Money Management

Even though my elite status includes complimentary upgrades, they aren’t guaranteed. Find out when I’ll pay for the larger seats. [[{“value”:”

I fly frequently, and because the closest airport to my home is a rather small one (served by just two airlines), I tend to fly with American Airlines each time. Simply put, its routes are generally more convenient for where I go, and it’s usually the lower-cost airline of the two that I can choose from. In addition, I have an American Airlines co-branded credit card that I use for most of my everyday spending and recurring payments.

The combination of these two things has given me elite status in the American Airlines AAdvantage program. In fact, for the current year, I have AAdvantage Executive Platinum status, the highest level that is publicly available. Through spending money on flights, using my credit card, utilizing the AAdvantage e-shopping portal, and a few other methods, I barely earned the required Loyalty Points to reach this level.

Although I qualify for free upgrades to business class, there are some situations where I end up paying for an upgrade. Here’s why it can still be worth paying extra to sit in those big front seats.

Executive Platinum members get frequent upgrades

There are several major perks of Executive Platinum status, but perhaps the most notable is free first- and business-class upgrades on domestic flights. All four tiers of elite status get free upgrades for the status member and a companion, but there are a couple of big differences when it comes to Executive Platinum.

Aside from Concierge Key members (the top status level, which is not publicly available), Executive Platinum members are at the top of the upgrade priority list.Executive Platinum members are eligible for complimentary upgrades on both paid travel as well as award tickets paid for with miles.

Now, there are some big variables that determine your likelihood of getting upgrades with elite status, in addition to your particular status level. But overall, I’d estimate that I get complimentary upgrades to business class about 60% to 70% of the time.

Why I sometimes pay for a business-class upgrade

To be sure, I don’t need to sit in business class all of the time. But there are some situations where it’s more than just a luxury (if I need to get work done, for example). So, there are some cases where I’ll willingly pay for a business-class upgrade, especially where these three things apply.

1. It’s a very busy route for business travelers

I’ve been on flights where literally half of the plane has Executive Platinum status. This isn’t common if you’re flying on a route commonly taken by leisure travelers, but if you’re flying from say, Atlanta to Los Angeles on a Monday morning, high-status business travelers can dominate the aircraft. I’m an Executive Platinum member, but within the status level, priority is determined by the number of Loyalty Points you’ve earned in the previous 12-month period, so I get outranked on routes like these quite often, especially when the business-class cabin is rather small.

2. It doesn’t cost much to upgrade

There have been times when I’m booking a flight and the price difference between business class and main cabin is less than $100. If this is the case, and the route is likely to have lots of business travelers, I’ll sometimes pay the extra charge, especially if the third reason applies.

3. I need to get work done

Let’s face it. It can be extremely challenging to work on a laptop in a small main cabin seat. I’m technically an independent contractor, meaning that I get paid based on production. So if the value of the work I can get done is greater than the cost to upgrade, it could be worth it from a budgeting perspective.

I’ll rarely pay for a business-class upgrade unless all three of these things are true. But the bottom line is that there are times when it makes sense, even when I have a high status level with the airline.

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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.Matt Frankel 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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Most rewards credit cards provide multiple ways to use your cash back or points. Learn about a few underrated options for redeeming your rewards. [[{“value”:”

When you have a rewards credit card, you’ll need to figure out how to use the rewards you earn. Whether it’s a cash back card or a travel card, there are usually several redemption options.

The most popular choice is also the easiest one. Half of all cardholders redeem rewards toward their credit card balances, according to a recent study on credit card habits by The Motley Fool Ascent.

That’s a good way to use your rewards, but there could be some better options available that get you even more value. Here are a few ideas to consider.

1. Invest them in the stock market

Instead of using rewards to save cash right now, what about using them to build wealth? Lots of people aren’t able to invest as much as they’d like because of all the bills they have. Your rewards could be a great way to boost your investments.

Let’s say you earn $500 per year in rewards and decide to invest it. The average stock market return is about 10% per year over the long run. If you earn that much, then after 20 years, you’ll have contributed $10,000 total, but it will be worth $31,501.

If you’re interested, there are a couple of ways to invest credit card rewards. You could see if your brokerage has any rewards credit cards available. A few brokers have cash back cards that allow you to send your cash back directly to your brokerage account.

You could also do this with any card that lets you redeem rewards as cash back to your bank account. Once you’ve deposited your cash back, you can send it to a taxable brokerage account, or either of the following types of retirement accounts:

Individual retirement account (IRA)Roth IRA

2. Transfer travel rewards to your favorite airlines and hotels

Many of the top travel credit cards let you transfer points to their travel partners. The card issuer partners with certain airlines and hotels, and you can send your points over to their loyalty programs.

For example, let’s say you have a travel card that has United Airlines and Hyatt as transfer partners. If you want to book a flight with United, you could transfer your points to United to turn them into miles. If you want to book a hotel stay with Hyatt, you could transfer your points there and turn them into World of Hyatt points.

This is a useful option because you can get much more value from your rewards this way. When you redeem rewards toward cash travel purchases, you normally get $0.01 to $0.015 per point, depending on the card. At that value, 100,000 points is worth $1,000 to $1,500.

I frequently get $0.03 or more in value by transferring my points and booking award travel. Those same 100,000 points can be worth $3,000 to $4,500 or more this way. Only 14% of cardholders transfer their points, but if you like to travel, it’s often the best option.

3. Use cash back to buy discounted gift cards

This is a simple way to squeeze more value out of cash back. Before you redeem your rewards as cash, see if your card issuer gives you the option of redeeming it for gift cards. Many card issuers do, and they also often have discounts available with some retailers.

I’ve seen discounts ranging from 5% to 20%. So if you want to buy a $100 gift card, you may be able to get it by redeeming $80 to $95 in cash back.

Make sure you’ll be shopping with that retailer soon if you decide to do this. It doesn’t do you any good to buy a gift card that ends up sitting around unused for months. In that case, you’d be better off taking the cash back option. But if you know you’ll be buying something from a retailer in the next week or so, then a discounted gift card is worth it.

Learning about your credit card’s rewards program can pay off. The easiest redemption option isn’t always the best deal. Most rewards cards have at least one of the options above available, and some have all three.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool recommends Hyatt Hotels. The Motley Fool has a disclosure policy.

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Costco members pay $60 or $120 to shop at the warehouse. But if you’re in the market for any of these items, see you could save more than your membership costs. [[{“value”:”

Costco charges $60 annually for a basic membership and $120 for an Executive membership, the latter of which lets you earn 2% cash back on most purchases. And while it might seem like the scam of the century to pay money to shop at a store (where you’re going to pay more money to buy the things you want), most members find the dues are low in comparison to how much money they’re saving.

In fact, you could save as much as your Costco membership costs ($60 or $120) in a single purchase. Yes, just one purchase. While plenty of single Costco purchases could accomplish this, here are four that frequently offer great savings.

1. Car insurance

Buying car insurance through Costco could easily pay for your membership, possibly 10 times over. While Costco doesn’t sell car insurance itself, it gives members an exclusive discount through its partner CONNECT, which is backed by American Family Auto.

According to Costco, members save on average about $595.86 in the first year they switched to CONNECT. Saving nearly $600 in car insurance basically pays for a basic Costco membership for the next 10 years. Better yet, this can be combined with other traditional insurance discounts, like safe driving, paperless billing, and multiple policies, to help you save more on your annual premiums.

2. Mattresses

Costco frequently sells mattress brands at good prices. Not only is the sticker price competitive, but Costco often sweetens the deal by offering promotions that can help you save double what a basic membership costs. For example, Costco is currently offering $80 to $120 off its Novaform 14″ ComfortGrande Memory Foam Mattress, one of its best deals overall. The online price of this mattress is $319.99 after the discount.

Oh, but it gets better. Costco will also manage delivery of your mattress, help you set it up, and haul away your old mattress. These services are all included in your price, so there’s no extra charge. Finally, mattresses are covered under Costco’s 100% Satisfaction Guarantee, so if you don’t like it, you can return it for a full refund at any time.

3. Tires

If you need to replace your tires, Costco could help you save. The warehouse club gives its members free tire installation when they buy a set of four. This could automatically save you about $80, as some tire shops charge around $20 per tire for installation. You also get free five-year roadside hazard warranty and lifetime maintenance service for each tire.

Additionally, Costco frequently runs promotions when you buy certain brands of tires. For example, you can currently get $80 off a set of four Michelin tires that total $900 or more or $60 for Michelin tires that total less than $899.99. Better yet, these savings are taken off the price of your tires. This differs from most tire shops, which typically give you a charge card or gift card worth your savings.

4. Electronics

Costco frequently runs deals on its electronics, including PCs, laptops, printers, cameras, and televisions. For example, Costco is currently selling a 14-inch MacBook Pro (14-core GPU, 512 GB SSD) with AppleCare+ for $2,019.98. You can buy the same laptop with AppleCare+ through Apple for $2,278 or $2,128 through Best Buy.

That said, you don’t always need a Costco membership to save on electronics. For example, Costco currently has a Samsung Galaxy Tab S9 for $499.99 after a $50 discount. Meanwhile, you can buy the same device through Samsung and Best Buy for the same price.

All in all, if you’re in the market for these items or services, buying them through Costco could mean savings as much as your membership costs. Combine them with your regular Costco shopping to help you streamline your monthly budget.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Apple, Best Buy, Costco Wholesale, and Gala. The Motley Fool has a disclosure policy.

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Think you’ll save big at the dollar store? Here’s why you may want to think again. [[{“value”:”

These days, inflation is still wreaking havoc on consumers’ budgets. The Consumer Price Index, which measures changes in the cost of consumer goods and services, was up 3.5% on an annual basis in March. And so not shockingly, a lot of people are trying to do what they can to lower their spending and save money wherever possible.

You may be inclined to turn to your local dollar store as a means of saving on everything from grocery items to household essentials. But here’s why shopping at the dollar store may not actually end up saving you much or any money.

1. You may not actually get the lowest price

When you walk into a store where pretty much everything costs $1, or somewhere in that vicinity (some dollar stores have raised their base price to $1.25), it’s easy to assume that you’re getting the best price available on a given item. But that’s not always true.

First of all, if you’re buying a large quantity of a single item, you may end up with a lower price if you purchase it in bulk at a store like Costco, or even online via Amazon. Also, sometimes supermarkets run promotions that put the cost of canned or boxed goods lower than $1, making that the better bet.

Another thing you really need to be careful with at the dollar store is knowing how much product you’re getting. It may be that your local dollar store has your favorite hand soap available for $1, whereas at the supermarket, it’s $1.99. But if your dollar store is charging you $1 for six ounces and your supermarket is charging $1.99 for 13 ounces, the latter is actually the better deal. So when comparing prices, always pay attention to how many ounces of product you’re getting as applicable.

2. You may not get the highest quality items

Your local dollar store can be a great place to pick up small items, like toys for your kids as a reward for rocking a test or meeting a certain milestone (say, completing their first dance recital). But while you might spend a lot less money overall at the dollar store, you may not get the highest quality items.

In fact, let’s say you buy your child a toy robot figure for $1 as a congratulatory gift for participating in their first softball game. What may happen is that the toy breaks later that same day, forcing you to buy a higher quality replacement at Target or Walmart for $7. So at that point, you’ve basically thrown out the money that you spent at the dollar store.

3. You may be tempted to buy more than you need because of the low price point

When you’re in a store where everything costs about $1, it can be tempting to add extra items to your cart. After all, even if you make 10 impulse purchases in a single shopping trip, that’s still just $10 extra.

But that’s a trap that might really harm your finances if money is tight and you’re trying to conserve funds to pay off debt. So if you have a tendency to buy extra items at the dollar store, you may want to steer clear — either that, or go in knowing exactly what you need to buy and bring just enough cash for the item(s) in question.

It’s more than possible to save money by shopping at the dollar store. But you’ll need to be really careful with your approach to pull that off.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.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, Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.

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