Money Management

Have you bought the fixer-upper of your dreams? Find out how to keep it that way by making your remodeling project more affordable. [[{“value”:”

I’ve been a Realtor and a remodeler in my career — and I’ve also been the owner of more than a few homes that needed some upgrades. I’ve seen people cost themselves a great deal of money that was strictly unnecessary. But, if you read this article, maybe you’ll be spared the same fate.

So, without further ado, here are some practical ways to save on that fixer home you’ve just gotten yourself into (trust me, it’ll all be worth it when you’re done).

1. Reuse expensive parts

Whether you’re paying for your remodel out of pocket or using a personal loan to finance it, you can save a bucket of money by smartly reusing as many materials as possible.

Some won’t be suitable for reuse and will have to be tossed, but there’s one type of material in your home that’s almost certainly never going to go out of date: cabinetry.

“But wait,” you say, “these cabinets are ridiculously dated.”

To that, I would say that no, the cabinets aren’t dated — the doors are. Maybe your kitchen countertops are, too.

But one of the biggest expenses in a kitchen remodel is going to be cabinetry, and if you’ve got good cabinets with horrible doors, just take off the doors and buy new ones. You totally can do that. Measure the old doors and call your favorite cabinet maker or home improvement store for replacements.

Here’s an example of how much savings this can amount to: A 36-inch wide upper cabinet made from plywood is for sale at Lowe’s for $249 and contains two doors that are each approximately 28.5 inches high by 17.72 inches wide. The replacement doors listed for this cabinet, with the same dimensions, go for $34.99 each. That’s a total just shy of $70 to refinish this cabinet rather than replace it. Imagine doing that throughout your whole kitchen.

For some cabinets, you’ll need to special order new doors, but even then, for like materials and sizes, the odds are that you’ll see a substantial discount vs. buying entire cabinets. If you have a Habitat for Humanity ReStore nearby, you may find doors even cheaper, but be sure to measure carefully for the right fit.

2. Plan for your waste

A money-saving trick I like to use when I’m doing work in a house is to plan for the waste. There’s always leftover materials, and it’s such a, well…waste. If you know you’re painting your kid’s bedroom green and you don’t particularly care what color your master bathroom is right now, maybe you split that bucket of paint between them, rather than having two separate paint buckets that are half full at the end of your project.

This also works great for materials like sheet goods, tile, and anything that doesn’t key together (for example, vinyl plank flooring would be hard to do this with). If you know you’re going to tile your shower with a blue tile that’s sort of non-committal, maybe you can also use that in your kitchen backsplash as part of a mosaic or as an accent strip to use up the extras in the box.

Of course, ending up with zero waste is almost impossible on a remodeling project, but you can often get pretty impressively close if you consider the whole house when buying and cutting materials rather than just the project immediately in front of you.

3. Invest in your tools

If you’re remodeling a whole house, or even one room at a time, it can be tempting to cut corners by buying the cheapest tools you can find. This isn’t the time for that, even if you’re trying to save money. Reusable paint brushes and high-quality tarps can be used over and over and over again for years — or in some cases, decades, with the right care.

Not only does spending a little bit more upfront end up saving you a ton on the whole project, but you’ll often get a better result with less effort, too. That’s not to say that you need to buy the most expensive option that’s available, but take a moment to choose your tools with care and with a consideration to the end game of your project or home.

Just like you’d rather work with the best mortgage lenders possible when you buy a home, you need the best tools that are appropriate for the job.

Saving money on your remodel is easier than you think

No matter how extensive of a project you’re undertaking, in this era of higher home costs, it just makes sense to save as much money as possible when you’re doing it yourself. That doesn’t mean you should always do it yourself or that DIY will always save you money (sometimes it’s cheaper to hire a pro). But when the math is in your favor, reusing perfectly good materials, buying quality tools, and using your waste as much as possible will make your renovation loan or project budget go much further.

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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.Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool recommends Maker. The Motley Fool has a disclosure policy.

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Is a $50 Sam’s Club membership worth it? Read on to find out how to earn it back with just one purchase. [[{“value”:”

We’re all looking for extra ways to stretch our budget these days, and one way to do that is by becoming a member of Sam’s Club. The base membership costs $50 annually, but how quickly can you earn that money back by shopping at a discount warehouse club?

If you take advantage of the deals below, you can earn your annual membership cost back in just one trip. Here’s how to do it.

1. Buy a new iPad Pro

Savings: $50

Buying your electronics at Sam’s Club is a quick way to earn back your membership cost. I configured a new 12.9-inch iPad Pro with 128GB of storage on Sam’s Club website, and the price was $1,049, a full $50 cheaper than on Apple’s website.

You can boost your savings even further if you buy an iPad warranty. The warehouse club offers a two-year warranty for electronics priced between $500 and $10,000 through Allstate for $84.99. This warranty is much cheaper than the two-year AppleCare for iPad plan Apple sells for $149.

2. Buy travel gift cards or book a vacation

Savings: Up to $200

You can save a lot of money by buying discounted gift cards at Sam’s Club, and avid travelers will appreciate the lower-priced airline gift cards. Sam’s Club sells a $500 Southwest Airlines gift card for just $449.99, instantly saving you $50.

You can extend your travel deals if you’re staying at an Airbnb after you arrive at your location. Sam’s Club sells a $500 Airbnb gift card for just $484.80, saving you more than $15.

And if you want to save money on the entire vacation package, you can use Sam’s Club Travel to book vacation packages at a discounted rate. I found a deal for $200 off when booking at least two hotel nights and buying three park tickets to Universal Studios.

3. Buy prescriptions from Sam’s Club pharmacy

Savings: More than $50

Sam’s Club members can visit any of the 62,000 participating pharmacies and use their membership to receive up to 80% off the retail price of brand-name and generic prescriptions. While the discount varies, Sam’s Club says the average savings of its America’s Pharmacy program is 54%.

The average American spends more than $1,400 on prescriptions annually. So, assuming you paid for a three-month supply of prescriptions costing $350 and saved just 15% by buying them at Sam’s Club, you’d save $52.50 in just one trip.

4. Buy an outdoor furniture set

Savings: $400

I found a Member’s Mark six-piece outdoor dining furniture set listed for $1,499 on the Sam’s Club website — $400 off its original price. The furniture set has great reviews, too, with 377 reviewers giving it an average rating of 4.6 stars.

If you’re concerned about buying furniture from Sam’s Club, don’t be. Consumer Reports recently compared online shoppers’ overall satisfaction with their furniture purchase, and Sam’s Club ranked sixth of 17 retailers, beating Pottery Barn and Wayfair.

5. Get a set of tires installed

Savings: $80

If you purchase four tires from select brands, Sam’s Club has a free tire installation deal right now. The regular installation price is $20 per tire, so you’ll save $80 on top of the discounted tire costs.

In addition to the instant savings, Sam’s Club tire installation includes 24-hour roadside assistance, road hazard protection, lifetime tire balance, rotation, and flat repair, making the $80 savings an even sweeter deal.

While all Sam’s Club members have lots of potential savings options, some shoppers may want to consider upgrading their membership to the Plus tier to save even more.

Sam’s Club Plus costs $110 annually but includes perks like free shipping, free curbside pickup, and additional pharmacy savings. The Plus membership also allows you to earn 2% cash back on qualifying purchases, with a limit of $500 annually. If you do most of your shopping at Sam’s Club, the Plus membership may be the ultimate discount warehouse savings hack.

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

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Both balance transfers and personal loans can help you get out of debt. Which is best for you? Keep reading for a closer look. [[{“value”:”

If you have credit card debt that you’d like to pay off, two financial tools you can use to help knock out your debt as quickly and efficiently as possible are balance transfers and personal loans. While these are both preferable to paying a 20% or higher APR (like most credit cards have), the best choice for you depends on your unique situation.

Here’s a quick guide to both options and what you should keep in mind before you decide.

Reasons to use a balance transfer credit card

Getting a 0% intro APR on balance transfers might seem to make this option your best one, especially considering that it’s tough to find a personal loan with an interest rate below 10% these days. So, we’ll start there.

While the average credit card interest rate has increased considerably over the past couple of years, it might surprise you to learn that 0% intro APR balance transfers are still fairly easy to find. In fact, some of our favorite balance transfer credit cards have 0% intro APRs for as long as 21 months. And in many cases, the 0% intro APR offer applies to new purchases as well as balance transfers.

In a nutshell, a 0% intro APR balance transfer ensures that every dime you pay toward your debt is applied to the principal. If you transfer a $10,000 balance and make a $500 payment when your first statement is due, you’ll owe $9,500 — not a penny will go anywhere else.

One big caveat, which we’ll also discuss in the next section, is that balance transfers aren’t free. You’ll typically pay 3% to 5% of the amount transferred as a balance transfer fee, so if you transfer $10,000, you could end up with a starting balance as high as $10,500 on your new card. To be sure, this is far better than paying a 25% APR, which is roughly the current credit card average, but it’s worth keeping in mind.

Reasons to use a personal loan instead

While balance transfer credit cards can be excellent financial tools, there are a few reasons why a personal loan could be a better option:

Longer time to pay: A balance transfer is only a smart idea if you know you’ll be able to pay off the balance before the introductory period runs out. If not, you’ll start paying interest, and many credit cards have 25% or higher APRs. Meanwhile, personal loans can have terms of as long as 72 months (six years) or even longer in some cases. By stretching your repayment term, your monthly payments can be more affordable.Higher limits: If you have $5,000 or $10,000 in credit card debt, a balance transfer card might be able to accommodate you. If you have $30,000 or $50,000 in debt, that could be an issue. Fortunately, some of the top personal loan companies originate loans of as much as $100,000.No fees: To be sure, some personal loans have origination fees, but many of them don’t. As mentioned, balance transfers typically come with fees of 3% to 5%, so a personal loan can help you avoid this.

Which is best for you?

Like most personal finance decisions, there’s not a one-size-fits-all answer. It depends on a few factors, such as the size of your debt, how quickly you’ll realistically be able to pay it off, and more. However, the key takeaway is not only that these options exist, but there are plenty of different choices within each category, so shop around and see which is right 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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Investing your 401(k) funds is crucial for a comfortable retirement. Read on for a few simple strategies for asset allocation. [[{“value”:”

If you’re 40 years old, you’re perhaps entering a happy, prosperous stage of your career and your life as an investor. Ideally, you might be making more money, you might have gotten promoted, and you might have seen some big growth in your stock portfolio.

The good news as a 40-year-old is that your career, and your growth potential as an investor, is still far from over. You are hopefully still approaching your peak earning years, and you still have 25 years (or more) until retirement age. Being 40 years old is kind of a perfect sweet spot as an investor: You ideally have more cash coming in each month that you can invest, and you also have enough time left to invest aggressively for retirement.

Turning 40 could be a good occasion to revisit your 401(k) investments. How is your money allocated into stocks, bonds, and other investment options? Do you have an appropriate mix of stocks and bonds for your age, or are you invested in a way that’s too risky (or too risk averse)?

Let’s take a look at a few simple frameworks for thinking about your 401(k) asset allocation as a 40-year-old 401(k) investor.

1. Don’t ignore target date retirement funds

If your 401(k) provider offers them, one of the easiest ways to invest at any age is to use a target date retirement fund. This is a kind of mutual fund that automatically invests your money in a diversified mix of stock and bond funds, in a way that’s appropriate for your age and time horizon. A good target date retirement fund can give you an optimal blend of investments, while managing risks.

Here’s how this might look for a 40-year-old with a 401(k). Your Social Security retirement age is 67; so let’s say you have 27 years left until retirement. That means you should consider a target date fund with a “target” of 2050 (or so). As an example, the Fidelity 2050 Freedom Fund is a target date retirement fund that a 40-year-old might choose. As of April 21, 2024, this fund is invested in a mix of 56% U.S. stocks, 34% international stocks (for a total of 90% stocks), and only 10% bonds.

With a target date fund, as the years go by and you get closer to retirement age, the fund will be automatically rebalanced by the fund manager. For example, instead of 90% stocks and 10% bonds, over the years, the Fidelity 2050 Freedom Fund will gradually sell some stocks and buy some bonds, to give you a mix at retirement that’s closer to 55% stocks and 45% bonds.

With target date retirement funds, you get professional help to allocate your investments, with hands-off investing that does the hard work for you. As you get closer to retirement, your 401(k) will be getting less risk of losses from the short-term volatility of the stock market, and more guaranteed income from bonds. And even people who are retired still often need some stocks in their portfolio. Target date funds don’t stop when you retire — they can help provide that ongoing upside potential, while managing your risks.

2. Stick with (mostly) stocks

As a 40-year-old with a 401(k), your investments should still mostly be held in stocks. You still have twenty-five (or more) years for your money to grow, and you can afford to recover from short-term downturns (or even a bad years-long downturn) in the stock market. As shown from the example of the 2050 target date retirement fund, 90% stocks is still an appropriate allocation for 40-year-olds.

But in case your 401(k) does not offer a target date retirement fund, or you don’t want to pay the slightly higher fees that target date funds might charge, you can build your own fund. Use low-cost stock market ETFs, like a simple S&P 500 index fund or the Vanguard Total Stock Market ETF. As a 40-year-old, if you’re comfortable with this level of volatility and short-term investment risk, you could put 90% of every dollar in your 401(k) into stocks. And put the remaining 10% into a low-cost, diversified bond index ETF, like the Vanguard Total Bond Market ETF.

The exact investment options available in your 401(k) will depend on your employer and on the 401(k) plan provider that manages your funds. But if you don’t have a target date retirement fund, look for low-cost index funds and ETFs that let you buy hundreds (or thousands) of stocks and bonds all at once.

3. Try the classic 60/40 portfolio

If a 90% stock/10% bond portfolio feels too risky, if you worry about downturns in the stock market, if you struggle to sleep at night knowing that “too much” of your retirement cash is tied up in volatile stocks…that’s OK. You don’t have to invest more aggressively than your comfort level. Instead, consider a classic strategy called the “60/40 portfolio” — 60% stocks and 40% bonds.

Owning 40% bonds and 60% stocks might not make your money grow as fast as a portfolio based on 90% stocks, but it can help prevent you from experiencing some of the short-term downsides and stresses of the stock market. Investing in bonds is also not risk free, and their prices can go down, but bonds tend to deliver steady income and can sometimes outperform stocks.

Bottom line

Choosing the right asset allocation as a 40-year-old depends on your risk tolerance. But you have plenty of time ahead of you and can afford to accept some short-term risks by buying stocks in your 401(k).

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Figuring out your finances can feel daunting, but it doesn’t have to be complicated. Take a look at a few tips that can paint a simpler picture for you. [[{“value”:”

Many aspects of adulthood can feel overwhelming. Picking a healthcare plan, choosing an insurance policy, and paying taxes all come to mind. For many people, figuring out their personal finances might also make the list. And while a ton of complicated factors can go into a person’s financial picture, there are also plenty of really simple but effective money tips that anyone can understand — even a kindergartner.

1. Don’t borrow more than you can afford to pay back

If you’re on the playground and borrow someone’s kickball, but you launch it over the fence to win the game, you’re not going to be able to give the ball back to the kid who lent it to you. Now you have to go out and buy a new kickball to pay them back.

The same concept applies to overspending on a credit card. If you spend $1,000 on a big vacation but can’t afford to pay it off when your credit card bill arrives at the end of the month, you’re going to end up paying interest on your expense. Credit card interest rates can be really high, with the average rate sitting at nearly 23%. If you decided to put $100 per month toward your vacation bill, it would take you 11 months and cost you an extra $119 in interest to pay off.

RELATED: Credit Card Interest Calculator

Instead of going for the home run (or pricy vacation), kick a single and choose a low-cost day trip instead. Don’t put yourself in the position where your choices unnecessarily cost you more money over time.

2. Put some of your money in savings and stocks and leave it be

It’s springtime, and you got some carrot seeds from the garden store to plant in your backyard. You find just the right spot for them, clear out the weeds, add some water, and wait for them to grow. If you get impatient and start poking, prodding, and digging up the seedlings to see how they’re doing, it’s not going to go well.

It’s a good idea to take the same approach to saving for the future. Find a good home for your cash — whether that’s a high-yield savings account, an individual retirement account (IRA), or a taxable brokerage account — tend to it gently, and add to it occasionally, but keep your hands off for the most part until it’s harvest time. Even Warren Buffett says this is an excellent long-term strategy to grow wealth.

If you fiddle too much with the funds, whether by tapping them for unnecessary expenses or moving them around to try to find just the right patch of sunlight (or a slightly higher interest rate), you’ll lose out on the chance for your money to grow.

3. Earn rewards on your spending

There are two candy stores on opposite sides of the street. Both stores let you buy whatever you like, but one store has a promotion running where you get a free lollipop with every purchase. When deciding where to spend your allowance, you’re probably heading over to the store with the free lollipop, right?

Now replace lollipops with credit card reward points. If you have the credit score to qualify for a card that earns cash back or miles on your purchases, you’ll come out ahead. Why pay with cash or a debit card when you could pay with a credit card that lets you accumulate free candy?

Many credit cards that earn rewards charge an annual fee, so you’ll have to decide whether the benefits outweigh the cost of the card. But in many cases, you can earn a lot more in rewards than what you pay for an annual fee, as long as you can make your full payment on time every month to avoid accruing interest on your spending.

Keep it simple

There are a ton of important decisions we need to make when we grow up, and it can be daunting not knowing which is the correct path. But not everything has to be so complicated. Just because a piece of advice is simple doesn’t mean it’s ineffective. Follow these tips, then grab a juice box and a snack pack; you’ve earned 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.The Motley Fool has a disclosure policy.

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