Money Management

Are you afraid to borrow money for your small business? See why you don’t need to fear small business loans. [[{“value”:”

Americans have a lot of misunderstandings about debt, especially when considering small business loans. Entrepreneurs tend to glamorize the idea of “bootstrapping” a small business, and doing it with minimal start-up cash. But sometimes small business loans can be the best thing to happen to your business.

It’s true that keeping expenses low and making aggressive moves to find reliable revenue are smart strategies for any new company. But many small business owners don’t realize how powerful it can be to borrow money — at the right time, for the right reasons, and with the right plan.

Small business loans are nothing to fear. They can be used to transform your business and level up your life.

Let’s look at a few truths of small business loans and how they can help your business.

1. Small business loan debt is a tool

Too often, Americans think that being in debt is some kind of moral failing or weakness. But debt is not inherently bad or good — debt is a tool.

It’s true that in your personal finances, there are some kinds of “bad debt.” If someone borrows at a high rate of interest for a depreciating asset like a car or everyday consumer goods, that is “bad debt.” Instead of helping you get ahead, having bad debt drags you down.

But small business loans help your company grow and invest in the future. Small business loans are often worth more than they cost, because they help your company become an appreciating asset — by creating a new product, reaching a new target market, or changing your business model for the better.

Business loans are also called “leverage” because the debt can create a “lever” effect to lift your business to a higher level. There’s a reason why so many big companies are always looking to borrow money — because borrowing money for businesses is often a good deal.

2. Small business loans don’t have to be too risky

When you borrow money in your personal life, whether it’s a home mortgage, an auto loan, or a credit card, the bank evaluates your creditworthiness to see how likely you are to repay the loan. Riskier borrowers have lower credit scores. And it can be financially risky to borrow too much for a house payment you can’t afford, a car that’s worth less than you owe on it, or credit card bills that you can’t afford to pay off each month.

Small business borrowing doesn’t have quite the same level of risk. Yes, you need to repay your small business loans, of course. Yes, your small business credit card application might get declined if you don’t have enough history of solid business revenue to show to the bank.

But with small business loans, you’re not just borrowing based on the value of a house or a FICO® Score. Your small business is bigger than you, and being a successful business owner can give you more borrowing power.

You can borrow based on your business’s track record of earning money. You can borrow against the value of your business equipment or other assets that your business owns. You can borrow based on a vision for the future that the borrowed money will help create.

3. Small business loans can be flexible

Small business loans don’t have to be a one-time deal, where you have to make a single high-stakes decision about how much to borrow, and then hope to get approved. One of the best ways to borrow for your small business is to apply for a small business line of credit. This is a flexible way to borrow as much or as little as your company needs from one month to the next, while working within a certain credit limit — kind of like a credit card or a home equity line of credit.

With flexible borrowing from a small business line of credit, your small business can ramp up or scale down your borrowing based on changing business needs, seasonality of demand in your industry, or other financial targets. And you can repay the borrowed money in a flexible way that suits your cash flow (while meeting minimum payment requirements).

Bottom line

Small business loans are nothing to fear — they can be an opportunity to elevate your business. If you want to invest in growth, buy new facilities, expand into new markets, launch new products, or hire more talent, small business loans can help serve as a bridge from your present day vision to a more prosperous future.

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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 deals at Costco only get better when you start to look at them compared to other stores. Check out what I’ve found today and how much you can save. [[{“value”:”

Of all the stores across the country, Costco may well be our favorite here at The Ascent, and because of that, we’re always looking out for great deals to tell you about. I’ve got some good news! Costco has just dropped six incredible deals that you definitely need to check out right now.

These are all items that fulfill a need, at substantial savings, many of which would make great Christmas gifts, or at least help you make your holidays brighter. Keep on reading to see the deals.

1. Pyrex 10-piece Ultimate Glass Food Storage Set: $39.99

If you’re looking for a big set of Pyrex glass storage, with glass lids, then you’ve come to the right place. This 10-piece set includes three round dishes and two rectangular dishes, each with an appropriately fit lid, in sizes ranging from two-cup to seven-cup, perfect for anything you need to put away.

Consider grabbing a set before Thanksgiving is upon us, and you can break it in for all your guests. It’s $39.99 through Oct. 31, 2024 at Costco, or $66.49 at Walmart, making it an amazing bargain all around.

If you’re looking to save even more on your Costco buys, apply for one of our favorite credit cards with big rewards for Costco shoppers. No one ever regretted getting more cash back.

2. Moen Laken Single Hole Bathroom Faucet: $64.99

If your bathroom is looking a little shabby and you’re ready for a glow-up, the Moen Laken single home bathroom faucet is on sale this month at Costco. For just $64.99, you can take home this single handled, classic faucet in either matte black or brushed nickel.

If you’re a fan of chrome like I am (mid-century bathroom for the win!), the chrome version is even cheaper at $59.99. All of these prices are good through Oct. 28, 2024.

Walmart also has these on offer in brushed nickel, but for $90. It’s a nice faucet from a great company, but there’s no reason you need to pay so much extra. They all work the same.

3. FoodSaver Vacuum Sealing System with Handheld Sealer Attachment: $74.99

One of the best things I ever bought myself was a FoodSaver vacuum sealing system. It was so handy for long-term food prep, especially for food I knew might be in the freezer for a while. Although there is a learning curve, once you get a feel for how it works, you’ll be amazed at how much money you can save by buying groceries in bulk and breaking them up for later.

Costco has a system right now for just $74.99 through Oct. 27, 2024. You’d pay $110.77 for the same model at Walmart.

4. LEGO Poinsettia and Christmas Tree Bundle: $79.99

For all you LEGO lovers, and all you Christmas lovers, LEGO has gone and mashed it up with a 608-piece poinsettia set and a 784 piece-Christmas tree set. Costco went further and bundled the two for even more savings.

The members-only price for this dynamic duo is $79.99, which is a huge discount over buying them separately directly from LEGO, where the Christmas tree set is $44.99 and the poinsettia set is $49.99, for a grand total of $94.98.

5. Oral-B Genius X Rechargeable Electric Toothbrush, 2-pack: $119.99

Brushing your teeth isn’t sexy, but it’s necessary, and when you have a tool like the Oral-B Genius X rechargeable electric toothbrush, it’s a lot more efficient, too. Costco currently carries it in a two-pack so you can share a Bluetooth tooth-brushing experience with your favorite person, for just $119.99 plus $7.99 shipping and handling if you choose to order it online. This price is good through Oct. 20, 2024.

Compare this to Walmart, which offers the same deal for $181.22, though the shipping is free.

6. Jackery Explorer 1500 + 2 100W SolarSaga Panels: $999.99

With all the recent chaos caused by hurricanes, there’s no time like today to get yourself a little more prepared for what could come. The Jackery Explorer 1500 is an electric power station that can provide up to 1800 watts of continuous power for up to seven devices. It’s not just a charging station, but can support small appliances with limited electrical needs, too.

This particular package comes with two 100 watt solar panels for recharging, which is handy if the power is out for hours or days. Costco currently has it for $999.99 through Oct. 31, 2024. That’s a pretty major savings over Lowe’s current limited-time deal of $1,199 (only good through Oct. 23). It’s regularly $1,799.00 there.

Looking for incredible deals? Look no further than Costco

Costco has some of the best deals on stuff you need, no matter what time of the year it is. From food storage to Christmas decor and even solar-powered electrical stations, there are so many opportunities to stretch your budget at Costco.

If Costco doesn’t have it, do you really even need it?

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

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Buying a home isn’t cheap. Read on to learn how to tell if you can actually fit homeownership into your budget. [[{“value”:”

The last few years haven’t been the best time to become a homeowner, thanks to a fine combination of higher home prices and higher mortgage rates. But thanks to the first (of likely multiple) Federal Reserve rate cuts, we could see mortgage rates continue falling. As of this writing, the average rate on a 30-year mortgage is 6.32% — part of a gradual lowering trend that has seen rates below 7%.

Now could be a good time for you to enter the fray and start house hunting — if you can afford to buy a house, that is. Here’s a good way to tell if your finances befit a homeowner.

Design a new budget

Ready to see if you can afford to become a homeowner? It’ll involve some math — sorry about that! Based on some research, figure out how much you can expect to spend every month if you buy a home.

Start by seeing how much you’re likely to pay for a home — check Zillow or Realtor.com to see what homes are listed for in your area. You’ll need to find out average home insurance costs (this may take some guesswork — or you can ask friends or family who live locally what they pay).

If you’re likely to buy a home in an HOA (homeowners association), see how much dues are expected to be. Check property taxes, too.

You’ll also need to check average mortgage rates to see what you might pay for one — so dig into mortgage lender websites to learn what they charge.

Want to save thousands on a home purchase? Shop around with some of our favorite mortgage lenders — different lenders have different rates, and you could potentially save thousands on interest costs by shopping around.

OK, what do I do with this information?

Now, take all this research and plug it into a mortgage calculator. You can find out whether this is doable for you by pretending you’re already a homeowner. Take the difference between what you pay for housing now and what you’d be looking to pay if you buy a home, and put it out of reach — like into a savings account.

If you’re still able to comfortably cover all your expenses and have breathing room after trying this for a few months, you’ll know that buying a home could be affordable for you.

But if you’re struggling, and too much of your income is going toward your housing costs (ideally, this figure should be less than 30% of what you earn), buying a home now might not be such a wise move.

How else can you get ready to buy a home?

We’ve already talked about setting a budget for homeownership and shopping for pre-approvals with multiple mortgage lenders. But buying a home is a huge financial undertaking, so here are a few more areas to focus on when you’re getting ready.

Work on your credit

Your credit score has a major impact on how much you’ll pay for a mortgage — the higher your score, the less risky of a borrower you’ll be in the eyes of mortgage lenders.

The minimum credit score for a conventional mortgage is 620 (government-backed loans have different requirements, and lender requirements also vary). If you haven’t checked in on your credit score in a while, now’s the time.

While you’re at it, get copies of your credit report for free from AnnualCreditReport.com. You’ll be able to see any issues bringing your score down, be they errors or old black marks that a mortgage lender might ask you about.

If your credit reports are riddled with errors (like a listing for a delinquent account that was never yours), you can have them removed by the credit bureau that issued the report.

Save, save, and save some more

Yes, you’ll need money for a down payment — and it’ll likely be the biggest piece of the pie as far as money is concerned. But it’s also a great idea to save money for closing costs, incidentals like appraisal and inspection fees, and of course your all-important emergency fund.

When you own the house, it’ll be on you to pay for repairs and maintenance, so having that emergency fund is a wise idea. Learn more about our favorite high-yield savings accounts for your emergency fund.

Get the right real estate agent in your corner

I owe a lot of my success in buying a home this year to my real estate agent. She’s been in the business for longer than I’ve been alive, and it was thanks to her connections that I learned my house was to be listed for sale the day before it happened. I viewed it the first day on the market, and my offer was accepted thanks to her savviness with escalation clauses.

You can find a great agent by reading online reviews and asking people you know in your local area. I found mine via a recommendation from friends who bought a home in our city several years ago.

In buying a home, as in all things money-related, knowledge is power. Once you see in real numbers how much your predictable homeownership costs will be, you’ll be much better equipped to achieve your goal of buying a home. Good luck out there!

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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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Costco’s bakery section is getting a shake-up. Read on to find out more. [[{“value”:”

I’ve been a loyal Costco shopper for 18 years. And for as long as I can remember, one of my favorite items to buy at the store has been the giant bakery muffins.

For the past five years or so, we’ve had a tradition in my house called “Muffin Saturdays” where my husband, kids, and I try to eat breakfast together and indulge in Costco muffins. Not only do we find them delicious, but we save so much money by buying our muffins from Costco instead of having to pay up at a local bakery.

But sadly, it looks like our beloved Costco muffins may not be available for much longer. Costco is rolling out a change to its muffins that’s already hit some markets. And this past week, when I stopped at the Costco bakery to pick up a cake I’d ordered, I asked if the change was coming to my local New Jersey store and was told yes.

Worse yet, I was warned the change would be happening soon. And if the change is coming to my market, it may be coming to yours, too. If you love the jumbo Costco muffins as much as I do, I suggest you stock up.

Not the best Costco news, but I’m trying to be optimistic

After hearing that my beloved jumbo Costco muffins may soon be no more, the first thing I did was go home and assess my freezer space to figure out how many I could buy and store before they’re discontinued. The next thing I did was research deep freezers — because I’m not above buying one for the express purpose of stashing away Costco muffins as long as I can.

Thankfully, my husband talked sense into me and made me realize that purchasing a second deep freezer (since we already have one) is ridiculous. He also encouraged me to keep an open mind, because the replacement muffins may end up being just as tasty as the ones I know and love.

I did a little digging, and it looks like Costco is replacing its six-packs of jumbo muffins with eight-packs of regular-sized muffins. It’s also getting rid of the current flavor lineup (which can vary by store) and introducing four new ones:

Triple ChocolateBlueberries and CreamLemon RaspberryButter Pecan

Now, since these haven’t hit my local store yet, I can’t tell you what they taste like. I also have mixed feelings about this new lineup. For one thing, will the Triple Chocolate differ from the current chocolate flavor my store has carried for years? That’s my kids’ favorite.

Also, I happen to love the current blueberry muffin recipe, but I’m not sure how I’ll feel about the new one. I’ll also be honest in that Lemon Raspberry doesn’t excite me. Butter Pecan could be interesting, but I doubt my kids will want to try it. And I’m not sure it’ll be worth it to buy an eight-pack for myself.

An even bigger question is what will become of the famed pumpkin streusel muffins (something I’ve been enjoying my share of this month)? Will Costco introduce a smaller version of it during fall? Or will that get discontinued, too?

A change that may or may not benefit you

Some Costco fans are applauding the store’s change to its iconic muffins and are happier with the idea of them being regular-sized. For me, the huge size was never an issue because I would either split them with my kids or freeze them.

The big question, of course, will be the new price. At my local store, 12 jumbo muffins cost $9.99. Clearly, Costco will have to charge less for eight muffins that are smaller. But the question is, how much less?

The good news is that for some people, this change could be a positive one financially, allowing them to enjoy more savings at Costco while reducing food waste. And if you use the right credit cards at Costco, you can save even more. Click here for a list of credit cards that reward Costco shoppers big time.

Costco’s store policy is to stand behind its products and guarantee customer satisfaction with each and every one. So if you try the new muffins and hate them, you can bring them back for a refund. Just make sure you’re bringing back at least 50% of the box.

On my end, I’m going to try to think positively. But I also plan to stock up on the jumbo muffins while they’re still around and cram as many of them into my freezer as possible.

I also plan to research copycat recipes to see if I can recreate my own versions once they’re gone. But sadly, given Costco’s ultra-low prices, this is one situation where I don’t think baking at home will save me any money.

Top credit card to use at Costco (and everywhere else!)

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Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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.

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The Federal Reserve’s next meeting is in a few weeks. Read on to learn why it’s important for CD investors to pay attention to what the Fed does. [[{“value”:”

Certificates of deposit are a great way to grow your money in the short term, with the protection of FDIC insurance. And unlike the APYs on high-yield savings accounts, your CD rate is locked in for the term — it won’t suddenly drop. But in exchange for this security, you give up the easy access to money you’d have in a savings account and must leave your money in place until the CD term is up.

Next month, we’ll see an event that all CD investors should stay tuned for — the next Federal Open Market Committee meeting. Here’s why this is important, and how you can capitalize on CDs.

FOMC — we meet again

Nov. 6-7 are the dates of the next Federal Open Market Committee (FOMC) meeting. The 12 members of this committee weigh economic factors to determine the federal monetary policy by raising and lowering the federal funds rate, which is the benchmark interest rate.

This is the rate banks use when they borrow money from each other, but it also influences consumer rates on borrowed money and deposit bank accounts. The FOMC made the first of its rate cuts at its September meeting, electing to shave half a percentage point off the federal funds rate. More rate cuts are expected in future meetings, including in November.

Why should this matter for CD investors?

CD rates are impacted by the federal funds rate. We’ve seen higher rates on shorter-term CDs (those with terms of 18 months or less) as of late thanks to a higher federal funds rate. The FOMC raised it 11 times between March 2022 and July 2023, in an attempt to bring down high inflation.

This move has worked. Inflation peaked at 9.1% in June 2022 (the highest rate in 40 years), and has now come back down. As of the most recent Consumer Price Index Summary, inflation stood at 2.4% in September 2024. So it’s time for the Fed to bring its benchmark rate back down.

This won’t impact current CD accounts, as the rates on those are locked in. We will see lower rates on new CD accounts, though. If you had opened a 1-year CD earlier this year, you might have enjoyed a rate around 5%.

But as of this writing, our favorite 1-year CDs all have rates under 5%. If you’re interested in opening CDs, it’s worth following the actions of the Federal Reserve to know where CD rates are heading.

Ready to open a CD? Dig into our coverage of the best CD rates to pick the term and rate that’s best for you.

A few tips for aspiring CD investors

Yes, rates on CDs have already fallen — but it’s not too late to get into the CD game. Here’s what to focus on.

Ensure a CD is right for you

CDs aren’t the best choice for every saver. Your emergency fund doesn’t belong in one, because you could need that money at any time. And money you’re saving for a far-off goal, like retirement, should be invested in a brokerage or retirement account.

CDs are good for money with a specific near-term goal, like a new car purchase in a year or college for your child in five years.

Find the best rate and term

Different banks offer different CD rates, so shop around. And make sure you zero in on the right target for your CD term — a 5-year CD isn’t the best fit if you’ll need the money sooner than that, because you don’t want to pay an early withdrawal penalty.

Consider a CD ladder

Hoping to benefit from guaranteed returns but unwilling to give up access to all your money for a long time? Build a CD ladder by opening different CDs of varying terms. As CD terms end, you can take that money out to use it or roll it into new CDs.

Individual banks set CD rates, not the Federal Reserve. But those banks follow the actions of the Fed to make their decisions — and so should you. If you’ve got your eye on CDs, pay attention in a few weeks when the FOMC meets again.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

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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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