Money Management

There are certain costs you may neglect to account for in your emergency fund. Read on for three that you need to include. [[{“value”:”

Recent data from the Federal Reserve found that only 68% of U.S. adults feel equipped to cover an unplanned $500 expense. And unfortunately, that means that almost one-third of adults clearly don’t have a solid emergency fund.

It’s important to have money in a savings account to cover unplanned expenses, like home and car repairs. And it’s also essential to have money in the bank in case you lose your job and the paycheck that goes with it.

In fact, for the latter reason, the general convention when building your emergency fund is to sock away enough money to cover three to six months of essential living expenses. That way, you’ll have money to tide yourself over while looking for work. And it could, depending on what you do, take a good three to six months to get hired after losing a job, especially if you happen to get laid off during a recession.

Now in the course of calculating your essential monthly bills, you may know to account for expenses like:

Rent or mortgage paymentsCar paymentsUtility billsFoodMedication and healthcare expenses

These are all things you can’t do without. But there are other expenses you may need to factor into your emergency fund. Here are three you don’t want to forget about.

1. Annual insurance premiums

If you pay for auto, homeowners, or life insurance, you might pay your premiums once a year. Insurance companies often let you spread your payments out and pay them monthly, but there can be a modest discount for paying once a year in full.

But if you’re not paying those premiums every single month, you might forget to account for them when running the numbers on your emergency fund. So think about the insurance premiums you pay once a year and make sure your emergency fund can cover them. If, for example, you don’t have enough money in savings in the event of a layoff to pay your life insurance premium, you risk having your coverage lapse.

2. Quarterly property taxes

Some people who own a home have their property taxes paid monthly. But usually, that involves an escrow account with your loan servicer where you pay extra each month and it takes care of your property tax bills for you. If you pay those taxes on your own, you might get billed quarterly. But because of that, like insurance where you’re not paying monthly, you may forget about those payments and not include them in your emergency fund.

Clearly, that could be a huge mistake. Not paying your property taxes could cost you penalties, and eventually, you could risk losing your home (though this generally will not happen for a period of time). So that’s another expense to factor in, for sure.

3. Funds for low-cost entertainment so you can retain your sanity in the event of a layoff

Your emergency fund needs to be able to cover your essential expenses. But let’s say you’ve lost your job and are desperately trying to find another. On those days when you don’t have an interview, what are you supposed to do — sit around the house and stare at the walls? That’s hardly good for your mental health.

That’s why your emergency fund should include some money for leisure spending. If you’re laid off, stuck at home, and bored, it’s not unreasonable to want access to some streaming content to take your mind off of things, or to occasionally spend $5 to meet a friend for coffee and get out of the house.

Building an emergency fund is one of the best things you can do for your finances. But don’t forget these three expenses when you run your calculations to nail down an emergency savings target.

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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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You can make back a Sam’s Club membership fee a little at a time — or in one fell swoop. Here’s how. [[{“value”:”

Some folks may look at Sam’s Club’s annual membership fee and think it’s a bit silly to pay to shop somewhere. And they’re not entirely wrong. I mean, who pays $50 just to walk in the door? (And $110 for a Plus membership?!)

But regular Sam’s Club shoppers know that investment can actually benefit their budgets. There are lots of ways to earn back your membership fee — and then some — in savings.

You don’t even need to be a regular shopper to get back your fee. There are ways you can make back that cost in just one trip. Here are a few examples.

1. Score a bundle of discounted gift cards

A simple way to get big savings fast is through Sam’s Club’s discounted gift cards. You can find gift cards for a ton of popular brands up to 25% off.

For example, you can pick up $50 in Smash Burger gift cards for just $37.50 — a 25% savings over the face value. You’re not limited to restaurants, though; there are gift cards for everywhere from Disney to the local car wash chain.

If you want physical gift cards, pop into your local Sam’s Club location and check out the gift card kiosk. Folks who don’t mind e-gift cards can shop samsclub.com; e-gift cards will be emailed to you after purchase.

2. Restock your pantry and paper goods

Are you down to your last four-pack of toilet paper? Are you running short of the basics in your pantry? When the cupboards are empty, you can head to Sam’s Club to stock up.

A single trip to Sam’s Club to grab your everyday essentials could potentially include enough savings to make up for that pesky membership fee. For instance, Member’s Mark bath tissue is half the price (per square foot) of Charmin, and it’s better-rated (4.9 stars vs. 4.6 stars, respectively).

And that’s just what Sam’s Club charges for Charmin. If you’re comparing costs to what you’d pay at the grocery store — or even Walmart — the savings are even more significant.

This is hardly limited to toilet paper, either. Member’s Mark includes a huge product line of well-priced staples, from paper goods to cooking oils to hearing aid batteries. Most are good quality while being significantly less expensive than their name-brand competitors.

Even if you just stock up on non-perishables once a year, you’ll probably make up at least your membership fee in savings. (Compared to most stores; if you’re currently a Costco member, prices are about the same on most items.)

3. Find one great money-saving deal

So, you’re not into gift cards and you don’t want to switch toilet paper brands. You can still get your money’s worth out of a Sam’s Club membership in a single trip. How? By finding one great deal on a big-ticket item.

Upgrading your home theater? Check Sam’s Club for a deal on TVs or soundbars. Does your vacuum suck — or not suck? I see deals on vacuums, both robotic and human-powered, all the time that offer $70 or more off popular name-brand vacuums.

Sam’s Club has everything from tablets and computers to furniture to kitchen appliances, from brands including Samsung, Apple, KitchenAid, and more.

Picking up one of these deals could easily cover the cost of membership — and more. That’s why I always suggest checking Sam’s Club and Costco before making any major purchase, even if you don’t have a membership already. You never know how much you could save by joining if you find a really great deal.

A quick return on your investment

I think of a Sam’s Club membership as a sort of investment. You pay for it upfront, sure, but you can often get back that cost through savings. And really savvy investors can get back much more than their initial investment.

Indeed, as we’ve discussed, it doesn’t even need to be a long-term investment. You could potentially get back that membership fee in a single trip — or even a single item.

That’s not to say everyone should sign up for a Sam’s Club membership. You may not shop with any of the gift card brands, your lifestyle may not mesh with bulk buying, and you may not need any big-ticket items. In that case, the investment probably won’t pay off.

Unlike real investments, though, if it doesn’t pan out, you’re not actually out any money. Sam’s Club will cancel and refund your membership at any time if you’re not happy with 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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

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Is the high cost of child care impacting your finances? There may be ways to save on this expense. Find out how some parents are trimming their child care costs. [[{“value”:”

Child care is an expense that continues to get more costly. Many families struggle to find affordable care for their kids and are forced to pay more for quality care. It can be difficult to afford this expense as everyday living costs continue to rise. If you’re a parent looking to save money or an adult considering having children in the future, you’re in the right place. Here are a few ways some parents save money on child care costs.

Multi-child discounts

Some child care providers offer discounts to families who enroll multiple children. Enrolling more than one child may save you money on child care costs. Even if a multi-kid discount isn’t advertised, asking if your care provider would extend a discount is worthwhile. Saving even a few dollars each month can make a difference and improve your family’s finances.

Altering work schedules

If you work a traditional work schedule, like daytime weekday hours, you’ll likely need more help with child care. The more care your child requires, the more expensive your child care bill will become. It may be worthwhile to talk with your employer to see if you can adjust your work schedule to work different hours or to work a hybrid schedule so you can be home more.

Some parents save money by altering their work schedules so that one parent works while the other is at home caring for the kids. If that isn’t possible, you may want to explore having one parent go part-time to reduce child care costs. The less professional care you need to pay for, the more money you can keep in your checking account.

Home daycare

Many parents enroll their children in daycare because it’s typically more affordable than hiring a nanny to come to their homes. But there may be more affordable alternate solutions to explore. If there are qualified home daycare providers in your area, verify whether they can accommodate your care needs. Individual caretakers offering care from their homes may offer more affordable fees. This care solution could provide significant savings.

Nonprofit care services

Some parents trim their child care costs by utilizing nonprofit care solutions in their community. If the rates you see for traditional child providers are out of budget, check for any low-cost nonprofit care options in your area.

Examples include local nonprofit organizations and national ones like the YMCA. Low-cost solutions are in high demand, so start researching these options well before you need care.

Nanny share

Another way some parents save on child care costs is by organizing a nanny share with other families in their communities. Instead of paying for a nanny to only care for your child, you can save money by joining forces with other parents of young kids and hiring a shared nanny. Splitting the total care costs could be beneficial for all families involved.

Any money saved adds up

Unfortunately, child care is becoming even more expensive in most parts of the country. But there may be ways to get great care without ignoring your budget. Consider some of the strategies highlighted above if you want to save money on this necessary expense. Check out our free personal finance resources for additional ways to save money.

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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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Tired of having to send your credit card company a hefty payment every month? Read on to see how you can shed your debt and free up money. [[{“value”:”

There are different reasons why people end up with credit card debt. In some cases, it can be a matter of overspending. In others, it can boil down to unplanned expenses that pop up at the wrong time or in short order.

But either way, if you owe money on your credit cards, those monthly payments may be monopolizing an uncomfortably large chunk of your income. In fact, early 2024 data from New York Life shows that on average, consumers with credit card debt are putting $363.07 per month toward paying it off.

If you’re doing something similar, you may be frustrated by having to part with that much money on a monthly basis. So if you’re tired of forking over $363 a month, or a sum in that vicinity, you may want to look at these options for making your debt less expensive.

1. A balance transfer

A balance transfer lets you take the balances on your credit cards and move them over to a single card — usually one with a 0% introductory APR. Not only can that make your debt easier to manage, but it could make it less expensive.

However, with a balance transfer, you only get a limited amount of time to avoid accruing interest. And once your card’s introductory period comes to an end, the interest rate on it could soar.

For this reason, proceed with caution if you’re interested in a balance transfer. Read the fine print (because there will generally be fees associated with making that move) and understand how long your introductory APR period lasts and what happens once it expires.

2. A personal loan

The nice thing about a personal loan is that you can lock in a fixed interest rate on your outstanding debt. And generally, the interest rate you pay on a personal loan is much lower than what the typical credit card charges.

Of course, with a personal loan, you won’t get a limited-time break from accruing interest like you might with a balance transfer. But you also don’t have to worry about the rate on your debt skyrocketing once that initial period comes to an end. If you sign a personal loan with a five-year repayment period at 7.5%, that’s the rate you’ll pay until your debt is gone (unless you refinance your loan, of course).

3. A home equity loan

If you own a home you have equity in, a home equity loan is another option for consolidating credit card debt into a fixed-rate loan and potentially lowering your monthly payments at the same time. You may even get a more favorable interest rate on a home equity loan than with a personal loan, since with the former, your loan itself is secured by a financial asset (your home).

However, you should know that if you fall behind on a home equity loan, you could eventually risk losing your home. And while falling behind on personal loan payments isn’t a great thing to do either, at least there, you’re not taking on that same risk.

If you’re spending way too much money on credit card debt payments each month, it may be time to seek out a better arrangement. Whether that’s a balance transfer, a personal loan, a home equity loan, or something else will depend on you and your financial situation. But it’s a good idea to explore different options, rather than resigning yourself to forking over hundreds of dollars a month to your credit card issuers with no clear end in sight.

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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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