Money Management

Food inflation has been unmerciful on Americans’ budgets. This tip could give you a years’ supply of dinner for cheap. [[{“value”:”

Saving money on food can be tough. True, you can shop for cheaper ingredients, use coupons or cash back apps to get a small rebate, and steer clear of restaurants and takeout apps. You could even use a cash back credit card that earns more for food, or shop at Costco to save money by buying in bulk.

While these tips could certainly help you slash your food budget, perhaps none work as effectively as the tip I’m about to disclose. In a nutshell, it involves taking advantage of sign-up offers on meal kit subscriptions. Nearly every meal kit service offers huge discounts for first-timers, and since there are more than a dozen of them, you could easily get a years’ worth of groceries for a hefty bargain.

Interested? Hungry? Here’s how it works.

Use a meal kit service’s promotion, then cancel your subscription

If you’re unfamiliar with the concept, meal kit services deliver meals to your door as a subscription. The service lets you choose your meals in advance, then delivers them prepared or as individual ingredients ready to cook. The subscription price could be high, especially if you choose premium meals, but it can also be on par with (or even cheaper than) buying the same ingredients at your local grocery store. What’s more, you can cancel your subscription at any time, so you’re never locked in for more than a week.

Most meal kit services come with huge sign-up promotions to incentivize you to join. For example, Blue Apron will give you 50% off the first four weeks of a new subscription, plus free shipping for your first box. This promotion would make five meals of two servings each cost $47.45 for your first box, then about $58 for the next three. That’s cheap in comparison to what you would pay to cook those meals on your own.

The trick, then, is to use each meal kit service’s promotion for your first few boxes, then cancel your subscription. When done consecutively, you can get almost a years’ worth of meals for a hefty discount. To show you how this can be done, here are 10 popular meal kit services with big promotions.

Blue Apron: 50% off your first four weeksMarley Spoon: 55% off your first box, 20% off next three boxesHello Fresh: 10 free meals across seven boxesGreen Chef: 18 free meals over five weeksDinnerly: Save up to $150 across your first five boxesFactor: 50% off your first box, 20% your next monthPurple Carrot: 50% off your first box, 10% for all of JuneEveryPlate: $1.49 meals for your first boxGobble: 6 meals for $36Thistle: $100 off your first month ($25 for four weeks)

Taken together, these 10 meal kits would give you 42 weeks of cheap meals. This list isn’t comprehensive, either, so you could extend your promotional streak to a full year with other offers. While prices vary depending on serving size and quantity of meals you choose, you could save $50 to $60 for two people on a plan of five to six meals per week.

Bonus tip: Check Reddit, especially r/Freefood, for promotional codes and free boxes on meal kit services. Often, these companies will let their subscribers give friends and family free boxes with a unique discount code, and friendly Reddit users will post them for others to use. For example, a few months ago a Reddit user posted codes from EveryPlate for a free box. Since EveryPlate’s normal promotion is $1.49 per meal, you would save more by getting it for free.

Get extra cash back with the right credit card

While this tip can help you save on your daily meals, getting a credit card designed for food purchases will turn your spending into cash back or rewards. Many credit cards will register meal kit services as a grocery purchase, thus helping you save more on your monthly food budget. Take a peek at some of our favorite grocery credit cards, then use one to pay for your meal service kits for extra savings.

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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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Americans have flocked to CDs, attracted by the high APYs. If you want to get rich, find out why investing in stocks or real estate could make more sense. [[{“value”:”

Certificates of deposit (CDs) are extremely popular right now. Understandably so, since some top CDs pay APYs of higher than 5%. As such, you might assume they’d be a good way to build wealth. After all, those high savings rates are guaranteed for the CD term, and CDs are usually FDIC-insured.

Sadly, CDs aren’t a magical solution to all things financial. When it comes to growing rich, a lot depends on your situation in life, the state of your emergency savings, and the amount you can put aside each month. But if you want to seriously boost your nest egg, a relatively safe investment like a CD or high-yield savings account will only take you part of the way.

For many people, it may make more sense to buy riskier assets with the potential to generate higher rewards over time. Here are some other routes to consider.

1. Tax-advantaged brokerage accounts

Tax-advantaged retirement accounts like individual retirement accounts (IRAs) and 401(k)s are excellent ways to build up a nest egg. Not only do some 401(k)s benefit from employer matching, but the IRS will also let you either defer taxes on your contributions now or make tax-free withdrawals further down the line.

There are limits on how much you can contribute to an IRA each year, but if you aren’t taking advantage of these tax benefits, you’re missing out on a significant investment boost. Let’s say you’re in the 22% tax bracket and put $6,000 into a traditional IRA for 2023. That reduction in your taxable income could save you $1,320. You’d also benefit from any returns the assets in your IRA generate over time.

To be clear, an IRA or 401(k) can hold different asset types. You can even put CDs into some IRAs, though it’s more common to include a mix of funds containing stocks or bonds. Also be aware that you may be penalized if you withdraw funds from your IRA or 401(k) before you reach age 59 1/2, so it only makes sense for money you’ll use in your golden years.

Here are some steps you can take today to benefit from tax breaks on your retirement contributions:

Find out whether your company has a 401(k) plan and will match some of your contributions. If so, learn how it works — particularly the maximum match amount and what assets you can include.Understand the different types of IRAs and find out which will work best for you. Broadly speaking, a Roth IRA lets you pay tax today and withdraw tax-free in your retirement. A traditional IRA reduces your tax bill now, but you’ll pay taxes on your withdrawals further down the road.

2. ETFs

Exchange-traded funds (ETFs) and index funds are excellent alternatives to CDs, as they have the potential to generate higher rewards over time. Both contain a basket of securities and can diversify your portfolio by including a mix of companies in different industries.

For example, if you bought an ETF or index fund that tracks the S&P 500, it would give you exposure to the largest 500 companies in the U.S. The S&P has generated average returns of over 10% over the past 50 years. No stock market investment is guaranteed, and average returns include years when the market dropped.

ETFs offer a relatively safe way to invest in the stock market. Over time, they will likely beat the APYs on even the best CDs.

3. REITs

REITs, or real estate investment trusts, are a way to invest in real estate without owning property. One reason they’re attractive to investors is that they have to pay a certain percentage of their income as dividends. This means you can profit from the regular dividend payments as well as any appreciation in the value of the trust itself.

It’s a complicated time for real estate investing, and REITs carry more risk than CDs do. However, REITs are often less volatile than stocks, you can put them in an IRA, and they have performed well historically. They can be a great way to further diversify your portfolio. Plus, where a CD ties you into a set term, there are no limits on buying or selling your REIT.

Key takeaway: Know how to build wealth

If you want to get rich, there’s no single “best” asset class. Rather, the question is which asset is best for you, and which combination might help you achieve your financial goals? The following rules of thumb will help you compare investments and strategies:

Think long term: Historically, buy-and-hold investments can generate decent returns by making consistent investments over time. For many retail investors, a long-term viewpoint can help them wait out short-term market fluctuations and compound their gains.Build a diversified portfolio: It’s fun to think about the value of, say, CDs vs. the stock market. But you’ll find it’s often not an either/or scenario — the trick is to spread your investments around. That means holding different types of assets with exposure to different industries.Understand and manage risk: Risk-wise, there’s a huge difference between a savings vehicle, an S&P 500 index fund, and buying into a penny stock or cryptocurrency. Higher-risk investments carry the potential for increased returns but could also collapse completely. The right mix will depend on you.

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.Emma Newbery 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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Costco gas is often cheaper than at most gas stations. Read on to find out how fueling up at Costco can benefit your summer budget. [[{“value”:”

I’m about to go on a long road trip up the East Coast, and I’ve got my eye on rising summer gas prices. The national average for a gallon of gas is $3.70 right now, up 15% from the beginning of this year.

I’ve got a Costco membership, and one of the perks is discounted gas, which can be much cheaper than the national average. If you take advantage of the discount, here’s how much you stand to save annually.

You could save $146 annually in fuel costs

Gas prices usually go up during the summer, and their recent rise means that this summer will likely be no different.

The average American uses about 489 gallons of gas annually per vehicle. If we multiply this by the current price of $3.70 per gallon, it works out to about $1,809 annually. Of course, gas prices fluctuate, but let’s compare them with Costco’s prices to see how much you could save.

Costco gas prices are about $0.30 cheaper than the average gas station. That seemed high to me, so I compared the prices of my local gas station one block from my home to my nearest Costco and was shocked at what I found. The local station charges $3.29 per gallon, while Costco’s price is $2.88 — $0.41 cheaper per gallon!

But even if we use the $0.30 cheaper assumption, Costco gas could potentially save you more than $146 annually when buying 489 gallons per year. This more than covers the cost of two annual Costco memberships!

Summer budgets are flying out the car window

I have to admit that I usually overspend in the summer. Between beach trips, baseball games, day trips, and eating out, it’s easy to go over budget.

I’m not alone in this, either. A recent MassMutual survey shows that one-quarter of Americans think they’ll spend more this summer than last summer.

Will saving money on gas completely fix your summer budget? Probably not. But it will help lower your costs. And, even more importantly, you could save a ton of money on other purchases with your Costco membership, too.

Recent data shows that Costco members can save over $1,000 annually when buying commonly purchased items at the discount warehouse club instead of conventional grocery stores. Add that amount to your potential gas savings, and you’ll be well on your way to cutting $1,146 out of your annual budget.

One more way to save on gas

If you don’t buy gas at Costco frequently, you can still save money on your fill-ups by using a gas credit card.

Many of these cards have cash back rewards of 2% to 6%, and some even come with a welcome bonus. Not only can you save money on gas, but many also offer cash back on groceries.

Just keep in mind that most of these cards won’t earn rewards when buying gas at Costco.

Whether you go to Costco to save money on gas, use a gas credit card, or both, consider how much you’re spending at the pump, especially during the summer. I’ll fill up at Costco before my road trip in a few weeks and offset some of the higher gas prices this summer by finding cheaper gas stations around town.

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

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A Costco membership can help you stay on budget while shopping. Looking for the best deals at Costco this June? You could save a lot with these finds. [[{“value”:”

For many shoppers, investing in a warehouse club membership is part of their personal finance strategy. You can save hundreds of dollars annually by shopping deals at retailers like Costco. If you’re a new Costco member or are planning to join soon, here’s a look at some Costco deals that could save you $100 or more per buy in June.

Bose QuietComfort SC Noise Canceling Headphones: $100 off

Looking for a solid pair of noise-canceling headphones for travel or work? Costco sells the Bose QuietComfort SC Noise Canceling Headphones. Through June 16, 2024, you can get a pair of these well-rated Bluetooth headphones for $219.99. Costco usually sells them for $319.99, so you can get a great pair of headphones while keeping an extra $100 in your checking account. I own these headphones, and they’re a favorite recent purchase.

Apple Studio Display – Standard Glass – Tilt-Adjustable Stand 2022: $150 off

For those wanting to upgrade their computer monitor, the Apple Studio Display – Standard Glass – Tilt-Adjustable Stand 2022 model is on sale for $1,349.99 through June 12, 2024. Buying this 27-inch desktop monitor at Costco will save you $150. It also has excellent reviews, so you can feel confident swapping out your old monitor for this 5K retina display model.

Weber Genesis II S-435 Gas Grill: $200 off

Now that summer is upon us, a new grill may be just what you need. With your Costco membership perks, you can score a $200 discount on the Weber Genesis II S-435 Gas Grill. It’s normally $1,349.99, but through June 16, 2024, you’ll pay only $1,149.99. Propane and natural gas models are available. This grill features a side burner, perfect for sauteing veggies while you grill meat.

SunVilla Commercial Sling Wave Chaise Lounges with Adjustable Armrests: Save $120

It’s not too late to upgrade your poolside furniture. Costco has a 2-pack of SunVilla Commercial Sling Wave Chaise Lounge with Adjustable Armrests for $349.99. You’ll save $120 on their normal price through June 9, 2024. The chairs can be adjusted to multiple positions, and the arms can be raised or lowered. Plus, they’re stackable for easy storage.

Casper Cooling Select 12″ Memory Foam Mattress: Save $120

A new mattress is a solid investment in your comfort and health. Why not use your Costco membership perks to get a deal on one? You can buy a queen-sized Casper Cooling Select 12″ Memory Foam Mattress for $529.99 instead of $649.99. This deal lasts through June 9, 2024. That’s a great price to pay for potentially years of better sleep.

Is a Costco membership worth it?

Those with a Costco card can shop the deals at the warehouse store. However, you must pay $60 to $120 annually to become a member. Is it worth it?

Before joining, consider your budget, your typical shopping habits, and whether you have a club near you to decide if it’s a worthwhile investment. For many shoppers, the savings are worth it.

But you don’t want to pay for a membership if you won’t get much use out of it or if you’re in a difficult financial situation and are operating on a tight budget. Joining may be wise if you can afford the annual fee and use the perks.

Our detailed Costco guide can help you get the most out of your money as you shop. You might also consider using a rewards credit card when paying for your Costco hauls. You can earn valuable rewards when you swipe your credit card. Review our list of the best credit cards for Costco to learn more about which cards are the best option.

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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Buying a minivan may be a more expensive prospect than you expect. Read on to see why. [[{“value”:”

When I found out I was having twins in 2014, one of my first reactions was, “How on earth am I going to afford the cost of an extra child?” A close follow-up reaction was, “Well, guess I’m going to need a minivan.”

See, at the time, I already had a toddler, and having twins meant I would need a car capable of fitting three car seats. It’s really tough (if not impossible) to cram three of those into a single row of seats, so parents with more than two children in car seats at the same time often need a minivan to fit everyone in safely.

That was the situation I was in, and at the time, car prices were a lot less expensive than what they are today. Thankfully, we were able to trade in my old car to avoid having to raid our savings account for a down payment. But we still wound up spending way more on a minivan than we wanted to — even though we didn’t choose the most expensive one out there.

If you need a minivan today, you may be in for a bit of sticker shock given that car prices are still pretty elevated. But there’s a reason minivans cost what they do.

Why you might pay more for a minivan

The cost of a minivan will hinge on the model you get and the added features you opt to pay for. Kelley Blue Book says the starting price on the 2024 Toyota Sienna is $39,080. For the Honda Odyssey, it’s $39,635. But again, these are just starting prices — not the price most people end up paying out the door.

So, why is there such a premium on minivans? A big part of it boils down to demand.

People who drive minivans tend to need minivans. That was my situation — a sedan or even an SUV would not have accommodated three car seats when my kids were young. And while I could now get away with not having a minivan, even once your kids are older, it gets harder to cram a family of five into a two-row vehicle. That also gives you zero wiggle room to take another passenger.

Since dealerships know that many drivers buy minivans out of necessity more so than choice, they tend to take advantage of that. The result? Minivan owners often end up paying more.

Also, there aren’t many options for buying a minivan like there are for other cars. As of 2021, there were only five minivan models on the market — the Chrysler Pacifica, Chrysler Voyager, Honda Odyssey, Kia Carnival, and Toyota Sienna. And as of then, the Sienna and Odyssey together made up well over 50% of the market, according to Kelley Blue Book.

Any time there’s a situation where demand for a given commodity exceeds the supply, that item’s price has the potential to rise. Such tend to be the case with minivans.

Steps you can take to save money

If you have to drive a minivan — or if you just plain want one for the extra room — then there are ways you can reap some savings. First, resist the temptation to get one with all of the extra features. For many years, people managed to stay in their lanes without warning sounds going off. You can also rely on a standard heater to keep your car warm in the winter and avoid the extra expense of heated seats.

Secondly, shop around. Though there aren’t many minivan models to choose from, the price of a given model can vary from one dealership to another. Incidentally, you also need to shop around for auto insurance to find the best coverage for your minivan.

Finally, if you can’t talk your dealership down on price for a minivan, try to get it to throw in some money-saving extras, like free oil changes for a year or two or other discounts on maintenance. That won’t change the cost of your car payments, but it could be helpful for your finances as you adjust to the cost of owning a minivan.

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.

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