Money Management

Money may be too tight to give out raises for the near year. Read on to see how you can compensate. 

Now that 2023 is winding down, a lot of small business owners are in the process of conducting performance reviews and letting employees know what their 2024 raises will look like. But perhaps you’ve reviewed your business bank account time and time again only to draw the same conclusion — you just can’t afford to raise your workers’ pay going into the new year.

Many small businesses are still dealing with higher operating costs. Inflation — and the Federal Reserve’s resulting stretch of interest rate hikes — has made it more expensive for small businesses and everyday consumers alike to borrow affordably.

It’s easy to see why you may not be able to swing big raises — or any raises — for 2024. But that doesn’t mean your employees are guaranteed to jump ship. If you offer other much-wanted benefits, you may find that you’re able to largely retain talent even in the absence of giving a nice pay boost.

Time off and flexibility could go a long way

Maybe your company just doesn’t have the money to bump up salaries across the board. And while you could technically just boost the pay of your highest performers, if word were to get out about that, it might lead to animosity among employees and even more of a headache for you.

A better bet may be to offer non-financial benefits — but benefits that have a lot of value nonetheless. These include more time off and more flexibility with scheduling.

A good 86% of Generation Z workers would be willing to give up a percentage of their salary raise for better benefits, while 76% would be willing to do so for a more flexible work arrangement, according to a recent report from Schwab. Among millennials, 74% would do the former and 67% would be on board with the latter.

So, let’s say your employees are currently entitled to two weeks of vacation each year. Bumping that up to three weeks might make your employees more willing to overlook an absent raise.

Similarly, let’s say you’re able to work things out so your employees can do their jobs remotely a couple of days per week. For some, that could mean saving money on commuting, pet care, and child care. For others, it could simply be a nice perk that allows them to sleep in a bit longer and be home to get dinner started for a smoother evening.

You can also try to be more flexible with workers’ hours. Rather than insist on the classic nine-to-five setup, for example, you may have employees who really want to be home by 4:00 p.m. to grab their kids off the school bus and shuttle them to activities. Allowing them to come in super early and leave at 3:30 p.m. could improve their quality of life — and inspire them to stay in the absence of a raise in 2024.

You can only do your best

You may be feeling bad about not offering a generous raise for your employees this winter. But if that’s the situation you’re in, rather than stress over it, try to compensate elsewhere.

Also, be open with your team about your company’s financial situation. You may find that your employees are more than sympathetic, and that they’re happy to accept better benefits like added paid time off and flexibility instead of more money.

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Mortgage rates are up right now. Is there any way it could make sense to refinance in the new year? Read on to find out. 

In 2020 and 2021, mortgage lenders were eager to drum up business in the wake of a pandemic-fueled economic crisis. As such, they offered attractive mortgage rates, and many existing homeowners rushed to refinance their mortgages as a result.

All told, new home buyers and existing homeowners with strong credit were looking at 3% mortgages back then. But today’s borrowing environment is very different. Not only are mortgage rates considerably higher than they were in 2020 and 2021, but they’re also some of the highest rates we’ve seen in years.

As of Nov. 22, the average rate on a 30-year mortgage was 7.29%, according to Freddie Mac. That’s an improvement from earlier in the fall. But it’s still worlds higher than 3%.

As such, now really isn’t a great time to refinance a mortgage. And because rates aren’t expected to drop so dramatically in the coming months, there’s a good chance that 2024 won’t be a great time to refinance a home loan, either. But there may be an exception to the rule.

When it’s not just about lowering your mortgage’s interest rate

For many people, the goal of refinancing is to lower the interest rate on their home loan for lower monthly mortgage payments. So if you’re sitting on a mortgage you signed at 3.25% and are now looking at 7.29% in the course of a refinance, that won’t make sense.

But there’s a reason why people sometimes choose to refinance, and it’s to take cash out of their homes. Maybe you really need to finish your basement so you can spread out more comfortably or build an office that allows you to work from home more efficiently. If you don’t owe a ton of money on your mortgage and can snag a lower interest rate on a refinance than on a home equity loan, then a refinance could make sense.

Similarly, let’s say you owe a lot of money on your credit cards, and you’re looking at an exorbitant interest rate on those balances. Perhaps you owe $50,000 on your mortgage at 3%, but $50,000 on your credit cards at 21%.

If you do a $100,000 cash-out refinance at 7.29%, you’d use the first $50,000 to pay off your existing mortgage balance and the remaining $50,000 to pay off your cards. Otherwise, you’d be looking at an average interest rate of 12% if you were to stick to your current mortgage and credit cards. So in this example, it makes sense to raise the rate on your mortgage because it allows you to lower the interest rate on your debt overall.

Shop around either way

Mortgage refinances may not be attractive to most homeowners in 2024. But refinancing might make sense for you and your finances.

If you decide to go that route, make a point to shop around with different lenders. You may be surprised to see a range of offers depending on factors that include your credit score and income. Do your research so that if you do decide to refinance, you’re able to do so as cost-effectively as possible.

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The IRS is delaying a new rule that could affect people who sell items online. Here’s what it means for you. 

As part of the American Rescue Plan (ARP), the threshold for reporting income from third-party settlement platforms is set to change dramatically. Previously, such income was only reported to the IRS if it exceeded $20,000 for the year and took place in more than 200 transactions. The thinking behind this was that if a business you own was being paid for goods or services online, it would trigger tax reporting to the IRS.

Under the new rules, the reporting threshold is falling to just $600. In other words, if you sell concert tickets online and receive $700, you (and the IRS) would receive a tax form reporting the sale.

This also applies to third-party payment platforms like PayPal, Venmo, and Cash App. However, it’s important to note that only transactions that result from the sale of goods or services will count. For example, if someone sent you $100 for your birthday through Venmo, that wouldn’t count toward the $600 threshold.

A welcome delay in the tax change

Until recently, it was believed that the new $600 reporting threshold would apply to payments on third-party settlement organizations for 2023 tax returns. In other words, many people thought they were just a couple of months away from receiving tax documentation for their ticket sales or other payments received. And it’s worth noting that this had already been delayed once. The new reporting rule was originally set to begin in 2022.

Now, the IRS has confirmed that the implementation of the new rule will be delayed, with the $600 reporting requirement not going into effect until 2025. Here’s what will happen over the next three years:

2023: The reporting requirement will only apply to the sale of goods or services involving over 200 transactions and more than $20,000. This is the threshold that has been in place for years.2024: The reporting threshold will fall to $5,000 to help phase in the new rule.2025: The $600 reporting threshold will take effect. Any payments for goods and services over this amount will trigger a 1099-K tax form.

There are a few reasons for the delay. One big reason is that it is difficult to determine which transactions should count. Clearly, if you sell a product you made or are running a ticket resale business, it should count on your business tax return. And on the other hand, if you receive a birthday gift, it shouldn’t. But there’s a lot of middle ground.

Let’s say that you buy a new refrigerator and decide to sell your old one (which wouldn’t be taxable, since you’re likely selling it for less than you originally paid). And it’s situations like this where the IRS doesn’t want to unnecessarily complicate taxpayers’ documentation.

Will the $600 threshold actually happen in 2025?

As a final thought, it’s important to mention that there’s no guarantee that the full phase-in of the $600 reporting threshold will happen in 2025.

It’s difficult to overstate just how unpopular of a rule change this is among casual online sellers. While it would certainly allow the IRS to collect income tax from more people who sell goods and services online as a side business, it would also have the unintended consequences of creating tax headaches for people who simply sell a few of their event tickets or occasionally receive payments for selling items, but who are definitely not running a business.

The point is that the news of the rule’s delay is certainly a welcome announcement, but it’s also important to remember that there’s a lot that can happen between now and 2025, so it’s important for people who might be affected by the new reporting requirements to keep up with the latest developments.

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You might be surprised at how much of a difference the time of year makes when planning a Disney World vacation. Learn more here. 

Walt Disney World admission tickets use a variable pricing model, with one-day ticket prices ranging from $109 to $189, depending on the timing. When Disney World adopted this pricing model, it effectively eliminated the “slow season,” but it also created the ability for people with travel flexibility to save money on their Disney World vacations by going during the slow times.

Similarly, on-property Disney World hotels also tend to be less expensive during the same times when tickets are toward the low end of the range mentioned above. But when are the best times of year to take advantage of the lowest prices?

When is the cheapest time of year to go to Disney World?

You can browse ticket prices for specific days and lengths of stays on the Disney website, but for planning purposes, here are some guidelines to keep in mind.

If kids are out of school, Disney World is going to be expensive. This includes all of summer break, popular spring break weeks, winter break, as well as around holidays throughout the year where schools have three- and four-day weekends, such as Presidents’ Day.

Even when kids are not in school, the weather matters. Slow times are when it can get cold in Orlando (for the northern readers, yes, this happens) and times when there’s a possibility of a hurricane.

With that in mind, some of the best times to go to Disney World to save money on tickets and hotels are:

January, after kids are back in schoolFebruary, before Presidents’ Day weekendMay, until Memorial Day weekendThe second half of AugustAll of September, except for Labor Day weekendOctober, until schools start fall breaksThe period between Thanksgiving and winter breaks

Within all of these windows, weekdays (especially Monday through Wednesday) are typically the cheapest dates for both theme park tickets and hotels.

Note that these are just guidelines, and pricing can vary considerably within each of these periods. But if you’re looking to go to Disney World at a typically cheaper time of year, these time windows are a good place to start your search. It can also help to use the right credit card to pay for expenses on your trip.

Book early for maximum hotel savings

The hotel you choose, and when you choose to stay there, is likely to have just as much (or likely even more) of an impact on your total trip cost than the Disney World tickets themselves. As a frequent Disney traveler, I’ve seen differences of $250 or more per night at the same Disney hotel just a few weeks apart. Plus, Disney offers various hotel deals from time to time, so be sure to check Disney’s website, as these often have specific booking windows.

To be clear, you can save a ton of money by staying off property when you visit Disney World. I know this firsthand — I own a vacation rental about five miles from the resort and get average nightly rates roughly one-third of the typical mid-range Disney World hotel, and with much more space.

However, I completely understand that staying in a Disney hotel is part of the experience for many people. And if this is the case for you, it’s smart to book as early as possible. Not only do rates tend to be significantly cheaper the further out you are, but Disney hotels book up quickly — if you wait until a few months before your trip, you might miss out on getting to book any of the hotels in your price range.

Just one piece of the puzzle

There are other factors to consider other than maximizing your savings when planning a Disney World vacation, such as crowd levels, weather, how much school your kids will need to miss, etc.

Keep in mind that the cheaper times are cheaper for a reason. Take September for example. Not only is September (especially weekdays) one of the cheapest times to visit Disney World, but it’s also one of the best times to avoid crowds. The trade-off is that September in Orlando is hot and humid, it tends to rain for at least part of every day, and there’s a strong possibility that a hurricane could derail your plans.

The bottom line is that it’s entirely possible to time your Disney World trip to make it significantly cheaper than going over spring break or your next three-day weekend. But be sure you weigh all the pros and cons before you book at a particular time of year.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Flight cancellations can happen to anyone. Find out what happens when your flight is canceled and what you can do about it. 

When traveling, few things are worse than hearing your flight is canceled. But it happens, and it tends to happen more often around the holidays. Airports get much busier and bad weather is more common. Both of these issues increase the likelihood of flight cancellations.

While this is always inconvenient, it helps to know what happens next and what you can do when your flight is canceled. If you’re prepared, you’ll have an easier time navigating a stressful situation.

You’re entitled to a refund or getting rebooked on a new flight

If your flight is canceled for any reason, you’re entitled to a refund of the ticket price and any fees you paid. That’s a rule set by the U.S. Department of Transportation (DOT), and it also applies to nonrefundable tickets.

If you don’t want a refund, the airline is required to rebook you on a new flight at no additional cost. Depending on what’s available, that could be either later in the day or the next day.

Your new flight will normally be with the same airline. With some airlines, there may also be the option of getting rebooked on a flight with another airline at no additional cost. Budget carriers, including Southwest, don’t do this. But it can be an option with the following airlines:

Alaska AirlinesAmerican AirlinesDelta Air LinesHawaiian AirlinesJetBlueUnited Airlines

For long delays, airlines may provide a meal and hotel accommodations

Every U.S. airline has made service commitments with the DOT about what it’ll do for controllable cancellations. A controllable cancellation is one caused by the airline, such as an aircraft issue. Here’s what you can expect if there’s a long wait to get rebooked on a flight:

You’re entitled to a meal, cash for a meal, or a meal voucher when you need to wait three hours or more for a new flight. All U.S. airlines provide this.For overnight cancellations, all U.S. airlines except Frontier Airlines will provide you with complimentary hotel accommodations.If an airline sets you up with a hotel room, it will also provide complimentary ground transportation to and from the airport.

Airlines have only made these commitments for controllable cancellations. They don’t apply with uncontrollable cancellations, such as those caused by bad weather. The airline might still provide meals and hotels, and you can certainly ask. But it’s not guaranteed.

Travel insurance could cover costs the airline doesn’t

If you bought travel insurance for your trip, it will likely reimburse you for necessary expenses. For example, if you need to book a hotel and pay for a taxi to get there, you may be able to file a claim for that. Check the details of your travel insurance policy to see what’s covered and not covered.

Travel credit cards are a great way to get travel insurance. Many credit cards include complimentary travel protections, such as trip delay coverage that could reimburse you for expenses during an overnight cancellation. For credit card travel insurance to apply, you typically need to pay for the trip with the card that offers the coverage.

Make sure to get evidence for your insurance claim. Here’s what you’ll need:

Documentation of the issue: You can get this from the airline’s customer service or by taking a screenshot of your flight status showing it has been canceled.Receipts for your expenses: You’ll need a receipt for every expense you want to include in your claim.

What to do when your flight is canceled

When your flight is canceled, reach out to the airline to see what your options are. There are a few ways you can do this:

Go to the customer service counter at the airport. This is normally the easiest option, but there could be a long line depending on how many passengers have had their flights canceled.Call the airline’s customer service line. If there’s a long wait, try calling one of the airline’s international customer service lines. There probably won’t be nearly as many people calling, so you can get faster service. Representatives in other countries can still look up your reservation and get you on a new flight.Use the airline’s mobile app. It may have an alternative flight option available that you can select.

The first step is getting your canceled flight rebooked. Once you know when your new flight will depart, you can figure out your next steps. If it’s later that day, you may just need to wait around until then. Airport lounge access can come in handy in this situation.

If it’s not until the next day, then you’ll need a place to stay overnight. As mentioned earlier, the airline may set you up with a hotel room. Or, you may want to take matters into your own hands, especially if a lot of people are in the same situation. When there have been a large number of cancellations, airlines often have trouble finding accommodations for passengers. Some travelers have complained of being shuttled off to subpar hotels or even to hotels that didn’t have any rooms available.

You could book a hotel on your own, and then see if the airline or your travel insurance will reimburse you for it. If you bought travel insurance or have it through your credit card, this could be the most convenient option.

Flight cancellations are never fun, but knowing how to handle them makes a big difference. Make sure you know your rights as a passenger, take action to get your flight rebooked ASAP, and start gathering evidence if you’ll need to file a travel insurance claim.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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