Money Management

Sometimes, you go to Costco for groceries and come home with a $250 purchase you regret later. Here’s my story. [[{“value”:”

Shopping at Costco can be a bit of an adventure in that you never know what you’re going to get. And growing up, adventures were typically billed as a good thing — as in, “we’re going on an adventure to the library” so that my siblings and I wouldn’t complain about the same old outing week after week.

But while I love the idea of a shopping adventure in theory, sometimes, it’s not so great for my savings account. I learned that the hard way a few years back when I spent about $250 on a Costco purchase that wound up collecting mold in my garage and eventually being given away.

When temptation gets the better of you

I’ve been a Costco member for about 18 years — basically, as long as I’ve lived out in suburbia. And my usual Costco routine involves me loading a shopping cart with groceries, household supplies like paper towels, and bulk medications, vitamins, or supplements.

Sometimes, an extra item will make an appearance on my shopping list. I often turn to Costco for low-cost winter accessories because my family members (myself included) are constantly losing gloves. And not so long ago, my husband researched TVs and came to the conclusion that Costco had the best deal on the type he wanted, so we specifically added that item to our shopping list that week.

But often, the non-standard items I buy from Costco aren’t planned purchases — they’re impulse purchases I make on the spot. And years ago, I basically threw my money away on an unplanned purchase that cost around $250: an inflatable kayak.

The purchase made sense in theory. My husband and I love to kayak, so we figured an inflatable one would be easy enough to lug around. That way, we could avoid having to constantly rent kayaks from different outlets.

The problem, though, is that we didn’t research our purchase at all. I saw inflatable kayaks on sale at Costco, so we bought one. It wound up being a complete waste of money. And to make matters worse, we sat on that purchase for so long that we weren’t even able to take it back for a refund.

An impulse purchase gone wrong

I have my fair share of experience paddling in a traditional kayak. I have much less experience paddling in a flimsy inflatable kayak. And our Costco purchase didn’t meet our needs because I didn’t feel steady out on the water.

Also, we decided to be cheap and buy a tandem kayak, thinking we’d just share it. That, too, was a mistake. Up until that point, my husband and I had each always taken our own kayak out on the water. And we realized very quickly that we preferred things that way.

Now we technically had recourse after realizing that our kayak wasn’t going to work out — we could return it thanks to Costco’s generous policy. Costco will basically take anything back, with few exceptions. Only we neglected to properly dry out our kayak, and we left it to grow mold in our garage all summer long. By the time we got back from an extended vacation and were ready to tackle the return, we felt there was no way we could reasonably bring the kayak back. (I mean, Costco probably would’ve given us our money back, but it felt like the wrong thing to do.)

In the end, we wound up giving the kayak to a local friend who was up to the task of cleaning and using it. But I learned an important lesson — never buy expensive things on a whim. It’s much better to take the time to do your research than jump into a decision and regret it.

Of course, I won’t take 100% of the blame for the kayak incident. I also blame Costco for enticing me with its competitive price point. Oh, who am I kidding? Of course it’s all my fault. But I will say, I haven’t made a large Costco impulse purchase since the kayak incident.

Sure, I’ve brought home a giant seasonal cheesecake on a whim. And I’ve definitely bought my fair share of snacks I didn’t need. But the saving grace is that these were items with a $20ish-dollar price point or less, and they largely all got eaten. It’s been a long time since I made a multi-hundred-dollar Costco purchase out of the blue — because thankfully, I learned my lesson all those years ago.

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 

Amazon announced that Prime members will continue to receive a complimentary Grubhub+ subscription as an ongoing perk. Here’s how this perk can save you money. [[{“value”:”

Many shoppers become Amazon Prime members to help stretch their money further. This subscription can unlock Prime-exclusive deals, fast, free shipping perks, and members-only sale events. Plus, Amazon has continued to add more perks to increase the value provided to members.

The online retailer recently announced that it would provide a complimentary Grubhub+ subscription to Prime members as an ongoing membership benefit. Find out how this Prime perk could save you money on delivery fees the next time you order takeout.

Free Grubhub delivery is here to stay for Prime members

In 2022, Amazon introduced its partnership with Grubhub. The company said it would offer Prime members a year-long Grubhub+ membership for free as a Prime perk. In 2023, the companies announced that Prime members would receive an additional one-year subscription.

Grubhub+ is a paid subscription that can help people save money on food delivery orders. It offers $0 delivery fees on eligible orders over $12, reduced service fees, and a 5% credit back on pickup orders. This subscription could provide value to those who regularly order food delivery.

Here’s the latest update: On May 30, 2024, Amazon stated that this benefit is here to stay — on an ongoing basis. Shoppers can continue to use Grubhub+ while they remain Prime members. Grubhub+ costs $9.99 monthly, so this benefit is valued at $120 a year.

But that’s not all. As an added convenience, Prime members in the United States can now place Grubhub orders on Amazon.com or through the Amazon mobile app — eliminating the need to use the Grubhub mobile app when you’re feeling hangry.

According to Amazon, Prime members have saved millions of dollars by using Grubhub+. The retailer noted that those who place at least one order a month save an average of $300 annually on delivery fees and promotions thanks to Grubhub+. If you order delivery several times a month, this Prime perk could save you hundreds of dollars annually.

Is an Amazon Prime membership worth $139 a year

Are you on the fence about whether to join Amazon Prime? Prime costs $14.99 a month. You can save money by enrolling in an annual subscription for $139 a year — a savings of more than $40 annually when you commit to annual billing.

But before joining Prime, you should review the perks provided to ensure you’ll get value from a membership. If you shop online often, you’ll likely benefit. Free shipping and members-only discounts and promotions can help you keep more money in your checking account.

However, you should always consider your finances. Only become a Prime member if the subscription cost fits your budget. If you want to reduce your spending, you may want to hold off on joining Prime until you make more financial progress. Otherwise, you may be tempted to shop more often than necessary, which could harm your wallet.

If you struggle with overspending, the best budgeting apps can help you stay on track. These tools can show you ways to reduce spending to free up more income for other financial goals. They can also make setting budget goals and tracking your progress easier.

But for those who feel comfortable with the subscription cost and who regularly place online orders for everyday goods, a Prime membership can be well worth the cost, thanks to the value provided by the plentiful membership perks.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

“}]] Read More 

If you deposit $10,000 into your bank account, the bank must prepare a Currency Transaction Report. Find out what this means for you. [[{“value”:”

Depositing $10,000 into your bank account probably isn’t something you do everyday. But it can happen if you come into a large amount of money at once, say because you sold a car or a rich old uncle gave you a very nice holiday gift.

When you do deposit such a large sum, you should be aware that it’s going to result in some extra paperwork. Fortunately, it’s not your responsibility to do that paperwork. It’s also usually nothing to worry about, unless your behavior raises suspicions with the government.

Here’s what you need to know about making a $10,000 deposit, along with some tips to help you avoid having the Feds show up at your door.

The government wants to know if you’re putting a lot of money in the bank

If you make a deposit or a withdrawal of $10,000 or more in your checking account, this triggers a requirement under a law called the Bank Secrecy Act. Under the law, your bank must fill out a form, called a Currency Transaction Report, which it files with a division of the U.S. Treasury called the Financial Crimes Enforcement Network (FinCEN).

The Currency Transaction report will include some details that your bank collects and verifies from you. Specifically, your name, Social Security or taxpayer ID number, account number, and deposit details will be sent over to FinCen.

This will not impact your bank account, the time it takes for your bank to clear your deposit, or really much else about your life. Most banks have automated the process, and those that haven’t take care of it manually without you having to do anything special.

The purpose of the requirement isn’t to stop you from making a big deposit, but instead to catch suspicious activity such as money laundering or other criminal activities. If you aren’t engaging in those behaviors, you can pretty much forget the bank even had to file the paperwork and just move on with your life.

Don’t try to avoid the reporting requirement

Now, you may not be comfortable with Uncle Sam getting a report of your bank deposits even if you’ve done nothing wrong. But don’t be tempted to try to get around the reporting requirement by breaking up your $10,000 deposit into a series of smaller ones.

If you do, you’re actually breaking the law and engaging in something called structuring. Banks can be pretty good at spotting this, and when they do, they’ll file a Suspicious Activity Report (SAR) to FinCen. This can trigger an investigation that can cause you a lot more hassle and potentially even lead to consequences for trying to evade reporting requirements.

Your bank doesn’t have to tell you when it filed a SAR either, so you may not know until you’re getting some uncomfortable questions from federal officials.

Rather than risking trouble, just make your full $10,000 deposit when you need to as long as you aren’t committing any financial crimes. Once you’ve deposited it, you may want to consider buying a certificate of deposit (CD) with it if you don’t have other plans and won’t need the money for a while. CDs are offering pretty competitive rates right now, and $10,000 is a pretty big chunk of change to leave in your checking account.

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 

Your credit score has a big impact on your financial life. Keep reading to see where yours stands — and how to increase it. [[{“value”:”

If you’re a normal human (as opposed to a personal finance writer, like I am), it’s likely that you don’t give much thought to credit scores. This is a mistake, however — credit scores are an important part of Americans’ financial picture. Yours has a major influence on how much you’ll pay to borrow money, whether you can set up utility services without making a deposit, and more.

Let’s take a closer look at Americans’ credit scores and why they matter. And read to the end for a few important tried-and-true tips to boost your credit score, if it needs some work.

The data is in

Credit bureau Experian has new information on credit score averages from 2023 — and the news is good. Overall, the average FICO® Score in the U.S. is up by one point, from 714 in Q3 2022 to 715. And the numbers for FICO® Scores by range are encouraging, too — just 28.7% of Americans have a credit score in the “poor” or “fair” range (300–669). That means that most people are sitting pretty at “good,” “very good,” or “exceptional” (670–850).

FICO® Scores, specifically, are one of the most popular scoring models — when you apply to borrow money (such as via a credit card, personal loan, or a mortgage), it’s overwhelmingly likely that the lender will check your FICO® Score. This score is based on five factors:

Payment history: 35%Amounts owed: 30%Length of credit history: 15%Credit mix: 10%New credit: 10%

What can a “good” (or better) score do for you?

Your credit scores matter in a big way for your finances, even if you don’t intend to borrow money. In some places, your credit is checked in the process of getting hired for a job or buying car insurance. If you sign up for utility services at your house or apartment, you might have to pay a deposit to get electricity or water turned on if your credit score is too low.

If you intend to borrow money, your credit score matters even more because it has a direct impact on the interest rate you’ll pay — and with a lower credit score, you may not be approved at all. Many of the best credit cards, for example, are targeted to applicants with “good” or better credit scores.

And at a time like now, when interest rates are up across the board thanks to the Federal Reserve’s attempts to deal with inflation, having a stronger credit score can be even more crucial to have any hope of saving money when you borrow. I just bought a house, and while I’m paying a higher interest rate than I wanted, based on the ultra-low rates available in recent years, I shudder to think how much more I’d be paying for a mortgage without a high credit score.

How can you boost your credit score?

A higher credit score can have a positive impact on your budget when you can borrow money without paying a punishingly high interest rate. As someone who pulled her credit up from “fair” to “exceptional” over the last several years, it’s not a great feeling to apply for credit without knowing if you can even be approved — let alone get a decent interest rate.

My own path to a credit score over 800 involved the following moves — I highly recommend making them if you can.

Pay all your bills on time: This is the easiest way of ensuring good (or better) credit — payment history is the biggest part of your credit score. Lenders want to see that you have a track record of paying back borrowed money.Pay down existing debt: I paid off all my debt in 2022 (and now I’m deep in the hole again, thanks to that brand-new mortgage), and I saw a 100-point increase to my credit score in the process. Even if you can’t systematically snowball your debt like I did, paying just some of it off will help — the amounts you owe creditors represent 30% of your FICO® Score.Keep old accounts open: Closing old credit cards shortens your credit history, which can impact your credit score. The longer your history of successful credit management, the better your score.Open new accounts sparingly: With a higher credit score, the credit card world is your oyster. But resist the temptation to open new accounts frequently — every time you do, you lose a few points on your credit score when the card issuer runs a hard check on your credit.

It’s great news that more Americans have higher credit scores. If your own isn’t quite where you want it, focus on the above moves to raise it — and enjoy lower borrowing costs and a greater chance of approval.

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

“}]] Read More 

Laddering CDs is a great strategy. Read on to see why it’s an especially smart idea right now. [[{“value”:”

There are two big benefits to opening a CD instead of sticking to a regular savings account. First, CD rates tend to be higher than savings account rates because you’re making a commitment to keep your money in the bank.

Also, CD rates are guaranteed for the duration of the term you sign up for. If you open a 12-month CD with a 5.00% APY, you’re guaranteed that much interest over that year. On the other hand, your savings account could be paying 4.30% now, but that could change to 3.90% in a few months’ time.

But there’s a downside to opening a CD, and it’s being forced to keep your money in the bank for its duration or otherwise risk a penalty for removing your money early. The extent of that penalty will depend on your bank. But as an example, one big bank charges a penalty of three months of interest for an early withdrawal of a 12-month CD term or shorter.

That’s why laddering your CDs is such a great strategy. With a CD ladder, instead of putting a lump sum of money into a single CD, you split your money up and open multiple CDs with varying maturity dates. The idea is to make sure that a portion of your money is freeing up every few months, thereby making it less likely that you’ll get stuck with an early withdrawal penalty.

You may be wondering if building a CD ladder makes sense at a time when interest rates are likely to fall. But the answer is, absolutely. In fact, a CD ladder could be especially beneficial right about now.

Why a CD ladder works today

The reason today’s CD rates are so strong is that the Fed spent much of 2022 and 2023 raising interest rates to slow inflation. To be clear, the Fed only sets the federal funds rate, which is what banks charge one another for overnight borrowing. But when that benchmark interest rate rises, CD rates (and rates for other consumer products, including loans) tend to follow suit.

But because inflation has cooled considerably, the Fed is expected to start cutting interest rates this year. And once that happens, CD rates could follow in the same direction.

It’s for this reason that you may want to open your next CD now, while rates are still strong. And you should also consider a CD ladder to not only reduce your chances of an early withdrawal penalty, but to lock in a great rate on a longer-term CD while you can.

Say, for example, the bank you’re exploring has a 4.25% APY on a 6-month CD, a 5.00% APY on a 12-month CD, a 4.45% APY on an 18-month CD, and a 4.00% APY on a 24-month CD. If you’re positive your emergency fund is all set and you can afford to part with a sum of money — say, $10,000 — for up to the next two years, then you can split that sum into four and open a series of $2,500 CDs maturing in six months, 12 months, 18 months, and 24 months, respectively.

This strategy works because a portion of your money is freeing up every six months. But also, you’re locking in a higher interest rate on a couple of longer-term CDs while rates are still up overall.

To put it another way, while you might snag a 5.00% APY on a 12-month CD today, in a year from now, the best you may be able to get for that term is 2.50% or 3.00% — we really don’t know. So by locking in that 24-month CD, you’re still guaranteeing yourself a pretty good rate without committing all of your money long term.

A strategy that works well no matter what CD rates look like

While laddering CDs makes sense right now, it’s a good strategy in pretty much any interest rate environment. So if you have a sum of money you’re looking to open a CD with, don’t just put it all into a single CD and call it a day. Spread that money out so you’ll have access to it at regular intervals and avoid the cost and stress of an early CD withdrawal penalty.

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 

Unlock the secrets to maximizing your travel perks with our expert guide on airline loyalty status. Elevate your travel today. [[{“value”:”

When it comes to air travel, nothing beats the perks and privileges of airline loyalty status. From priority boarding and extra legroom to complimentary upgrades and access to swanky lounges, these benefits can transform your travel experience and help keep your personal finances in check. If you’re wondering how to earn and retain airline loyalty status, we’ve got you covered. Here’s a step-by-step guide to help you navigate the skies like a pro.

Understand the tiers and benefits

Before diving into the nitty gritty of earning status, it’s essential to understand the different tiers and their corresponding benefits. Most airlines have a multi-tiered loyalty program, typically including entry-level, mid-tier, and top-tier statuses.

Entry level (Silver/Bronze): Basic perks like priority check-in and extra baggage allowance.Mid tier (Gold/Platinum): Access to lounges, priority boarding, and more frequent upgrades.Top tier (Diamond/Executive): Enhanced lounge access, guaranteed reservations, and top-tier upgrades.

For instance, Delta Air Lines offers SkyMiles Medallion status with tiers ranging from Silver to Diamond. Silver Medallion members get priority check-in, while Diamond members enjoy exclusive benefits like complimentary Delta Sky Club membership and dedicated support lines.

Rack up the miles

The cornerstone of any airline loyalty program is miles — either flown or earned through various means. Here are a few ways to accumulate them:

Flying frequently: This is the most straightforward way. Aim for longer flights, as they typically earn more miles.Credit card partnerships: Many airlines partner with credit card companies, offering bonus miles for every dollar spent.Shopping portals: Airlines often have shopping portals where you can earn miles for every dollar spent with partnered retailers. This is a great way to boost your miles without even stepping onto a plane.Special promotions: Keep an eye out for special promotions where airlines offer bonus miles for specific activities, such as signing up for newsletters or referring friends.

Maximize your spending

Leveraging your spending habits can significantly boost your miles. Here are some strategies:

Book direct: Always book flights directly through the airline’s website or app to ensure you receive full mileage credit.Stay loyal to one airline: Stick to one airline or its alliance partners (like Oneworld, SkyTeam, or Star Alliance) to concentrate your miles and status credits.Take advantage of hotel and car rental partnerships: Many airlines partner with hotels and car rental agencies. For example, American Airlines AAdvantage members can earn miles when they book through partnered hotels or rental agencies like Hertz and Marriott.Join dining programs: Join airline dining programs to earn miles every time you dine out at partnered restaurants.

Optimize your flights

Strategically planning your flights can make a big difference in your status-earning journey:

Upgrade to higher fare classes: Higher fare classes often earn more miles. If it’s within your budget, consider booking premium economy or business class tickets.Mileage runs: For the truly dedicated, a mileage run involves booking flights purely to earn miles and status credits. These are typically low-cost, long-haul flights designed to maximize miles.

Retain your status

Earning status is just the beginning; retaining it is equally crucial. Here’s how you can maintain your hard-earned status:

Know the requirements: Each airline has specific requirements to retain status, often a combination of miles flown, segments flown, and dollars spent. For example, United Airlines requires Premier Gold status members to fly 24 Premier qualifying flights and earn 8,000 Premier qualifying points.Plan ahead: Keep track of your miles and status credits throughout the year. If you’re falling short, plan additional trips or leverage partnerships to bridge the gap. Or, talk to your airline about the possibility of putting future travel toward your current status. You might also be able to purchase the difference in miles to retain your status if there is a gap.Use airline credit cards: Some airline credit cards offer spend thresholds that help you retain status. For instance, spending a certain amount on Delta cobranded cards can earn you Medallion Qualification Miles (MQMs).Combine business and leisure travel: If your job requires travel, combine business trips with leisure travel to maximize your miles. Extend a work trip into a weekend getaway to earn extra miles and stick with the same airline for both.Book with partners: Airlines in the same alliance (like Oneworld, SkyTeam, or Star Alliance) allow you to earn and redeem miles across multiple carriers. This can help you maintain your status even if you need to fly with different airlines.Monitor your account: Regularly check your frequent flyer account to ensure all miles and segments are correctly credited. If you notice any discrepancies, contact customer service promptly.Take advantage of promotions: Airlines frequently offer promotions that can help you boost your miles and status credits. These might include double miles for certain routes, bonus miles for booking through the airline’s app, or special offers for using specific credit cards.

Earning and retaining airline loyalty status requires a combination of strategic planning, consistent flying, and leveraging partnerships. By understanding the tiers, maximizing your miles through various channels, and optimizing your flights, you can enjoy the benefits of being a loyal airline passenger. Retaining your status is about staying informed, planning ahead, and making the most of every mile you earn. So, next time you take to the skies, you’ll do so with the confidence and perks of an elite traveler.

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 recommends Delta Air Lines and Marriott International. The Motley Fool has a disclosure policy.

“}]] Read More