Money Management

Starting a small business is a challenging feat. Here are a few things owners have had to learn along the way. [[{“value”:”

Many people starting a small business want to know the hard-earned lessons learned by other owners and what pitfalls to avoid.

Fortunately, most small business owners are open to sharing their knowledge and insights after years in business. Here are some tips I came across when looking for lessons business owners wished they knew before they started.

1. You’ll need to delegate more than you like

One thing that some business owners said they learned the hard way is to outsource what they aren’t good at. Some business owners struggle to hand the reins over to someone else, even for small tasks, but it’s usually a mistake not to.

Instead, figure out what you’re good at and what you’re not. Focus on the parts of the business you do well and delegate to employees or outsource what you can’t do. This might be bookkeeping, marketing, customer service, or other core parts of the business.

2. You have to be ruthless with your processes

Some small business owners said they spent too much time clinging to processes that didn’t work. Instead of being flexible in finding solutions, they stuck with what they knew.

For example, if you’re afraid to implement a new payment method on your website — even though it’s better or cheaper than your existing one — you might need to be more open to change. Some business owners suggested you need to be ruthless with your processes to improve the businesses.

3. You’ll spend more time running the business than you think

Some people have romantic views of what they’ll work on when they start a business. It might be making food for people or developing a cool app.

However, the reality is that many small business owners spend much of their time managing their companies. Sure, you’ll still cook, create, write, or develop your product, but you’ll also spend a lot of time managing people, scheduling, fixing problems, and plotting your business strategy.

4. You’ll need to manage your cash

Cash flow management is critical for any business, small or large. This isn’t just knowing what expenses you have or what equipment you need — it’s knowing when you can spend the money and when you can’t.

Small business owners who learn cash flow management see their company’s broad financial picture. This means understanding how more debt will affect next quarter’s bills, when to use (or not use) the business credit card, and how to correctly project next month’s sales.

5. You’re responsible for building an audience

Despite what you may think, most people aren’t chomping at the bit to get your product. At least, not yet.

Business owners realized that opening a restaurant or releasing a product is only the first step. You also need to put in the work to build an audience and reach potential customers. Marketing campaigns, social media, and generating word-of-mouth buzz are all part of a small business gig.

One bonus tip about starting a small business that many owners recommend is finding a mentor. Most small business owners understand that going it alone doesn’t work, so find someone who can help you work through problems and guide you when things get tough. If you’re starting a business this year, keep the above tips in mind for a greater chance of success.

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Getting a new job could do great things for your finances. But read on for one big blunder to avoid. [[{“value”:”

The start of a new year is a pretty popular time to contemplate a job change. In fact, a recent Monster report finds that 95% of workers are looking for a new job in 2024, or plan to look.

Switching jobs could mean getting a role that offers a higher salary and better workplace benefits, like superior health insurance and more paid time off. And that could improve your overall financial picture.

Now, there are certain mistakes you’ll want to avoid when getting a new job. First, don’t burn bridges at your old company. You never know when you may need to call in a favor to your old boss or even want your old job back.

Also, make sure to give ample notice — two weeks’ worth is usually the standard. That makes you look more professional and increases your chances of getting hired again, should you have that need in the future.

But there’s another mistake you’ll want to avoid in the course of leaving a job. And it has to do with your long-term savings.

Don’t leave your 401(k) behind

If you’re leaving a job where you had money in a 401(k) plan, your first inclination may be to simply keep that money where it is. That way, you don’t have to deal with paperwork or any sort of hassle.

But leaving an old 401(k) behind is often a big mistake. For one thing, you might forget about the money you have if it’s not a particularly large amount. But also, with an old 401(k), you’re less likely to keep tabs on your investments. And that could mean losing out on serious gains over time.

What to do with your 401(k)

If you’re truly miserable at your current job and have enough money in a savings account, you may be inclined to resign before lining up a new position. This isn’t necessarily a terrible idea. Focusing on a job hunt without having to juggle work commitments could help you go about the process more efficiently. And if you’re able to pay your bills all the while, why not?

In that situation, though, what you may want to do is open an individual retirement account (IRA) and transfer the money from your old 401(k) into it. That way, you can manage that IRA yourself, and you won’t be leaving money in an account managed by a company you no longer work for.

However, if you do manage to line up a new job in conjunction with your resignation, you may want to see if it’s possible to roll your old 401(k) into your new employer’s 401(k). This, of course, assumes that your new employer has a retirement plan and that new employees are eligible to participate right away. That may not be the case. But if it is, that’s another good option.

Just as you’re probably going to clear out your desk when you leave your job and take your belongings with you, so too should you always aim to take your 401(k) funds with you. And if you don’t have a new 401(k) to deposit those funds into, an IRA works just as well.

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Most airports aren’t known for their posh amenities. But take a look at these exclusive lounges that offer a peek into how the wealthy experience air travel. [[{“value”:”

It’s no secret that traveling can be stressful. Airlines know this, too, and they’ve created an entire industry around making travel much more enjoyable — if you have the personal finances to pay for it.

Luxurious airport lounges can be found in airports worldwide; if you have yet to experience them firsthand, consider this your official initiation. Here are five of the most luxurious details that will save you the trouble of peeking through lounge doors at the airport.

1. Air France La Première Lounge, Paris

A few hours at the La Première Lounge will have you saying “au revoir” to your travel stress. Complimentary 30-minute spa treatment? Check. A driver waiting to take you to the lounge? Yep. Signature meals created by acclaimed French chef Alain Ducasse? Sure, why not?

You’ll get all this and more at Air France’s La Première Lounge in Paris’s Charles de Gaulle Airport. And with the lounge renovated just last year, travelers will enjoy a refreshed setting complete with work areas, a cocktail bar, and even daybeds for napping.

2. Lufthansa First Class Terminal, Frankfurt

As you arrive at the Frankfurt Airport, drive straight to the Lufthansa First Class Terminal — yes, it’s an entire terminal — and toss your keys to the valet. They’ll take care of the rest.

You’ll be greeted by a personal assistant who will help you with your travel details, including getting you through security and the entire check-in process. Keep walking through all 20,000 square feet of the Lufthansa’s lounge, complete with a cigar lounge, private shower suites (and even one bathtub!), and a bar stocked with over 130 types of whisky.

3. Turkish Airlines Business Lounge, Istanbul

The lounges (it has two) Turkish Airlines offers in Istanbul often rank as the best you’ll ever find. As the name suggests, the business lounge is available to business-class travelers — and doesn’t disappoint.

With 60,000 square feet, you’ll feel as if you’ve entered another airport as you stroll through the multiple sections filled with places to eat, a small kids’ playground, and private rooms for working or napping. Take a shower and then sit down in the library as you wait for your next flight, or wander over to the golf simulator to pass the time.

4. Qantas First Lounge, Sydney

Perhaps you love books and botanical gardens and have at one time or another thought to yourself, “Why doesn’t someone combine these two things at an airport?!” If so, you’re in luck.

Qantas’ First Lounge in Sydney, Australia, has a small library where you can kick back and read while you enjoy the botanical garden and plants throughout the lounge designed by tropical botanist Patrick Blanc. And if you, just like plants, enjoy a good shower, then access the available shower suites in the lounge at the end of a long travel day.

5. Swiss First Lounge, Zurich

Before you explore the historic city of Zurich, Switzerland, you may want to spend your first few hours in the Swiss First Lounge.

With a panoramic view of the Swiss Alps, you’ll know you’re not in just any airport lounge. Keep that feeling going while viewing the 1,000-bottle wine humidor, a well-stocked champagne bar, two hotel rooms, shower suites, and the lounge’s five-star restaurant.

How to get access to airport lounges

Each of these lounges has specific requirements for access — usually first-class or business-class tickets on certain flights. Some lounges may require specific memberships or a steep one-time fee.

If you’re a regular traveler, you may benefit from signing up for a travel credit card. While you may not gain access to all the luxury lounges on this list, a travel credit card may make it easier to access the lounges in airports you most frequently visit.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Will the stock market experience a shake-up in 2024? It’s hard to know. But do these things to prepare just in case. [[{“value”:”

It would be fair to say that the very start of 2024 was a rocky one from a stock market perspective. The new year began with a selloff, and major stock indexes fell to ring in 2024.

Stocks have since rallied, though. And as of this writing, the S&P 500 index, which is generally used as a measure of the stock market on a whole, is up 2.37%.

But all told, January has been a pretty wild month. And we could be in for 11 more as 2024 rolls along. If you’re someone who’s worried about a perpetually volatile stock market this year, here are some key moves to make.

1. Diversify your portfolio

A portfolio that’s loaded with stocks across different sectors of the market could easily rise and fall this year. But if you’re well-diversified in your brokerage account, then you may be less likely to see your portfolio lose a lot of value if a particular corner of the market takes a hit.

If you own a lot of different stocks, take inventory and assign each one a sector, such as tech, automobiles, retail, energy, and so forth. If any single sector represents more than 25% to 30% of your portfolio, it’s a sign that you may be due for some rebalancing.

2. Plan to hold investments for a long time

The idea of losing money in a volatile stock market can be scary. But if you pledge to hold onto your investments for decades, then frankly, the events of 2024 shouldn’t really concern you.

Let’s imagine you invest $1,000 this month in a certain company, and by June, that investment is only worth $600. That’s a hard thing to see. But if you remind yourself that you’re not cashing out that investment for another 30 years, it puts a temporary $400 drop in a whole different perspective.

In fact, a $1,000 initial investment that’s worth only $600 by June could very well be worth $1,200 by December. But if you know you’re not using that money for many more years, that alone should give you peace of mind.

3. Look at broad market ETFs

Some investors take comfort in the fact that the performance of their portfolio is in line with that of the broad market — even when things turn bumpy. If you feel similarly, you may want to add some broad market ETFs, or exchange-traded funds, to your portfolio.

Buying shares of an S&P 500 ETF, for example, means that if the market gains value, chances are, so will you. When the market falls, your portfolio value should follow suit — but you know you’ll be in good company.

There are a lot of factors that have the potential to influence the stock market’s performance this year — upcoming elections, lingering inflation, and potential interest rate cuts (or hikes, depending on what inflation has in store). But if you branch out in your portfolio and commit to a lengthy investment window, you may find that you’re able to stress less over stock market volatility. And the less stressed you are, the less likely you may be to make a rash decision in your portfolio that results in a financial loss.

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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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Want to see how the global economy affects your spending? Keep reading to learn how the global economy is in (almost) everything you buy. [[{“value”:”

Every day when you go to work (or work from home), go to the store (or shop online), watch TV, or use the Internet, you are not just living your own little life — you are participating in the global economy. And as the COVID-19 pandemic has shown us, the global economy is more interconnected than ever before.

What happens in China or Europe or South America or Africa can affect people on the other side of the planet. Global supply chains help provide the food we eat and the cars we drive and the laptop computer that I’m using to type this article. Digital technologies have opened up new ways of collaborating and communicating worldwide, instantly.

Every day, people all over the world wake up and go to work growing crops, building houses, making cars, fabricating semiconductors, fixing furnaces, flying planes, teaching classes, caring for patients, putting out fires, and writing code. All of us are contributing in our own small way to this massive, complex web of transactions and relationships that we call “the global economy.”

Let’s look at a few ways that the global economy affects your everyday life and daily spending.

1. The price of oil affects the price of everything

The price of oil is a major economic indicator, because it affects the price of so many other things that people need. If the price of oil goes up, the cost of food tends to go up — because the price of fuel goes up for farm equipment, and for the trucks that ship food to grocery stores and restaurants. Restaurants might need to raise prices on their menus because of their higher food costs. Food delivery apps might start charging an extra fee to compensate their drivers for the added costs of gasoline.

The price of oil is also often linked with the price of natural gas; higher costs of gas can cause higher heating bills in the winter. This can make the cost of doing business more expensive for anyone who has to pay utilities for a commercial office space or a retail store.

Oil prices (and the price of gasoline) fluctuate based on day-to-day changes in the global economy. When lots of companies want to expand their operations, when lots of people want to drive more miles, when people are feeling economically optimistic, this can drive up oil prices. When there is a crisis involving oil-producing countries, such as war in the Middle East or Russia’s invasion of Ukraine, this causes fear and panic in the global market for oil — traders start to worry that they won’t be able to get enough oil, so oil prices go up.

Back in the 1970s, America suffered what was called the “oil shock” due to an oil embargo by the OPEC nations of the Middle East — there were shortages of gasoline, and long lines of cars lined up outside of gas stations. But in recent decades, America has started to produce much more oil and other energy than it used to. Since 2019, America has been a net total exporter of energy — meaning we sell more energy to other countries than we buy.

Hopefully, because of this high level of energy independence, America will not go back to the bad old days of the oil shock. Higher gas prices are no fun, but they ideally will not become a national economic crisis like they were in the 1970s.

2. Currency exchange rates affect your buying power

Every day, money is changing hands all over the world. Banks are borrowing from each other and lending to each other, people are making payments with their credit cards, companies are placing orders, and many of these transactions are happening in multiple currencies. Currency exchange rates — how much money it takes to buy a certain amount of another country’s currency — are a major part of the global economy.

When the U.S. dollar is “strong,” that means the U.S. dollar can buy a larger-than-usual amount of foreign currency. During a recent trip that I took to Montréal, Canada, the U.S. dollar was equal to about $1.30 in Canadian dollars — this made my Canada vacation feel really affordable. A $20 (Canadian) restaurant bill only cost me $15.38 in U.S. money.

But when the U.S. dollar is “weak,” that means it’s more expensive for Americans to buy foreign goods. So if the U.S. dollar becomes weaker, your imported African coffee, French cheese, or Mexican tequila might get more expensive in U.S. dollars. Currency exchange rates are constantly changing based on complex factors like monetary policy, whether the Fed raises interest rates, and overall demand for dollars in the global economy.

3. Faraway problems can raise your costs at home

Recently, a group of rebels in the Middle Eastern country of Yemen (called the Houthis) have started shooting missiles at cargo ships in the Red Sea. This has caused a global shipping crisis, as cargo ships have to take slower, more expensive routes. Disruptions to global shipping raise prices all over the world, because 80% of the world’s trade travels by sea.

Another shipping crisis is happening at the Panama Canal, where a prolonged drought has reduced the canal’s water levels. This has made it harder for big ships to get through, causing long delays. If the Red Sea and the Panama Canal cannot be used by cargo shipping companies, there will be higher costs for everyone.

Bottom line: The global economy affects your personal finances in a multitude of ways. You can see the global economy at work in the price of the food you buy, the spending power of your U.S. dollars on vacation, and in the opportunities available for you to invest your cash.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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