Money Management

I’ve made far too many Amazon blunders in my day. Read on so you can avoid my mistakes. [[{“value”:”

For the most part, shopping on Amazon is a practice that helps me save money throughout the year. I buy everything from toiletries to food to apparel on Amazon, and the $139 a year I pay for my Prime membership is generally more than worth the cost.

Although I’ve been a Prime member and Amazon shopper for years, there are certain mistakes I’ve made, even recently, that have left me kicking myself. Here are three I’m sharing so that you can avoid them.

1. Assuming Amazon has the lowest price

Because Amazon’s prices tend to be competitive, I often assume that the price I see on the site is the best one around. But that’s not always the case. And sometimes when I’m in a rush to make purchases, I end up spending more by not shopping around.

During the holidays, for example, there was a certain toy my daughters wanted that Amazon had available for $39.99. Because that was $10 off the regular price, I figured it was the best price.

But it wasn’t. When I mentioned to a friend a few days later that I’d snagged my kids’ toys for $39.99 apiece, she was quick to tell me that Target had them on sale for $34.99. I checked Target.com, and sure enough, she was right.

But I’ll be honest — at that point I had too much on my plate to deal with a new order and an Amazon return for $5 in savings. I was also, at that point, worried about the Target shipment arriving on time. Had I bought those toys from Target originally, though, I would’ve saved that money from the start and not had a hassle.

If you’re on a tight budget, it pays to shop around before making purchases on Amazon. You may find that Target, Walmart, or another store has a slightly better deal.

2. Assuming my Prime orders will arrive in two days

The nice thing about Amazon Prime is getting access to fast free shipping on my orders. But just because Amazon says a given item will arrive at my doorstep in two days doesn’t mean that’ll actually happen.

During the holidays, for example, I waited until the last minute to purchase a few of my gifts. And sure enough, shipping delays made it so that one of those items didn’t arrive in time. I wound up having to throw cash in an envelope in the absence of having a physical gift for one of my recipients, and I then had to deal with the hassle of returning the late item to Amazon.

It’s OK to fall back on Amazon when you’re down to the wire and need things shipped in a hurry. That’s a big part of the benefit of a Prime membership. But be mindful of the fact that your order may be subject to delays, particularly during busy periods like December.

3. Forgetting to cancel Subscribe & Save items

Amazon’s Subscribe & Save program makes it easy to stay well-stocked on the items I use regularly. But it’s super important to review your deliveries each month and make sure you actually need all of the items in your shipment.

A while back, I stopped taking a certain supplement I had set up to auto-ship every three months from Amazon. I didn’t check my Subscribe & Save delivery that month, and lo and behold, a bottle arrived in my mailbox. That left me stuck with it, since it wasn’t eligible for return due to safety issues. So if you’re going to use Subscribe & Save, be careful — especially with items that can’t be sent back.

Although I’ve had my share of positive Amazon shopping experiences, these mistakes have put a damper on that. Now that you’re aware of the blunders I’ve made, hopefully you can take steps to steer clear of them to avoid the aggravation.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon and Target. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool has a disclosure policy.

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Contactless payments have become the norm in the U.S. Check out why your small business may want to offer this option. [[{“value”:”

By the end of this year, 6 out of 10 in-store transactions in the U.S. are expected to be contactless payments. Customers have a number of options to complete transactions, including tap-to-pay and mobile wallets. If you haven’t made contactless payments the norm in your small business yet, you may want to consider switching over. Here are three good reasons why.

1. Contactless payments are more secure

There are those who still believe that it’s easy to hack a contactless payment. Nothing could be further from the truth. In fact, it’s easier for a thief to steal a customer’s physical card than to hack into a contactless payment.

One reason is EMV chips. EMV chips are embedded in the majority of credit cards in the U.S. and represent built-in security that makes it far more difficult to copy and store card information. To put that into perspective, between 2015 and 2018, chipped cards reduced counterfeit payment fraud by 76%.

2. The cost of a POS system does not have to break the bank

As a business owner, you may already have an existing POS system equipped to accept contactless payments, even if you’ve never used the feature. If you don’t have a POS system, the upfront costs may feel daunting, but it’s a one-time investment in your business (and a business expense). If you shop around, you should be able to purchase the POS hardware you need for under $1,000.

There are several ways to pay for POS hardware and processing fees. They include:

Upfront purchase: Older, more established POS providers often allow you to pay for the hardware, software, and installation you need upfront. If you choose this route, your initial costs will be higher, but you’ll pay lower monthly expenses. Whether you have a brick-and-mortar business or an online store, having lower monthly expenses can make it easier to stay within your operating budget.Subscription: With a subscription pricing model, you pay a monthly fee for the features you want in a POS system and a specific level of customer support. Start-up costs are low, but monthly bills can be high, especially if you have a complex business operation.Pay-per-use: As the name suggests, with pay-per-use, you only pay when a transaction is made. For example, Square charges between 2.5% and 3.5% of each transaction. So if a customer makes a $100 purchase, you’ll pay Square between $2.50 and $3.50. If your business doesn’t make many sales, this may be an option for you.

The point is that shopping around can help you determine the most cost-effective way to introduce contactless payment to your business through a POS system.

3. The lack of contactless payments could turn away customers

Consumers like to be in control of how they pay for purchases. The more payment options you offer, the better the chance that your customers will find the payment type they prefer. Whether a person wants to tap, dip, swipe, or pay cash, they’re more likely to revisit your business if they can pay in a way that’s convenient for them.

Given all the plates you keep spinning as a small business owner, the idea of introducing a new payment method may feel a little overwhelming. Fortunately, POS providers have sold so many systems since contactless payment was introduced in 2014 that they’ve learned to walk business owners through the process, step by step. In other words, you’re not alone.

If your dream is to grow your business, adding a contactless payment option may be one small step, but it’s an important one.

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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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There’s never been a better time to have money in the bank. Keep reading to see how much interest you can earn if you choose the right account. [[{“value”:”

Want to build your savings? Now is really the best time to focus on this personal finance goal, thanks to the availability of high-yield savings accounts. Let’s take a look at how much money you could earn as interest on a $5,000 savings balance, as well as the features to target if you need a new place to keep your cash safe and growing.

“High yield” are the keywords to finding a great savings account

“A savings account is a savings account,” you might scoff. But you heard it here first: Not all savings accounts are created equal. These days, I have two savings accounts, and the difference in APY (annual percentage yield, or how much interest you can earn in a year) between them is striking.

My savings account with a big national bank pays just 0.01% APY, while my savings account with an online-only bank is currently paying an APY of 4.20%. And to add insult to injury, the big bank account also charges a monthly maintenance fee if my account balance drops below $300. The FDIC keeps track of average rates on consumer bank accounts, and as of this writing, the average APY across all savings accounts is 0.46%.

Let’s break down the numbers

Say you have $5,000 ready to plug into a savings account. Here’s what that balance would look like in a year if you opt for a big bank savings account, a high-yield account with the same rate as mine, or an account paying the current national average.

If you’re going by interest earnings alone, we have a clear winner here. And I’ll point out that 4.20% is actually less than what you could earn on a savings account — as of this writing, the top APY on The Motley Fool Ascent’s list of the best high-yield savings accounts is 5.36%. $5,000 in an account there earns you $268 in a year.

It’s important to note, however, that rates on savings accounts are variable, which means they fluctuate with larger market conditions. My account that earns 4.20% was actually earning 4.35% just a few months ago. So keep this variability in mind — and capitalize on a high APY while you still can. If the Federal Reserve cuts the federal funds rate later this year, as is predicted, the rates on consumer bank accounts will fall, too (the two aren’t directly linked, but they tend to move in concert).

What else should you look for?

As you’ve already seen, it’s worth taking the time to find a savings account with a high APY — these days, 4% to 5% options are pretty widely available. But the rate isn’t the only consideration! Here’s what else to look for.

FDIC insurance

Don’t keep money with any bank or credit union that isn’t insured. For banks, they should fall under FDIC insurance. For credit unions, the equivalent agency is the NCUA. Each protects up to $250,000 per depositor, per account ownership category, and per bank, in the event of bank failure.

Accessibility

The biggest downside of an online-only bank? If you want to deposit cash, you need another bank you can do that with, and then you’ll have to transfer the cash over. It’s not ideal. Thankfully, a lot of online banks have robust ATM networks, so you can access your cash by linking a checking account to your savings, transferring cash, then using an ATM. Yes, there are extra steps involved, but it can be worth it for the higher APY.

Fees (or ideally, lack thereof)

One of the biggest perks of an online bank is the lack of fees, like a monthly maintenance fee. It’s 2024 — do we really need to pay to keep money in the bank? No, we do not, so check the fee schedule for any account you’re considering.

Full-featured mobile app

One of the best qualities of my online bank is its mobile app. It’s easy to use, allows me to separate money into sub-accounts so I can save for different goals, and shows me charts tracking my savings and interest earned over time. I recommend seeking a bank that offers a great mobile app.

Customer service

If you like being able to stroll into a bank branch and talk to a teller, you might find an online bank to be a big adjustment. Thankfully, many of them have 24/7 customer service available by chat and by phone. Explore customer service availability before opening an account with a bank.

Right now, it’s possible to earn real interest on your savings. If you want in, jump on the high-yield savings account bandwagon today.

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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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Budgeting on a fixed income does not have to be doom and gloom. Learn how to overcome four myths about living well on a fixed income. [[{“value”:”

According to the National Council on Aging (NCOA), the phrase “living on a fixed income” generally applies to older adults who no longer work or collect a regular paycheck. Once a person no longer receives a paycheck, they depend almost entirely on Social Security, retirement accounts, pensions, and savings. The NCOA also points out that approximately 40% of older Americans rely solely on Social Security income to pay the bills.

That said, it’s not all doom and gloom. A lot of what you’ve heard about living on a fixed income is plain wrong. Here are four examples of lies you’ve probably been told.

1. “You don’t need a budget at all”

You’ll never hear a good personal finance expert say you don’t need to budget because you don’t bring in enough money to fuss over — because it’s simply not true. Whether your monthly income is $1,500 or $5,000, budgeting allows you to make the most of it. Assigning a purpose to each dollar gives you a sense of where your money is going and ways to switch things up if needed.

Creating a budget is as simple as listing your fixed expenses, like rent, utilities, and groceries. Add in the bills you only pay occasionally, such as personal property taxes. Once you know those expenses are covered, add other ways you plan to spend your money. This may include club memberships, dining out, or entertainment.

Is it more enjoyable to budget when you have $10,000 a month coming in rather than $1,500? Absolutely, but the size of your budget doesn’t matter as much as where your money goes. Here are a few tips to make it easier:

Track your spending: One of the best ways to create an accurate budget is to track your spending for a month or two to get a solid idea of where your money goes. Once you know this, you may find money-saving measures, like canceling subscriptions you no longer use.Put it in black and white: Budgeting apps and spreadsheets (whichever you prefer) each allow you to see your budget at a glance — and setting up either tool doesn’t take long.Close any gaps: Once you’ve created a budget, it’s time to get creative. For example, if your fixed monthly income is $2,000 but you need $2,200 to pay your bills, think about ways to close the gap. It could be as simple as shopping around for less expensive auto insurance, setting up a stall at your local farmer’s market to sell crafts or other handiwork, or tutoring children in your area. You might also consider taking in a roommate to cover a portion of the bills. Just make sure you do a thorough background check on anyone you don’t know well.

2. “You can’t have any fun”

Another lie you may have been told is that the fun is over once you live on a fixed budget. Again, it’s pure malarkey. We each get a certain number of days on this planet, and each one is important. Buying into the myth that it’s all over if you’re not swimming in the dough is a waste of time.

Think about when you were a kid and all the times you had fun for free. It might have been as simple as wading in a creek, fishing with a good friend, or riding your bike. The best times in life are still free as long as you’re doing something you enjoy. Take a walk with a loved one or start a book club. Just don’t believe the fun is over.

3. “You can’t spoil the people you love”

You may worry that you can no longer spend money to spoil friends and family with gifts, dinners out, or special trips. If it’s not in your budget, that’s okay! It’s time to get creative again. Rather than buying a fancy gift, make a pan of brownies and spend time with the recipient. Instead of paying for everyone to go out to dinner, agree that you’ll each pay your own portion of the bill.

All anyone who loves you wants is your attention. They want time to hear your voice. You’re the only one who’s worried about not giving them costly gifts. Your presence is gift enough.

4. “There’s no way to save money”

Lie No. 4 is that it’s impossible to save money when you’re on a fixed income. It may not be as easy as it was when you were receiving a regular paycheck, but it is possible. If you’re saving for something special, like a weekend getaway, consider these tips:

Automate your savings: Figure out where you have a little wiggle room in your budget and have that money automatically deposited into your savings account each month.Create wiggle room: You may be able to carve out that wiggle room on your own by using a price comparison shopping app before heading out to the store. Another way to save money is by using a coupon app that can slash the cost of groceries. Deposit any money you save into savings.Earn a little extra: If you’re healthy enough, take on a part-time job to earn extra. Here are 12 side hustles you can do from the comfort of your home.

Circumstances change in each season of life, and change isn’t always easy. Still, with a little creativity, it’s possible to make the most of where you are now.

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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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