Money Management

Want to grow your savings five times over in the course of a year? Here’s how to get it done. [[{“value”:”

Since life has a way of throwing curveballs at us, it’s important to have emergency savings at all times. And even if you’ve managed to sock away $1,000 in a savings account, it unfortunately may not be enough to cover a large unplanned expense, like a home repair, or get you through a months-long period of unemployment.

Ideally, your emergency fund should have enough money to pay for at least three months of living expenses. But if you have $1,000 now, it may take a few years to get your savings to that point.

However, a $5,000 emergency fund buys you way more protection than $1,000 in savings. So if you want to grow your $1,000 into $5,000 in the next 12 months, here are three tips for how to do it.

1. Get some help from a high-yield savings account

With some savings accounts paying annual percentage yields (APYs) upward of 4.00%, you have a prime opportunity to get help growing your emergency fund. So if you’re earning much less interest than that on your money, it’s time to shop around for a new bank.

If you have $1,000 and are able to earn 4.00% APY on it for the next 12 months, that’s $40 toward your goal. It’s not a ton of money, but it’s something.

2. Cut spending to a reasonable degree

Eliminating every single fun expense from your budget is really no way to live. But if you’re able to cut back modestly, you can free up more cash for your emergency fund slowly but surely.

Allconnect reports that the average U.S. household spends $122 a month on cable and internet. But canceling the cable portion takes the median cost of internet service on its own down to $81 per month. That’s $41 in monthly savings, or $492 toward your emergency fund after 12 months.

This is just one example. The point, though, is that it pays to do a spending audit to see where your money is going. You may find that you’re able to free up a few small expenses that add to your savings nicely.

3. Boost your cash reserves with a side hustle

Interest earnings might add a small amount to your emergency fund. A reduction in spending might help even more. But a super-effective way to grow your savings is to boost your income with a side job.

Of course, you may want to try out a few different gigs to land on one that’s the right fit. But let’s say you decide to drive for a ride-hailing company. Uber says its drivers earn a median hourly wage of $33. If you’re able to earn $33 an hour doing that (or something else you enjoy more), and you want to grow your savings by $4,000 in 12 months, you’ll need to work about 121 hours. That’s only 10 hours per month. When you think about it that way, that goal seems more than doable.

A larger emergency fund could give you more financial protection when life goes awry — not to mention more peace of mind. And the sooner you commit to growing yours, the better you might feel about your personal finances.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.

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If you don’t take action when your CD reaches the end of its term, it may automatically renew. Find out how this could eat into your CD earnings. [[{“value”:”

Rates on certificates of deposit (CDs) have skyrocketed in recent years. If you’re looking for a safe place to earn solid returns on money in the short to medium term, they can be a great choice. But they aren’t for everyone. And if you’re new to CDs, there’s one mistake that could prove costly. Don’t forget about your CDs — make sure you know exactly when your terms expire.

In fairness, there’s effort involved in managing most savings and investment accounts. If you put cash in a high-yield savings account, you need to watch out for drops in rates. If you’re investing in stocks or ETFs, you’ll need to manage your portfolio. And if you put cash in a CD, you need to pay attention when it reaches the end of its term. Automatic renewals may not give you the best rate.

Pay attention when your CD reaches maturity

When your CD reaches the end of its term, your bank should notify you. You will normally have a grace period of seven to 10 days to decide what you want to do. You might want to leave it where it is, put it into a new account, or do something completely different. If you don’t act, many CDs will automatically roll over into a new term of the same length.

Bear in mind that CD rates can vary dramatically and rollovers won’t necessarily give you the best deal. The average CD APY on a 1-year CD right now is 1.80%, according to the FDIC. In contrast, some top CDs are paying APYs of 5.00% or more. The difficulty is that if it renews at a much lower APY, you might get stuck with that rate. Unless it’s a no-penalty CD, you’d have to either live with the new rate or pay an early withdrawal penalty to withdraw your funds once a new CD term has started.

A few percentage points can make a big difference

It’s all very well talking about hypothetical scenarios, but let’s look at how that might work in practice. Say you put money into a 5-year CD with an APY of 4.00% that compounds monthly. The CD matures and rolls over into a new account that’s paying just 2.00%. The difference of a couple of percentage points can translate into hundreds of dollars or more in lost interest.

Sure, by the time your CD matures, the economic environment may have changed and rates may have dropped across the board. Even so, it’s important to shop around for the best deal and actively decide what’s best for your money. You never know, CDs might have lost their shine by then and you might want to do something completely different with your money.

What should you do?

When you open a CD, set a couple of calendar reminders to alert you three or four weeks before it’s due to mature. At that point, you can research what rates are available and decide what you want to do with your money.

Here are some steps to take:

If your bank hasn’t contacted you, reach out and ask what your options are and how long the grace period is.Find out what rate you’ll get if your CD renews automatically. Compare this with other CDs and savings accounts.Think about whether your financial goals have changed and ask yourself if CDs are still the right option. If you don’t need the money in the near term, consider investing it in the stock market.If you are carrying a balance on high-interest debt, like a credit card, it might make more sense to pay it off rather than reinvesting in a new CD.

Key takeaway

CDs can be a fantastic way to boost your savings. Not only can you lock in high APYs, but most CDs are covered by FDIC insurance, which gives an extra layer of security. However, CDs are not a set-it-and-forget-it investment. Make a note of when your CD is due to expire. That way you can actively decide how to use that money when the time comes.

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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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Abusing the return policy is one of several ways you could see your Costco membership canceled. Find out more about how you could lose Costco access. [[{“value”:”

Costco is a beloved warehouse club, with around 132 million cardholders spread across 73.4 million households. Many of those members love the great deals Costco offers, not to mention the awesome Kirkland brand products.

RELATED: Best Credit Cards for Costco

For Costco fans, losing access to their membership would be a huge disaster. Unfortunately, there are a few key behaviors that can cause that to happen. Here are three mistakes that could lead to Costco exercising its right to cancel your warehouse club access.

1. Abusing the return policy

Costco has a very generous return policy. With limited exceptions, you can return just about anything you’ve purchased at any time. And even for products like electronics, you still have a 90-day window for returns.

However, just because Costco tries to keep customers satisfied by being flexible with returns doesn’t mean it’s a free-for-all. In fact, some past Costco customers have indicated that returning too many items led to their membership being canceled.

There’s no official guidelines for when a pattern of returns puts you at risk of losing Costco status. However, Costco has confirmed that abusing membership privileges and conditions can lead to cancellation.

The decision about when returns become excessive or abusive is typically left to managers at each Costco location and is made on a case-by-case basis after taking all the facts into account.

If you don’t want to take the risk of losing your membership, ask yourself whether a return is really reasonable or not. Obviously, if clothing doesn’t fit right after you bought it or it shrinks the first time you wash it, a return might be in order. But if you bought a sweatshirt from Costco six years ago, returning it because it has a hole and you want that money back in your bank account seems to be a pretty unreasonable choice.

2. Theft

If you’re caught stealing from Costco, that’s obviously a violation of its membership terms and conditions (not to mention a violation of the law). People have had their Costco memberships revoked for taking items without paying. You’ll want to avoid doing that if you hope to continue shopping at the warehouse club.

3. Not following store policies

Costco stores have a number of official company policies that customers are expected to follow.

For example, you can’t share your membership card with others outside of your household. You’re also limited to bringing just your kids and up to two guests when you visit Costco, so you can’t bring a crowd. Harassment, bringing weapons into the warehouse, and bringing animals in are also no-gos. And you’re expected to let the receipt checker do their job, as Costco says an inspection when you go out the door is necessary to help ensure members paid for all items.

If you violate these policies, Costco may end up canceling your membership. The club makes it very clear that it “has the right to refuse, decline, or cancel a membership at any time.”

The best way to avoid losing access to Costco deals is to make sure you — and any other person who you provide a Costco card to — are following the rules at all times.

By obeying the terms of your membership, you can keep taking advantage of the bulk buys and special products the warehouse club has on offer.

RELATED: The #1 Strategy for Saving Money at Costco

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.

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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. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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Sometimes, saving money on insurance is as easy as keeping your coverage with the same company. Read on to learn why bundling coverage is worth it. [[{“value”:”

Life keeps getting more expensive, doesn’t it? In addition to higher prices on groceries, housing, and cars, Americans are also facing higher insurance bills. According to S&P Global, the average premium rate for homeowners coverage rose by 11.3% through December 2023. Some major auto insurers also raised rates by double digits last year.

Going without insurance is a terrible idea — plus, it’s illegal to drive without auto insurance in most states. And if you’re paying off a mortgage, your lender will require you to carry homeowners insurance. So how can we mitigate these increased costs? Personally, I’m bundling coverage this year.

Buying a home can also save money on auto insurance

I just became a homeowner, and I was pleased to learn that I would get cheaper coverage in exchange for bundling my new home’s policy with a policy for my car. This is a pretty common way to save money on insurance coverage. According to Progressive, consumers can save around 5% by bundling home, condo, or renters insurance with a car insurance policy.

In addition to the money savings, bundling might also make my life easier. If I have a problem with my car or my new home, I only have to call one number — and my insurer has local agents, so I can easily reach a human for help.

Other ways to save on insurance costs

You might assume that non-homeowners don’t have the option to bundle coverage in exchange for coverage and savings. Not so! Some auto insurers offer life insurance and other non-home coverage, so anyone who needs additional policies should explore bundling options.

And renters should have renters insurance — a landlord’s coverage will not cover a tenant’s belongings in the event of a claim on the property. I had this coverage bundled with my auto insurance for the last several years.

Here are a few more ways to save:

Shop around: Different insurers have different rates, plain and simple. It’s a good idea to get at least a few quotes before signing on for a new policy.Ask about discounts: Many home and auto insurers offer a slate of discounts, such as for being a good student or a veteran. Sometimes discounts are available for paying the annual premium in full.Consider telematics: Drivers who are comfortable with being monitored by an insurer can look into telematics car insurance. Drivers download a mobile app or plug a device into their cars, and they can be rewarded with lower rates for safer driving.Boost credit scores: It’s unfortunate, but having a lower credit score can lead to higher insurance costs. The Motley Fool Ascent’s research team found that drivers with poor credit pay more than double what drivers with good credit pay for auto insurance. Consider paying all bills on time, having errors on credit reports removed, and paying down existing debt, if possible.

As insurance prices rise, it’s a wise idea to do whatever you can to save your budget. The road to becoming a homeowner hasn’t been a cheap one — but I’m glad that bundling home insurance with car insurance is giving me the chance to cut costs in at least one place.

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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 recommends Progressive. The Motley Fool has a disclosure policy.

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Traveling with kids can cost a small fortune — but not necessarily for the reason you think. Read on to learn more. [[{“value”:”

It’s hardly a secret that having kids is an expensive prospect. And traveling with kids can be even more expensive.

But the reason for that isn’t just because you’re paying for extra people. Here are a few less obvious reasons why traveling with children costs more than traveling solo or as a couple.

1. You’re basically forced to travel at the most expensive times

Some of the most expensive times of the year to travel are during school spring and winter break, and during the summer. But if you have school-aged kids, you’re tethered to those breaks, which means you’re basically forced to pay extra to travel.

Of course, you could opt to pull your children out of school and travel at a less popular time. But then you have to deal with makeup work, and you also risk incurring the wrath of their teachers.

It’s one thing to pull a first-grader out of school for a week and catch them up on a few basic math lessons. But try pulling an honors high school junior out of calculus for a week. Chances are, you’re not in a position to help them make up that advanced work, which means they’re stuck having to scramble and catch up.

2. You’ll pay more for flights if you want to be seated together

When you’re traveling with a fellow adult, it’s nice to be seated together. But if that’s not in the cards, you can probably cope — especially if it means being able to purchase a lower-cost ticket and save money.

As a parent, though, you don’t easily get that option because buying the most affordable airline fare often means not getting to choose your own seat. And if you have young kids, you can’t afford to be separated from them. You also, unfortunately, can’t rely on the kindness of strangers to switch seats (though to be fair, if you didn’t pony up for a seat choice, that really shouldn’t be anyone else’s problem but yours).

3. You can’t take advantage of money-saving layovers as easily

Sometimes, opting for a nonstop flight will get you to your destination faster, but at a higher cost. As a parent, though, you may not be able to save money by booking multiple flight legs because your kids might lose it during a three-hour layover.

Also, with a layover, you have to factor in the cost of feeding an entire family at the airport, where basically any quick meal you buy is guaranteed to be overpriced. That’s very different from being a pair of adults with a layover, or a solo traveler who’s content to bust out a protein bar for lunch and call it a day.

How to make traveling with kids less expensive

Traveling with children is clearly complicated — not to mention costly. But there are steps you can take to save, including:

Choose less popular destinations if you’re traveling during school breaks — for example, a less well-known state park instead of a national park.Book a vacation rental instead of a hotel so you’re not forced to splurge on so many restaurant meals.Book your flights in advance so you have more airfare choices.Use a travel rewards credit card that comes with money-saving perks like free checked bags.Drive to your destination instead of flying when feasible.

It’s not easy to afford kids, or to afford to take them places. But if you’re strategic in booking your plans, you can save some money in the process.

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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.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.

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FDIC insurance applies to money in CDs as well as savings, checking, and other accounts. Find out about the few scenarios where your CD won’t be covered. [[{“value”:”

Top certificates of deposit (CDs) are paying annual percentage yields (APYs) of over 5.00% right now. That makes them attractive savings vehicles for people who are willing to tie up funds for a set amount of time. In terms of safety, most — but not all — CDs are protected by FDIC insurance. That means if your bank failed, you’d almost certainly be covered. Here’s what you need to know about CD protection and FDIC insurance.

How FDIC protection works for CDs

FDIC stands for Federal Deposit Insurance Corporation. It’s an organization that exists to protect customers against bank failure. If a bank fails, the FDIC’s first course of action will be to look for another bank to take over the failing one. If that doesn’t work, FDIC insurance kicks in so banking customers won’t lose money. That coverage includes CDs.

For example, when Silicon Valley Bank failed last year, the FDIC brokered a deal with First-Citizens Bank & Trust Company. This meant customers could continue to use their savings accounts, checking accounts, and other products, even though their bank had collapsed.

Peoples’ CDs were transferred to First-Citizens Bank. If customers didn’t want to enter a new CD agreement, they could withdraw their money, including accrued interest, without paying the usual withdrawal penalty.

When might a CD not be FDIC protected?

FDIC insurance doesn’t automatically apply to all CDs. Here are three scenarios in which your money won’t be protected.

1. If the bank is not a member of FDIC

In fairness, it is very rare to find a bank, including an online bank, that’s not covered by FDIC insurance. All the CDs on our list of best CD rates are FDIC insured, and the FDIC’s latest data shows that over 4,500 banks and savings institutions are part of its program. However, there are some exceptions — such as the Bank of North Dakota, which is backed instead by the state.

Action: Use the FDIC’s online tool to double-check whether your bank is a member and that your funds will be covered by its insurance.

2. If you hold more than the FDIC will cover

FDIC insurance covers up to $250,000 per depositor, per FDIC-insured bank, per ownership category. Ownership categories are the way you hold money, rather than the account itself. For example, single accounts and joint accounts are different forms of ownership. If you have several accounts in just your name, it would still count as one ownership category even if they are spread across savings, checking, CDs, and money market accounts.

Action: If you hold more than $250,000 in single accounts with the same bank, think about ways to spread your money. You might consider opening a joint account or holding cash with more than one bank.

3. If your CD is not with a bank at all

Some CDs are offered by brokerages and credit unions. This means they don’t fall under the FDIC’s umbrella. However, they will likely still be insured — it just works a bit differently. The following protections might apply instead:

SIPC insurance: The Securities Investor Protection Corporation covers customers in the event of brokerage failure. It differs from FDIC coverage in the amounts and details of the protection, but the principle is the same.NCUA insurance: The National Credit Union Administration has its own insurance fund to protect consumers against credit union failure.

Action: If you’re opening a CD with a financial institution other than a bank, find out what protections are in place. You’ll almost certainly be covered, but it is worth making sure.

Key takeaway

CDs have captured people’s financial imaginations recently. There’s an understandable allure to a low-risk way to earn relatively high returns. Just make sure CDs are the right choice for you and that your CD is protected, whatever type of institution you open it with.

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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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