Money Management

Looking for a new business idea? Read on to learn about five that solve everyday issues and can lead to high profits. [[{“value”:”

The first step in starting a business is ensuring there’s a demand. If no one needs what you’re selling, you won’t be in business very long. With that in mind, let’s look at five business ideas that solve everyday problems that many Americans face.

Note: Most of these business ideas have lower start-up costs. However, if you need funds to get started, consider taking out a business loan.

1. Meal prep and delivery service for special diets

Nearly 33 million Americans have some sort of food allergy. Cooking and prepping meals can be a challenge, especially for families with young children or who are caring for elderly relatives. You could help solve this problem by preparing and delivering meals that meet dietary restrictions, such as dairy-free, nut-free, gluten-free, or any combination of those restrictions.

Many states have cottage food laws that make it easier to start this type of business from your home. Or, you could rent a kitchen from a restaurant that is only open at dinner and prep meals in the mornings.

2. Home and outdoor decorating services

As the end of the year rolls around, home and outdoor decorating services are likely to be in high demand. A business that sets up outdoor holiday displays and takes them down at the end of the season could help people enjoy the holiday season without having to spend a whole weekend setting up decorations!

These services could be especially beneficial for families, older neighbors, or those who simply don’t have the time to decorate their home or yard. Starting the business before Halloween could give you a steady stream of customers who need help for Halloween, Thanksgiving, Hanukkah, Christmas, and New Year’s.

3. Freelance administrative support

Nearly half of U.S. workers freelance in some capacity. However, many freelancers and solopreneurs struggle with administrative tasks like invoicing, scheduling, or bookkeeping.

You could solve that issue by offering virtual administrative support for freelancers and small businesses who need help budgeting and managing day-to-day tasks. Using tools like customer relationship management software or document management platforms, you could likely streamline your process, making it easier to manage multiple clients and work remotely.

4. Waste reduction consulting for small businesses

As more large brands look for ways to reduce their plastic usage and overall waste, small businesses may be left behind. Offering a consulting service where you help smaller businesses reduce their waste could solve that challenge — and help the environment.

You could market your business by offering resources and information to help businesses take the first steps, then review their current practices and find more opportunities for them to reduce waste.

5. Personal finance coaching for millennials

According to the TIAA’s 2023 Institute-GFLEC Personal Finance Index, the average millennial can only answer 45% of basic financial literacy questions correctly. As a result, they may struggle with budgeting, investing, and saving for their future.

Starting a business that solves this problem could be profitable and help people. For example, you might offer advice, financial literacy resources, and tips for reaching their financial goals. Some coaches, like Tori Dunlap, write books, publish blogs, and host a podcast. You could go smaller by hosting paid webinars, offering one-on-one coaching, or starting a webinar.

These business ideas not only solve everyday challenges, but also have the potential to create a profitable business that helps people. By addressing common problems, you can tap into a market need and create sustainable business growth.

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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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Banks have already slashed CD rates, and further cuts are coming. Read on for a few better account options. [[{“value”:”

Savers were lucky enough to enjoy certificate of deposit (CD) rates at or near 5.00% APY for over a year. It was a small silver lining amid painfully high inflation. But now inflation is cooling, and those high CD rates are slowly starting to disappear.

It’s disappointing for those who were hoping to lock in a high rate for the long term, but you still have a lot of great options left. Here are three to consider right now.

1. High-yield savings accounts

High-yield savings accounts are also seeing rates fall, just like CDs. This could get worse over time. The Fed is likely to cut interest rates further, and since savings accounts have variable interest rates, they can rise or fall from month to month. This isn’t great news if you hope to secure a high rate.

But savings accounts have one significant advantage over other types of accounts: liquidity. If you want easy access to your cash, savings accounts are tough to beat. CDs impose early withdrawal penalties equal to several months of interest payments. And if you invest your emergency fund or short-term savings, there’s a chance you’ll have to sell at a loss to get the cash you need on time.

While there’s no way to know how much you could earn on your savings account over the next few years, you can at least lock in an above-average rate by going with a high-yield savings account from an online bank. Even amid the lowest points during the pandemic, these banks still offered around 0.30% APY, while many brick-and-mortar banks offered just 0.01%.

2. CDs

It’s still fine to invest in CDs if you want to secure a high interest rate right now. You probably won’t find 5.00% APYs, but there are still plenty offering rates between 4.00% and 4.50%. You might want to change your CD strategy, though.

While inflation was so high, short-term CDs had the highest rates. That’s not the norm. Now, we’re starting to see a return to the more traditional pattern where long-term CDs pay more in interest. Choosing a long-term CD now, even if the rate is still slightly lower than what short-term CDs are offering, could pay you more in interest overall.

Of course, you also have to consider how comfortable you are locking your money away. Short-term CDs might be a better fit if you don’t want to give up access to your cash for too long. You could also try building a CD ladder, where you spread your savings across several CDs with different term lengths. This helps you take advantage of higher rates on longer CDs while still giving you access to some of your cash periodically.

3. Brokerage or retirement accounts

Investing is the best way to grow your money over the long term. If you have cash you don’t plan to spend in the next five to seven years, it’s worth setting that money aside in a taxable brokerage account or retirement account. There is a risk of loss associated with this, but there’s also a good chance that you’ll increase your net worth over time.

Retirement accounts are a good option for most people because they offer valuable tax breaks. However, once you put money into a retirement account, you’ll generally face a 10% early withdrawal penalty if you try to take it out again before you reach age 59 1/2. There are also annual contribution limits on how much you can set aside in each type of retirement account.

Taxable brokerage accounts don’t have these limitations. You can invest as much as you want in whatever you want and withdraw the funds at any time. This makes them a good fit for people who want a little more flexibility. However, you won’t get the same tax breaks you would with a retirement account.

It’s also fine to spread your money between several of the account types mentioned here. Consider your priorities — liquidity or a high APY — and think about when you plan to use your cash to determine which accounts suit you best.

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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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Want to earn American Airlines miles faster? Don’t miss out on the many ways to earn bonus miles. Find out a few more ways to earn AAdvantage miles. [[{“value”:”

Earning miles when you fly is an excellent way to get rewarded for traveling. But that’s not the only way to earn miles with your preferred airline. If you’re an American Airlines flyer, the AAdvantage program offers plentiful ways to earn miles.

Many travelers join the AAdvantage program to earn miles so they can use their rewards to book flights. Airline loyalty programs like this can help you explore the world while keeping more money in your checking account. Here are a few ways to earn American Airlines miles.

1. Fly with American Airlines

Once enrolled in the AAdvantage program, American Airlines’ free loyalty program, you can earn miles when you fly on AA-operated flights. How much you earn varies by membership level.

As a basic AAdvantage member flying on a Basic Economy ticket on an American-Airlines-operated flight, you’ll earn 2 miles per $1. Meanwhile, you’ll earn 5 miles per $1 for other fares when flying on AA-operated flights.

But if you’ve achieved elite status with the airline, you’ll earn more miles thanks to mileage bonus benefits. Here’s a breakdown of how many miles you can earn by elite status tier:

2. Book hotels

American Airlines partners with select hotel brands. You can earn miles when you book hotel stays directly with them. You can earn miles when you book with the following hotel chains:

Hyatt Hotels and ResortsIHG Hotels and ResortsMarriott Hotels and Resorts

Another way to earn miles when reserving hotels is by booking your stays using the AAdvantage Hotels platform. This tool works similarly to other hotel-booking websites.

3. Book rental cars

If you occasionally or frequently rent cars for your trips, this one’s for you. You can earn miles when you book car rentals with Avis or Budget. You can earn this way by booking your reservations through the AAdvantage Cars portal. Plus, AAdvantage members can also save up to 35% off rental cars with these partners.

4. Use an American Airlines credit card

Another way to earn AAdvantage miles is by using American Airlines credit cards. The airline has several cobranded personal and business credit cards available. You can earn miles when you swipe your card for American Airlines flights, travel expenses, and other everyday costs.

Even better, many of these cards include useful perks that can improve your flying experience. Some examples include discounts on in-flight purchases, free checked bag benefits, and early boarding perks. Check out our list of the best American Airlines credit cards to learn more.

As an added note, airline credit cards are ideal for travelers who are loyal to one airline. But if you fly with various airlines, you can still earn travel rewards. Using one of the best travel rewards credit cards is an alternative way to earn rewards you can redeem for travel.

5. Use the American Airlines AAdvantage eShopping portal

If you’re a frequent online shopper, don’t miss out on the opportunity to boost your AAdvantage mileage collection. AAdvantage members can shop at their favorite retailers and earn bonus miles when using the American Airlines AAdvantage eShopping portal.

You can earn miles when shopping at over 1,200 participating stores. All you have to do is login to your AAdvantage account and activate deals, then shop as you normally would.

You can use the shopping portal website or download the American Airlines AAdvantage eShopping browser extension and shop directly on participating retailer’s websites. Each retailer will display how many miles you can earn for eligible purchases.

Some participating brands include Apple, Best Buy, Bose, Macy’s, Nike, Samsung, The Home Depot, Vitacost, and Ulta. Here’s how to earn AAdvantage miles when you shop online:

Sign in to your American Airlines AAdvantage account at aadvantageeshopping.com.Click “Shop Now” to activate offers.Shop as you normally do and pay with a credit card.Miles will be added to your AAdvantage account after you make an eligible purchase.

Get closer to your mileage goals

If you want to maximize the American Airlines miles you earn and get closer to your redemption goals, make some strategic moves. Take advantage of the opportunities highlighted above so you earn miles faster. Redeeming your AAdvantage miles for flights can help you travel more often without draining your wallet.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Best Buy. The Motley Fool recommends Hyatt Hotels, InterContinental Hotels Group Plc, and Marriott International. The Motley Fool has a disclosure policy.

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Interest rate cuts are here. Read on to learn more about one financial writer’s personal strategy and see whether it’s right for you. [[{“value”:”

The Federal Reserve kicked off 2024 by saying it would likely cut interest rates at some point during the year. On Sept. 18, the central bank finally made good on that guidance by cutting interest rates by half a percentage point.

Interest rate cuts are a mixed bag for consumers. On the plus side, borrowing should get cheaper. But since I don’t have a long-standing credit card balance and my only current loan, a mortgage, has a fixed rate, that won’t have an impact on me.

On the flipside, interest rate cuts will mean lower savings account and certificate of deposit (CD) rates. And that’s something that will affect me. In light of the Fed’s actions, I’m gearing up to make some financial changes. And you may want to do the same.

It’s time to think twice about CDs

As a financial writer, I’m well aware that the Fed’s September interest rate cut is likely to be the first of many. The Fed hiked interest rates in 2022 and 2023 in response to soaring inflation. Now that inflation has cooled, the Fed needs to reverse those rate hikes, which means we can expect a series of cuts in the coming year.

The Fed’s rate cuts won’t impact the CDs I already have. The nice thing about CD rates is that they’re guaranteed, so I don’t have to worry about earning less on that money in the coming months.

But I do have several CDs that are maturing late in 2024 or in 2025. I need to keep track of them carefully given where interest rates are most likely going.

This year, when the CDs I opened in 2023 matured, I renewed them because rates were still high. I’m not sure I’ll want to renew my current batch of CDs, so I’m setting calendar reminders for when they come due so I can decide what to do with that money. If I sit back and do nothing, my bank will roll those CDs into the same term at maturity. I may not want that unless rates surprise me.

What will I do with my CDs instead of renewing them? That depends. I opened some of those CDs to save for my oldest child’s college fund. I’ll need to decide if I’m comfortable investing that money given the limited time frame I’m working with. Initially, I may decide to keep that money — or at least some of it — parked in a savings account while I figure things out.

Keep tabs on your finances in the coming months

The Fed’s rate cuts could affect your finances in more ways than one. You need to keep track of those rate cuts and see how they might influence your decisions.

I have no plans to refinance my mortgage because I locked in a low rate when I refinanced in 2020. But if you signed your mortgage last year or earlier this year when rates were elevated, then it pays to keep up with what the Fed does. Future rate cuts could lead to lower mortgage rates, making a refinance feasible for you.

And if you have CDs maturing in the coming months, do what I’m doing and pay attention to those dates so you can decide what’s best for your money. It’s also a good time to see if you have extra money in savings you want to move into a CD before rates fall even further.

In fact, that’s one additional thing I’m contemplating doing before the end of the year. I’m not convinced I’ll open another CD because I have a fair amount of money tied up in CDs already. But it’s something I plan to put thought into before CDs become less attractive.

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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 is becoming increasingly vigilant about keeping non-members out. Here’s how this policy could extend to its website. [[{“value”:”

Costco is a unique store in that it charges a membership fee for entry. A basic Costco membership now costs $65 per year following a fee hike in September, while an Executive membership that gives you 2% cash back on your purchases costs $130.

But you don’t necessarily need a membership to shop at Costco. If you’re a non-member, you can access a store by going as a member’s guest. And anyone can place an order on Costco.com.

Granted, online orders are subject to a 5% surcharge for non-members. But if you only place orders on occasion, spending 5% more could still be cheaper than paying Costco’s membership fee. A 5% surcharge on a $200 order is only $10. Even if you place an order like this once every two months, you’re paying $60 in surcharges versus the $65 for a basic membership.

But in recent months, Costco has taken steps to crack down on non-member access to its stores. And that begs the question: Will Costco.com be next?

Why Costco wants you to buy a membership

The reason Costco wants more people to join is simple. The warehouse club giant brings in a huge amount of revenue from membership fees. It’s that same revenue that helps Costco offer its wide range of inventory at incredible prices.

Recently, Costco implemented some changes to encourage more people to join and keep non-members away. Not only did it make the decision to ban non-members from its food courts, but it also started installing membership card scanners near store entrances. This makes it even harder for non-members to sneak in.

So far, though, Costco has only cracked down on non-members in the context of its stores. But given this trend, it wouldn’t be inconceivable for the next step to be requiring Costco.com users to enter a membership ID number at checkout — and deny non-members access to the website.

As it is, certain items on Costco.com are designated as members-only. If you don’t have a membership, not only can you not order them, but you can’t even see the price they’re listed at.

But it wouldn’t be shocking for Costco to take things a step further and decide that its website is off limits to people who won’t pay the membership fee. This stance could encourage a lot more people to join, allowing Costco to grow its membership base.

Should you join Costco?

If you like the idea of getting access to Costco without restrictions but hate the idea of paying for a membership, you’ve got a conundrum on your hands. But here’s why it pays to take the leap and buy a membership.

Costco stands behind the memberships it sells. If you buy one and then feel like you’re not getting enough value out of it, you can cancel at any time for a full refund.

For this reason, it could make sense to pay the $65 for a basic membership and see how things go. Keep track of how often you visit Costco and how much money you save each month by shopping there. Then, after a few months, run the numbers.

If you’re visiting Costco once a month and saving $30 each time on groceries and household essentials compared to buying them at a supermarket or big-box store, then clearly, it makes sense to keep your membership. That’s because you might spend $65 a year to save $360.

But if, after a few months, you realize you’ve only been to Costco once and didn’t find many items you needed, then canceling for a refund could make sense. In this situation, though, you’re not out any money, so there’s no risk involved.

It’s too soon to know whether Costco will start limiting website access to members only. But it’s a possibility. You may want to prepare to join Costco and see how it goes. And you may be surprised at the many benefits a membership has to offer.

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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.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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Are you looking for tips to save more money? Making small changes can help. Here are some savings strategies I wish I made earlier. [[{“value”:”

I’ve always tried to save money, no matter what stage of life I was in. While I stashed away some money throughout my 20s, I neglected to maximize my savings. I’ve since learned more about finances and adjusted my money moves to be more successful. Want to learn from my mistakes? Find out which money-saving moves I wish I had made in my 20s.

1. I wish I had stashed my savings in a HYSA

While I had a savings account in my 20s, I ignored the annual percentage yield (APY). I opened a savings account with my local bank and kept my extra cash there. If I had researched and compared the APYs offered for various savings accounts, I would have opened a different bank account with a higher APY. Now, I keep my money in a high-yield savings account so I can earn more interest.

A high-yield savings account is similar to a traditional savings account. However, many of these accounts offer higher APYs — you can earn more interest while your extra cash sits in the bank. If you want to boost your savings account balance, keeping your savings in a high-yield savings account with a competitive APY is beneficial.

2. I wish I had automated my savings

In the past, I made manual contributions to my savings account whenever I noticed I had extra cash to move out of my checking account. It can be easy to forget if you make manual contributions. Life gets busy and other financial needs pop up.

While I couldn’t afford to save much in early adulthood, I would have benefited from automating my savings. Now, everything is automated. Every two weeks, money is transferred from my checking account to my high-yield savings account. This strategy ensures I don’t forget or fall behind on my goals. It’s easy and free to set up automatic contributions through your bank.

3. I wish I had made savings a must instead of a maybe

In addition to not automating my sayings, I didn’t prioritize saving money. I saw saving as something that would be wise to do, but in my eyes, it wasn’t necessary. I likely would have saved much more if I treated my savings contributions like a regular monthly bill.

Let’s imagine I could afford to save $50 per month and started saving when I was 20. If I had automated the savings process and treated my savings contributions like a must-pay bill, I would have saved $6,000 plus any interest I had earned in the bank by age 30.

If you can afford to save — even if it’s only $5 a week — make it a priority. Treat your savings goals the same way you treat your monthly rent or electric bill. Of course, always pay your housing expenses first. But if you have a few dollars left in your checking account, prioritize saving some of whatever money you have left over.

4. I wish I had organized my savings goals

Another mistake I made was keeping all of my savings in one collective pile. Doing this made it harder for me to save for multiple goals.

Now I keep my savings in a high-yield account that keeps my savings goals separate. My account allows savers to stay organized using a bucket system. I have a bucket for each savings goal. This organizational system helps me stay on track.

For example, I have a bucket for my emergency fund. I have another bucket for future vacations. I also have a bucket for upcoming, less frequent expected costs, like my annual car inspection and car insurance premiums, which I pay every six months. You may find tools like this help you save more money in the long run.

Is it time to rethink your savings strategy?

We all make mistakes. After all, we’re only human. As you boost your financial knowledge, don’t be afraid to adjust how you manage your money. Rethinking your savings strategy and making small changes like the ones highlighted above may help you reach your goals sooner.

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Click here to read our full review for free and apply in just 2 minutes.

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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