The fall of Roe v. Wade has led to a significant shift in the abortion rights landscape. The anti-abortion movement’s long-term strategy has been successful in achieving one of their main goals. The impact on access to IVF and certain forms of birth control is a concern. Democrats are facing pressure to respond with a generational plan, but it remains unclear how they will do so. The future of abortion rights is uncertain, with some wondering if women may need to run for president to secure reproductive autonomy. The situation highlights the need for increased awareness and engagement on this issue.
Did Trump’s plan to bring foreign manufacturing jobs to the US pan out? Or was it just a ruse to appear that something productive was happening? It turns out, the plan to bring 12,000 jobs to Wisconsin actually yielded very few jobs, and was a failed project. The local government took on project debt and removed homes through eminent domain, and all for the end result of not actually building a facility with numerous jobs benefiting the local economy.
Some of the best budgeting methods include proportional budgeting, zero-based budgeting, and reverse budgeting.
This article was originally published on Arrest Your Debt and has been republished here with permission.
A budget method sets out how an individual, company, or organization plans to spend money over time. Budgeting for beginners can be an extensive process, but a failure to budget is a quick path to long-lasting debt problems.
Multiple budgeting methods address different needs—some people might only need to set a budget for a specific purchase, while others might be looking for long-term financial strategies. Here, we’ll explore several different budgeting methods and valuable personal finance resources to help you address future financial questions.
The Traditional Budgeting Method
The traditional way to budget is rooted in the business and corporate world. Those who are willing to invest the time can use this method to handle their personal finances.
With this method, you study the income and expense figures from a previous month or year to help you plan out an upcoming period. You subtract the expenses from your take-home income, the funds in your checking account, or cash in your savings account. With this method, you’ll also need to account for inflation and any significant changes to your income.
Track Your Expenses
Check with your bank for options to get spending reports, and use banking apps to help streamline this process. You can then update your expenses daily or weekly for the most accurate results.
This type of accounting helps you understand what you’ve brought in, what you’ve spent, and what you have left each period. You can then decide where you may need to trim spending—especially if you find that your funds are running low each month. For example, you might see opportunities to lower food expenses by:
Using store-label or generic brand groceries rather than national name brands
Cooking more and eating out less
Opting for water instead of sodas at the restaurant
Change Your Shopping Habits
Switching up your shopping habits based on sales and price hikes is an excellent way to save money. Some common habits to target include:
Driving less can help lower your monthly gas or EV charging expenses.
Ordering online, especially if you can avoid shipping and handling charges.
Purchase foods that can serve multiple meals to reduce the time and money spent at grocery stores.
Wait to grab extra supplies until you’re already commuting from work or running errands.
Zero-Based Budgeting Method: AKA Zero-Sum Budget
In this approach, you give a task to every dollar you bring home. Since you account for every dollar of income, you should not have any money left over in your budget at the end of the month.
Here, you don’t simply rely upon expense categories. However, you would identify specific categories for food spending and then set funds aside for that distinct purpose.
Below is an example of a zero-based budgeting system for a particular month:
Total Monthly Income: $3,000.00
(-) Expenses:
Rent – $700.00
Electrical – $100.00
Water – $50.00
Cable and Internet – $175.00
Wireless/Cell Phone – $200.00
Grocery Shopping – $400.00
Dine out – $75.00
Car Payment – $200.00
Gasoline – $200.00
Car Insurance – $150.00
Credit Card 1 – $75.00
Credit Card 2 – $100.00
Doctor’s Visit – $25.00
Church Offering – $100.00
Deposit to Savings Account – $450.00
(=) $0 leftover after paying all expenses
You have all of your $3,000 in take-home pay allocated to various expenses and items in this example.
The zero-based method might not involve as much detail and time as you think. Remember that you have many fixed expenses such as mortgage or rent, car payments, and phone or cable bills. If one-time expenses crop up that are high priority, you can briefly pull funds from non-essential items.
Proportional Budgeting Systems
In a proportional budget, you devote a certain amount of your monthly income to specific categories. Unlike the zero-based method, you focus less on specific items. Instead, general areas of expenses guide the budgeting process.
The 50/30/20 Budget Method
The 50/20/30 method calls for you to reserve 50% of your funds for fixed expenses (i.e. rent & car notes), 20% for emergencies, long-term savings goals, and paying extra on your debts. The remaining 30% can then go to your wants.
Suppose you have a monthly after-tax income of $3,000. In the 50/20/30 budget, you distribute your money as follows:
(50%) Essentials: $1,500
(20%) Savings, Retirement, Emergency-Fund: $600
(30%) Discretionary: $900
The 50/30/20 helps you keep long-term savings in mind, but it might not be effective if your income is low and inflation is high. When the cost of living increases, it’s easy for the essential budget to exceed 50% of your monthly income.
The 60/40 Budgeting Style
The one-time MSN Money Editor-in-Chief Richard Jenkins developed another proportional budget. In the 60/40 approach, you spend 60% of your net income on committed expenses. This categorization of spending includes mandatory expenses and non-essentials to which you commit.
You then dedicate savings and money that might not have any utility beyond “fun” to the remaining 40%. Ideally, you can distribute these funds in 10% increments across three 401(k) or retirement plans, including a tax-free account. In developing his budgeting plan, Jenkins expressed a strong preference for saving well above the recommended 5% of income.
With enough income and the ability to shave expenses from your committed expenses, you might reach significant savings goals and future spending power in a few years.
Proportional Budgets for Would-Be Homeowners
If you plan to buy a home, your monthly debt payments should not exceed 43% of gross (pretax) monthly income. In calculating this debt-to-income ratio, you include car loans, student loans, credit card debt, and the anticipated monthly mortgage payment in debt. For example, your debt payments should stay at or below $2,580 per month on a monthly gross income of $6,000.
Also, consider the cost of maintaining your home. Some financial or home experts suggest budgeting 1% of your home’s price for maintenance. Other advisors include maintenance costs with mortgage payments and suggest that your housing costs do not exceed one-fourth of your income.
Reverse Budgeting: AKA Pay Yourself First Budget
Reverse budgeting makes saving the top priority. Most budgets have you start with mandatory expenses such as debt payments, food, and utilities. When you put the budget in reverse, you first decide how much to save and then set funds aside for your other expenses.
Reverse budgets should include a mixture of short-term and long-term savings goals. If you’re planning to buy a home or car or save a certain amount for college or retirement, start the process by estimating the cost of the particular benchmark.
Envelope Budget AKA Cash Envelope Method
Many budgeting techniques focus on determining how much to spend on particular categories depending on your financial goals. With the cash envelope system, you’re mentally forcing yourself into a planned spending limit.
Specifically, you label envelopes according to spending categories. Your take-home pay goes into particular envelopes based on your budget for each category. To that end, you might use some of the methods we’ve discussed, especially a proportional budget method, to decide how to allocate the money.
As you want or need to pay for something, you take money out of the envelope for that category and pay for the items with cash. Once you have emptied the envelope, you no longer spend on that category. With discipline and commitment, you resist the urge to borrow from another category.
Calendar Budgeting
Calendar budgeting encourages you to base your spending on your paydays and your monthly due dates. For example, if you get paid on the first and the fifteenth of each month, you would mark down those days on your budget along with the amount you expect to receive.
Next, you can mark down each fixed payment that will be due during your payment periods. If you receive $1,500 on the first and you have an $80 smartphone payment due on the 10th, you’ll want to jot down $1,500-$80 on your budget. Knowing how to read your paycheck stub is vital to effectively using this method.
Value Proposition Budgeting
Value proposition budgeting, also called “priority-based budgeting,” prompts people to measure the importance of every item they spend money on. The more integral an expense is, the more it’s justifiable if a large percentage of your budget is spent on it.
Businesses and entrepreneurs might favor this method, as it illustrates which expenses are worth their weight in revenue and which you can trim down. Using this method before applying for small business loans can also help you stay within your limit.
Budgeting Methods FAQ
A lot of questions can surface when you’re building out a budget. Here are some of the most common questions we’ve encountered.
What is the best budgeting model?
Budgeting isn’t a one-size-fits-all process, so there isn’t one model that beats the rest. It helps to learn about as many different budgeting strategies as possible to help you construct a plan that suits your specific needs.
The following information will highlight some of the most prominent budgeting methods people use. However, incorporating ideas and budgeting categories from multiple different methods is also a fantastic strategy.
What Things Do I Need to Include in My Budget?
Excel spreadsheets, Google Sheets, a printable monthly budget template, or a budgeting app can all help you account for your income and expenses. Start by listing your take-home pay and other income you received in a given period. If you’re basing the budget on a year, find your W-2 form and subtract all of the taxes withheld from the gross income. As an easier approach, use your final pay stub for the calendar year or total the paystubs in the particular previous month.
Next, list your common expenses for each month. You might have debt payments such as mortgage, car, student loan debt, and credit cards. Other categories of expenses include transportation, food, clothing, utilities, entertainment, television, and other media and insurance.
Build a Better Budget with Credit.com
The budgeting method that works best for you is a personal preference and depends on your financial situation, goals, and ability to be detail-oriented. Whatever you use to create your budget, budgeting should enhance your financial literacy, help you find approaches to debt repayment and other financial goals, and afford you discipline and structure in your spending habits.
A successful budget involves total buy-in and a belief that you can achieve financial independence and finally fix your debt payoff problems. Choose one of these simple budgeting methods to take control of your financial future and reduce your overall money stress.
Check out Credit.com’s guide for managing debt if you need help recovering from a financial setback. When you’ve got the funds, our investing guide can help you learn more ways to strategically increase your income.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.
For many Americans, one of the best ways to get closer to their ideal annual income is to learn how to make money online.
According to a 2024 study from Smart Asset, individual Americans need an annual salary of $96,500 to live comfortably in a major city, and families with two children need to make about $235,000.
However, the Bureau of Labor Statistics (BLS) recently reported that the weekly median earnings for Americans was $1,139. This makes the median annual salary a little less than $60,000—far below the annual cost of living in many cities.
Some leverage the thriving “gig economy,” where you find contracted gigs in a virtual marketplace, and others generate passive income. Regardless of your skill set and interests, you’re sure to find something that works for you.
We put together a list of 27 different ways you can make money from home to supplement your income. You’ll also learn what it takes to get started and whether or not it’s right for you.
1. Find miscellaneous freelance jobs
A great place to start when learning how to make money online is by looking at platforms that offer a wide range of work. Before diving into the rest of the list, it’s helpful to know about popular platforms like Upwork and Fiverr. Every day, people and companies post jobs you may be perfect for.
At these sites, you can type in some of your various skills to see if any jobs are available. You can also create a detailed profile marketing your skills so people can find you more easily and offer you work.
Best for: People with a wide range of skills.
What you need to get started: Skills will vary depending on the specific job.
2. Take online surveys
Many companies out there want to get opinions from specific demographics and will pay you to take these surveys. While these don’t pay as much as many of the other options on the list, they also don’t take that long to do, so they are a simple way to make extra money. You can sign up to take these surveys at websites like Survey Junkie or Swagbucks.
Best for: Anyone with access to the internet.
What you need to get started: Access to a web browser.
3. Perform data entry
Data entry is a skill that many people can learn if they don’t already have experience. Doing data entry typically involves inputting data from different sources into a spreadsheet. Sometimes, you can find businesses looking for long-term workers, which can offer a little more stability than finding “gig work.” In addition to sites like Upwork and Fiverr, you can find data entry work at TechSpeed and Oworkers.
Best for: Well-organized individuals.
What you need to get started: Some proficiency with spreadsheet programs like Excel and Google Sheets.
4. Become an online tutor
For teachers looking for online side hustles, becoming an online tutor is a great option. Even if you’re not a teacher, you may be able to find some subjects that you can help students with. The platforms that link tutors with students usually cover school subjects like math, English, foreign languages, writing, and more. You can sign up to tutor on websites like TutorMe, Skooli, and Preply.
Best for: Those who love to teach.
What you need to get started: Experience teaching and expertise in the subject matter.
5. Be a virtual assistant
Many businesses of all sizes need additional help, so they hire virtual assistants. Virtual assistant tasks can vary depending on the gig. Some of these opportunities may be for one day of work, but others may need help for longer stretches of time.
These may pay you per job or per hour, and you can find these gigs on any freelance website. As of 2024, the average hourly rate for virtual assistants is $24 per hour and can be upward of almost $34 per hour.
Best for: People with a wide range of skills.
What you need to get started: Skills will vary depending on the specific job, but some skills can be helpful for many gigs like project management, organization skills, and data entry.
6. Get paid for your perspective
Focus groups are a key aspect of marketing, but it’s no longer just for new products hitting store shelves. In the digital age, companies are looking for people to review the user experience for their websites.
Sites like UserTesting pay you to share your opinions about different products from a variety of different brands. There are also sites like Userbrain that allow you to test different websites, applications, and software.
Best for: Individuals who like sharing their opinions.
What you need to get started: Access to a web browser.
7. Rent out your stuff
Do you have things that you don’t mind renting out? Well, websites like FriendWithA connect you with people who are looking to rent various items. Some of the main items people rent include cameras and film equipment, tools, generators, bikes, and other items people may only need for a day or two.
Best for: People with items they aren’t regularly using.
What you need to get started: Items in good condition to rent.
8. Rent out a room
In addition to apps like Uber, Airbnb is one of the most popular platforms in the new “sharing economy.” Many people use Airbnb as an alternative to hotels while traveling, but some people need a room to rent for longer periods.
Joining a platform like Airbnb allows you to make use of the extra room in your home for both travelers and long-term renters.
Best for: People with an extra room or home.
What you need to get started: A well-maintained room or home.
9. Sell used items
Selling used items is one of the best ways to make money because we all have things we no longer use. You no longer need to have a garage sale to sell your old items because there are platforms that can help you find buyers. There’s a long list of platforms that allow you to sell your used items like:
One of the primary advantages is that you’re no longer limited to your neighborhood and can reach a larger pool of potential buyers. If you have unique novelty items you’re willing to sell, you may want to consider a platform like eBay, where people are regularly looking for hard-to-find items. This is also a great way for kids to make extra money by selling old toys.
Some of these sites are also a great way to make money fast online because they have quick payouts once an item is sold. If the buyer is local, you can get paid the same day.
Best for: Those with old items they no longer need.
What you need to get started: Supplies to ship orders or transportation to deliver locally.
10. Sell graphic design services
There’s no shortage of graphic design jobs, and you can find these jobs through freelance websites or directly with businesses. Many businesses of all sizes need people who can design advertisements, logos, and more. If you’re a graphic designer, it may be a good idea to create a website that hosts a portfolio of your work where people can contact you directly as well.
Although it’s helpful if you have a background in graphic design, you can learn many graphic design skills on your own. There are many helpful tutorials for popular programs like Photoshop on YouTube and other social media sites.
Best for: Graphic designers.
What you need to get started: Graphic design software.
11. Create online courses
Is there something you know quite a bit about that you can teach to others? If so, you can create and sell online courses. From work-related topics to yoga to parenting strategies, offering classes for something you are a subject matter expert in can help you make money while doing something you love! Some of the best websites to sell your courses include Udemy, Skillshare, and Teachable.
You may want to familiarize yourself with online course platforms because they are a great resource to broaden your skills. If you’re willing to invest some time and a little money, there are many courses to teach you new skills that you can turn into more ways to make money online.
Best for: Those who love to teach.
What you need to get started: Expertise in the subject matter you want to teach.
12.Self-publish books
There are many ways for writers to make money online, and writing books is easier than ever. You no longer need to go through a publisher to make money selling books. Today, there are many different websites that allow you to self-publish and sell your books.
The most popular site is Amazon’s Kindle Direct Publishing (KDP), but you can also sell your books on websites like Apple, Google Play books, Kobo, and more. If you have a microphone, you can turn your books into audiobooks as a way to make even more money from your writing.
Best for: Writers.
What you need to get started: Writing software.
13. Start a blog
Blogging became big as a way to make extra money online in the early days of the internet, and it’s still very viable. The great thing about blogging is that you can write about anything you’re interested in and just need to find others who are interested in the same topic.
There are different ways to make money from a blog. You can create your own website and sell Google Ad space or find sponsors. You can also use platforms like Medium, which has a built-in audience, and you can earn revenue as more people read your posts.
Best for: Those who like to write.
What you need to get started: Writing skills and knowledge about a topic.
14. Do freelance writing
Although many news outlets and websites have dedicated journalists, there is also a lot of work out there for freelance writing. Some of the biggest websites out there, from the Washington Post to the New York Times, take submissions from freelance writers.
One of the best ways to find freelance writing work is by following editors on X (formerly known as Twitter). They’ll often post asking for people who can write on a specific topic. Sometimes, these gigs will pay hundreds of dollars for a single article. If you’re a fast writer and can write articles within a couple of hours, you could earn an hourly rate of $100 an hour or more.
If there’s a specific website you’d like to write for, just check and see if they have a page that tells you how to submit pitches for articles. Keep in mind that each publication pays different rates, and sometimes, the work can be inconsistent.
Best for: Writers. What you need to get started: Writing software.
15. Find voice-over work
There are many people looking for voice-over work in advertisements, presentations, or audiobooks. If you can read a script, there may be people out there who will hire you for your voice work. Freelance platforms like Upwork often have miscellaneous voiceover job postings, but you can make more with longer-form content.
ACX is the platform Amazon’s Audible uses for authors to find people to read their audiobooks. The prices vary, but you can sometimes make significantly more there than on the freelance websites.
Best for: Anyone with a great voice.
What you need to get started: A microphone with good quality.
16. Sell arts and crafts
There are many different marketplaces online for those who love making arts and crafts. One of the most popular marketplaces is Etsy, and there’s a market for just about anything you enjoy making. You can make your own prices, and the platform takes a small percentage of the sale.
Best for: Creatives and artists.
What you need to get started: Materials to create items.
17. Sell stock photography and videos
Have you ever wondered where websites get their high-quality photos or videos? Many of them don’t have in-house photographers or videographers. They buy stock photos and stock video footage for a variety of projects.
For those who love photography and videography, there are a variety of websites that will buy your photos and videos. Websites like SmugMug Pro, 500px, Getty Images, and many others will pay you for the rights to your photos and videos.
Best for: Photographers and videographers.
What you need to get started: A camera.
18. Sell royalty-free music
Similar to photography and videography, many websites will pay you for your music. This type of music goes in the background of YouTube videos, advertisements, and anywhere else people may need some background music. Websites like Epidemic Sound and Pond5 are good places to start when it comes to selling your tunes.
Best for: Musicians.
What you need to get started: Instruments and recording equipment. Royalty and licensing information is available on the websites.
19. Create an e-commerce website
There are many websites that allow you to sell your product, but each one takes a percentage of the profits for using their platform. You can keep a larger portion of your profits by creating an e-commerce website.
When you create your own website, you’ll hold onto most of the profits. One of the most popular ways to sell is with Shopify, which easily plugs into your website. Shopify and similar services have fees as well, but it’s less than using a platform like Etsy.
The primary downside is that marketplaces like Etsy have a built-in user base, so you would have to do your own marketing to get the word out about your website.
Best for: People with something to sell who want a larger portion of the profits.
What you need to get started: The ability to create a website.
20. Utilize affiliate links
Affiliate links are a way to make additional money that work in conjunction with many of the other jobs on this list. An affiliate link is a special link that you use for a product or service from a company, and each time someone uses your link, you get a commission. This is how many stay-at-home parents popularized blogging in the 2000s. You can easily make passive income by using affiliate links with any of the following:
Personal blogs and websites
Social media profiles and content
Podcasts
In an interview with Business Insider, creative entrepreneur and YouTuber Roberto Blake explained how he started making $5,000 a month from affiliate marketing. “I fell into affiliate marketing from the Amazon affiliate program, but then I realized a lot of subscriptions and software I was using had programs, too,” said Blake while discussing additional ways to do affiliate marketing.
Best for: Those who also make money from creating a platform like a blog, YouTube channel, or podcast.
What you need to get started: Discussing other products and services that you can link to.
21. Edit audio or video
There are many different job postings on freelance websites for audio and video editing. Many companies find freelancers through sites like Upwork and Fiverr to help them with their marketing content.
In addition to companies hiring audio and video editors, many social media influencers on platforms like YouTube and TikTok outsource their editing. Podcasters often hire audio editors as well.
This is another one of the skills that you can potentially learn if you don’t have experience yet.
Best for: People who enjoy editing audio and video.
What you need to get started: Software to edit audio and video.
22. Edit copy
People are always looking for editors. Whether it’s an author looking for someone to edit their next book or a company that needs an editor for something they’re publishing for the public, people need their words to look excellent. Previously mentioned websites like Upwork and Fiverr regularly have jobs for editors, but you can also find work at Reedsy and Wordvice.
Best for: Those who love language.
What you need to get started: Familiarity with the English language and various types of grammar rules, such as Chicago or AP style.
23. Become a social media influencer
Currently, it’s easier than ever to make money online through social media platforms. Platforms like YouTube and TikTok pay creators directly through their creator programs. Typically, you have to meet certain criteria to be eligible for these programs, but some people make hundreds or even thousands of dollars each month through them.
If you’re an online business owner, a writer, or anyone who sells products or services, social media is a great way to find new buyers. On these platforms, you can provide links to your products, and you can also include affiliate links as a way to earn even more.
Best for: People who don’t mind being on camera.
What you need to get started: Some or all of the following: a camera, smartphone, and editing software.
24. Start a podcast
Podcasting is an easy way to start making content that could potentially make you money. You have a lot of creative freedom with podcasts as well. You can talk about topics that you’re interested in, tell stories, or interview people. Then, you can broadcast it to thousands or even millions of potential listeners on apps like Apple Podcasts and Spotify.
It can take some time to make money from podcasting. Unlike social media platforms like YouTube or TikTok, podcasting platforms don’t have a program to pay creators. Podcasters primarily make their money from advertisements and affiliate links. Once you have a dedicated audience, you can reach out to companies to sell ad space on your podcast.
Best for: People who enjoy talking.
What you need to get started: A microphone and audio-editing software.
25. Create a newsletter
Newsletters were some of the first ways for people to make money online. Services like Mailchimp and others allow you to create an email list and send a newsletter out to your subscribers.
The newsletter can be as frequent as you’d like, you can discuss different topics that interest you, and you can put it behind a paywall on your website. Substack is a newer platform that combines blogging with newsletters, and you can charge readers a monthly or annual subscription. This is a helpful tool for those who don’t want to build their own website.
You can also use a newsletter as a way to promote your online business and alert your customers of new products or discounts.
Anne Janzer is a self-published author and discusses how she uses her newsletter to sell more books. “When I have something new going on, I can go and ask those folks, ‘Hey, can you share the word about this?’ and they’re the first ones to go out and post about my new book,” Janzer said in an interview about how her newsletter leads to more sales.
Best for: Writers and people with an online business. What you need to get started: The ability to write.
26. Walk or board dogs
If you’re a dog lover, this may be the right option for you. There are apps like Wag and Rover that connect dog walkers with people, but you can board dogs as well. For those who rent, you may need your landlord’s approval before boarding dogs, but this is a great option for those who want to make money from home.
Both Wag and Rover offer additional dog services for those with other dog specialties. These include:
Drop-in visits to check on dogs while the owner is away
Dog training
Dog sitting
Best for: People who love dogs.
What you need to get started: Possibly transportation to get to clients and a home that allows pets if you choose to board them.
27. Trade stocks
This path of making money from home is on the riskier side, but it can also come with higher rewards. The difference between investing and day trading stocks is that investments are long term, whereas trading involves buying and selling stocks on a daily basis.
To make money trading stocks, you’ll need to stay updated on all of the latest stock news and learn when to buy and sell properly. There’s a learning curve to trading stocks, but some people make full-time income trading stocks through brokerages like Charles Schwab, Vanguard, or Robinhood.
Best for: People with a high risk tolerance.
What you need to get started: Before trading, you’ll want to learn as much as you can about various stocks and how to read the market to minimize losses. Then, you need a computer to trade, or you can trade on apps like Robinhood.
Making money online can help you pay off your debts
If you have a lot of debt, allocating funds from your paycheck can be difficult. Making money online is a great way to earn extra income that you can put toward your debts and potentially improve your credit. Some people are even able to make more money online than they would in an office job.
Having a good credit score is also a way to get access to credit cards and loans. You can use these to fund your online business or better equipment. This all starts with knowing your credit health and having the right tools.
At Credit.com, you can get your free credit report card to check your credit. Sign up for ExtraCredit for additional tools like credit monitoring and ways to report additional payments to the major credit bureaus.
Constantly feeling tired and lazy? There might be more than meets the eye. One Reddit user shared with the Reddit community how she struggled with extreme laziness and how she didn’t want to do anything with her life—even the simplest things.
Here’s an excerpt of the OP’s problem:
“I (32f) am the laziest person I know. It’s a huge problem and I know I need to fix it. I just don’t know how. Aside from relying on motivation (which I don’t have) to get me off my a-, I have no idea what I’m meant to do.
“I’ve always been this way, for as long as I can remember. As a kid/teen my parents would refuse to come into my room because it was such a mess. They would eventually force me to clean it up. After it was all clean, my mum would say to me, ‘Doesn’t it feel good to have a tidy room and actually have accomplished something?’. But I would never feel ‘good’ for having done it, just exhausted from the effort.
I think that’s part of the issue; I have never got a ‘good feeling’ from finishing or accomplishing something. Not from small things, like cleaning or meeting gym goals or work targets, etc. Not even for big things, like scoring 97% in an exam or getting a new job. It just doesn’t happen for me. I don’t know if I’m the weird one or if my mum exaggerated this ‘good feeling’ that people get but I have no clue what it’s even supposed to feel like.
“And my laziness just keeps getting worse. I’ve lost out on money (that I can’t really afford to lose) by not returning clothes that don’t fit because going back to the shop is too much effort. Once I ordered something online that got rerouted to a collection point (less than a 10 minute walk from my house). It was non refundable. I never collected it. Picking it up was too much effort so I just accepted that I would lose the money. I have wasted money on takeout when I have food in the fridge because I can’t be bothered cooking. I’ve bought disposable plates because I have no clean ones left but I’m too lazy to do the dishes.”
Is it just the lack of motivation, discipline, and accountability, or is it more than that? Here’s what the Reddit community says!
1. Executive Dysfunction
Photo Credit: Shutterstock.
One person said, “Sounds like executive dysfunction, which is super common with depression, anxiety, and ADHD. You may wanna get checked out if you can.”
The second person replied, “Came to say this: OP, get evaluated ASAP. I identify with so much of what you said and recently found out I had ADHD. I’ve done a 180 since beginning treatment involving both behavioral aspects and meds. It’s taking time to build the habits, but it’s a totally different worldview now.”
Then somebody else agreed who also feel the same, “This. It’s usually not just laziness. I feel ‘lazy’ when I’m off ADHD meds.”
2. See if You Have ADHD or Ptsd
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Somebody commented with some helpful tips to help OP, “You might also want to look into ADHD or PTSD. Both can lead to this awful feeling of WANTING to do things but feeling unmotivated, even if you think they are things that will bring joy. Here are a couple tricks I use:
“Sometimes I try to do something in an odd way to get a bit of dopamine (I’m going to hop to the kitchen or stand up and pat my head three times, etc. to jolt myself out of those periods where I’m ‘stuck’.
“I also gamify things (loads of digital apps and websites like Chore Wars) or I write a list of tasks on a loot box (I play DD and you can get mini figure loot boxes, I find it has to be something I’m excited about but don’t know what’s in it, so loot boxes are perfect). If I do all the things on the list, I get the loot box.
“I’ve also been working on mindfulness, just focusing deeply on the action at the moment and not how overwhelming the whole action is. As a messy person, I’ve had to ask for help getting my space to ground zero, and now I work on it. When I leave a room, I challenge myself to clean the space I left in 20 seconds.
“Since you like books, try audiobooks while you do chores. Assign a book to each chore. Only way to get further in the book is to do the chore. Do the things that should bring you joy, even if they don’t until they do. I read that in an ADHD book, its frustrating when things we love don’t bring us joy. But the advice is to do it anyway, and eventually, that joy comes back.
“Get an occupational therapist. Mine was cheap and gave me lots of tricks to manage this stuff and also I had to call him and be accountable each week. If you can’t afford that, set up a weekly call with a family member where you discuss your goals and are held accountable.
“Finally, involve other people! Sign up for a class in the mornings so the guilt motivates you to go. Schedule a weekly morning walk with a friend. Let your family know you are overwhelmed and stuck and ask if they can come over to help you reset your space. Hope something here helped.”
3. The Secret Is Discipline and Consistency
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“Motivation only carries so far. You need discipline and consistency. I know this because I have the same problem. Set schedules for things; I study at 7 am, work out at 8, work, practice guitar, etc. Some days you really won’t want to but getting into the habit is important.
“There are two options: either you are content with your lifestyle and won’t change it, or you’re so unhappy that you are willing to do anything to change it. Figure that part out and the rest will come together,” shared somebody.
“This much executive dysfunction sounds extreme for a willpower problem; it might be a medical thing,” replied another.
“She won’t have discipline for things she absolutely doesn’t care about. I can be a bit lazy but I still make my bed or wash my sheets or floor because I love the way it looks and feels. She feels no joy from it and should probably look into why she gets no joy or satisfaction from having a clean room, etc.; that’s not really normal and possible depression,” added another with a different view.
4. Get Yourself Checked or Get Out of Your Comfort Zone
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Somebody commented, “Many people who have chronic depression, autism, or ADHD show signs of ‘laziness’—you mention you suffered depression previously and know what it feels like, then you went on to mention your mood. Do you realize that depression often has no mood-related symptoms? It doesn’t feel ‘sad’ oftentimes. It feels like exhaustion and laziness—exactly what you described. However, if you’re unwilling to even entertain the idea, then look into autism and ADHD instead.
“Another factor is need. People are capable of incredible things when necessitated, but if you’re comfortable and the people around you have allowed you not to do things that require significant effort, then you likely have no reason to push yourself. If you feel the issue isn’t related to an illness or disorder, then get out of your comfort zone and put yourself in an uneasy situation.”
5. Start Small Until It Becomes a Habit
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“I am in the same boat. Here is what I try to do: (1) I do 1 task I don’t like per day. Don’t try to do them all on the same day. (2) Basic hygiene is very important should be done everyday. (3) I try to give myself rewards on Monday and Friday. Monday would be like buying myself a really good coffee before work and on Friday I would be eating out instead of making a lunch.
“I can talk to you about depression, discipline, and all that. But all of those never stuck in my brain. The answer is to start small and keep track of what you do. I like to make a to do list and just looking at the end of the week and what I have accomplished motivates me to do more. I think we are not made to find happiness every day or in everything we do. So need to take it when we can,” shared somebody.
“I second this! Start slow. Pick one section of your house, the bathroom, the living room, and just clean that section only. Set a timer and see how much you can do in 5-10 minutes, then reward yourself with TV or a snack. The next day, another 5-10 minutes. Make a list, cross things off. It’s not easy, but please be kind to yourself. You may not be depressed, but the drudgery of life can definitely get to you,” agreed the second person.
6. It’s Not Your Identity
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One user said, “First, and most importantly, stop using it as an identity marker. This goes for anything you want to overcome. When you say, ‘I am lazy,’ your mind reinforces that identity. Instead, say, ‘I’m working my lazy behavior. See how the language separates you from it? Even better, say something like, ‘I’m working on getting more things done.’ That’s more positive and affirming, and it focuses your mind in that direction.”
7. Start With the Two-Minute Rule
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“Start with the 2-minute rule. As soon as you think of something you need to do that takes 2 minutes or less, you top what you are doing and get it done. Don’t wait for the TV commercials, don’t wait for the YouTube video you’re watching to end, just do it. This will start to strengthen your self-control,” stated somebody.
8. Set a Timer for 20 Minutes
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Somebody said, “I set a timer for 20 minutes every night. I then challenge myself to see how much I can clean. When you first start, it may feel like you’re not accomplishing much but eventually you’ll find yourself searching for things to clean.”
9. Put Yourself in a “Swim or Sink” Situation
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“Put yourself in a ‘sink or swim’ situation … I was never really ‘lazy’ per se but when my parents kicked me out at 26 for doing fraud with their credit cards I had to make it on my own. I slept in my old a- truck with an expired registration at night, took my showers in a gym, and survived mostly on microwaved food at convenience stores. I had to work my a- off to get to where I’m at now. I’m a homeowner, have paid off two vehicles since then and I still work two jobs and consistently save and invest portions of my income,” shared somebody.
10. Get Yourself Accountable
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Somebody said, “You behave the way you do because you’ve not yet encountered a consequence important enough for you to behave differently. It sounds like no one or nothing in your life is holding you accountable to behave differently, and you’re not choosing to hold yourself accountable, so I don’t think you’re going to change. If you were well and truly disgusted with your own behavior, you would change it.”
What do you think the OP should do? Have you struggled with the same? Let us know in the comments!
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Source: Reddit
10 Actors Perfectly Cast for Their Character Roles
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Have you ever watched a movie or show and been completely lost in it because of how well an actor or actress became their character? Check out this article for a whole list of actors who were perfectly cast!
11 Vampire Movies That Will Make You Thirst for More
Photo Credit: Columbia Pictures.
You know that feeling where you’re on a movie kick in a certain genre, but you seem to run out of good movies to watch? Well, if you’re down for a vampire movie or three, check out this article for the best ones out there!
10 Incredible Movies That People Rated 10 Out of 10
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It’s pretty hard to replicate the experience of watching your favorite movie for the first time, but we’ve put together a list of movies that people have rated at a perfect 10/10. Next time you need a good movie to watch, check this out!
10 Famous People Who Canceled Themselves With Their Own Stupidity
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We’ve all been there: you make a comment you haven’t thought through at all, and the whole room goes silent at what you’ve just said. But can you imagine doing that as a famous person—and getting canceled? Check out this list of celebrities who did just that!
13 Things You Shouldn’t Do When You’re in the US
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Are you planning a trip to the US? Culture varies a lot between countries, even countries that share borders. So if you’re headed to the good old U. S. of A, here are a few pointers to make your travels go more smoothly!
With the upcoming presidential debates scheduled between Donald Trump and Joe Biden, it’s essential to consider how fact-checkers will play a crucial role in ensuring transparency and accuracy during these discussions. As Mr. Trump has a history of making false or misleading claims, having independent moderators like CNN’s Jake Tapper and Dana Bash, as well as ABC’s debate moderators, will be critical in maintaining the integrity of these events.
During the debates, fact-checkers will have to swiftly address any untrue statements made by the candidates, helping viewers understand which claims are based on accurate information and which are not. In doing so, they’ll contribute to a more informed public discourse and help protect the credibility of those participating in the debates.
In conclusion, as Trump continues to take credit for achievements he did not contribute to and as Biden’s accomplishments are scrutinized under the microscope of fact-checking, it is essential that debate moderators prioritize accuracy and transparency. This will ensure that voters can make informed decisions based on reliable information provided during these crucial events.
In recent developments pertaining to the Trump immunity cases, U.S. District Judge Aileen M. Cannon has signaled her intention to hold a substantial hearing on the matter of special counsel Jack Smith’s appointment. This marks yet another successful delay tactic employed by former President Donald Trump and his legal team. While Cannon’s apparent interest in the subject is noteworthy, it also feeds into the two chief criticisms of her handling of the case: that she’s slow-walking it and treating Trump’s delay tactics more seriously than they deserve.
This effort to question the legality of special counsels has been spearheaded by prominent conservative lawyers, including former Reagan administration attorney general Edwin Meese III. These legal experts have argued for years that special counsels like Mueller and Smith aren’t authorized under the law because they are not confirmed by the Senate. Critics maintain that special counsels should be considered “principal” rather than “inferior” officers, thus requiring Senate confirmation.
Despite Cannon’s apparent interest in this line of argument, it has fared poorly with regard to Robert S. Mueller III. Two U.S. district judges, including a Trump nominee, rejected a similar claim about Mueller’s appointment. Later, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit unanimously upheld the decision.
However, in our current political and legal climate, nothing can be ruled out. As Katy Harriger, an expert on special counsels at Wake Forest University, points out, “As has been made clear in other areas, commitment to earlier precedent for precedent’s sake is not an animating value of this Court.” With the current majority on the Roberts Court generally hostile to appointment arrangements that limit presidential control over executive actors, there is uncertainty as to whether a special counsel like Smith meets the requirements for an “inferior officer.”
Critics of Trump’s continued immunity claims may deride the Supreme Court for taking up these issues after they were roundly rejected by a unanimous appeals court panel. However, in this instance, the court seems more inclined to decide on guardrails rather than actually sparing Trump from prosecution.
As we move closer to a potential second Trump term in which he’s poised to further test the limits of the chief executive, it would seem less drastic for courts to sign off on the idea that Smith’s particular appointment was unlawful. And if Cannon’s latest controversial decision is any indication, this outcome may be in play. The question now is whether the historically conservative Supreme Court might ultimately take a similar stance. Only time will tell how this saga unfolds and what impact it may have on the future of special counsels in America.
Do you ever walk out of the movie theatre after seeing a film and just want to applaud? It can be so satisfying when your favourite actor holds their own in a serious role, successfully transitioning from funny to dynamic and back again. The best actors have mastered the skill of seamlessly segueing between different tonal registers, creating memorable performances that stay with you long after the credits roll. Below are the top 15 picks for those who excel at humorous and dramatic roles!
1. John C. Reilly
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“John C. Reilly, who even had a comedic song at the Oscars once at how he was both in Boogie Nights and Talladega Nights.”, shared one user.
One user shared, “Olivia Colman, winner of the 2013 BAFTA TV Award for Best Female Comedy Performance, and Olivia Colman, winner of the 2013 BAFTA TV Award for Best [Dramatic] Supporting Actress.”
Another user replied, “Love her so much. My wife was a huge fan of Peep Show, and we thought she was so funny; then we watched Broadchurch, which blew us away. Now she’s a movie star, and I couldn’t be happier for her.”
3. Bryan Cranston
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One user posted, “Bryan Cranston. Amazing in Malcolm in the Middle and Breaking Bad. Simply one of the best.”
Another user commented, “I wonder why I had to scroll down that far. He played both one of the funniest and most threatening roles on TV. There were a few interviews where he slipped into Heisenberg conversation, and it’s fascinating how he can transition flawlessly from funny answers to being hyper-serious and scary.”
4. Rose Byrne
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“Rose Byrne.”, posted by one user.
Another user shared, “Came to say this—she’s clearly had dramatic chops since the Damages days, but she’s also hilarious in any comedy you put her in, even if the movie itself isn’t.”
5. Steve Carell
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“Steve Carrell always had that comedic actor label for the longest time for me. Even with more serious roles like in Dan in Real Life he still played it funny. But then I saw Foxcatcher, and he just DISAPPEARED into that role and was absolutely terrifying. I totally bought him as Du Pont, and despite all of the comedic roles he’s done before, it did not take me out of his monstrous performance he did one bit. Great addition!” said one user.
6. Sam Rockwell
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One user mentioned, “Second him. In my experience, all his characters are likable and charismatic in some way. In The Green Mile, he was not exactly a likeable guy, but his performance was so energetic it was hard not to enjoy watching it.
Loved him in Three Billboards Outside Ebbing Missouri. That was a character that felt part realistic, partly like a comedic character. Serious and humorous. Such an outstanding balance.”
7. Jeff Daniels
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One Redditor stated, “Jeff Daniels.”
Another added, “Lol My Favorite Martian and Dumb and Dumber to Newsroom is so insane because it’s such an extreme contrast in terms of performances but he nails both perfectly. I think this is my favourite addition. Thank you!”
8. Robin Williams
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“Robin Williams. He can break your heart, make you just about [pee] yourself laughing, then break your heart, leaving you sobbing all over again, all in the space of 3-4 minutes,” posted one user.
A Redditor added, “Surprised no one mentions Adam Scott. Significant in Severance and Step Brothers/Parks and Rec.”
Another user replied, “I was in awe at how amazing he was in Severance. I wouldn’t have bet on him being this good.”
10. David Tennant
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“David Tennant. One of the most popular incarnations of Doctor Who; played the insidious Purple Man in Jessica Jones; then was fantastic in Broadchurch (alongside another worthy mention Olivia Colman) and is currently back as Crowley in Good Omens,” commented one user.
11. Emma Stone
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One posted, “Emma Stone.”
Another user replied, “Great choice! I absolutely cannot wait to see her in Poor Things.”
11. Bob Odenkirk
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“Bob Odenkirk deserves a mention,” shared one user.
12. John Goodman
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One user shared, “John Goodman.”
Another user replied, “Check out the TV series Treme. The first season, he was amazing.”
13. Phillip Seymour Hoffman
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“I’m pretty amazed everybody in this thread really forgot about Phillip Seymour Hoffman,” one user posted.
Another Redditor added, “Same, I thought he’d be close to the top. He was the first actor I thought of.”
14. Robert de Niro
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One Redditor shared, “De Niro made a pretty solid transition to comedy with Analyze This and Meet the Fockers, but then it didn’t quite continue, and he made more bad comedies than good. Still, he himself can definitely do perfect comedy and is believable; just should have picked better scripts.”
15. Meryl Streep
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“Meryl Streep,” shared one user.
One Redditor commented, “Meryl does whatever the f- she wants because she can, and she pulls it off. Same with Helen Mirren. They’re perfect and my life goal for beautiful aging.”
What do you think of the actors listed above? Share your thoughts, or you can read more here!
10 Actors Perfectly Cast for Their Character Roles
Photo Credit: Warner Bros.
Have you ever watched a movie or show and been completely lost in it because of how well an actor or actress became their character? Check out this article for a whole list of actors who were perfectly cast!
11 Vampire Movies That Will Make You Thirst for More
Photo Credit: Columbia Pictures.
You know that feeling where you’re on a movie kick in a certain genre, but you seem to run out of good movies to watch? Well, if you’re down for a vampire movie or three, check out this article for the best ones out there!
10 Incredible Movies That People Rated 10 Out of 10
Photo Credit: Universal Studios.
It’s pretty hard to replicate the experience of watching your favorite movie for the first time, but we’ve put together a list of movies that people have rated at a perfect 10/10. Next time you need a good movie to watch, check this out!
10 Famous People Who Canceled Themselves With Their Own Stupidity
Photo Credit: Shutterstock.
We’ve all been there: you make a comment you haven’t thought through at all, and the whole room goes silent at what you’ve just said. But can you imagine doing that as a famous person—and getting canceled? Check out this list of celebrities who did just that!
13 Things You Shouldn’t Do When You’re in the US
Photo Credit: Shutterstock.
Are you planning a trip to the US? Culture varies a lot between countries, even countries that share borders. So if you’re headed to the good old U. S. of A, here are a few pointers to make your travels go more smoothly!
Debt can feel like a heavy burden, but understanding the different types of debt and how to manage them can help you stay financially healthy. From student loans to credit card debt, here’s a guide to common types of debt and tips for avoiding growing debt.
Student Loans
Student loans come in two main types: federal student loans, which are backed by the government, and private student loans, which are offered by banks, credit unions, and other lenders.
Federal Student Loans: These loans typically have lower interest rates and more flexible repayment options compared to private student loans. They also offer benefits like income-driven repayment plans and loan forgiveness programs for certain professions.
Private Student Loans: Private student loans usually have higher interest rates and fewer borrower protections compared to federal loans. They’re a good option for filling the gap between financial aid and the cost of attendance, but should be used wisely.
To prevent student loan debt from dominating your life, budget carefully, prioritize loan payments, and explore income-driven repayment plans or loan forgiveness programs. Communicate with lenders if you face financial hardship and seek guidance from financial advisors.
Credit Card Debt
Credit cards are a form of revolving credit, which means you can borrow money up to a certain credit limit and pay it back over time. If you don’t pay off the full balance each month, you’ll accrue interest on the remaining balance. Credit cards often have high interest rates compared to other types of loans, which can make it easy for debt to spiral out of control if not managed carefully.
To avoid credit card debt, pay off balances in full each month to avoid interest charges (it’s a myth that you need to carry a balance to build credit) and set a budget to limit spending. Avoid maxing out credit cards and making only minimum payments. Monitor spending regularly and prioritize paying off high-interest debts first.
Car Loans
The interest rate on a car loan can vary depending on factors like your credit score, the length of the loan term, and the type of vehicle you’re purchasing. Car loans are typically secured by the vehicle itself, which means the lender can repossess the car if you fail to make payments. Cars lose value over time, so it’s important to consider how much you’re willing to spend on a vehicle relative to its long-term value.
Common mistakes with car loans include not shopping around for the best interest rate, taking out loans with lengthy terms that result in higher overall costs, and failing to make extra payments to pay off the loan faster. Additionally, some people underestimate the total cost of ownership, including maintenance and insurance, leading to financial strain.
Personal Loans
Personal loans are typically unsecured, which means they’re not backed by collateral like a car or house. Personal loans often have fixed interest rates, which means your monthly payment stays the same over the life of the loan. Lenders usually require a credit check to qualify for a personal loan, and your interest rate will depend on factors like your credit score and income.
Common mistakes with personal loans include borrowing more than needed, neglecting to compare interest rates and fees from multiple lenders, and not understanding the terms and conditions of the loan. Additionally, some people use personal loans for non-essential expenses, increasing their debt burden unnecessarily. It’s also common to overlook the impact of the loan on overall financial health and fail to create a repayment plan.
Tips for Avoiding Growing Debt
1. Create a Budget
Track your income and expenses to see where your money is going each month. Set spending limits for different categories like groceries, entertainment, and transportation. Prioritize essential expenses like housing, food, and utilities, and cut back on non-essential expenses where you can.
2. Build an Emergency Fund
Save money in an emergency fund to cover unexpected expenses like car repairs, medical bills, or job loss. Aim to save enough to cover 3-6 months’ worth of living expenses, or more if you have dependents or are self-employed.
3. Pay Off High-Interest Debt First
Focus on paying off debt with the highest interest rates first, like credit card debt. Consider strategies like the debt avalanche or debt snowball method to prioritize your debts and pay them off more efficiently.
4. Negotiate Lower Interest Rates
Contact your lenders to see if you qualify for lower interest rates or better repayment terms. Consider transferring high-interest credit card balances to a card with a lower interest rate or taking out a personal loan to consolidate debt.
5. Seek Financial Assistance if Needed
If you’re struggling to manage your debt, don’t be afraid to seek help from a credit counselor or financial advisor. They can help you create a debt repayment plan, negotiate with creditors, and explore options like debt settlement or bankruptcy if necessary. By understanding the different types of debt and implementing these tips, you can avoid growing debt and achieve financial stability. Remember, managing debt is all about making informed decisions and taking control of your financial future.
Interest rates are fees that you pay while borrowing money until you completely repay a loan.
Interest rates are calculated with the formula A=P(1+rt), which can help you find the total interest on a loan.
Having a higher credit score can help you qualify for lower interest rates.
In essence, interest rates work by determining how much a borrower must pay a lender while using a loan. Learning about things like interest and APR can help you understand how much you’ll have to pay for a loan in total—and how much you can charge when lending your funds to someone else.
This guide will explore how interest rates are calculated and how they apply to different types of loans. We’ll also share some of Credit.com’s helpful financial tools, including our interactive calculators.
What Is Interest?
When borrowers lend their money to another person or organization, they charge interest until the loan is repaid in full. The precise amount of interest that you’ll pay for a loan depends on several factors, including the total amount you initially borrow and the time it takes you to repay the loan.
When it comes to money in savings accounts, interest works to your benefit—financial institutions will pay you for the privilege of using your funds.
How Are Interest Rates Calculated?
Simple interest and compound interest are two common methods that lenders use when charging borrowers.
You can find out how much simple interest you might have to pay on a loan with the formula A = P (1 + rt).
A – the total amount that a loan costs when fees are taken into account
P – the principal amount that you initially borrow when you take out a loan
r – the rate of interest that a lender charges annually
t – the overall time it takes you to repay a loan. This is calculated in years
Here’s an example of the formula at play:
The principal amount you borrow is $5,000.
The bank sets your interest rate at 3%.
It takes you five years to pay back the loan.
In this case, A is $5,750.
Using this information, the formula should be $5,750 = $5,000 x (1 + 0.03 x 5).
Compound interest calculates interest growth (like in a savings account) based on the principal amount and all previous interest payments over a set period. The formula to find compound interest is CI = P( 1 + r/n)nt.
CI – your total compound interest
P – the principal amount
r – the annual interest rate
n – the number of times your interest compounds in a year—this can be daily (365), monthly (12), or annually (1)
t – the total amount of time that passes on a loan or investment
Compound interest on a loan can be exponentially costly, while compound interest on an investment or savings account can generate great profit over time.
Here’s an example of how compound interest can build income in a savings account:
The principal amount you invest is $5,000.
Your interest rate is 4%, or 0.04 in decimal form.
The interest on your account is compounded annually (1).
You commit to a 10-year investment plan.
Plug those numbers into the formula, and you’ll get $5,000 ( 1 + 0.04/1) x 1 x 10, which will equal $7,401.22 in compound interest.
Keep in mind that we didn’t factor in additional contributions with this example. Investors who add more funds to their accounts each month can increase their earnings from compound interest.
What Is the Difference Between APR and APY?
APR represents your annual percentage rate, though people may simply say interest instead of using this term. This works for credit cards but not all types of loans. For most loans, APR also includes fees that are slightly more costly than the base interest rate.
Annual percentage yield (APY) refers to the amount of interest you’ll earn on an investment each year. When shopping around for compound interest savings accounts, the APY is your estimated rate of return.
How Is APR Calculated?
Similar to simple interest, there’s a formula to calculate APR:
APR = ((Interest + Fees / Principal amount) / Number of days in your loan term)) x 365 x 100.
When calculating APR, it’s important to add interest and fees together beforeyou divide your principal amount. After that, you’d divide the resulting amount by the number of days in your loan term, then you’d multiply the resulting number by 365 (to represent each day of the year) by 100.
How Is Your Interest Rate Determined When You Borrow Money?
Your credit history, the lender’s unique policies, and the base rate influenced by the Federal Reserve determine how much interest you’ll initially receive.
Market factors influence your base rate. This includes economic trends and changes made by the Federal Reserve.
Each bank sets lending rates and policies that apply to all of its patrons.
If you have a higher credit score, you have a better chance of earning a lower interest rate.
Why Is Your Credit Score Important?
Lenders use credit scores to gauge which applicants will most likely repay a loan. Having a good or excellent credit score shows lenders that you tend to repay your loans on time and that you don’t borrow more than you can afford to repay.
Poor credit, however, can cause lenders to doubt your ability to repay any funds that they give you. To make up for this doubt, lenders might give you higher interest rates to discourage you from borrowing too much money or being late with your payments.
Different Types of Interest Rates
Interest rates have different nuances depending on the type of loan they’re tied to. For example, home mortgage rates factor in fees and taxes, while interest rates for credit cards are a bit more straightforward. Below, we’ve tallied up several examples.
Credit Card Interest Rates
Credit card interest is calculated based on factors like the balance on your card and the transaction you’re initiating. Moreover, lenders might charge penalty APR if a cardholder repeatedly misses payments or exceeds their credit limit.
The best way to figure out how interest affects your credit card is by learning your account’s daily periodic rate (DPR). You can find your DPR by taking your APR, converting it into a decimal, and then dividing by 365.
Mortgage Interest Rates
A works differently than a credit card’s interest rate largely due to the various items that factor into it. Mortgage insurance, property taxes, and realtor fees can all influence the APR on your home.
It’s best to check your credit score and report before buying a home, as your credit health will greatly affect your mortgage APR. Other factors that impact your rate include:
The state you live in
What type of property you want to buy
How much you’re putting down
The type of lending you qualify for
Auto Loan Interest Rates
It’s helpful to make sure you understand all of the common terms about auto loans before you sign any documents. Most auto loans also follow the simple interest formula we explored earlier. However, the fine print can include items like paperwork fees and title fees that can result in surprise expenses.
It’s possible to negotiate some of the fees that dealerships present before signing any paperwork. Arming yourself with knowledge, a sizeable down payment, and a strong credit score all grant valuable bargaining power during the negotiation process.
Fixed Interest Rates vs. Variable Interest Rates
Banks may offer fixed interest rates or variable interest rates on their loans and credit cards. With a fixed interest rate, the APR on your loan can’t change unless your financial institution notifies you and then adjusts it.
Variable interest rates can fluctuate based on changes to the economy and the “prime rate” the Federal Reserve sets for financial institutions. Fixed interest rates are more predictable, but they can occasionally cost more than the prime rate. Variable rates ebb and flow, but they can occasionally be lower than the prime rate.
Get Better Interest Rates With Credit.com
Your credit score can help you secure fantastic loans with low interest rates. Seeking personal finance advice before you apply can greatly improve your chances of scoring low-interest loans and phenomenal promotional opportunities.
Sign up with Credit.com—we’ll provide you your Vantage 3.0 credit score and a breakdown of how it works. There are also tools to help you plan what areas of your credit you would like to work on.