Money Management

Want to lower your Costco spending? Check out three easy steps you can take to make it happen. [[{“value”:”

Costco offers plenty of great deals, but you can still rack up a big credit card bill when you’re shopping there. That’s because there are so many great things to buy that it’s easy to go overboard and fill your cart to the brim.

Thankfully, you can take advantage of all that Costco has to offer while keeping more money in your bank account. Just follow these three super simple ways to spend less at the warehouse club.

1. Buy Kirkland brand products

The simplest and best way to save money at Costco is to buy Kirkland brand products. The store’s former CFO Richard Galanti said in a recent earnings call that the company’s view is that Kirkland products have “to be at least as good, if not better, quality than the leading national brand and at least a 20% savings as compared to what we sell the national brand for. “

Saving 20% is an unbeatable deal. And there are around 350 individual Kirkland brand products for sale on Costco store shelves. Many of them, ranging from olive oil to kitchen trash bags to maple syrup, have tons of devoted followers.

If there’s a Kirkland version of anything you are buying, you should absolutely try it instead of buying the brand name. Since Costco has a 100% satisfaction guarantee on most products, you really have nothing to lose — and a lot of money to save — by taking this shopping approach.

2. Take advantage of cash back

Getting money back on your purchases is another great way to save at Costco. And there are a few ways you can do this.

One option is to upgrade to Costco’s Executive membership. This will cost you $120 instead of the $60 basic membership. But you get 2% back on all purchases in the form of an annual reward. You can earn a maximum of $1,000 cash back over the course of the year.

If you spend at least $3,000 a year at Costco, you’ll make your added membership fees back. And once you spend more, you’ll make all your purchases 2% cheaper. Let’s say you do most of your grocery shopping at Costco and you spend $500 a month there. With $6,000 in purchases, you’d be in line to get $120 cash back. That’s an extra $60 in your pocket even after the extra membership fees are paid.

You can also opt to sign up for a credit card that offers you cash back at Costco. Your card’s cash back can stack with your Executive membership cash back so you’ll end up getting a lot of extra money back if you use that card every time you shop.

3. Flip through the Costco coupon book

Costco doesn’t accept manufacturer coupons, but it does have its own coupon book. You should check it before you visit to find special discounts on website and warehouse buys.

Often, you’ll find great bargains on seasonal items. For example, from May 15, 2024 to June 9, 2024, you’ll see bargains like an extra $100 off of SunVilla commercial sling wave chaise lounge chairs. But you can also find deals on everyday buys as well, like scoring $4 off a 38.5 ounce container of Pantene Shampoo or Conditioner. Checking for these bargains can help you reduce what you spend if you can stock up on items — like shampoo — while they’re on sale.

Each of these steps takes just a few seconds, but the payoff can be pretty big. Give these techniques a try at your next Costco visit to see just how much you can save.

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

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Learn how busy moms are successfully paying off debt with these creative strategies. Start your journey today. [[{“value”:”

For many moms, juggling child-rearing, work, and household management is tough enough without the added burden of debt. Yet debt is a reality for many. In fact, in 2023, the typical American held $21,800 in personal debt, not including mortgage loans. And women have almost two-thirds of the country’s staggering $1.54 trillion educational debt.

Here, we explore innovative strategies some busy moms have used to manage and eliminate their debt, proving that a little creativity and determination can go a long way toward managing your personal finances.

1. Take on a side hustle

Once burdened by a whopping $30,000 in credit card debt, Chris Roy found herself reassessing her finances following a health scare. Realizing the precarious nature of her situation, Roy took action by engaging in family-friendly side hustles where her kids could tag along, like evening and weekend daycare, yard work, and gardening.

By incorporating her children into her financial journey, she not only reinforced valuable lessons about money but also made the extra work more enjoyable. Evening daycare provided consistent weekly income, and yard work and gardening allowed her to make extra money while her kids played nearby.

Working a side hustle is a powerful strategy for busy moms because it provides flexibility and an opportunity to earn additional income — potentially without drastically compromising family time. Some other potential side hustles include freelancing, virtual assistant work, or selling handmade crafts online. Finding the right side hustle that fits seamlessly into your lifestyle can make debt repayment faster and less stressful.

2. Use a 0% interest balance transfer credit card

Credit card debt can feel insurmountable due to high interest rates, but savvy moms like Darcy Zalewski discovered a way to turn these financial tools to their advantage. Zalewski, who had $20,000 worth of debt, used 0% APR balance transfer cards to pay it off. Balance transfer credit cards allow debt to be moved over from a high-interest card to one with no interest, and the interest-free period can last a year or longer.

This approach requires discipline and strategic planning because balance transfer cards typically come with a balance transfer fee and a time-limited interest-free period. However, if used wisely, the 0% APR period can save significant money on interest payments and allow cardholders to pay down the principal balance faster. Moms considering this method should take care to:

Compare balance transfer fees among different cards.Calculate whether the savings from the 0% APR period outweigh the fees.Make a plan to pay off the transferred balance before the promotional period ends.

By following these steps, moms like Zalewski can gain substantial relief from overwhelming interest charges on the path to becoming debt-free.

3. Simplify your bank accounts

Managing multiple accounts can be overwhelming and lead to missed payments, fees, and unnecessary stress. Zalewski streamlined her bank accounts to just one checking and one savings account and set up auto-scheduled payments to her credit cards to avoid late fees. This straightforward approach made it easier to keep track of her funds and reduced the risk of missing a payment.

Simplifying your banking can streamline your financial life and let you clearly see where every dollar is going. It can reveal spending patterns that could be adjusted to free up more funds for debt repayment. For example, Zalewski realized she was spending too much on subscription services and made cuts that boosted her debt repayments.

4. Try the debt snowball method

Both Chris Roy and Dyana King, who tackled $34,907 in debt, used the debt snowball method to quickly reduce the number of creditors they owed money to. The debt snowball method involves paying off smaller balances first to achieve quick wins, then moving on to the larger balances with renewed motivation.

The psychological benefits of this approach cannot be overstated. By paying off smaller debts first, moms feel a sense of accomplishment and are encouraged to tackle larger debts. King emphasizes the importance of patience and consistency, recognizing that escaping debt is a marathon, not a sprint.

5. Seek financial advice and support

Facing debt alone can be overwhelming, but by tapping into supportive communities and seeking financial advice, moms can find valuable guidance and motivation. Dyana King tapped into the power of social media to connect with others in similar situations and to maintain accountability. By sharing her journey online, she received support and inspired other moms facing similar challenges. Her platform (Money. Boss. Mama) has become a resource for single mothers seeking to take control of their financial futures.

Besides finding support online, consulting a financial advisor or coach can help you develop personalized debt management strategies. Zalewski sought advice from financial coaches and read books on personal finance to deepen her understanding of debt management. A professional can offer tailored advice on debt repayment strategies, budgeting, and investment opportunities, making it easier for busy moms to take control of their financial futures.

Getting out of debt is no easy feat, but as these incredible moms have shown, it’s definitely doable with some smart tactics and solid support. Whether it’s finding a family-friendly side hustle, simplifying finances, or seeking community support, every step toward debt elimination brings moms closer to financial freedom. Their journeys prove that a little creativity and determination can go a long way toward managing personal finances. So, as you work toward becoming debt-free, remember that every small victory counts and that financial freedom is within reach!

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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The typical Gen Zer can become a millionaire with just a few hundred dollars per month. See how to save for a rich retirement, starting from zero in your 20s. [[{“value”:”

It seems like Americans of all ages feel behind on retirement savings. A recent survey from Northwestern Mutual found big gaps between how much Americans of every generation (from boomers to Gen Z) currently have saved for retirement and how much they think they’ll need for a comfortable retirement.

According to Northwestern Mutual’s survey, the average “magic number” that most Americans believe they need to retire is $1.46 million. But most Americans are nowhere close to millionaire status. Does saving almost $1.5 million feel overwhelming to you? If so, you’re not alone.

Thankfully, you don’t have to save that money all at once. Gen Zers (the youngest generation in the workforce) have literally decades of growth ahead — in your career, your earning power, and in the compounding interest growth of your investments.

Let’s look at how realistic it is for Gen Zers to save $1.5 million for retirement.

Average Gen Z retirement savings: $22,800 saved, 40 years left

The Northwestern Mutual 2024 Planning and Progress Study found that Gen Zers currently have an average of $22,800 of retirement savings and are the most optimistic group when asked about their future retirement prospects. In fact, 64% of Gen Zers surveyed said they think they will be “financially prepared for retirement when the time comes” — more than any other generation.

Sometimes Gen Zers get depicted as being gloomy about their personal finances — but they’re correct to be optimistic about retirement planning. That’s because being young is a retirement savings superpower! Let’s crunch some numbers to see why, with a few assumptions to start.

Gen Zers were born between 1997 and 2012. So let’s say that a typical Gen Zer (who’s already an adult, working full-time, and saving for retirement) is 27 years old in 2024.And let’s say that this 27 year old has saved the Gen Z average amount for retirement so far, based on the Northwestern Mutual survey: $22,800.If you’re 27 years old in 2024, your full Social Security retirement age is 67. So you have 40 more years to save and invest for retirement. That long time horizon means you have plenty of growth potential for your investments — you can afford a higher risk tolerance. Every dollar you invest today is going to work hard for you for a long, long time.

How to invest for retirement: 40 years away

Having 40 years is a lifetime in investing, and even just getting started with retirement savings in your 20s is a massive advantage. You might not realize it now, but your future self will thank you for every dollar you put into your 401(k), IRA, or brokerage account today.

If you’re still in your 20s, even if you have $0 saved for retirement, even if you have some credit card debt, don’t feel bad. Don’t feel like you’re “falling behind.” Your journey as an investor is just beginning, and you have all the time in the world.

Let’s see how much our typical Gen Zer can save for retirement, based on socking away a few hundred dollars per month.

How much you’ll have for retirement if you save $324 per month

Let’s say that you have the Gen Z average of $22,800 saved for retirement, and you can save a total of $324 per month ($3,888 per year). You can do all of your retirement savings within your 401(k) plan at work, especially if you get an employer match. Or if you don’t have a 401(k), you can put up to $7,000 into a Roth IRA or traditional IRA for 2024.

(Side note: Roth IRAs are often a better choice for Gen Z because while you don’t get a tax deduction for the money you put in, the money can be withdrawn tax-free in retirement. People in their 20s are likely in the lowest tax bracket they’ll ever be in. So for Gen Z, your future tax-free earnings from a Roth IRA are likely worth much more than a one-time tax break you’d get with a traditional IRA today.)

Since you have so much time for your investments to grow, you should probably invest in 100% stock ETFs or a target date retirement fund. Try not to worry about the stock market in the short term — just leave your money alone and let it grow.

Stocks go up and down, but for the purposes of this retirement plan, we’re assuming that your diversified stock portfolio could earn average annual returns of 8%. So after 40 years, when you reach age 67, you would have $1,502,531 saved for retirement. That’s enough to generate about $60,101 of income per year in retirement (assuming 4% annual withdrawals from your investment portfolio, which is a common suggestion).

But what if you have no money saved for retirement and want a bigger nest egg? Gen Zers told Northwestern Mutual they needed an even bigger “magic number” to retire: $1.61 million. Let’s see how you can get that, starting from nothing.

Starting with $0 at age 27: How to save $1.61 million for retirement

Let’s assume you can get an 8% average annual return with a diversified portfolio of (mostly) stocks over the next 40 years before retirement.

Based on calculations from Investor.gov, if you save $518 per month for the next 40 years, you’ll have $1.61 million at age 67.

Bottom line

Gen Zers shouldn’t feel behind on retirement savings. You have your whole life ahead of you to work, save, and invest. The more years you have for your money to grow, the less you need to save per month.

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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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Want better credit? Read on to see how one simple move could lead to that result. [[{“value”:”

Your credit score plays a huge role in your ability to borrow money, whether in loan or credit card form. If you have excellent credit, you’re likely to get approved for a loan or credit card, and snag a more affordable interest rate, too.

On the flipside, if you have poor credit, you may be denied a loan or credit card. And if you are approved, you risk getting stuck with a high interest rate that makes your payments less affordable.

That’s why it’s so important to do what you can to boost your credit score. And there are several steps you can take to achieve that goal.

But some of those steps may not be so easy, and they may take a fair amount of time to have a positive impact. So if you’re looking for a quick and efficient way to boost your credit score, there’s one simple move you need to make.

Check your credit report for errors

Of the various factors that go into calculating a credit score, your payment history carries the most weight, followed by your credit utilization ratio, which measures the amount of revolving credit you’re using at once. So if you establish a history of paying bills on time, it could greatly help your credit score improve. Similarly, if you pay off a chunk of your existing credit card debt, your credit score might get a nice lift.

But both of these moves take time. And the latter — whittling down credit card debt — isn’t easy. To pay off credit card debt, you need to come up with the money, whether by reducing your spending or working a side hustle to increase your income. Thankfully, though, there may be a much easier way to give your credit score a boost, and it’s checking your credit report for errors.

Your credit report is a summary of your borrowing history. It lists your open accounts, your balances, and whether you’re current on your accounts or not.

You actually have three different credit reports from three different bureaus — Experian, Equifax, and TransUnion. And you’re entitled to a free copy of your credit report from each bureau every week, which you can access at AnnualCreditReport.com.

Since it won’t cost you anything to get your credit report, a simple review could lead you to spot an error that may be working against you. And correcting a harmful mistake could result in a helpful credit score boost.

Credit report errors may be more common than you’d think

You may be surprised to learn that 20% of people have an error on at least one of their credit reports, according to the Federal Trade Commission. Now some types of errors may not impact your credit score. For example, an incorrect phone number shouldn’t have an effect on your credit.

But let’s say your credit report shows that you have a delinquent loan balance of $874 when, in reality, you paid off that loan on time last year when you were supposed to. That’s the sort of error you’ll want to fix, as a single delinquency on your credit report could lead to a much lower credit score.

To correct a mistake like that, you can get a letter from your lender confirming that you’ve met your loan payoff obligation, or log into your account and get a screen shot showing your current balance as $0 and current. From there, you can contact the credit bureau whose report was erroneous, send it this information, and wait for the issue to be resolved.

Credit bureaus are required to respond to credit report disputes within 30 days of receiving them, though in some cases, that window is extended to 45 days. But let’s say you’re able to get a delinquent debt removed from your credit report in 30 days. That could lead to a credit score boost in short order. It might take you 230 days to make a big enough dent in paying down a credit card balance to bring up your score.

Of course, your credit report may not contain any errors, in which case you may need to take other steps to boost your credit score. But it’s a good idea to check your credit report once every three to four months to make sure it’s accurate. And it’s especially important to check your credit report if your credit score has recently taken a hit and you can’t think of an obvious reason for why that may have happened.

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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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Most people know that CDs commonly offer higher interest rates than savings accounts. But check out a couple of lesser-known benefits you might enjoy. [[{“value”:”

A lot of people are rushing to open certificates of deposit (CDs) today. And I can totally see why. Today’s CD rates are the highest they’ve been in years, with some products paying upward of 5%. And while you might earn a totally respectable amount of interest in a high-yield savings account, why shouldn’t you chase the highest rate possible on your money?

But a higher interest rate isn’t the only benefit CDs offer over savings accounts. Here are a couple more reasons to choose a CD instead right now.

1. You don’t have to worry about economic conditions impacting your savings goals

The gap between what a savings account might pay you today versus a CD isn’t all that large. My bank, for example, is giving me 4.25% APY on my savings, whereas its best CD rate right now is 5% for a 12-month term. For a $10,000 deposit, we’re talking about a difference of $6.25 per month.

But remember, the interest rate on a savings account can change over time. The interest rate on a CD is locked in and guaranteed. And if you’re relying on a certain interest rate on your money to hit a particular savings goal, then opening up a CD is really the only way to make that interest income a sure thing.

For example, maybe you’re hoping to buy a new laptop about a year from now, and you’re relying on getting a certain interest rate on your money to have enough cash for your purchase. With a CD, you won’t have to worry about your rate going down.

This especially holds true right now. The whole reason savings accounts and CDs have been paying so generously is that interest rates are up broadly due to the Federal Reserve’s series of hikes in 2022 and 2023. The Fed has stated that it’s looking to start cutting interest rates at some point in 2024, though.

Once that happens, the savings account rates are likely to fall. But if you lock in a CD rate now, you’ll continue to enjoy that rate throughout your CD’s term, no matter how interest rates trend overall.

2. You may be less tempted to touch your money for fear of being penalized

The money you house in a savings account is cash you’re allowed to withdraw at any time. With a CD, you can technically withdraw your money whenever you want, but you’ll likely be penalized for taking your money out prior to your CD’s maturity date.

The amount of the penalty will depend on your bank, as well as the term of your CD. My bank charges a penalty of three months of interest for cashing out early on a CD with a term of 12 months or less. But actually, I don’t think that penalty is such a bad thing.

Hear me out: Since there’s no penalty to tap my savings, I may sometimes end up taking a withdrawal for things like concert tickets or weekend getaways when I should really be reserving that money for more important purposes, like emergency expenses or other big goals.

But because the money I have in CDs is more restricted, I’m very good about leaving it alone to avoid paying penalties. So if you’re serious about meeting a specific savings goal, you may want to stick to a CD, too. The fear of a penalty looming over your head might be the thing that helps you avoid dipping into your cash reserves when you really shouldn’t be.

Savings accounts offer the benefit of flexibility — there’s no question about it. But you may want to consider a CD in the near term not just for the higher interest rate on your money, but for the guarantee of that rate lasting and the penalty that might make it possible for you to avoid temptation.

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

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