Money Management

Want to start a business? See how to tackle four big obstacles in getting your new company off the ground. [[{“value”:”

So you’ve got a small business idea. No matter what kind of business you have, whether it’s a retail business, a consumer-facing product business, or a professional services business, whether you sell B2B (“business to business”) or D2C (“direct to consumers”), many new small business owners face some of the same hurdles along the way.

Let’s look at a few of the biggest challenges in starting a small business, and how you can solve these problems.

1. Forming an LLC or other legal business entity

If you want to make your business “official” in the eyes of the law, you need to form a limited liability company (LLC), S Corporation, or other legal business entity.

Forming a legal business entity can help you establish a separate identity for your company that is different from your personal identity and personal finances. It lets you get an Employer ID Number (tax identification number, like a Social Security number for your business). And it can help you save time (and money) at tax season, by making it easier to track your business expenses.

LLCs and other business entities are formed at the state level. You have to file official paperwork with your state government, often called “Articles of Incorporation” or “Articles of Formation,” depending on the state. If you want to form an LLC (or other legal business entity), you can do it yourself by contacting your state’s Office of the Secretary of State or other business regulatory filings agency.

You don’t have to hire a lawyer or an accountant to form an LLC for you. Some people like to pay for professional help to make sure the details are done correctly, but it’s not required. There are also LLC formation services that can help you, for a fee. CorpNet, Bizee, and LegalZoom are a few examples of online business formation services.

Disclosure: I used to do freelance writing projects for Bizee (formerly Incfile) and CorpNet.

2. Opening a business bank account

Once you’ve set up your LLC or other business entity and gotten an Employer ID Number from the federal government, you can open a business bank account. Getting a business checking account gives you a home base for your business finances, a dedicated place for your business revenue to go. Some of the best business checking accounts even pay interest. You can also apply for a business credit card to help pay bills and manage expenses for your business.

Opening a business bank account is generally not too hard, as long as you have an Employer ID Number for your business. That’s the big step that banks will need you to take, so your business has its own legal identity for tax purposes. And keep in mind that as a new business owner, you will likely have to personally guarantee any business credit card.

3. Getting a small business loan

Your business (being new) doesn’t have any established credit history of its own, and so this can make it difficult to get a small business loan. Many banks prefer to see a few years of revenue and tax returns before they will issue a conventional small business loan to your company.

Small Business Administration (SBA) loans are another option if you can’t get approved for a conventional bank small business loan, but the underwriting process can be slow. You also might consider non-bank alternative lenders (or “platform lenders”) that issue small business loans and lines of credit online, with fast underwriting and more immediate approvals if you qualify. But be aware that platform lenders might charge higher interest rates than a conventional bank business loan.

4. Marketing your business

Perhaps the most important challenge of starting a business is making sales, marketing the business, and finding customers. Even if you already have a strong product-market fit, even if you’re already seeing strong demand for what you sell, as the business owner, you need to make marketing and sales your full-time job.

Here are three key small business marketing concepts to keep in mind.

1. Keeping existing customers is cheaper than finding new customers

The cost of acquiring a new customer is often much higher than just keeping your existing customers happy. Repeat business and word-of-mouth referrals are priceless. If your current customer base loves your business, they will tell the world about you.

2. Automate your marketing — but keep the human touch

There are great marketing automation software tools that can help you send emails, track your customer relationships, manage social media, and more. But don’t outsource everything to software. Make it easy for customers to talk to a real person. Keep providing human-centered service that makes people feel appreciated.

3. Marketing is learning

The more you learn about your customers and your market, the better. What do people need now? What are people complaining about? What problems and “pain points” can your business solve? The faster you learn, the more you can sell.

Bottom line

Starting a business is one of the greatest adventures and most exciting 24-hour-a-day learning experiences in life. It’s not always easy, and sometimes it can be lonely and difficult and exhausting. But like any labor of love, the rewards you get out of it are (hopefully) worth the blood, sweat, and tears you put in.

And if your business succeeds, if you can find a market for your products or services, if you can create a sustainable base of recurring revenue…it’s one of the greatest feelings in the world. You’ll have one of the richest rewards of all: an independent, diversified source of income. And you’ll enjoy a freedom-filled way of life that no boss can take away from you.

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Wondering if airline elite status is still worth it? Take a look at five creative elite status perks we’d love to see. [[{“value”:”

There’s been a lot of debate in the airline industry and travel rewards credit card subculture about whether it’s still worth trying to get elite status with airlines. Your mileage may vary based on how often you fly and which airlines you prefer, and some frequent flyers might swear by the benefits of their favorite airline’s elite status program.

But as someone who’s trying to fly more often and who just recently got seriously invested in travel rewards credit cards, I’m a little underwhelmed by the benefits offered by most airline elite status programs. Yes, you get some powerful multipliers to earn more frequent flyer miles. And you get a free checked bag. But many airline elite status programs can be replicated with the right combination of travel rewards credit cards.

If airlines want people to get excited about elite status again, they need to raise their game. Start offering some more inspiring benefits! Here is a slightly fanciful (and hopefully humorous) list of airline elite status perks that I’d like to see.

1. Free automatic gate-checked bag

Many airline elite status programs offer a free checked bag (or multiple checked bags for higher tiers of status). But I don’t care. I don’t want to go to the baggage claim. I don’t want to run the risk of the airline losing my bag. Instead of a free checked bag, I’d rather have a free gate-checked bag.

With a gate-checked bag, you drop off your bag at the gate, the gate agent gives you a sticker with a barcode, and then you pick up your bag as soon as you step off the plane after landing. Simple! Elegant! Makes me feel like a VIP! I’d gate-check my bag every time if the airlines would let me. It’s right there when I get off the plane, it never gets lost, and it saves me room in the overhead bin.

2. Free row of economy-class seats on underbooked flights

Sometimes the best flight experiences of my life have been the cheapest — like when I booked a $570 basic economy roundtrip flight to Europe and ended up having an entire row to myself. I received very few frequent flyer miles and absolutely zero elite status points for this trip, but I didn’t care. I felt like I was beating the system!

Have you ever stretched out across an entire row of seats on a nearly empty international flight? Plenty of elbow room while eating your in-flight meal! It’s heavenly! Feels better than business class, and at a fraction of the price!

3. Truly good wifi on the plane

Airline elite status should give you a dedicated wifi hotspot or some kind of secret, super-fast bonus wifi network — at the airport and in the air — that actually works. On a recent trip, I got so frustrated with the airport wifi and the on-board wifi. Neither worked consistently, even though I was paying extra for the premium version. How much do I have to pay to actually get good wifi on a flight? I’ll pay whatever it takes!

4. Be the last one to board the plane

Many airline elite status programs try to make a big deal out of their priority boarding perks, like it’s some really special experience to stand in a slightly different line by the gate and be the first person on the plane. I guess it’s nice to be on the plane early so you can shove your bag into the overhead bin (unless you get a free automatic gate-checked bag, see No. 1 above).

But other than that, what’s the point of priority boarding? I don’t want to spend more time sitting on the plane. I don’t want an extra 30 minutes of being cramped and hot and having no legroom, while dozens of passengers creep by, almost bumping me in the face with their oversized carryon bags. I want to spend as little time waiting for takeoff as possible.

Elite status should let you be the LAST person on the plane. You should feel like, “this plane is waiting for me, and the moment I get onboard, it’s wheels up.” That’s a true feeling of “elite” status and power. Not being crumpled in a heap, waiting for everyone else, breathing jet fuel exhaust.

5. Free cockpit tours

Cockpits are cool, and elite status should give you permission to visit the flight deck sometime. Like, airlines should offer special behind-the-scenes tours for elite status passengers. Whatever the FAA will allow. I’m not trying to interfere with the flight crew or cause problems in-flight. No pressure, airlines!

Bottom line

Airline elite status can offer some valuable benefits, like free upgrades to business class and powerful multipliers to help you earn frequent flyer miles faster. But some of the other elite status perks feel pretty humdrum. Airlines should spice up their elite status programs with some creativity and fun!

Thankfully, the best travel rewards credit cards can help you get most of the perks of elite airline status without having to sit through dozens of flights. If you want to enhance your travel experience, check out the best airline credit cards. Many airlines and their bank partners offer credit cards that give you special perks like a free checked bag, airport lounge access, and more.

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CD rates have been exceptionally high over the last year, but they’re beginning to come down. Here’s what to know if you’re thinking about opening one. [[{“value”:”

The Federal Reserve raised the federal funds rate a whopping 11 times between March 2022 and July 2023. It’s made it much more expensive for banks to borrow money from one another and they pass that buck along to consumers, which is why loans have looked unappealing for a long time now.

If there’s been one bright spot, it’s been that banking products, like certificates of deposit (CDs), have offered much higher interest rates, especially over the last year. However, rates started to dip back in January 2024, and they’re not showing signs of recovery. Some see this as their last chance to lock in a 5.00% APY before CD rates like these disappear, but there are a few things you should know before you do that.

Which CDs offer the best rates right now?

CD interest rates vary quite a bit depending on the bank and term you’re looking at. Generally, long-term CDs — those with term lengths of 12 months or more — have the highest interest rates. But that’s not what we’re seeing right now.

Currently, the best 1-year CD rates are right around 5.00% while the best 5-year CD rates are closer to 4.00%. This is because short-term CD rates are quicker to change due to things like a Fed rate hike. Long-term CD rates are based on longer-term estimates of what interest rates will do. Since they’re expected to drop soon, banks are less willing to offer their top rates on these accounts.

This leaves consumers interested in CDs in a curious spot. They could go after the highest rates, but they won’t earn them for very long. Or they could settle for a lower rate, which they could lock in for longer.

The right move for you depends on a couple of factors. The first is how long you can stand to part with your money. Though you’re technically free to withdraw cash from a CD at any time, an early withdrawal leads to a penalty — usually several months of interest payments. It’s best to avoid this when you can. So you don’t want to open a long-term CD if you expect to spend those funds in a year or two. In that case, a short-term CD is the way to go.

If you don’t need your money anytime soon, a longer-term CD could be the smarter move in this rate environment. Imagine you have $5,000 to invest in a CD. You could put it in a 1-year CD with a 5.00% APY or a 5-year CD with a 4.00% APY. The 1-year CD would make you $250, bringing your total balance to $5,250. But the 5-year CD would make you $1,083.26, leaving you with over $6,000 at the end of the CD term.

It’s a bigger payout, but it leaves your money tied up for a lot longer. Because of this, opening a single CD is rarely your best bet.

How to grow your cash while keeping it accessible

A high-yield savings account is a great alternative to a CD if you’re uncomfortable locking your money away where you can’t access it. These accounts enable you to withdraw your funds at any time. There’s usually no penalty, though some banks may charge you a fee if you make too many withdrawals per statement cycle.

The best high-yield savings accounts currently have APYs close to 5.00%, putting them on par with the best CD rates. But the savings account rates aren’t locked in. As bank account rates continue to fall, high-yield savings accounts will make less. But for many, the ease of access makes this an acceptable tradeoff.

If you’re determined to open a CD, though, you might prefer a CD ladder instead of putting all your cash in one account. A CD ladder is where you open multiple CDs of different lengths and put an equal amount of money in each. A classic example is a 1-, 2-, 3-, 4- and 5-year CD ladder.

When the 1-year CD term ends, you can spend it, move that cash somewhere else, or stick it in a new 5-year CD. Then, you do the same thing with the 2-year CD, and so on. This gives you access to a portion of your savings every year while still enabling you to earn the higher rates that long-term CDs typically offer.

It’s worth weighing all your options before deciding where to put your cash. Spending a few hours or a few days to explore the rates on some top savings accounts and CDs isn’t going to cost you a ton in lost interest, even if rates drop a little in the meantime. Take your time and make sure you’re comfortable with your decision.

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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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How to Fly Business Class to France for Free [[{“value”:”

Who hasn’t dreamed of meandering from cheese shop to bakery to patisserie as they make their way through the French countryside? Or perhaps you’re more interested in the wineries or fashion. Whatever the case, you can have that French vacation of a lifetime without spending a lifetime’s worth of earnings on it.

Indeed, with the right travel rewards cards, you can easily fly to Paris — in business class! — for free, or very nearly so. Here are a few ways to make it happen.

Credit card issuer travel portals

If you want the simple and quick method, simply collect your credit card rewards then use them in your issuer’s travel portal. This works for any of the four major programs:

American Express Membership RewardsCapital One Venture RewardsChase Ultimate RewardsCiti ThankYou Rewards

You’ll generally get about $0.01 per point this way (some specific cards may offer more), and you can use your rewards to cover everything down to the fees.

If you want to get more value out of your points, however, I suggest transferring them to a useful airline partner program. This way, you can turn them into frequent flyer miles and book your flights directly with the airlines. Here are some worth checking out.

United Airlines MileagePlus miles

You’ll spend the least amount of cash booking through United. Its website showed decent award availability early next year, and so-so availability later this year, for business class to France from eastern U.S. hubs. The best deals I found cost 88,000 United miles, plus $12.50 to $24.40 in fees. These flights were through Turkish Airlines or TAP Portugal, respectively.

Earning United miles

You’re a little more limited with United miles than other currencies on the list, mostly because Chase is the only transfer partner. However, there are also multiple United cobranded airline cards that can help you speed up your miles accrual.

Air Canada Aeroplan points

Although not the first place you might think of, you can get some pretty decent deals booking through Air Canada’s Aeroplan program. I found flights from the east coast of the U.S. to Paris for just 70,000 Aeroplan points plus $104 CAD (around $74.62 USD) in fees. Flights are via Swiss International Airlines and Air Baltic.

Earning Air Canada points

Both Amex Membership Rewards and Capital One Venture miles will transfer 1:1 to Air Canada (terms apply). There is also a Chase credit card cobranded with Aeroplan that earns Air Canada points.

AirFrance / KLM Flying Blue miles

France’s home team airline has plenty of availability from the eastern U.S. hubs to Paris, but you’re paying a little extra to fly d’un avion français. AirFrance award flights cost just 50,000 Flying Blue miles but charge you $202.60 in fees.

Earning AirFrance rewards

Arguably the best thing about Flying Blue is that you can transfer to it from all four major credit card travel programs at a 1:1 rate. Plus, it has a cobranded credit card with Bank of America. This makes it super duper easy to accrue plenty of Flying Blue miles.

AirFrance / KLM (via Virgin Atlantic)

Even though Flying Blue miles are easy to get, you may already have a stash of Virgin Atlantic points laying about. In that case, you can book the same AirFrance flights to Paris for 48,500 Virgin Atlantic points plus $276.80 in fees. If you need to top off your points, you can transfer to Virgin Atlantic through Amex, Chase, and Citi.

Who to avoid

Unless you have an irrational surplus of Delta SkyMiles, don’t even bother. The best award tickets I could find were a whopping 195,000 miles (plus $5.60) for business class.

What’s more, there are many routes where American Airlines proves to be a great place to find award space — but this isn’t one of them. Your low-points options to France are all on British Airways metal with layovers in the U.K.

Flying to, from, or through the U.K. on an award ticket generally means huge surcharges: I’m talking about more than $750 in surcharges in this case. So while the 57,000-mile price tag may be tempting, just say no to the extra fees.

If you do a bit of digging — and take advantage of a few airline alliances — you can find a lot of great ways to make it to France for (mostly) free. You’ll need to plan ahead, but that’s certainly a price worth paying for the trip (and meals!) of a lifetime.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends Bank of America, JPMorgan Chase, and XRP. The Motley Fool has a disclosure policy.

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CD rates are great right now, but today’s high yields won’t be available forever. Find out why I’m not jumping to invest before they disappear. [[{“value”:”

Many certificates of deposit (CDs) are currently offering rates above 5%. While you can still find tons of options out there if you’re looking to earn these competitive yields, you have a smaller selection than you did just a few months ago.

In fact, you had a choice of more than 3,900 CDs with rates equal to or above 5% in November of 2023 — but you were down to only around 3,000 by March of this year. That’s a pretty big decrease. And it’s likely this trend is going to continue for the foreseeable future because the Federal Reserve has strongly signaled it intends to lower interest rates as soon as inflation numbers look more sustainable. Most experts think that will happen this year.

Although there’s every reason to believe those very high yields will soon be a thing of the past, I’m not rushing into opening CDs. Here’s why.

1. There are still better long-term investments available

One of the biggest reasons I’m not jumping to buy CDs is because there are better investments out there. Specifically, I have a lot of money in S&P 500 funds, which provide average annual returns of 10% and have very low fees. I’m adding to those funds instead of opening a CD because I’d rather have the chance to get the better long-term rate.

Obviously, choosing a 10% investment over a 5% investment would be an easy decision if everything else about the investments was the same. That’s not the case, though. CDs present almost no risk, as they are FDIC-insured (although you do risk penalties if you must withdraw funds early). The S&P 500 presents some risk since it’s an investment in the stock market.

However, the chances of losing money in an S&P fund are very small if you have a long enough investing timeline. This investment (made up of stock shares in around 500 large U.S. companies) has some up years and some down years. But over time, its value is very consistent. So if you can invest for at least five years, your risk is minimal.

I’m a long way from retirement or other big long-term goals like paying for my kids’ college. And I already have an emergency fund and other savings accounts for short-term goals, so I can afford to put my extra cash into the market. There’s no reason to change that approach to get a CD, even if rates are higher than they’ve historically been. They’re still lower than what I can earn elsewhere.

If you have an investing timeline of five years or more, your money also belongs in the market instead of a CD. Don’t get swayed into accepting lower returns just because the CD rates are better than they’ve been in the past.

2. I don’t want to lock up money I might need

As I mentioned above, I do have some money in savings that I could theoretically move to a CD. The big benefit of that is I’d be able to lock in today’s competitive yields so if rates went down, I’d still get a guaranteed generous return.

Unfortunately, there’s an even bigger downside: I’d have to commit to leaving my money invested for the duration of the CD or face penalty fees. Since most of the money I have in savings is my emergency fund, my car repair fund, or money earmarked for upcoming vacations, I can’t afford to give up my access to it.

If you think you might need your money soon, don’t give it to a bank for months or even years, even if it’ll pay you 5% for doing it.

3. I don’t want to act because of FOMO

I’ve been really tempted to start buying CDs because there’s a lot of news emphasizing how great the current rates are. But just because this particular investment happens to be doing better than usual right now, that doesn’t mean it’s time to jump on the bandwagon.

You need to consider not whether CDs are a good buy right now, but whether they’re a good buy for you. If they aren’t, it doesn’t matter if rates are 5% or even higher. You shouldn’t buy them just because of fear of missing out on the opportunity if they don’t fit your goals and investing timeline.

4. No one can predict the future of CD rates

The last big reason I’m not rushing to act is because no one can say with certainty whether the 5% rates will disappear soon or not. Most experts predicted the Federal Reserve would lower rates multiple times in 2024; that hasn’t happened yet and may not happen any time soon because inflation is still higher than the central bank’s benchmark rate.

The fact that experts were wrong means they very well may be wrong about whether CD rates will go down in the coming months. Yields could stay above 5% for quite a while, so there may be no reason to rush. If I change my mind later, I may still be able to get a CD offering the same or better rates as those available now. And if I don’t, that’s OK, too — because my money is where it needs to be right now.

CDs may make sense for you if you have money to invest for five years or less that you definitely won’t need for a while. They could also be a good idea if you’re adding CDs to your portfolio because doing so is part of your overall investment strategy rather than just because rates happen to be high right now.

If that’s not the case, pass up on CDs and keep your money in savings or a brokerage account instead.

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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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High interest rates have led many Americans to buy CDs in recent years. Find out how they differ from savings accounts and if they might make sense for you. [[{“value”:”

Certificates of deposit (CDs) have been the financial equivalent of Taylor Swift in recent years. They are extremely popular — though a bit less glitzy. According to S&P Global, CD balances reached $2.87 trillion at the end of last year, up 68% from the year before. With some CDs paying APYs of over 5.00%, it isn’t hard to see why people are jumping on the CD bandwagon.

Even so, CDs won’t make sense for everybody — particularly as some high-yield savings accounts are also paying extremely tempting APYs. If you’re not sure which to choose, here are some questions to help you decide.

1. When will you need to access that money?

When choosing between a CD and a savings account, think about what you plan to do with that money. If you’re saving because, say, you want to make a down payment on a house in two years, that’s very different from money you might need to repair your car if it breaks down.

When you invest in CDs, you will tie your money up for a set amount of time. Whether you opt for a 3-month CD or a 10-year CD, you need to be confident you won’t need that cash until the period ends. There are often penalties for withdrawing your money early, which will eat into any interest you’ve earned. Check out our top CD rates.

In contrast, most savings accounts will let you withdraw cash when you need it. This makes a savings account an ideal place to park your emergency savings or other cash you might want to access at a moment’s notice. Check out our top high-yield savings accounts.

2. Do you want to lock in that interest rate?

The interest rates on savings accounts are variable. This means they can change at the drop of a hat. If the Fed drops interest rates, the APY on your savings account will likely follow suit. So while you might be able to get a 5.00% APY on a top savings account right now, there’s no telling how long that will last.

In contrast, most CDs offer fixed rates. If you open a CD today, you can lock in the current interest rate and know exactly how much you’ll earn. For example, if you put $5,000 into a 1-year CD that’s paying an APY of 5.00%, you’d earn $250 in interest, no matter what. Your rate won’t change, even if the Fed slashes interest rates or something unexpected happens in the wider economy.

Of course, if rates rise even further, you might find you’re stuck with a lower-than-market rate. One way to mitigate this risk is through CD laddering. This involves buying CDs of different lengths so they mature at different points. Not only does it give you more flexibility in terms of accessing your cash, it also reduces your risk in terms of rate fluctuations.

3. Have you checked the fees and minimum deposit requirements?

When comparing CDs and savings accounts, the common wisdom used to be that savings accounts charged a monthly fee and CDs had high minimum deposit requirements. But there are no hard-and-fast rules in today’s fast-changing bank environment. Banks are increasing APYs, reducing fees, and dropping minimum balance requirements so they can stand out from the competition.

When hunting for a place to park your cash, pay attention to fees and account minimums. But if you don’t have a sizable deposit, don’t assume you won’t be able to open a CD at an attractive rate. Generally speaking:

CDs are more likely to have minimum deposit requirements: Some — but not all — CDs ask for a sizable minimum deposit. The minimums on our CD rates page range from $0 to $2,500.Savings accounts may charge account fees: Some — but not all — savings accounts charge monthly fees, which is less likely with CDs. The majority of our top high-interest savings accounts do not require a minimum deposit. Some also pay a welcome bonus for new customers who meet certain requirements.

Key takeaway

High interest rates are good for savers, whatever vehicle you choose. Indeed, right now CDs and savings accounts are paying some of the highest APYs we’ve seen this century. In choosing between a CD and a savings account, think carefully about how long you want to lock your money up for, and how much access you may need.

CDs generally make more sense when:

You are comfortable with locking the money away for a set periodYou understand how CDs and CD laddering work

Savings accounts generally make more sense when:

You may need to access the money easilyYou are comfortable with a variable interest rate

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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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