rates rise, so will the APYs on savings accounts. Not only might your money not earn enough interest to offset higher living costs, it also won’t be earning the best available rate. It’s a double whammy. Particularly as it isn’t unusual for both things to happen. One of the ways the Fed can tackle inflation is to increase interest rates.

For example, let’s say you’d opened a 5-year CD in 2020 earning an APY of 1.00%:

Your APY would have been way behind inflation. You’d have lost buying power on that money when inflation skyrocketed in 2021 and 2022.When the Fed increased rates, you would not have been able to take advantage of the attractive APYs.

A CD ladder doesn’t solve this problem completely, but it does give you more flexibility. Laddering CDs essentially involves splitting your money between multiple CD terms of different lengths. You might open a 1-year CD, a 2-year CD, a 3-year CD, a 4-year CD, and a 5-year CD. As each one matures, you can choose what to do with that money. If there are higher APYs available at that time, you can take advantage of them.

3. If inflation is increasing, consider a variable-rate CD

CDs with variable interest rates are unusual. These are also called flex CDs. Their APYs are not fixed and can go up or down during the CD term. Flex CDs only really make sense if you think interest rates will rise even further. It mitigates the risk of being stuck with a lower APY when rates are increasing.

Variable-rate CDs are a useful tool to have in your arsenal in times of high inflation. But that’s not the scenario we are looking at right now. Inflation is coming under control. Most experts are waiting for rates to fall, though it isn’t clear exactly when that will happen.

Savings accounts and CDs are paying high APYs, and it’s very unlikely they will go up much more. If you open a variable-rate CD now, you’re tying up your money in an account that’s likely going to pay a lower APY over time. Moreover, you’re missing the opportunity to lock in a high fixed rate.

Key takeaway

Inflation appears to be slowing and interest rates remain high. That presents an opportunity for savers to stay ahead of the inflationary boogeyman. If you have money you may need in the short to medium term, see if you can lock it into a CD with a high APY for a term that suits you. Any rate that’s higher than the current rate of inflation will stop cost-of-living increases from eating into your nest egg.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 

Allegiant Air charges a surprising fee that many customers pay without realizing. Here’s what you need to know about it. [[{“value”:”

Flying is a lot more expensive than it used to be, and I’m not just talking about ticket prices. There are loads of other junk fees airlines tack on these days that can price people out of flying altogether.

Poking around in an airline’s fee schedule can sometimes help you avoid these fees, though. Doing this taught me a simple way to save on Allegiant Air flights, though it might not be an option for everyone.

You’re paying extra for convenience

How you book your flights affects your ticket prices on Allegiant Air. Most of us book online these days because that’s easiest for us. But many don’t realize there’s a $22 electronic carrier usage charge per passenger, per segment for doing this.

That’s pretty steep. A family of four flying Allegiant Air with a four-flight roundtrip (two flights each way) would pay a total electronic carrier usage charge of $352. And that’s above and beyond the cost of the ticket itself, plus other fees, like baggage fees and seat selection fees.

How to get around it

The best way to get around Allegiant Air’s electronic carrier usage charge is to book your tickets at an airport that Allegiant Air operates out of. Yes, it’s annoying, but it can reduce the strain on your bank account quite a bit.

Those who decide to do this may want to research when Allegiant flights are leaving the airport that day so they can plan around them. Try to choose a time when there aren’t likely to be a long line of passengers trying to check in and drop off their luggage. This can reduce your wait and minimize your inconvenience.

If you’re not able to visit an airport to purchase your ticket, you can try booking your Allegiant Air flight by phone instead. There is a call center booking fee for doing this, but it’s only $14.99. Returning to our family of four example from above, booking over the phone would only cost them about $240 — a $112 savings. Again, it’s inconvenient to do this. But the savings could make it worth it for some.

How to avoid as many junk airline fees as possible

Here’s a closer look at some common junk airline fees and how you can avoid them:

Checked bags fee: If you don’t have a travel rewards credit card that exempts you from paying for checked bags on a certain airline, you could try to limit yourself to taking just a carry-on. These are free on most airlines.Seat selection fee: Allow the airline to randomly assign you a seat for free unless you really need a particular seat.Change/cancellation fees: Wait to book until you are certain that you’ve found the flight you want. If you do need to change or cancel your reservation, do so as quickly as possible. Some airlines may not penalize you for changes made within 24 hours of booking.

This isn’t an exhaustive list. If you’re interested in what other fees an airline might charge you for, check out its website for more details on its fees, particularly fees listed as optional. That’s where I learned about Allegiant Air’s electronic carrier usage charge, which might not seem all that optional to those who habitually book flights online.

If you ever have questions about an airline’s fees, it’s best to reach out to that airline directly. Ideally, you can do this before you’ve purchased a ticket — so you’re not locked in to surcharges you weren’t aware of at the time of booking.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 

Flying these days costs a lot more than the price shown on your ticket. Here’s one costly airline fee that’s getting way out of hand. [[{“value”:”

I’m old enough to remember the days when all checked bags on flights were free, meals were complimentary, and you could be reasonably sure your bags would make it to your destination. Oh, how the times have changed.

Rising ticket prices are already enough for flyers to contend with without junk fees and costly inconveniences. But there’s one fee in particular that has gotten especially out of hand, with one airline charging up to $900 per person. Fortunately, it’s not too difficult to beat once you know how it works.

This is the epitome of a junk airline fee

Back in the day, airlines used to enable you to choose seats on all of your flights when you checked in at no charge. This was useful for groups of people, especially families with young kids, who wanted to keep everyone together. It was also a plus for solo travelers who wanted to stay out of the dreaded middle seat.

Then airlines got greedy and they realized they could charge customers for this privilege they’d been enjoying for free for decades. This practice has become widespread over the last several years, and it’s taking a toll on consumers.

The airline with the highest fees I found while researching was Spirit, which charges as much as $900 to customers who want to reserve one of its big front seats in advance of the flight. Even choosing a regular seat on Spirit could cost travelers as much as $200. That’s per person and per flight. If you have layovers, you could wind up draining your bank account to reserve your seat on all your flights.

For most people, the fees aren’t that bad. Average seat selection costs range from $10 to $15, but a lot depends on the seat you want and the airline. The time of year you’re flying and the destination could also affect these fees. If you’d rather avoid them altogether, there’s a simple solution.

How to avoid paying seat selection fees

You aren’t required to choose a seat when you check into your flights. If you don’t, the airline will randomly assign one to you. Those who go this route will avoid the seat selection fee, but there’s a chance they wind up in an undesirable seat, like the middle of a row at the tail end of the plane. For many, though, this small inconvenience is worth the savings.

However, there are a few times when it makes sense to pay the extra. If you’re traveling with young children and the airline you’re flying with doesn’t have a policy that automatically places children with at least one parent, you probably want to pay a little extra to be sure your child isn’t seated alone.

You might also want to pick your seat if you have a very short layover and need to disembark quickly to make your next flight. Those with travel rewards credit cards that help them save on their tickets or baggage fees also may prefer to choose their own seats, since they saved in other areas.

It’s ultimately your choice. Just know it’s a choice that’s not easily undone. The airline won’t give you your money back if you regret paying for a seat. And if you don’t choose a seat, you’ll get stuck with whatever the airline assigns you. You may be able to change this at the gate, but it’s not a guarantee. So weigh both options and decide which you’re comfortable with before you check in for your upcoming flight.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 

Unsure which Sam’s Club membership is best for you? See some overlooked perks of the pricier Plus membership and find out which benefits you may love. [[{“value”:”

Want to trim your spending when buying groceries and household goods? A warehouse club membership lets you access member-exclusive deals that could save you money. Many shoppers effectively honor their budgets thanks to warehouse clubs like Sam’s Club.

Sam’s Club has two membership options to choose from: Club ($50 per year) and Plus ($110 per year). A Plus membership includes more benefits that can improve your shopping experience.

Let’s review some of the most overlooked perks included with a Sam’s Club Plus membership so you can decide if investing in a premium annual membership is worthwhile.

1. Shop early to beat the crowds

Being a Sam’s Club Plus member can help you avoid crowds. Plus members can visit during early shopping hours before the retailer opens to all shoppers. Exact hours vary by club, so check with your local club to learn more. This benefit could make your shopping experience less stressful and reduce your time spent at the club.

2. Most online purchases ship for free

Of course, you can shop at your local club. But you can also order items to be shipped directly to your home using the Sam’s Club website or mobile app. If you’re a Sam’s Club Plus member, most items ordered online qualify for free shipping.

Club members can also benefit from free shipping, but the items eligible to ship for free are quite limited. Items marked “Free Shipping Plus” ship free for Plus members. By taking advantage of this valuable perk, you can keep more money in your checking account.

3. Free curbside pickup

Here’s another membership perk you may not realize exists: curbside pickup. You can purchase eligible items using the Sam’s Club website or mobile app and pick up your completed order at your local club. You don’t even have to leave your car.

This is a free service available to all Sam’s Club Plus members. Regular Club members can use this perk but must pay $4 per order. Items that qualify for this service are marked as “Pickup.”

Here’s how to use this service:

Add eligible items to your curbside pickup order.Complete the checkout process and pay for your order.When your order is ready, park in a Curbside Pickup spot and check in using the mobile app.A staff member will bring out your order and load the items into your car.

How to decide if a Sam’s Club Plus membership is right for you

If you’re working hard to reach financial goals, you might consider joining Sam’s Club to shop deals that help you keep more money in your pocket. If you’re unsure whether a Club or Plus membership is the best option, review the benefits provided and compare membership fees.

While the extra perks of a Plus membership can provide value, they won’t be of interest to everyone. You should also assess your budget to decide if the more costly membership fee is something you can afford.

Here’s one final tip: Use a credit card that earns rewards when you shop. You can earn cash back when swiping your credit card to pay for everyday essentials. Review our list of the best cash back credit cards to learn more about the benefits of these rewards credit cards.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 

It’s possible to save the equivalent of your salary by age 30. Take a look at how to get there. [[{“value”:”

If you’re in your 20s, you probably can’t even imagine being retired, right? Heck, at this point, you may be working toward your first promotion. The idea of not having to work at all may read like a foreign concept.

But while you certainly don’t have to start picturing retirement in your 20s, you should absolutely start saving for it. In fact, Fidelity recommends having the equivalent of your annual salary in retirement savings by age 30. So to pull that off, you clearly can’t wait until you’re 30 to start saving. Instead, you’ll have to start earlier. But with the right approach, hitting that milestone may be more than doable.

What can having 1x your salary by age 30 do for you?

If you manage to save the equivalent of your salary by age 30, you’ll be giving yourself a solid foundation you can build on for the rest of your career. You’ll also then have the flexibility to take a few years off from savings if need be — say, if you decide to leave the workforce for a few years to raise kids or decide to take a sabbatical.

The Bureau of Labor Statistics puts the median weekly wage of workers aged 25 to 34 at $1,080. That’s about $56,000 a year when we multiply that sum by 52.

So let’s say you have $56,000 in your individual retirement account (IRA) by 30, and you never add a dollar more. If your investments in that account generate an average annual 10% return, which is consistent with the stock market’s average return over the past 50 years, then by age 65, you could be sitting on $1.57 million.

Now to be clear, this is not a recommendation to save a bunch of money by age 30 and call it a day. You should aim to continue saving regularly well beyond that point.

The point, however, is that if you manage to accumulate enough money to match your salary by that age, there’s a great chance you’ll end up with more than enough money to buy yourself the comfortable retirement you deserve. And again, you’ll also buy yourself the flexibility to scale back on savings in future years should your financial situation change.

How to save 1x your salary by 30

Saving the equivalent of your annual salary by age 30 might seem like a tall order. But it’s surprisingly doable if you set money aside for retirement as soon as you begin collecting a paycheck. If you begin working full time at age 22 and sock away a little over $400 a month between then and age 30, that brings you to $56,000 if your portfolio delivers a 10% return during that window.

That’s why it’s so important to get into the habit of automating retirement plan contributions from the moment you start getting paid regularly. If you get used to collecting a larger paycheck, you’re more apt to spend the money rather than save it. If you send $400 or so into a retirement plan from the start, you’re likely to forget about that portion of your earnings — which is a good thing in this context.

Another trick to get to 1x your salary by 30? If you have a 401(k) plan with an employer match, contribute enough to snag your free cash in full. The $400 monthly contribution we just talked about could actually only mean putting in $200 a month from your own paycheck if your employer kicks in the equivalent as part of its matching program.

Saving 1x your salary by age 30 might seem hard. And it’s not an easy thing per se, since it means parting with some of your earnings and earmarking them for a goal that’s way off in the future. But if you make that effort, it could be your ticket to the retirement of your dreams.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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 no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More