Money Management

Don’t upgrade because the cashier asks you — do it to get 2% back on your trip to Paris. See why a Costco Executive membership is good for travelers. [[{“value”:”

A regular Costco Gold Star membership not only gets you in the door of the warehouse club but also gives you the ability to use the Costco Travel portal to save a pretty penny on your travel costs. This is an increasingly popular Costco perk, but one not everyone is using yet.

If you’re one of the folks saving money through Costco Travel but you aren’t yet an Executive member, consider upgrading. Why? Because Executive members get an annual Costco Reward equal to 2% of their eligible Costco purchases each year.

And guess what? Costco Travel purchases are included.

2% of a four-figure vacation is a lot of money

By the time you add hotels, airfare, and the rental car, even a long weekend can easily top $1,000. And when you’re booking a major vacation or honeymoon, you could be paying 10- or 20-times that.

At either end, 2% actually adds up pretty fast. Here’s what it looks like in real numbers.

A single vacation package of $3,000 would earn enough of a reward to cover the $60 upgrade cost. So any other eligible Costco purchases you make during the year would be pure savings.

And a larger vacation? You’re talking about some serious savings. In fact, 2% of a five-figure honeymoon trip would be enough to have a lavish night out on your first anniversary. (And nothing makes for a more romantic night than frugality, my friends!)

Stacking with Costco Travel’s discounts

Folks who aren’t familiar with Costco Travel may not realize what a gem of a service it can be. My research into Costco Travel shows you can get some great discounts on hotels, flights, and rental cars.

Indeed, the smallest savings I found was 7% — but the highest was 15%. And, as the table above shows, even small percentages add up fast when we’re talking about big numbers to start. (Just for a quick reference, 7% of $10,000 is $700, and 15% would be $1,500!)

So, even before you include the Executive Reward, you’re already saving a few hundred bucks. Then you’re adding on the 2% from the Reward, and now you could potentially be saving up to 17% on your trip.

But wait, there’s more.

Costco Travel typically codes as “travel”

According to reports, Costco Travel purchases will either show up on your credit card as Costco Travel, a travel agency, or as the travel provider (such as Budget, Delta, Hilton, etc.). Either way, this should count as “travel” for the majority of travel rewards credit cards.

In other words, you can still get your bonus rewards on travel purchases even if you book through Costco Travel. Depending on how you value those rewards, this could mean another 6% or more off the effective cost of your vacation.

I’ll add the required caveat here that this may not work for all travel cards. For example, U.S. Bank doesn’t typically count “travel agents” as an eligible part of the travel category, according to Reddit users’ experiences. You’ll want to check your card’s terms or ask your issuer directly to be sure.

Must use Visa or Mastercard

One thing to note is that Costco’s silly credit card policies extend to Costco Travel. Specifically, you’ll need to use either a Visa or Mastercard credit card to make your Costco Travel purchase. (In-store purchases in the U.S. only allow Visa credit cards, so this is at least a bit better.)

This still leaves plenty of great travel rewards cards to choose from, though, so don’t worry about getting some solid rewards here. Especially when you stack it on top of the Costco Travel portal discount and your newly upgraded Executive membership’s 2% Reward.

Thanks to all those savings, you’re nearly ready to pay for the next vacation!

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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, U.S. Bancorp, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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A Costco membership isn’t right for everyone. Here’s how to figure out if you should spend the money on one. [[{“value”:”

Costco recently reported that a whopping 73 million people are members of its stores. If you keep hearing your friends and neighbors talk up the benefits of Costco, then you may be toying with the idea of signing up for a membership yourself.

A basic (Gold Star) membership at Costco will cost you $60 a year. An Executive membership costs $120, but in exchange, you’ll get 2% cash back on your Costco purchases.

Of course, if you’re new to Costco, it could make the most sense to start with a basic membership for $60 and take things from there. But will that $60 membership actually be worth adding to your budget? There’s a simple way to find out.

Do a trial run

Unfortunately, Costco is not in the practice of offering free trial memberships. But Costco does allow current members to bring guests with them to shop. So if you want to get a sense of what your weekly purchases will cost you at Costco, tag along the next time a friend or neighbor is heading over to the store.

What you’ll want to do ahead of time, though, is make a list of the groceries and household essentials you typically buy on a regular basis. You’ll then want to take note of the prices Costco charges when you accompany your friend to the store.

From there, there’s more work to be done, because you’ll want to compare the prices at Costco to those of your local supermarket. And since Costco tends to sell in bulk, compare unit prices to get true equivalent costs — for example, figure out the per-ounce cost of the breakfast cereal you normally buy at both your regular store and Costco. But once you’ve run those numbers, you’ll basically know if a Costco membership makes financial sense.

Let’s say that you typically buy two gallons of milk, two cases of strawberries, deli meat, bread, cheese, and tortilla chips each week. If the price for all of those items is $45 at your local supermarket but $40 at Costco for the equivalent amount, then you’ve got your answer. Even if you only save $5 on groceries every other week, that’s $130 in savings after a year, which more than justifies the $60 cost of a membership.

And remember, once you join Costco, you’ll be privy to great prices on items you probably don’t buy every week, like clothing and electronics. So even if your weekly savings aren’t that substantial, you should know that a discount on a single big-ticket item might cover the cost of your membership fee. For example, if your high schooler needs a new laptop and you find one on sale at Costco for $499, while the cheapest price elsewhere is $599, that $100 in savings more than makes up for your $60 membership fee.

There’s little risk involved

It’s definitely a good idea to compare the cost of your regular purchases at the supermarket to what Costco charges. But you also shouldn’t stress too much about your membership not paying off.

If you find that to be the case, you can always cancel and get a refund. And to be clear, you’ll get a full refund, even if you’ve used your membership for a month or so before deciding you don’t want to keep it. So all told, if you’re on the fence about Costco, it could pay to join since there’s little financial risk involved.

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.Maurie Backman 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 credit card can be an asset to your small business’s finances. But read on for a few pesky fees that are best avoided. [[{“value”:”

Opening a credit card account for your small business can be a really good move. You can take advantage of perks like getting to keep your personal and business spending separated (a big help at tax time), establishing good credit for your business, and having a new way to manage your cash flow.

But it’s not all sunshine and roses with business credit cards — some of them charge fees that are worth your consideration before applying for the card in question. Let’s take a closer look at a few fees your credit card might charge — and how to avoid them.

Foreign transaction fees

If you ever use your credit card in other countries, or even use it to pay suppliers overseas, here’s one to watch out for. Foreign transaction fees are charged to cover the cost of processing payments using banks in other countries, and they often amount to around 3% of the transaction amount.

Paying an additional 3% to your credit card company on top of what you’ve charged has the potential to make your business expenses more costly, so this is definitely a fee best avoided. If you do business with clients or companies in other countries, make sure you select a card that doesn’t charge for that.

Late fees and penalty APRs

Just like personal credit cards, business credit cards have the potential to cost you a lot of money if you don’t keep up with payments (and ideally, pay off your entire balance every month). Some cards even require payment in full, and if you carry a balance, you’ll be charged a late fee as a percentage of it.

Others will charge a penalty APR if you pay late, and since the going rate on a credit card averages more than 20%, a penalty APR can come in closer to 30%. If there’s any chance that you’ll be carrying a balance from month to month, investigate the go-to and penalty APRs for any card you’re considering — and avoid cards that are designated as “pay in full.”

Annual fees

Finally, you don’t want to ignore an annual fee on any business credit card you’re considering. In some cases, paying an annual fee for a credit card (be it business or personal) can make sense. Cards with an annual fee usually pay a higher percentage of cash back or rewards on your spending — and they also often come with more valuable welcome bonuses and other useful fringe benefits, like purchase protection or cellphone insurance.

If you’re just getting your business off the ground, however, it might be a good idea to stick with no annual fee cards, at least to start with. The Motley Fool’s Ascent’s list of the best business credit cards features a few with no annual fee, and these still offer decent rewards rates (like 1.5% cash back across the board) and bonus categories that might be really useful for you, like office supply stores and internet service.

Is your business eligible for a credit card?

If you’re a sole proprietor like I am (freelance writer and editor, party of one), you might assume that you’re not allowed to open a business credit card. You’d be wrong, though! Even if your business consists of evening and weekend gig work (like driving for Uber) alongside a full-time W-2 job, you have access to these cards.

You can qualify using your own Social Security number — and just like with personal credit cards, the better shape you’re in financially, the better your odds of approval for a great card. Just take the time to assess all the fees you could be subject to if you get a business credit card — some of them have the potential to make using the card a lot more expensive.

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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 Uber Technologies. The Motley Fool has a disclosure policy.

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Eating well can come at a cost. Read on to see how you can minimize the amount you spend on healthy food items. [[{“value”:”

According to March’s Consumer Price Index, food costs are up 2.2% on an annual basis. When we break that down further, we see that grocery costs are up 1.2% from a year ago.

Frankly, I just don’t see how that can be.

These days, I feel like I’m seriously spending half my paycheck to feed my family. And I promise I’m not ordering takeout six nights a week — maybe once or twice a week, and cheap-ish stuff, like pizza. I’m also certainly not taking my young kids out to fine dining establishments on the rare occasions we do eat at a restaurant. If anything, we’re hitting up the diner.

What makes the high cost of food today even more frustrating is that because we do tend to fall back on unhealthy takeout once or twice a week when things get busy, I like to make our remaining meals as nutritious as possible. That’s tough to do on a budget today.

Here are some strategies that help me keep my costs down, and they may work for you, too.

1. Buy produce in bulk

My Costco membership is worth the money for the savings on bulk produce alone. Most weeks, I buy salad, broccoli, tomatoes, cucumbers, avocados, strawberries, and blueberries in bulk. And that’s in addition to other vegetables I’m cooking with.

On average, I’m able to shave about $20 off of my weekly produce bill going this route compared to buying all of those items at a regular grocery store. Your weekly savings will obviously hinge on the products you buy. But if you’ve been on the fence about joining Costco, you may want to do so for the bulk discounts — especially if your family eats a lot of fresh produce. A $60 annual membership could more than pay for itself if you start saving $20 a week like I do.

2. Keep frozen fruits and vegetables on hand

I don’t always have time to run to Costco to replenish produce when I start to run low. I usually do a weekly haul there and supplement with items from my local supermarket that’s right down the street.

Last week, I went in to buy fresh broccoli and promptly walked right out of the produce aisle in anger when I saw that a single bunch of broccoli was going to cost me almost $4. Nope. I’m all for eating healthy, but just no — not when I can buy six times that much broccoli for $8 at Costco.

So instead, I picked up a bag of frozen broccoli for $1.29 and called it a day. And it was enough to complete the meal I was making.

Frozen vegetables tend to get a bad rap, but in a pinch, they’re a perfectly acceptable substitute for the fresh version. I recommend having some frozen fruits and vegetables on hand in case the items you need in a hurry are more expensive than you bargained for.

3. Don’t shy away from store brands

Eating healthy doesn’t just mean loading up on fruits and veggies. It also means eating lean proteins and whole grains. And I find that I can save big on the latter by purchasing store brands.

At my local supermarket, whole grain pasta is often $0.50 cheaper per box if I buy the store brand. I’ve saved money on items like brown rice in the past, too.

I try to be careful with store brands for items my children are picky about, since I’ll end up wasting my money if I bring home the cheaper version and they don’t end up liking it. But my kids aren’t going to know which brand of rice or pasta I bought unless they go rummaging through the trash to look at the box (which I maybe wouldn’t put past them, but still). So it pays to eke out the savings when I can.

Let me be perfectly clear: My family does not always consume healthy food. On occasion, we’ll eat ice cream for dinner. And, as mentioned, pizza is a staple order in our meal rotation. But for the most part, we do try to incorporate vegetables and other nutritious products into our lineup. And while I make a point to prioritize food spending in our budget, I also do my part to save money whenever possible. With any luck, these tips will help you do the same.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Despite the buzz that CDs have right now, they’re not the right fit for everyone’s money. Read on for three other options to grow your cash. [[{“value”:”

The way we cover CDs here at The Motley Fool Ascent, you could be forgiven for assuming that these special timed savings accounts are perfect for everyone. Not so! Personally, I’ve been managing my money as an adult for over two decades, and I’ve literally never had a situation where a certificate of deposit was the right fit for me.

This is due to how CDs work. Namely, when you open one, you deposit a set amount of money for a set period. If you can keep the money in place for the duration of the CD’s term, you stand to earn a set amount of interest. For example, put $10,000 into a 1-year CD paying 5.25%, and in a year, you’ll have $10,525.

This is why CDs are a great option if you know for sure that you won’t need the money until a fixed date not very far in the future (the vast majority of CDs have terms ranging from three months to five years), and you want to know exactly how much interest you’ll earn. So if that doesn’t describe your situation, here are three better options for your money instead.

1. A high-yield savings account

Savings accounts are banking 101 — they are simple to use, easy to understand, and widely available from banks of all kinds. But if you want to benefit from higher APYs, open one with an online-only bank. They don’t have the overhead costs of running physical bank branches, so they pay higher rates on saved cash. The best ones also offer accounts with no fees and stellar mobile banking apps that make it easier to manage your money.

The Motley Fool’s Ascent’s list of the best high-yield savings accounts (HYSAs) features picks with APYs of 4.00%, 5.00%, and higher, just like CDs. But it’s important to note that in exchange for being able to pull out your money anytime, the rates on savings accounts aren’t fixed. They are variable and subject to change anytime. If the Federal Reserve decides to cut the federal funds rate next month, the rate on your HYSA will fall — but if you’ve locked money into a CD, that rate remains fixed for the duration of the CD’s term.

Why use it? A high-yield savings account is pretty darn perfect if you’re just getting started with saving some of your cash. You can open one with $0 in most cases and they’re easy to fund via a linked checking account or even Zelle transfers (this is how I send money from the bank I receive direct deposit with and the online bank that holds my HYSA).

2. A money market account

Do you like the higher yields of CDs and HYSAs, but want even more access to your money? A money market account (MMA) offers features of savings accounts and CDs (namely, that higher yield), but it also offers the easier access of a checking account. Many MMAs come with check-writing capabilities, or even a debit card that you can use to take cash out.

Again, your rate on an MMA isn’t fixed the way a CD’s rate is, but you’re still likely to do the same or even a little better with one of these versus a savings account. And the ability to reach your cash directly with one step makes this a good option for some savers.

Why use it? Got a stocked emergency fund or a pot of money you mostly maintain and add to, but also dip into occasionally? A money market account could be a great choice. Some MMAs require a minimum opening deposit, which makes them less appropriate for beginning savers than HYSAs, but if you can meet that, you’ll be golden.

3. A Roth IRA

A Roth IRA is a retirement account, but unlike a traditional IRA or 401(k), it’s your growth that will be tax free, not your contributions. You fund this account with after-tax dollars, and your contribution limit across all IRA accounts is $7,000 for 2024 (or $8,000 if you’re over age 50). There are also income limits to use a Roth, so double-check your eligibility.

You can open a Roth IRA with many different stock brokers, and use it to invest in a range of options. Your easiest is likely to be exchanged-traded funds (ETFs), which trade like stocks and track the performance of specific securities or benchmarks, like the S&P 500. And since the S&P 500 has earned an average annual return of 10% for the last five decades, if you can leave money invested for at least a few years, you’re likely to come out ahead here.

Why use it? If you’ve got a longer or undefined timeline for your money and are OK with taking on more risk for the privilege of growing it by more than a bank account can offer, a Roth IRA is worth a closer look. You can withdraw your contributions anytime — but must leave any investment profits alone until age 59 1/2, or face penalties.

As you can see, a CD isn’t your only option to grow your money. Those with savings accounts and money market accounts are also benefiting from higher APYs as of late, and a Roth IRA gives you the chance to grow your money for a less-defined future. Is one of these accounts a good fit for you?

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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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Looking to buy a home? Today’s real estate market isn’t easy to navigate, but see why it’s not all bleak. [[{“value”:”

If you were to ask the typical home buyer what today’s housing market is like, they’d probably have some pretty choice words to describe it. After all, in addition to elevated home prices and limited inventory, home buyers today are grappling with expensive mortgages. So all told, it’s not a great combination.

In spite of that, recent data from TD Bank finds that 75% of first-time home buyers are optimistic about the current real estate market. If you’re wondering how that could be, here are some positive aspects to focus on.

1. Mortgage rates could fall this year

The average 30-year mortgage rate as of this writing is 7.22%, according to Freddie Mac. A big reason mortgage rates are so elevated these days is that the Federal Reserve’s string of interest rate hikes in 2022 and 2023 helped push them upward.

But the Fed is expected to cut interest rates this year as inflation continues to cool. Once that happens, mortgage rates are expected to follow suit.

This doesn’t mean that we’ll be seeing 5% mortgages by the end of the year. But could mortgage rates land in the mid-6% range come December? That’s possible. And by 2025, we could see even more favorable rates. If you’re unable to afford a home right now due to where interest rates are sitting, know that waiting six months to a year to buy could result in a lot of savings.

2. Down payment funds can earn more interest until they’re ready to be used

The upside of the Fed’s series of interest rate hikes is that savings accounts are paying generously right now. So if you have down payments funds sitting in the bank waiting to be used, you have a prime opportunity to earn more interest on them. That could give you more leeway to make an offer once you find the right home.

Let’s say you have $50,000 to put toward a home. If your savings account is paying 4.25% interest, you could earn an extra $177 each month that cash remains in the bank. If you don’t end up buying a home for another six months, you’ll have more than $1,000 extra at your disposal in interest earnings by the time you’re ready to put in that offer.

3. Housing inventory is (slowly) picking up

The National Association of Realtors reports that in March, housing inventory rose 4.7% from February to 1.11 units. That represents a 3.2-month supply of homes.

For context, it generally takes at least a four-month supply of homes to meet buyer demand. And depending on the market, it can take six months’ worth of inventory to hit that goal.

But still, the fact that real estate inventory rose almost 5% in March from the previous month is a positive sign. If inventory continues to slowly but surely increase, first-time home buyers (and home buyers in general) will have more options to choose from. Also, more inventory means more negotiating power for buyers.

It’s easy to see why today’s first-time home buyers would have a negative attitude toward the housing market. But it’s great to see that so many are able to maintain a positive outlook. So if you’ve been struggling to find a home, know that there is a light at the end of the tunnel, and there are plenty of reasons to be hopeful.

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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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