Money Management

Small business owners: Is it time to upgrade your home office? See how to make your home business workspace more comfortable and efficient. [[{“value”:”

If you’re a small business owner, a solo entrepreneur or freelancer, or just using your home for a side hustle, there are lots of good reasons to spruce up your home office in 2024. Investing in some new office furniture, equipment, and other home office supplies can help you be more productive and have a happier workspace — and these purchases can also be tax-deductible business expenses.

Let’s look at a few great Amazon buys to upgrade your home office experience. (Prices shown were available as of Feb. 20, 2024; exact prices might vary by location or your choice of product specifications.)

1. Stop squinting: Brightown LED Desk Lamp ($65.99)

Whether you’re burning the midnight oil or just working past sunset, your home office might need better lighting. Stop straining your eyes with dim light and make your workspace more productive with an LED Desk Lamp from Brightown.

This architect-style lamp is smooth and precision-adjustable for any time of day or night, with a wide range of lighting color temperatures and dimming options. And you can turn the lamp on or off with a smart remote control, or just by swiping your hand near the proximity sensor — no switches or buttons are required.

Buy it on Amazon: Brightown LED Desk Lamp ($65.99)

2. Get your papers in order: DEVAISE 3-drawer mobile file cabinet ($69.99)

No matter how “paperless” you try to make your small business, your home office probably still has some old files and paperwork you need to keep. Get your paperwork and other office essentials organized with this stylish file cabinet and storage shelves from DEVAISE.

This file cabinet isn’t the usual heavy, clunky-looking metal box. It’s got light, fabric drawers for an easier-on-the-eyes visual presentation, and wide wooden shelves with plenty of room to store books, binders, baskets, or printers. This cabinet is mobile, too: it’s got four wheels with lockable casters, so you can move it to any corner of your home office (or other rooms of the house) without worrying about sensitive documents rolling away.

Buy it on Amazon: DEVAISE 3-Drawer Mobile File Cabinet ($69.99)

3. Get more caffeine into you: Nextmug Self-heating Coffee Mug ($99.95)

As every small business owner knows, coffee is the entrepreneur’s elixir of productivity, the liquid summoner of prosperity. No matter how you take your coffee, or even if you drink tea, this Nextmug Coffee Mug will keep your caffeinated beverage at the temperature of your choice — “warm,” “hot,” or “piping.” This smart mug comes with a spill-resistant lid and docking coaster to power your next great marketing idea or entrepreneurial breakthrough.

Buy it on Amazon: Nextmug Self-Heating Coffee Mug ($99.95)

4. Stop slouching: Silybon Ergonomic Office Chair ($159.98)

Want to spend more comfortable hours at your desk? Take care of the back that takes care of your small business with an ergonomic chair. This Silybon office chair has an S-shaped backrest for ideal ergonomic support. The chair is made of lightweight breathable mesh, and you can adjust the height, lumbar support, and even flip up the armrests. It comes in a few eye-catching colors, including pink and light blue (along with the usual white, gray, and black).

Buy it on Amazon: Silybon Ergonomic Office Chair ($159.98)

5. Stretch your legs: INNOVAR Standing Desk ($299.99)

“Sitting is the new smoking,” so you might want to give yourself an occasion to stand up more often and stretch your legs during your workday. This INNOVAR Standing Desk can help you do that — and it has an electric motor for easily adjustable desk height, so you can sit or stand whenever you want.

The desk is made of steel and tempered glass, includes built-in pullout drawers, and comes in a few sizes (this $299.99 price is for the 48 inches wide x 24 inches deep model). You can adjust the desk height from 28.3 inches up to 46.5 inches. The motor is equipped with four programmable presets, so you can use your favorite desk heights.

Buy it on Amazon: INNOVAR Glass Standing Desk ($299.99)

Bottom line

One of the fun perks of running your own small business is that you can upgrade your workspace and get some fun new office gear whenever you want (budget permitting). If you have some spare cash (or a business credit card) to spend on some tax-deductible business expenses, these home office supplies could help make your workspace more productive, comfortable, well-lit, well-organized, and well-caffeinated in 2024.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

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. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

“}]] Read More 

Want to earn better yield on your certificates of deposit? See how CD laddering can help you maximize your savings in 2024. [[{“value”:”

If you’re trying to decide if 2024 is a good time to invest in certificates of deposit (CDs), there is a special strategy that can help you improve your chances of getting the best yield on your savings. It’s called a CD ladder.

Instead of just opening one CD, a CD ladder lets you buy a diversified mix of CDs, with different terms and yields. Just like it’s often better to diversify when buying stocks, putting your money into multiple CDs at once can help you improve your chances of getting a higher yield on your cash savings.

Let’s look at how a CD ladder works, why it’s a good investment, and how much you can earn with this CD strategy.

How a CD ladder works

CD laddering lets you put your cash into a mix of CDs, some with shorter terms (three to six months), and others with longer terms (one, two, to three years or more). You can even use multiple banks or credit unions to build your ladder. All of the different CDs in your ladder will pay different yields, based on the term. The CD ladder lets you lock in higher APYs on a few longer-term CDs, while holding on to flexibility and liquidity of your cash with shorter-term CDs.

For example, let’s say you have $10,000 of cash, and you want to put it into a CD ladder based on some of the best CD rates today. Here’s what a CD ladder might look like:

With this CD ladder, instead of putting all $10,000 into one CD, you spread your cash across a diversified portfolio of CDs — with terms as short as three months or up to three years. There’s no one right way to build a CD ladder. Some people might prefer longer-term CDs of five years or more; other people might want a mix of short-term CDs, like three months to 18 months.

But the goal of a CD ladder is to maximize the long-term yield on your savings, while giving you short-term access to some of your cash. It all depends on your personal finances, investment goals, and risk tolerance.

Why a CD ladder is a good investment strategy

A CD ladder is a good strategy for investing in CDs, because it can give you the best of both worlds: earning higher yields on your savings, and more flexibility and accessibility for your short-term cash. CD ladders might be especially useful in 2024, in case the Fed cuts interest rates later this year.

In case interest rates go down, APYs on savings accounts (and short-term CDs) will go down too. Building a CD ladder can give you a chance to lock in some good APYs on longer-term CDs. And what if the Fed doesn’t cut interest rates? In case interest rates stay the same, or even go up, you can keep buying new short-term CDs at higher APYs.

Building a CD ladder can help you hedge your interest rate risk and keep earning a good yield on your savings, no matter what the Fed does at its next meeting.

How much you can earn with a CD ladder

CD laddering helps you earn more when you can get higher APYs on longer-term CDs. Let’s look at an example of how a CD ladder can maximize yield while preserving your options for how to use your cash.

Let’s say you have $20,000 to invest in CDs, and you decide to put the money into four different CDs with the following terms and APYs.

According to our calculations, this CD ladder would help you earn $214 more than you would get from putting all your money into a 3-month CD and rolling it over every three months.

But keep in mind that CD ladders do not always deliver the highest yields on your savings. If you can get higher APYs on short-term CDs, this might give you a bigger return on investment than spreading out your cash across longer-term CDs in a CD ladder.

However, if the Fed cuts interest rates by the end of 2024, short-term CDs will likely offer lower APYs than they do as of February 2024 — and CD ladders could become a better investment. As with so many other aspects of investing, CD ladders are often a matter of timing.

Bottom line

If you want to get the highest yield on your savings, opening a CD could be a good choice. But another way to maximize yield is to use a CD ladder. By putting your cash into multiple CDs with different yields and terms, you can improve your chances of getting the best yield, while keeping some of your cash easily accessible for emergencies or other investment goals.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

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.

“}]] Read More 

Is your child turning 17 this year? Don’t get taken by surprise by the end of the Child Tax Credit! See how to avoid an extra $2,000 tax bill. [[{“value”:”

The Child Tax Credit is one of America’s best-known tax breaks, because it gives an extra $2,000 per child back to parents at tax time. Thanks to the Child Tax Credit, if your family has two children under the age of 17, you get $4,000 discounted from your federal income tax bill.

But the Child Tax Credit doesn’t last forever. You can only claim the credit for children who are under the age of 17. That means that if your child is turning 17 in 2024, you won’t get to claim the Child Tax Credit on your 2024 tax return (due in April 2025).

If you’re about to lose the Child Tax Credit from your child aging out of it, here’s how you can plan ahead to reduce the tax hit.

How the Child Tax Credit works

If you have a child with a Social Security number, and your income is $200,000 or less for singles, $400,000 or less for married couples filing jointly, you can get the Child Tax Credit. The Child Tax Credit is $2,000 per child under the age of 17. To qualify for the tax credit, your child can be your son, daughter, stepchild, eligible foster child, or other dependents that live with you for more than half the year (like a step-sibling, half-sibling, grandchild, niece, or nephew).

This means:

If you have one child, age 15: you get $2,000 for the Child Tax Credit.If you have two children, ages 12 and 14: you get $4,000 of Child Tax Credits.If you have three children, ages 18, 15, and 13: you get $4,000 of Child Tax Credits.

If you’re a married couple filing jointly with two children, ages 10 and 12, and your household income is $80,000, here is how the Child Tax Credit reduces your tax bill:

For this family of four, the Child Tax Credit reduced their federal income tax bill substantially. They only ended up owing $1,839 of tax. Depending on your W-4 tax withholdings from your paycheck, the Child Tax Credit can help you get a bigger tax refund.

Keep in mind that the Child Tax Credit is only valid for children under the age of 17. If your child is turning 16 in 2024, you’re fine: you still get that $2,000 tax credit on your 2024 tax return. But if your child is turning 17 in 2024 — get ready for a $2,000 tax hike.

How to prepare for losing the Child Tax Credit

If your child is turning 17 in 2024, you should start now to prepare for the loss of that Child Tax Credit money. Having to pay an extra $2,000 at tax time is not fun, and it might leave you owing IRS penalties for underpayment of tax.

Here are a few ways that you can plan ahead to take the sting out of losing the Child Tax Credit.

Update your W-4 at work

Change your W-4 tax withholdings to have more money withheld from your paycheck. Many employers have an automated W-4 system or questionnaire that will ask you for the ages of your children.

The downside of this plan is that it will make your take-home pay a little lower. For example, if you get paid twice a month (24 paychecks per year), that means you should try to withhold an extra $83.33 out of each paycheck to make up for that $2,000 of lost tax credit.

Reduce your taxable income with tax deductions

If possible, put extra cash into your tax-deductible retirement accounts like a 401(k) or traditional IRA. If you have a health savings account (HSA), try to make the maximum contribution for 2024.

Not everyone has enough income to make these strategic tax planning moves, but if you’re about to lose the Child Tax Credit, it helps to think ahead. If your tax bill is going to be $2,000 more when you file your taxes, try to reduce your taxable income now.

For example, here are two hypothetical tax returns for two married couples filing jointly with one child who just turned 17. Couple A puts $5,000 into a 401(k), but makes no other contributions to tax-deductible accounts. Couple B puts $5,000 into a 401(k) and makes additional contributions to accounts that increase their tax deductions.

Making these extra contributions to tax-advantaged accounts can reduce Couple B’s tax bill by $1,710 — almost enough to make up for the loss of the $2,000 Child Tax Credit.

Bottom line

Losing the Child Tax Credit when your child turns 17 can lead to an extra tax bill. Plan ahead for how to make up for that $2,000 on your tax return, and use tax software to make sure you’re paying the right amount. Change your W-4 at work, or make strategic tax moves to increase your tax deductions.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

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.

“}]] Read More 

Not getting value out of your Costco Executive membership? Read on to see why you shouldn’t sweat it. [[{“value”:”

Many people join Costco to save money on things like groceries and household essentials. But if you do a lot of shopping at Costco, an upgrade to an Executive membership could make a lot of financial sense.

A basic membership at Costco costs $60 a year. The upgraded Executive membership costs $120. But in exchange for your extra $60, you’ll be eligible for 2% back on your Costco purchases.

Now, there are some exceptions to this rule. Gasoline purchases at Costco pumps don’t qualify for 2% back on your Executive membership. Neither do cigarette or alcohol purchases. But for the most part, if you shop at Costco often, an Executive membership could pay off.

But what if you upgrade your Costco membership only to find that you’re not using it as much as expected? In that case, fear not — you’re not out of luck by any means.

Costco will make you whole

One of the things Costco is known for is outstanding customer service. The warehouse club giant has a generous and flexible return policy because it wants its members to be satisfied with the products they bring home.

Costco also wants its customers to be happy with their memberships. So if you upgrade to an Executive membership and don’t use it to its full extent, all you need to do is go to customer service at Costco and ask to downgrade to a basic membership. You won’t have to continue paying the higher fee for an upgraded membership that isn’t benefiting you.

Best of all, you won’t actually be out any money. See, at the time of your downgrade, Costco will see how much cash back you’ve gotten out of your Executive membership. And if your cash back total doesn’t cover the cost of the upgrade, Costco will give you back the difference.

So let’s say you decide to switch back to a basic membership after a year. At that point, Costco will see how much cash back your Executive membership has earned you. If it’s only $50, Costco will return $10 to you so you’re made whole on your $60 upgrade fee.

A no-risk situation

You may be nervous about upgrading to an Executive membership at Costco for fear that you won’t spend enough for it to be worth it. If you spend more than $3,000 a year at Costco, the Executive membership automatically pays off, since 2% of $3,000 is $60 — the exact cost of the upgrade. And even if you don’t visit the store regularly, sometimes, all it takes is one or two larger purchases to put yourself over that $3,000 threshold.

But either way, you’re not really taking on any financial risk with an Executive membership, because Costco will give you whatever portion of your upgrade fee you don’t make back should you decide to downgrade. So if you’re on the fence, try an Executive membership for a year and see how it goes. In a worst-case scenario, you’ll end up breaking even.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

Owing money on your taxes isn’t fun. Read on for tips on what to do if you expect to be in that situation. [[{“value”:”

Many people who file their taxes wind up with a refund. But you may be worried about owing the IRS money this year, and understandably so.

First, if your income increased in 2023 but you didn’t increase your withholding at work or make estimated tax payments on things like interest income in your savings account, then you may discover you have a balance due when you file your taxes this year. Or, if you did some contract work on the side and got paid in full without having taxes removed, that, too, could trigger a tax bill.

It can be argued that it’s better to owe the IRS a bit of money during tax season rather than be due a refund. When you get a refund, it means the IRS got to hang onto your money for longer, interest free.

But owing the IRS money can be a problem if you’re unable to pay your tax bill in full by the April 15 filing deadline. Although the IRS will generally let you get on a payment plan, you’ll still incur interest on your unpaid balance. So if you’re worried you’ll owe the IRS money this April, consider making these moves now.

1. Sneak extra funds into your 2023 IRA

In 2023, contribution limits for IRAs were $6,500 for savers under 50 and $7,500 for participants 50 and older. You actually have until this year’s tax-filing deadline to make contributions to your 2023 IRA. And doing so could shield more of last year’s income from taxes. So if you didn’t max out last year and you have some spare cash, it’s not too late to finish funding your 2023 account.

2. Cut your spending starting now

Taxes — and associated IRS payments — aren’t due for about another eight weeks. That gives you a decent chunk of time to whittle down your spending temporarily and free up cash to pay the IRS if necessary.

In the coming weeks, try to cut back on things like takeout, beauty treatments, and other services you can technically do without. It’s not easy to deny yourself the things you enjoy, but doing it for a few weeks could spell the difference between being able to pay an IRS bill or not.

3. Take on a side gig

Cutting back on spending can be tough, and you may only be able to do so much of it. If you’re concerned about owing the IRS a larger sum, consider picking up a side gig now. You can use your earnings to settle your debt so it doesn’t linger. However, keep in mind that if your side gig is done on a freelance basis, you’ll need to set aside some of your earnings for tax purposes so you don’t wind up in the same situation next year.

Run your tax numbers now

If you’re nervous about owing the IRS money, Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services, says that one of the best things you can do is file your 2023 tax return as soon as possible. That way, you’ll know exactly what your tax bill looks like, and you’ll be able to make a plan to come up with the money.

“If you owe, {filing early} gives you more time to pay, as you don’t have to pay the same day you file — you have until Tax Day, April 15, 2024,” Steber explains. So if you find out in mid-February that you owe the IRS $800, you’ll know you’ll have to save or earn roughly an extra $100 a week to get that debt settled by mid-April. If you don’t have a specific number to target, you might cut your spending or work a side gig only to still come up somewhat short.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

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.

“}]] Read More