If you sell your home after the middle of August, cheers: You could end up pocketing the money that previously would have gone to the buyer’s agent.

But before you celebrate, consider the downside of waiting until late summer to list your home for sale: House prices tend to fall after August. The price drop might surpass the money you save on commission.

New policies governing real estate commissions are set to go into effect Aug. 17 as a result of the settlement of an antitrust lawsuit. The amended policies give home sellers more room to negotiate what to do about the buyer’s commission — whether they want to use it to induce competitive bids or keep it to themselves entirely.

The choices complicate this season more than usual, for both buyers and sellers. Here’s what to know to help you and your agent come up with the best strategy for you.

What, exactly, is changing?

Starting Aug. 17, sellers will no longer set the commissions for real estate agents who represent buyers. Buyers will decide how much their agents will be paid. Even when sellers are willing to pay some or all of the commission for the buyer’s agent, the amount will no longer appear on the multiple listing service.

For decades, and up to Aug. 17, MLS listings have been required to advertise how much commission the seller is offering to buyer’s agents. The information wasn’t visible to home buyers but could be viewed in agent-only fields of the MLS.

When sellers set commissions for buyer’s agents, they’re sometimes advised that offering a low commission will attract fewer buyer’s agents — and therefore fewer competing offers. The plaintiffs in the antitrust suit argued that the policy of requiring commission info on the MLS was designed to discourage them from negotiating lower commissions for buyer’s agents.

Can sellers start offering 0% to buyer’s agents today?

Technically, sellers have always had the option of offering zero or minimal commission to the buyer’s agent. But most sellers have offered such commissions to motivate buyer’s agents.

Even though they will set their agents’ commissions, buyers won’t necessarily pay out of pocket. Buyer and seller will negotiate who will pay. Scenarios include:

• The money may come directly out of the seller’s pocket, as has been the norm.
• The money may come directly out of the buyer’s pocket.
• The buyer and seller may split the payment.
• The buyer may pay indirectly, by adding their agent’s commission to the price of the house when they make an offer.

Here’s an example of how an indirect payment might work for a buyer who is paying a 3% commission. The buyer finds a house costing $400,000. The 3% commission is $12,000. The buyer offers $412,000 and asks the seller to transfer $12,000 to the buyer’s agent at closing.

Keep in mind that sellers, having equity, tend to have more access to cash than first-time home buyers, who accounted for 33% of buyers in April. A seller who’s willing to pay all or some of the buyer’s commission may end up with more offers, and a higher final price, than one who flatly takes that commission off the table.

How much money could sellers keep, though?

As a home seller, you stand to save thousands of dollars on commissions if the buyer pays their agent directly or indirectly.

Let’s say the agents in your town typically collect 2.5% on each side of the transaction, and you sell your house for $400,000. Each agent earns $10,000. If you pay both agents, you’ll shell out $20,000 and end up with $380,000.

But if the buyer pays their agent, you would pay your agent $10,000 and walk away with $390,000. That’s $10,000 more.

On the other hand, buyers might request bigger closing cost credits, subtracting from the seller’s bottom line, Chuck Vander Stelt, a real estate agent in Valparaiso, Indiana, said in an email. Or buyers might offer less because they will bear the expense of paying their own agents.

Even after Aug. 17, sellers might keep offering commissions to buyer’s agents as motivation, Vander Stelt added. These offers could remain standard in many markets, multiple agents said. Offering commissions to buyer’s agents will still be permissible under the new policies, but those offers will no longer appear on the MLS. Listing agents can communicate the information on brokerage websites, or in phone calls, emails and texts.

What would be the cost of waiting?

You might be tempted to keep your home off the market until the new policy goes into effect. But waiting might not be a wise move, because it would mean sitting out homebuying season.

Home prices peak from May through August, then drop off. In 2023, the median existing home cost $410,100 in June, $405,600 in July, $404,200 in August — and $392,700 in September, according to the National Association of Realtors. If you list your house after mid-August, you probably won’t close until October or later, when prices are even lower.

With house prices peaking in summer, you might come out ahead by selling during the busiest time of the year, even if you end up paying the buyer’s agent’s commission.

“I don’t really have anybody holding off until after August to list their house because they want to save a couple bucks,” says Michelle Doherty, an agent in northern Virginia with RLAH Real Estate. She says her clients will be ready to sell in June or July, “depending on how things progress with prepping the house.”

Can I negotiate the listing agent’s commission too?

You might save money if you don’t pay the buyer’s agent’s commission. But what about the commission that you pay the listing agent for selling your home? You might not see an immediate reduction. If a cut in commissions from 3% to 2% is your hope, you’ll probably mope.

“First of all, nothing’s going to change quickly, OK?” says Stephen Brobeck, senior fellow for the Consumer Federation of America. “The industry will resist, and consumers don’t really focus on this much.”

Vander Stelt said that he sees headlines that proclaim “the end of the 6% commission.” That’s a mistaken belief, he said. “Overall, the average commission costs per transaction on a percentage is likely to come down over the coming years,” he said. But not instantly.

What if I list before Aug. 17 but sell after?

Months can pass between the day you put your home on the market and the day you hand over the house keys at closing. What if the Aug. 17 policy change happens in the middle of this period? The National Association of Realtors provides guidance for two scenarios:

• Your home’s MLS listing offers to pay the buyer’s agent’s commission, and you sign the contract accepting the purchase offer before Aug. 17: You’ll pay the commission, even if the closing occurs on Aug. 17 or after.
• Your home’s MLS listing offers to pay the buyer’s agent’s commission. But in accordance with the new policy, that offer is removed from the MLS on Aug. 17. Sometime after that date, you accept the purchase offer: That defunct commission offer on the MLS is no longer valid. You and the buyer will negotiate how to take care of the buyer’s agent’s commission.

When you put up your home for sale, you’ll sign a listing agreement with your agent. NAR says that listing agreement might have to be amended if it says that an offer to pay the buyer’s agent must be made “on the MLS.” As of Aug. 17, that clause in the listing agreement will conflict with the new policy. Your agent might ask you to sign an amended listing agreement before that date.

Holden Lewis writes for NerdWallet. Email: hlewis@nerdwallet.com. Twitter: @HoldenL.

The article Should I Wait Till August to Sell My Home to Save on Commission? originally appeared on NerdWallet.

You may be able to minimize the doldrums with some planning and other steps to turn things around, financial experts say.

“Financial stress can be temporary,” says Tonya Rapley, financial educator and founder of the millennial money and lifestyle blog My Fab Finance. She suggests focusing on small steps such as paying this month’s bills, then reminding yourself that you can recover from December’s overspending.

Here are a few more ways to fight this month’s financial downers:

Make or update a budget

The new year is a great time to create or update a budget, which can give you back a sense of control, says Mike Croxson, CEO of the National Foundation for Credit Counseling, a nonprofit financial coaching organization.

The popular 50/30/20 budget, for example, suggests putting 50% of your take-home income toward needs, 30% toward wants and 20% toward savings and any debt payments. You can adjust those percentages as needed, especially if you live in an urban area with high housing costs.

“The best way to get control back is to make a plan,” Croxson says. “You can get back on top of this and back to where you feel good about your finances.”

Pay off debt

With interest rates higher than they were a couple of years ago, credit card debt is also more expensive, which makes paying it off a financial priority. How exactly you do that is up to you, Croxson says.

“Paying off the highest interest rate balance first makes the most common sense, but for some people, paying off the smallest dollar amount first is most important because they feel like they accomplished something,” Croxson says. Small wins can give you momentum to continue.

Online calculators for those two methods, known as the avalanche and the snowball, respectively, can help you stay on track.

Track your payments carefully

If you purchased holiday gifts using “buy now, pay later,” which allows shoppers to split payments into multiple installments, then it’s important to note when those bills are due, says Christine Alemany, chief marketing officer for i2c, a global banking and payments platform.

Alemany suggests tracking your buy now, pay later due dates with a financial management tool or spreadsheet to avoid late fees or interest charges. “The variety of payment methods that consumers now have gives them the option to choose what’s best for them,” she says, but “that convenience needs to be balanced by discipline.”

Build up savings

Amid all of that repayment, it’s also important to find a way to save money, Croxson says. “Having a savings line item in your budget is a critical step for virtually every consumer, even if it’s $20 or $25 a month,” he says. “There will be an emergency, and you will need it.” Being able to turn to savings in the future also helps you avoid building up debt again, he adds.

The good news for Americans is that positive signs in the economy, such as a slower rate of inflation and lower gas prices, means it’s a little easier to find room for savings, according to Alan Gin, associate professor of economics at the University of San Diego’s Knauss School of Business.

With gas prices coming down, Gin says, “not only will consumers be more confident, but they will have more money.”

Know your rights

If an expensive item you bought or received as a gift in December breaks in January, that’s another potential downer, which is why knowing your refund rights is critical, says Wayne Hassay, partner attorney for LegalShield, a legal services provider. He suggests keeping track of all paperwork related to the item and any warranty attached whenever you make a big-ticket purchase.

In some cases, paying with a credit card can give you additional protections, he adds. And if your pricey new electronics break, don’t hesitate to follow up with the retailer or brand until you get a satisfactory response, which could be a refund or a new product.

Get help if you need it

Working to pay off debt and get back on budget in January can feel lonely because it’s such a solo activity, which is why it’s helpful to reach out for additional support, whether that’s from financial professionals or friends and family.

“Be honest with people,” Rapley says. She suggests sharing in a friend group chat if you are looking to scale back and spend less, because you’ll likely find encouragement that can help you stay on track. “That communication is definitely important,” she says, and can help you feel less alone — and with more good things to anticipate in the year ahead.

“There are supply chain issues, inflation, major retailers reducing inventory — when you put all of that together, it looks like a recipe for disaster,” says Jill Cataldo, a consumer coupon expert based in Chicago. Her solution? “I started shopping now. If you see something and it looks like a good deal, it’s time to pick it up.”

That’s because while prices are higher overall, retailers have already launched the holiday deal season, spreading out discounts and sales over the final three months of the year. Given that complicated background, here are the best ways to save money this Black Friday season:

1. Shop early and often

It might sound counterintuitive, but starting early can ease the impact on your budget and allow you to score the best deals. “I watch prices, see which retailer is offering the best price and always look for coupons before I buy — anything is better than paying full price,” Cataldo says. When she makes an early purchase, she keeps the receipt handy in case the price drops and the retailer offers a price match.

2. Be relentless about comparing prices

Apps, browser extensions and other tools that will help you track and compare prices abound; you just have to pick the one that you like using most. You can find choices that scour the web in the background while you shop and alert you to lower prices, coupon codes and cash-back opportunities.

For example, the shopping app ShopSavvy will follow price changes on specific items. John Boyd, co-founder and CEO of Monolith Technologies, which owns ShopSavvy, says he uses that feature for things he has his eye on, like a digital single-lens reflex camera. “I want to get an alert the second those things get marked down, because it might only be on sale for a few minutes and then the quantity runs out,” he says.

The Camelizer app performs a similar function for Amazon prices specifically.

Greg Lisiewski, vice president of PayPal Shopping , which includes the shopping browser extension Honey, says when he wants to buy something, he looks up the retailer in the PayPal app to see if any discounts are available (under the “Deals” section).

Those discounts are especially valuable now because PayPal Honey reports that toys and games are 11% more expensive this year compared with last year, coffee machines have increased 7%, and cycling gear and equipment is up 9%. The company also reports that the biggest discounts this holiday season have been in cosmetics, musical instruments and general department stores.

3. Layer on coupon codes and cash back

Getting a good deal isn’t only about price: You can add on other savings with coupon codes and cash-back offers.

Cataldo takes advantage of cash-back offers, which are available through apps like Rakuten, CouponCabin and Ibotta. “It’s just one extra step if you are going to buy online, and then you receive a check,” she says. “I like things that are easy, and that’s very easy.”

Scott Kluth, founder and CEO of CouponCabin, says stores with excess inventory will often have discounts of 10% to 15%, and cash-back offers range from 3% to 20%. “Stack all of those savings on top of each other,” he says, adding that sometimes online retailers accept multiple coupon codes plus provide free shipping.

4. Get to know your local stores

Deborah Weinswig, CEO and founder of Coresight Research, a retail research and advisory firm, says that getting to know your local stores and attending in-person events can be the way to score the biggest deals. “Store managers are being given the ability to negotiate and price match or price beat,” she says, especially when they have excess inventory in stock.

She suggests joining livestreams, following your favorite brands on social media and signing up for brand loyalty programs to be the first to hear about discounts or sales. “Some codes are only good for 24 hours and some prices are only good for four hours,” she says, so if you want the best deals, be ready to move quickly.

5. Talk to friends and family about scaling back

With so many people feeling the strain of rising prices, it’s a good year to talk with family and friends about setting limits. For Sarah Schweisthal, social media manager at the budgeting app You Need a Budget, that means creating a gift exchange with family members so each person purchases just one gift within an agreed-on spending cap. “We used to all buy gifts for each other, but there are a lot of adults in our family. It just took one of us to say, ‘Hey, this doesn’t feel sustainable,'” she says.

Schweisthal estimates that the gift exchange approach has saved her family hundreds of dollars — and this year especially, that’s more important than ever.

In NerdWallet’s annual analysis of airline mile values, holiday flights in December often didn’t provide the highest per-mile value compared with flights booked 180 days out or 15 days out from the date of departure. With flight prices up 43% from last year, according to the latest Consumer Price Index data, you’ll likely have to use a lot of miles to pay for the flight. If you’re a points and miles maximizer, you probably would prefer to save your miles for a time of year when you might be able to get more value.

But if fares are getting too expensive, you may choose to book award flights instead. The best airline for holiday award travel based on the value of its points is a four-way tie among American Airlines, Delta Air Lines, Southwest Airlines and Frontier Airlines.

Here’s how we came to that conclusion, plus more advice on how to shop holiday flights on points.

AIM FOR 1.4 CENTS PER MILE

NerdWallet examined nine major U.S. airlines and analyzed the prices of nearly 600 domestic flights in 2022. In this analysis, holiday flights were defined as those departing on Dec. 18 and returning on Dec. 29. Of the nine airlines examined, four airlines tied for the highest baseline value for miles spent on holiday flights, which was 1.4 cents per mile. If you fly American, Delta, Frontier or Southwest, you should aim to get about this much when you divide the cash price by the number of miles.

For example, a $600 round-trip flight should cost about 42,857 miles (or less, if you’re getting an even better deal).

Here is the full list of each airline’s valuation per mile when used for holiday flights.

— Alaska Airlines: 1.2 cents (nonholiday valuation: 1.2 cents).

— American Airlines: 1.4 cents (nonholiday valuation: 1.5 cents).

— Delta Air Lines: 1.4 cents (nonholiday valuation: 1.5 cents).

— Frontier Airlines: 1.4 cents (nonholiday valuation: 0.9 cent).

— Hawaiian Airlines 0.9 cent (nonholiday valuation: 1 cent).

— JetBlue Airways: 1.3 cents (nonholiday valuation: 1.5 cents).

— Southwest Airlines: 1.4 cents (nonholiday valuation: 1.5 cents).

— Spirit Airlines: 0.7 cent (nonholiday valuation: 0.8 cent).

— United Airlines: 1.1 cents (nonholiday valuation: 1.2 cents).

Frontier presents a unique opportunity among the four front-runners.

For the most part, 1.4 cents is slightly below the nonholiday valuation of these airlines’ miles; American, Delta and Southwest miles are usually worth about 1.5 cents each.

Frontier is the exception where redeeming your miles during the holidays is smart because miles are worth more than normal. Frontier’s nonholiday valuation is 0.9 cent. However, this cost considers only the base fare — added fees for seat selection or baggage might decrease your value per point.

AVOID USING MILES WHEN THEY’RE WORTH LESS THAN 1 CENT

This is a good rule at any time, but particularly during the holidays. A valuation of less than 1 cent per mile is abysmal considering you can often redeem credit card points for cash back at a standard rate of 1 cent each — and that’s low when compared with travel credit cards that let you redeem through their travel portals at 1.25 cents or 1.5 cents each.

For the holidays, you probably won’t want to book Hawaiian or Spirit flights with miles, which are worth 0.9 cent and 0.7 cent, respectively.

WHAT TO DO IF YOU DON’T HAVE ENOUGH MILES

NerdWallet’s data shows airline miles are generally worth slightly less when you use them to book holiday flights. That means you’ll probably spend more miles on holiday flights than you would on nonholiday flights. There are still a few ways you can save on holiday travel, though.

BOOK WHEN THE FLIGHTS ARE LESS EXPENSIVE. Most U.S. airlines use dynamic award pricing, so if the cash price is lower, the number of miles needed to book will be lower, too. According to data from Google Flights, the average price for flights around Christmas usually drops from 20 to 88 days before departure.

TRANSFER MILES FROM A CREDIT CARD. Two of the airlines with the most valuable miles around the holidays are credit card transfer partners. If you have a card that earns Chase Ultimate Rewards points, you can transfer your credit card points to Southwest. Cardholders who earn American Express Membership Rewards can transfer to Delta. These might be good options if booking with airline miles provides better value than booking in the credit card issuer’s travel portal.

BOOK WITH A COMBINATION OF POINTS AND MILES. This option will take a bit more math to ensure you’re getting the best deal, but some airlines, like Delta, allow you to book with cash and miles if you don’t have enough miles to cover the entire cost. Even if you’re not flying with Delta, consider other ways to unbundle your travel like paying cash for a one-way flight and miles for the way back.

The value of your points and miles will depend on your redemption. Do the math and aim to get 1 cent to 1.4 cents per mile. If the value is lower than that, pay cash for your holiday flight and save your miles for any other month than December.

So with travel prices still well above their pre-pandemic levels, what does that mean for travelers’ hotel points and airline miles? Rewards programs regularly increase award prices, which are the number of points or miles needed to book a hotel night or flight. That practice devalues these currencies over time and renders customers’ collection of points and miles less useful. Yet, interestingly, the opposite effect seems to be happening this year.

REWARDS ARE WORTH MORE THIS YEAR

NerdWallet refreshed its annual analysis of points and miles programs and found something unexpected in a sea of bad inflation news: Many rewards programs’ points have become more valuable this year compared with the previous year.

American Airlines’ miles increased in value, from 1.2 cents per mile in 2021 to 1.5 cents in 2022. United Airlines’ miles jumped from 1 cent per mile to 1.2 cents per mile. In fact, almost every domestic airline’s miles either increased in value or stayed the same, year over year. This bucks the conventional wisdom among points and miles enthusiasts, who expect to see those values drop over time.

“Miles and points aren’t really a hedge against inflation, as the various programs and loyalty currencies are always devaluing based on business and economic trends,” said Tiffany Funk by email. Funk co-founded Point.me, a service that helps customers redeem their travel rewards. “But points can be a buffer against inflationary pressures in the short term.”

Put simply: Cash prices went way up this year and award prices (e.g., the number of miles needed to book a flight) also went up, but not as much. Airfares were 33% higher in September 2022 than that month in the year prior, according to the September Consumer Price Index report. Meanwhile, airline miles are valued only 8.7% higher on average than last year, according to the analysis from NerdWallet.

If cash prices tumble again, this effect of boosted points and miles values could get erased. But as long as prices remain high, travelers can nab outsized value from their points and miles — assuming they use them for high-value redemptions.

STATIC VS. DYNAMIC AWARD PRICES

In the old days of frequent flyer programs, a route would cost a given number of miles, regardless of the cash price. So a flight from Los Angeles to San Francisco would always cost, say, 5,000 miles. Yet the industry has trended away from the award chart approach toward dynamic award prices, which fluctuate to match the cash price. These programs generally offer less value when cash prices are high.

“The best redemptions when cash prices are high will be through programs that don’t tie their currency to the dollar,” Funk said.

Travelers should target programs like Hyatt, Wyndham or Alaska Airlines that still use an award chart to determine the cost of using points and miles. Conversely, Funk cited Southwest Airlines and JetBlue Airways as examples of programs that tie their rewards point values closely to the cash price of the flight.

“Instead, a program where the award prices are either determined in advance (with published charts) or are flexible/dynamic based on circumstances (load factors, revenue data, etc.) will be better bets,” she said.

Hyatt, for example, still maintains an award chart and saw its points increase in value from 1.9 cents to 2.8 cents from 2021 to 2022, according to the NerdWallet analysis. Marriott Bonvoy, which eliminated its award chart earlier this year, remained steady at 0.7 cent per point.

AWARD SPACE MIGHT BE HARDER TO FIND

Airlines continue to struggle with staffing difficulties and canceled flights, despite continued high demand. This means that planes are full, and that seats booked with miles are harder to come by.

“Historically, we’ve advised that extra award space often opens up a week or so prior to departure,” Funk said. “But right now, we’re seeing seats held until two to three hours prior to departure.”

Hotel rates, buoyed by strong demand and staffing shortages, have also put pressure on award redemptions. Most hotel programs use dynamic award prices that keep pace with cash prices, so finding bargain rates will remain a challenge.

In other words, hotel points and airline miles might be more valuable, relatively, but they could be harder to use. So, travelers should stay flexible when making plans.

First, of course, you should know how to access those estimates. You can find yours online by creating a “My Social Security” account at the Social Security Administration’s site, or you can call 800-772-1213 to request a paper version. (The agency automatically sends paper copies to people 60 and over if they haven’t yet started benefits or created an online account.)

Social Security projects how much you’ll receive if you start benefits at the earliest age, 62, as well as what you’ll get if you start instead at your full retirement age — currently 66 and rising to 67 for people born in 1960 or later — or at 70, when benefits max out.

How Social Security estimates your benefits

When you apply for benefits, Social Security uses your 35 highest-earning years to calculate your check. Each of these years is “indexed,” or adjusted to reflect wage and price inflation over time. The dollar amount you earned in 1995, for instance, would be roughly doubled to reflect what the same wage would be worth today.

When estimating your future benefit, however, the agency assumes no future growth in wages or prices, says economist Laurence Kotlikoff, creator of the Maximize My Social Security claiming-strategies site. That often creates “lowball” estimates for younger workers, he says.

“If you are, say, 40, this can produce a 20% underestimate of the actual benefit you’ll receive,” Kotlikoff says.

On the other hand, the agency could be overestimating your benefit if your income has peaked, since the assumption is that you will continue earning roughly the same amount until you apply for Social Security. Many people in midlife lose their jobs and never make as much again. Illness or disability could knock you out of the workforce prematurely, or you could stop working years before claiming Social Security. Any of those circumstances could result in smaller-than-projected checks.

“You can see why Americans are confused and surprised when they go into the Social Security office with an old statement and learn their benefits will be lower than they thought,” says William Meyer, founder of Social Security Solutions, another claiming-strategies site.

Family benefits and pensions can change the numbers

Other circumstances can upend the estimates. Some people will qualify for spousal or survivor benefits that are larger than what they earn on their own record. Retirees with minor children can get child benefits that boost their checks.

Nastier surprises may await people who worked for certain government agencies or were employed abroad. If they get pensions from jobs that didn’t pay into Social Security, the “windfall elimination provision” could reduce their Social Security checks significantly. Lawmakers intended the provision, and the related “government pension offset,” to keep people who didn’t pay much into Social Security from getting more than those who did. But the reductions aren’t always well publicized or explained, and can come as a shock to affected people who were counting on the amounts Social Security promised.

What about the shortfall?

Speaking of promises, Social Security’s trustees say the system will have enough revenue to pay only 77% of promised benefits starting in 2035, unless Congress intervenes.

Lawmakers are unlikely to allow benefits to be cut for people in or near retirement. If you’re decades away, though, Social Security’s lowball estimate could turn out to be on target. To be safe, you might want to assume you’ll get even less.

If you’re within 10 years of retirement, on the other hand, getting a more accurate estimate of your benefits can help you plan when to retire. You can start with your My Social Security account, which includes a link to a retirement calculator that allows you to adjust your average future earnings.

The site also has a page of free calculators , including a downloadable detailed calculator that the site accurately describes as “somewhat unwieldy” and “difficult to use.” You can pay for a more user-friendly option at Maximize My Social Security ($40) or Social Security Solutions ($49.95).

Or consider a session with a fee-only financial planner who has access to similar robust software. This advisor can help you fine-tune your Social Security estimates, advise you on claiming strategies and make sure your retirement isn’t based on false promises.

__________________________________

This column was provided to The Associated Press by the personal finance website NerdWallet. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.” Email: lweston@nerdwallet.com. Twitter: @lizweston.

That statistic sounds sunny, but starting a business isn’t as simple as putting an “open” sign on a door, and the challenges are multiplied for female entrepreneurs. Here are a few key hurdles:

Lack of capital

Women start their businesses with about half as much capital as men do, according to the NWBC — an average of $75,000, compared to an average of $135,000. Male business owners frequently have trouble raising necessary capital, too, but industry-specific factors make the process even harder for many women. For example, women are more likely than men to start service-based or retail businesses, which tend to have larger operational costs than software companies, for example, which might have fewer employees and less overhead. Banks are generally hesitant to loan to businesses with high cost-to-profit ratios right from the start.

The resume gap

Another stumbling block for some women is a lack of management or executive-level work experience. Apart from any gender bias that might come into play in corporate hiring and advancement, many female business owners took time to start a family, removing them from the work force around the time people start making big jumps in their careers. Because of this, many women’s backgrounds don’t resonate with bankers and other decision makers — and that can work against them when they’re seeking small-business loans.

Societal pressures

My female clients often think they have to have a certain aggressive mindset when it comes to business. I teach young girls to have confidence in their abilities: Running a business doesn’t mean forgetting who you are, but rather showing off the best aspects of your business sense.

On the flip side, some women don’t ask for the loan amount they need out of fear that they’ll be rejected. Playing it safe can result in securing less startup capital.

Despite these hurdles, there are ways women can get the support and small-business funding they need to build their dream businesses:

Make your business plan shine

If your business leadership experience doesn’t shine through on a resume, it’s important to showcase your experience and talent in another way. You can do that by mastering the art of the business plan.

All lenders require a business plan with each loan application. It must include an executive summary, company description, financial projection statements, market analysis, and cash flow and balance sheet.

Investors and lenders will be looking for reasons to say no to businesses that require high overhead, such as high labor or facilities costs. Head that off by showing you’ve put thought and analysis into your business and have a plan to keep labor and facilities costs low.

Find alternative funding and resources

If one of my clients is turned down for a loan, I encourage her to consider smaller loans or sources such as crowdfunding. The Small Business Administration also has information on alternatives to bank loans, which could include government loans or grants, and angel or venture capital financing.

If you need support during the business loan application process, contact the nonprofit organization Score, which connects women with mentors who can help develop business plans. The National Association of Women Business Owners also offers valuable resources and a membership directory women can use to network and find advisors.

The National Women’s Business Council has statistics and research data, along with news about women in business.

Starting a business is never easy, and women face even more challenges than men do. But with determination and an analytical approach, women who own businesses can overcome these hurdles and soar.

Rita Cheng is chief executive of Blue Ocean Global Wealth in Rockville, Maryland.

This article originally appeared on NerdWallet.

Now, if you have a few bucks to spare, you can invest in that nifty new business your friend is starting and, theoretically, share in its success when it takes off. This may sound like a win for investors and startups alike, but you should think carefully before taking part.

JOBS Act rules

The Jumpstart Our Business Startups Act, passed in 2012, provides a pathway for startups that aren’t publicly traded — and aren’t attractive to venture capitalists — to seek capital from smaller investors. This lets many more people take part in an investment opportunity once reserved for the deep-pocketed elite.

In late 2015, the Securities and Exchange Commission finalized the rules that will govern equity crowdfunding. Starting in May, anyone can invest in startups that register for crowdfunding with the SEC. The agency’s rules affect investors and startups by:

Restricting startups to raising $1 million through crowdfunding in a 12-month period

Limiting maximum investments by people who make $100,000 or less per year to $2,000 or 5 percent of their annual income or net worth (whichever is less) in a 12-month period

Limiting maximum investments by people whose annual income and net worth are $100,000 or greater to 10 percent of annual income or net worth (whichever is less) in a 12-month period

Capping the annual amount anyone can invest in one or more startups through crowdfunding at $100,000

Key considerations

But just because you can engage in crowdfunding as part of your investment portfolio, does that mean you should? The answer, of course, is that it depends.

Equity crowdfunding does have some advantages for small-scale investors. It can make it easier to be socially conscious in your investing. For instance, you could invest in a company that builds and distributes low-cost water-purification units in developing countries. It can also let you gain an equity stake in the startup you think is the next big winner. There’s always the chance that you’ll pick the next Facebook.

Still, investing in startups is risky. Even if you follow the SEC’s rules, there are other important factors you should consider before plunging into equity crowdfunding:

Startups have a high failure rate. The vast majority of startups fail, many within the first few years of operation. If the startup you’ve crowdfunded becomes one of these, you’ll likely lose every penny of your initial investment.

Startup financials may not be transparent. Companies that opt for crowdfunding bypass traditional investment banking processes, including in-depth auditing that’s intended to uncover major potential problems. Investors who crowdfund may not know what they’re getting into, meaning the risk of loss may be greater.

Estimated valuations may be wrong. Companies that crowdfund also bypass traditional investment valuation. Instead, investments in them are priced at “estimated fair values.” When prices are not readily available, these values are often determined by a general partner or sponsor who is involved with the company. These best-guess estimates may not reflect the actual amount that would be realized in a sale.

First, ask yourself these questions

Risk is a factor in virtually any investment. You should always consider your ability to weather potential setbacks before you invest — especially in crowdfunding.

To decide whether you are really prepared, ask yourself these two important questions: Am I mentally, emotionally and financially ready to lose this entire investment? If I lose my money, how long will it take me to rebuild this portion of my portfolio — and do I have the time?

Even very smart venture capitalists with the wherewithal to scrutinize every aspect of a startup before they invest often end up losing their investments. They have deep pockets and can usually afford the loss. Will you be able to say the same? And if the startup you invest in succeeds, it could still take years before you see a return on your investment. Will you be able to wait that long?

Many financial planners recommend that you limit your speculative investments — such as a crowdfunding investments — to 5% to 10% of your total investment portfolio if you’re a smaller investor. And this is assuming you can truly afford to lose the entire investment. If you have a conservative risk tolerance or lack the time to recover from a complete loss, you should probably avoid speculative investments altogether.

If you do decide crowdfunding is for you, ask your financial planner how you can do it correctly. For instance, you won’t want to neglect savings in your employer-sponsored retirement savings vehicles first. And as with any investment tool, crowdfunding should never be done in a silo, without considering your overall financial picture.

Steve Branton, CFP, ADPA, is a senior financial planner with Mosaic Financial Partners. Learn more about Mosaic’s Financial Fitness Challenge.

This article appears on Nasdaq.

This article originally appeared on NerdWallet.

Her goal was humble: Earn $100 a month to put toward her student loan repayments. But within months, she was able to repay her loans completely and had enough left over to take a much-needed vacation. By 2011, her Portland, Ore.-based business, Urban Cheesecraft, was strong enough that she left her job to run it full time.

Lucero and hundreds of thousands of other female entrepreneurs have launched successful businesses on Etsy. Below are a few moneymaking secrets from some seasoned Etsy shop owners. If you’re a woman who needs business financing, check out this list of small-business loans for women.

Small-business loans can give you a leg up

Lucero’s business grew fast, with national brands including Whole Foods and Williams-Sonoma approaching her with big orders. Although grateful for the opportunities, she didn’t have the upfront cash to fill monthly orders of 5,000 and 10,000 kits. A $75,000 line of credit from her local bank gave her the capital she needed.

“It has just taken all the pressure off,” says Lucero, who previously relied on credit cards, which have higher interest rates than bank loans.

If you don’t qualify for a bank loan (you need to be in business at least two years and have good credit), online small-business loans are another option. Online lenders charge higher rates, but they offer funds quickly and conveniently.

Smart purchases build the business

In the excitement of launching her homemade dog treats business, Treat Dreams, Kaitlin Anderson (above with her mother and co-founder, Kerri Anderson) was tempted to buy a computer and a new desk. But she stepped back and considered: Would those purchases directly lead to sales? She decided they wouldn’t and put the money toward a camera to capture high-quality photos of her decorated dog treats instead.

She needed pictures to draw customers in, she said: “Etsy is all about pictures.”

Negotiating terms can help cash flow

Lucero, of Urban Cheesecraft, was thrilled when Williams-Sonoma wanted to sell her cheese kits. But the upscale home-goods retailer typically pays vendors in 30 days, and Lucero couldn’t afford to wait that long for payments. So she asked them to pay her within two weeks instead, and they agreed.

“That has been extremely helpful,” she says.

Zero-interest credit cards are your friend

If you decide to use credit cards instead of small-business loans, look for a zero-interest business credit card. You’ll be able to carry a balance without paying interest throughout the introductory period, which typically lasts six to 15 months.

Anit Hora, founder of the Brooklyn-based beauty products company Mullein and Sparrow, used several zero-interest business credit cards when she needed to buy supplies to fill a large Etsy order. She was confident in her ability to pay down her balance before the introductory period ended because she had pending invoices she was ready to collect.

Sales goals can help you live your dream

Victoria Allison, owner of Victoria Allison Jewelry, has been a full-time entrepreneur since she graduated from the Fashion Institute of Design and Merchandising in San Francisco in 2010. She’s reluctant to take on small-business loans, so she lives and works within her means.

“I’ve basically been growing it steadily as it progresses,” she says.

Allison’s income has supported her and her husband throughout his time in college studying mechanical engineering. She reviews the family budget and her business finances yearly, and sets monthly sales goals to make sure she earns enough to live comfortably. Any extra goes to savings.

Free classes can make you business-savvy

Hora, of Mullein and Sparrow, has a design background and was taking classes in herbal medicine when she launched her business in 2012. Her company sells herbal skincare products. But despite her other qualifications, she didn’t know the basics of running a business. A quick Google search told her that her local Small Business Administration office offered free business classes, so she took one to learn how to use the accounting service QuickBooks.

You can find your local SBA office here — there are hundreds around the country. The SBA also sponsors hundreds of Small Business Development Centers nationwide. Each offers free one-on-one business counseling to help business owners do market research, write business plans and assess small-business loan options.

Remembering your passion can keep you inspired

No matter how creative or driven you are, every creative entrepreneur hits a rut. To resist burnout, find a way to keep yourself motivated. For Hora, that meant incorporating her business right away, even when it was a side gig.

“It made it seem more real to me,” Hora says.

When Allison, of Victoria Allison Jewelry, is feeling uninspired, she reads customers’ positive feedback.

“I remember that I love what I do,” she says.

Teddy Nykiel is a staff writer at NerdWallet, a personal finance website.

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.