While you aren’t likely to forget about the dress or the cake, there are plenty of big wedding expenses that can slip under the radar. This quick guide to the biggest wedding expenses includes key budgeting tips to help keep you on track.

Wedding location and getting there

Where will the new couple exchange their vows? And where will they wine and dine their guests, then dance the night away?

Set about 40% of your wedding budget aside for the site of the ceremony and reception venue, which is often the largest single wedding expense, averaging about $12,800 nationwide.

With a large wedding budget, you’ll have hundreds of wedding venues to choose from, including vineyards, museums, and historic ships, as well as the more traditional country clubs and hotel lounges.

But a unique wedding venue can be just as memorable, if not more so, while saving you some cash for other things. Popular venues that can cost less include backyards, private gardens, and national or state parks.

You’ll also need to organize transportation for the wedding party from the site of the nuptials to the reception. This often means hiring a limousine for the bride and groom and arranging shuttles for other members of the party and wedding guests.

A one-stop shop can save money on transportation and might include package deals on things like catering that can save you even more. Just be sure to ask about additional fees, such as insurance or clean-up, so you don’t get hit by surprises.

Flowers & decor

Flowers can make a real dent in your budget for wedding expenses, and you’ll have to set aside extra funds if you want a professional florist to arrange them at the venue.

Also, remember to factor in bouquets for the bride, bridesmaids, and flower girls. You can often save on these expenses by choosing flowers that are in season.

The expense for the rest of your decor will depend at least partly on the size of your wedding reception. Setting hand-carved candles on 100 wedding tables can add up fast.

Instead, consider something less expensive that could mean more to the happy couple. Hand-made centerpieces featuring photos from the couple’s courtship and travels are personal while making great conversation starters.

For a more traditional wedding look, be sure to set aside something extra for those specialty linens, flatware, and place tags. If you’re going for a vintage wedding theme, you’ll need to earmark even more.

If you’d rather go for something quick and easy, picking a pre-decorated wedding venue and reception site can reduce those decorating costs as well as saving time for other wedding preparations.

Music expense

Nothing says “wedding” like the traditional “Here Comes the Bride” tune that was a standard of church weddings for many years, but that’s the least of your music expenses.

Many modern couples choose a different song for the ceremony and may opt for pop or contemporary music at the wedding reception so guests can dance the evening away.

Budget money for music both during the ceremony and at the reception. The cost of a live band varies wildly, but if pricing bands isn’t going well, you can often reduce the cost to less than $1,000 by opting for a DJ instead.

If you’re using a wedding planner, they will usually have suggestions for quality music, whether a live band or a DJ. Just remember to include the cost of the wedding planner in your budget!

Photos and video for posterity

Most happy couples choose to pay a professional photographer to snap official pictures of the wedding party and the ceremony, but there are still plenty of decisions to make.

Before you start talking to potential photographers, decide whether you only want photos only of the wedding ceremony. You might also want snaps of a bride or groom’s day out with friends, a bachelor party, the rehearsal dinner, and the reception.

Expect to pay the photographer anywhere from $2,500 to $4,000 on average, depending on what you want and where you live. It’s a good idea to shop around for package deals.

Also, remember that a photographer is not the same thing as a videographer. If you want video of your wedding and/or the reception, that will add to the expense.

Dressing the part

Whether you opt for a traditional wedding — with a white, full-length bridal gown and a tux for the groom — or choose a more modern look, the clothing for your wedding party will account for a solid chunk of your wedding budget.

The sky’s the limit when it comes to the potential price of the wedding dress and veil, but a recent study found that the average bride spends $1,500 – $2,500.

No matter what you decide to spend on your own wedding-day garments, remember to include the cost of alterations in your budget.

If you’re also paying for the suits and dresses of the wedding party, remember to include them in the wedding budget, too. Renting tuxedos instead of buying them will lower the cost considerably.

And don’t forget the cost of the happy couple’s get-away outfits!

Food and drink

The wedding cake is the star of the show, but many couples offer their guests hors d’oeuvres and dinner as well, complete with beer, wine, spirits, champagne, and even after-dinner liqueurs.

If you’re having your reception catered, you’ll probably have a firm quote for the budget — typically around $85 per person.

Even if family and friends are putting your wedding dinner together, those ingredients, not to mention the drinks, are still going to cost money. Be sure to account for that in your overall wedding budget.

Finally, remember to include the cost of the rehearsal dinner in that food category!

Rings and things

The traditional words, “With this ring, I thee wed,” might bring sweet tears to your eyes, but you’ll avoid a few bitter ones over the cost of the wedding rings themselves by remembering to budget for them.

Of course, most couples pay attention to cost when choosing their rings, but they might not be thinking about the overall wedding budget at the time.

If you want your wedding rings to be separate from the rest of your budget, that’s perfectly fine. Just make it a conscious choice, not an oversight!

On the subject of small trinkets that mean a lot, wedding favors for your guests and your wedding party should also go into your budget — as well as printed wedding invitations and thank-you cards.

Good tips (literally)

The worst culprits in any budget are the small details that tend to slip through the cracks, and a wedding budget is no exception. Sales tax, tips for all the vendors, and service charges are often separate from gratuities and tend to be overlooked.

Keep a sharp eye out for the symbol “++” in the quote for your reception catering. That usually means sales tax and tips are not included. These charges can add as much as 30% to your total.

Anyone who isn’t their own boss will usually expect a tip for their wedding services. That includes waiters, florists, servers, bartenders, valets, coat-check attendants, photographers, makeup artists, hair stylists, shuttle and limo drivers, and cake deliverers.

Finally, take some time to think about your specific wedding and any reasonably foreseeable surprises.

If you’re renting a wedding or reception venue, ask about overtime charges in case things run late. If you’re having your wedding outdoors, understand the cost of any alternative venue you have lined up in case it rains.

With a little planning — okay, a lot of planning — you can have the wedding of your dreams at a price you can afford. Like any other financial planning, your wedding budget will pay off in the money you save, starting with a little splurging on your honeymoon!

Here’s what to know about money market accounts. 

What is a money market account and how does it work?

A money market account (MMA) is a type of deposit account, like a checking or savings account. Though technically classified as savings, MMAs combine features of both. 

You can open an MMA with many banks and credit unions. After setting the account up, you deposit your money and (usually) earn a higher interest rate than the institution’s non-MMA accounts. Some also issue debit cards or checks linked to the account so you can spend your savings. 

But MMAs have some important limitations. They might cap how many fee-free transfers you can make each month. So, while you can spend from your account, they may be best used for large or one-off expenses. Additionally, MMAs may set different balance minimums than checking or savings accounts. 

This combination of features can make MMAs an ideal place to stash short- to medium-term savings, like emergency funds. However, they’re not ideal for every situation.   

Money market accounts: Key features

Like all financial accounts, MMAs come with a unique set of features and considerations. Here are the main ones to know.  

High balance requirements

Some money market accounts set high minimum balance requirements — up to $5,000 or more! Even if you can open an account for less, your average balance may determine the interest rate according to tiers. (E.g., you might earn 3% on balances under $5,000 and 4% on balances over $5,000.) The best rates usually go to accounts that maintain at least $10,000 to $25,000. 

Insured savings

Similar to deposit accounts, money market accounts qualify for FDIC/NCUA insurance. The Federal Deposit Insurance Corporation (FDIC) protects traditional banks. The National Credit Union Alliance (NCUA) covers credit unions. Both types of institutions must insure customer deposits for at least $250,000. 

Importantly, this $250,000 limit applies to accounts in each account type, like joint vs. single accounts. If you have both a checking and savings account at one bank, these balances fall under the individual account type with a $250,000 total insurance limit. But if you own a third account with your spouse, that joint money has its own $250,000 limit. 

Limited withdrawals and transfers

MMAs may come with debit cards or checks linked to your account for easy access. However, as with savings accounts, money market accounts aren’t for everyday banking. 

Formerly, a federal law, Regulation D, limited you to six “convenient” transfers or withdrawals from savings and MMAs each month. Trying to move money more often resulted in extra fees or even account closure. (“Less convenient” transactions didn’t count toward this limit. These included ATM withdrawals, in-person bank transactions, or mail transfers.) 

This provision of Regulation D was suspended during Covid-19 and has not been reinstated. While some banks still follow the old rule, others now set higher limits. However, most MMAs still have strict monthly transfer limits due to their higher yields. So, be sure to read the fine print before opening an account! 

Money market accounts vs. savings accounts

Money market accounts are just one place to earn interest on your stashed cash. Savvy savers might also consider savings accounts and CDs. But before you choose, you should know the key differences:

• Savings accounts typically set the lowest interest rates and barriers to entry of the three. Most don’t issue debit cards or checks, making it easier to stick with your savings plan. High-yield savings accounts may offer higher interest rates than traditional savings accounts, often through online banks.
• Money market accounts historically offer better rates than traditional savings accounts. However, they may set higher opening or balance requirements. And while many issue debit cards or checks, your spending ability depends on banks’ monthly withdrawal limits. 
• Certificates of deposit (CDs) may offer higher interest rates with varying opening or balance requirements. However, they “lock” your money away for months or years while they accrue interest. Removing your funds early may result in financial penalties. 

	Regular savings accounts	Money market accounts	Certificate of deposit
Requires a large initial deposit
Offers the bank’s top interest rates
Possible limits to fee-free monthly transactions
May offer a debit card or checks
FDIC Insured
May charge a fee for early withdrawals
ATM access
Allows fund transfers between accounts

Another option for savvy savers

MMAs offer many benefits — but they’re still often subject to banks’ withdrawal limits and high minimum account balance requirements. If you’re in the market for a potentially more accessible high-yield account, consider a high-yield checking account. 

High-yield checking accounts typically boast several advantages, like:

• Free checking
• No minimum balance requirements
• The potential for interest rates that rival or beat MMAs

However, as with many high-yield accounts, banks may set conditions. 

For instance, they may require you to make a certain number of eligible debit card transactions each month. You may have to make regular deposits, enroll in online banking, and/or agree to receive electronic statements. 

Plus, many banks cap your interest rate based on your balance. For example, you may earn 5% on up to $15,000, but only 3% on any amount over that. 

Choose a savings account that fits you

There’s no universally “best” savings account, but some may fit your circumstances better than others. MMAs can be a good option if you want (limited) access to your savings for large purchases or emergencies. 

Alternatively, you may prefer the lower barriers to entry offered by regular savings or CDs, or the increased spending flexibility of a high-yield checking account.

This post walks through the most common types of fraud, how they work, and how to protect yourself.

Common types of fraud and scams

The concept of scams is nothing new, but the scams themselves change all the time. Fraudsters use clever ways to persuade people into thinking their lies are true. Here are several common types of fraud and scams to look out for. 

Identity theft

What is identity theft? 

Identity theft happens when someone impersonates you, often to access your financial accounts.  

Personal information like your Social Security number and birthdate might be stolen through data breaches, malware, or leaked data. If someone has access to your information, they might use it to take your money, open up credit cards in your name, file tax returns, or apply for insurance.

How can you prevent identity theft? 

Don’t share personal data with anyone unless you need to, especially if an unknown number calls to verify your personal information. Set up banking alerts, use two-factor authentication to secure your bank and email accounts, and regularly monitor your credit report for suspicious activity.

Phishing

What is phishing? 

Fraudsters use phishing to trick people into providing personal information. You may receive a link that goes to a fake website or downloads malicious software (malware). Malware on your phone or computer could leak sensitive information.  

Text: When phishing scammers reach out over text, it’s often to convince you that you need to act urgently on something. Ironically, these scams often warn that your personal information has been compromised.  

Email: Common email phishing attempts include a lie that you’ve missed a payment, need to update an account, or have won a free prize. The website address will likely mention a reputable institution. In reality, it’s a fake website that steals your banking information or prompts you to transfer money.

Social media: In some cases, clicking a link sent on social media may wind up giving them access to your account. Scammers will then demand a fee to hand your accounts back over. 

How can you prevent phishing scams? 

Don’t click on suspicious links – signs like generic “Hi Dear” greetings, odd grammar, and urgency are all red flags. Installing malware protection can also help prevent phishing attempts from crossing your path. 

Spear phishing

What is spear phishing? 

Spear phishing is a type of personalized phishing that fakes messages from seemingly legitimate sources. Email messages may appear to be from your employer and include a link that downloads malware onto your computer. 

How can you prevent spear phishing? 

To protect yourself against spear phishing scams, double check where suspicious messages come from. For instance, the email address may contain your boss’s name but not be the right email address. Don’t open email attachments or click on links unless you’re 100% sure they’re legitimate.  

Credit card fraud

What is credit card fraud? 

You’re a victim of credit card fraud if someone steals and uses your credit card information to buy things. It’s still one of the most common types of scams, according to the Federal Trade Commission (FTC). 

How can you prevent credit card fraud? 

To protect yourself against credit card fraud, examine your statements regularly to catch any purchases you didn’t make. You can also set up account alerts to flag large purchases. 

Romance scams

What are romance scams? 

Scammers pretend to be romantically interested in people online and convince them to send money. Romance scams can go on for years and lead to large losses. Typically, you can’t get the money back because the funds were transferred willingly. 

How can you prevent romance scams? 

The best way to prevent romance scams is to be cautious about romance that only happens online. Even if you meet them in person, romantic partners don’t need to know your financial details.

Fake check scams

What are fake check scams? 

Fake check scams occur when a fraudster sends you a check, but also asks you to send them money back. The check will bounce and leave you empty-handed. This type of fraud often happens during prize scams and job opportunity scams, which you can read about below.

How can you prevent fake check scams? 

In a fake check scam, the fraudster may ask you to send them money back with gift cards, money order, or cryptocurrency transfers. Never comply.

Prize scams

What are prize scams? 

Prize scams are a sneaky way for fraudsters to find out your personal information after pretending that you’ve won a sweepstakes or high-value item. This communication may happen via phone call, text, email, or snail mail. Once they get you to bite, you’ll need to provide personal information or make a payment before you can get your prize.  

How can you prevent prize scams?

Be wary of any type of communication that says you’ve won something but you’ll have to pay a fee in order to claim it. You also shouldn’t give personal information like your bank account number or credit card number in order to claim a prize. 

Job opportunity scams

What are job opportunity scams? 

Job opportunity scammers post jobs on legitimate platforms, so they can be tough to spot. Someone impersonating an employer may promise a job but ask you to first spend money or provide personal information. They may give you a fake check before asking you to purchase equipment or merchandise.

How can you prevent job opportunity scams? 

Look up the company the job is associated with. Try typing “scam” or “fraud” with the company name and check the results. Also, call the company using the phone number listed on its official website, not the job listing, to ask about the job.

Debt collection scams

What are debt collection scams? 

Debt collection scams are when someone calls or emails you, saying you have an unpaid bill. They’ll often threaten legal action or say you could be jailed if you don’t pay up.

How can you prevent debt collection scams? 

Keep tabs on your debt so you can verify whether someone is calling about real debt. Double-check your credit report to account for all debts. 

15 ways to protect yourself from fraud

It may seem like scammers never sleep. Thankfully, you can take steps to protect yourself so you don’t have to always actively be on guard. 

1. Use a password manager

A password manager stores your passwords securely, so you don’t have to remember them on your own. That way, you can pick more complex passwords that are harder to hack, without worrying you’ll forget them. 

2. Consider Credit Lock (via Experian)

Lenders that provide credit cards and loans need to see your credit report. To prevent identity theft, freeze access to your credit report for free with a credit lock. With this extra layer of security, scammers will have difficulty opening a new credit card or taking out a loan without your permission.      

3. Be wary of email attachments

Attachments might not be what they claim to be. Don’t click on them unless you’re expecting them and you’re absolutely sure where they came from.

4. Don’t click on links

If you don’t know who the sender is or notice that a web address seems unusual, don’t click the link! It may download malware onto your computer. 

5. Two-factor authentication

Passwords can be hacked. Have websites send you a text or email to confirm you’re the one logging into your account.

6. Shred private documents

Documents you no longer need may contain sensitive personal information, like your Social Security or bank account numbers. Don’t just throw them out — shred them and spread the pieces across different loads of trash. 

7. Set up alerts

Create alerts for activity that could be suspicious, like large purchases or changes to passwords and personal information. 

8. Secure personal information

Keep paper and electronic documentation secure and don’t share access. 

9. Use identity theft protection services

Identity theft protection companies can monitor your credit, alert you of suspicious activity, and possibly help recover lost money. If your data has been exposed in a data breach, you may be eligible for free identity theft monitoring.

10. Call to verify

If a person claims to be affiliated with a certain company, look up the company independently. Make sure the number you were given matches the one online, and call to verify the information you were given.

11. Use private WiFi

Bad actors can access your computer or cell phone if you join public WiFi. If you’re doing anything at all that involves personal information, don’t join the public WiFi to do it. 

12. Monitor your credit report

Checking your credit report regularly will help you find out if unauthorized accounts have been opened. You can access free weekly credit reports online from Equifax, Experian, and TransUnion.  

13. Update your contact information

Make sure your bank and government agencies like Social Security have the right contact information. Banks can get a hold of you if they notice suspicious activity, and you don’t want statements sent to the wrong address. 

14. Question everything

Don’t give in to pressure tactics to give information right away. Ask for a callback number, do independent research, and think carefully before taking actions that reveal your personal information to a third party. 

15. Follow fraud trends

Follow the Federal Trade Commission’s reports on the latest scamming trends so you know what to look out for. 

This article explores the various tax benefits of paying your kids from your business and how it can help reduce your overall tax burden. From saving on payroll taxes to shifting your income to a lower tax bracket, employing your children can be a wise financial move.

Shift your income to a lower tax bracket

When you pay your child from your business, you’re effectively shifting income from your higher tax bracket to your child’s lower tax bracket. Specifically, if your child is in a lower tax bracket than you, you can reduce income taxes using this strategy. While this technically increases the tax liability for your child, this strategy can effectively reduce the overall tax liability for your family as a whole.

Save on payroll taxes

If your business is a sole proprietorship or a partnership in which both partners are the child’s parents, you can save on payroll taxes. In this case, the child’s wages are exempt from Social Security and Medicare taxes (FICA) until they turn 18. This exemption provides an additional tax savings benefit because not only do you reduce income tax but you also eliminate payroll taxes on the wages paid.

Benefit from a standard deduction

Each taxpayer is entitled to a standard deduction, which reduces the amount of income subject to income tax. For 2023, the standard deduction for a single individual went up $900 to $13,850!  By employing your child, you enable them to use their standard deduction against their earned income, effectively making a portion of their wages tax-free. This can further reduce your family’s overall tax liability. 

For example, if you only pay your child $15,000 in 2025, they will pay no income tax because they will take full advantage of the standard deduction. If you are in the 37% bracket, this amounts to over $5,500 in tax savings.

Deduct business expenses

When you employ your child in your business, you can deduct their wages as a business expense. This can help reduce your business’s taxable income and lower your tax liability.

Teach valuable life skills

While not a direct tax benefit, employing your kids in your business can teach them valuable life skills, such as work ethics, financial responsibility, and time management. These skills can benefit them throughout their lives, making this strategy an investment in their future. For example, I really enjoy teaching my children the value of a dollar earned.

What’s the catch?

While this sounds like a great strategy, make sure you dot your i’s and cross your t’s. Specifically, you must document the work performed and be able to show that the work was necessary for the business. Additionally, you must document the amounts paid and be able to justify them as reasonable for the services they perform.

Conclusion

Paying your kids from your business can provide numerous tax benefits to help you save on taxes. From income shifting to payroll tax savings, the advantages of this strategy are material. Additionally, employing your children allows you to invest in their future by teaching valuable life skills and setting them up for long-term financial success. 

As with all tax strategies, it is important that you keep robust documentation, and it is highly recommended that you work with a tax professional/CPA to ensure all the correct income tax and payroll tax forms are properly completed and filed. If properly executed, this strategy can pay dividends to your family for years to come.

No matter what system you decide to use — managing your money together, separately, or somewhere in between — Quicken Simplifi makes it easy to manage your money as a couple.

For love or money: how should you manage your money as a couple?

When should you talk about budgeting as a couple?

It’s a good idea to talk about merging finances before you make a lifetime commitment. While there’s no magic moment when couples must discuss the matter, many financial advisers agree that a conversation should take place well before the actual wedding.

According to Erik Klumpp, a certified financial planner and founder of Chessie Advisors, LLC, “Once a couple is engaged, it’s a good time to begin discussing how to handle their finances together.”

According to Eric Roberge, a certified financial planner in Boston, “In most cases, finances are the last thing couples talk about. Unfortunately, it’s usually after they get married. Personally, I recommend bringing up the subject before getting engaged. It’s important to understand the impact of marriage on your finances.”

Managing your money as a couple or separately

There’s no right or wrong answer for how any given couple should manage their financial lives, but Roberge suggests at least discussing how you’ll pay for expenses, including how to divide those expenses if you have significantly different incomes. If nothing else, knowing what to expect ahead of time will make things easier as you start your new life together.

On the plus side, merging your money into a joint account can make life simpler, with fewer accounts to manage and more transparency. “Both spouses can know exactly where they stand financially since both have access to the accounts,” says Klumpp. “Combining expenses also provides a reason to communicate and hold one another accountable for their spending,” adds Roberge. “It’s very much a team approach.”

But there’s also a downside: Each partner can scrutinize every purchase made by the other. Klumpp also cautions that “it’s easy to take the money and run. Since both spouses have equal access to the money, in many cases, they can withdraw the money with just one signature.”

Deciding to merge your accounts into joint accounts when you’re not married (or before you’re married) also comes with tax implications you might not have planned for.

On the other hand, keeping things separate gives you both more independence. “But,” adds Klumpp, “if not carefully managed, this freedom could cause concern for the other spouse.” Roberge agrees. “One spouse might always question what the other does with his or her money,” he says, “adding additional stress to the relationship if these concerns are not communicated.”

Consider a hybrid option

Fortunately, managing your money as a couple doesn’t have to be an all-or-nothing approach. “I suggest that my clients create a joint checking account and add a certain dollar amount into that account each month from their personal checking, or vice versa,” says Roberge. “You can then use this joint account to cover all shared expenses.”

For many couples, a hybrid approach is the best of both worlds. You can take care of your expenses together while still enjoying enough independence to surprise each other for Valentine’s Day. It can also help keep the spark of dating alive by creating a way to give each other gifts that don’t feel like you’re just spending your joint money.

Whichever direction you choose, a joint savings account for married couples can help you work together toward your long-term goals.

Discussing your long-term financial goals

Even if you’re both smart with money management, you still might disagree, at least at first, when it comes to your long-term priorities. For example, one of you might consider buying a house to be a higher priority than saving for retirement. The other might feel the opposite.

Certified financial planner Craig Schmith says typical goals you might need to work out together include saving for college and retirement, buying a new house, or changing careers.

Talking about money can feel awkward, but it doesn’t have to be that way. Consider it just another aspect of getting to know each other. One way to start the conversation is for each of you to draw up a list of short and long-term goals, then compare your lists.

Talking about why you each feel the way you do can help you get to know each other on a deeper level. Did your parents struggle to go to college? Did you spend your childhood in urban apartments, wishing you had a home with a yard to play in? As you discover the feelings behind each other’s reasons, you can decide together which items to prioritize.

Usually it’s not a matter of choosing one or the other—say, house or retirement—but how much you can and want to spend on each. Schmith says he often gives clients a matrix with more than a dozen options.

If the breadwinner is looking at a job change that cuts her salary, for example, the matrix can show the consequences of a 10 percent, 20 percent, or 50 percent cut. Multiple options give you more flexibility in negotiating a plan you can both live with.

Once you set your mutual goals, try scheduling regular meetings to talk about your progress. If problems crop up, it’s usually better to talk about them than hide them. “I encourage people to be on the same page” when planning, Schmith says.

Ten questions to ask when managing your money as a couple

Want some guidance for discussing those long-term goals? Here are 10 questions to ask each other on your next financial date. It might not sound romantic, but then again, arguing over money management is one of the biggest causes of marital tension. An open, honest talk about your finances could be just what Cupid ordered.

“Financial dates are a great way for couples to set priorities, build trust and increase marital bliss,” says Jennifer Openshaw, chief executive of FamilyFN, a Los Angeles, California company that provides financial advice. “Probably the biggest mistake couples make is not talking about money management. It’s really about setting aside time so you can both plan for your hopes and dreams.”

1. Where would you like to be in five or ten years?

This question is the best way to start a money conversation, says Openshaw.

For example, does one of you want to go back to school, start your own business, or buy a vacation home? If you plan to raise a family, how many children and when? Would you both continue working, or would one spouse want to quit and stay home with the kids?

Discussing your hopes and dreams together will help you set priorities and identify savings goals.

2. What are our assets and liabilities?

Before you can create an effective strategy to reach your goals, each person should fill out a net worth worksheet, detailing their assets and liabilities. Once you know where you stand right now, it’s much easier to move forward.

Also, if you haven’t discussed it already, engaged couples might want to discuss a prenuptial agreement (prenup) to decide how assets would be distributed in the event of a divorce. If either of you owns a home or has investments, owns a business, plans to support the other through school, or has children from a previous marriage, a prenup might be worth the time and effort.

If you think a prenup might be right for you, be sure to broach the subject with your partner as soon as possible, giving you both time to digest the idea and move forward together, well before the wedding.

3. Should we keep our finances separate or manage our money as a couple?

Some couples relish the unity and trust that joint accounts foster, while others prefer more freedom and autonomy by maintaining separate accounts. Or, as discussed above, you can have both—setting up a joint account for household expenses while keeping separate accounts for personal spending.

The key is to find a system that works for you. Make sure you consider your individual money management styles. If you’re a saver and your partner is a spender, for example, you might find managing an all-purpose joint account too nerve-wracking, and opt for a combo approach or separate accounts entirely.

4. What about our investments?

Whether or not you choose to combine your investment accounts is, again, entirely up to you. You can’t open joint IRAs or 401(k)s, but you can change the beneficiary information to name each other.

Nevertheless, it’s important to view your portfolios as a whole to make sure you aren’t overlapping. Even if you don’t combine your accounts, you might want a way to track them together.

5. How will we handle daily spending decisions?

One of the first tasks newlyweds should tackle is creating a budget. Sit down together and plot out how much you expect to spend on groceries, clothes, eating out, and other household expenses.

Remember, budgeting isn’t about depriving yourselves. It’s a financial tool that can help you reach your goals.

You should also take this time to discuss other spending guidelines, such as how much each of you should be able to spend without consulting the other. You probably don’t want to discuss every $5 purchase, but you don’t want to come home from work and unexpectedly find a new Mercedes in the driveway either.

If you’ve had trouble budgeting in the past, using a tool like Quicken Simplifi can make things a lot easier, especially when you start budgeting together.

6. Who will be responsible for paying the bills and preparing the taxes?

In Kiplinger writer Erin Burt’s home, she’s the chief financial officer. She and her husband both contribute to cover the bills, but Erin’s the one who physically writes the checks, rebalances the portfolios, and hashes out the taxes. She’s more organized than he is, so the task naturally fell to her, although you might find that splitting the duties works well in your own relationship.

Erin’s arrangement doesn’t mean she leaves her husband in the dark, though. They have a date every month to go over the budget, review their saving strategies and progress, and discuss upcoming expenses, such as vacations and big-ticket purchases.

No matter who ends up handling the bills in your marriage, make sure each partner knows where to find all the different account information, including websites, passwords, and bill due dates in case the other person ever needs to take over these responsibilities, even temporarily.

7. What’s your tolerance for financial risk?

One of the biggest culprits in marital money management fights is a mismatch of risk tolerance, says Jonathan Rich, author of The Couple’s Guide to Love and Money.

“A lot of life’s most important decisions involve weighing risks,” Rich says. “From investing strategies to career moves, if one of you prefers to take bigger risks in hope of bigger rewards while the other is content to play it safe, you could each end up resenting the other for his or her carelessness, or for holding you back.”

Test your risk tolerance to see where you both stand. If you’re on different ends of the risk spectrum, don’t even try changing your spouse’s point of view—it won’t happen. Instead, try to compromise on financial strategies that both of you can stomach.

8. What are our insurance options?

Adding a spouse to your health insurance may be cheaper than maintaining separate plans. Consider your specific health needs, then weigh the costs and benefits of each person’s plan to make your decision.

Combining your auto insurance will probably also save you money, and you’ll want to make sure you have enough homeowner or renters insurance to protect your combined possessions.

And what about life insurance? Do you need it? If you already have a policy, either privately or through an employer, do you need to change your beneficiary information?

Be sure to take a full inventory of your insurance needs and make these decisions together.

9. How does our credit report look?

The good news is that marrying a person with bad credit will not drag down your stellar record. If you apply for a car loan by yourself, for example, your spouse’s credit report won’t even enter the picture.

But when it comes to applying for joint financing—say, you plan to buy a house together—lenders will consider both histories. Talk about any potential problems ahead of time so you can create a realistic plan to get any loans you might need on the best possible terms.

One thing you and your partner can both do is to examine your credit reports, look for errors, and fix them. Then, if there’s room for improvement, come up with a plan to boost your credit score.

10. How will we tackle existing debt?

Make a pact to pay off your debts, starting with the balances that carry the highest interest rates. You may choose to work individually or collectively to pay off debts you accrued before the wedding, but don’t add each other’s names to your obligations.

Also, consolidating your own student loans to lock in low rates is a good move—but, again, don’t merge your loans with your spouse’s. There’s no good reason to add each other’s existing debt to your credit records. It can only hurt your credit scores, and if one of you were to default, the other would be left holding the bag.

Figuring out how to get there with Quicken

No matter how you decide to handle your finances, says Schmith, “Ultimately you need to be in it together.”

Fortunately, Quicken Simplifi makes it easy to manage your money as a couple no matter how you decide to split things up. How? By connecting only the accounts you want to and making sure you both have access to them.

If you want to merge everything, you can manage it all together in one place—from your joint bank account and credit cards to your individual 401(k)s.

If you want to merge some accounts but not others, connect your joint accounts to  Quicken Simplifi so you can manage your joint financial life together (including those retirement plans) while keeping your individual accounts separate so you each have your own spending money.

You can even merge your finances without ever merging your underlying accounts. Just connect your separate accounts to the same Quicken Simplifi account, and you can both see all your finances in one place without having to change anything at all.

Once your finances are connected, you can decide together how to save up for your long-term goals. Whatever they may be, Quicken can help you get there with confidence, living a healthy financial life along the way.

27 outdoor wedding ideas on a budget:

1. State & national park venues
2. Look to your own backyard
3. Skip the golf course
4. Buy wholesale flowers
5. Embrace DIY design
6. Keep your invitations digital
7. Consider the slow season
8. Avoid chain-store markups (here’s how)
9. Make the food yourself
10. Save on entertainment with music apps
11. Keep it simple
12. Set up self-serve food and drink
13. Build your own wedding arch
14. Find the right rentals
15. Have fun lawn games
16. Invest in Polaroids, not photobooths
17. Keep it small
18. Have a friend take wedding photos
19. Look to a pal to officiate
20. Cava or Prosecco instead of Champagne
21. Skip the limo
22. Think bonfires and moonlight
23. Something borrowed, something blue 
24. Design and decorate yourself
25. Have a Plan B in case of inclement weather
26. Handwrite everything
27. Track your wedding budget

Want to know more? Read on!

Inspiring outdoor wedding ideas on a budget

Want to have a gorgeous wedding? Make your DIY outdoor wedding dreams come true with these budget-friendly ideas for wedding venues, decor, bouquets, centerpieces, and more for your big day.

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1. State & national park venues

State and national parks can provide an unbelievably scenic backdrop for your ceremony and wedding reception. Take a look to see what’s nearby (or determine how far you’d like to travel) and inquire with the park about events — you’ll need to get a special permit. While it won’t be free, it will be much cheaper than a private venue, and it’s a surefire way to a beautiful wedding.

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2. Look to your own backyard

If you or a friend have a spacious backyard, consider hosting your wedding in that space. Few things feel as homey as, well, home! This could be a great opportunity to have an intimate ceremony and form wonderful memories. There are tons of backyard wedding ideas — find what suits you!

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3. Skip the golf course

The golf course and country club vibe can feel inauthentic to people who aren’t golfers or members. Not to mention they’re very expensive — especially if you have a big guest list. By skipping these traditional, legacy venues, you can save a ton.

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4. Buy wholesale flowers

Have time to spare and a keen eye? You might want to buy flowers wholesale and make the arrangements yourself (along with the help of some friends). When you buy in bulk, you can go straight to the source — missing the florist markup. You can also collect wildflowers if they’re in season.

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5. Embrace DIY

A DIY ethos is more than just gratifying — it can save you a ton. Once you have your venue settled, start thinking about design and see what you can do yourself. Mason jars, string lights — you name it. You can tailor your wedding theme to your personality, build it yourself, and skip the fees associated with wedding planners.

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6. Keep your wedding invitations digital

Let’s be real — how many Save the Date postcards have you misplaced over the years? Consider keeping things digital and sending out invites via email (or text). This will cut down on print shop costs, postage fees, and, ultimately, minimize the amount of paper in the landfill.

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7. Consider the slow season

Saying “I do” in the off-season can be the key to a budget-friendly wedding. While it isn’t exactly practical (or safe) to have an outdoor wedding during January in a northern locale, like Montana or Vermont, the South enjoys milder winters and early springs that can be perfect.

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8. Avoid chain-store markups (here’s how)

When looking for candles, greenery, draping, and any other outdoor wedding decor, consider sourcing your materials from independent local retailers, or online vendors from sites like Etsy. Say goodbye to big-box retailers — and their markups!

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9. Make the food yourself

If you have any culinary background, you might consider leveraging those skills to cook the food yourself. Be realistic — it’s going to be tough to feed a 200-person wedding, but if your gathering is smaller, you can definitely handle it. Think about dishes that can be held in crock pots or slow cookers, and don’t forget a vegetarian option!

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10. Save on entertainment with music apps

Paying a DJ (or a 12-piece band!) can be expensive. If you have a music-streaming app like Spotify, Tidal, or Apple Music, you can keep it low-budget by curating your own reception playlist. PA systems can be rented for fairly cheap, or you can use a Bluetooth speaker from around the house — especially if it’s a small gathering.

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11. Keep it simple

The key to an outdoor, budget-friendly wedding day? Keep it simple! It’s easy to get carried away with grand displays when perusing Pinterest or Instagram for decor ideas, but you can still have a wedding ceremony and reception that exude elegance and taste without breaking the bank.

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12. Set up self-serve food and drink

Paying bartenders and servers is costly. To stick to your low-budget wedding plan, think about setting up self-serve food and drink. You can set out disposable hot holding stations via chafing dishes and Sterno, and keep the drinks confined to coolers and a DIY bar.

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13. Build your own wedding arch

There are few pieces of decor more iconic to a wedding than an arch. If you’re crafty and have tools at home, you and your partner might consider building your very own wedding arch together. Take a look on Pinterest for inspiration (or snap photos at other weddings you might attend), and implement your own themes and wedding colors.

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14. Find the right rentals

If you can get through the wedding planning without having to rent anything, well done. But for most people, it’s just not realistic. To stay cost-efficient and have your wedding on a budget, rent only the necessities. Make a checklist for things you can’t provide – these might be tables, linens, a dance floor, tents, and attire. Find the best prices and do your research!

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15. Have fun lawn games

If you’re having an outdoor wedding, don’t forget the lawn games! No matter the age of the attendants, having fun lawn games can keep the mood light — and also result in hilarity if your guests imbibe. Cornhole, Jenga, Kan-Jam, and even this giant guestbook word-search can provide tons of fun for your guests.

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16. Invest in Polaroids, not photobooths

We love wedding photos, but photo booths are unwieldy, require power, and cost you upwards of $150/hour. Instead, think about purchasing (or borrowing) a few Polaroid or Fuji film cameras. These nostalgic pictures can provide your guests with wonderful keepsakes from your backyard wedding, and you can even put together a photo board with all your guests’ pictures!

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17. Keep it small

Big weddings cost money — there’s no way around it. To save more money, think about downsizing wherever you can. This can include your wedding party, guest list, menu, wedding cake, and so on. By keeping it small, you put yourself in a position to do more with your money, giving you the best bang for your buck.

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18. Have a friend take wedding photos

Have a friend who’s a photographer? Think about hiring them for your wedding photos. Not only is it usually a pleasant experience to work with friends, but they might even contribute their work to you as a wedding gift!

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19. Look to a pal to officiate

Did you know hiring an officiant can cost $200 to $450 on average? Remember, this might not include an extra fee for rehearsal attendance! If you have a trusted friend with good oratory skills, think about turning to them to officiate your wedding. Ordination may or may not be necessary depending on your location.

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20. Cava or Prosecco instead of Champagne

We automatically associate Champagne with toasts and weddings, but authentic French bubbly is crazy expensive – especially if you’re opting for Veuve Clicquot or Dom Perignon. Instead, opt for Cava, Champagne’s funky Spanish cousin. You can save by serving Prosecco, as well. Unless you have any sommeliers in attendance, your guests may not know the difference!

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21. Skip the limo

This seems like a no-brainer, but limousine rentals are pretty darn expensive. If you’re in a park (or your own backyard), a limo is probably unnecessary — and difficult terrain to navigate! Having your ceremony and wedding reception in one place keeps it simple and easy, saving you on rental costs.

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22. Think bonfires and moonlight

If you’re planning a rustic wedding, you’ll definitely want to set up fire pits around your venue. Cozy bonfires can provide a great ambiance, and s’mores stations will be an absolute hit for kids and adults alike! Also, consider scheduling your wedding toward a full moon in order to maximize on natural light.

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23. Something borrowed, something blue

As the old adage says, “something old, something new; something borrowed, something blue” — let’s focus on borrowed! Borrow whatever you can to cut down on expenses, which can be especially meaningful if family or friends can offer up sentimental pieces of decor or attire and accessories.

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24. Design and decorate yourself

When it comes time to put the venue together, save some money by designing and decorating it yourself. Wedding centerpieces can be made ahead of time, but table assembly, place card layout, wedding favor bags, and wedding flower placement can all be done with the help of a few friends.

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25. Have a Plan B in case of inclement weather

Nobody wants to think of rain on their special day, but it’s always good to have a Plan B for those fall wedding cold snaps or summer wedding storms. Avoid cocktail hour in a downpour by having an alternate, indoor location on standby — you’ll need to monitor the weather and make the call leading up the day of your wedding.

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26. Handwrite everything

Want to save on place cards, thank you notes, and invitations? Write them by hand! If you don’t happen to have any friends or family with calligraphy skills, that’s okay. A rustic, handwritten note always has its charm. Consider heading to a craft store like Michaels, buying cardstock and a few broad-edge calligraphy pens, and seeing how it turns out — you may surprise yourself! 

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27. Track your wedding budget

It might seem like a no-brainer, but the best way to stick to your wedding budget is by planning it out ahead of time and tracking it as you go. The more you save, the more you can pool into that honeymoon fund!

You can opt for the old-school spreadsheet and calculator method, or use an app like Quicken Simplifi — it can track your expenses, categorize them automatically, create savings goals, track your investments, and so much more.

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Through it all, a simple tip from a friend or colleague has often helped me overcome my biggest problems. 

So here they are, my top 21 best tips for small business owners.

1. Your customers are your tribe 

Before you get involved in a business venture, be sure to conduct thorough market research to understand what your target audience wants and needs. You need to understand your competition as well. 

But market research doesn’t stop just because business is booming.

You should always be researching your competition and doing the research on your current customer base that it takes to get solid answers about the needs of your tribe. Your tribe is made up of past and present customers who will provide you with the information you need to know how the market will act in the future so you can plan accordingly.

2. Lean on AI to craft your business plan

You don’t need an MBA to build a business plan. With so many tools at your disposal, it’s just a matter of sitting down and drafting the framework of your goals and ambitions. Grabbing essential books on business can help, but you can also turn to virtual support, such as AI.  

Try telling ChatGPT all about you and your business, and ask it to create a plan. Yes, you’ll have to modify what it tells you, but this helps kick the thought to the curb that you need to hire a business advisor to tell you everything. Take the output ChatGPT gives you and make it your own based on the information it provides. Simple as that.

3. Build a memorable brand 

I tell everyone this point: if you want to invest in your business, create a memorable logo, tagline, and brand identity. Expect to spend some money, as your logo is how people come to know you. 

Think Apple. What comes to mind when you see that little apple outline? Quality, innovation, maybe style. At a glance, the logo and brand embody the spirit of the business. Your brand is what you want people to remember about you, so hire someone to do it right.

Even if you’re on a budget, there are talented people out there — marketers, graphic designers, and brand specialists — who can help, and it won’t break the bank. My favorite thing to do is tap into my network on LinkedIn to find the best talent I’m already connected with. Ask the people who know you if they know someone who can help you build your brand.

4. Leverage social media

I mentioned LinkedIn, which is a magical platform full of business people willing to help, but don’t neglect Facebook, Instagram, and TikTok to promote your business and engage with potential clients and customers. YouTube is another great place to build your brand and engage with your present and future customers, being the second largest and most comprehensive search engine on the web.

Some business owners think that they don’t belong online unless they work in e-commerce, but that’s the furthest thing from the truth. It’s a guarantee that most of your audience spends time online, and if they want to find you, it will be through social media. 

5. Network, network, network

I love LinkedIn for networking, but don’t be afraid to get out and attend industry events, join local business groups, and connect with other professionals to expand your reach.

Business is all about who you know, and knowing the right people at the right time can save you money and time in the long run.  Always try to find opportunities to expand your network and get to know others from many walks of life and different business settings.

6. Focus on customer service 

Show me a business that focuses on customer service above all else, and I’ll show you a business bound for success. In this saturated market, one of the best ways to differentiate yourself from your competitors is by how well you treat your present and future customers.

When you provide excellent customer service, you build loyalty, encourage repeat business, and grow with word-of-mouth advertisiting, still one of the best (and free!) ways to get the word out about your business. 

7. Have a problem? There’s an app for that.

I already mentioned using tools like social media and ChatGPT, but don’t neglect other types of technology to help you. Software, apps, hardware, and devices — technology is wonderful, and there’s no limit to how you can use it to help your business. 

Try platforms like Monday.com that help you plan and organize your work, or cloud-based tools like OneDrive or DropBox that help store important files and keep everything you need in one place. 

Whatever challenge you’re facing, there’s bound to be a technological solution to combat it. 

8. The secret to staying on top of your finances 

Keep track of your expenses, create a budget, and monitor your cash flow regularly. I use Quicken Business and Personal to manage my business and personal finances—it’s complex enough to fill every need I have and easy enough to use even for someone like me who doesn’t love math and numbers.

I use it to generate the reports I need to stay ahead of my finances and keep track of all my expenses and deductions for tax time, as well as helping me track my spending so it doesn’t get out of control.

9. Set realistic goals — and track them

I once had a mentor who told me that I would never be successful doing something if I didn’t keep track of it. She said that planning and establishing clear, achievable goals were key to focusing on the right things in a business. “The most important step,” she said, ”is to track your progress.”

Through the years, I’ve tracked the important things and set goals that helped get me where I am today. You cannot know where you will be in the future if you don’t know where you are today.

In all my years as a business owner, I have never found her to be wrong, and every time someone asks me for advice, I pass this advice on to them.

10. Be relentlessly flexible 

If I could tell you to learn one thing as a business owner, it would be this: always be relentlessly flexible.

You never know when a client may go a different way or when a business partner will want to try something different for a change. In physical therapy, being stiff and inflexible is the surest way to delay the recovery of an injury or even worsen it. Likewise, in business, being inflexible can spell disaster if you or your processes aren’t willing to change at a moment’s notice.

11. Hire the right people 

Build a strong team by hiring employees who align with your company’s values and culture. Director, actor, and writer Issa Rae famously said, “If I’m the smartest person in my company, then my company will go nowhere.”

By hiring a group of diverse and unique voices to lead your company, you’ll set yourself up for success. I have always looked for people who were smarter than me in certain skills because I can’t know everything, and hiring subject matter professionals to cover those areas will ensure that my business is expert-led and follows best practices. 

12. Build your goods and services to last 

It should be a no-brainer that the products sold and the services offered should be the best you can provide. People tend to expect that everything a business owner is selling is of the highest quality. In a day and age of planned obsolescence, when things are made to fail in order  to be replaced in a few years, be the company that makes things that last a lifetime.

If you provide extra customer services, ensure that the work you do will last for a long time: be the business for which a lifetime guarantee means everything.

13. Invest in marketing

Marketing never goes away, and it pays to do it right. Even if you have more business than you know what to do with, you should always be planning for the next sale or project. Allocate resources to marketing efforts to increase your company’s visibility and attract new customers.

One of the best ways I’ve found to use marketing dollars is email marketing.

Why email marketing? It gives you a direct line to each and every one of your customers. Use email marketing to:

• Ask questions for market research
• Keep customers informed about discounts and new offerings
• Sell past customers additional products and services
• Continue to nurture relationships with your tribe

All you have to do is sign them up for your list when they make the purchase, or sign your prospects up in exchange for an eBook. An email list is worth its weight in gold.

14. Seek honest feedback 

Your business isn’t going to make it if you isolate yourself in an echo chamber of your own thoughts and yes-men. If you want to be successful, ask for feedback from customers and employees on a regular basis to identify areas for improvement. 

Not sure where to start? Try emailing your customers a survey, conducting team feedback meetings, or customer focus groups. You can even set up an online forum for your business or products, so you can designate a space for discussion, ideas, and community involvement tied specifically to your clientele.

15. Monitor industry trends

This is one of the best ways to succeed in a fast-paced industry. Stay updated on trends and changes in the industry to stay competitive. Networking with peers or colleagues in related fields of interest is another great way to strengthen your social network. Between reading industry news online and connecting with people in your industry, you’ll get enough information to plan for new technology and stay at the forefront of your field. 

Subscribing to industry blogs and newsletters is a great start, but it may also be worth it to join a curated industry forum.  

16. Prioritize time management

Time and money are important. If either one is spent unwisely, it’ll take even more time and money to correct your course. Use tools and techniques to manage your time efficiently and to stay organized, which can save you hours each day; even saving a few minutes adds up over time.

For example, I’m a writer, and I work best when I am in a flow state, writing professionally with little effort. By working in 25-minute bursts and then taking a short break in between, I can maintain my momentum and do my best work. This saves me hours of time and money, every day.

17. Invest in professional development 

The most important investment you make in yourself is not always building a personal brand. Most times, investing in professional development has a higher ROI because we’re directly making ourselves more marketable. Continuously seeking opportunities for learning and growth to enhance our skills and knowledge is worth the time and money.

Look for courses to improve and learn new skills. Take classes at a college or do them online in your free time. Finding a mentor or personal coach is also beneficial because learning with the help of a professional is sometimes more effective than going at it alone.

18. Protect your business with insurance and security measures

Sometimes, a little protection is all you need. Think about investing in insurance and implementing security measures to protect your business from risks. 

What if one of your products malfunctioned, and you got sued? Even if you have an LLC and are not personally liable, your business could be at risk and your reputation could be at stake. It’s best to protect yourself if the alternative is to lose everything.

19. Expand your company’s skillsets by outsourcing 

Want to know how to gain hundreds of hours each month? Outsource tasks in your business that someone else could complete more easily and affordably, rather than doing everything yourself. You could also delegate tasks that are outside your expertise to professionals.

Less stress and grief? Check! Imagine having more time each day to do the things in your business that make you the most money. Win-win.

20. Focus on sustainability 

Want to do something for your business that would not only help the environment but also save you money in the long run? Implement sustainable practices to reduce your environmental impact and appeal to eco-conscious customers. 

Some of these practices include sourcing from environmentally forward suppliers, looking into eco-friendly waste management practices and recycling, or simply being aware of the type of packaging and paper you use.

When you adopt sustainability practices, be sure to publicize it. Splash it across your website, announce it in an email, and post it on social media. Another win-win.

21. Stay motivated, whatever it takes 

Not only am I a work-from-home entrepreneur, but I’m also a father and a husband — with plenty of things to do outside of work to keep my family happy. How am I able to juggle those responsibilities and get everything done? A positive mindset.

In any business though, there are times when keeping a positive mindset can be tough. Find the things that work for you, no matter what, and stick with them. Spend time with your family. Hike through the woods. Listen to music. Maintaining your optimism, conviction, and determination matters, so don’t give up the things that help you do that — make them habits, no matter what. 

Any and all of these 21 tips will help you as a business owner, but doing things to keep yourself upbeat and motivated is the secret ingredient to finding your version of success in business as well as  your personal life.

Tread too carefully, and you might miss out on legitimate savings. Tread too recklessly, and you might find yourself on the wrong side of an audit or, worse, legal action. This article aims to help you find the sweet spot between conservative, aggressive, and illegal tax positions.

The three distinctions:

1. Conservative approach: Conservative deductions and tax positions are well within the precise boundaries of tax laws. You might choose not to take certain deductions even though those deductions are legitimate. By taking a conservative approach:

• You minimize the risk of an audit
• You may, however, miss out on potential deductions that could be legitimately claimed

2. Aggressive approach: Aggressive deductions and positions push the boundaries of what’s acceptable within tax law. For example, you might deduct a business trip to the beach. While they might be legal, they can raise red flags. This approach:

• Increases the risk of an audit or inquiry
• Maximizes potential savings if all deductions are ultimately deemed legitimate
• Requires a deeper understanding and substantial documentation to back up each deduction

3. Tax fraud: Fraudulent deductions, positions, and omissions clearly and knowingly violate tax laws. For example, if you’re required to disclose foreign bank accounts and choose not to disclose them to hide income. Individuals or businesses that opt for this path:

• Face significant risks, including hefty fines, penalties, and potential legal action
• Compromise their reputation and credibility

Tips for making the right deduction choices:

1. Understand the boundaries: Familiarize yourself with tax laws and the latest interpretations. IRS publications, tax seminars, and professional consultations can be valuable resources.

2. Document everything: Documentation is critical whether you decide to be conservative or aggressive with your deductions. Detailed records can provide the necessary justification for deductions if questioned.

3. Seek expert advice: A tax professional can offer guidance on where the line is drawn between aggressive and illegal, helping you make informed decisions.

4. Consider your risk tolerance: While being aggressive might offer more savings, it comes with heightened risks. Evaluate your comfort level with these risks before deciding on your approach.

5. Stay updated: Tax laws and interpretations change. Regularly reviewing updates ensures that what was once considered an aggressive deduction hasn’t shifted into the realm of the illegal, or vice versa.

A fourth distinction: honest mistakes

Even with the best intentions, mistakes can happen. Tax codes are extensive and intricate, and misinterpretations are not uncommon. An “honest mistake” is an unintentional error in understanding or applying a tax rule. It’s distinct from aggressive or illegal deductions in that there’s no intent to deceive or manipulate the system.

However, it’s essential to understand that accountability still applies, even when you make a mistake. The IRS can still impose penalties or require back payments. The severity often depends on the error’s nature and its perceived intent. Additionally, once you become aware of a mistake, taking the initiative to correct the error can demonstrate your commitment to compliance.

Right, wrong, and in between

“Aggressive” doesn’t necessarily mean “wrong,” just as “conservative” doesn’t always mean “safe.” The key is understanding the nuances of tax laws and where each deduction falls on the spectrum of conservative to illegal. 

As the adage goes, “It’s not about what you make, but what you keep.” To keep more of your earnings, remember to walk the tightrope of tax deductions with balance, knowledge, and care.

What is a pension plan?

Pensions are employer-sponsored and funded retirement plans. These “defined-benefit” plans guarantee workers a minimum level of income in retirement. To meet this promise, employers must set aside and invest money for their employees.  

Pensions have fallen by the wayside in recent years. As of March 2023, just 15% of private-sector workers could access these plans. That’s a fraction of the 67% of employees with access to defined-contribution plans, like 401(k)s. Still, they’re common in government jobs, and some larger employers offer them.

How pension plans operate

To achieve the promised defined benefit, employers set aside money for their employees. This money is pooled and invested in a pension fund. The investment earnings cover employees’ retirement payouts. If the fund underperforms, the company may be on the hook for any payment deficits. 

At retirement, employees may have the option of a lump-sum distribution or monthly payments. Some pensions also pay survivor benefits if the pension earner passes first. 

Funding structure of pensions

Pension plans require employers to fund most or all of their employees’ retirement payouts. Some plans may allow (or require) employees to make contributions, too. 

Importantly, most pension funds must “vest” before an employee qualifies for benefits. Usually, employees have to stay with a company for 5-7 years before they’re vested. 

What is a 401(k) plan?

A 401(k) is an employer-sponsored retirement savings plan. Employees choose how much to contribute (up to annual limits set by the government), and this money is typically invested in a selection of mutual funds, stocks, or bonds.

In recent decades, 401(k)s have replaced pension plans as the primary retirement account. Like pensions, 401(k)s offer financial and tax benefits to invested employees. 

How 401(k) plans operate

401(k) plans put employees in charge of funding their own retirements. The money is invested in a fund or selection of funds, depending on the program offered. The funds are managed by a company-selected investment firm. Employees can usually choose from a limited selection of funds offered by the firm. 

Two basic types of 401(k)s exist: Traditional and Roth. With a traditional 401(k), you invest pre-tax dollars into a tax-deferred account. That means you lower your annual income now, but must pay taxes on all withdrawals in retirement. Roth 401(k)s tax your contributions upfront, but you don’t have to pay taxes on retirement withdrawals. (Even on capital gains.) 

Funding structure of 401(k)s

401(k)s are primarily or solely employee-funded, depending on the company offering them. The money comes out of your paycheck and may or may not be taxed upfront. (Based on whether you have a Traditional or Roth account.)  

Some companies offer matching contributions to employee 401(k)s. For every dollar you contribute, they’ll contribute a set amount, usually up to 2-5% of your annual pay. But most employers don’t contribute to your 401(k) if you don’t. That leaves you on the hook for saving for retirement first.  

Key differences between pensions and 401(k)s

Pensions and 401(k)s share several similarities. They’re both employer-sponsored retirement accounts. They also both offer tax advantages and may provide some degree of employer contributions. But their differences matter hugely. 

Employer contributions

Pensions require employers to provide most or all the funding. Employees may be allowed (or required) to contribute. However, employees rarely fund the bulk of their own pensions.  

By contrast, 401(k)s are almost always funded by employees first. Employers may or may not match employees’ contributions (to a point). It’s rare for employers to toss in money if an employee doesn’t contribute first. 

Payment structures and payout options

Pension payout amounts depend on factors like your age, salary, and length of service. Most pensions offer a lump-sum or annuity payout structure. (Some offer both.) 

Lump-sum pensions pay retirees their entire pension upfront. You’re then responsible for saving, investing, or spending wisely through retirement. Annuity pensions make regular monthly payments until the pensioner passes away. Some pensions also pay benefits to survivors if the pensioner passes first. 

With a 401(k), you’re responsible for structuring your withdrawal payments. After you reach retirement age (59.5), you can withdraw as much as you need (or want) penalty-free. If you run out of funds, you’ll have to rely on other funding sources to get through retirement. 

Risk and investment management

Private pensions put the bulk of the investment risk and responsibility on companies. Employees don’t have to choose assets or rebalance their portfolios. But you’ll have to trust the fund manager (and the market) to work in your favor. 

Most private companies insure pensions through the Pension Benefit Guaranty Corporation. This insurance covers most or all of your pension payment if your employer can’t pay out or goes bankrupt. 

Public pensions also carry the investment responsibility. Unfortunately, they’re often underfunded and not subject to the same insurance requirements. As a result, public pensioners may face smaller payouts in retirement. 

401(k)s work quite differently. Private companies contract investment firms to offer a small range of retirement options. These may include mutual funds, ETFs, or annuities. However, these funds don’t offer any guarantees or insurance. That leaves employees on the hook if the market crashes or underperforms. 

Portability and mobility

Pensions tend to be fairly immobile. If you move to another company, your pension often stays behind until you retire. If you’re not vested, you’ll likely lose any employer contributions. Some pensions may offer buyouts or transfers to another pension plan. 

While 401(k)s don’t move between employers, the money within them can move fairly easily. (Note that some employers set vesting requirements for their contributions. That said, your contributions remain all yours!) If you change employers, you can usually roll the money into another 401(k) or rollover IRA to keep it with you.  

Pension vs 401(k): Pros and cons

All retirement plans have their pros and cons. This is how pensions vs. 401(k)s stack up. 

Pros and cons of pension plans

Employer-funded pensions make employers responsible for their employees’ retirement. Setting benefit formulas up front lets employees know they’ll have income later. (Especially for private, insured pensions that make annuity payments.) 

But not all employers offer pensions, and employees rarely have input in a pension’s investments. Uninsured and underfunded pensions may pay reduced benefits, jeopardizing your retirement plans. That’s especially true for public pensions that lack insurance requirements. You also can’t withdraw funds early or adjust your monthly payments. 

Pros and cons of 401(k) plans

401(k)s offer benefits like employer matching and high contribution limits. Plus, you can often choose between Roth or Traditional accounts. Together, these benefits give you more choice and flexibility over your retirement savings. The tax benefits can even reduce your annual income now, offering short-term benefits. 

But since 401(k)s are primarily employee-funded, you’re on the hook for your own retirement. You also have limited investment options and no insurance to protect you. That leaves employees with no guaranteed income in retirement. And while you can structure payouts around your lifestyle, early withdrawals carry penalties. 

Emerging trends in retirement plans

Some retirement plans “blend” aspects of both defined-benefit and defined-contribution plans. While not available everywhere, they offer unique benefits. 

Cash balance pension plans

Cash balance pensions have a distinct funding structure. Every employee receives a hypothetical “account.” Employers pay annual “credits” into this account. The credit amount is made up of two parts:

• A set percentage of their yearly compensation (e.g., 5% of annual wages)
• An interest payment paid on the account balance (e.g., 3% of the account balance)

These credits continue until the account balance reaches the target account balance. Then, at retirement, the employee may receive a lump-sum payout or monthly annuity payments. 

Cash balance plans vs traditional pensions and 401(k)s 

Cash balance pensions operate similarly to pensions. They’re employer-funded and set predetermined benefits amounts. Plus, investment fluctuations don’t impact your final benefit payout. 

Unlike traditional pensions, though, your defined benefit isn’t a monthly payment. Instead, the account sets a hypothetical total account balance. (E.g., $1,500 per month vs. an account balance of $150,000.) 

Some employers also offer cash balance pensions with hybrid 401(k) features. This may mean that the employee can contribute to a 401(k) in addition to receiving their pension benefits. But unlike regular 401(k)s, employers remain responsible for the pension part of the plan. 

Which retirement plan is right for you?

Unlike some other retirement decisions, you may not get to choose which account you get. As private pensions disappear, most employees are left with 401(k)s or IRAs. (Though many public-sector employees still have pensions.)  

But you may find yourself in the position of choosing between the two. (For instance, if the difference between two job offers comes down to their retirement options.) In that case, you’ll want to carefully weigh the pros and cons against your:

• Risk tolerance
• Starting and future potential pay scale
• Individual goals

Pensions offer guaranteed payments and put the risks on the employer. However, you have limited control over the plan’s investments. Your payout is also limited by a preset formula. If you work in the public sector, you may end up underfunded in retirement. 

With a 401(k), the investment performance and payouts are NOT guaranteed. You may enjoy having more choice over your investments, contributions, and withdrawals. That said, you’re responsible for funding, account losses, and money management in retirement. 

At the end of the day, there’s no “right” retirement plan for everyone. There’s only the “right” choice for your goals, needs, and risk tolerance. 

The tips in this article can help you choose a nonprofit structure, register your nonprofit in your state, stay on good terms with the Internal Revenue Service (IRS), and much more!

What is a nonprofit corporation or organization, exactly?

A nonprofit organization is a group or startup formed with a focus on social issues, education, or donation. Think of it as a public charity, raising money and resources to invest in humanitarian efforts. 

As opposed to a for-profit organization, nonprofits reinvest extra revenue not used in the business of charity and put it toward their mission. They don’t distribute it to a group of shareholders.

Should your organization be a nonprofit?

Starting a nonprofit can be fulfilling, but it’s also a challenge. Here are a few key points to consider when deciding if a nonprofit structure is right for your chosen mission.

Why start a new nonprofit organization?

• You can provide a public benefit: Serving the public and addressing unmet needs in communities is a great way to help others.
• Tax-exempt status: Your organization can benefit from federal tax exemptions under IRS guidelines, which means more money goes to your mission.
• Access to grants and donations: Nonprofits can receive large charitable donations and grants, which are the lifeblood of any charity, whereas for-profits cannot assert the same privilege. 
• Community involvement: Building a network of volunteers and supporters is often easier for nonprofits because people know the organization’s main goal is not in making a profit.
• Long-term sustainability: Most nonprofit groups last far beyond the strength of the original founders. Think Peabody Education Fund, which has been around since 1867.

Common types of nonprofit organizations

501(c)(3): Charitable Organizations

• Best for: Aiming to address social, educational, religious, or charitable needs? This is the most common type of nonprofit.
• How it works: You only have to meet IRS criteria to file for tax-exempt status. Donations are tax-deductible.

501(c)(4): Social Welfare Organizations

• Best for: Groups who focus on promoting social welfare and fighting for social causes. According to IRS.gov, this “does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.” 
• How it works: Can engage in other political activities but donations are not tax-deductible.

501(c)(6): Business Leagues

• Best for: Institutions like the Chamber of Commerce or the Better Business Bureau
• How it works: Focus on improving business conditions; lobbying is allowed, but there are no tax-deductible donations.

With this additional information in hand, read on to see the 15 steps to take when starting a nonprofit.

How to start your new nonprofit corporation

Step 1. Create a business plan

Steps 1 and 2 are about creating the framework—your nonprofit’s mission and strategy. This provides a basis for what you want your nonprofit to achieve. 

In step one, you’ll figure out your funding, which will help you attract the financial backing you need and ensure that your operation is effective by outlining crucial financial management and compliance measures. 

This section is where you shine, and many people and organizations looking to fund your nonprofit will be paying close attention.

Step 2. Develop a mission statement

In this step, you’ll clearly articulate your organization’s purpose and goal. In just one or two sentences, why will this nonprofit exist? 

Be as specific as you can. Your nonprofit’s mission statement will define and drive all the other parts of your operation. 

Step 3. Choose a name and create a brand

Picking a name and starting the branding process is important. As a nonprofit, your identity means everything and is closely tied to your mission statement—your name and logo will often be the first impression people have of your nonprofit. 

Whatever your ambition, be it a caretaker of the oceans or feeding a million children, the name you pick must be memorable for people to take your mission to heart.

Step 4. Get a registered agent

While it’s not a requirement that you need a registered agent in your state when starting a nonprofit,  according to the CogencyGlobal blog:

“Many nonprofits that solicit charitable donations nationwide use the Unified Registration Statement (URS) to meet their filing obligations relating to initial and renewal charitable registration and compliance filings. These filings are broadly required in 37 states and in D.C. pursuant to state charitable solicitation acts.”

Step 5. File Articles of Incorporation

There are three ways to do this: Hire a lawyer to draw up all your necessary paperwork, use an online platform like LegalZoom or Bizee, or submit the needed paperwork yourself. You must submit these foundational documents to the Secretary of State to legally form your tax-exempt organization.

Step 6. Create bylaws

To create bylaws, first define the organization’s structure, including the board of directors, officers, membership, and meeting procedures. This ensures compliance with legal requirements. Then, draft the bylaws document. You can review it with legal counsel or adopt it through a board vote.

Step 7. Appoint board members and directors

When creating the bylaws, assemble a nonprofit board of directors responsible for overseeing the organization’s activities. Also, choose an executive director who will be in charge of all board proceedings and the decision-making authority of the organization. 

Set up the initial and future board meetings and then acquire the contact information of all involved. In doing so, you set up a strong foundation for efficient and reliable communication for your nonprofit’s leadership.

Step 8. Apply for an employer identification number (EIN)

Your nonprofit will need a bank account. To get one, you need an Employer Identification Number (EIN). A nonprofit is required by federal law to have an EIN, a process made all the easier by the internet. Simply fill out the paperwork online and submit it.

Step 9: File for federal tax-exempt status

Submit IRS Form 1023 or Form 1023-EZ to obtain 501(c)(3) status. The IRS will send a determination letter in a few weeks.

Step 10. Apply for state tax exemption and any business license you may need

If you’ve chosen to do all the paperwork yourself, look into state-specific tax exemptions and their availability, plus the necessary paperwork to comply. This is also the point when you should apply for any state-specific business license you may need.

Step 11. Develop a fundraising plan

First, apply for grants from charitable foundations, government entities and agencies, and corporations that align with your nonprofit’s mission and strategy. Many can be found online like the ones on grants.gov. 

Some of these grants are funded yearly, so plan ahead to submit a proposal by each deadline. Plan out a detailed donation campaign using online platforms or a social media profile to increase public interest and visibility. You may also choose to find and secure individual donors via mailed invitations or community outreach efforts.

Build a website and start collecting email addresses from your anticipated  donors. An email list is worth its weight in gold as these donors are the ones who will provide funding time after time. 

You can look to host fundraising events like auctions or community book fairs to raise funds and increase visibility. This is where you want to create goodwill for the brand and get the word out about you and your mission. Foster partnerships with current sponsors and donors who can help to provide financial management and administrative support for your nonprofit. 

Keep detailed records of all donations using a donor management system or content management systems (CMS) like Hubspot to ensure you’re transparent and accurate in tracking your organization’s progress. Keep thorough records of all transactions.

Step 12. Open a bank account

By now you should have received your EIN, so take all your documentation and open an account with a reputable bank. Some banks even provide financial management help for nonprofits should you need an extra hand.

Step 13. Set up record-keeping and reporting systems

Remember the old adage, “if it’s not written down, it didn’t happen”? You’ll need to keep track of donations, expenses, and grants. Use accounting software tailored for nonprofits or hire a bookkeeper if this isn’t in your wheelhouse. Create regular financial reporting schedules, including annual audits and tax filings, to meet legal and regulatory requirements.

Step 14. Create a conflict of interest policy

If you’re at the head of a nonprofit, you’ll soon find out that you and your organization are under constant, and sometimes intense, public scrutiny. To ensure there’s no impropriety, the IRS recommends creating a conflict of interest policy. The IRS suggests you use form 1023 to “as a means to establish procedures that will offer protection against charges of impropriety involving officers, directors or trustees.”

Step 15. Prepare for ongoing compliance

Use the internet to stay informed about filing fees, reporting requirements, and updates in nonprofit law for each fiscal year. You’ll want to ensure you stay in compliance with federal policies and create FAQs that will inform the public about your practices.

Would a for-profit organization fit you better?

Does a for-profit structure align better with your goals? Consider the following:

1. If your primary goal is to generate profit for owners or shareholders, a for-profit organization may be better for your needs.
2. If you want the flexibility to distribute profits, for-profits allow owners to share in the business’s financial success.

3. If you’re seeking funding primarily through investors rather than donations, for-profits can raise capital through private investments.
4. Do you feel confined by the additional rules, scrutiny, and audits that come with nonprofit status? A standard taxed business may be better for you.

Can you start your own nonprofit?

Definitely. By following the steps above, you can establish a nonprofit organization that effectively serves your mission and community.

I know from experience that sometimes we have to think creatively when starting projects or launching new products. For instance — we have to do market research, right? It’s one of those things that’s necessary for any business, and many companies hire agencies to do it for them. 

That’s why the industry is expected to reach $90.79 billion in 2025.

But what if you want to do market research yourself because resources — like time, people, and money — are limited? You can do a lot on your own if DIY is your thing. 

Here are ten creative ideas to get you started.

1. Use guerrilla surveys to test products and ideas

Guerrilla research is a method for getting the information and data you need by using every resource available —even ones you might not usually use.

For example, you can set up a booth in a high-traffic area and ask questions of passersby, or use online survey tools like Google Forms or SurveyMonkey to gather quick feedback from friends, family, and social media followers. Offer a small incentive like a discount or free sample to encourage participation.

A few years ago, after starting research on a new service for the public, I created a short survey with about 12 questions that were crucial to my business. I sent a link to my friends on Facebook and my followers on Twitter and LinkedIn, asking them to help me with a bit of their time. I offered them a free subscription to my newsletter, which also let me save their email addresses and ask them questions later if I wanted to.

This was the beginning of my email list that I still use to this day to try new ideas and advertise products I offer. A list is one of the best ways to keep in contact with your customers and an investment in the future of your business.

2. Use social listening to find out what’s hot and trending

Say what you want about Twitter/X and Facebook, but they’re wonderful places to find out what’s trending in the marketplace. Monitor all your social media platforms for active conversations relevant to your industry or product. 

Take a deep dive into trending topics and customer comments to gain insights into current preferences, pain points, and trends.

This can be as simple as searching a hashtag. For example, search “#mickeymouse” to find out about Disney, or “#Tesla” to gain insight into the world of EVs.

3. Try customer shadowing to put yourself in their shoes

Step into your customers’ lives by observing how they interact with your product or service. Pick up the phone and offer to accompany them during a trial run or invite them for a behind-the-scenes tour of your business. Observe their behavior, preferences, and pain points firsthand as they use your product, or watch their reactions as you provide your service.

As business owners, it’s sometimes hard to step away from behind the curtain and see what the customer sees. However, these personal observations will be more valuable to you than much of the standard information you gain by other methods of gathering market research.

4. Host collaborative workshops to find out how your ideal customer thinks and feels

Hosting workshops or focus groups with your target audience can help you brainstorm ideas, gather feedback, and create solutions to your problems cooperatively. Offer donuts and coffee or small gifts as tokens of appreciation for their time, effort, and the input they provide.

A fair or flea market can be a great place to set up a few chairs in a circle and pick the brains of the people who could one day be your customers. Sometimes, a few people may want to just sit down and rest because they’re tired from walking, but end up finding themselves your biggest future advocates.

5. Conduct street interviews and find the pulse of the public

Hit the streets or stand outside your local grocery store armed with a clipboard and a few open-ended questions related to your business. A few people won’t like being stopped, but it won’t be difficult to engage pedestrians in casual conversations if you’re patient and persistent. 

This will help you gather valuable data about your customers and note diverse and compelling perspectives from people you may never encounter otherwise. Most people love to offer their opinions free of charge, and if you’re a good listener, you can gain valuable insights that you could never guess on your own.

6. Generate a competitive analysis

Study your competitors’ products or services, and even their pricing strategies. Analyze marketing efforts, like flyers and ads. Don’t neglect their customer reviews to identify gaps in the market or areas where you can differentiate your business. 

Pablo Picasso is quoted as having said that “good artists borrow, great artists steal.” The same can be said for market research. You want to find out what your competition is doing right and wrong and figure out ways to do it better.

If you have an online business or an online component in your business, use tools like Semrush or SimilarWeb for more thorough analytics. These tools have a small cost, but if you want data about your competitors online, tools like these can be a great place to start.

7. Forge local partnerships

Create alliances with businesses or organizations that have complementary services or products. Find them in your community to gather insights, information, and new customers through joint events or shared promotions.

For instance, say you’re a plumbing contractor. Why not contact building contractors in the market you want to break into and offer a discount if they use your services when doing a whole house remodel? What if you asked the contractor to attach your flyer or questionnaire to the final customer invoice?

Some of the best information can be found by piggybacking on another successful business to gather market data and gain new leads. It’s a win-win situation because you never know what future benefits will come from a long-term partnership.

8. Leverage online communities like Facebook groups

Join relevant online forums, discussion groups, or niche communities where your target audience and ideal customers congregate. For example, if you’re a used clothing reseller, many “for sale or trade” groups could offer valuable information. All you have to do is become an active member and ask.

Participate in discussions, ask questions, and listen attentively to uncover valuable insights and establish relationships with potential customers. But remember that most groups won’t respond well to someone new who hasn’t provided value, so be sure to make an effort to respond to comments and offer valuable insights of your own.

9. Test prototypes on the public

Create low-cost prototypes of products or minimum viable products (MVPs) and ask for feedback from early adopters or beta testers you find online. This is why it’s important to build a website and start gaining followers on social media from the beginning — so you have a pool of fans to choose from when you need insights into your business.

Iterate — build better prototypes based on their suggestions and observations, and refine your product or offer before launching to a wider audience.

10. Try customer journey mapping to gain insights

Have you ever mapped out your customer’s entire journey — from the awareness of your product or service to purchase and beyond — to identify pain points, friction areas, and opportunities for improvement? 

Getting inside the mind of your customer is an invaluable way to get the information and data you need to make informed decisions. The more you can visualize the user experience, the easier it will be to find priorities and make your processes easier.

Market research made easy — on a shoestring budget

Market research doesn’t have to cost an arm and a leg, and it doesn’t have to be complex. But if you want to do it simply, on a shoestring budget, it will take some personal effort. 

By leveraging creativity, resourcefulness, and a willingness to connect directly with your target audience and ideal customers, you can gather valuable insights into your business that will help you make the difficult decisions that business owners need to make every day.

Experiment with these ten ideas to uncover hidden opportunities and gain a competitive edge in your market niche — and have a whole lot of fun in the process!

Financial account aggregators make that job easier by integrating all your accounts into a single, complete view of your balances, transactions, and net worth.

What is a financial aggregator?

As personal finances become more complex, they start to have a lot of moving parts. These might include checking and savings accounts, credit cards, personal loans, auto and home loans, assets (like your home’s value), investments, and even retirement plans.

A financial aggregator helps you see all of those accounts in one place, giving you a complete picture of your net worth and how it’s changing over time. These apps (which you can often access on either your computer or your phone) let you connect to these accounts so the information in your aggregator’s dashboard stays up to date automatically. 

Whether you just bought a cortado at your favorite coffee shop or made a payment on your mortgage, that transaction will be reflected in your dashboard in something very close to real time — especially since many banks, credit cards, and loan providers report those transactions instantly.

5 benefits of using an aggregation system

No matter what your unique financial situation looks like, nearly everyone can benefit from being able to view all their financial data in one place. 

Here are some of the main benefits of a financial account aggregation system.

1. Apply your time more efficiently

Managing your finances across multiple financial institutions and websites is time-consuming. Most of us spend far too many hours checking accounts and entering data into spreadsheets — relatively simple tasks that computers can do much more quickly. 

Even if you happen to enjoy working with your finances, the time you spend visiting various banking apps and websites to gather your data isn’t especially valuable — it’s the picture you’re building that matters. Financial aggregators build that picture automatically so you can spend your time more efficiently  — analyzing your data and planning ahead.

2. Automate routine work, like categorization

The best financial aggregators also let you set up rules that automatically categorize and tag your expenses so you can customize that picture. You might want to see your 401(k) contributions to make sure you’re maxing them out, or you might want to pull a report at the end of the year to see if you should itemize your deductions.

An aggregator stays on top of the categorization work that makes those reports possible, and it can even generate the reports for you. So you get the information you need without all the work.

3. Watch your money while you sleep

Aggregators can track your transactions 24/7, alerting you about unexpected transactions or potential fraud — or just gently reminding you about that one bill you like to pay manually every month. 

The best aggregators are highly configurable, so you can choose the alerts you want and even change how they work. Instead of settling for what someone else thinks is a “large” transaction or a “low” bank balance, you can define those limits for yourself.

4. Get richer, more in-depth insights

Even if you’ve been managing your money closely and building the spreadsheets and reports you like to track, a financial aggregator may offer reports you hadn’t considered — or that you wouldn’t want to take the time to build. 

The best aggregators come with calculators and planning tools built in, like a retirement planner that lets you change your projected retirement age, investment returns, and so on — to see how those changes affect your financial projections. 

5. Share your data with peace of mind

Financial aggregators offer secure data sharing so you can easily manage and plan your finances with the people you trust. Plan your retirement with a partner, prepare for tax season with an accountant, or share your investment portfolio and performance with a financial advisor. 

Whether you just want to email static reports or give a trusted partner access to more dynamic information, aggregators give you that choice, keeping the control in your hands. 

Consider an aggregator with over 40 years of trust

For over 40 years, more than 20 million customers have relied on Quicken’s financial aggregation software. Featured in CNBC’s World’s Top Fintech Companies 2024 and awarded Editors’ Choice by PC Mag, Quicken offers a suite of personal finance and life management solutions, including:

• Quicken Simplifi for personal finances
• Quicken Business & Personal for self-employed individuals and small business owners
• Quicken LifeHub for organizing, protecting, and sharing life’s essential information

But if you’re considering a job that offers a pension, it’s important to understand how they work. 

What is a pension?

Pensions are employer-sponsored retirement plans that guarantee payouts in retirement. Since they define minimum benefit levels upfront, they’re also known as defined benefit plans.  

Pensions require employers to contribute funds toward their employees’ retirement. This money is pooled and invested at the company’s discretion. Ideally, these investments generate income to pay for retirement payouts. 

The different types of pension plans

Traditionally, employer-funded plans are categorized as pensions, though many plans can help you save for retirement.

Defined-benefit plans 

Traditional pensions guarantee employees a minimum level of income in retirement. Most benefit calculations use formulas that consider age, salary, and years of employment. Unlike other retirement plans, defined-benefit plans are funded primarily or solely by employers. 

Defined-contribution plans

Defined contribution plans allow employees to divert some of their wages into retirement accounts. Employers can also contribute, usually up to a set percentage of a worker’s salary. 401(k)s are among the most well-known defined-contribution plans. 

However, some defined-contribution plans also qualify as pensions. For instance, profit-sharing plans let employers share company profits with employees. As discretionary plans, employers can choose how much to contribute annually. 

Public vs. private pensions

While increasingly rare, some private companies continue to offer pensions. To protect employees’ retirement, companies that offer private pensions must: 

• Properly fund eligible employees’ pensions
• Keep pension funds separate from business funds
• Purchase pension insurance through the Pension Benefit Guaranty Corporation (PBGC)

Today, public pensions are far more common than private pensions. Around 34 million federal, state, and local government employees participate in these plans. This number includes former and current teachers, firefighters, and police officers, among others. 

Unfortunately, public pensions don’t adhere to the same regulations as private pensions. As a result, many are underfunded, which impacts employees’ benefits.

How pensions work

Public or private, most pensions share a similar set of characteristics. Here’s what to know.  

Contributions and funding

Unlike the more common 401(k), pensions are primarily funded by employers. Some plans allow (or require) employees to contribute some of their paychecks, too. These pooled contributions get invested into a professionally managed fund to grow until retirement.   

Vesting schedules

Most pensions require funds to “vest” before employees can receive their full benefits. To become vested, you have to stay with the company for a minimum number of years. Companies may use one of two vesting schedules:

• Cliff vesting: All your benefits vest at once, usually after 5-7 years
• Graded vesting: A percentage of your benefits vest each year until you reach 100%

Importantly, if you leave the company before you’re vested, you lose your employer’s contributions. (Though you will receive back any money you’ve contributed.)

Spousal benefits

When it comes to spousal benefits, pension earners can choose from two payout schedules:

• Single life benefit plans only pay out to the pension earner. When they die, benefit payments cease. Any remaining employee contributions will be paid out to the deceased’s survivors.  
• Joint and survivor benefit plans pay out as long as the pension-earner lives. Upon their death, their survivor(s) receive survivor’s benefits until they die, too. The survivor benefit may pay anywhere from 50% to 100% of the original pension payout. 

It’s important to choose your plan wisely. Many pensioners choose the joint plan to ensure their loved ones are taken care of if they pass first. However, single-life benefit plans typically make larger payments. 

Understanding the relationship with Social Security

Technically, Social Security is a pension program funded by workers’ taxes. However, as of 2021, 27% of state and local government workers weren’t covered by Social Security. Since these workers have a public pension coming their way, they don’t pay Social Security payroll taxes, disqualifying them from SS benefits.

Payout options available

Your pension payout is based on a formula that considers your:

• Salary
• Years worked for the company 
• Age

Once you retire, you may have one or two payout options: lump-sum distributions or annuities. 

Lump-sum distributions

Lump-sum payments are what they sound like. When you retire, your employer pays your entire pension upfront. Then, it’s up to you to save, invest, and spend your pension wisely. 

You might roll your payout into another tax-sheltered account, like an IRA. Or, you can pay taxes on the whole amount and stash the rest in a high-yield savings account or CD. 

Some pensions only pay a partial lump sum equal to your contributions. The remainder of your pension will then be paid out as an annuity.

Annuities

Many pensions follow the annuity structure. Annuity pensions make regular monthly payments for the duration of an employee’s retirement. Annuities often pay a fixed amount and may or may not include inflation protection. If included, inflation protection adjusts your annuity payments based on the cost of living to prevent inflation from eating your hard-earned dollars. 

Pensions vs. 401(k) plans

401(k)s are a type of defined contribution plan, but they are *not* the same as pensions. These investment accounts have largely replaced pensions in recent decades. The shift has allowed employers to shift the financial burden — and risks — of retirement investing to employees. 

Funding differences

With traditional pensions, employers are responsible for fully funding employees’ retirement. Some pensions also permit (or require) employees to make contributions.  

401(k)s, meanwhile, are funded by employees first. Some companies match an employee’s contributions to a point. (Usually 2-5% of an employee’s annual wages.) However, companies won’t invest if the employee doesn’t, pushing the retirement burden onto employees. 

Benefits comparison

Pensions and 401(k)s both help employees save for retirement — but differ in several key benefits. 

For one, annuity pensions provide monthly payments until the beneficiary dies. But 401(k)s require retirees to manage (or mismanage) their own funds for life.  

The age of retirement also differs. 

Pensions don’t allow you to withdraw funds until a specified age. Defined-contribution pensions may let you retire as young as 55. Some wait until you’re 65. Others set requirements like the “Rule of 80,” which states your age and years of service must add up to 80 before you can draw your pension. 

By contrast, the IRS requires you to be at least 59.5 before withdrawing from your 401(k). Above that age, you can withdraw funds on your schedule. But making withdrawals before then (with limited exceptions) can trigger financial penalties.  

Risks associated with pension plans

Pensions offer protections that 401(k)s simply don’t. However, they’re not risk-free. 

Financial stability of pension funds

One major concern for pension earners is whether their employer will actually pay out. If the pension fund loses value or the company declares bankruptcy, your payments could be at risk. Even if your company has PBGC insurance, you may not receive your full benefits. 

Public pensioners face additional risks. To start, many public pensions are chronically underfunded, limiting beneficiaries’ payments. Plus, public pensions don’t buy PBGC insurance, leaving former public servants without a safety net. 

Inflation’s impact on pensions

Some pensions make cost-of-living adjustments to ensure benefits keep pace with inflation. But many don’t, which means your income won’t stretch as far the longer you live. 

Lump-sum recipients also have to consider how to make their dollars stretch with rising prices. This may look like investing funds in high-yield savings accounts, TIPS, or other inflation-beating assets.

Tips for preparing for retirement

Whether you have a pension, 401(k), or another account, you shouldn’t wait for retirement to catch up with you. It’s important to get ahead — and stay ahead — so you can enjoy the retirement of your dreams. 

Save early and often

The big key to preparing for retirement is saving as early and often as you can. Even if you can only stash a few dollars a month, that’s better than nothing! The earlier you start, the more time compound interest has to boost the value of your investments. And as you grow in your career and earnings, you can increase your savings to match.  

Know how much you need

It’s wise to save for retirement — and even better if you have a goal in mind. Even if you don’t know exactly how much you’ll need, setting your sights on a target makes it more likely you’ll stay on track.   

Evaluating retirement plan options during your career

You probably shouldn’t base your entire career around a retirement plan, but it can be a deciding factor. As you move up in your career, keep an eye on prospective employers’ retirement options. If it comes down to a pension or 401(k), evaluate what each account brings to your table. You might also consider tossing in an IRA (individual retirement account) to further boost your savings potential.  

Common pension FAQs

So far, you’ve gotten a good look at how pensions work. Now, it’s time to dive into some frequently asked questions. 

How can I find out if I have a pension?

There are two easy ways to find out if you have a pension. The first is to contact your current or former employers’ HR department and ask about pension benefits. You can also search for an unclaimed pension on the Pension Benefit Guaranty Corporation website. 

What happens to my pension if I change jobs?

Unfortunately, pensions aren’t very portable. If you change jobs, you may have to leave your pension behind and claim your benefits when you retire. Some companies let you roll your pension into another retirement account. But be warned: if you’re not fully vested, you’ll forfeit your pension when you leave. 

Can pensions be inherited?

Yes, some pensions can be inherited. Joint and survivor benefit plans pay out partial or full pension benefits to spouses or other eligible survivors when a pension earner dies.

Whether you’re evaluating new opportunities, planning for growth, or making sure your business stays competitive, a well-crafted SWOT analysis helps you make confident decisions based on real data.

What is SWOT analysis?

SWOT analysis is a practical tool that helps you evaluate your business from four key angles: Strengths, Weaknesses, Opportunities, and Threats. Think of it as taking a snapshot of your business from different perspectives, helping you see what’s working well and what needs attention.

Unlike complex business evaluation methods that require extensive (often expensive) research, SWOT analysis organizes what you already know about your business into a format that makes patterns and possibilities clear. 

Meet Elena

“Elena” is invented but her story is very real, based on many years of experience running service-based businesses. As an independent architect, she built her reputation designing innovative spaces for small commercial clients. Her keen eye for detail and ability to blend function with style earned her a growing stream of referrals, and soon she found herself bringing in specialist contractors to help with larger projects.

But growth brought unexpected challenges. Managing multiple projects while maintaining quality became increasingly complex. Elena needed a way to evaluate her business objectively and make strategic decisions about its future. She used SWOT analysis to transform her approach to business planning.

SWOT analysis can help you:

• Evaluate growth opportunities with concrete data
• Make your greatest successes more predictable and repeatable
• Understand what truly sets your business apart
• Turn your business insights into meaningful action

A real-world example of SWOT analysis 

Let’s look at how Elena used SWOT analysis to evaluate her architecture practice. Her approach can work for any business, helping you turn observations into actionable insights.

Strengths

Elena started by sifting through her client feedback, project outcomes, and the kinds of projects that consistently earned her referrals. This helped her identify what her business did exceptionally well.

She discovered that her sustainable commercial design projects tended to be more profitable than others, and she noticed that her designs in retail and restaurant spaces often led to referrals. Other strengths included strong relationships with reliable contractors and an excellent reputation for meeting deadlines and budgets.

This clear picture of her strengths helped Elena make better decisions about which projects to pursue and how to market her services.

Weaknesses

As Elena examined her business challenges, she noticed several areas that needed attention. 

Her success with larger projects was revealing a capacity issue — she could only effectively manage a few at a time. Her project management processes varied from client to client, creating inconsistencies that sometimes led to confusion. She also realized she had no systematic way to stay in touch with past clients, potentially missing opportunities for repeat business. Even her website, she admitted, wasn’t keeping pace with her best work.

By identifying these weaknesses objectively, Elena was able to prioritize the improvements that could have the biggest impact on her business.

Opportunities

As Elena studied market trends and reflected on recent client requests, several promising opportunities emerged. 

She noticed a growing demand for sustainable retail spaces, perfectly aligning with her expertise. Restaurant owners were also increasingly seeking renovation services, an area where she’d already proven her capabilities. She was even receiving inquiries from clients in neighboring cities, suggesting potential for geographic expansion. Additionally, several clients had asked about quick-turnaround design consultations, hinting at a possible new service offering.

This analysis helped her focus on opportunities that aligned with her strengths while addressing her weaknesses.

Threats

Finally, Elena took a careful look at potential threats to her business. 

She’d noticed several new architecture firms moving into her market, increasing competition for projects. Contractor costs were rising steadily, putting pressure on project budgets. The retail sector, a significant source of her work, was facing economic uncertainty. Meanwhile, local building regulations were becoming more complex, requiring additional time and expertise for compliance.

Understanding these threats helped her develop strategies to protect and strengthen her business.

Creating your own SWOT analysis: A step-by-step guide

Now that we’ve seen how Elena uses SWOT analysis in her architecture practice, let’s walk through the process of creating one for your own business. Each step builds on the previous one, helping you create a thorough analysis that drives real results.

Step 1: Gather your data

Start by collecting concrete information about your business performance. Review your financial metrics, including revenue trends, project profitability, and cash flow patterns. (If you’re using Quicken, be sure to run these reports on your business finances.)

Beyond the financials, gather feedback from your clients and contractors. What do they say about working with you? What keeps them coming back? Also, take time to understand your market: who else serves your clients, what trends are emerging, and what changes might affect your business.

Step 2: Analyze your strengths

Look for patterns in your successful projects. Which services consistently generate the most profits or the most positive feedback? What aspects of your work do clients mention when referring you? Pay special attention to elements that set you apart from others in your field.

Consider tracking metrics that validate your strengths. For Elena, this meant documenting her project completion rates, budget accuracy, and client satisfaction scores. These numbers transformed general impressions into concrete proof of her capabilities.

Step 3: Assess your weaknesses

Approach this step with curiosity rather than judgment. Review projects that faced challenges or clients who didn’t return. Look for patterns in tasks you consistently postpone or aspects of your business that cause stress.

Use your financial data to spot potential issues. Are certain types of projects less profitable? Do some activities take more time than they’re worth? This objective approach helps you identify areas for improvement without getting caught up in self-criticism.

Step 4: Identify opportunities

Start with your current clients’ unmet needs. What additional services do they request? What challenges do they face that you could help solve? Review your market for trends that align with your strengths.

Consider both obvious and subtle opportunities. Elena discovered that her expertise in sustainable design opened doors to consulting work, creating a new revenue stream she hadn’t initially considered.

Step 5: Evaluate threats

Begin with external factors that could impact your business: market changes, new competitors, or shifting client needs. Then consider internal threats, such as capacity limitations or an overreliance on specific clients or contractors.

Document both immediate and potential future threats. This forward-thinking approach helps you spot challenges early while you still have plenty of options to address them.

Step 6: Create your action plan

Transform your analysis into specific, prioritized actions. Focus first on opportunities that leverage your strengths or address critical weaknesses. Create clear, measurable goals and set realistic timelines for achieving them.

Quick win: Your 20-minute SWOT starter

Want a rapid analysis that you can complete in just 20 minutes? Start by listing your three most successful projects from the past year and ask yourself these 3 questions:

• What made them work well? 
• What challenges did you overcome? 
• What opportunities do they reveal?

Take notes using a simple table with four columns: Strengths, Weaknesses, Opportunities, and Threats. Even this quick exercise often reveals surprising patterns and possibilities.

Tips for success

Creating a SWOT analysis is the first step — next, it’s time to put it to work. Here’s how to turn that analysis into results.

Keep it focused

Concentrate on factors that directly impact your business goals. Don’t get sidetracked by outliers, such as a single disgruntled client. Instead, look for patterns. This targeted approach keeps your SWOT analysis practical and actionable.

Use clear measurements

Track specific metrics that matter to your business, such as project profitability, client satisfaction scores, and response times. Review these numbers during each SWOT update to ensure your analysis reflects reality rather than assumptions.

Involve key people

Share relevant parts of your analysis with trusted contractors and gather their insights. Consider client feedback when evaluating your strengths and weaknesses. This collaborative approach enriches your analysis while maintaining appropriate professional boundaries.

Review and adjust

Update your SWOT analysis whenever you achieve significant goals or face new challenges — or use a quarterly cadence to keep it current. Pay attention to which actions create the most positive impact and adjust your strategy accordingly, keeping your analysis relevant and useful.

Link to long-term planning

Use your SWOT insights to guide major business decisions. When setting goals for the next year or evaluating new opportunities, refer back to your analysis. This connection between analysis and action helps you make confident, informed choices.

Scale your analysis as you grow

Adapt your SWOT process as your business evolves. Add new metrics when needed, but maintain the core simplicity that makes the tool so valuable. This balanced approach helps you gain sophisticated insights without getting lost in complexity.

Insights to results in just 30 days

For a 30-day SWOT action plan, try completing your first SWOT analysis and turning just one insight into an action plan that you would expect to make a difference within 30 days. Be sure to note any metrics that you expect to change—as well as what those metrics say today—so you can measure and track your progress.

This guide offers everything you need to know to leverage this powerful retirement vehicle to its full potential.

What is a solo 401(k) and do you need one?

A solo 401(k) is a retirement savings plan designed to cover a business owner with no employees, or that person and their spouse. It offers similar benefits to a traditional 401(k) but allows you to wear two hats — employee and employer — meaning you can contribute in both roles, significantly boosting your retirement savings potential.

Why should you consider a solo 401(k)?

If you’re self-employed, the solo 401(k) can be a game-changer for your retirement planning. It offers high contribution limits, giving you the opportunity to save more than you could with other retirement accounts. Plus, it provides the flexibility to choose how you invest your funds, from mutual funds and stocks to ETFs.

Beyond its savings potential, the solo 401(k) also gives you more control over your retirement planning. You’re not limited to what an employer offers — you decide how much to contribute and where to invest your money. This level of autonomy makes it an attractive option for self-employed individuals who want to take their retirement planning into their own hands.

Are there downsides to a solo 401(k)?

While a solo 401(k) offers many benefits, there are some drawbacks to consider. One of the biggest challenges is the administrative responsibility. You’ll need to keep detailed records and, once your account balance exceeds $250,000, file an annual Form 5500-EZ with the IRS.

Additionally, a solo 401(k) is only available to businesses without full-time employees. If you plan to grow your business and hire staff, you’ll need to transition to a different retirement plan.

Who can open a solo 401(k)?

The one-participant 401(k) plan is simply a traditional 401(k) plan that covers a business owner with no employees, or that person and his or her spouse. These plans have the same rules and requirements as any other 401(k) plan. If you meet these criteria, a solo 401(k) can be one of the best retirement savings tools at your disposal.

Which providers offer solo 401(k) plans?

Several reputable financial institutions offer solo 401(k) plans. Each provider offers different features, such as investment options, fees, and online tools. 

Compare your options to find a provider that aligns with your retirement goals and offers user-friendly account management tools.

How does a solo 401(k) work?

A solo 401(k) works by allowing you to contribute to your retirement savings in two ways — as both the employee and the employer. This dual role means you can make higher contributions compared to other retirement plans.

What are the tax benefits of a solo 401(k)?

Both traditional and Roth 401(k)s have tax advantages — the difference lies in when those benefits occur.

With a traditional solo 401(k), your contributions are tax-deductible, which can lower your taxable income now. Alternatively, with a Roth solo 401(k), your withdrawals are tax-free later, during your retirement.

These tax advantages can help reduce your overall tax burden now or in the future, depending on which account type you choose.

What’s the difference between traditional and Roth solo 401(k) accounts?

The main difference between traditional and Roth solo 401(k) accounts is when you pay taxes. With a traditional account, your 401(k) contributions are made pre-tax, reducing your taxable income now. However, you’ll pay taxes on your withdrawals in retirement.

With a Roth solo 401(k), you contribute after-tax dollars now, meaning there’s no immediate tax break. But in retirement, your withdrawals are entirely tax-free, including any investment gains.

How much can you contribute to a solo 401(k)?

For 2025, self-employed individuals can contribute up to $23,500 as the employee. If you’re over 50, you can make an additional catch-up contribution of $7,500, bringing the total to $31,000. As the employer, you can contribute up to 25% of your compensation as defined by the plan, with a combined total limit of $69,000 (or $76,500 if you’re 50 or above).

When do you need to set up your plan?

To contribute to a solo 401(k) for a given tax year, the plan must be established by December 31 of that year. Contributions, however, can be made until your tax filing deadline, including extensions. This flexibility allows you to maximize your contributions while managing your cash flow.

How does a solo 401(k) compare to other retirement plans?

If you’re considering a solo 401(k), it’s helpful to compare it to other retirement plans available to self-employed individuals.

What is a SEP IRA?

A SEP IRA (Simplified Employee Pension) is another retirement plan for self-employed individuals and small business owners. It’s easier to set up than a solo 401(k) and has similar contribution limits. However, a SEP IRA doesn’t allow for employee contributions — only employer contributions are permitted. It also lacks the Roth option available in a solo 401(k).

What is a SIMPLE IRA?

A SIMPLE IRA (Savings Incentive Match Plan for Employees) is typically used by small businesses with up to 100 employees. It allows both employer and employee contributions but has lower contribution limits compared to a solo 401(k). For most self-employed individuals, a solo 401(k) offers greater flexibility and higher savings potential.

How do you set up a solo 401(k)?

Setting up a solo 401(k) may seem daunting, but it’s relatively straightforward if you follow these five steps.

Step 1: Choose a provider

Start by selecting a financial institution that offers solo 401(k) plans. Compare fees, investment options, and account management tools to find the best fit for your needs.

Step 2: Complete the paperwork

Fill out the necessary forms provided by your chosen institution. This will include information about your business and the plan’s setup.

Step 3: Create a plan document

The IRS requires a formal plan document outlining the rules of your solo 401(k). Most providers will supply this as part of their setup process.

Step 4: Open the account

Once the paperwork is complete, your provider will open your solo 401(k) account. You can then begin making contributions.

Step 5: Start contributing

With your account set up, you can start contributing as both the employee and the employer. Keep track of your contributions to ensure you stay within the annual limits.

Track your 401(k) savings

Setting up a solo 401(k) is just the first step — you also need to monitor your savings to make sure your retirement plan stays on track. While your 401(k) provider will have a website to track your account balance, it only shows part of the picture.

Using a tool like Quicken Simplifi can give you a more complete view of your retirement savings. Simplifi lets you track all your retirement accounts and investments in one place, helping you see your progress toward your long-term goals. Regularly reviewing your savings ensures you stay on course and make adjustments as needed to secure a comfortable retirement.

My credit utilization rate was too high and it was affecting my credit rating. But it was easy enough to fix, and boy, am I glad I did!

Credit utilization is a simple concept, but it can have a big impact on your financial life. In this guide, we’ll break down what the credit utilization ratio is, how to calculate it, and why it matters — with six practical tips to keep it in check.

What is a credit utilization rate?

Your credit utilization rate (or ratio) is the percentage of your available credit that you’re currently using or the percentage of available credit that you’re using on your credit cards and other lines of credit.

In simpler terms, it shows how much of your total credit limit you’ve borrowed at any given time. This ratio is a major factor that credit bureaus consider when calculating your credit score.

How to calculate your credit utilization ratio

Calculating your credit utilization ratio is straightforward. You divide your total balances on credit cards and lines of credit by your total credit limits, then multiply by 100 to get a percentage. 

This ratio shows how much of your available revolving credit you’re using, which is important because both credit cards and lines of credit are forms of revolving credit that impact your credit score.

Examples of calculating a credit utilization rate

Example 1:

You have one credit card with a $1,000 limit.

• Current balance: $300
• Credit utilization ratio:
  ($300 ÷ $1,000) × 100 = 30%

Example 2:

You have one credit card and one line of credit.

• Credit Card A:
  • Balance: $500
  • Credit limit: $2,000
• Line of Credit A:
  • Balance: $1,500
  • Credit limit: $3,000
• Total balances:
  $500 (credit card) + $1,500 (line of credit) = $2,000
• Total credit limits:
  $2,000 (credit card) + $3,000 (line of credit) = $5,000
• Credit utilization ratio:
  ($2,000 ÷ $5,000) × 100 = 40%

Including lines of credit in your calculation provides a more accurate picture of your overall credit usage. These calculations help you understand how much of your available credit you’re using, which can impact your credit score and financial health.

Do all types of credit accounts affect my credit utilization ratio?

Not all credit accounts impact your credit utilization ratio. This ratio specifically applies to revolving credit accounts, such as credit cards and lines of credit. 

Revolving credit allows you to borrow up to a certain limit and pay back the borrowed amount over time, with the flexibility to borrow again up to that limit as needed. The balance on these accounts can fluctuate from month to month, which is why they’re included in the utilization calculation.

Installment loans, on the other hand — like mortgages, auto loans, student loans, and personal loans — are not included in your credit utilization ratio. These loans involve borrowing a fixed amount of money and repaying it in set installments over a predetermined period. 

While installment loans do affect your overall credit health and are reported on your credit report, they don’t impact your credit utilization ratio because they don’t offer the revolving line of credit that allows for variable borrowing and repayment.

What is a good credit utilization rate?

A good credit utilization rate is typically below 30%. This means you’re using less than 30% of your total available credit. 

If you want an excellent credit score, you’ll need to keep your utilization rate below 10%.

Lenders and credit bureaus view lower utilization rates favorably because they suggest you’re managing your credit responsibly and not relying too heavily on borrowed money.

How credit utilization affects your credit score

Your credit utilization ratio significantly impacts your credit score. It’s one of the major factors in the “amounts owed” category, which makes up about 30% of your FICO score. 

A high utilization ratio can signal to lenders that you’re overextended, which may lower your credit score. Conversely, a low utilization ratio shows that you’re using credit wisely, which can boost your score.

6 tips to lower your credit utilization rate

Reducing your credit utilization ratio can improve your credit score and make you more attractive to lenders. Here are seven practical tips to help you achieve a lower ratio.

Tip 1: Pay down your balances strategically

Focus on paying down balances on your credit cards with the highest interest rates first. By reducing the amounts you owe on these cards, you can save money on interest payments and lower your overall utilization more effectively.

Tip 2: Increase your credit limits

Requesting a credit limit increase from your card issuer can lower your utilization ratio — provided you don’t increase your spending. Before you ask, ensure that a hard inquiry won’t be required, as this could temporarily affect your credit score.

Tip 3: Make your payments early

Consider making credit card payments early to keep your balances low. By reducing your balance before the statement closing date, you may be able to lower the balance that gets reported to credit bureaus.

Tip 4: Keep unused credit cards open

Even if you don’t use certain credit cards regularly, keeping them open adds to your total available credit. Closing them would reduce your total credit limit, potentially increasing your utilization ratio.

Tip 5: Avoid new debt

Be cautious about taking on additional debt. Limiting new purchases on your credit cards helps prevent your balances from increasing and keeps your utilization ratio in check.

Tip 6: Monitor your credit reports

Regularly check your credit reports to ensure all information is accurate. Errors or fraudulent activities can inflate your reported balances and utilization ratio. Dispute any inaccuracies you find promptly.

Take control of your credit with Quicken

With Quicken, you can easily review your credit score, see the factors affecting it, and stay on top of your credit balances to improve your credit score over time.

FAQs about credit utilization

Have more questions? Below are a few of the most commonly asked questions about credit utilization.

How often should I check my credit utilization?

It’s a good idea to check your credit utilization at least once a month, especially before making significant financial decisions like applying for a loan. Regular monitoring helps you stay aware of your credit health and address any issues promptly.

Can I have a high credit utilization and still have a good credit score?

While it’s possible, a high credit utilization ratio will keep your credit score lower than it would be otherwise. Keeping your utilization low is one of the simplest ways to improve or maintain a good credit score.

What happens if my credit utilization ratio increases?

An increase in your credit utilization ratio can lower your credit score. Lenders may view a higher ratio as a sign that you’re relying too much on credit, which could make you a riskier borrower in their eyes.

Is it better to pay off my credit card in full or keep a small balance?

It’s best to pay off your credit card in full each month. Carrying a small balance does not improve your credit score and results in unnecessary interest charges. 

Just remember to use each card you own about once a year or so to keep the accounts open — even if you pay off the balance immediately.

Does requesting a credit limit increase hurt my credit score?

It can, but the impact is usually small. Creditors may perform what’s called a “hard inquiry” when you request a limit increase, which can lower your score temporarily. 

The same thing is true when you request a new loan, so it’s best not to make hard inquiries too often. Hard inquiries generally remain on your credit score record for 2 years.

Broadly speaking, private equity investing can take many forms including venture capital and private equity (“buyout”) funds, or private companies of different stages and sizes.

In some ways, investing in private equity is similar to real estate investing. Both are typically direct bilateral transactions without a public quoted price. Both are illiquid (i.e. you can’t just sell them like a share on an exchange), but both give you a return profile that’s uncorrelated to public markets.

The risks in private equity are higher, and the returns can be higher. There’s also a mortgage market that lets you leverage your capital when it comes to real estate. In venture capital and seed investing, there’s little leverage available, while in more mature companies there’s often leverage on the business or businesses that a private equity fund would own.

Still, both real estate and private equity share at least one advantage. They let you get closer to the thing you’re invested in, depending on how you do it. But before we get into the how, let’s take a step back and look at private equity investing as a whole — what it is, how it works, and how you can get into it.

What is private equity investment?

Private equity investment is really two different buckets of investing. In one bucket you have private equity funds, and in the other you have private direct investment. Either way, these opportunities usually come to you through relationships.

Often financial advisors, particularly associated with larger financial institutions, will have access to private equity. They might create a feeder-type entity so individuals can invest in relatively small quantities into funds that typically cater to institutional investors. Or maybe you’re a qualified investor, you know someone who’s putting something like that together, and you want to be a part of it.

Private direct investment also happens through relationships, just in a different way. Maybe someone you know is starting a company and you want to provide seed money (that first capital that gets something off the ground). You invest in the company, whatever it is, and you get some level of equity.

No matter which form private equity investment takes, you’re going to want to keep track of your assets in terms of both net asset value (or NAV) and your cash flows.

Finding opportunities for private equity investment

If you already have a 401k, maybe a private brokerage account and some real estate, and you’re looking to branch out into direct investments, the best way to do that depends on how much time you have.

There are startup companies, for example. A handful of folks have an idea and they raise a little money or use their own money to sketch that idea out.

These aren’t publicly traded securities. They’re private, closely held opportunities, and the way you get access to invest in those is typically because you know one of the founders. Someone comes to you and says, “I want to start a bookseller site and I need $500,000 in capital. I’m going to put up $200,000, and I’m going to go to my buddies and they can each put in $25,000.”

But there are other opportunities that are more intentional. Local angel groups might pool their funds and invest locally. They’ll get together and hear pitches, investing a bit in several different things to create a small portfolio.

If you want to get into direct investment, it usually isn’t something you’re doing on a one-off basis. You’re building a portfolio of 5 or 10 opportunities. Maybe more.

You’re also going to reserve additional capital because they’re going to need more as they grow, and you want to be there to back up your investment. Plus, you need to be able to weather the illiquidity because it could be several years or more before that money comes back on return.

That’s why the portfolio approach is so important — early-stage investments are the most high risk and least liquid but often have the highest return profile.

Valuing your private equity investments for tracking purposes

One of the interesting things about private equity investments is that you can’t just track the market when it comes to tracking their value. For publicly held stocks, for example, you can push that button in Quicken and see all your values move around.

With private equity investment, you can’t do that, and that can be a really good thing. It keeps you closer to those investments. You have to be a little more involved with them — not in terms of managing the companies, of course, but in terms of tracking their NAV.

If you’re invested in a private equity fund, that fund will send a NAV every quarter, half-year, or year.

For direct investments, you won’t get a NAV report, so figuring out the value of that investment is more anecdotal. For example, if you invested in a business that had a large up-round — a significant increase in value led by a large institutional investor — you might write that up. But it’s a high bar.

What’s the best way to track private equity investments?

If you’re in Quicken, your cash flows will populate in your automatic feeds — things like sending a check for a capital call, sending out a wire, or receiving money in.

To attribute those cash flows to an investment, you’ll have to create an entity and manage it line by line. People do that in different ways and to different degrees of sophistication, but at a minimum, you want to get a sense of how the cash flows are moving.

Here’s how to track private equity investments in Quicken

1. Create a private equity account with a zero asset value. Remember to make it a manual account. It’s a private investment, so there won’t be any automatic downloads to or from it directly. You’ll have to update the account yourself.
2. Transfer your initial capital call to the private equity account. Typically, for the first capital call, you’ll write a check or wire the money out of your bank account. That transaction will come in from your bank as an automatic update — minus $5,000 or minus $8,000 for example. Take that value and transfer it to the private equity account, giving it a positive addition in the same amount.
3. Increase the value by future calls and adjust for NAVs. As you add more capital to the investment, transfer the investment to the private equity account each time, increasing the value. If it’s a private equity fund that’s sending you reports, adjust the value manually to reflect the value reported as those come out. If you label it “Increase (or Decrease) in value,” the value in Quicken will always represent the most recent NAV plus any capital you’ve added since, and your historical Quicken data will represent those changes over time.
4. Adjust for cash received. Hopefully, that fund is going to send you cash back. As it does, those funds will show up in your bank account, and you’ll need to transfer that amount from your private equity account in Quicken. At times, that will make your private equity account look “overdrawn,” showing a negative value because the fund produced more than you put in (which is what you want from any investment). Simply true up the account by adding a manual increase in value to what the post-distribution NAV should be.

Using this process, you’ll track the hard cash flows in and out of your bank account as well as all the value moves of the private investment, which is great for historical performance.

It’s also helpful when you start thinking about capital planning. If you have 5 or 10 of these, for example, and you’re going to be capital called year after year after year, using this system to track your private investments in Quicken is a great way to plan for that.

Into investing? Track your portfolio in Quicken.

Whether you have a significant portfolio or you’re looking to build one over time, Quicken is built to make tracking your finances and investments more intellectually clear.

It’s built to be a tool — with a seriousness of purpose. You can run your household on it. You can manage your investments on it, both public and private. You can see your whole financial picture and how that picture is moving.

Quicken has been helping people set and track key performance indicators and reach their financial goals for more than 35 years. If you’d like to see how it works, you can download and try it risk free with our 30-day, money-back guarantee.

Whether you’re juggling client projects, coordinating your team, or trying to maintain consistent quality across your services, the right operational plan can transform daily chaos into manageable routines.

What is operational planning?

Think of operational planning as your business’s playbook — a practical guide that translates your big-picture goals into daily actions. 

It’s not about creating complex spreadsheets or lengthy documents. Instead, it’s about developing clear systems that help you deliver consistent value to your clients while making your business easier to manage.

Meet Marcus

“Marcus” is invented but his story is very real, based on many years of experience running more than one small business. As a solo IT consultant, Marcus built his reputation on providing exceptional technical support to small businesses. His expertise in solving complex IT problems earned him a growing client base, and he brought in a contractor friend to help handle the workload.

But success brought its own challenges. What started as an occasional need for extra help evolved into a network of specialized contractors, each with their own scheduling demands and working styles. Marcus found himself spending more and more time coordinating projects, making him feel stressed and overwhelmed by the business he used to love.

Quick check: Which of these sound familiar?

• Spending your weekends “catching up” on scheduling
• Never quite sure if your team will be available when you need them
• Struggling to maintain consistent quality when you can’t be everywhere at once
• Finding yourself reinventing the wheel with each new project

If you nodded along to any of these, you’re not alone. These were exactly the challenges that led Marcus to develop an operational plan that transformed his business.

What operational planning can do for a small business

Before creating his operational plan, Marcus’s typical week looked familiar to many business owners. Each work day brought at least an hour of back-and-forth messages about routine projects. Quality varied depending on which contractor handled the work, and potential clients sometimes slipped away because Marcus couldn’t confirm resource availability fast enough. He spent 2-3 hours on Saturdays fixing issues for clients, and Sunday nights meant another three hours of contractor scheduling and project coordination. 

The transformation didn’t happen overnight, but the results were dramatic. Today, Marcus spends just 15 minutes on weekly schedule updates. Daily contractor coordination takes 10 minutes or less. Service quality is consistent across his contractor network, and he has clear procedures that answer routine questions before they’re asked. Best of all, he can confidently take on larger projects, knowing his operational system can handle the complexity.

Take a moment to think about your biggest time drain right now. As we explore each component of operational planning, consider how these solutions might help you reclaim those lost hours.

What makes a good operational plan?

Before diving into the specifics, it’s important to understand what sets operational planning apart from other types of business planning. While both are essential, they serve different purposes and work on different timelines.

How it differs from a business plan

A business plan is your long-term strategy — your destination and the major milestones along the way. Your operational plan is your daily GPS, providing turn-by-turn directions to reach those milestones.

Marcus learned this distinction when planning his company’s expansion. His business plan outlined goals like “expand service offerings” and “increase monthly revenue.” His operational plan detailed exactly how to make that happen: which contractors to bring in, what training they needed, and how to maintain quality while scaling up.

Quick win: Your 15-minute operational planning starter

The breakthrough for Marcus came from a simple template that organized his daily operations. Start with these three questions:

1. What tasks do you repeat at least weekly?
2. Which decisions regularly slow you down?
3. What questions does your team frequently ask?

Track your answers for just one week. You’ll quickly spot patterns that reveal where an operational plan can make the biggest difference.

Components of an effective operational plan

A strong operational plan addresses four key areas: 

1. Service delivery standards 
2. Resource planning 
3. Timelines 
4. Risk management 

For Marcus’s IT consulting business, this meant creating clear procedures for common technical issues, establishing a reliable system for contractor availability, setting regular review points, and developing backup plans for when things don’t go as expected.

Which of these components would make the biggest difference in your daily operations? Keep that in mind as we walk through the steps of creating your plan.

Creating your operational plan: A step-by-step guide

Now that we understand what makes an operational plan effective, let’s walk through creating one that works for your business. We’ll follow Marcus’s approach, adapting it to work for any service-based business.

Service delivery standards

The foundation of any service business is consistent quality. For Marcus, this meant moving beyond the “it’s all in my head” approach to documenting exactly how his business delivers its services.

Start with your core services. Marcus listed everything from routine maintenance to emergency support, then documented his exact process for each one. This became his blueprint for training contractors and ensuring consistent quality.

He discovered that what seemed obvious to him wasn’t always clear to others. Simple things like how to greet clients, what information to collect during the first contact, and how to document solutions made a huge difference in service quality.

Reality check: When first standardizing his services, Marcus made the common mistake of creating overly complex procedures. Effective standards need to be detailed enough to ensure quality but simple enough to follow under pressure. Focus on what matters most to your clients.

Resource planning

As businesses grow, resource planning is critical. Marcus transformed his contractor coordination from a constant juggling act into a smooth system.

He started by creating a clear availability system. Instead of checking with each contractor individually for every new project, he built a shared calendar where contractors could mark their availability in advance. This simple change eliminated hours of back-and-forth communication.

Budgeting became another priority. Marcus started tracking his projects and expenses in accounting software, sending out auto-filled invoices as soon as each project was done. This proactive approach prevented unexpected expenses and helped him get paid faster.

For your own business, think about your three most frequent contractor coordination challenges. Often, the solution isn’t working more hours — it’s clearer communication and better systems.

Timeline and milestones

Effective operational planning requires the right rhythm of planning and review. Marcus found his sweet spot with quarterly goals broken down into monthly checkpoints and weekly routines.

His quarterly planning focuses on big-picture operations: reviewing contractor performance, updating service standards based on client feedback, and planning for upcoming technology changes that might affect his services.

Monthly reviews help him spot trends and adjust quickly. Do certain types of projects consistently run behind schedule? Do particular contractors need additional support? These regular check-ins help prevent small issues from becoming big problems.

Weekly routines keep daily operations smooth. Every Friday afternoon, Marcus spends 15 minutes reviewing the next week’s schedule and sending any necessary updates to his team.

Risk management

In IT consulting, Murphy’s Law is always in effect: anything that can go wrong, will go wrong. Marcus learned to build resilience into his operational plan through smart risk management.

He identified common bottlenecks — like contractor availability during busy seasons — and created backup plans. His network of contractors now includes specialists and generalists, giving him flexibility when scheduling gets tight.

Quality control became systematic rather than reactive. Instead of waiting for client feedback, he implemented regular check-ins during projects and standardized handoff procedures between contractors.

Signs to watch for: Is your team asking a lot of the same questions? That usually means your procedures need clarification. If you’re making the same choices over and over, that’s an opportunity to create standard guidelines. Finally, pay attention when similar problems crop up across different projects — there might be a gap in your operational plan.

Tips for success in operational planning

Creating an operational plan is one thing — making it work in the real world is another. Here’s what Marcus learned about turning plans into results.

Start with your biggest pain point

Don’t try to fix everything at once. Marcus started with his most time-consuming problem: contractor scheduling. By solving this first, he freed up energy and time to tackle other challenges. Pick the operational issue that costs you the most time or causes the most stress, and focus there first.

Keep it simple and accessible

Your operational plan should make work easier, not harder. Marcus keeps his procedures in a shared cloud drive where contractors can quickly find what they need. He uses checklists rather than lengthy documents, and he makes sure every procedure passes the “midnight emergency test” — could someone follow it easily and correctly during a crisis?

Build in feedback loops

The best operational plans evolve based on real-world feedback. Marcus sets up regular check-ins with his contractors and clients, actively seeking input on what’s working and what isn’t. These conversations often reveal simple tweaks that can make a big difference in efficiency.

Document as you go

Instead of trying to document everything at once, Marcus now makes it a habit to capture procedures while doing the work. When solving a new technical problem or creating a new service offering, he takes a few extra minutes to document the process while it’s fresh in his mind.

Measure what matters

Focus on metrics that directly impact your service quality and efficiency. Marcus tracks response times, project completion rates, and client satisfaction scores. 

Using Quicken Business & Personal, he also monitors key financial metrics like contractor expenses and project profitability. These numbers tell him whether his operational plan is truly working.

Plan for growth

A good operational plan should help your business scale. Marcus regularly asks himself whether his current systems could handle twice the workload. If the answer is no, he knows it’s time to refine his procedures or develop new ones.

For your business: Ready? Here’s your 30-day operational planning checklist.

• Week 1: Document your most time-consuming process
• Week 2: Set up a basic team availability system
• Week 3: Create templates for your most common client communications
• Week 4: Establish your weekly review routine