Money Management

Don’t sweat it if you just turned 40 and have no savings. Here are some ways to improve your financial situation tremendously. 

A recent survey by SecureSave found that 67% of Americans could not cover an unplanned $400 expense by dipping into their personal cash reserves. So if you’ve reached your 40th birthday with virtually no money in a savings account, you’re probably in pretty good company.

Now, let’s be real for a minute. It’s not a wonderful thing to be 40 years old with very little money in the bank or set aside in a retirement savings plan like an IRA. At that point, it’s likely that you’ve been working for several years, so it’s unfortunate to have almost no savings to show for it.

But maybe you’ve never managed to command more than an average wage, which is why your savings haven’t been able to grow. Or maybe you’ve just been hit with different problems, like job loss and medical issues, that have made it difficult to grow your wealth.

The good news is that even if you’re 40 with virtually no savings, you can still manage to amass $1 million in your lifetime — and in time for retirement. But you need to be willing to prioritize your savings. And you might also need to step outside your comfort zone as an investor.

How to get back on track

If you’re a moderate or higher earner and are looking to build a $1 million nest egg, you’re apt to have an easier time doing it than someone who’s a lower earner. But if you’re in the habit of spending almost your entire paycheck month after month, then it almost doesn’t matter how much you earn. At the end of the day, you’re going to need to get on board with the idea of cutting some expenses and making your savings your priority.

So, let’s say you earn $60,000 a year. It’s probably not reasonable to assume you can start setting $2,500 a month aside in savings. That’s half of your income! But it may be possible to allocate $500 a month to savings, or $6,000 a year. That’s 10% of your income, which is far more reasonable.

Once you’re able to trim your spending to carve out that money for savings, your next step is to invest your money in a manner that generates solid growth. Stocks are generally your best bet in that regard.

You may be nervous to invest in stocks because they can be volatile. But long-term investors tend to come out ahead financially in the stock market, so that’s something important to keep in mind if you’re hesitant to buy stocks.

Over the past 50 years, the stock market has generated an average annual return of 10% before inflation, as measured by the S&P 500. So if you were to invest $500 a month at 10% over 30 years, you’d end up with about $1 million. And if you’re starting at age 40, that would put you at age 70, which is a reasonable age to retire at.

Now, let’s say you’re a higher earner making $100,000 a year. Parting with 10% of your income means saving $833 a month. If you were to do so and invest your money at an average annual 10% return, it would only take you around 25 to 26 years to reach the $1 million mark.

You’re not doomed

If you’re 40 years old without savings, the idea of ever having $1 million to your name might seem laughable. But it may be more attainable than expected.

Of course, cutting back on spending to free up money for savings and investing purposes isn’t an easy thing. And if you really don’t have expenses you can cut, you may need to resign yourself to working a side job to drum up the money.

The point, however, is that while 40 might seem old in the context of first starting to save and invest, it really isn’t. You might still have many years ahead of you before retirement rolls around. And if you’re able to commit to saving money and putting it to work in the stock market, you may be pleasantly surprised at how much wealth you’re able to grow over time.

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The government has grants available to small businesses, no matter what stage the business is in. Read on to learn more about them. 

Every year the federal government offers $500 billion in grants. This doesn’t include state and county governments, or local municipalities, which offer billions more. There are a plethora of grants available to small business owners that can help fund everything from expansion projects to hiring needs. Best of all, many of these grants are completely free. Here are five government grants available to small business owners and how you can apply for them.

1. National Institutes of Health Grants

The National Institutes of Health (NIH) is the largest public funder of biomedical research in the world, investing more than $32 billion a year to enhance life, and reduce illness and disability. There are currently thousands of grants available.

The NIH is currently providing grants for COVID-19 research to small businesses specializing in biomedical technology. These grants present unique opportunities for small businesses to develop and research the most cutting-edge COVID-19 solutions.

NIH Grant Application Guide

2. Small Business Innovation Research Program (SBIR)

Specifically designed for small businesses engaged in technology research and development, the SBIR program provides funding to help take innovative ideas to the next level. Eligible small businesses can receive up to $250,000 for Phase I, and $1.5 million for Phase II.

SBIR Application Process

3. Small Business Technology Transfer Program (STTR)

The STTR program is similar to the SBIR program; however, it requires the small business to have a formal collaboration with a nonprofit research institution. To qualify for STTR grants, you must operate a for-profit company, which cannot be majority owned by a venture capitalist firm, as well as meet other requirements.

STTR Application Process

4. Minority Business Development Agency Grant

If your small business is minority-owned, you may be eligible for a grant from the Minority Business Development Agency. The MBDA also offers loans, resources, and other consultative services for small businesses.

To get started, locate an MBDA Business Center, Specialty Center, or Project near you. You can search by MBDA Program Name, Program Type and/or State to apply.

5. State Trade Expansion Program (STEP)

Since its launch in 2011, the STEP grant program has been instrumental in assisting countless small businesses in securing grants and navigating the global marketplace. The program provides awards to U.S. states and territories, thus enabling small businesses to overcome obstacles to exporting by covering international market entry and expansion costs.

To apply, you must go through your local state or territory to find out how they can help you start or expand your business to reach global customers with the help of a STEP grant.

No matter what stage your small business is at, government grants can be an invaluable resource. Whether you’re looking to start a new business, expand your current business, create new jobs, or invest in research and development, there’s a grant out there that can help. Take some time to research the different grant programs available to small business owners, and be sure to carefully review the eligibility requirements and application process. With a little bit of effort, you could be on your way to unlocking the funding your small business needs to thrive.

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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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The age of your credit history is one factor that makes up your credit score. Learn how closing an older credit card account could impact your credit score. 

There may come a time when one of your credit cards no longer meets your needs. But before you cancel a credit card, consider how that choice could impact your credit score.

When you close a credit card that is in good standing, the account can remain on your credit report for several years. However, eventually it will be removed from your credit report. Closing the oldest credit card in your wallet could eventually result in a lower credit score. So instead of canceling the account, you may want to keep your first credit card account open.

The length of your credit history matters

In the United States, your credit score is viewed as an indicator of financial health, and it can significantly influence what lending opportunities are available to you. Several factors determine your FICO® Score. Knowing what factors affect it can help you make financial decisions that benefit your credit score.

Here are the factors that determine how your credit score is calculated and the percentage that each factor influences your score:

Payment history: 35%Credit utilization ratio: 30%Age of credit history: 15%Credit mix: 10%New credit inquiries: 10%

While not the most significant contributor to your credit score, the age of your credit history matters. This is averaged from the age of all your credit accounts. Additionally, the age of your newest credit account and the time since using each account is examined. In short, a lengthy credit history is a win for your financial health. That’s why if you still have your very first credit card in your wallet and are considering canceling it, you may want to reconsider that idea.

What to do if that credit card has an annual fee

You may be looking to close the account to avoid paying the yearly fee. There’s another option to consider, though. Instead of asking your credit card issuer to cancel the card, you might ask the issuer if you can downgrade the card or switch to a no annual fee credit card.

Doing this will save you money on extra fees, and the account will continue to show on your credit report. The main advantage to doing this is it can contribute to the age of your credit history. That’s why you shouldn’t be in a hurry to close an older credit card account if you can avoid it.

Don’t neglect your credit

It can be easy to ignore your credit as you navigate everyday life, especially when things get busy. But caring about your credit history is essential. You’re not alone if you have work to do to increase your credit score. Many Americans are in a similar situation. The good news is it’s possible to make progress.

Here’s why your credit matters: A good credit score can give you better financial opportunities, like the chance to qualify for a lower interest rate for a loan. A low credit score could make qualifying for more desirable financial opportunities difficult. A poor credit report can also impact other areas of your life, like making it challenging to get certain jobs or approval to rent a home or apartment.

As you make everyday financial decisions, don’t forget to consider how your choices will impact your credit. Using credit cards responsibly is one way to build credit and increase your credit score. Do you want to improve your financial health? Check out these free personal finance resources to learn more.

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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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Timing your grocery shopping right could actually save you money on your food bill. Here’s the best time to shop. 

Unless you’re one of those folks who eats out at every meal, groceries are going to make up a big part of your budget. Which means optimizing that grocery bill is a big part of smart personal finance.

Of course, between inflation, shrinkflation, greedflation — and all the other “flations” — getting your grocery bill under control is getting harder. But what if you could reduce your food costs simply by choosing the right day to shop?

While it may sound odd, there’s some method to the madness here. As it turns out, you really could save money on groceries by timing your shopping trip right. Here’s the best day to buy groceries.

In general: Wednesday

Overall, most sources agree that Wednesday is the best day to shop for groceries. For one thing, many grocery stores start their new sales week on Wednesday, so you’ll be the first to shop all of the latest deals and discounts.

Plus, the new sales day may mean you get twice the sales. Some stores may still offer the previous week’s sales, as well as the sales from the new week. This could give the best of both worlds as you get anything you missed from the previous week while stocking up on all the new deals.

Another point in Wednesday’s favor? It’s about as far from the weekend as you get. The majority of people do their shopping on the weekends, so stores will be less crowded in the middle of the week. This could give you better access to sales goods since you won’t be competing with everyone else.

Additionally, items that are close to their sell-by date are more likely to be discounted mid-week than on the weekends. That’s because things are more likely to sell without being discounted when the stores are full of weekend shoppers. So, you could potentially pick up some great deals on meat, dairy, and even bread.

Of course, it’s important to make sure you can actually put all these sale items to good use. If your discounted meat expires before you can use it, you actually wasted money, rather than saving any.

For you: New sales day

While it’s true that many grocery stores start their new sales on Wednesdays, it’s not a universal law. Your local grocery stores could start their new sales on any day of the week. (One of my local grocers starts sales on Thursdays, rather than Wednesdays, for instance.)

You should be able to check the dates on the sales flyers you can pick up in store. Or head online to see if they publish digital sales flyers to save yourself the trip.

Another time it may pay to switch up your shopping day is after major holidays. Many grocers actually run holiday sales through the weekend, then start new sales on Monday. In this case, you may be better off hitting the stores at the beginning of the week if you can.

Double up with grocery rewards cards

No matter which day you shop, there’s one sure way to save on groceries: credit cards. Make sure you use a grocery rewards credit card on your purchases, as you can find cards that offer up to 6% cash back on groceries. Even better, your card rewards will stack with any other coupons or discounts you use.

And speaking of coupons, there are a ton of great coupon and cash back apps that can help you save on groceries. Most will require you to submit pictures of your receipt, so keep that in mind. Not everyone is comfortable sharing their shopping habits to be sold by third-party companies.

The weekly grocery trip may be getting more expensive, but there are a lot of ways you can save. Whether it’s picking the perfect shopping day, using card rewards, or couponing your way to savings — or all three.

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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.Brittney Myers 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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