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Yahoo
08-05-2025
- Business
- Yahoo
These States Are Least Prepared for a Recession
President Donald Trump's tariffs have tripped recession alarms, such as shrinking economic growth, squashing consumer confidence, and shaking financial markets. Some of the most populous U.S. states, largely in the South, are the least prepared for a recession, according to a report from fintech lender National Business Capital. The study found that a few northern Great Plains states, with high GDP, state government reserves, and low unemployment, are the most tariffs trigger recession alarms, some of the most populous states are the least prepared for an economic downturn, according to a recent report. Tariff uncertainty has taken financial markets on a wild ride, squashed consumer and business confidence, and fueled fears about the possibility of a coming recession. They also spurred a surge of imports as people rushed to beat the tariffs, which resulted in negative economic growth for the first time since 2022. The U.S. economy is likely not officially in a recession yet. The National Bureau of Economic Research, the nonprofit research group that officially calls U.S. recessions, only does so once a recession has already set in, because it uses backward-looking data. However, two consecutive quarters of negative economic growth typically indicate a recession is in progress. Millions of Americans live in states that are vulnerable to a recession, and the majority of states with the highest populations rank as least prepared for an economic downturn, according to a report released Wednesday by National Business Capital. This analysis utilized economic data from each state to determine which was in the best position to survive a recession. States that were better prepared to weather a recession typically had higher government reserves, GDP per capita, and safety net coverage as well as lower unemployment rates and lower housing prices. Mountain and Southern states proved to be the least resistant to a recession. National Business Capital's report said that, in recent years, those regions experienced a migration and housing boom that drove up the cost of living and hurt household budgets. In particular, Louisiana is the state most vulnerable to a recession, the study found. It already has a higher unemployment rate than most other states, and Louisiana's government reserves are the lowest of all 50 states. It also has some of the worst safety-net coverage for residents through programs like unemployment insurance. In addition, the housing in the state is some of the least affordable in the country. Colorado, Mississippi and South Carolina were also particularly ill-equipped to withstand a recession, the study found. The most resilient states are primarily in the northern Great Plains region, with North Dakota being the most recession-resistant, according to the study. The state's high GDP relative to population and government reserves, combined with low unemployment, comparatively lower cost of living, and "decent" safety-net coverage, make it the most prepared state in the company's study. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-04-2025
- Business
- Yahoo
What If Your Groceries Doubled in Price?
There is no easy way around the fact that everything is getting more expensive these days, especially groceries. With the global economy fluctuating up and down and no ease in sight, consumers are left to foot the bill, which has often become twice as much money for them, if not more. Consider This: Read More: If you are seeing your groceries prices double, here are some tips from experts on what to do. 'One of the shopping mistakes many make that ends up doubling their grocery bills is they ignore generic brands and opt for name brands instead,' highlighted Aaron Razon, a personal finance expert at Couponsnake. It was noted that this is usually because generic brands are deemed to be inferior in quality, which is why they have lower prices. 'However, many generic and store-brand products often offer similar quality, but at a lower price point, and this makes them a cost-effective alternative that can significantly slash your grocery bills without compromising taste or nutrition,' Razon shared. By considering generic or store brand products, Razon pointed out how the average consumer would be able to make their grocery shopping more budget-friendly, and have a couple of extra dollars to allocate toward other essential items. Be Aware: Look at your weekly grocery haul and see what 'splurges' you can cut back on. Instead, focus only on what you need, said Laurie Sepulveda, a personal finance expert at MarketWatch Guides. Sepulveda cited data in a new MarketWatch Guides survey that found 43% of Americans are avoiding splurging on treats and prestige-priced goods, making this the most popular strategy. 'Fancy prepared foods can eat away a big chunk of your grocery budget,' Sepulveda described. 'Many times, you can recreate splurges at home for a lot less.' According to Razon, another thing consumers can do if they find that their grocery bill doubling is to avoid processed and pre-prepared foods because they are more expensive than whole ingredients. In fact, by choosing whole foods like vegetables, fruits and grains, consumers would be saving money and benefitting from the superior nutritional value these foods provide. This might add some extra stops and the hassle of going multiple places to get your full grocery list, but Chris Motola, the National Business Capital Special Projects Editor and Financial Analyst, explained it could help lower your bill. 'Supermarkets and many other types of businesses will have a loss leader at any given time,' Motola went on to say. 'That is, a product that's being sold cheaper than cost. The idea here is that the product attracts customers to the store who will then also spend money on more profitable products. Strategically buying loss leaders and limiting spending on other products during your shopping run can help keep your grocery bill down.' Motola suggested consumers should be willing to shop at multiple stores. 'Different stores will have different sales and loss leaders at any given time,' it was noted. 'It takes some planning and a little more time, but if you live in an area with a healthy amount of supermarket competition, you can save money by strategically buying items on sale at each,' added Motola. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 4 Things You Should Do if You Want To Retire Early How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on What If Your Groceries Doubled in Price? Sign in to access your portfolio
Forbes
21-03-2025
- Business
- Forbes
The Rise In Business Bankruptcies: Key Trends And Steps For Leaders
Joe Camberato is the CEO and Founder of National Business Capital, a leading fintech marketplace offering streamlined small business loans. From March 2023 to April 2024, business bankruptcy filings rose more than 40%, affecting companies across many different industries. Many large, well-known companies experienced the fallout from high interest rates and inflation. A Cornerstone Research report found that 113 private and public companies with assets over $100 million filed Chapter 7 or Chapter 11 bankruptcy. Plus, 16 'mega bankruptcies'—companies with over $1 billion in assets—occurred in the first half of 2024. This is the highest number of mega bankruptcies in a six-month period since the Covid-19 pandemic. These filings increased across all industries, but the retail trade, services and manufacturing industries got hit the hardest. The services industry in particular accounted for 29% of all bankruptcies, which was a significant increase from its historical average of 17% from 2005 to 2023. Additionally, bankruptcies rose across the finance, insurance and real estate industries. By the end of 2024, total business bankruptcy filings rose 22.1%—from 18,926 in 2023 to 23,107—according to statistics released by the Administrative Office of the U.S. Courts. So, what's causing the increase? Business bankruptcies have grown in recent years, fueled by economic pressure and changes in the market. When a company goes out of business, there's not one factor you can single out as the culprit—it's usually a combination of many different factors. Let's look at four trends that are negatively affecting many companies as well as ways you can protect your business in difficult times. Most companies cite rising costs from inflation and interest rates as the number one reason they filed for bankruptcy. For example, Red Lobster pointed to macroeconomic pressures like inflation and rising wages, while Enviva stated that historically high inflation hurt its profit margins on long-term contracts. Inflation drove up the cost of raw materials, labor and energy, eating into business profit margins. Many companies carry debt with variable interest rates, so the cost of managing this debt also increased as interest rates rose. The combination of inflation and high interest rates put pressure on companies from all sides, making it harder for them to maintain a positive cash flow. These trends pale compared to 2020, when business bankruptcies hit a 10-year high and 630 companies filed for bankruptcy. But in many ways, what we're seeing now is the lingering effects of the pandemic. Over 79% of the mega bankruptcies cited it as a significant contributing factor. Companies like Bed Bath & Beyond and Revlon struggled with supply chain disruptions that increased costs and made their day-to-day operations less efficient. Plus, many businesses dealt with staffing shortages and higher wages, all while trying to navigate lower profit margins. However, perhaps the most significant factor was how the pandemic permanently changed market dynamics. Covid-19 rapidly accelerated changes in consumer behavior, forcing companies to adapt to new markets. Many large companies just couldn't keep up with the speed and scale of these changes. Increased competition within industries also contributed to reduced profits and market share for many companies. Well-established companies are now forced to compete with more agile competitors. For instance, Rite Aid noted it has to compete not only with traditional drugstores and supermarkets but also with online retailers like Amazon. Increased competition forces these companies to lower prices to attract new customers, which also lowers profit margins. When you combine that with rising costs and high interest rates, companies have fewer resources available to deal with these lower margins, increasing the risk of bankruptcy. The Cornerstone Research report also highlights how many companies struggled with unsuccessful strategic initiatives, which led to financial losses. Many companies attempted to pivot during the pandemic by offering new products, but these efforts ultimately fell short. For example, some companies tried to begin offering remote services without understanding the full investment required to make these changes. Many established companies in the retail and manufacturing industries were unable to innovate or pivot quickly enough. Their reluctance to embrace new technologies or change their business models only made them more vulnerable. Federal support, such as the Paycheck Protection Program, provided temporary financial relief. However, it was ultimately a temporary lifeline carrying many companies that would have gone out of business without it. Federal relief programs can help you get through a difficult season in your business, but they aren't a long-term strategy. Start taking proactive steps to improve your financial and operational structures. For instance, you may need to renegotiate your debt terms to improve cash flow. It's also important to address supply chain vulnerabilities and hiring challenges before they turn into major business disruptions. But most importantly, start investing in innovation and digital transformation now. This is about more than just adopting new software—it's about rethinking your company's processes and how you engage with your customers. For example, you may need to diversify your product line or switch up your marketing strategy. Incorporating strategic initiatives and strong financial planning is the best way to navigate a competitive market and protect your business in difficult times. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
08-03-2025
- Business
- Yahoo
6 Stupidest Money Mistakes You Can Make This Year, According to Experts
Your money is either working for you or against you. If you make dumb financial moves, you're going to regret it. The worst part is that most people don't even realize they're making these mistakes until it's too late. Consider This: Find Out: Here are the stupidest money mistakes you want to avoid this year. The stock market has been volatile this year, and it's easy to get scared and feel like you should sell your assets before you lose money. That's a huge mistake! 'One of the worst mistakes you could make this year is freaking out over a market dip and selling your stocks or 401(k) at a loss. That's how people turn temporary downturns into real losses,' said Joseph Camberato, CEO at National Business Capital. 'With a new administration, the market might react negatively in the short term, and that's perfectly normal. But don't try to time the market. Stick with the S&P 500 and quality stocks.' Read More: Retirement might seem like a distant problem, something to worry about later. However, every year you delay saving for retirement, you lose out on the magic of compound interest. Saving early and consistently is of utmost importance due to the power of compounding. There's a huge difference between starting savings at age 25 versus age 35. 'Here's an example: If a 25-year-old starts saving $20,000 per year for 30 years at an 8% annual return, they would have $2.5 million saved at age 55. But if this person instead started at age 35 and saved until age 55, they would only have $980,000 saved,' said Doug Carey, founder and president of WealthTrace. 'Delaying saving by 10 years cost this person over $1.5 million. That is the power of compounding at work.' Digital currencies are highly volatile, and speculating on them is the worst mistake you can make. 'The crypto market has never been a good place to invest. At times it has been a profitable place for some to speculate. My belief is, 'Just Say No!' should guide your actions with respect to crypto,' said Robert Johnson, professor of finance at Creighton University and CEO at Economic Index Associates. 'One cannot invest in the wide array of cryptocurrencies. One can only speculate. 'Investing' in Bitcoin and other cryptocurrencies is pure, unadulterated speculation. I put investing in quotes because this is not investing; it's speculating.' Having money is good, but holding too much cash is dumb with inflation. 'Having an emergency fund and cash available to pay bigger bills throughout the year is necessary. However, at some point, it becomes too much. Most people should have three to six months of cash set aside for emergencies,' said Trevor Ausen, founder of Authentic Life Financial Planning. 'You also should have some cash available for larger expenses that happen throughout the year (car insurance and repairs, home repairs, medical bills). After that, 100% of your money should be invested. The only exception is if you have other larger purchases that you're saving for, such as a home or car purchase and big travel,' Ausen added. While savings accounts can grow your money, thinking about it as some sort of investment strategy is stupid. 'Yeah, 4 to 5% sounds nice compared to what we had before. We're all happy our interest is better than 0.000001%, but if you're just letting your money sit there instead of growing it, you're basically letting inflation eat away at your future,' added Lucas Barcelo, founder of Thrivin Life. Debt is a wealth killer. Incurring unnecessary debt is way riskier. 'There's a lot of uncertainty about how the economy will look in the next six to 12 months. This is not the time to incur debt to add an addition to your house or finance a big trip,' said Ashley Morgan, debt and bankruptcy lawyer at Ashley F. Morgan Law. 'Keep any debt purchases to a minimum. If you need to buy a new car, try to limit the amount financed as much as possible. Limiting debt is always ideal, but right now, making sure you have limited it as much as possible is critical.' More From GOBankingRatesI'm Retired and Regret Not Claiming Social Security at 65 -- Here's Why This article originally appeared on 6 Stupidest Money Mistakes You Can Make This Year, According to Experts Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
Jump On These Ways To Earn Passive Income Now — Before It's Too Late
These days, it always helps to have a side gig. Freelancing, ride sharing and babysitting are great ways to earn some additional money, but the best kind of income to generate if you are working full time and juggling family responsibilities is passive income. Read Next: Try This: 5 Subtly Genius Moves All Wealthy People Make With Their Money However, there are a lot of changes happening within the economy right now, meaning that some of these passive income streams might not be around for much longer, once interest rates start dropping. GOBankingRates reached out to experts who offered their thoughts to share on why you should jump on these ways to earn passive income before it's too late. There are lots of ways that you can make money using the money that you already have. It's not working for additional dollars, but instead, having your money work for you with a high yield on certain accounts and investments. 'I would start by checking out local banks and credit unions,' said Joe Camberato, the CEO of National Business Capital. 'Many of them are still offering high rates on CDs and money market accounts, because they're actively trying to bring in more deposits. Online banks are another solid option, but just make sure the account is FDIC-insured and do your homework, especially with newer platforms.' 'The easiest and most liquid option would be a high-yield savings account,' added Chad Willardson, the president and founder of Pacific Capital. 'Ditch the pathetic 0.01% APY bank account and grab the higher interest rates available from an online bank account. If you can leave your money parked for 6 months to a few years, you can lock in the current interest rates in a certificate of deposit (CD).' He suggested laddering your CDs, so some of your money becomes available every year, but you can still lock in the highest rates. Learn More: 'The oldest and most traditional form of creating passive income is investing in real estate,' said Willardson. 'That's an entirely different conversation than simply depositing money in a bank account. But if you can be patient and disciplined, you may find the passive income from real estate is a great way to earn increasing cash flow as inflation continues to rise. There are also many potential tax advantages to real estate investing.' Just note that if you're going to maximize your profit, this won't be entirely passive. If you buy a fixer-upper to flip, for example, you can pay someone else to do the work, keeping it passive, or fix it yourself with some labor. Rentals, too, can be passive or not, depending on whether you hire a property manager. 'Higher interest rates can hurt home sales, which can increase demand for rentals,' said Erika Kullberg, a personal finance expert and founder of 'Investors can look for solid rental property opportunities to generate passive income when rates are high.' If you are in a position to loan out money and collect the interest as a form of payment, then you might want to look into peer to peer (P2P) lending as a passive income option. 'Peer to peer lending platforms let you become the lender and take advantage of higher interest rates,' Kullberg said. 'There are other alternative investments that allow you to loan money to individuals or businesses for higher rates, but I like the simplicity of the P2P platforms, which are accessible to everyone.' More From GOBankingRates 5 Subtly Genius Moves All Wealthy People Make With Their Money 4 Unusual Ways To Make Extra Money That Actually Work 3 Ways a Balance Transfer Helps You Manage Debt (And How Much it Could Save You)This article originally appeared on Jump On These Ways To Earn Passive Income Now — Before It's Too Late Sign in to access your portfolio
