Money Management

While some items sold at Costco are expensive, many higher-priced items are worth it. Check out some pricey Costco buys that you may want to consider. [[{“value”:”

If you’re a Costco member, you’re probably used to saving money when filling your cart with everyday essentials like food, household goods, and cleaning supplies. But make sure you also pay attention to the more expensive buys on offer.

Some of the bigger-ticket items sold at Costco are well worth the cost — and they can be a win for your wallet, too. Are you looking for inspiration for your next Costco haul? I’ll share several high-priced Costco items that are worth the splurge.

1. Wet and dry vacuum

Owning a high-quality vacuum can greatly improve the cleanliness of your home. If you’re in the market for a new vacuum, you should compare models at your local Costco, as you may be able to get a good deal on one.

A wet and dry vacuum can be a great addition if your home has various floor types. Costo sells the Tineco iFloor 3 Ultra Cordless Wet Dry Hard Floor Vacuum for $249.99. The retail price of this combination vacuum is $299.99, so you’ll save $50 with your Costco card.

2. Grill

Another worthwhile high-priced item you can get at Costco is a grill. The warehouse club sells a variety of electric, pellet, natural gas, and propane grills for all your summer barbeque needs. One option is the Webster Genesis II S-435 Gas Grill. The propane-powered version retails for $1,499. Costo usually sells the same grill for $1,349.99.

However, with an additional $200-off coupon valid through June 16, 2024, members pay only $1,149.99 for this well-rated grill. Don’t miss this deal if you need to upgrade your outdoor grill in time for all your summertime cookouts with family and friends.

3. Mattress

Good quality sleep is important for your health, and investing in a new mattress could help you sleep better and feel well-rested. Luckily, Costco has great deals on mattresses. One example is the Sealy Posturepedic 12-inch Hybrid Mattress, available in multiple sizes.

Through June 9, 2024, this queen-sized mattress is priced at $549.99 at Costco. The warehouse club normally sells this mattress for $679.99, so this is a worthwhile deal if you’re craving more restful sleep.

4. Noise-canceling headphones

You can get a great deal on high-quality noise-canceling headphones thanks to your Costco membership. The warehouse giant sells electronics and accessories from top retailers like Apple, Sony, and Bose.

In fact, through June 16, 2024, you can score a pair of Bose QuietComfort SC Noise Canceling Headphones for $219.99. These Bluetooth headphones retail for $349.99.

You can usually get them for $319.99 at Costco. However, the additional $100 coupon makes this set an even better buy. These headphones are one of my favorite recent purchases. I use them to listen to music during my workday and bring them when traveling.

5. Smart TV

You might not think of Costco for TV purchases, but this is one high-priced item that can be worth the cost. If you want to upgrade your living room TV, check out the current deals at your favorite warehouse club.

Here’s one example of an offer that may appeal to you: The LG 55-inch Class OLED C3 Series Television is on sale for $1,299.99 through June 9, 2024. That’s $100 off the usual Costco price for this well-rated item. Talk about a deal — plus, Costco offers an extended warranty and free tech support for TVs.

Costco membership can be a worthy investment

If you’re a Costco member, look for opportunities to maximize the value of your membership. In addition to your usual Costco buys, occasional high-priced buys like the ones highlighted above could improve your life and help you keep more money in your budget.

Review our ultimate Costco guide for tips to stretch your dollar further. We also recommend using a rewards credit card when you shop to earn valuable rewards. You can earn cash back or points when you shop and redeem them for a statement credit to your credit card account. Here’s a list of the best credit cards for 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.

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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

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Are layoffs coming to your place of work? Read on for a few clues to watch out for. [[{“value”:”

The U.S. economy is generally in pretty good shape. Despite that, some companies may be looking to reduce their staff in the coming months for different reasons. And it’s important to recognize the signs that they may be coming, so you know to prepare. If these signs apply to your place of work, a round of layoffs may be right around the corner.

1. Projects are suddenly being paused

If your company enthusiastically introduced new projects at the start of the year that are suddenly being paused for no specific reason, management might be trying to conserve cash. That could mean that layoffs are next.

That said, if specific projects are being paused for a reason, there may not be a need to panic. But when there’s a big disruption without explanation, you need to be on alert.

2. Business travel is being put on hold

Some companies regularly send employees on business trips or to conferences. If that’s been the practice at your place of work, but suddenly your employer is refusing to spend any money on business travel, perhaps it’s trying to cut spending due to financial issues. Those same financial issues could lead to layoffs.

However, keep in mind that some companies are making less room for travel in their budgets these days given how easy it’s become to conduct remote meetings. So if your company has been paying for less travel since the pandemic, that’s different from a sudden hold on business trips.

3. Small perks are going away

Maybe your company break room is usually well-stocked with granola bars and sports drinks. Or maybe your company usually springs for a team lunch once a month as a thank you for a job well done.

If small perks like these are suddenly disappearing, it could once again be a sign that your company needs to trim its spending. And that could mean layoffs are coming.

Preparing for a layoff

There may not be much you can do to save your job if your company is gearing up for layoffs (though boosting your skills and generally having a good attitude can help). But there are some steps you can take to prepare.

1. Boost your emergency savings

Nearly 1 in 3 Americans have layoff anxiety in 2024, according to a survey by Clarify Capital. Making matters worse, only 54% have enough money in a savings account to cover three months of expenses. And 18% of Americans say they have no emergency savings at all.

In the coming weeks, do what you can to cut back on spending. It’s hard to temporarily give up the things you love, but you’ll appreciate having extra money in the bank if your job goes away.

It’s best to aim for a three-month emergency fund so you can cover your essential bills for 90 days in the absence of a paycheck. But if you’re among the 18% of people who are starting with nothing, save any amount you can.

2. Pick up a side job

A side hustle could really bail you out in the event of a layoff, since it’ll be another source of income. Set yourself up with side income now in case you need to ramp up upon getting laid off. There are many gigs you can choose from, but you may want to stick to a side job that’s as flexible as possible.

Even if you have reason to believe that layoffs are coming, that may not happen for weeks or months. You don’t want to compromise your main job sooner than necessary. So you may want to aim for a side gig you can fit into your schedule pretty seamlessly, like doing data entry from home or driving for a ride-hailing company.

3. Start networking immediately

If you’re worried that layoffs are coming to your company, the time to start getting in touch with your professional network is now. See which contacts of yours have open jobs at their companies, and ask the people you trust to keep you in mind in case opportunities arise.

Along these lines, make sure your resume is current. Sometimes, when jobs become available, you need to pounce right away. You don’t want to get held up by an out-of-date resume.

The idea of getting laid off can be scary. And while you don’t want to spend your days stressing over a layoff, it is important to know the signs that one may be coming. That way, you can prepare ahead of time so if you are laid off, it’s less jarring mentally and financially.

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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.
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Targeting a niche market can help small businesses find success. Read on to learn why this approach works. [[{“value”:”

Some people view starting a business like throwing a net into the ocean, hoping to get a ton of customers. And while that approach can work for some businesses, as a small business owner, there’s something to be said for the niche market approach.

While it may seem counterintuitive to restrict the number of possible customers or clients that your products appeal to, there are some compelling reasons to go this route if you’re planning to start your own business this year.

Benefits of targeting a niche market

Here are some of the best reasons to target a smaller audience with your business.

Less competition

The larger the market, the more you have to fight to make your business known, and the harder each sale might be. But the same is true for businesses that go the opposite direction: By limiting your market to a specific niche, you get to be the big fish in a small pond.

More effective marketing

Marketing campaigns that seek to appeal to everyone can end up backfiring, making them less effective. Conversely, marketing your products or services to people you know could genuinely use them results in a 40% increase in revenue, according to the latest research. So if your business is bringing in $10,000 a month before personalized marketing, that could increase to $14,000 by implementing this tactic.

Gaining real fans

If you can provide a product or service that caters to a specific audience, rather than being adaptable to many, you’re more likely to gain an audience that truly appreciates what you provide. That goes a long way, and could even translate to more repeat customers.

Better profit margins

The more tailored the offering, the more people tend to be willing to pay. So if you have a physical product that requires investment on the back end, you can afford to charge a higher price, increasing your profit margin. After all, if the customer knows they aren’t going to have to do leg work to make it fit their specific needs, you’re saving them time and effort.

Remember: You can always expand your offerings later on to increase your business income. By targeting one niche at a time, though, you’ll be better able to serve each niche market.

Other smart small business strategies to consider

Once you’ve picked your niche, there are more ways that you can perfect your business and boost sales — try these.

Set sales goals

It can be easy to try to capture more customers by doing things like upping your marketing efforts, but without a concrete goal, you won’t have a clear understanding of how effective that strategy actually is. Having goals can serve as motivation to push your business income further than you thought possible.

Consider establishing a customer loyalty program

If it works for your niche and business, consider offering return customers a way to save. This can help incentivize them to purchase from you more often. In fact, according to global management consulting firm McKinsey, top-performing loyalty programs can boost revenue by 15% to 25% per year.

Try a business credit card

If your business has expenses, a business credit card can be a useful tool. Not only can they allow you to invest in the materials you require to keep your business running, but they can also help you save on those costs via rewards and even establish business credit. And that can go a long way as your business continues to grow.

Building a successful small business is not easy. But if you make smart decisions on the back end to target a specific audience and look for opportunities to incentivize your customers to support you, you can make the journey that much easier.

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

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Looking to sell your home in a market that’s favorable for sellers? Read on to see why that might backfire on you. [[{“value”:”

There’s a reason so many buyers have been struggling with today’s market. In April, existing home prices were up 5.7% from a year before, according to the National Association of Realtors. And given that housing inventory only sat at a 3.5-month supply that month — well below the six-month supply that’s often needed to meet buyer demand in full — it’s easy to see why it’s a tough time to find a home that’s suitable and affordable.

However, while it may be a bad time to buy a home, some people will tell you that it’s a pretty fantastic time to sell one. The logic is that as a seller, you can benefit from the lack of competition on the market and command a higher price for your home.

I’m not so sure I buy that, though. For the most part, I think it’s a pretty bad time to be selling a home unless you fall into one of two categories.

It’s not a great time to sell and sign a new mortgage

If you’re selling your home with plans to downsize and purchase your replacement home with cash from your sale proceeds, then it could be a good time to list your current home. Similarly, if you’re fed up with owning a home and have decided you’d rather rent, then now’s a good time to sell as well.

But if you’re selling your home and buying a new one with a mortgage, that’s a different story. As you may already know, mortgage rates are pretty high these days. Right now, the average 30-year home loan comes with a 6.94% rate, per Freddie Mac.

Plus, home prices are elevated, too. So even if you’re downsizing, if you’re not able to buy your next home in cash, between having to pay more for a home and signing an expensive mortgage, you may not benefit financially.

Let’s say your home was worth $400,000 four years ago but could now sell for $500,000. If you owe $200,000 on your mortgage, you’re left with $300,000 (not including any fees you might pay to a real estate agent).

If you’re downsizing to a home that cost $200,000 four years ago but costs $250,000 now, you’re still paying more. But if you don’t need a mortgage, you’re at least saving money in that regard. And while you may be paying $50,000 more for that smaller home than you would in a less inflated market, at least you’re getting $100,000 more for the home you’re selling.

But let’s say you’re selling your home for $500,000 to upsize to a $750,000 home that cost $600,000 four years ago. Even if you only need to borrow $450,000 because you can use $300,000 from your home sale as a down payment, at 6.94%, a 30-year mortgage will cost you $2,975 a month.

Should you hold off on selling your home?

If you can’t afford your mortgage payments or other costs associated with living in your home, then you may want to sell as soon as possible. Similarly, if you’re moving for a job, you may have no choice but to sell your home today.

But otherwise, don’t assume off the bat that it’s a great time to sell. Today’s housing market is beneficial to sellers only in theory.

If you’re selling to upsize or buy a comparable home in another neighborhood, you could lose out by getting stuck with a higher mortgage rate. And what you gain by selling your home at a high, you may lose by buying your next home at a high. So if selling your home today means having to finance a new one, you may want to wait.

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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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Putting $5,000 in a savings account can earn you anywhere from just $25 up to $250. Here’s why there’s such a big disparity and how to pick the best account. [[{“value”:”

It’s a dilemma that many would love to have to contend with: You open your email and find out you’re about to get an extra $5,000. Now the question is, what do you do with it? How can you get the most out of that cash? Here’s what you should know if you’re looking at stashing that money in a savings account.

How much you can earn on $5,000 in a savings account

There are two types of savings accounts you can use: a traditional savings account and a high-yield savings account (HYSA). And although you might automatically think the latter is the better option, there are factors other than the annual percentage yield (APY) that you should consider.

But first, let’s look at the actual earnings that you can expect on $5,000 with these two account types.

With a traditional savings account, you might not earn much in interest, but keep in mind that these accounts offer the opportunity to earn some interest over time while keeping that cash easily accessible — with few, if any, requirements to earn interest.

With a HYSA, by contrast, there is an opportunity to earn more in interest. But there may be requirements to meet a minimum initial deposit threshold or maintain a certain minimum balance in order to score that high rate. So HYSAs can be less accessible for beginning savers.

With both of these accounts, though, there are two important caveats to consider: First, you’d have to leave that cash alone for those earnings to apply (taking out money would lower it, but you could also earn more if you were to contribute more to that account.) And secondly, the rates here aren’t fixed. So if the rate changes, you may earn more or less than you did when you first opened the account.

Three other places you may want to put that cash

If you’re stuck on some of the cons associated with savings accounts, there are other options that could work better for you.

1. CDs

Certificates of deposit (CDs) offer a fixed interest rate that can be similar to what you’d find with an HYSA — so you’d lock in those earnings and potentially earn more than with a savings account if rates drop in the future. You just have to be willing to part with that cash for anywhere from six months to several years, depending on the CD term you choose.

2. Retirement accounts

If you aren’t already contributing to a retirement account, or you’re doing the bare minimum, you might consider putting some of that extra cash into your 401(k) or individual retirement account (IRA). As long as you aren’t going over the annual contribution limits, this can translate to massive earnings over time. For instance, if you invest $5,000 over 40 years and it earned an average return of 7%, that would amount to almost $75,000.

3. Investment portfolio

Investing in the market can also potentially lead to more earnings than a traditional savings account or HYSA, as some stocks may perform much better over the course of a year. Of course, there is more risk here as you can lose money if the market dips. So this is best only done if you already have emergency savings to fall back on and you can afford to take on that risk. And, in general, investing is best approached as a long game, as you’ll have more time to wait out periods of volatility.

It can be difficult to know exactly what to do with an influx of cash. After all, you want to make sure you’re getting the most out of your money. But as long as you know your goals and needs, you’ll be able to select the account that offers the best of both worlds.

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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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A 15-year mortgage could save you a lot of money on interest. But read on to see why your money may be better used elsewhere. [[{“value”:”

The average 30-year mortgage rate as of this writing is 6.94%, according to Freddie Mac. And while that’s not nearly the highest mortgage rate in history, it may be a higher rate than what you want to pay.

One simple way to snag a lower interest rate on a mortgage is to lock in a 15-year loan instead of a 30-year loan. As of this writing, the average 15-year mortgage rate is 6.24%. So if you can afford the higher monthly payment that comes with a 15-year loan, it could be worth getting one.

But before you rush to sign a 15-year mortgage, realize that not committing to those higher monthly payments could be a better bet for these two reasons.

1. You can potentially make more money by investing

Let’s say you’re looking to sign a $200,000 mortgage at today’s rates. With a 30-year loan, you’re looking at a monthly payment of $1,322 for principal and interest. With a 15-year loan, that payment rises to $1,714 — a difference of $392.

With the 15-year loan, though, you’re paying $108,476 in interest all in. With the 30-year loan, your total interest cost amounts to $275,927. So in theory, a 15-year mortgage could save you $167,451.

However, let’s say you sign the 30-year loan but invest the $392 a month you’re not spending on housing in the stock market for 30 years. The market’s average annual return, as measured by the S&P 500 index, has been 10% over the past half-century. If you snag that same return in your portfolio, you could grow your balance to about $773,800. That’s a gain of over $632,000, compared to saving $167,451 on mortgage interest.

2. You have more flexibility if your financial situation changes for the worse

You may be able to afford the higher payments that come with a 15-year mortgage today. But what if your financial situation changes and your income declines?

If you’re laid off at some point, you may be forced to take a lower-paying job. Or, you might willingly decide to take a lower-paying job because you’re too burned out to keep grinding away at your current one.

You may also end up with non-housing expenses that are larger than expected. Child care costs today, for example, are exorbitant. If you wind up having more kids than planned, that’s an expense that could seriously eat into your budget.

The benefit of signing a 30-year mortgage is that it comes with lower payments than a 15-year loan. You could choose to pay more into your mortgage, if your situation allows for that. But you don’t have that obligation, which gives you more flexibility.

It’s easy to see why you may find a 15-year mortgage appealing. After all, it’s nice to lock in a lower interest rate on a home loan and save loads of money that way. But just because you can afford a 15-year mortgage doesn’t mean you should get one. You may find that you’re better off with a 30-year loan, even if it comes with a higher interest rate attached to it.

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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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