Money Management

Need to hire new summer employees ASAP? Read on for some tactics to employ. 

The fact that jobs are pretty abundant in today’s economy can be a challenge for small business owners. After all, when there’s a lot of opportunity, it can be tricky to find help.

In April, 45% of small business owners reported job openings that were hard to fill, according to a report by the National Federation of Independent Businesses. So if you’re struggling to find summertime help for your business, that’s not all that shocking.

But at this point, you may be growing increasingly desperate by the day — especially since we’re already in the thick of summer and things might only get busier and busier at your business by the week. If that’s the case, try employing these tactics to bring in some quick hires.

1. Make the offer a good one

You’d think college students in between semesters would jump at the chance to snag summertime work and use that income to pad their savings accounts. But unless your offer is really an enticing one, you may find that burned-out students would rather spend their summer at the beach or hanging out than bringing home a paycheck.

Take a look at your business banking records and see how much you can afford to pay. You may need to up your offer to draw in applicants.

And if you can’t pay more than a modest hourly wage, see if you can make up for it with flexible hours or freebies. For example, if you own a restaurant, you can offer summertime workers a free meal to eat onsite or bring home with every shift they clock in for.

2. Give your current employees a referral bonus

If you’re struggling with summertime hiring, you may need to enlist the help of your current team members. And they may be more likely to be of assistance if you make it worth their while.

Offer a referral bonus where existing workers get, say, $50 or $100 for every summertime hire they bring in. You may even want to offer a modest payday — say, $10 — for every applicant they bring in, even if those people don’t end up being a good fit.

3. Talk up the possibility of longer-term employment

There are no doubt plenty of recent college graduates who got their degrees about a month or so ago and need a job. But chances are, they’re looking for full-time, ongoing work — not just a summer gig.

If there’s a chance that your summertime roles will get extended to permanent ones, though, make that clear in your job listings and interviews. You may be more likely to draw the interest of newly minted college grads.

That said, don’t lie about the possibility of ongoing employment if it doesn’t really exist. That could ruin your reputation and hurt your chances of being able to hire help in the future. And frankly, it’s just not the right thing to do.

You’re probably not the only small business owner who’s having a hard time filling summertime roles. Employ these tips ASAP if business is picking up and you don’t have all the help you need to keep up with demand.

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Personal loans can be used for just about anything. Read on to see how you can score a lower interest rate on one. 

Some types of loans have a very specific use — for example, you can only use a mortgage loan to purchase a home. Personal loans are different, though, as you can use the proceeds from one to fund just about anything, be it a new small business or a kitchen remodel.

Personal loans are often easy to apply for, and if you get approved, you likely only need to wait a few days to receive your funds. But easy doesn’t necessarily translate to inexpensive. Here are four moves to make if you’re considering a personal loan — they can help you pay less in interest, saving you money overall.

1. Check your credit before a lender does

Most personal loans are unsecured, which means they aren’t tied to a piece of collateral. This means that having a solid credit score is even more crucial. And if you know your score, you can even look for lenders who are able to work with your specific credit profile, be it excellent, good, fair, or poor.

You can likely access your credit score through your bank’s website, or via one of your credit card issuers (many have a credit score tool that will give you an updated number every month). It’s also a good idea to get a copy of your credit report (free every week for the rest of the year), so you can dig deeper into what that three-digit number means. If you see delinquent accounts from many years ago that should have fallen off your credit report by now, or even errors (such as accounts that don’t belong to you at all), you can ask the credit bureaus to remove them, which will boost your score.

2. Improve your credit score, if you have time

If you have some time, you can work to increase your credit score before you take out a loan. For example, even just making payments to your credit card companies or mortgage lender (or other creditors) on time every month will improve your score, if you’ve struggled with late payments in the past. Your payment history makes up a whopping 35% of your FICO® Score, the biggest piece (which makes sense; creditors want to see that you can repay borrowed money on time and in full).

Another good move ahead of seeking a personal loan is to pay off some of your existing debt if possible. This will lower your credit utilization ratio, and also have a positive impact on your credit score.

3. Consider a cosigner — or a secured loan

If time is short, and you’re not able to do much to boost your credit score ahead of applying for a loan, you still have options (including applying with a lender who specializes in loans for bad credit). If you have a trusted friend or family member who has good credit and is willing to be a cosigner with you on the loan, you’ll likely qualify for a lower interest rate.

This is a very nice thing for someone to do for you, and you shouldn’t take it lightly — only apply for a loan with a cosigner if you are absolutely sure you can make the loan payments on time and in full. Otherwise, your cosigner will have to make the payments themselves or risk damage to their credit score.

Another option for those with lower credit scores is a secured personal loan. This is a type of loan where you put up collateral (such as the contents of your savings account, your business proceeds, or your car) to secure the loan. If you stop making payments, the lender has a way to recoup its losses. A secured loan may come with a lower interest rate as a result, as they are less risky for the lender.

4. Shop around — and avoid predatory lenders

The easiest way to save on your next personal loan is to shop around. Don’t go with the first lender you explore — search for others and collect a range of options to find the loan that will best work for you, both in terms of interest rate as well as loan payoff timeline and any additional fees. This likely won’t take as long as you might fear; online lenders in particular can typically tell you in just a few minutes whether you’ll be approved and what interest rate you can expect to pay.

Just be sure to steer clear of predatory lenders at all costs. Keep your eyes open in the process of finding a lender, and be sure to read all documents regarding your loan. Ask questions, and if the lender seems reluctant to answer them, do not sign on that dotted line. Find a new loan offered by a lender you can trust. And don’t consider borrowing from a payday lender, under any circumstances.

A personal loan can be a great way to borrow money for any purpose. Just be sure to shop around, boost your credit score if possible, and avoid predatory lenders to save money on your next loan.

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Traveling this summer? Read on to see how one specific type of credit card could really benefit you. 

Summer is a popular time to travel, and understandably so. Kids don’t have school, work schedules tend to be less demanding, and the weather is generally more cooperative, at least to a point.

In a recent survey, The Vacationer found that nearly 85% of Americans plan to travel this summer. And 42% plan to travel more this summer than last.

If you have similar plans, then it’ll help to have a great credit card to charge your expenses on. And you might specifically want to use a travel rewards credit card for these reasons.

1. You might save on air travel costs

Air travel has gotten expensive these days. And it’s not just because ticket prices are higher. It’s also that many airlines have taken to charging passengers for every little thing, from checked bags to snacks. Many travel reward credit cards, however, offer money-saving benefits like free checked bags and discounts on in-flight purchases, so using one could be a smart move.

As an example, JetBlue charges $35 for your first checked bag on a flight. If your credit card gets you out of that fee, you’ll save $35 on each leg of a journey with that airline.

2. You might enjoy airport lounge access

Flight delays are unfortunately quite common. So wouldn’t it be nice to get to relax in an airport lounge rather than have to sit at the gate while you wait for your plane to arrive? Many travel reward credit cards give you access to airport lounges so you can wait in comfort rather than in cramped quarters.

3. You might score even more cash back in the course of your travels

The more cash back you’re able to score on things like hotel stays, theme parks, and restaurant meals, the easier it might be to afford future travel. Many travel rewards cards offer extra cash back in key travel categories so you can keep racking that up with ease.

How to find the right travel rewards card for you

There are many types of travel reward credit cards out there, and finding the right one can be a challenge. One thing you’ll want to look at is annual fees. These are common among travel reward credit cards, but they also very often pay for themselves and then some.

However, you don’t necessarily need to choose a card with the most expensive fee. A card with, say, a $95 fee might easily meet your needs, in which case there’s no need to spend $250 unless you can easily justify the higher cost.

Also pay attention to sign-up bonuses if you’re looking at a new travel reward credit card. If you’re planning to use that card immediately to book a big trip, you might easily meet the spending threshold to snag a large number of miles, reward points, or cash back.

Finally, some travel reward credit cards offer added protection for lost luggage or other travel issues. Read the fine print carefully so you know what your card will and won’t cover you for.

Clearly, a lot of people are excited to get out and travel this summer. And the right credit card could make your next trip more affordable and reward you more generously for taking it.

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Paying off a personal loan early is a good idea under certain circumstances. Here’s when it’s worth it. 

A personal loan has a fixed repayment term, such as two years or five years or whatever you agreed upon with your lender when you first borrowed. But, you don’t necessarily have to pay off the loan on the schedule you set when you originally borrowed. You may have the option to repay your loan early by making extra payments over time or making a lump sum payment.

But, is it a good idea to repay your personal loan debt ahead of schedule? To help you decide if this makes sense for you, consider these key issues.

What is the interest rate on your personal loan compared to other debt you may have?

The first thing you need to think about is what interest rate you are paying on your personal loan versus on other debt you may have.

The Federal Reserve reports the average credit card interest rate is 20.09%, while the average personal loan rate is 11.48%. It makes no sense to pay off a personal loan early if it is at a lower rate than any other loans you have. Instead, focus on paying off your more expensive loans first and only after that is done should you switch to making extra payments on your personal loan.

Could you earn a higher rate of return by doing something else with your money?

The next big question to think about, if you have no other costlier debts, is what your ROI is on early payoff of your personal loan versus what ROI you could earn if you did something else with your money.

If you put your funds into a brokerage account and invested in an S&P 500 index fund, you could reasonably expect to earn 10% average annual returns over the long term, before inflation. If the interest rate on your personal loan is around that amount or higher, then you would get a better ROI by eliminating your interest costs. Early loan payoff would likely be the best option for your spare cash.

But if you have a personal loan at a pretty low rate — like 5% or 6% — then your net worth would likely end up higher if you kept making minimum payments on your personal loan only and put the extra money into the market instead.

How motivated are you to pay off your loan ahead of schedule?

You’ll also have to think about your motivations when you decide if you should pay off your personal loan ahead of schedule.

If you are passionate about getting rid of that debt and are willing to cut spending dramatically or increase your work hours to pay it off, then you should likely do that. You may not be willing to make these extra sacrifices to do other things with your money, and getting rid of the debt is going to leave you better off than if you spent the money instead because you weren’t as excited about other goals.

Is there a prepayment penalty?

Finally, you’ll need to consider whether your lender is going to charge you a prepayment penalty. If you incur a fee to pay off your loan early, then this could negate most or all of the interest you save. Prepayment may not be worth it.

By considering all these issues, you can decide if paying off a personal loan early by making extra payments is right for you, or whether your hard-earned funds should instead be used for other goals.

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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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A direct 401(k) rollover is generally your best bet for moving money into a new retirement plan. Read on to see why. 

There may come a point when you decide that it’s time to leave your job and move on to another one. And there are some key items you’ll need to address in that scenario.

First, you’ll need to make sure you’re eligible for health coverage at your new job right away, or otherwise figure out what you’ll do for health insurance during that transition. You’ll also need to check your overall benefits package to see if it makes sense to sign up for perks like a health savings account.

Another item you’ll need to tackle is your retirement plan. If you have money in a 401(k) and you’re leaving your job for a new one, it’s generally a good idea to move that money into a new retirement account rather than leave it where it is. And if your new job offers its own 401(k) that you’re eligible for immediately, doing a direct rollover could be a good bet.

How a direct 401(k) rollover works

With a direct 401(k) rollover, the money in your old 401(k) is transferred directly into your new 401(k). You can also do a direct rollover from a 401(k) into an IRA. This is a good option to look at if your new employer doesn’t have a 401(k) or you’re not eligible to participate in it right away.

But not all 401(k) rollovers are direct, and sometimes, even if you ask for one, you’ll be told that your only option is to do an indirect rollover. This is a less ideal route to take, because if you don’t follow the rules carefully, you could end up with a penalty on your hands.

With an indirect rollover, you receive a check for your old 401(k) balance. It’s then on you to deposit that money into another qualified retirement plan, such as a new 401(k) or an IRA. If you don’t get that money deposited within 60 days, it will be treated as a withdrawal from your 401(k). And that could be problematic if you’re not yet 59½. In that case, you’ll risk a 10% early withdrawal penalty.

Plus, if you’re moving funds from a traditional 401(k) to another traditional 401(k) or IRA, as opposed to a Roth IRA or 401(k) account, and you don’t deposit that money into your new plan in time, your withdrawal will be subject to taxes.

Are you better off not doing a rollover at all?

Generally speaking, it’s not a great idea to leave retirement funds in an old employer’s plan. Doing so could increase your chances of forgetting about that money, which you don’t want.

As such, a rollover is generally your best bet when you’re leaving a job, and if you can do a direct rollover, even better. That saves you the hassle of having to get involved in the process of moving your money over, not to mention the potential for a penalty if your transfer doesn’t get completed in time.

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Climate change is no longer a future problem — it is here now. Read on to learn the impact it’s having on homeowners. 

Uprooting your life and starting over isn’t an easy thing to do — I’ve been there. But what if the reason you needed to move wasn’t due to an exciting job or educational opportunity, but because your home and perhaps even life were in danger?

Almost a third (30%) of respondents to a survey by Forbes Home said that climate change was a reason to move last year, and based on the frequency and severity of natural disasters over the last few years, we can only expect the numbers to increase.

Climate migrants

There’s a term for people who are moving due to climate change: climate migrants. It is clear we can no longer pretend that climate change isn’t happening and that the U.S. isn’t being impacted. NOAA’s National Centers for Environmental Information (NCEI) tracks weather and climate disasters, and data shows they’re on the rise in both number and severity. As of June 8, 2023, there were already nine confirmed events that exceeded $1 billion in damage each, including flooding, severe storms, and a winter storm event.

Weather events contributing to climate migration aren’t limited to just one part of the country, either. Areas already prone to wildfires, droughts, hurricanes, tornadic storms, and winter storms are all particularly impacted by the continuing effects of climate change — meaning those living in the West, South, and in coastal areas are all more likely to be relocating.

Where are they moving to?

While there is nowhere in the U.S. that is completely immune to the effects of climate change, some regions are under less immediate threat. Planning Magazine (a publication of the American Planning Association) noted in 2021 that cities in the Midwest and Northeast are likely to receive many climate migrants, and people may move to the interior West (New Mexico, Utah, Nevada, and Idaho) as well.

However, income disparities have an impact on whether and where people relocate. Planning Magazine notes that just a year after Hurricane Katrina in 2005, only half of the residents who left returned to New Orleans. But two-thirds of those who did leave didn’t get very far — they lived in other parts of Louisiana and Texas. Those without the financial resources to leave a region altogether and get a mortgage loan elsewhere may find themselves sticking around, and could end up in harm’s way again.

How can homeowners cope with climate change?

If you own a home in an area already experiencing climate-change-heightened natural disasters, it’s likely you’re coping with problems like higher homeowners insurance rates. It’s worth taking the time to review your existing coverage and seeing if you need to increase it based on any extreme weather events your area is prone to experiencing.

You can also take specific steps to cope with different types of natural disasters. One of my colleagues recently wrote about ways to protect a home from wildfires — these include keeping your roof and gutters clean and maintaining 30 feet of defensible space around your home. Another offered tips for those who live in hurricane-prone areas, such as keeping trees trimmed and installing storm shutters and doors.

It’s also worth padding your emergency fund to give yourself some extra funds in case you need to evacuate or cover a homeowners insurance deductible in the event of damage to your home. Consider purchasing a home safe to keep important paperwork and a supply of cash at the ready.

I wish I could say that making these moves will be enough to protect you and your home from climate change and the increasingly severe natural disasters and weather events it will bring. But you may end up needing to relocate in the future. In the meantime, increase your homeowners insurance coverage as needed, put extra money aside, and know that you’re not alone — we’re all in this together.

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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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