Category: Personal Finance

At its best, insurance helps protect against events that could send your finances into a death spiral. Crucial products include insurance against serious car crashes, the loss of or damage to a home, and the loss of income due to death or disability.

Other products? Many offer little value, or they’re filled with exclusions and caveats. Following are some potentially dumb insurance buys:

1. Identity theft insurance

Federal law limits your liability from credit card fraud. So, even if a thief uses your credit card, you’re off the hook if you report the theft promptly. According to the Federal Trade Commission:

Under federal law, the amount you have to pay for unauthorized use of your credit card is limited to $50. If you report the loss to the credit card company before your credit card is used by a thief, you aren’t responsible for any unauthorized charges.

Most card companies go a step further and offer $0 fraud liability.

Report a debit card missing within two business days after you realize it’s gone, and you are liable for no more than $50 in stolen money. Wait longer to report, and you could be responsible for up to $500 — or might even face unlimited liability, the FTC says.

Repairing your credit and damage to your identity can be time-consuming and costly. But the National Association of Insurance Commissioners says identity theft insurance only offers so much protection:

Identity theft insurance cannot protect you from becoming a victim of identity theft and does not cover direct monetary losses incurred as result of identity theft. Rather, this coverage pays for expenses related to reclaiming your financial identity, such as lost wages, attorney fees and documentation reporting.

Alternative: Protect yourself before you’re hit. Monitor your bank and credit accounts regularly. Get three free annual credit reports. If you think your identity has been compromised, place a 90-day fraud alert on your credit file. Finally, weigh the pros and cons of freezing your credit.

2. Travel insurance

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Travel insurance can be confusing. There’s protection against canceled trips, interrupted trips, medical expenses and many other risks. Policies vary in quality and in coverage. Some cover many eventualities. Others insure against a single risk, like a medical evacuation.

Travel insurance can be a waste of money when if your policy is riddled with exclusions, or you choose a policy that doesn’t cover the risks you are likely to encounter.

However, Money Talks News founder Stacy Johnson notes that there are situations where travel insurance makes sense. To find out more, check out “Ask Stacy: Should I Buy Travel Insurance?”

Alternatives: You may already be covered for some of these situations through your homeowners, life, auto or health insurance. Credit cards also may offer some forms of travel insurance, such as for lost luggage, theft and life coverage.

3. Dental insurance

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If you have dental insurance through work, you’re golden. If you have to buy your own policy, however, don’t buy it thinking you’ll collect thousands of dollars’ worth of implants or other complex treatments. Your policy might just pay 50% for oral surgery and restorative care. It may not cover cosmetic dentistry at all.

Alternatives: A discount dental plan can get you discounts ranging from 10% to 60% on all of your dental visits and procedures. Other options for cheaper dental care include charitable clinics and dental schools.

4. Children’s life insurance

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Adults buy life insurance coverage for themselves to provide for their families in case they die. Arguments in favor of taking out life insurance on children include locking in insurance for them at a young age in case it becomes impossible or too expensive to insure them later because of illness or playing high-risk sports. Some advocate coverage for possible funeral expenses.

But unless the family depends on the child’s income, there’s no need to insure his or her life.

Alternatives: Save for the child’s education or open an investment account for him or her. If necessary, you could use those funds to pay for death expenses without giving a penny to insurers.

There is rarely any reason to pay full retail price for anything you buy in a store. With the rise of online shopping — which allows for instant price comparison — brick-and-mortar establishments must go the extra mile to earn your business.

To score bargains, you simply need the tools to pay less for what you want. Read on to fill your tool kit:

1. Learn to negotiate

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Most people are uncomfortable haggling. Instead, we’re used to opening our wallets and saying, “Here you go.”

But it is often worth trying to bargain. The savings can be substantial.

In “10 Tips for Negotiating a Better Price on Anything,” Money Talks News offers 10 tips for haggling, including:

• Do your homework to know what the price should be.
• Make sure you are asking the right person for the discount.
• Pay with cash instead of plastic.
• Don’t be afraid to walk away.

Just remember, the first price isn’t always the final price, and there is no harm in asking for a better deal.

2. Use online tools to get brick-and-mortar discounts

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Look for websites that offer coupons or coupon codes. Popular sites include Coupons.com, RetailMeNot and Coupon Craze. For deals on eating out and entertainment, check out Restaurant.com, Groupon or (in most parts of the country) LivingSocial.

Follow companies you like on Twitter and like them on Facebook. Many offer special discounts and advance notice on upcoming deals at their stores through social media. Another way to get coupons and discount codes is by signing up for company email lists.

You can also let an online price-tracker do your legwork. These tools allow you to enter products that you may want to purchase, and they alert you — by email or other means — when the price drops at any of the stores they track.

3. Use a discounted gift card you bought online

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Discounted gift cards come from people who have a card from a retailer and sell it for less than its face value in order to get cash. So, for example, you may be able to buy someone’s unwanted $50 Eddie Bauer gift card for $40.

If you go this route, beware of scams. Only buy from reputable websites. Raise is one of the more popular and well-respected sites for buying gift cards.

4. To save on groceries, shop on Sunday, Monday and Tuesday

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On Wednesdays, many grocers begin store sales that last for a week. On Sundays, big supermarkets often release coupon pamphlets.

So, a grocery shopper’s “sweet spot” is Sunday, Monday and Tuesday, when shoppers can take advantage of both kinds of discounts.

5. Buy in bulk when an item is on sale

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Whether it’s toothbrushes or nonperishable food items, consider buying in bulk. Keep a price list of groceries and sundries that your family buys on a regular basis to help you decide when something is a great deal.

Make sure that you have enough space to store your purchases and that the items are not perishable.

Have more ideas for saving at stores? Share with us in comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Have you ever gone grocery shopping on an empty stomach? If you’re like most people, you come home with all kinds of random junk food and disparate ingredients you have no specific plans to use, all because they looked good at the time.

So when you decide to throw some “lightly expired” shrimp, Lonely Gal Margarita Mix for One, and an entire shelf’s worth of tortilla chips into your cart when you only needed a gallon of milk, you are falling victim to a cognitive bias known as the projection bias.

This bias causes you to believe that however you are feeling in the moment is how you will still feel in the future. So when you are feeling rumbly in your tummy while cruising the grocery store, you believe you’ll still want to eat shrimp-covered nachos once you get home — even though your enthusiasm for shrimp that’s gone to the bad place will definitely wane once you’ve had a snack.

Of course, the projection bias does more than just fill your grocery carts with food you’ll never eat. It can also cause you to make even bigger financial mistakes. Here’s how your inability to project your future preferences can ruin your finances. (See also: 5 Mental Biases That Are Keeping You Poor)

Irrational shopping

Car dealerships have long found that they sell more convertibles in the spring and summer than in the winter. Some of that is perfectly natural. A car buyer is likely to want to purchase a car whose amenities they can take advantage of right away. But convertible sales also spike during sunny days or warm spells during the winter. In those cases, the irrational convertible owner is projecting that she will want to ride with the top down and the wind in her hair every day, just because that’s what she wants on the unseasonably warm and beautiful day when she buys her new car.

Similarly, when you are in the midst of a new enthusiasm for exercise, it might seem like a great idea to buy a treadmill or elliptical machine. You want to exercise every day right now, so of course you’ll want to continue exercising in the future. There is no possible way that your new BowFlex will collect dust and/or become an impromptu clothes-drying rack within a few weeks of purchase.

One of the best ways of thwarting this expensive projection bias mistake is forcing yourself to take a cooling-off period before making any major purchases. Test driving the convertible BMW may be a blast on that random 70-degree day in late February, but will actually purchasing the car still feel as reasonable a week later when the snow is falling? Forcing yourself to wait a week (or a month) before making any large purchases can help you keep projection bias at bay. (See also: 9 Simple Ways to Stop Impulse Buying)

Not saving enough

The closest I have ever come to slapping someone was when a teaching colleague once told me that she didn’t bother saving money for retirement because she wanted to enjoy her money while she was young. This colleague seemed to believe that she would always enjoy good health and stable employment, and that she could just continue to work forever.

This kind of thinking is a common symptom of projection bias. We all tend to assume that the way our lives are now are how they will continue to be in the future. So we don’t bother to save money for a rainy day or for retirement, because we project today’s stability into the future.

This is one of the reasons why pessimists tend to be better savers than optimists. Pessimists expect things to go wrong, and they plan accordingly. So it’s a good idea to embrace your financial pessimism and think through all the potential ways Murphy’s law could throw a wrench in your life. You’ll be less likely to assume that your current life will remain unchanged forever — and you’ll be more likely to save money to protect yourself. (See also: 4 Ways Pessimism Can Actually Improve Your Finances)

Locking up money in illiquid investments

Whether you’re investing in real estate or buying an annuity, the projection bias can potentially prompt you to make an expensive mistake. That’s because you might decide to put your nest egg into a real estate venture or annuity product when you’re doing well financially. If your job feels secure and you can’t imagine needing to tap into your nest egg, it can feel foolish not to invest in something that will grow over time or provide you with guaranteed retirement income.

But job loss can strike anyone at any time, and if all of your investment money is tied up in a rental property that you cannot sell or an annuity that you cannot get out of, then you’ll be stuck making some pretty difficult financial decisions until you are able to find another job.

While putting your money in illiquid investments can be a savvy financial move for the right investor, it’s important to think through what would happen if you were to lose your job or experience a financial downturn. When you consider making such investments, be sure you also have a Plan B for if life does not continue in the same way. (See also: How to Get Your Finances Back on Track After Losing Everything)

Buying a timeshare or retirement condo

One of the big problems with the projection bias is the fact that marketers and salespeople (not to mention con artists) are all perfectly aware of how this mental quirk works. So they make absolutely sure you have a great time with whatever they are selling to help you project future good times if you buy their product.

Two industries that often rely on this bias are timeshares and retirement condos. In many cases, both of these types of purchases require an upfront payment for future residence. While it’s possible that you will still want to visit Florida the first week of August every year in perpetuity, or that you will want to move into the 55+ condo community after you retire, you may also change your mind and feel stuck with an expensive choice that you may have trouble getting out of.

These types of purchases should also only be made after a great deal of thought, rather than right after a fun-filled weekend visit. (See also: Are Timeshares Ever Worth the Investment?)

The future will be different

The trick to keeping projection bias from destroying your finances is remembering that the future will not be exactly like the present. So it pays to be flexible in your plans for the future, and a little pessimistic about what you can expect.

Even if there are nothing but blue skies ahead and your tastes never change, you’ll still be glad you kept your finances flexible (and robust).

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Reselling an item online seems like one of the more mundane tasks in our digital world. So why does it still feel like fixing cataracts with a rusty safety pin?

Both Craigslist and eBay have been in existence in some form since 1995. Kids who were born at that time can not only drink legally by now, but possibly had their first drinks purchased by parents who made a living selling items on Craigslist and eBay. Now with options like Facebook Marketplace, LetGo, and other online second-hand stores, there are more places than ever to host an online garage sale.

The trick is getting people to follow through and actually buy something.

Since moving into our house five years ago, my wife and I have had tremendous success selling items online. The previous owners left our property filled with items they considered gifts but, more likely, didn’t make the cut when they downsized from a 2,400-square-foot house with a barn and various sheds to a two-bedroom apartment.

We sold a bedframe, box spring, and mattress (we were surprised, too) for $200 to a mother and daughter on their way through town. We sold a large Weber charcoal grill ($250) to a gentleman who somehow crammed it into a Mercedes-Benz convertible. In our greatest coup, we sold a wrought iron spiral staircase — the only indoor stairs to our basement — for full price to a gentleman from Seattle who wanted them for his man cave. The sale price of those stairs paid for us to build an actual basement staircase, which is much more functional for carrying laundry than stairs you’d ascend halfway to pose for a wedding photo.

Selling powered garden tools is another challenge entirely. When we bought the house, it came with a Sears Craftsman LT2000 lawn tractor of unknown age that turned out to be the exact wrong piece of machinery for mowing roughly 1.5 acres of pasture. The 42-inch deck was small, the two blades fared poorly in tall or slightly damp grass, and the mower belt popped loose and was chewed to oblivion any time the terrain got too bumpy… which tends to happen on mole-mounded, uneven pasture.

Selling that lawn tractor turned into a 12-month odyssey that taught me a handful of lessons about reselling this specific niche of home items. Here is that journey in four steps:

April 2017: Craftsman LT2000 riding mower $800 (or best offer)

• Lesson learned: Know your market

I posted the tractor just after buying a commercial-grade, zero-turn-radius mower built to mow the sides of turnpikes. That mower was the tool for the job, but came with a price tag that I wanted to whittle down by selling the old tractor.

There would be no whittling.

The tractor sat on Cragislist for weeks as other, newer tractors sold for roughly the same price. Those tractors hadn’t had three mower belts replaced within the last year. Those tractors had tires without slow leaks that even tire centers couldn’t identify. Those tractors were built in the 21st century, where it was clear that my Craftsman was old even by driving mower standards. There’s a strong chance that it was 15 or even 20 years old when it hit the market.

When the competition is more reliable and has less wear for the same price, it presents better value for the dollar. I priced my tractor poorly.

October 2017: Craftsman LT2000 riding mower $800

• Lesson learned: Know your calendar

Know who’s thinking about lawn maintenance in October? Nobody.

My tractor was one of just five listed on Craigslist in my area at the time, but it received maybe three bites. Craigslist customers can be a bit flaky on their best days, but an overpriced lawn tractor being sold in October isn’t going to make them less so. I decided to hold onto it until spring and try again with a new strategy.

March 2018: Craftsman LT2000 riding mower $500 OBO

• Lesson learned: Know what you’re selling

At $500, my tractor was on par with other similarly aged equipment in a flooded market. However, I posted it on both Craigslist and Facebook Marketplace and received a whole bunch of inquiries that I began scheduling as test drives.

When the first testing day came around, however, it wouldn’t start. I lost that sale and figured that a dead battery was the biggest problem. I noted this in the description and got another inquiry. This person offered to jump start it and said he’d buy it if it would start. Seemingly out of spite, it didn’t.

I changed the battery spark plugs, changed the fuel filter, and fixed a cracked vacuum hose and tried to start it up again. Nope. People will pay $500 for a used mower, but only if it runs.

April 2018: Craftsman LT2000 riding mower $150

• Lesson learned: Know your limits

By this time, I was receiving suggestions from Craigslist and Facebook posters alike. Some suggested the tractor’s solenoid was no good, others said the fuel pump, while even others suggested it might be a carburetor issue.

I hadn’t used the mower in a year at this point and didn’t want to drop another dime into it. It still had a tag on it from the last time it had been serviced, but I knew I wasn’t going to recoup all of the service hours I’d put into it or the transportation charges from when it had broken down. (P.S. — If you own a tractor of any kind, it also helps to own a utility trailer.) I just wanted it to get to a good home, and not at my expense.

When I posted the tractor to Craigslist and Facebook for the final time at that reduced price, suddenly it was the most popular 20-year-old mower in Oregon. I received dozens of queries within 24 hours, but the best came from a gentleman two towns over. He not only came in at full price, but wanted to convert it into a yard buggy for his wife, who’d developed fibromyalgia and was having a hard time getting around their 18-acre property.

I told him that it was a terrible pasture mower, but would make an excellent buggy or cart. He came to my house in a contractor’s truck with a hydraulic bed, pulled my tractor onto it with a winch (the tractor fought it all the way, locking its rear wheels in defiance), and paid me in cash. He thanked me and handed me a religious leaflet, I wished him well and warned him against driving through the blackberry bramble.

I accept that I’m no expert in these matters but, like many of us, I’m learning as I go. In the spot where that lawn tractor once stood, there’s now a brush cutter, a trimmer and a leaf blower left by the previous owners, all in various states of repair. All have been rendered redundant by a combination tool left to us by my father-in-law’s neighbor, who simply gave it and a number of other tools to him after she and her husband split.

I’ll be selling all of those redundant tools online as well, but I’ll research the market, comparable listings, and the working condition of these items in advance this time around. I probably won’t get rich doing it, but I won’t waste time or money this way, either.

More by Jason Notte:

When was the last time you got a big raise? We’re not talking about the 3 percent raise you should get every year to keep your salary in line with inflation — we’re talking about a noticeable pay bump to reward you for all your hard work. Has it been a while?

You may feel like you’re long overdue for that financial reward, but asking for a raise without first recognizing if the timing is right can set yourself up for a disappointing answer. So before you ask for a raise, ask yourself the following questions first.

1. Is my current salary where it should be for my position?

Salaries for identical roles vary from company-to-company, state-to-state, and country-to-country. You may not have had a significant raise in many years, but that doesn’t mean you should automatically get one. Take a look at a website like Salary.com and search for your current role, your location, and your years of experience. Don’t forget to add in any benefits and bonuses you may get. Now, where do you fall on the chart?

If you’re right at the top of the bell curve, congratulations; you’re getting what the majority of people in your position are getting. If you’re to the right of that peak, you’re actually earning more than average. It’s only if you fall significantly left of center that you should feel a large raise is appropriate. (See also: 5 Times You Should Demand a Raise)

2. When did I last get a raise?

Again, this is going to vary depending on your profession and the current state of your industry. But usually raises are given out annually, so if you had one 10 months ago, you shouldn’t expect to get a warm reception when you ask for more money. If it has been many years since you had any kind of raise beyond the meager 2 to 3 percent, and you have an excellent work history, you are definitely right to approach your supervisor and talk about money.

3. When did I start this job?

That could be read one of two ways; either your start date with the company, or the date of your last promotion. Either way, you should really tread carefully if you start asking for more money without a year of experience in that role under your belt.

Now, you could find that certain promises were not kept with regards to commissions, bonuses, benefits, or other ways you were told you’d be compensated. If that’s the case, make the reasoning watertight. You took the job based on income you’re not receiving, so you would like a bump in pay to make it right.

4. Do I really deserve the hike in salary?

Of course you do, right? Well, maybe not. A fat raise usually accompanies a promotion, more responsibility, or the kind of performance that makes you indispensable. Look at what you’ve done since the last time you got a raise. Have you been good at everything, or have you been outstanding? Did your performance meet the expectations set by your manager, or did it exceed them? Did you hit deadlines and budgets on the head, or did you come in under budget and ahead of schedule?

Sadly, “good” is just not good enough for most companies these days. They expect a dazzling performance month after month before a raise is on the table. (See also: 9 Ways an Annual Self Review Can Boost Your Career)

5. Do I really want more money, or more job satisfaction?

Money makes the world go ’round, but sometimes we find ourselves wanting more money because the job isn’t giving us any other reason to show up. The role may have become stale, or the tasks uninspiring. We’re not fulfilling our potential, and to compensate, we want more money in exchange for the torment we endure.

If your motivation for a raise is that the job just plain sucks, do you really want more money to stay in a role that you don’t like? Is there a better solution? How about a move to a different department, or asking for more challenging opportunities that will help you grow your career? Money isn’t always the answer. (See also: 5 Reasons a Big Paycheck Is Not Worth Staying in a Job You Hate)

6. How’s my company doing?

Unless you’ve been hiding your head in the sand, you should have a good idea of how the company has been doing for the last six months to a year. Is it in a good place, a great place, or have there been troubles?

For a start, any kind of financial issues are going to make your request for money come off as tone deaf. Layoffs, cutbacks, and salary cuts spell trouble for sure, and asking for a raise when everyone is struggling is not going to go over well. Even if you believe you’re being underpaid or really deserve the extra money (for example, if someone was laid off and you’re doing twice the work), you must be careful how you broach the subject. Before going to the boss, put feelers out with human resources or someone in finance. (See also: The Absolute Worst Ways to Ask for a Raise)

7. Can I justify a pay raise?

“Because I deserve one” is not a good answer to the question, “Why should we give you a raise right now?” In fact, you shouldn’t even let your boss get to that question. Instead, make a case for your raise right out of the gate. Start the conversation with something like, “I’ve been doing a lot of thinking, and I believe I deserve a pay raise for these reasons.” Then, clearly and confidently explain those reasons. Don’t be pushy, arrogant, or entitled.

Use specifics in your argument. “I’ve been doing a great job” is way too broad. Instead, list performance figures, additional hours worked, weekend work, increased sales, increased customer satisfaction, or whatever else counts as a big plus in your role. If you’re having trouble thinking of any specifics right now, it’s probably not the time to ask for a raise. (See also: How to Negotiate a Raise Out of the Blue)

8. How much do I ask for, and how much will I be happy with?

The two numbers are not the same. In fact, the second will probably dictate the first, because in the negotiation game, it’s always better if you set the “anchor” point rather than the boss.

Let’s say you want no less than a $5,000 raise. You shouldn’t ask for $5,000, because it’s way too easy for the boss to talk you down from that price point (they sure won’t be going up from it unless they’re worried you’re about to quit).

When you’re asked how much of a raise you’d like, go higher than your bare minimum. Maybe you ask for $10,000. If he or she says yes, great! If not, you can start negotiating back down. When it gets down to $5,000, you can accept and be happy. The boss will also be happy that the figure is lower than what you said you wanted. (See also: This Simple Negotiating Trick Puts Money in Your Pocket)

9. Will I accept other benefits instead of money?

Again, is money what you really want, or would you consider other offers that aren’t directly tied to salary? For example, what if you’re given an additional five vacation days per year? That has real value, especially nowadays when we all seem to be working harder than ever. If not that, would you take an offer that lets you work from home one day per week? Or how about getting additional benefits you may not be getting now, like a higher match for your 401(k), or paid conferences out-of-state (or even out of the country)? Consider everything that you could be offered instead of money, and have them in your back pocket if your request is flat-out refused. (See also: Didn’t Get the Raise? Ask for This, Instead)

10. What’s my plan if I’m turned down?

Be prepared for the boss to say no. You shouldn’t expect to get a raise, or the amount you believe you deserve, even if you think it’s overdue. If you walk into the room thinking it’s in the bag, and don’t have a plan for rejection, things could go badly. You don’t want to get upset, angry, or walk out and slam the door.

Instead, thank your superior for his or her time, and ask when a good time would be to revisit the issue. This leaves the possibility of a raise still in the air, and allows you to try again at the appropriate period. Then, go back to doing what you do without holding a grudge or lowering your performance. Work hard, work smart, and that raise will hopefully come soon enough.

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When my wife and I moved to Brooklyn, we felt lucky that we wouldn’t need to buy a car. Our apartment was close enough to a subway line and our neighborhood was walkable enough that it didn’t make sense to own a vehicle. That being the case, we had a tough decision to make about our grocery shopping habits. Specifically, what were we going to do about our beloved Costco membership? The nearest store was two miles away. We weren’t sure whether we would get enough value out of our yearly membership given the distance and our lack of a vehicle.

We decided we’d keep the membership and walk to Costco. Call it foolishness driven by an unshakeable addiction to Kirkland brand chocolate-covered almonds, but we were determined to do our bulk shopping without owning a vehicle. Turns out it wasn’t that hard, and it could actually be fun with the right attitude.

There were both physical and mental hurdles to overcome before our first trip. It would be taxing to lug several hundred dollars and at least a hundred pounds’ worth of groceries from Costco to our place. We also worried it might look weird to walk the streets weighed down with so many bags. But in the end, I realized I’m the kind of person who’s willing to try all-potato diets and take freezing cold showers, and my wife is supportive of it all. Weird and difficult wasn’t going to stop us.

The first step of preparation was to get our gear ready. This consisted of grabbing a couple of backpacks and stuffing them with every cloth grocery bag in the apartment. That was it. We could have greatly increased our carrying capacity if we used a rolling bag of the type that’s popular at farmers markets, but we never got around to buying one.

My wife and I are fast walkers who quickly took to the local New York City custom of jaywalking, so the two-mile walk to the store took generally took about 30 minutes. We would then load up our cart like it was any other Costco trip, but with a couple of caveats.

One issue was that we had to be a bit more careful about how much we bought. There’s only so much weight two humans can lug. I’ve done all-out Costco trips where you get a workout just pushing your bulging cart through the parking lot to your car and unloading it. It wouldn’t be feasible to carry that much stuff back on a walk. On average, we spent $200 to $300 on food, which resulted in a challenging but manageable load to haul back.

We also chose to exclude any item that was too bulky, even if it was light and cheap, such as jumbo packs of paper towels. Things like trash cans and furniture were also not feasible to carry back.

Another consideration was the temperature. Our walk back took us considerably longer than 30 minutes, so if it was hot out we limited how many frozen goods we bought.

Barring those minor inconveniences, our trips were a success, and we executed them in all weather. I snapped this picture of my wife doing her best pack mule impression walking back through Brooklyn on a bitterly cold March afternoon:

That’s four tote bags and a backpack, people! I’ve never been more in love. If I could have sent this to friends and family in lieu of engagement photos, I totally would have. But I digress.

We sometimes wore headphones and listened to the same podcast, which was a fun way to pass the time. There are tons of ways you can make the walk a team building adventure rather than a dreary slog. For example, we once took a different route to explore the city and ended up seeing a famous old cemetery that we never would have visited otherwise.

If you look at it purely from the perspective of how much you value your time, it’s hard to make the case for walking. But how do you account for the exercise, the fresh air, the good conversation, and the sense of accomplishment after overcoming a difficult task?

The exercise aspect was particularly salient. I am all about avoiding gym memberships and incorporating exercise into my everyday routine. Plus, one of the main things I do when I have access to a gym is an exercise where I pick up a heavy set of weights, hold them at my sides, and walk back and forth. It’s a great workout. Does that sound eerily familiar to another activity?

Incorporating physical activity into your everyday life that isn’t structured exercise is a good idea, regardless of whether you’re walking to Costco. It makes it easier to meet the healthy activity level guidelines set by the U.S. Office of Disease Prevention and Health Promotion. As obesity researcher Dr. Stephan Guyenet puts it, “Our distant ancestors had a word for exercise: life.”

Also, yes, I could sit in the comfort of my home and order most of the same things from Amazon or a similar store. That would save time. But what did I want that extra time for if not to spend it with my wife doing a challenging activity that gave us a story to tell and brought us joy? If you’re physically able and you enjoy walking, you can consider cutting out the middleman by getting creative with how you do your grocery shopping.

Biking, Rideshare Services, and the Subway

There are other ways to enjoy shopping at Costco when you don’t own a car but also don’t want to walk both ways.

While living in Brooklyn, we easily could have taken a short subway ride to and from Costco. It would have been a hassle getting through the turnstile with all our bulk bounty, but it’s doable. I saw people carrying large amounts of groceries onto the train all the time.

We currently live in Chicago, where our apartment is even farther from a Costco and there are no good train lines leading to the store. Walking nine miles round-trip is too much for even me to stomach, so we made a new plan: We now walk or bike down to the Costco, and pay for an Uber to bring us back.

We take advantage of a bike-share system offered by the city called Divvy Bike, so we can leave our bikes without worrying about the return trip. If you’re an intrepid bike adventurer who owns a bike with a cargo attachment like Mr. Money Mustache, you can absolutely do the whole Costco trip by bike.

An obvious advantage of using a rideshare service like Uber or Lyft on the way home is that you can buy a lot more stuff. If you’re taking advantage of one of Costco’s big-screen TV deals, for example, hailing an Uber makes a lot of sense.

Each Uber trip back from Costco costs about $12, so we have to make sure that we’re capitalizing on deals that are unique to Costco to make sure it’s worth the extra expense. Thankfully, with some pre-planning, this isn’t hard to do.

Finally, be sure to keep an eye out for deals on rideshare services. For instance, my Platinum Card® from American Express gives me $15 in free Uber credits every month (among other benefits). I rarely go to Costco more than once per month, so I now use my card to get a free ride back from the store every month.

Summing Up

There are many ways to enjoy the benefits of Costco without owning a car — if you’re willing to take a little more time and use a bit more energy. Walking, biking, or using a rideshare service can help you stay in better shape and save money on car ownership. It helps to have an awesome and supportive partner to go with you on the journey, but anyone with the right attitude should be able to have some fun with the process.

More by Drew Housman: 

Predicting an economic downturn can seem as mystical and convoluted as reading tea leaves. However, the economic tea-leaf readers — financial experts — are warning that the economic winds are changing.

Even though unemployment is still low, there are other economic indicators causing financial analysts to predict lean financial seasons. First, economic growth has all but stalled. The rate of wage increase has stagnated. The Constant Maturity Treasury (CMT) rates, which are used to measure and predict future interest rates, economic growth, and output, are near flatlining — and threatening inversion. This means that as the economy continues to slow down, consumer interest rates will rise and investment earnings will lose momentum, possibly even losing money.

Preparing for a recession is similar to preparing for a tropical storm: There’s no way to predict just how bad things will get, but burying your head in the sand and hoping for the best is a horrible idea. Here are a few things you can do to stormproof your finances against the coming economic slow down.

Beef up your emergency fund

The first thing you do when prepping for a storm is prepare your home for the onslaught. People in coastal areas board up windows and surround their homes with sandbags. An emergency fund does the same thing financially. It’s the added installation and protection that can assist you when the economy dips. It can’t stop the winds, or prevent the rain, and it may not stave off all damage, but it does provide an added layer of protection. And it provides you a fighting chance to preserve what you’ve worked so hard to build.

The traditional emergency fund is anywhere from three to six months’ worth of daily living expenses — and even larger for people with high expenses, large salaries, or a job that would be difficult to replace. During lean economic times, you want to save more than the standard recommended amount.

Under normal circumstances, the average bout of unemployment lasts roughly three to six months. However, experts believe that number is slowly creeping up and could double in a sluggish economy. It has been suggested that you plan to be unemployed at least one month per every $10,000 you earn. So if you earn $70,000 a year, you should plan for an unemployment that lasts at least seven months. This formula is a great gauge in helping you determine how much you need in your emergency fund. (See also: 7 Easy Ways to Build an Emergency Fund From $0)

Adjust your budget and pay down debt

Another thing people do during an impending natural disaster is purchase supplies and nonperishable food items. This ensures that they will have something to eat during a major power outage and food shortage. Adjusting your budget by reducing expenses in preparation for a financial disaster follows the same principal. Even though during a disaster you can’t eat steak and lobster, you do still eat. The same is true when money is tight.

Your vacation and home improvement plans may have to wait. You may have to forgo expensive advanced educational programs and even take your kids out of private school. The key is to prioritize your expenses, see what extras you can cut, and be prepared to lower the ax when the time comes. It’s also imperative that you stop living on overtime, bonuses, and side-gig money. You should divert that money into your emergency fund or other liquid savings. (See also: 5 Budget Overhaul Tricks for the Recently Unemployed)

You should also focus on aggressively paying down debt. If you can get rid of some of your smaller debts quickly, do it. The less people you owe, the better. And paying off debt acts as a type of de facto savings account, too. Sure, the money isn’t in an account and available for you to access — but if you eliminate debt, you owe less and have more money at your disposal. You’ll also save on the amount of interest you’ll pay over time. Paying down debt is always a fantastic idea; however, it can be your saving grace during a recession. (See also: 5-Day Debt Reduction Plan: Pay It Off)

Strengthen career skills

One nonfinancial thing you want to do when you feel the economic winds of change blowing is evaluate your career skill set. You have a primary job that you do. But you also have a bunch of little ancillary functions you perform. These things translate into job opportunities, or — at the very least — bullets on your resume.

Take time now while you are calm and things are going well to refresh your resume and sharpen or add to your skill set (just ensure you do it without adding debt). Most companies offer training of some sort, and many will also pay all or a portion of training you receive elsewhere. Some companies even have tuition assistance or reimbursement programs. Take advantage of those opportunities now, but be sure you read the fine print and understand the guidelines before you sign on the dotted line. (See also: These 17 Companies Will Help You Repay Your Student Loan)

Re-evaluate your investment portfolio

The stock market usually tanks — or at the very least, becomes extremely volatile — during an economic downturn. Financial experts always advise you not to pull your money out of an investment in a moment of panic. Fear should never drive your decisions.

Go ahead and look at your investment portfolio now and see if there are any changes you’d like to make. Risky funds will probably lose money during a slowdown, but they also rebound quickly during economic recovery. And safer investments may not lose much, but you won’t make much, either. They cancel each other out.

One system or investment style isn’t preferable over another. They all have pros and cons and respond to the highs and lows differently. The key is to assess yourself. Will one heavy loss give you a heart attack? If so, go with something less risky. But if you’re confident you can ride the wave and stand the turbulence of a risky investment, stay put. Be sure you consult a financial fiduciary and get solid financial advice before you decide. Knee-jerk reactions are the quickest way to lose big when it comes to investing. (See also: 8 Ways to Prepare for a Stock Market Dive)

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Editor’s Note: Congratulations to Suzanne, Avigale, and John for winning this week’s contest!

You hadn’t planned for it, but suddenly, out of nowhere, you are engulfed by the urge…the urge to go to a Halloween event! You don’t have a costume, but that’s okay — there are plenty of creative, frugal costumes that anyone can whip up in a jiffy.

What is your favorite last-minute costume idea? What supplies would you need to put it together? Will you be dressing up for Halloween this year?

Tell us about your favorite last-minute costume idea and we’ll enter you in a drawing to win a $20 Amazon Gift Card!

Win 1 of 3 $20 Amazon Gift Cards

We’re doing three giveaways — here’s how you can win:

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I recently noticed that most days, I never take my wallet out of my pocket at work. I always bring my lunch, and since I don’t need to pay for anything else during the day, my wallet is basically dead weight. I decided to stop carrying it around altogether.

This walletless arrangement was convenient while I was at work, but I needed to remember it when I stopped to buy groceries or gas on the way home. After ending up in the checkout line without a way to pay a few times, I decided to set up mobile payment on my smartphone to avoid needing to run out to my car every time I forgot my wallet.

After my success leaving my wallet behind, I’ve come to realize that if you have a smartphone loaded with the right apps, you no longer need to carry around most of the things that are in your wallet. (See also: 5 Things to Never Keep in Your Wallet)

1. Credit cards

Mobile wallets allow you to use your smartphone instead of a credit card or cash to pay at a growing number of stores and restaurants. These apps are linked to one or more of your credit card accounts and transmit a payment code via near-field communication (NFC) technology to the retail terminal. Security measures are similar to using a chip card that produces a unique payment code for each transaction.

Here are some mobile wallet apps to check out:

2. Checks

Writing a check is one way to transfer money to someone else, but there are apps out there today that allow you to send money from your bank account to anyone simply by using their email address or username. Using a money transfer app means you don’t need to carry checks in your wallet anymore.

Here are some mobile payment apps to check out:

3. Coupons

My coupon collection outgrew my wallet and overflowed into a small accordion file that I keep in my car. Is there any way to replace all of these paper coupons with something more convenient? The answer is yes; there’s an app for that.

Here are some mobile couponing and cash back apps to check out:

4. Store loyalty cards

I used to carry several store loyalty cards in my wallet. These cards have a barcode on the back that the cashier scans so you can get perks and discounts when you shop at your favorite stores. But since you can ask the cashier to look up your store loyalty account using your phone number, you really don’t need to carry the card around in your wallet. If you want a way to use loyalty cards without looking it up with your phone number, there are smartphone apps that can carry digital copies of your store loyalty cards.

Here are a few store loyalty apps to check out:

5. Contact info and account numbers

Another thing that keeps my wallet fat is business cards and small pieces of paper with important information written down — addresses, phone numbers, travel rewards program account numbers, and my consignment store account numbers. There’s no longer a reason to carry stuff like this around and risk losing it or having it stolen. There are apps that let you store digital notes and keep contact information organized and available all the time.

Here are some digital note apps to check out:

6. Insurance cards

Every six months, I get new insurance cards for my car insurance policy and put one in my wallet. I also carry cards for my health, dental, and vision insurance policies. If you’re putting your wallet on a diet, you can get digital insurance cards from many insurance providers to keep on your smartphone. If you want to take matters into your own hands, you can simply take a photo of your insurance cards and show the photo when someone needs your insurance information.

7. Photos

Wallet-sized photos were made for carrying around in your, well, wallet. But it has been decades since I’ve shown anyone photos in my wallet — I use my phone instead. I can store thousands of photos on my phone versus only a few in my wallet. Not to mention I can take pictures with my phone, too.

Apps to check out:

8. Receipts

It can be handy to keep receipts in your wallet in case you need to return something, but this can quickly make your wallet unwieldy. Use a smartphone app instead to digitize and organize your receipts and slim down your wallet.

Here are some receipt organizer apps to check out:

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