Money Management

You won’t find the lowest prices on Costco.com. But you might save money shopping there. Read on to see why. [[{“value”:”

I do my shopping online whenever possible. If I need a birthday gift, I’d much rather find one on Amazon than go to an actual store full of people.

In fact, people are my least favorite thing about shopping at Costco — not the store employees themselves, but the crowds I have to work my way through to load up my cart with groceries. It’s for this reason that I strategically time my Costco shopping. I usually make a point to go during the week right when the store opens, and I refuse to set foot in a warehouse club store on a Saturday or Sunday.

Given my dislike of crowds, sometimes, I’m tempted to turn to Costco.com instead of shopping at the store. But there’s a downside to doing that — you’re going to pay more for the same items.

Costco generally builds the cost of shipping and handling into its online prices, so a given item that’s sold online and in stores will generally be cheaper when you buy it in person. And if you order same-day grocery delivery through Costco, you’ll definitely pay a lot more for an online order than you will in person.

But shopping on Costco.com might also save you money for a surprising reason. So you shouldn’t write off the idea of making some of your Costco purchases online.

Avoid the temptation to buy more stuff at Costco

Despite my dislike of crowds, shopping at Costco in person can be a fun experience for me — especially when the store is relatively empty, which sometimes happens. The problem, though, is that the more free I feel to roam the aisles, the more likely I am to buy items that weren’t on my shopping list originally. The result? A higher credit card bill.

It’s for this reason that you may end up saving money by shopping on Costco.com, despite paying a little bit more for your purchases. When you plug in a shopping list online, you might save by virtue of not adding more items to your cart the way you would at the store.

In fact, one big so-called perk of shopping at Costco is getting to enjoy the free samples. But I can’t tell you how many times those samples have led me to buy food I didn’t really need — and didn’t end up finishing after I brought it home.

I don’t shop at Costco.com that often. But when I do, I pretty much never make impulse purchases, whereas I buy extra things pretty often when I shop in person. You might have the same experience.

Be careful if you’re already in debt

Impulse buys — at Costco or elsewhere — can be harmful to your finances if you’re already juggling debt. During the fourth quarter of 2023, U.S. credit card balances reached a whopping $1.05 trillion, says TransUnion. So if you’re part of that number, it pays to do whatever you can not to add to your debt. And staying out of Costco could be a good way to do that.

To put it another way, let’s say you make a $15 Costco impulse purchase each time you go to the store. If you spend $110 at Costco.com on items that would’ve cost you $100 at the store, you’re still ahead by $5 — plus some savings by not using gas. So while shopping at Costco in person could save you money, if you commonly make in-store impulse purchases, then shopping online could make more sense.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

Proper accounting can help you reach your entrepreneurial goals. Read on to find out a few misconceptions about accounting. [[{“value”:”

New entrepreneurs are often optimistic — that trait helps them turn big ideas into something tangible. You may be launching a software business, opening a local ice cream parlor, or starting a consulting firm. No matter your entrepreneurial leanings, every new business venture will face financial hurdles. Unfortunately, blind optimism won’t be enough to pay the bills.

Here are a few accounting myths new entrepreneurs may believe and what you should believe instead.

1. “Accounting isn’t central to my business”

Managing your cash flow is one of the most important aspects of running your business. After all, if you don’t know where your money is going, how can you know how well the company is doing? You can’t.

That’s why accounting is so relevant to your small business. With it, you can track:

Which products are selling wellHow much money the business has for inventory spendingIf supply costs have increased since last quarterHow much payroll costs if you add another employee

How to bust the myth: Don’t assume you can do your accounting on the back of an envelope. Good accounting software isn’t expensive, so take advantage of it.

2. “It’s okay to think about accounting only occasionally”

Getting bogged down in accounting details can seem like a distraction. But without regularly tracking how much money your business is spending, your entrepreneurial vision could easily outlast the cash in your business account.

For this reason, don’t think about accounting as an occasional responsibility. Accounting is a lens for viewing how healthy your business is. If you don’t check in on your books regularly, you’ll likely miss upcoming bill payments, mismanage payroll schedules, or order inventory when you don’t have enough cash.

How to bust the myth: Carve out a time on your calendar each week to look at your business’s accounting details. Include a business partner or bookkeeper in the meeting to have a second set of eyes on how the business is doing.

3. “I don’t need a professional to help me”

I put this one on the list because I’m guilty of trying to go it alone. While I’m not an entrepreneur, I have run my own freelancing business for more than a decade. That has meant figuring out self-employment taxes, finding insurance coverage, and managing varying income streams.

While you may be able to do your own accounting for a while, here are a few examples of when to hand over the accounting reigns:

You don’t have any time to view your accountsYou ignore financial detailsYou don’t have a quarterly or annual financial planYou’re overwhelmed by learning to use accounting software

How to bust the myth: Don’t be afraid to hire a professional. Seeking their help isn’t giving up responsibility for your business; it’s hiring the right person for the right job.

4.​​ “I don’t need accounting software until tax time”

This accounting myth is a doozy because it can leave new entrepreneurs unprepared to pay taxes. If you ignore accounting and only examine your books when you’re about to do your taxes, you’ll likely be in for an unpleasant surprise.

I’ve been on both sides of this. I have to take out my self-employed taxes throughout the year and make quarterly tax payments to the IRS. While not complicated, there have been times when I managed the estimated taxes correctly — and other times when I didn’t. But estimating them incorrectly wasn’t the problem. It was ignoring the financial details that made tax time much more stressful than it needed to be.

How to bust the myth: Track expenses, potential tax deductions, and other tax-related items year round. Accounting and tax software options make this easy and help eliminate any surprises during tax time.

Set an accounting goal

Entrepreneurs are good at setting goals and working toward them. That’s a fantastic personality trait, and you could use it to your advantage in accounting. Do you want to improve your cash flow, plan for an upcoming business renovation, or save money for new equipment? Using accounting software or hiring a professional can help you get there.

The only option you don’t have is to ignore accounting and still expect to reach your financial goals.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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!

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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Flow. The Motley Fool has a disclosure policy.

“}]] Read More 

While CDs offer competitive rates right now, there are still better investments that I’d be more interested in. Learn more. [[{“value”:”

The best CD rates currently top 5.15%. That’s a pretty amazing rate considering you aren’t taking on much risk since the majority of CDs you’ll find are FDIC insured. It’s also unusually high, as a few short years ago, even the most competitive rates were in the 2.00% to 3.00% range.

Despite these great rates, I’m not interested in opening a CD. And you may not want to jump into investing in a CD either. Here are a few reasons why.

1. The stock market still offers a better shot at great returns

The biggest reason I’m not buying a CD right now is because I’d rather put my money into the stock market. I believe investing in the stock market will be a better financial choice over the long term. Historically, investors have earned much better rates by buying stocks than CDs.

The S&P 500 has been a great investment for long-term investors, since it has provided average annual returns of 10% over the past 50 years. That’s about double what the best CD rates currently offer (as of May 2024). I’d rather earn 10% than 5.15% on my money, especially since I don’t view the S&P 500 as being a very risky investment (although there are always some risks when putting money into stocks).

Since I have at least five years until I’ll rely on any of the money I’m saving and investing, I can afford to wait out downturns in the stock market that might happen, so there’s no reason to accept the lower rates CDs offer when this better opportunity is available.

2. I’d rather keep my short-term savings in a high-yield savings account

I’m also not interested in CDs because I don’t want to tie up my short-term savings in an account I can’t access easily.

CDs have terms, which are periods of time that you must keep your money invested and that your return is guaranteed. Terms typically range from a few months to five years. Even though 3-month CDs don’t require making much of a commitment, I still don’t want to give up flexibility with my short-term savings. After all, the reason this money isn’t in the stock market in the first place is because I might need it soon.

It’s not worth taking the chance of paying a penalty to remove my CD funds early when high-yield savings accounts are providing rates comparable with CDs right now. Of course, yields on savings accounts could decline if the Federal Reserve lowers interest rates. I won’t get the benefit of having my rate locked in for the term of a CD, as I would if I opted for that investment instead.

But, I don’t think the Federal Reserve is going to drop rates anytime soon, as the Fed won’t cut rates until more progress is made on lowering inflation.

More importantly, I don’t view my short-term savings as an investment. That’s the very reason why it isn’t in the market in the first place. I’m not trying to chase the highest possible rates with this money. Instead, my goal is to keep it ready when I need it.

3. CDs don’t offer the same tax benefits as T-bills

Finally, the last reason I won’t invest in CDs is because I’d prefer to opt for T-bills instead if I want a short-term investment.

T-bills provide similar yields to CDs, although they typically provide you a guarantee of that rate for a shorter time like 52 weeks or less. But, when you invest in T-bills, you benefit from favorable tax treatment. Interest is not subject to state or local taxes.

While CDs may seem tempting with the high rates today, the reality is there are still better choices you should consider instead. I prefer those other options, and you might too.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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!

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.

“}]] Read More 

Starting a new business is hard. Read on to find out which industries could make it easier. [[{“value”:”

Last year, more than 5.4 million new businesses were started, and over the past two years, the number of startups jumped higher than before the Great Recession for the first time ever.

Clearly, the entrepreneurial spirit is alive and well in the U.S.

However, the difficulties of starting a business are well known. Nearly half of all businesses fail within five years of launching. This means it’s all the more important for entrepreneurs to start businesses in industries that are primed for growth.

Here are five industries that are growing quickly, according to recent HubSpot research.

1. E-commerce is still expanding

While e-commerce has grown quickly over the past two decades, there are still many ways to enter this industry.

For example, you may want to start a drop-shipping business, sell jewelry on Etsy, or create an app to sell online. It’s easier than ever to set up a website and an online store, with e-commerce software like Shopify starting at just $20 monthly.

Global e-commerce sales are poised to grow from $5.7 trillion last year to more than $8 trillion by 2027. That massive projected growth means there is plenty of opportunity for entrepreneurs.

2. Content creators are cashing in

As a freelance writer who’s been creating content for different companies for more than 12 years, I can attest that there’s a market for it. This content can include articles, blog posts, marketing materials, or even social media influencer videos.

More than 60% of marketers work with content creators, making it potentially easy to find businesses that need this type of work.

Many people can also start a content creation business with little financial investment. This means you don’t need a large business bank account balance to get started.

3. Entrepreneurs are hearing wedding bells

Before the pandemic, an average of 2.8 million people got engaged yearly. While engagements significantly dropped during the pandemic, they are close to their pre-pandemic levels.

That’s created a huge opportunity for entrepreneurs to start a business hosting weddings, catering, taking wedding and engagement photos, or baking wedding cakes.

While pay varies depending on what wedding business you start and where you live, the national average income of a wedding DJ is $65/hour, while a wedding photographer earns an average of $48/hour.

4. Consulting is taking off

If you have years of experience in a given industry, you may be able to turn it into a consulting business. Many companies need experienced professionals to show them how to grow their business, and some will pay a hefty sum for the help — consultants can earn up to $300 per hour.

According to the Bureau of Labor Statistics, consulting is also growing fast, with the industry estimated to increase by 13.5% between 2021 and 2031. While you can be a consultant for nearly any industry, HubSpot notes that the most in-demand ones are in accounting, business, and professional services.

5. Digital marketing is on a roll

I’ve worked with organizations as a digital marketer and have noticed firsthand how companies need strategy and content for their events, brand materials, social media, and email newsletters.

If you have experience in marketing, advertising, or content creation, you can likely use it to launch a digital marketing company.

While some are worried about artificial intelligence’s impact on marketing, demand for this work is increasing. The Bureau of Labor Statistics says the industry will grow by 10% by 2026.

Choose your own adventure

I have a friend who once created an online calculator for teachers to grade their students’ work and another who designed and sold their own t-shirts. While they were different businesses, they have one thing in common: They both started with a passion from the people who launched them.

Even if you don’t see anything on this list that interests you, there’s likely a small business that fits your personality and experience.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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!

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.

“}]] Read More 

Flying business class has benefits that include more leg room and free drinks. But find out the surprising downside to paying for these upgraded seats. [[{“value”:”

With most airlines, flying business class gets you more comfortable seating, the option to check a bag for free, early or priority boarding, and other benefits. There are definite advantages to doing it, although of course it comes at a cost. Business class seats typically cost around three to four times as much as a seat in economy.

While there are plenty of advantages, there are also some downsides to consider. Here’s one surprising disadvantage that you may not have thought of.

Here’s one of the biggest unexpected downsides of flying business class

Business class travelers, by definition, spend more money on their tickets than their peers in the cheap seats. Since people who fly business class do pay a high price, it often makes sense for them to sign up for credit cards that are co-branded with airlines.

And this is where a big surprise downside of business class comes in. These credit cards typically offer great perks — but many of them are effectively useless if you’re already flying business class anyway.

See, cards that are co-branded with airlines often charge high annual fees, but provide generous perks that make travel more enjoyable. However, you’d get many of the included perks with a business class ticket anyway. For example, co-branded airline cards frequently offer:

Access to airline loungesPriority check-in and screeningA free first checked bagUpgrades from economy to business or first class seats

Business and first class tickets typically already come with priority boarding and free checked bags, though. Plus, you’re obviously already sitting in business class, so your seat can’t be upgraded. And if you’re traveling international first class, you also usually get to visit the airline lounge free of charge with your ticket.

Why is this such a disadvantage?

The redundancy in benefits offered by elite travel cards and business or first class seats is a big disadvantage because it can make elite travel cards less worthwhile for those who fly business class often — even though those cards would often offer those same travelers generous rewards for buying their expensive seats.

If a card has a $695 annual fee (or something close to that, as many elite travel cards do) and you can’t use half of the perks, it’s harder to make a case that the card is worth signing up for. At the same time, when you’re spending money for business or first class flights, it’s hard to argue against signing up for the card that’s going to offer the most bonus miles to reward you for your purchased ticket.

Essentially, you’re left deciding if you want to forego the very best credit card rewards programs or if you want to pay a big annual fee just to gain access to those programs — even though you can’t take full advantage of most of the benefits that help make those cards so worthwhile.

In the end, you’ll have to do the math and see if the card’s rewards that you actually will use are going to justify the card’s annual fee.

Sadly, even if you decide a card is still worth it, you’re stuck not taking advantage of the full perks you’re paying for that others get to enjoy. That’s a downside of always flying business class that you shouldn’t overlook.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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!

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.Christy Bieber 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.

“}]] Read More