Money Management

It’s a good idea to invest from as young an age as possible. But there’s one move you ought to make first. [[{“value”:”

If you’re graduating from college this month, you may be excited to enter the working world and start earning a steady paycheck. After all, that could spell the difference between eating instant noodles every night versus food you actually enjoy eating (not to say that instant noodles can’t be delicious).

Once you start working full-time, you may be inclined to invest a portion of your earnings. And that’s a great thing to do from a young age, because it gives you lots of time to benefit from compounded returns in your brokerage account or IRA. But before you start investing, there’s one important thing you have to do.

The upside of investing as a recent graduate

Many people don’t start investing until their 30s, 40s, or beyond. The benefit of starting to invest at an earlier age is getting to grow your money more efficiently via compounded returns.

Let’s say you invest $10,000 in stocks at age 32. Over the past 50 years, the stock market has rewarded investors with an average annual 10% return, so a mix of stocks in your portfolio could produce the same result. And if so, by age 62, you could end up with almost $175,000.

That’s undeniably impressive. But watch what happens when you start to save and invest 10 years earlier.

If you’re graduating at age 22 and are able to invest $10,000 this year, then by age 62, you could end up sitting on roughly $452,000. That’s a difference of $277,000 in gains. So if you’re able to start investing right away after graduating college, it’s a move that can certainly pay off big time.

Before you invest your earnings, save for emergencies

It’s easy to see why you may be excited about the idea of investing as soon as you enter the working world. But before you throw money into a brokerage account or IRA, there’s an important step to take — make sure you’re all set with emergency savings.

While it’s a great thing to invest for the future, first, you need to make sure you’re equipped to tackle unplanned expenses in the present. So to that end, before you invest, make sure you have enough money in your savings account to cover three to six months of essential bills — expenses like rent, car payments, food, medication, and utilities.

Once you’ve reached that point, by all means — invest. But you shouldn’t just bank on tapping your investment portfolio when you need money.

The stock market can be very fickle. And you don’t want a situation where you need $1,200 to fix your car and your only choice is to take it out of your stock portfolio while the market is down, thereby locking in losses.

So before you invest as a new member of the workforce, make sure your emergency fund can cover at least three full months of bills. From there, if you’re able to invest, you only stand to benefit from 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.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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Costco has so much to offer, it can be hard to keep track of its best savings opportunities. Learn which five unsung benefits you might be missing out on. [[{“value”:”

Costco has practically unbeatable per-unit prices that can help you save when you buy in bulk, as well as discounts on one-off purchases (like electronics and mattresses) that can make them cheaper than at other retailers. Its Kirkland products are legendary and have amassed a loyal following, while its gas prices have helped many drivers get through hefty inflationary periods.

But Costco is more than just a grocery store (and gas station). In fact, it has several little-known services that could make even the most loyal Costco member think, “Wow, I didn’t know it had that, too!” Here are five.

1. Virtual care

Costco members get a big discount when they book virtual care appointments with its partners, Sesame. For example, you can currently get the following healthcare services at a low (Costco) price.

These are pretty low prices to budget for, especially if you’re currently uninsured. And unlike many insurance plans, you don’t have to jump through any hoops to see a specialist. You just book an appointment online and get the virtual care you need.

2. Moving truck discounts

Moving gets pretty pricey, especially when moving long distances. But Costco can help you save by giving you a 25% discount on a Budget Truck Rental. The 25% discount applies to your retail rate (the per-day rate and mileage rate), but could save you hundreds — if not $1,000 or more — on your next relocation. In order to get the discount, you have to make your reservation through the Budget Truck and Costco partnership page.

3. Exclusive discounts on car insurance

Car insurance — I know, ugh.

If you’ve noticed your rates creeping up over the last year, you’re not alone. According to the March 2024 CPI report, car insurance increased 22.2% year-over-year. While different insurance companies may price premiums in their own way, the increase in car insurance is probably due to the linked increase in car prices and repairs.

Even so, there are ways to save on car insurance, like buying it through Costco. While Costco doesn’t underwrite insurance policies itself, it can give members an exclusive discount through its partner CONNECT, which is backed by American Family Auto.

According to Costco’s website, that extra discount can translate into $595.86 of savings for the first year members switched to CONNECT. This can also be combined with other traditional discounts, like safe driving, paperless billing, and bundling multiple policies, to help you save even more on your annual premiums. Costco Executive members can also get extra perks, like roadside assistance and lifetime renewability.

4. Gift cards

Costco gift cards are one of the warehouse’s best deals. In fact, Costco regularly adds about 10% to 30% of value into its gift card packages. In other words, if your gift card is worth $100, chances are Costco sold it to you for $70 to $90.

Currently, two of my favorite gift cards are for Instacart and Southwest Airlines. The Instacart gift card is worth $100 but sells for $79.99, while the Southwest gift card sells for $449.99 but is worth $500. Every now and then, Costco will even sell the Southwest gift card for $429.99 — giving you a 14% discount on the card’s face value.

To be fair, you won’t always find gift cards you like; many of its gift cards are for chain restaurants and gaming consoles. Likewise, you’re also exchanging dollars, which can be used everywhere, for gift cards that can be used only at one or a handful of stores. But if Costco sells gift cards for places you already shop, you could save money by buying them in advance.

5. Home improvement services

Costco offers a slew of home improvement services. While it doesn’t perform the services itself, it will connect you with home professionals who will give you a free consultation. Plus, Costco often gives you a Shop Card, typically worth a percentage of the service’s cost, if you go through with the purchase. Here are a few services it currently offers:

Bath remodelingBlinds, shades, and shuttersCabinet refacingCustom closet and storage designFlooring and carpetGarage door and open installationGenerator installationGutter installationSolar panel installationQuartz and granite installationWater treatment and softeners

All in all, your Costco membership does more than just let you shop in an airplane hangar of deals. In fact, these perks only scratch the surface of what your membership can unlock for you. My tip: Take a second to get lost on Costco’s site map. You might be surprised at what you find — and how much money your membership can save you.

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.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

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Competitive CD rates are over 5% right now, making them a good investment. Take a look at what that means in real money. [[{“value”:”

I like percentages as much as the next person (honestly, probably more), but when someone just throws them at me without any real-world examples to add context…not so much. So when everyone talks about how great certificate of deposit (CD) rates are right now, I don’t want them to just give me rates. I want to know what those rates mean in real numbers.

For instance, suppose I have $10,000 to park somewhere for a year. How much would I really earn if I put it in a CD? Let’s see what the math says.

You could earn more than $500 in interest

The exact rate of the CD will dictate how much interest you earn. The higher the rate, the more money you’ll earn.

The best 12-month CDs are currently earning around 5%, so we’ll look at a range of rates. (I’m assuming interest compounds monthly, as is typical.)

Overall, you’re looking at around $500 in income for just letting your $10,000 sit in a CD for a year. This is basically the definition of passive income, since you don’t have to do squat once you set up the CD.

The rate is the key factor

The table above also shows you exactly how much your rate impacts your earnings. With a $10,000 deposit, even a single percentage point can make a $100 difference in how much interest you earn.

It’s vital to pay close attention to the rate when you open a CD. The top-tier rates aren’t as common as you may think. Indeed, the national average rate for a 1-year CD is a measly 1.81%.

Here’s what a rate at or around the average will earn.

So, if you have a CD with a rate at the average, you’re going to earn at least 60% less than if you invest in a CD with a competitive rate.

How to find high-yield CDs

There are a lot of ways to find CDs with great rates. You can start by exploring our reviews and recommendations:

Best 6-Month CD RatesBest 12-Month CD RatesBest 18-Month CD Rates

You can also check out your favorite online banks. Online-only banks often have better rates than most brick-and-mortar banks. Your smaller regional banks and local credit unions can also be great places to find good rates on CDs (and other products).

No matter where you get your CD, make sure you leave your money alone once it’s invested. Your high-earning CD will be a lot less lucrative if you’re forking over half (or more) of your interest in penalties.

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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.Brittney Myers 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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Want to get more from your Sam’s Club membership? Check to see if you’re ignoring valuable perks. Check out these unsung Sam’s Club benefits. [[{“value”:”

A Sam’s Club membership can help you save on groceries, household goods, and other essentials. If you have a Sam’s Club membership or are considering joining soon, it’s recommended that you familiarize yourself with the membership perks provided so you can get the most value from your annual fee. Here are a few underrated perks of a Sam’s Club membership.

1. Save time with Scan & Go

You’re missing out if you’re not using Scan & Go. This feature is available to all Sam’s Club members, regardless of their membership level. With Scan & Go, you can scan items with your phone as you shop and save time by skipping the regular checkout line. The app will display your cart total as you shop, which can help you stay on budget.

Here’s how it works:

Use the Scan & Go feature in the Sam’s Club mobile app to scan each item’s barcodeWhen you finish shopping, complete the payment process through the appShow your digital receipt to a staff member before walking out the door

This membership perk could save you time and improve your shopping experience.

2. Beat the crowds with early shopping hours

This valuable perk is only available to Sam’s Club shoppers with Plus memberships. A Plus membership costs $110 annually, while a Club membership costs $50 annually. One of the added perks of a higher-tier membership is early shopping hours.

Plus members can shop in-store one or two hours before Club members. This perk is available at select club locations. Shopping during these earlier hours could help you save time because fewer shoppers may be around. Exact early shopping hours may vary, so check your club’s hours of operation to confirm so you can plan accordingly.

3. Buy discounted sports tickets

Booking travel through Sam’s Club Travel and Entertainment can save you money. You can also get a deal on admission tickets to top amusement parks. But did you know that your membership perks provide discounted tickets to sporting events? You can score cheaper tickets for MLB, NFL, and NBA games, as well as other popular sports events.

4. Earn Sam’s Cash through Sam’s Cash Bonus Offers

Sam’s Club Plus members earn 2% Sam’s Cash on qualifying in-club purchases and curbside pickup orders, for a total of $500 in earnings per year. However, all members can earn Sam’s Cash in another way.

The retailer has a program called Sam’s Cash Bonus Offers. Members can earn Sam’s Cash when completing qualifying activities or making eligible purchases with participating retailers. You must link a debit or credit card to your account first and then activate offers that interest you. If you’re a Plus member, you’ll earn 20% more when you complete Sam’s Cash Bonus Offers.

Sam’s Cash is issued directly to your membership card each month. You can apply your rewards to purchases online, in-club, or in the mobile app. Alternatively, you can cash out your rewards at a Sam’s Club register. This is an easy way to boost your checking account balance.

5. Get curbside pickup for a low fee (or for free)

Here’s another valuable perk: Sam’s Club offers curbside pickup. This service is free for Sam’s Club Plus members, but if you have a standard Club membership, you can place a curbside pickup order for a low fee of $4 per order.

You can shop and pay online, park in a curbside pickup spot, and check in on your mobile device. An employee will then bring out your order and load your car. While not all items are available for curbside pickup, many items are. As you load up your virtual cart, look for items marked as pickup-eligible.

Put your Sam’s Club benefits to use

If you’re paying a yearly membership to shop at Sam’s Club, ensure you get the most from your membership. Take advantage of valuable benefits made available to members. Thanks to these perks, you could save time, earn more rewards, and get bigger discounts. Check out our best budgeting apps list if you’re looking for other ways to reduce your spending. Learning to budget with these apps can help you free up more income for your personal finance goals.

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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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Want to make sure that 5.00% APY savings account is from a “real” bank? See how to use a free tool from the FDIC to make sure your new bank is legit. [[{“value”:”

If you still have money sitting in a bank account earning near-zero interest, there’s never been a better time to move your cash. Some of the best savings accounts and money market accounts are now paying 5.00% APY (or higher).

But not everyone feels instantly comfortable with the idea of opening a new savings account. Many of the highest-APY savings accounts are from online banks, fintech apps that work with bank partners, or innovative brokerages. These banks might not have a local branch network in your state (or any branches at all).

Some people might feel nervous about opening a new savings account with an online bank that they’ve not heard of before. How do you know if any bank, especially one with no branches or no presence in your state, is legitimate and safe? One of the best ways is to make sure that your bank is a member of the FDIC.

Good news: there’s an easy-to-use tool from the FDIC called BankFind Suite that you can use for free. Let’s see how the FDIC website can help you make sure your new savings account is with a trustworthy bank.

Why FDIC membership matters for your savings account

The Federal Deposit Insurance Corporation (FDIC) is a federal program that helps inspect and regulate banks — and it insures the deposits of everyday people like you, up to $250,000 per qualifying account and ownership category. The FDIC was founded in response to the early days of the Great Depression when there was a wave of bank runs and bank failures. And back then, a bank failure would cause bank customers to lose most (or all) of their money in the bank.

Being a bank customer shouldn’t be so risky. Ever since the establishment of the FDIC in 1934, no American bank customer has lost a dollar of insured deposits due to bank failure. The FDIC is often taken for granted, but it’s an essential safety backstop for everyday financial life. Even when bank failures happen, you can feel confident that every dollar you put into your savings account (or other FDIC-insured accounts) will be there when you need it.

FDIC BankFind Suite: Finding FDIC-insured banks

BankFind Suite is a free tool from the FDIC that lets you look up banks by name, location, or website URL, and confirm if each bank is a member of the FDIC. You can also see the bank’s history of FDIC documents and other information — like branch locations, previous name changes, past acquisitions of other banks, and more.

This FDIC search tool is the fastest, easiest way to see for yourself that a bank is “legit” in the form of being a member of the FDIC (and being covered by FDIC insurance). Knowing that a given bank is FDIC insured can give you the confidence to take that next step and open a high-yield savings account.

All the banks listed among The Ascent’s picks for best savings accounts and best money market accounts are FDIC insured. But in case you want to see for yourself, or look up other banks that aren’t on our list, the FDIC BankFind Suite is a great resource.

Bottom line

Keeping your savings with an FDIC-insured bank is always a good move. Even in the worst-case scenario of a bank failure, your insured deposits will be safe. Along with savings accounts, some other types of bank accounts are also covered by FDIC insurance at FDIC member banks, such as checking accounts, money market accounts, and CDs.

If you see a tempting offer to sign up for a 5.00% APY (or higher) savings account, check to make sure the bank is “legit” in the eyes of the FDIC. Even if it’s a newly established bank, a smaller community bank, a fintech company that provides banking services through bank partners, or an online-only bank or brokerage, FDIC BankFind Suite can help you make sure that your new savings account is FDIC insured. Knowing that the federal government has your back can help you feel better about opening that new bank account. Go get the interest that your money deserves.

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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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