Money Management

Interest rate cuts might happen later this year. Here’s what to do once that occurs. [[{“value”:”

When inflation started surging, the Federal Reserve had no choice but to raise interest rates in an effort to get it to cool. But now that inflation isn’t nearly as rampant, the Fed is poised to start cutting interest rates later in 2024.

At this point, we can’t say exactly when those rate cuts will happen. But once they do come to be, here are three financial moves you may want to make.

1. Consolidate credit card debt into a personal loan

If you’re juggling multiple credit card balances, you may be doing more than just stressing yourself out to keep tabs on those payments. You may also be accruing loads of interest.

Once the Fed cuts interest rates, you may find that borrowing becomes less expensive across the board. At that point, it could be a good time to consolidate costly credit card balances into a personal loan.

That way, you’ll only have a single monthly payment to worry about. And just as importantly, you’ll have a fixed monthly payment that could be much easier to fit into your budget than credit card bills with variable interest rates attached to them.

2. Sign an essential loan you’ve been putting off

Maybe your air conditioning system at home gave out last summer, and you really need a new one in place ahead of the upcoming warm weather season. If you’ve been waiting to tackle a major home repair because you didn’t want to finance it at a time when interest rates were up, aim to do so once the Fed lowers rates.

Similarly, maybe driving your car is becoming an increasingly precarious prospect by the day. If so, you may want to buy a new one — and finance it via an auto loan — once the Fed lowers interest rates and it’s not quite as expensive to finance a vehicle purchase.

3. Pay attention to when your current CDs are set to mature

A lot of people locked in CDs in 2023, when rates were up. Once the Fed lowers interest rates, CD rates might start to fall. And if they fall to a large enough degree, you may decide that it makes more sense to keep your money in a regular savings account rather than renew your CDs when they come due.

As such, once the Fed cuts rates, mark your calendar so you’re aware of when your various CDs are set to mature. Often, if you don’t actively tell your bank not to renew your CD at maturity, it’ll roll over into a new CD with the same term automatically. You’ll want the opportunity to assess your options if interest rates are lower than where they are today.

We don’t know exactly when the Fed’s first interest rate cut will happen. But it’s important to be prepared for when rate cuts occur. In addition to the moves above, think about your financial needs and goals, and figure out how lower interest rates might play into some of your other money-related decisions.

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Want to cover the ownership costs of your boat? GetMyBoat is a great side hustle for boat owners, like “Airbnb for boats.” Read on to see how it works. [[{“value”:”

Do you own a boat? There’s an old saying that the two happiest days of a boat owner’s life are: the day you buy the boat, and the day you sell the boat. That’s because boats — although boating can be a fun and family-friendly outdoor hobby — tend to come with a lot of costs.

Along with the costs of financing a boat, boat owners often need to pay for storage, fuel, maintenance, and insurance. What if you could get help to cover the extra costs of boat ownership? Now you can!

Turn your boat into a side hustle with GetMyBoat, and have many happier boat-owning days. This website can be a great way for boat owners (all sizes and types of boats) to connect with people who would love to rent your watercraft, or go on guided cruises, fishing trips, and excursions. GetMyBoat is like “Airbnb for boats.”

Let’s look at a few examples of how GetMyBoat can help you make extra money with a lucrative side hustle — and help everyone have more fun out on the water.

How GetMyBoat helps boat owners earn extra cash

GetMyBoat is an online platform that helps people find affordable boat rentals, and that helps boat owners build boat rental businesses. If you own a speedboat, fishing boat, pontoon, ski boat, sailboat, or many other kinds of watercraft (including kayaks, jet skis, stand-up paddleboards, and more), you can use GetMyBoat to rent your boat to other people.

You don’t always have to set up your GetMyBoat listing as a straight-up rental that leaves your beloved boat in other people’s hands. If you’d rather stay with the boat and lead customers on a guided boat outing, you can advertise as a “Captain Provided in Price” and give boat rides to your customers.

GetMyBoat success stories

You don’t have to own a yacht or a whole fleet of speedboats to make money on GetMyBoat. This platform can be helpful for boat owners in a variety of life situations.

From retiree to boat captain

Captain Jim is a boat captain and retired geophysicist based in New Orleans who takes guests on cruises on Lake Pontchartrain on his 52-foot sailboat. Jim was looking for extra activities to stay busy in retirement, and wanted to share his love of sailing with visitors and locals in New Orleans.

Jim earned his U.S. Coast Guard Captain’s license and began hosting sailing charters on his boat, using GetMyBoat to book customers. Now he gets to meet people and do more of his favorite hobby, while running a small business he is passionate about.

Miami model earns up to $100,000 a month…by renting boats

Another GetMyBoat success story that was featured in Business Insider was the story of Patxi Francisco Areitio, a fashion model and boat owner. Patxi started renting boats to customers in Miami, and in his best month during peak tourist season, earned $100,000 in revenue.

Of course, don’t assume that renting boats is an immediate overnight get-rich-quick plan. That $100,000 happened during an exceptionally busy month, and that number is not “profit” — he still had to cover all the various costs of boat ownership. But this is a great example of how boat owners in high-demand locations can potentially make serious money by connecting their boats with people who want to rent them.

Kayak rentals to earn extra income

Want to see if GetMyBoat can be a good side hustle for smaller boat owners? Callie Ritsema is a GetMyBoat user who lives in East Grand Rapids, Michigan. She and her husband own two single kayaks, which they rent out on GetMyBoat for $10 an hour or $25 per day.

According to local TV news coverage, Callie typically gets three to six kayak bookings per week during the spring and summer. The extra cash from this side hustle quickly added up to be enough to cover the costs of buying the kayaks, and Callie and her husband are now planning their next fun, affordable luxury purchase: a golf cart.

Be prepared for GetMyBoat insurance and service fees

GetMyBoat charges a service fee to boat owners (8.5% for U.S. transactions, as of March 4, 2024), so be sure to price your boat’s hourly rental price at a level where you can comfortably cover your costs and make a profit. But one advantage of GetMyBoat for boat owners is that the platform pays you pretty fast: GetMyBoat processes payouts within 48 hours from the end of each rental excursion.

Keep in mind that as a boat owner, you are required to have insurance for your boat and comply with any laws and regulations. GetMyBoat does not offer boat insurance directly, but boat owners can buy insurance through the platform’s recommended partner insurance company — this policy will cover your personal boat use, as well as your rentals. Just like Uber drivers and food delivery side hustlers might need rideshare car insurance, you’ll want to make sure your boat insurance protects you against any costs or liabilities from renting your boat.

Bottom line

If you own a boat, and would love to help other people enjoy time on the water at an affordable hourly rental rate, you can turn your boat into a side hustle with GetMyBoat. Turn your dry-docked boat from a painful monthly cost into a happy source of profit in your bank account.

Learn more at GetMyBoat.com, or check out the GetMyBoat mobile app on the App Store or Google Play.

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Learn about five tax breaks that can help parents with the high costs of raising a child, such as the Child Tax Credit and Earned Income Tax Credit. [[{“value”:”

The average cost of raising a child is $233,610, according to the Institute for Family Studies — and that doesn’t even include college tuition. While that number may seem mind-boggling, there are a few tax credits that can provide relief for parents.

A tax credit provides a dollar-for-dollar reduction in how much you owe. If the tax credit is refundable, it can help you get money back when you file your return. If you’re a parent, you can’t afford to ignore these five tax credits.

1. Child Tax Credit

The Child Tax Credit is worth up to $2,000 for each child who was younger than 17 at the end of 2023. There’s a refundable portion of the credit called the Additional Child Tax Credit that’s worth up to $1,600.

To qualify for the credit, your income can’t exceed $200,000 if you’re a single filer or $400,000 if you’re a married couple filing jointly. The child also generally needs to live with you for at least half the year and must be your tax dependent.

2. Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is aimed at families who have low to middle incomes and earn money from working, which is known as earned income in IRS speak.

The credit varies based on family size. The maximum credit is $600 if you don’t have any qualifying children, while it can be as high as $7,430 for families with three or more qualifying children in 2023.

The more family members you have, the higher the income limits. If you’re a single filer with no tax dependents, you can only receive the credit if your income was $17,640 or less in 2023. However, a married couple filing jointly with three dependents could earn up to $63,398 and still qualify.

The EITC is a refundable tax credit, which means it can help you score a tax refund. For that reason, it’s often worth filing a tax return even if you’re not required to, as you could get money back.

3. Child and Dependent Care Credit

Child care costs are soaring, but the Child and Dependent Care Credit provides some measure of relief. If you’re the parent of a child and paid for child care so you could earn money or look for work in 2023, you could qualify for the credit.

To qualify, your child must have been 12 or younger when you paid for the care. However, the credit is also available if you paid for the care of an older child or another qualifying dependent, provided that they were unable to care for themselves.

You can claim up to 20% to 35% of your expenses, based on your income. The maximum credit is $3,000 for one qualifying dependent, or $6,000 for two or more qualifying dependents.

4. American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC) is an education tax credit that you may be eligible for if you paid for some of your child’s higher education costs in 2023. The maximum credit is $2,500, with a refundable portion that’s worth up to $1,000. You can use the credit to offset undergraduate education costs, like tuition, books, and supplies.

You can only claim the credit four times on your return for any one person. So if you’re the parent of a fifth-year senior and you’ve already claimed the credit on their behalf four times, you’re out of luck on this one. Single filers with income of $90,000 or less, or married couples filing a joint return who earn less than $180,000 can claim the credit.

5. Lifelong Learning Credit (LLC)

The Lifelong Learning Credit is also available to parents who helped pay for their child’s education, but its rules are a bit more lax than the AOTC’s in a few respects. There’s no limit on how many times you can claim the credit on a dependent’s behalf, plus you can use it if you paid for graduate and vocational programs, on top of undergraduate education.

The maximum credit is $2,000, but there’s no refundable portion. The income limits are the same as the AOTC’s limits.

If you’re paying for more than one child’s higher education expenses, you can claim both credits on your return. But you can only claim each credit on behalf of one child per return.

Will you qualify for these credits?

To cope with the enormous costs of raising a child and putting them through college, it’s essential to max out every tax break available if you’re a parent. Fortunately, most tax-filing software makes it pretty easy to figure out what tax credits and deductions you’re eligible for, but consult with a pro if you have questions.

There’s no way even the most generous tax breaks will cover the costs of parenthood, but the tax credits listed above can provide some small but welcome relief.

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An amended 1099 form is something you shouldn’t ignore. Read on to see why. [[{“value”:”

Taxes are due this year on April 15. But maybe you decided to file your tax return early so your refund could hit your bank account sooner. That may have been more than feasible if you had all of your tax forms on hand.

But what if it’s been a few weeks since your taxes were submitted when you’re notified of an amended 1099 form? Your first inclination may be to ignore it. But that’s not the right decision at all.

You need to address an amended 1099 form

You may get a 1099 form for different reasons. A 1099 form issued by your bank will usually summarize the interest income you earned the previous year, while a 1099 form from a company you worked for will summarize your freelance income.

Each time a 1099 form is issued, you get a copy, but so does the IRS. So it’s important to report any income listed on a 1099. If you don’t, the IRS is apt to find out about it, and you don’t want to risk being penalized for failing to report income.

Similarly, if you receive an amended 1099 form, the IRS is going to receive a copy as well. It’s important to update your tax return to reflect the information your amended 1099 form contains. You can do so by filing Form 1040-X, which is an Amended U.S. Individual Income Tax Return.

Now, you might think, “Well hmph, that’s not fair. I already did the work to submit my tax return. Why should I have to do more work?” And you’re right. It is sort of unfair that an error on someone else’s part is causing you added work.

But if you don’t amend your tax return, you may end up with underreported income. And that could result in penalties if you pay the wrong amount. What’s more, an amended 1099 might result in a larger tax refund for you. So failing to amend your tax return could mean denying yourself money you’re owed.

You may not want to file your taxes too early

Tax filers are often encouraged to submit their returns as early in the season as they can, but there’s a downside to doing that. The earlier you file your taxes, the more likely you are to complete that task before amended 1099 forms are issued.

As such, going forward, it could be a good idea to wait until March to file your taxes. Companies are required to submit 1099 forms by Jan. 31. But if you wait another four to six weeks to submit your return, you’re giving yourself that much more time to see if any amended 1099 forms roll in. That could spare you the hassle of having to amend your tax return.

Plus, you might receive a 1099 form with information that doesn’t look right to you. If so, it pays to contact the issuer to follow up. But in that case, it might take the issuer a few weeks to issue you a corrected form.

So all told, while it’s a good thing to file your taxes early, filing too early could come back to bite you. You obviously can’t undo an early filing you already made this year. But consider adjusting your strategy for future tax years to avoid the work involved in amending a tax return.

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Doing your job from home does not automatically mean you’re eligible for a home office deduction. Read on to see why. [[{“value”:”

At this point, many people are deep in the throes of doing their taxes. And your goal may be to try to eke out the most savings on your return as you can. To that end, it pays to claim any tax credits you’re entitled to, as they’ll reduce your IRS liability on a dollar-for-dollar basis. It also pays to capitalize on tax deductions you’re eligible for, since those serve the very important purpose of exempting some of your income from taxes.

READ MORE: The Ascent’s Complete Guide to Taxes

One tax deduction you may be looking to claim is the home office deduction. But don’t assume that this deduction is available to you simply because you do your job from home.

There are rules you need to follow to claim the home office deduction. And here are three reasons why you may not be able to do so.

1. You’re not self-employed

If you’re self-employed and/or own your own small business, you may be able to claim a home office deduction on your taxes. But if you’re a salaried employee, the home office deduction is off the table.

It doesn’t matter if you do your job 100% remotely. You cannot claim this deduction if you’re a company’s employee.

2. You don’t have a dedicated space used solely for work purposes

Maybe you are self-employed. If that’s the case, claiming a home office on your taxes may be possible if you have a dedicated area in your home that’s used solely for work purposes. If not, then the deduction isn’t for you.

Let’s say you rent a one-bedroom apartment and have your work desk between your bed and dresser. In that case, the home office deduction won’t fly because that room isn’t being used solely for work purposes — it’s also where you get dressed and sleep.

On the other hand, let’s say you rent a two-bedroom apartment, where one room serves as your bedroom and the other serves as your office. In that case, you may be eligible for a home office deduction because you have a dedicated space used only for work purposes — not work plus another purpose.

3. Your home office isn’t your primary office

Maybe you’re self-employed and there is, indeed, a room in your home used only for work. If you also rent office space in town and use your home office just a few hours a week, it’s not a deduction you can claim. That’s because eligibility for the home office deduction hinges on your home office being your primary office.

In that situation, you should, in theory, be able to deduct the cost of renting your office space (though you should always consult a tax professional before making decisions like these). But your home office needs to be the place you clock in most of your working hours to land you a deduction.

The home office deduction can be a bit confusing. In addition to eligibility requirements that you may not fully understand, there are also a couple of different ways you can calculate the value of that deduction. That’s why it’s a good idea to hire a professional to complete your tax return, especially if you’re self-employed or own a business. A professional can help you identify which tax breaks you should and shouldn’t be claiming so you can minimize your IRS debt or maximize your tax refund.

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Loud budgeting is more than a TikTok fad; it’s a real way to take control of your personal finances. See which budgeting habits are popular with Gen Z savers. [[{“value”:”

If you’ve spent time on TikTok in 2024, or read any personal finance blogs, you’ve probably heard of “loud budgeting.” This concept of being vocal about financial goals has become a sensation among Gen Zers who want to save money, control their spending, and increase their financial wellness.

A recent survey from Clarify Capital found that Gen Zers who use loud budgeting are saving an average of $629 per month!

Here are a few of the most popular, effective loud budgeting habits that can help you save more money in 2024.

1. Monitor your credit and bank accounts

Clarify Capital surveyed Gen Z in February 2024 and found that “regularly reviewing and adjusting finances” was the most commonly-mentioned habit among “loud budgeters” (mentioned by 51% of Gen Zers who use loud budgeting). A big part of loud budgeting is being more transparent about your personal finances — with others, and with yourself.

Regularly checking your bank balance and understanding your credit score can be a part of your loud budgeting plan. Start by signing up for a free credit monitoring service that can help you detect any changes to your credit report. These services can also give you insights into what it takes to build credit, understand the credit impact of different financial decisions that you might make, and improve your credit score.

2. Be intentional with your personal finances

Loud budgeting is the opposite of “doom spending.” Instead of spending money unconsciously, even when you don’t have enough in the bank, loud budgeting is a way to clearly express your intentions for how you want to spend — and when you want to save. The Clarify Capital survey found that the second most popular loud budgeting habit was “making intentional choices for financial well-being and goal prioritization” (mentioned by 47% of Gen Z loud budgeters).

You don’t have to feel helpless about money, and you don’t have to feel dragged down by other people’s showy displays of wealth on social media. Just because your friends are sharing photos of an expensive vacation or a fancy restaurant dinner doesn’t mean they can actually afford it; you don’t know the reality of their bank account statements. Sometimes people who show off their spending are actually just racking up credit card debt.

Sign up for a budgeting app and get a clear picture of where your money is going. The best budgeting apps can help you automatically track your spending, down to each transaction, so you can categorize your spending. You might be surprised at how much you’re spending each month on subscriptions you don’t want, or restaurant meals you could’ve cooked at home.

Understanding your monthly spending and finding ways to save can help you be more intentional. Loud budgeting isn’t about depriving yourself of what you want in life; it’s about zeroing in on exactly what you want most — and making sure you have the money to accomplish those financial goals.

3. Establish financial priorities

Speaking of financial goals: “Setting and prioritizing financial goals” ranked as the No. 3 most popular habit among Gen Z loud budgeters (mentioned by 46% of loud budgeters in the Clarify Capital survey). If you want to feel more empowered about your money, it helps to gain clarity about specific financial goals that matter most to you.

Here are a few big-picture questions about your personal finances that you might want to consider:

What is the “happiest” money that you spend each month?What do you dread most about your personal finances?What is it about money that makes you most afraid, uncomfortable, or ashamed?If you could start a side hustle to earn an extra $500 per month, what would it be?If you could save $100 a month, where would you cut spending?If you could save $500 in a month by cooking every meal at home, would you do it?If you could save $3,000 in a year by taking “staycations” instead of traveling, would you do it?

These are provocative questions that can help you connect to your deepest values, hopes, and fears about money. Loud budgeting is not easy, and it’s not always painless — sometimes you have to make short-term sacrifices and trade-offs. But what if you could give up a few things you want “now” (restaurant meals, vacations, free time watching TV) to more important things that you want “most” (zero credit card debt, an emergency savings fund, a maxed-out IRA)?

If you want help to achieve your most inspiring financial priorities, consider signing up for a debt payoff app — the best ones can help you set up automatic payments. Or get a bank account that offers subaccounts, where you save for specific goals from within your savings (or checking) account. This bank feature is like the “cash stuffing”/envelope method, but right inside your digital banking app, so you can see every transaction.

Bottom line

Loud budgeting is not a silly TikTok fad; it’s seriously good advice for your personal finances. Gen Zers are using the habits of loud budgeting to save big money — over $600 per month, or over $7,200 per year. Loud budgeting is not just a way to increase your bank account balance — it can also help you feel more confident about your personal finances, your self-worth, and your future success.

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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.
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