Though mortgage interest rates rose this past week, the relatively small increase may be a sign things are settling down. After a surprisingly strong Oct. 4 jobs report drove rates rapidly upward, interest rates are beginning to normalize. In the week ending Oct. 17, the average 30-year fixed-rate mortgage rate rose six basis points, averaging 6.46%. A basis point is one one-hundredth of a percentage point.
Mortgage interest rates in the mid-sixes don’t feel great. The current average is about half a percentage point higher than it was a month ago. But remember also that today’s interest rates are more than three-quarters of a percentage point lower than the highs we saw back in spring.
So here’s the $415,000 question — since that’s roughly the median sales price for an existing home, according to data from the National Association of Realtors. Where are mortgage interest rates headed?
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Regular folks think rates will fall
Consumers are feeling darn good about where mortgage interest rates are headed. In September, the Fannie Mae Home Purchase Sentiment Index saw record levels of optimism, with 42% of consumers expecting mortgage interest rates to decline over the next 12 months.
As noted above, mortgage rates have fallen over the past six months or so. But especially for folks who aren’t rate watchers, widespread anticipation of Federal Reserve action was likely spreading the positive vibes. In September, after holding steady for more than a year, the Fed dropped its federal funds rate — the one interest rate the central bankers actually control — by 50 basis points.
The Fed finally moving into a rate-cutting cycle may have shifted consumer perceptions more than mortgage rates falling on their own. A NerdWallet survey conducted by the Harris Poll in July — when mortgage rates were already falling — found that 15% of Americans planned to purchase a home once rates go down. Coupled with likely future Fed cuts, that rate positivity could turn more homebuying hopefuls into serious shoppers.
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Housing economists temper expectations
While consumer surveys don’t get into specifics, housing economists most certainly do. And while there’s a broad consensus that mortgage interest rates will trend lower throughout the next year, these are not drop-everything-and-start-house-hunting numbers.
Government-sponsored enterprise Fannie Mae, which supports the housing market by purchasing and securitizing home loans, updates its interest rate predictions monthly. As of September, Fannie Mae anticipates 30-year fixed interest rates to end this year at 6.2%. Its overall 2025 forecast currently calls for the gentlest slope, with rates falling from 6% in the first quarter to 5.7% in the fourth quarter of 2025.
Another monthly forecast comes from real estate finance industry group the Mortgage Bankers Association. The MBA’s September forecast is nearly identical to Fannie Mae’s, with rates ending 2024 at 6.2%. But the MBA predicts even less of a drop next year, with rates ending 2025 at 5.8%.
The National Association of Realtors, which is the country’s largest trade association, updates its rates forecast less frequently. But in fresh numbers from the beginning of October, NAR expects a similar trend: Rates would close this year at 6.1% and wrap up 2025 at 5.8%.
Overall, there’s consensus among both consumers and industry economists that mortgage interest rates are headed down. But a decline of roughly 10 basis points per quarter (just a tenth of a percentage point) is probably not what regular people are thinking when they say they’re expecting rates to fall. Remember, though, that even the most well-informed expert predictions are just that — predictions. We’ll all have to wait and see what actually happens.
Northwestern Mutual Announces “My Time to Plan” Content Series to Initiate Better Conversations About Money Series highlights the often surprising and deeply personal world of money and finances among professional athletes, with the first two episodes featuring Brice Turang and Sal Frelick of the Milwaukee Brewers™ Series launches during Financial Planning month to shine a light … [Read more…]
If you have Medicare, you know that the Annual Notice of Change (ANOC) you receive every fall describing upcoming changes to your Part D prescription drug plan isn’t usually scintillating reading. But this year’s ANOC might be more action packed than most — there could be big coverage changes in store for 2025.
Here are five Medicare Part D changes coming next year and what you need to know about them to be an informed shopper during open enrollment (Oct. 15 through Dec. 7).
1. Many plans are merging or ending
Medicare Part D plans for millions of members are being discontinued or merging with another plan in 2025 — especially for people with Aetna, AARP/UnitedHealthcare and Mutual of Omaha plans.
For example, if you had a low-cost Aetna SilverScript SmartSaver plan in 2024, you could be automatically moved into SilverScript Choice in 2025. You could see monthly premiums rise by as much as $35 unless you change plans.
It’s even possible to end up with no Part D coverage unless you act during open enrollment. Mutual of Omaha is leaving the market, for example, and its members will need to enroll in a new plan for 2025.
What to do about it: Check your ANOC to see whether Section 1 has a title starting with “Unless You Choose Another Plan.” If so, read the rest of the ANOC carefully to see whether the new plan is a good fit. Consider shopping around for alternatives during open enrollment.
If your Section 1 is titled “Changes to Benefits and Costs for Next Year,” then you’re not being automatically switched to a different plan — but it’s still a good idea to read the rest of your ANOC and confirm that you have the coverage you need.
Medicare will have big changes in 2025. Shop around and Compare Medicare Part D Plans
2. Premiums are all over the place
The average member will pay $40 per month for a stand-alone Medicare Part D plan in 2025, down from $41.63 in 2024, according to September estimates by the Centers for Medicare & Medicaid Services (CMS).
While the average premium isn’t projected to change much, your own costs for Medicare Part D might be significantly different next year.
Monthly premiums for Wellcare’s Medicare Rx Value Plus plan, for example, are going up by nearly $28 in 2025, on average. But the Wellcare Classic plan is about $17 less expensive each month in 2025 than in 2024.
What to do about it: The “Summary of Important Costs for 2025” and “Changes to Benefits and Costs for Next Year” sections of your ANOC show how your plan’s premiums and other costs compare from 2024 to 2025. During open enrollment, shop around to see whether a better deal is available.
3. A new $2,000 out-of-pocket cap
Out-of-pocket costs for Medicare Part D are capped at $2,000 in 2025. That means once you’ve spent a total of $2,000 in 2025 on Part D deductibles, copays and/or coinsurance, you’re done paying out of pocket for the rest of the year.
And you might spend even less if you’re one of the roughly 75% of Part D members with an “enhanced” Part D plan, which could provide extra credit toward the out-of-pocket cap. (When enhanced plans have benefits that reduce your out-of-pocket spending, the value of those benefits can count toward the $2,000 total.) As a result, you might reach the cap before paying $2,000 in out-of-pocket costs, a CMS spokesperson confirmed in an email.
What to do about it: The new cap takes effect even if you stay in the same plan — you don’t need to do anything to get it. You also won’t need to do the math yourself: statements from your plan will show your progress toward the cap.
4. No more “donut hole”
The Medicare Part D “donut hole,” or coverage gap, will go away after 2024. Through 2024, the donut hole is a phase of Part D coverage when you owe up to 25% of the cost of medications rather than your plan’s copays and/or coinsurance.
Starting in 2025, there will no longer be a Medicare Part D coverage gap. You’ll pay your plan’s deductible, copays and/or coinsurance until you reach the new annual cap ($2,000 in 2025), then you’ll owe nothing out of pocket for the remainder of the year.
What to do about it: Nothing — the donut hole is gone for everybody in 2025, even if you stay in the same plan.
5. A payment plan for prescription drugs
The Medicare Prescription Payment Plan is a new, optional way to pay out-of-pocket costs over time rather than all at once. It works like a “buy now, pay later option” for Medicare Part D deductibles, copays and/or coinsurance.
The payment plan is a potential budgeting tool, not something that will save you money. Your total costs remain the same, and plans can’t charge fees or add interest because you participate.
What to do about it: Consider whether the Medicare Prescription Payment Plan would be a good fit for your budget. It might help if you have expensive medications and incur high out-of-pocket costs early in the year, for example.
All 2025 Medicare Part D plans will offer the Medicare Prescription Payment Plan, so there’s no need to change plans to enroll in the program.
Plans will be required to reach out to you if they identify you as someone who’s likely to benefit from the program. You’ll be able to sign up through your insurance company by mail, by phone or online.
Amazon’s Prime Big Deal Days continues today with discounts exclusively for Prime members.
But you don’t have to be on the hunt for every deal, because frankly, who has time? Our Nerds did the research for you by talking to experts and tracking prices on 12 popular products at four major retailers.
Whether you’re shopping for household staples or holiday gifts, consult this Nerdy list of what to buy (and skip) on Prime Big Deal Days.
Best things to buy (or skip) on Prime Big Deal Days
Buy: Past-purchase staples
Don’t let Amazon’s homepage algorithm dictate what you buy. One strategy to cut through clutter: Let your order history lead the way.
Save money by finding deals on the things you already use and know are worth your money. Open your order history and review items you’ve repurchased over the past 30 days, three months or even a year. If you spot a discount on something you need, take advantage and stock up.
Here’s how to “buy again.”
Amazon app: Go to your cart in the mobile app and select the “buy again” tab near the top of the screen.
Desktop: Click on “Returns & Orders” on the top right side of your screen. Then click “Buy Again” to add frequent purchases to your cart.
We’ve seen the “Prime Big Deals” label on trash bags, dog food, dishwasher pods, mouthwash, Clorox cleaner, the Mr. Clean Magic Eraser, vitamins and baby bottles. You can also shop for items that regularly wear out, such as the water filter in your refrigerator or the electric toothbrush heads you’ve been using for too long.
Skip: Lightning deals
Look away from pressure-driven lightning deals that are only available for a limited time or until a certain number of units are sold. These promotions are meant to make you feel panicked and push you toward impulsive purchases.
“Consumers are easily swayed by the deals and promotion messages, and their ‘fear of missing out (FOMO)’ mentality often tricks them into jumping on these flash deals,” Savannah Wei Shi, associate professor of marketing at Santa Clara University, said in an email interview.
Take a breath and know that if you miss the deal, you’re not missing out. The item will probably be discounted in the coming months, which could give you time to realize you don’t even want it anymore.
Buy: Toys
If you need gift ideas for the kids in your life, Andrea Woroch, a personal finance writer and consumer savings expert who has appeared on “Good Morning America” and other TV news shows, recommends looking for deals on crafting kits, dolls and action figures, Lego sets and even video game consoles and gaming bundles.
Woroch warns, however, that not all toy deals will be worth it this early in the holiday shopping season, and suggests going in knowing what you want. How do you know when to add that toy to your cart?
“If you’re getting 30% off, buy it. That’s a good deal,” she says.
Amazon highlighted Lego deals in its Prime Big Deal Days announcement and Target is advertising up to 30% off select sets during its Circle Week sale, which runs all week.
Skip: Small home appliances
You might be better off waiting until Black Friday or Cyber Monday to buy small home appliances. Based on our price tracking data, the Instant Vortex 6-quart 4-in-1 air fryer is on sale for $107.95 today, but if you wait, you could score a bigger deal. The air fryer was $59.49 during Amazon’s Cyber Monday sale last November.
Coffee lovers also might want to hold out for another sale. The Keurig K-Classic single-serve coffee maker we tracked was $109.99 at Amazon during July’s Prime Day Sale and is $139 now. Last year, the price dropped to $76.49 on Cyber Monday, so you’re probably better off waiting. That, or buy it directly from Keurig.com, where it’s $99.99 today.
Buy: Personal electronics
Our advice is nuanced in this category. Discounts on headphones and smart speakers are a given during Amazon’s major sales. The price of the high-end set of Sony headphones we’re tracking is down to $298 at Amazon ($297 at Walmart) — about $100 off list price — which matches the Prime Day in July price.
Many Alexa-enabled devices and Amazon-branded e-readers are also on sale today. Tablets, fitness trackers, streaming sticks, laptops, cameras and TVs are fair game, too. The 65-inch LG C3 TV we’ve been watching dropped to a low of $1,296.99 at Amazon and Walmart for this week’s sales. That’s $300 less than it was on Black Friday 2023.
But the product release cycle impacts gadget prices. For example, if you were hoping to pick up an Apple Watch Series 9 (GPS + Cellular) with a 41mm sport band at a discount after the series 10 was released, you might be out of luck.
With the new version now out, Amazon was only selling a used version of the previous model for $462.56, and it was unavailable at Target in the weeks leading up to Prime Big Deal Days. If you’re not picky about the color or style you purchase, you might be able to score a deal.
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Skip: Fast fashion on Amazon
Fashion can be hit or miss on Amazon, Woroch says. If you hold off on clothing purchases today, you can save your money for when there are more sales from a wider selection of storefronts about a month from now.
“I would wait for Black Friday weekend,” she says.
More stores participate, and you’ll have the chance to get great deals from brands known for better clothes, she says.
Are Prime Big Deal Days the best time to buy?
Not always. Amazon has created two sale holidays — Prime Day in July and Prime Big Deal Days in October — that have forced other retailers to follow suit.
Our data shows some deals are worth a look. Discounts from Amazon and its competitors during Prime Big Deal Days make it the best time to buy five of the 12 products on our list. Prime Day in July delivered the lowest price for four items on our list.
So, for nine out of the 12 items we tracked, Prime Day in July or October brought the lowest prices. Last Black Friday had the lowest price for only one of the items on our list and tied with Cyber Monday for another.
Here’s a tidbit that sums up shopping online in 2024: Prices can be just as good, or better, during non-sale days. That was the case for the aforementioned Sony headphones.
If you were shopping on a random Tuesday (Sept. 24 to be exact), you could have nabbed them for $285 from a third-party seller on Walmart.com, $12 less than today. But good prices during off-sale periods are tough to time. Waiting for the big sale is easier.
Check competitors and your budget
The Prime Big Deal Days sale isn’t the only one happening this week. Amazon is probably the play for Prime members (most deals require a Prime membership), but online shopping makes it easy to compare prices at competitors. Target Circle week (Oct. 6-12) and Walmart’s first Holiday Deals Event (Oct. 8-13) are both happening now, and our research shows prices are competitive.
Like with Amazon, Target’s sale is for Circle members only (free to join), while Walmart’s sale is open to everyone (although paid Walmart+ members get early access to special deals). Don’t overlook Best Buy, especially when it comes to electronics.
If you have a holiday shopping budget, now’s the time to revisit it. If money is tight and shopping would put you into debt or cause bills to go unpaid, skip the sale. There will be plenty of chances to buy things you want or need in the future. Some distance will give you a chance to research, reevaluate and save.
How we tracked prices
NerdWallet tracked online prices on 12 products at four nationwide retailers — Amazon, Target, Walmart and Best Buy — focusing on Black Friday 2023, Cyber Monday 2023, Prime Day 2024 and Prime Big Deal Days 2024. We selected a range of items, including electronics and home goods, that are popular with shoppers year after year.
Some caveats:
Some products have upgrades or a new model introduced in a given year. In these cases, we continued to track the original item and not the newest generation.
Pricing can vary based on color. When possible, the most basic and/or universal color was selected. If this color or model wasn’t available, we tracked another color.
In-store and online prices sometimes vary. We used online prices to reflect the current retail landscape, which is defined by dynamic pricing, and to ensure we got the most up-to-date prices available.
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Achieving your financial goals in life isn’t just about how much you earn; it’s also about your money mindset. Some of our most deeply held beliefs are about money. What does financial success look like to you? Do you think of yourself as a spender or a saver? Do you avoid talking or thinking about money? The answers to these questions all reflect your money mindset. Changing these ideas can be challenging but worth it.
To create a solid financial future, it’s essential to have a strong, positive money mindset. So, if your financial habits need a little (or a lot of) work, here’s how to change your money mindset. Read on to learn:
• What is a money mindset?
• What is a negative money mindset?
• How can I change my money mindset?
• Why is reshaping my money mindset important?
What Is a Money Mindset?
Your money mindset is your approach to handling money. It determines your spending and saving habits as well as your motivations for your financial management.
Whether you are aware of it or not, everyone has a money mindset — a collection of beliefs starting from childhood that shape what you do with your money. (Your money mindset could even be, “I never think or talk about money.”)
Your money mindset can lead to both positive and negative financial decisions.
For example, have you automated your savings, or do you think saving isn’t something you need to or can focus on just yet? Do you use a budget? Can you treat yourself occasionally, or is buying a $5 coffee not a part of your financial plan? Your money mindset characterizes your relationship with money, and so it is essential to understand and possibly tweak it.
What Is a Negative Money Mindset?
A negative money mindset is a set of unhelpful financial beliefs that can lead to poor resource management. It often involves a constant feeling of stress or guilt regarding money or simply disorganization. It may also involve the belief that “if I just made more money, things would change or all my problems would be solved.” While a higher salary or inheritance might help you toward your financial goals, having more money won’t necessarily change your financial mindset.
While it may seem counterintuitive, your income level doesn’t automatically determine your sense of financial freedom. Additionally, it’s worth noting that your money mindset exists whether you’re conscious of how it influences your behavior or not.
Here are some examples of the ways in which a negative money mindset might have a bad influence on your life:
• You might spend too much money due to comparison with others. You see a friend or colleague renting a pricey apartment and think you should too. That can be an aspect of lifestyle creep, in which your spending increases as your income grows, preventing you from saving and acquiring assets.
• You might not save for long-term goals, like a house or retirement, because your parents never wanted to talk about money when you were growing up.
• Because money stresses you out, you might fail to set financial goals, like paying off your student loans on time.
If it feels like you’re in this negative zone when it comes to your finances, know that you are not saddled with it for life. We’ll explore how to develop a money mindset that’s more positive and productive later in this article.
How Your Beliefs on Money Affect Your Finances
Your primary, most powerful beliefs about money most likely come from your parents and your childhood. Children typically absorb financial beliefs from the most influential people in their life. Then, as they grow older and begin handling money, they live out those financial beliefs, for better or worse.
For example, if your parents modeled money as a way to pamper yourself, you may find that you impulse-shop when life becomes challenging. Your money mindset is that spending equals financial self-care.
On the other hand, you may have a reputation among your friends as “cheap” because you grew up in a penny-pinching household that considered luxuries a waste of money. In both cases, your money mindset puts your financial habits into motion.
These examples underscore that children tend to mimic the behaviors of their parents and adopt their money habits in their own adult life. But in some cases, it’s the opposite. Some people will go to great lengths to not be like their parents. For example, if your parents refused to buy anything that wasn’t on sale when you were growing up, you may make a point of never looking at price tags as an adult.
Why Reshaping Your Money Mindset Is Important
It’s crucial to address negative money mindsets. Otherwise, you’ll likely continue to act on the same faulty beliefs, which can keep you from building the balance in your savings account and reaching your financial goals.
Recognizing an unproductive facet of your money mindset gives you the power to change it. By asking yourself questions about how you currently treat your money and how you’d like to change, you can reorient yourself and create a long-term financial plan. In fact, reshaping your money mindset may include setting financial goals for the first time in your life.
By changing your money mindset you can take full control of your finances, break bad spending habits, and reach your goals.
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How to Change Your Money Mindset
While your upbringing and core experiences impact you in significant ways, you have the ability to recast your money mindset or create an all-new one. When reshaping your money mindset, the following tips can help you transform unhelpful financial behaviors into life-changing, literally enriching habits.
Success With Money Is a Possibility
One key to changing your money mindset is to increase your confidence in your abilities. Don’t count yourself out because of your background or financial circumstances — it’s possible to change these patterns.
Whether you’re working up the courage to sit down and make a beginner’s budget, tackle lingering debts, or give yourself permission to make a fun but totally unnecessary purchase, believing it’s possible is crucial for your success. Perhaps saying affirmations will help you, or maybe reading about others who have attained what you are dreaming of will work best. The right technique is a personal decision.
Understanding Why You Feel This Way
Money is emotional for everyone. Feeling anxious, worried, or excited about your money is normal. Our emotions are rooted in beliefs; therefore, you might feel elated or stressed on payday depending on the beliefs you’re associating with your money. You might crave the feeling of going shopping or you might wake up in the middle of the night worried about your car payments.
Delving into how much money you have coming in and going out can help you better manage your funds. If you have a financial plan that allows you to sock money away and also treat yourself a few times a month, getting paid might create feelings of satisfaction or confidence. Hence, your money mindset is creating positive emotions for you. However, if your paycheck reminds you of your mounting bills, it’s probably time to identify where these feelings are coming from. This way, you can start shifting your money mindset to elevate the stress and anxiety.
Additionally, the more you avoid money, the more intimidating it can feel. Even people with plenty of income might run from figuring out their living expenses because it sparks negative emotions.
Avoid Comparing Yourself to Peers or Social Media Standards
Parents aren’t the only ones who influence your money mindset. Peers and mainstream culture send messages about what success looks like or how to best manage your money.
But what others do or think is irrelevant to your money situation. Also, what works for someone else may or may not work for you, especially if you have different goals. Plenty of general financial principles are worth adhering to, but even those aren’t set in stone. For example, a common guide for budgeting is the 50/30/20 rule, which advises dividing up your take home income like so: 50% on necessities, 30% on wants, and 20% for savings and debt repayments beyond minimum. If you live in a high-cost area, however, earmarking 50% of your income for your needs may not be enough, since you may need to put a large portion of your income towards housing. So, you may need to adjust certain “rules” to fit your situation
Overcoming Your Financial Fears
Change can be scary, and so can money, so cut yourself some slack if you’re afraid of changing your money mindset. It can be comfortable to settle back into the familiar, even when it’s not working.
However, overcoming financial anxiety and developing a positive money mindset is possible. Forge ahead at your own pace, and explore your money mindset: What are the things that worry you about money? Where are your biggest fears coming from?
As you unpack that, remind yourself of your motivation to change. Keep your goals at the forefront, and encourage yourself to take a step in that direction. Taking a small but concrete action toward your goals is how to develop resilience, a key characteristic for succeeding in life.
Recommended: Should You Pay Off Student Loans or Invest?
Avoid Dwelling on the Past
As you attempt to change your money mindset, there may be errors from the past sticking in your mind, reinforcing the idea that you are bad at financial management. Dwelling on the past can stop you from creating a different future. The failures, mistakes, and traumas from the past are real — but they don’t have to define you. For example, if you’ve endured a romantic breakup, that doesn’t mean you can’t date again and find love. In the same way, just because you had too much credit debt recently doesn’t mean you can’t get that issue wrangled.
It’s a good idea to jettison this kind of looking-back viewpoint. Instead, try putting your efforts toward what you can change in the present and strive to achieve in the future.
The Takeaway
Your money mindset is the attitude and beliefs that form your relationship with your personal finances, and it drives your financial habits. Since most people pick up unhealthy financial habits along with healthy ones, it’s crucial to recognize the financial beliefs that aren’t serving you. Then you can set about changing your money mindset and shifting your behavior to better achieve your goals.
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FAQ
How do I get rid of a money scarcity mindset?
The belief that you never have and never will have enough money is part of your money mindset. To change that belief, identify where the mindset came from and make a positive change, such as setting a small savings goal and achieving it.
What is a poor money mindset?
A poor money mindset consists of unproductive beliefs about money that lead to negative financial decisions and habits. An unhealthy relationship with money when growing up or having made past financial mistakes can create a poor money mindset.
How is a money mindset formed?
You form your money mindset through the financial beliefs you hold as true. Your childhood, peers, and financial successes and failures help define your money mindset.
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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn what it truly means to work with a certified financial planner (CFP) and how personalized advice can help you set and achieve your financial goals.
What should you know before working with a certified financial planner? What strategies can help you navigate societal pressures and make personal financial choices? Host Sean Pyles talks to Magda Doemeny, a certified financial planner with NerdWallet Advisors, to discuss the power of personalized financial advice and behavioral budgeting to help you understand how to align your financial goals with your personal values. They begin with a discussion of the role of certified financial planners, including the fiduciary responsibility of CFPs, the specialized knowledge they bring to areas like estate planning, and common strategies for cutting through societal noise to focus on personal priorities. They also discuss the innovative concept of behavioral budgeting, which involves creating sustainable financial habits like limiting dining out.
NerdWallet Advisory LLC, dba NerdWallet Advisors, is an SEC-registered investment advisor and wholly owned subsidiary of NerdWallet Inc. The advice provided in this episode of Smart Money was for illustrative purposes only and not intended as financial or investment advice specific to your personal facts or circumstances.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius Nerds. I’m Sean Pyles. This episode, we’re going deep into financial planning, what it actually means to work with a financial planner, how working with a planner can improve your finances and why we sometimes have such a hard time changing our financial behaviors.
Over the last few months, we’ve shared a series of conversations between our listeners, a certified financial planner from the NerdWallet Advisors platform and me. In these conversations, our advisor, Magda Doemeny, has given a range of advice to our listeners. Today, we’re going to hear Magda’s philosophy around financial planning, who might benefit from working with a CFP and how people can better their finances on their own. Magda, welcome back to Smart Money.
Magda Doemeny:
Thanks, Sean.
Sean Pyles:
We’ve talked about this before, but give us that refresher. What is NerdWallet Advisors and what is your role there?
Magda Doemeny:
I’m an advisor on the NerdWallet Advisors team and we offer affordable financial planning memberships, which gives you access to a certified financial planner like myself for a low monthly cost. What we’ll do is we’ll go ahead and take a look at your financial situation and come up with a financial plan and give you some bite-sized action items for you to try and accomplish your goals. That will give you unlimited access to myself or your advisor, and we’ll check in periodically, but ultimately you can access us by scheduling a call or sending us a message at any time.
Sean Pyles:
All right, so let’s start with financial planning 101. What does it mean to be a certified financial planner? What is the financial planning process like? Give our listeners the intel.
Magda Doemeny:
The financial planning process is diverse, just like everyone’s financial situation is diverse. And so ultimately, the high-level process starts with understanding somebody’s current financial picture and their goals. You can have two people who have the exact same financial makeup and different goals and they would have wildly different advice given to them, because there are some people who want to spend the last penny on the day they die. And there are some people who want to accumulate so much wealth, they can pass it on for generations.
And so the advice you might give to somebody would look very different from that perspective. But really, what you’re trying to do is figure out what somebody is trying to accomplish with their money, whether it’s pay down debt, purchase something large like a home or a car, or make sure they can retire at a certain age, and then help them come up with the right ways to accomplish that via savings vehicles or investment vehicles or certain types of accounts that might work better for their situation.
Sean Pyles:
What sort of information do you need to take in from a client before you can really understand what they’re working with financially and how you might be able to help them?
Magda Doemeny:
The most basic part that you want to take in is their current financial picture. Probably pretty straightforward, but all of their assets. So how much money they have today and what types of accounts it’s in, how much money they’re making, if anything, and any debts that they may have, whether it’s credit card or mortgage. We want to get that full picture, but we also want to know their personal situation. We want to know if they’re married, if they have children, if they’re divorced, do they have grandchildren? And then we also want to know again, those goals related to those types of things.
So it’s a pretty robust introductory process when you’re going through this, whether it’s for the first time or just with somebody new because it’s important that we understand your full picture. And the other important aspect of this I find with many people, especially those who maybe have debt, is really understanding what money means to them and how they think about money, because that may impact how we suggest doing certain types of financial planning.
Sean Pyles:
A lot of quantitative hard numbers like what’s your budget look like? Are you saving for retirement? And then the qualitative stuff, what do you feel about money? What do you want from your money?
Magda Doemeny:
Exactly. A perfect example is that for an emergency fund, traditionally on paper we would say if you have a dual-income household, which means there are two people in your household that are earning an income, you only need three months worth of expenses in a high-yield savings account for an emergency. Why? Because the likelihood of both of you losing your job at the exact same time is fairly unlikely. And so that three months of expenses plus the secondary salary should be enough to get you through getting a job again.
However, you can sit down next to somebody who says they’re very anxious about money, they’re worried they’re going to run out of it, and they are just hoarding as much cash as they possibly can. Now while I don’t want them to have that much cash and I might tell them that we should do something with it, I might suggest they have six months worth of expenses because I know that getting three months would just cause too much anxiety and that’s not worth it.
Sean Pyles:
Okay. Now let’s talk a bit about what it means to be a certified financial planner. We talk about CFPs a lot in the personal finance space. I’ve been going through the education process to get my CFP certification, so I know a lot about this, but some people may wonder what’s the big deal? So Magda, what’s the big deal?
Magda Doemeny:
The biggest deal is that we have an obligation as fiduciaries to do right by the client.
Sean Pyles:
Fiduciary, meaning you put their interest first.
Magda Doemeny:
That’s exactly right. So we’re not intended to sell them a product or give them something that isn’t in their best interest. So that’s really important. The secondary is that we’ve gone through the training to understand the intricacies of the financial system.
The value you can find here is you can get a broad, a CFP that has a broad range of information and you can get folks who specialize in certain areas that might be niche. That can be really helpful because you know that that person has spent a good amount of their career deep diving into a specific area like maybe estate planning or something like that.
Sean Pyles:
And CFPs can also connect you with people in the state attorney to help you draft those documents. They’re really your one-stop shop for other things in the financial world, getting your estate plan set up, finding insurance that you need, et cetera.
Magda Doemeny:
Exactly. It’s another thing on the list that’s important to us is telling you what we don’t know. So it’s important that we always say, “This is outside of my scope of work, but happy to point you in the right direction of where you could get that piece of your financial picture taken care of.”
Sean Pyles:
So thinking back over your 10-plus years of being a financial planner, what do you think makes the difference between someone who is able to really benefit from your relationship, what a financial planner brings to their life, and someone who doesn’t really have a successful relationship with a financial planner, you or someone else?
Magda Doemeny:
I do think to start, it’s really important that for better or worse you jive with your financial planner. You need to make sure, kind of like a therapist, that when they’re speaking, you’re listening and they need to know that. This isn’t all about dollars and cents. Like we talked about, part of it is emotional. Money can bring out emotions in people, so you want to make sure that you are able to communicate well with your financial planner. Outside of that, I think the other really important aspect of being successful is making sure that you can commit to the process that is set forth.
A lot of financial planners are creating a plan in some capacity. The plans can look different, some can be long, some can be short and one might work better for you than the other. But when they set forth the plan, the intention is to try to take those actions and then check in regularly, whether it’s every three to six months or so to make sure that the plan can get adjusted, because life happens and things change. You may change jobs or get a pay raise or get married or what have you. And all those things impact how you might think about your finances.
Sean Pyles:
I think people may underestimate the amount of work that they have to do when it comes to working with a financial planner. They might want a planner to do all of these things for them. But I, much like therapy, see the need to actually enact uncomfortable change sometimes to get what you want out of your finances. And that can be hard for people to grapple with. But I do want to talk about some through lines in the conversations that we had with our listeners over the past few weeks. One thing that stood out to me really is how similar financial planning is to therapy.
As a somewhat broad generalization, I’ve noticed two main camps of people who go to therapy. I say as someone who’s been to therapy myself, there are clients who want a therapist just to give them permission to do what they want and justify their emotions and behaviors. And there are maybe also in the other camp clients who want to be directed and given guidance around how to change. I did see that in our conversations with listeners. Some people wanted guidance, others just wanted your stamp of approval. Is that common in financial planning relationships?
Magda Doemeny:
I do think it’s common depending on their situations. The idea of stamp of approval, those tend to be folks who are maybe underspenders and they’re sometimes so knowledgeable about their finances that it’s a hindrance to their personal life. And so they may want you to say, “Hey, loosen up a little bit. It’s okay. You can afford that thing.”
Sean Pyles:
Right. It’s like our conversation with Sean who had over a million dollars in assets and was afraid to really use it to enjoy his life.
Magda Doemeny:
Exactly, exactly. Then there are other folks who come looking for guidance, whether or not they actually, they might actually be looking for you to tell them it’s okay. And the hardest part, but also the most gratifying part of our job is being able to, in this gentlest way possible, tell them that they do have to stop doing that thing or maybe they can’t accomplish the goal the way they thought they wanted to accomplish the goal and we do need to actually change the behaviors. And so whether or not those folks are always open to coming in wanting a stamp of approval and not getting it is one thing.
But I do think making sure that you can take somebody who wants a stamp of approval and change them into somebody who can take action is really empowering and a really fun part of the job. But there are definitely people who come in here in this planning process ready to make a change. They just don’t know what to do. And that’s amazing, because their eyes are open. They’re looking for not the answers, because we’re not going to give you the answers, but looking for the structure to be able to start to make good or different financial decisions.
Sean Pyles:
They’re open to change, which is a huge thing.
Magda Doemeny:
Sean Pyles:
What you were just saying reminds me of our listener, Jim from Milwaukee, who is interested in cashing out his retirement account to move to San Diego. He seemed to want that stamp of approval from you, and you and I were both kind of turned off by the idea about him cashing out his retirement. And so you did have to do a really careful pivot of what his financial goals were and say, “Hey, how can you make some more money where you are now and fund that move in a less risky way?” So that’s an interesting part of financial planning too. It’s about exploring alternative ways to get to where they want to go. Because there are so many options available to people and they may not really even realize that.
Magda Doemeny:
I do think a lot of it is about being creative and meeting them where they are. You do have to recognize maybe where your living situation is could impact their ability to execute on something that we’re suggesting. I might say, “Hey, your rent is too high.” And they may say, “Yep, that’s as cheap as it’s going to get here.” And so you have to find a way to, is there something else we can do to have the same result, which is increase your overall savings.
Sean Pyles:
Another common theme in our conversations was the idea of external pressure that people feel about the things that they quote should be doing with their money. One listener knew that she was spending too much on discretionary purchases, but felt like it was what she should be doing to have a certain lifestyle, even though it was causing trouble for her financially.
And she could fully acknowledge that, which was so fascinating to see. How can people cut through the noise and the shoulds and find out what they really want from their money and make sure that it’s a goal that they personally truly care about, not what other people expect of them?
Magda Doemeny:
It’s hard. I think in the environment that we have today with easy ways to spend your money and seeing easy ways to know how much everyone else has and/or not has, but how they spend their money doesn’t mean they have it, I do think that is a very big challenge for a lot of people. But I think giving yourself the space a couple of times a year, maybe every six months, you could call it new and you can call it over summer. It’s something you can work with a financial planner on to sit down and really ask those questions. What are you trying to accomplish?
Because I’ve noticed when folks come in here, they have these goals, but when you sit down and you ask them, does that thing that you bought or that thing that you said you wanted, is it more important than your retirement? Most of the time, they say no. Right? And so working with somebody to help you put your goals into context can be really helpful.
But I do think it’s hard to do that alone, but you should spend every six months or at least every year thinking about, “Okay, what’s changed in my life? What are the things that I’m trying to accomplish? Do I want to get married now? Has that changed from the year before? Do I want to buy a house?” I have folks all the time say they’ve been wanting to buy a house for years, and all of a sudden they said, “You know what? I don’t want to do that anymore.”
And that’s great. If that’s the decision that you’ve come to, we can adjust your finances to move, shift your money to do something different, travel more expensively now. So I think it’s tough, but-
Sean Pyles:
I think having the dialogue with a financial planner can be really helpful, especially in the beginning because I try to keep a running almost meta-narrative of my financial decisions where I ask myself, why did I do that? Why did I buy whatever? Why did I want to go on this specific trip? Why am I saving so much for retirement when all my friends are like the world’s burning? Why bother? And getting really clear on what it means for me to be making these decisions helps me feel more confident that I’m doing the right thing for myself. But it’s hard to get to that place of having that sort of higher level conversation without some guidance, at least initially.
Magda Doemeny:
Yeah, and I do think it’s really important to not spend too much of your time comparing yourself directly to the people, whether you know them or not, because what you don’t know is what’s behind the curtain. Somebody could be living a very lavish lifestyle and be in debt up to their eyebrows, and you would have no idea. That’s not how it looks, but that could be the reality.
And so I think that’s why it’s so important to talk to somebody about it, because we can pull you out of that world and look at your world and where your income is and where your expenses are, and ask you what lifestyle you truly want to lead and figure out how we can bridge the gap between all of those things.
Sean Pyles:
All right. Well, I want to go a little bit deeper into your personal financial philosophy. From our conversations, I know that you’re really into what you call behavioral budgeting. Can you describe what that is for us?
Magda Doemeny:
Behavioral budgeting is something that’s done in conjunction with exact budgeting or traditional budgeting, as you may have it. Traditional budgeting is putting down all your expenses with the dollar amounts and setting a goal that is dollar-based. You only want to spend $500 a month eating out. That type of budgeting is really important because you do need to know the dollars in and dollars out. But I have found that sometimes if you don’t incorporate behavioral budgeting in addition to that, you tend to fall off after a period of time, because it can be a lot of work to pay attention to every dollar that’s coming in and out every month for the rest of your life. Even just saying that out loud seems daunting.
So instead, I found that behavioral budgeting can help in that you can actually create a behavior in your life that could be more permanent and acts as a budgeting tool. That would be something like you only eat out twice a week. I’m not putting a restriction on the dollar amount that you can purchase when you eat out, but I’m taking somebody whose lifestyle was three or four or who knows, and asking them to check every week that they pick just two days. It’s a short timeline.
It’s usually a lot of the behavioral goals are weekly, so you can do it in your head. You don’t need a tool, you don’t need to write it down. You can say by Sunday or Monday, I did it or I didn’t do it. And it will naturally bring down how much you’re spending, and in theory, can be permanent. You get in the habit in order to execute on dining out only twice a week. It’s not just, “Oh, I can do that.” You actually have to learn how to plan. So every Sunday, you have to figure out what you want to eat for the week.
You have to make your grocery list, you have to go to the store, and maybe you have to do some meal prep, because if you don’t do those things, you will end up eating out more than twice a week. And so eventually, it becomes a habit. Sundays are my, do not bother me from three to five P.M. because I’m executing on my plan for the week.
Sean Pyles:
I think habit is such a key word here. You have to build up the routine of doing certain things in a certain way and being more intentional about it, especially in the beginning.
Magda Doemeny:
Absolutely.
Sean Pyles:
Okay, so Magda, as you know, despite many people’s best efforts, folks can really struggle to change their financial behaviors, like overspending or not setting aside money for retirement. What do you think it really takes to change financial behaviors?
Magda Doemeny:
I do think it does take a level of, I don’t know if discipline is the right word, motivation might be it. It’s not too dissimilar from other types of goals that I think many people can relate to, whether it’s health and nutrition goals. You’re thinking you’re not healthy, so you commit to finally going to the doctor for them to decide what is it? Or you buy a gym membership or you start working with a nutritionist.
All of those are the first steps in the process, but if you’re not able to actually be determined enough to learn and execute on the step-by-step of that process, which is for the gym, you got to come every three days and you got to do these workouts or the doctor’s going to say, “Okay, well, we need you to start eating these types of foods and we need you to adjust this,” and you have to actually execute on that. Your finances are the same thing, right? Coming to a financial planner helps be the person that tells you, here are some of the next steps you need to take.
But you do have to come into it with a mentality that it might not be easy, right? It’s not you’re going to come in here and somebody’s going to say, “Just do these two things. They’re all ten-minute exercises and voila, you’re a millionaire.” It’s not like that. It’s a slowly, but surely, you’re learning more about your finances, you are learning some techniques of things you can do differently, and you’re checking in somewhat regularly to make sure that we’re still on track for those things. And so I do think the fix it quickly is just not the mentality that you can have to be successful.
Sean Pyles:
Yeah. Have realistic expectations about what it means to change.
Magda Doemeny:
Sean Pyles:
And why you’re changing.
Magda Doemeny:
Sean Pyles:
Okay. Well, I want to talk about who might not need to work with a financial planner, because as we know, CFPs typically outside of platforms like NerdWallet Advisors can be quite expensive to work with. So who do you think is fine doing it on their own, maybe working with a financial coach or someone else?
Magda Doemeny:
I do think that it will depend on what they’re looking for. CFPs, in particular, do specialize in looking at very specific aspects of financial planning. And so I do think that folks who might be in very severe debt could benefit from working with a financial coach first. That could be somebody who is helping them just really hone in on their budget and potentially looking at some alternatives to their debt management, like credit counseling or something like that.
But I do think that it’s all, in general, access to a financial planner is usually cost prohibitive, which is what’s so great about NerdWallet Advisors is that it’s a low monthly fee, and so it does give you access to, gives financial planning access to the masses really. And I do think that there are some folks who might want something a little bit more robust on investing their assets and so that, you would want to have an investment manager look at your assets.
Sean Pyles:
Okay. Well, Magda, if you could give one piece of advice, and only one, to our listeners, what would that be?
Magda Doemeny:
I think it would be to give yourself a break from the exhaustion of trying to be perfect as it relates to your finances, but also not to give up on finding a path to success for yourself. Whatever that first step might be, whether that’s reaching out to a financial planner or at minimum, getting your expenses in order so you can really look at it in the mirror and figure out where your spending is, I think you should take that next step.
Sean Pyles:
Give yourself some grace, do the work.
Magda Doemeny:
Sean Pyles:
Great. Well, Magda Doemeny from NerdWallet Advisors, thank you so much for talking with me.
Magda Doemeny:
Thank you.
Sean Pyles:
And that’s all we have for this episode. Remember, listener, that we are here to answer your money questions. So turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-N-E-R-D. You can also email us at [email protected]. Also, visit nerdwallet.com/podcast for more info on this episode. And remember that you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio, to automatically download new episodes.
Here’s our brief disclaimer. I am not a financial or investment advisor. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
This episode was produced by Tess Vigeland and myself. A special thanks to Magda Doemeny, Georgia McIntyre, and Emily Canedo. And a big thank you to NerdWallet’s editors for all their help. And with that said, until next time, turn to the Nerds.
NerdWallet Advisory LLC, dba NerdWallet Advisors, is an SEC-registered investment advisor, and wholly owned subsidiary of NerdWallet, Inc. The advice provided in this episode of Smart Money was for illustrative purposes only and not intended as financial or investment advice specific to your personal facts or circumstances.
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Do you want to learn how to start a travel blog? Starting a travel blog can be a fun journey that combines your love for travel and writing. You have the chance to share your adventures, tips, and personal stories with a wide audience. Starting a blog changed my life. When I began Making Sense…
Do you want to learn how to start a travel blog?
Starting a travel blog can be a fun journey that combines your love for travel and writing. You have the chance to share your adventures, tips, and personal stories with a wide audience.
Starting a blog changed my life. When I began Making Sense of Cents (the blog that you’re reading right now!), I had no idea that sharing my writing would lead to financial freedom and the ability to work from anywhere.
For nearly a decade, I’ve traveled full-time – by RV, sailboat, and plane – and it’s been an incredible way to live. Along the way, I’ve shared my experiences, travel tips, and stories, and it’s allowed me to connect with fellow travelers from all over the world.
Whether you want to turn it into a business, a career, or just a fun hobby, a travel blog lets you connect with other travelers and inspire them to explore new places.
Creating a travel blog doesn’t need to be expensive. With some basic steps, you can set up your blog and start sharing your travel experiences in no time. This guide will help you understand what you need to get started, from choosing a domain name to setting up your website and reaching your first readers.
Quick note: I have a free How To Start A Blog FREE Course you can click here to join. Join over 80,000 people who have already taken the course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
My background with blogging
Over a decade ago, I started my blog, Making Sense of Cents, without much planning. I stumbled upon an article about a blogger and thought it would be fun to share details about my own life. At first, it was just a hobby with no real expectations.
I didn’t even realize you could make money from blogging back then. But around six months in, a blogger friend introduced me to my first advertiser, and I earned $100. That’s when I really started to see the potential.
Since then, my blog has grown far beyond anything I could’ve imagined, and I’ve earned more than $5,000,000 over the years. Blogging completely changed my life, giving me the freedom to work from anywhere.
What kept me going was my genuine love for everything related to blogging but also my love for travel. That passion made it easy to dedicate time and effort to grow the blog into what it is today, because I love running an online business that allows me to travel whenever and wherever I want.
Now, I’m excited to help you start your own blog and find success too.
What is a travel blog?
A travel blog is a website where someone shares their travel experiences, tips, and advice. The person who writes it, called a travel blogger, posts about the places they’ve been, activities they’ve tried, and things they’ve learned.
Many travel bloggers also give recommendations for places to stay, eat, and things to do. It’s a way to inspire and help others plan their own trips.
Travel blogs can focus on topics like budget travel, luxury trips, family vacations, solo adventures, and so much more.
Some examples of topics that a travel blog may cover include:
Destination guides – Detailed information on must-see attractions, hidden gems, and local tips for specific cities, countries, or regions
Travel itineraries – Pre-planned routes for weekend getaways, road trips, or long-term travel, outlining where to go and what to see
Local travel tips – Yes, you don’t need to travel by plane in order to be a travel blogger! You can write articles on things to do in your own town.
Budget travel tips – How to travel affordably, including finding cheap flights, budget accommodations, and saving money on food and activities
Solo travel – Tips and advice for solo travelers, including safety, making friends on the road, and building confidence while traveling alone
Family travel – Tips for traveling with children, including family-friendly destinations, packing lists, and keeping kids entertained (such as listing the top travel toys)
Adventure travel – Guides on activities like hiking, diving, surfing, and more, plus how to plan an adventure-focused trip
Cultural experiences – How to engage with local cultures, learn about traditions, and have authentic travel experiences
Travel gear reviews – Recommendations and reviews for travel gear like backpacks, luggage, cameras, and more
Traveling sustainably – How to reduce your environmental impact while traveling, from eco-friendly accommodations to responsible tourism practices
Travel photography tips – Advice on taking beautiful travel photos, including photography tips, gear recommendations, and photo spots
You can pick one or more of these topics to focus on. When you stick to one or two areas, it does help you become more known as an expert in that field, though.
Recommended reading: What Is A Blog, How Do Blogs Make Money, & More
Who can start a travel blog?
Anyone with a passion for travel can start a travel blog!
You don’t need to be a professional writer or photographer. You also don’t need to be a full-time traveler.
Starting a travel blog is a great way to document your adventures and connect with others. Whether you’re traveling full-time or just on weekends, your travel blog can become a helpful resource for other travelers.
Why should you start a travel blog?
Starting a travel blog has many benefits.
It lets you share your adventures with friends, family, and a worldwide audience.
You can also make money from your blog. If your blog gets popular, you can earn through ads, sponsored posts, or affiliate marketing.
Blogging can help you connect with other travelers. You may meet people who share your interests. This can lead to friendships and collaborations. I have met so many amazing people through my blog, which has been so nice over the years!
Having a travel blog is like having a digital scrapbook because you can look back and remember all of your trips, which I think is absolutely amazing. A travel blog kind of “forces” you to write down your memories and take pictures.
Starting a travel blog can be a fun and rewarding way to combine your love for travel with new skills and opportunities.
How To Start a Travel Blog
Below is how to start a travel blog and make money, step by step!
1. Choose a travel niche
Choosing a niche is the first step in starting a successful travel blog. A niche is a specific topic or focus area for your blog. Picking the right niche helps you stand out and attract readers who are interested in that topic.
Think about what you love most about travel. Do you enjoy food, adventure, or culture? Your niche could be anything from luxury travel to budget trips, or even solo adventures.
Another great idea is to think about who you want to help with your blog. Are you writing for families, couples, or solo travelers?
It’s also smart to see what’s trending. Wildlife travel, romantic getaways, and travel for digital nomads are popular niches right now. Research what’s trending and pick something that excites you.
Once you have your niche, you can create content that matches what your readers are looking for. This way, you make sure your blog is both fun to read and useful.
2. Start a self-hosted WordPress blog
To start a travel blog, you’ll need a blogging platform. WordPress is my favorite choice, and it’s what I use for my blog.
WordPress is where you create and manage your blog posts. It’s like the main hub for your blog. You can log in, write new posts, add pictures or links, and publish them for your readers. It’s a simple tool that makes running your blog easy. Plus, one of the best things about WordPress is that you don’t need to know how to code. It’s user-friendly and has lots of ways to customize your blog.
Here are the steps to start a self-hosted WordPress blog:
Get a web hosting service. A popular choice for new bloggers is Bluehost (you can start your own blog for as low as $1.99 per month).
Install WordPress. Most web hosts have a one-click installation to make it as painless as possible.
You can see my full tutorial for this at How To Start A WordPress Blog On Bluehost. There are step-by-step directions included here if you want more detail and/or want to see screenshots of the exact things you should click on.
Plus, if you use my tutorial, you can get the lowest pricing as well as a free domain name!
3. Pick a travel blog name
Deciding on a travel blog name is a big step. You want it to be fun and easy to remember. It’s also good to make it tell what your blog is about.
Here are some more tips:
Think about what makes your travels special. Are you an adventurer, a foodie, or a luxury traveler? Use that in your name.
Using “.com” is the best choice. It’s what most people type first.
Avoid names that are hard to spell or have numbers in them. Simple is best. You don’t want people to get confused or forget your name.
Before you decide, check if the name is available on social media. You’ll want the same name on Facebook, Pinterest, Twitter, Instagram, and other sites.
Take your time and have fun with it. Your blog name is the first thing people see, so make it catchy and memorable.
Don’t forget, you can get your domain name (your blog name) for free when you sign up for Bluehost! Click here to claim your free domain name.
4. Design your blog layout
With a travel blog, your site design is very important.
Your travel blog’s design and layout are important because readers like to see a clean and easy-to-navigate blog design. It makes it easier for them to find what they are looking for, and this helps to keep them on your site longer.
Plus, we’ve all seen a bad site design in the past, and when that happens, usually you don’t stay reading that blog for very long (right?!).
So, your blog design is important because you want readers to continue reading and to even come back in the future!
There are three options for designing your travel blog:
Creating your blog design yourself (DIY such as with paid or free themes)
Paying a blog designer for a custom site design
Buying a premade blog layout – this is what I recommend bloggers do!
Doing it yourself is usually the cheapest, but it can take a lot of time. Paying for a custom site design is usually fairly expensive.
My favorite option – I’m a big fan of simply buying a premade blog design. They are a lot more affordable than a custom design and look amazing. One premade blog design site that I recommend is Restored 316. Restored 316 is super easy to use and they have a lot of great blog design options, especially for travel blogs.
Please click here if you’d like to go the easy way and get an affordable premade blog design (this is what I recommend).
5. Make important pages for your blog
To make your travel blog successful, start by setting up your main pages. These pages help your readers easily navigate your site.
Your important pages should include:
Homepage – This is the first impression visitors get of your blog. A clear and organized homepage helps readers quickly understand what your blog is about. Clearly state what your blog focuses on, such as destinations, travel tips, or itineraries, and provide links to your main sections.
About page – Share your story here and explain who you are, why you started traveling, and what kind of travel experiences you write about.
Contact page – Make it easy for readers, tourism boards, or brands to reach you by listing your email address.
Privacy Policy page – Outline how you collect and use data, especially if you collect any personal information. For legal templates, you can search for these online or buy a premade privacy policy here.
Disclosure page – If you earn money through affiliate links, sponsored trips, or partnerships, you need to be transparent about it.
6. Start social media accounts for your travel blog
Creating social media accounts can be super helpful for growing your travel blog.
Social media allows you to share your pictures, travel tips, and stories, making it easier for people to find your blog and follow your adventures.
Social media is especially helpful for a travel blog because it allows you to reach a larger audience and engage with readers in real time. Posting pictures and videos of your trips on Instagram or TikTok, for example, can inspire people to visit your blog for more detailed itineraries and travel advice.
The social media platforms you can start include:
Facebook
Pinterest
Instagram
Twitter
TikTok
You don’t have to be active on all of them, but claiming your blog name on each platform is a smart move to keep your brand name consistent. Then, I also recommend adding social media buttons to your blog so that readers can find you on social media from your blog.
7. Create a blog post plan
A blog content plan is a simple way to organize what you’ll write and post on your blog.
It helps you stay on track and reach your goals, like getting more readers or making more sales.
A good content plan includes a list of topics, post titles, when to publish, and the goal of each post (like promoting something or helping your readers).
It can also include keywords, picture ideas, and how you’ll share your posts. It’s basically a guide to keep your blog running smoothly and growing.
Your travel blog content plan doesn’t need to be complicated, though. It can be as simple as a list of trips or destinations you want to write about. How detailed you make it is up to you.
Here are some blog post ideas for a travel blog content plan:
10 Budget Travel Tips for Exploring the World
How To Plan the Perfect Weekend Getaway
How To Travel Abroad for the First Time: A Beginner’s Guide
Top 5 Must-Have Travel Apps You Need
How To Pack Light for a Two-Week Trip
How To Find Cheap Flights and Save Money on Airfare
10 Underrated Travel Destinations You Should Visit
Best Travel Hacks for Families with Kids
Top 5 Beach Destinations for a Relaxing Vacation
How To Travel Full-Time and Make Money on the Road
8. Write your first post
Writing your first post can be exciting and a bit scary. I think pretty much every blogger is a little nervous to share their first blog post – this is completely normal.
Here are some things to think about when writing a blog post:
You can easily start with an introduction. Tell your readers who you are and what your blog is about, and share a bit about why you love to travel.
After the introduction, get into the main content of your post. Share your travel experiences, tips, or plans.
Divide your post into short paragraphs because this makes it easier to read. Use bullet points or numbered lists to break up the text.
I also recommend that you include photos to make your post more appealing. Pictures of your travels can help bring your story to life. It is a travel blog after all, so readers most likely want to see pictures!
Then, I recommend that you end your blog post with a call to action. Ask your readers to leave comments or share your post with their friends.
Remember to proofread your post before publishing.
9. Find ways to make money with your travel blog
You can make money from your travel blog in many ways, such as:
Placing ads on your blog. Companies will pay you to show their banners or links. This can be a good way to earn an income.
Affiliate marketing is another great option. You can recommend travel gear, hotels, or tours and get a commission for every sale made through your links. It’s a win-win for both you and your readers. I have a free ebook to learn more – Affiliate Marketing Tips For Bloggers.
Sponsored posts can bring in extra money too. Brands might pay you to write about their products or services.
Selling digital products like travel guides or ebooks can also be profitable.
You could also sell paid memberships. Members could get access to exclusive content, special travel deals, or even a personal Q&A session with you.
Running webinars or online courses about travel planning can help you earn money. People love learning and are willing to pay for good advice.
Don’t forget about social media. You can get paid for sponsored posts or partnerships on platforms like Instagram and YouTube.
Freelance travel blog writing – There are websites, such as larger travel blogs, that will pay for content as well.
10. How to grow a travel blog
To get readers to your travel blog, you need to promote it.
Here are some ways to get pageviews on your blog:
Share your travel posts and photos on social media platforms like Facebook, Pinterest, and Instagram.
Guest post on other travel blogs. This can introduce you to new readers who are interested in travel.
Email marketing is one of my favorite ways to grow a blog. You can persuade readers to subscribe to your newsletter and send them updates and new travel posts regularly. If you are looking for a way to send newsletters or emails to your readers, I recommend Convertkit.
Use search engine optimization (SEO) techniques to help your blog appear in search results when people look for travel tips or destinations.
Create helpful video content: Many travelers love visual content, so creating travel vlogs or short clips on YouTube, Instagram, or TikTok can bring traffic to your blog.
Create downloadable resources. Useful resources like packing checklists, travel itineraries, or budget travel guides can get more readers to your blog.
My favorite guide that teaches many different strategies to grow your pageviews is 21 Strategies I Used to Increase My Monthly Page Views from 17k to 400k+ in 10 Months. If you are a new blogger, check out this resource! The author went from 17,000 monthly pageviews to 400,000 and shares all of her best tips in this guide.
Frequently Asked Questions
Starting a travel blog can be exciting and rewarding. Many people are curious about how to get started, the costs involved, and if it’s possible to make money. Here are some common questions about making money with travel blogging.
Do travel bloggers make money?
Yes, travel bloggers can make money. Many travel bloggers earn income through advertisements, affiliate marketing, sponsored posts, and selling products or services. Of course, not every travel blogger makes money, but some do.
How much does it cost to start a travel blog?
Starting a travel blog can be affordable. Here are some common expenses:
Domain name: About $10 to $15 per year
Web hosting: Around $3 to $10 per month
Initial costs can range from $50 to a few hundred dollars. You’ll spend more if you get a custom design or pay for freelance writers, though, of course.
Is travel blogging easy?
Travel blogging can be exciting but takes a lot of hard work when it comes to writing, photography, and social media. It involves:
Creating regular, high-quality posts
Promoting content on social media
Engaging with readers and other bloggers
It requires passion and dedication, but many find it rewarding.
What are the disadvantages of being a travel blogger?
While travel blogging has perks, there are challenges too, such as inconsistent income (earnings can vary month to month); it can be time-consuming (creating content and maintaining a blog takes a lot of time); it can lead to travel stress (constant travel can be exhausting); and privacy concerns (sharing personal experiences can sometimes feel invasive).
Who are the most popular travel bloggers?
Many successful travel bloggers have become well-known. Some of these include Nomadic Matt, Anna Everywhere, The Blonde Abroad, Expert Vagabond, Adventurous Kate, The Points Guy, Y Travel Blog, and Jessie on a Journey. There are many more travel bloggers, and then there are also travel Instagrammers, travel YouTubers, and more!
How To Start a Travel Blog – Summary
I hope you enjoyed this article on how to start a travel blog and make money.
I’ve been running this blog that you’re reading for quite some time now, and it’s one of the best decisions that I’ve ever made.
If you are thinking about starting a blog, I highly recommend trying it out! It can be done relatively affordably and all from home, so I think it’s worth the try.
Starting a travel blog is a fun way to share your adventures and connect with fellow travelers around the world. When I first began blogging, I had no idea it would lead to me being able to earn a full-time income and allow me to travel full-time. Whether you’re looking to turn it into a career or just want to share your travel tips and stories, creating a travel blog can open up new opportunities to explore the world and inspire others to do the same.
Reminder: I have a free How To Start A Blog FREE Course you can click here to join. Join over 80,000 people who have already taken the course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
If you are like many people, you may have asked yourself at some point in life, “Will I be rich one day?” No one knows for sure what the future holds, but there are a few things you can do to increase your chances of becoming a millionaire.
One of the best ways to amass wealth is to invest in assets that will appreciate over time. But while that sounds good, finding a starting point can be challenging for some. For example, you can start your own business or work hard to climb the corporate ladder, but which is the better option? And you’ll want to invest the money you earn. But where?
Whatever you do, it’s smart to remember that it’s okay to take risks and make mistakes; learning from your experiences is a critical component of success. Above all, remember that wealth accumulation is a marathon, not a sprint. It takes patience, commitment, and perseverance to achieve financial security.
Table of Contents
Key Points
• Early financial success, such as earning money from a young age, can set the stage for future wealth.
• Taking decisive action and managing finances proactively are common traits among those accumulating wealth.
• Outspokenness and a unique personal style often distinguish wealthy individuals in social settings.
• A strong sense of urgency and goal-oriented behavior are typical among successful wealth builders.
• Distinguishing between needs and wants is crucial for effective financial management and wealth accumulation.
What Is a Sign of Wealth?
Often, specific aspects of one’s physical appearance such as luxury cars and designer clothes are taken as a sign of being rich or wealthy. Unfortunately, these signs aren’t always reliable. For example, some people may live in an extravagant home, giving off the appearance of wealth, but it may simply mean that they can access money — perhaps through credit, savings, or even family.
Real signs of wealth are often more attitudinal, and many can be cultivated through patience and practice. Here are a few people who were early millionaires due, in large part, to their drive and focus.
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Examples of Millionaires Under 30
With the advent of the tech industry, smart investments, business ventures, or inheritances — i.e., the great wealth transfer — millionaires under 30 are becoming increasingly common. Here are three examples of millionaires who earned their fortunes before turning 30.
Mark Zuckerberg: Zuckerberg created Facebook at age 19 while attending Harvard University. The idea was to match photos with the names of other students. And in just a few short years, Zuckerberg became a self-made millionaire at age 22.
Sergey Brin: Brin is a Russian American computer scientist who, at the age of 25, co-founded Google, Inc., and became a millionaire. Google is one of the world’s most valuable companies, and today, Brin’s net worth is estimated to be upwards of $120 billion.
Alexandr Wang: Wang founded Scale AI in 2016 as a way to analyze data far faster than any human could. Today, Scale AI’s technology has been used by the U.S. Airforce and U.S. Army, as well as 300+ companies. Today, Wang’s net worth is estimated to be over $2 billion, and at age 27, he’s among the youngest self-made billionaires.
Recommended: Does Net Worth Include Home Equity?
9 Signs of Wealth to Look Out For
In the U.S. 1% of earners take home nearly 30% of the country’s income, so it’s essential to know what signs to look for when trying to identify if someone is wealthy. While there’s no one-size-fits-all definition of wealth, some cues can give you a good idea of whether you or someone you know is doing well financially. (And a net worth calculator can help you tally up your own assets.)
Here are six signs of wealth to look out for that indicate you’re on track to becoming wealthy:
1. You’re an Overachiever
It’s hard to be modest when you’re an overachiever. You know you’re good at your work and are not afraid to let everyone know. Overachievers work hard and try harder. While this may make some people uncomfortable, it comes naturally to you.
2. You Started Making Money At a Young Age
It is not uncommon to see young adults with successful careers in today’s society. While some people played with toys as a child, others learned how to make money. For example, it could mean that you had a paper route or a babysitting business.
Making money at a young age, or any age for that matter, is not always easy. But an early start in earning, tracking your money, and investing can put you on an accelerated schedule when it comes to building your wealth and becoming a millionaire.
3. You Take Action
There will be times when things happen that are out of your control. You may feel stuck and as if you have no way to change your circumstances. However, these are the times when you must take action to create the life you want to live. For example, it might mean organizing your finances to get what you want. And, sometimes you’ll have to take some risks and go for it. It can be scary, but it’s worth it to achieve your goals.
When faced with a difficult situation, it’s essential to remember that you always have a choice. You can choose to give up, or you can choose to fight for what you want. Only by taking action can you make progress and take a step towards achieving financial wellness. So don’t be afraid to step up and take on whatever life throws your way — you can do it!
4. You Are Outspoken
In a society where people get judged by how much money they have, it is no surprise that many go out of their way to keep up appearances. And while some may try to blend in with the wealthy crowd, a wealthy person will often stand out with his unique style or outgoing sense of humor. Wealthy people tend to feel less inhibited and are more likely to speak their minds. They may also be less concerned with the rules and more likely to take risks.
5. You Possess a Sense of Urgency
When it comes to the wealthy, there are a few telltale signs that set them apart. One of these is their sense of urgency — they don’t like wasting time and are always moving forward. This urgency allows them to set financial goals, achieve them, and maintain their wealth. It’s also one of the reasons why they may seem constantly stressed out — they’re always trying to do more.
6. You’re Focused More on Saving Than Earning
It doesn’t matter if you earn $50,000 or $250,000 a year. Unless you consistently spend less than you make, you’ll never get ahead financially. People who focus on their budget and saving their disposable income understand how to live within their means and focus on what’s most important: saving money for the future.
7. You Know the Difference Between Needs and Wants
In our materialistic society, getting caught up in the “must-have” mentality is easy. Advertisements are everywhere, and social media posts tell us we need the next latest and greatest products. It can be challenging to discern between the things we need and want.
A sign of a wealthy person is their ability to distinguish between the two. They know which items are essential for their well-being and those which would be nice to have. Advertising or peer pressure doesn’t work on rich people, and their possessions don’t rule them.
Recommended: Should I Sell My House Now or Wait?
Spiritual Signs You Will Be Rich
Are there spiritual signs that you can be a wealthy person? Some people believe steadfastly in spiritual and other signs of wealth and luck. Here are a couple of examples:
Gravitating to the Lucky Number, 8
In Chinese culture, the number 8 is considered a lucky number. Individuals who gravitate toward this number may believe it will bring them good fortune. Some people might even go as far as to change their phone number or social media handle to include the digit 8.
A Psychic Confirms Wealth is Coming
Some people consult psychics to get guidance on anything from love to health and even money. While many psychics will say they can tune into your energy and give you specific information about your future, and many people believe their predictions, you may be better off putting the money you’d pay the psychic into savings.
Pros and Cons of Having Signs of Wealth
There are very few times when it can be helpful to show off your wealth to others. Indeed, showing off can make others feel intimidated. Additionally, it can attract unwanted attention from criminals or others who want to take what you have. And having too many signs of wealth can make you a target for scams or other fraudulent schemes.
The Takeaway
If you identify with any of these habits you’re likely well on your way to building a significant amount of wealth. However, it is essential to remember that wealth accumulation is not a one-time event; it’s a way of life. It’s something you’ll need to make a habit of, if you want to succeed. For many people who work hard, stay focused, and are disciplined, it is possible.
And as you’re building your wealth, tracking your income and expenses is one of the primary ways to manage your money. SoFi’s money tracker app can help you keep track of your funds so you can make the best spending decisions and start building your very own fortune today.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
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FAQ
At what point is someone considered wealthy?
There is no magic dollar amount that indicates someone is wealthy and one person’s definition may not be the same as another’s. But in 2022, the top 1% of earners took home an average of $785,968, according to the Economic Policy Institute. Of course the amount you earn is only part of the wealth story. How much of your income (or inherited wealth) you retain is affected by your spending habits.
What are invisible signs of wealth?
People who are stealthily wealthy still might have a “tell” that gives them away. Use of private banking or wealth management services would be one example. Another might be not working but being able to maintain an expensive hobby such as riding horses or boating. Buying bespoke products, whether tailor-made clothing or custom-designed furniture, is another subtle giveaway.
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