Fed Cuts Rates, Tupperware Bankruptcy, and Dorm Insurance?!

Welcome Back, Fellow Parent

As you may have heard, The Fed finally made their first interest rate cut last week. This is the first time rates have been cut in over four years.

Why cut interest rates now?

The short answer is a slowing job market. The Fed is responsible for keeping the US economic engine moving and while inflation is down to 2.5% from its 2022 peak of 9.1%, job creation is not meeting expectations. Lower interest rates will allow businesses to borrow funding at a more aggressive rate, spurring growth and hiring.

Hopefully, this juggling act works in the long run.

More importantly, here’s how last week’s rate drop can impact you:

• Lower Borrowing Costs: Mortgages, auto loans, and credit card rates should come down almost immediately. If you are carrying high-interest debt, I’d take a look at a personal loan as their rates will be dropping and typically carry half the interest rate of credit cards. Be mindful when it comes to refinancing your mortgage. You’ll see the internet full of refinance ads in the next few months. Make sure the cost to refinance is low and use the break-even formula to decide if now is the time to jump on a new rate.

• Lower Savings Rates: One downside of the rate cut is that you’ll start to see rates come down for high-yield savings accounts, money market accounts, and possibly even CDs. It may not be immediate, but if the rates continue to drop, so will the savings rate.

• Business Loans: As with other loans, business loans should also start to fall over the next few months. If you’re a business owner or looking to start a business, you should be able to find a more favorable rate, giving you more cash in your pocket each month to put towards growing the business.

One perk I’m excited about is the upcoming home buying/selling season in the Spring. I’ll likely be selling my home (more on this later) and hoping that the lower interest rates will increase buyer activity. Time will tell. 😁 

Money News  

Here’s a quick roundup of interesting things happening across the markets:

23 Most Profitable Businesses in 2024. Food trucks are #1.

Tupperware Brands files bankruptcy.

23andMe Board walks out as the company considers going private.

RentVesting is on the rise, but is it a long-term solution?

Dorm Insurance?! Now I’ve seen everything. My “dorm” was called low-income housing. I paid ~$300 per month which included all utilities, internet, and cable.

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Parents Supporting Parents

One of our fellow parents, Samantha, recently started a newsletter called the Postpartum Garden.

Samantha is a mother of three (boy, girl, girl) and documents her experiences in pregnancy and motherhood to help other mothers in their journey. Her weekly newsletter includes a great mix of science and personal anecdotes.

Take a few moments and check out Samantha’s newsletter by clicking below. It’s a great way to learn about an important topic while supporting another parent.

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Tools to Grow Your Wallet

Here’s a quick list of tools I’d recommend to help you start and grow your business.

As a heads-up, some of these are affiliate links. All that means is I will receive a small commission for any purchases, at no additional cost to you.

• Beehiiv for website design, landing pages, email and newsletters. Beehiiv is my top recommendation. I recently published comparison articles on Beehiiv vs. Mailchimp, Convertkit, and Substack if you want to learn more.

• Bluevine for banking. It’s online only but has been a great experience. Super fast to get set up, especially as a new company. I wrote up a review if you want to learn more.

• Taplio for LinkedIn growth. Can’t speak highly enough of this platform - it’s helped speed up content generation, scheduling, and outreach 5x.

• vidIQ for YouTube research. I’m just starting this journey but the tool is fantastic and extremely affordable.

• Squarespace for no code website development. There are pros and cons to Squarespace, but I was able to get my MVP up in a day versus spending months on my original website.

• Canva is a must-have tool if you’re creating content. You can do just about anything design-related.

If you’re looking for help with something specific, let me know. I’m always testing out new tools and am happy to provide a recommendation.

Outro

Thanks for reading, and please don’t hesitate to reach out with any questions.

I love writing content knowing it’s helping at least one family out there. 🤑

See you next week,

The Dollar Dad

P.S. Know any parent-led businesses that need help growing? Make an intro, and if they become a client, I’ll send you a gift card or make a donation to your kid’s 529. Either way, thank you.

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