Purchase mortgage rates increased for the second consecutive week but at a slower pace as the market chewed on the latest U.S. inflation data, the expectation of a tightening Federal Reserve’s monetary policy, and its economic impacts.
After jumping 20 basis points last week to 5.50%, purchase mortgage rates increased this week to 5.54%, according to the latest PMMS survey from Freddie Mac. The index compile rates reported by lenders during the past three days.
“The housing market remains sluggish as mortgage rates inch up for a second consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably.”
Mortgage rates tend to align with the 10-year U.S Treasury yield, which increased 13 basis points in one week to 3.15% Wednesday. The federal funds rate doesn’t directly dictate mortgage rates, but it does steer market activity to create higher rates and reduce demand.
The 10-year benchmark reflects that, in June, the consumer price index rose 9.1% on a year-over-year basis, far above Wall Street’s estimate of 8.8% and the fastest pace since November 1981.
Wall Street observers believe the Federal Reserve will increase rates by 75 or 100 basis points later this month to reduce inflation, generating concerns that a recession is just around the bend.
How auction buyer data foreshadows housing market shifts
The retail housing market data, released by Redfin at the end of June, shows the median asking price for newly listed homes for sale in the four weeks ending June 26 dropped 1.5% from an all-time high in the previous month even while a record share of all homes for sale saw price drops.
Presented by: Auction.com
Weakening economic outlook, high inflation and affordability challenges have taken a toll on buyer demand.
According to the Mortgage Bankers Association (MBA), the market composite index, a measure of mortgage loan application volume, declined 6.3% for the week ending July 15. The refinance index dipped 4% from the previous week, and the purchase index decreased 7%.
On HousingWire’s Mortgage Rates Center, Black Knight’s pricing engine Optimal Blue had 30-year conforming rates at 5.789% on Wednesday, slightly up to 5.782% the previous week.
Meanwhile, the 30-year fixed-rate jumbo was at 5.245% Wednesday, down from 5.322% the previous week. The Optimal Blue index includes some refinancing data — but excludes cash-out refis to avoid skewing averages.
According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 4.75% with an average of 0.8 point, up from last week’s 4.67%. The 15-year fixed-rate mortgage averaged 2.12% a year ago.
The 5-year ARM averaged 4.31% this week, down from 4.35% the previous week. The product averaged 2.49% a year ago.
Man, this card looks amazing! 4x cash back, $100 in annual hotel credit, and…
Oh, wait – there’s a $95 annual fee.
Bummer.
Well, hang on – maybe it’s still worth it? How can you tell? Will the perks and benefits justify the fee? Or is a no-fee card always the way to go?
To find out, let’s investigate paid rewards cards – why some cost $95 and others cost $695 (yeah…I know) – what you get for your money, and how much you really need to spend for a paid card to make sense.
What’s Ahead:
What are annual fee credit cards?
Source: fizkes/Shutterstock.com
As the name implies, annual fee credit cards are rewards cards that typically cost anywhere from $50 to $695 a year to use.
Why do credit card issuers charge annual fees for some cards and not others?
Credit card issuers typically charge an annual fee to help cover the costs of the perks included with the card. Despite the gobs of money these banks and card issuers make, even they can’t afford to offer every single cardholder free lounge access and $300 in travel credit each year.
Annual fee credit cards usually include some combination of the following over no-fee cards:
Higher cash back.
Higher redemption bonuses (e.g. points are worth 1.5x when redeemed for travel).
Better welcome bonuses ($500 versus $200).
Statement credits (e.g. $300 annual hotel credit).
Perks and bonuses (VIP lounge access, 24/7 travel concierge, etc.).
Why are some fees so low ($35-$95) while others are insanely high ($695)?
A $500 card will typically include more statement credits than a $100 card.
Let’s look at two, seemingly identical travel cards:
The Chase Sapphire Preferred® Card costs $95 a year, offers 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®., up to 5x points back on travel-related expenses, and more.
The Chase Sapphire Reserve® Card costs an eye-watering $550 per year, offers a 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®., and up to 10x points back on travel-related expenses, and more.
Sure, the fancy-schmancy Chase Sapphire Reserve® Card has more cash back (10x) and a higher redemption bonus within Chase Ultimate Rewards® (1.5x vs. 1.25x) than its sibling, but neither of those justifies a $455 price difference.
That is, until you consider the former’s annual cash bonuses. The Chase Sapphire Reserve® Card includes the following credits:
$300 Annual Travel Credit.
$100 Global Entry or TSA PreCheck® Fee Credit (every four years).
So even though the Chase Sapphire Reserve® Card costs more than a new mountain bike, it starts to make a little more sense if you plan to use all of the included credits. $550 – $300 – $100 = $150, which is just $55 more than the Chase Sapphire Preferred® Card.
In short, most cards with fees over $100 should come with ample bonus credits to offset the fees.
Can you ever get an annual fee waived?
It may surprise you to hear that yes, even credit card annual fees are negotiable. You may not always negotiate successfully, but you can always try.
Here are some tips for getting your card’s annual fee waived.
Negotiate with your existing card company
If you already have a no-fee card and are considering upgrading to one of your card issuer’s paid annual cards, ring them up and just ask nicely. They may be willing to waive your annual fee for the first year.
Ask them to price-match with another card
Let’s say the annual fee credit card you really want costs $295 for the year, and you notice that it offers similar benefits to a competing no-fee or low-fee card. Call the card issuer and ask if they’d be willing to price match with the lower fee card – or better yet, waive the fee entirely.
Chat with the retention department
If you already have an annual fee credit card and are trying to get your fee waived or reduced, and the agent on the phone isn’t playing ball, you can always ask to just cancel the card.
At that point, one of two things will happen:
You’ll be routed to the retention department, which is much more likely to bend to your requests.
The agent on the phone will proceed to cancel your card.
If you don’t want to cancel your card, you may then have to suffer a moment of awkwardness when you tell the agent “actually, NVM” – so keep that in mind if you don’t like having your bluffs called!
When is it maybe worth paying a credit card annual fee?
Source: Victor Josan/Shutterstock.com
You’ll earn more cash back than with a no-fee card – accounting for your annual fee
Let’s say you’re considering a card that charges a $95 annual fee but offers 3x cash back.
Your first inclination may be to calculate how much you need to spend to offset your fee with cash back. So that’s:
$95 / 0.03 = $3,167
You easily spend that much in a year, so it seems like a good deal.
But hang on – remember, you’re not just trying to offset your fee – you’re trying to earn more than you would with a no-fee card.
By the time you’ve spent $3,167 with a no-fee card with 1.5x cash back, you’ve already earned:
$3,167 x 0.015 = $47.50
Not until you spend twice that – $6,333 – does the annual fee credit card “catch up” to the no-fee card and start earning you more.
In short, keep in mind that once your cash back covers your fee, you still have a lot more spending ahead of you to catch up to a garden variety 1.5x card.
The card offers a steep welcome bonus to cover its fees
Thankfully, many annual fee credit cards have big, juicy welcome bonuses to cover their annual fees – oftentimes for several years over.
Take, for example, the American Express® Gold Card. Sure, it charges a $250 credit card fee – but it also has a welcome bonus of 60,000 Membership Rewards® Points worth between 0.6 and 2 cents a pop when applied to travel through certain partners.
You’ll get a statement credit for things you’re already paying for
The first time I saw the credit card fee for The Platinum Card® by Amex, I could hardly believe it. $695 a year? Who’s falling for this?
But then, the little Amex fairy told me to keep reading, and amazingly, The Platinum Card® started to make sense.
In addition to up to a 100k welcome bonus and up to 10x Membership Rewards® Points on select purchases, The Platinum Card® offers:
$200 Hotel Credit.
$200 Airline Fee Credit.
$200 Uber Cash.
$240 Digital Entertainment Credit.
$100 Global Entry or $85 TSA PreCheck®.
And more.
Before talking points and perks, the statement credits alone account for $940 worth of bonus cash back.
If you’re already spending $940 within those areas, then The Platinum Card®’s $695 annual fee doesn’t just make sense – it’s a discount.
The card has perks and bonuses that make your life easier
In most cases, a credit card’s perks alone probably aren’t worth paying an annual fee – but if you’re seeking a tiebreaker between a fee card and a no-fee card, they may just tip the scales.
Annual fee credit card perks often include:
Travel insurance.
Lounge access.
24/7 travel concierge assistance.
And more.
For example, among other things, the Delta SkyMiles Gold American Express Card always gives you Main Cabin 1 Priority Boarding, so you can stash your stuff and just relax sooner on every flight. That perk alone may not be worth $250 a year, but anything that lowers your stress is worth something!
When is it not worth paying a credit card annual fee?
You won’t earn enough cash back to cover the fee
Remember, most no-fee cards these days offer 1.5x cash back. The Citi® Double Cash Card actually offers 2x cash back (plus a host of other benefits).
For that reason, it’s becoming harder for annual fee credit cards to compete with their pro bono brethren. The annual fee card likely won’t justify itself on cash back rewards points alone, unless you spend a lot.
You’ll need to also consider the perks and bonuses attached.
The perks and bonuses aren’t worth the annual fee
The Luxury Card™ Mastercard® Black Card™ is a textbook example of a paid card that just isn’t worth anywhere near its annual fee. Its chief bonus – a $100 airline credit – doesn’t come close to covering the outrageous $495 sticker price.
Keep in mind, too, that the perks, bonuses, and statement credit provided by an annual fee rewards card are only worth cash if you use them. I myself have forgotten to use my statement credit in the past, which is just leaving money on the table.
Your credit score isn’t high enough
This one’s simple – if your credit score is below 690, you may not even qualify for an annual fee rewards card in the first place.
But wait a second – if you’re trying to pay for a credit card, why would the credit card company stop you from giving them money?
Annual fee rewards cards are designed to attract big spenders – specifically, big spenders who have a track record of paying their bills on time. That’s why credit card companies require a higher credit score for paid cards – around 690, compared to 660 for a regular, no-fee rewards card (though numbers vary by card issuer).
If you’d like to learn more about your credit score, check out How Credit Works: Understand The Credit History Reporting System. And if you’re trying to bump your numbers so you can successfully apply for a fancy paid card, we can help you there, too – check out How To Improve Your Credit Score, Step By Step.
You need 0% APR on purchases or balance transfers
You should know that annual fee rewards cards rarely, if ever, offer 0% APR incentives.
Again, that’s because these cards are designed to attract big spenders – not big savers or debt consolidators. In fact, most annual fee credit cards hammer you with the industry’s maximum APR right out the gate – usually around 29.99% – meaning there’s zero forgiveness for missing a payment.
If you think you might need some help with old debt, new debt, or simply may miss a payment in the next year or so, you should absolutely stay away from a paid rewards card. Instead, consider our list of the Best 0% APR Credit Cards and Best Balance Transfer Cards.
The card fits the lifestyle you want – not the one you have
Don’t make the same goober mistake I did!
From 2013 to 2015 I had a certain travel rewards card for work that commanded a $95 annual fee. And boy, was it worth it – my company required us to put all travel and dining charges on our own card (to be reimbursed later), so I was racking up the points.
Then, when I left my job in 2015… I decided to keep my card a little longer, assuming I’d keep traveling.
Instead, I settled in, wrote my book, and forgot to cancel my card. Basically, $95 down the drain.
Once I realized my mistake, I learned a valuable lesson in money management:
Pick the credit card that fits the lifestyle you have – not the one you think you’ll have.
Questions to ask yourself before paying a credit card’s annual fee
Source: alexialex/Shutterstock.com
To consolidate the two previous sections, here’s a “gut check” questionnaire to see if a paid card is right for you:
Is my credit score high enough to apply for this card? Or do I need to bump my numbers?
Do I need 0% APR on purchases or a balance transfer? If so, a paid card typically doesn’t offer these and isn’t a fit – I should check out the top-ranked 0% APR cards for new purchases or balance transfers instead.
Why am I considering this card? Does it fit my existing spending habits? Or will it encourage me to spend more when I should be saving?
Will the welcome bonus offset its annual fee? Are the points worth a penny each, or less? And will I spend enough to trigger the welcome bonus in time (e.g. $4,000 in 3 months)?
Is it really better than a no-fee card?Now that no-fee cards offer up to 2% cash back on all purchases, is this paid card really worth it?
What is the combined statement credit worth?And will I even use it?
Will I really use this card for longer than a year?Or should I set a calendar note in 11 months to cancel it before paying the fee again?
When in doubt, stick with a no-fee rewards card. Like Mazdas and Toyotas, they truly are catching up to their “luxury” counterparts in terms of value and benefits for way less money.
For a list of the top-ranked no-fee rewards cards, check out Best No Annual Fee Credit Cards – Don’t Pay A Dime To Get Another Credit Card.
Tips for getting the most out of your no-fee card
They say that before you spend $35,000 on a shiny new car, you should spend $35 washing and waxing your old car first. Oftentimes, a good spit-shine is all you need to appreciate the car you already have.
Similarly, if you’re considering upgrading from a no-fee card to a paid card, try spending a little time with your no-fee card first.
Maximize your cash back rewards – Does your card offer rotating 5x cash back rewards categories like the Chase Freedom Flex℠? If so, be sure to both activate and maximize those rewards.
See what hidden perks your card has – Even no-fee cards offer a surprising amount of perks these days. Capital One VentureOne Rewards, for example, offers a free Auto Rental Collision Damage Waiver, free Travel Accident Insurance, automatic Extended Warranty Protection, and even lounge access – all for $0.
Consider another no-fee card first –If you still feel that your no-fee card isn’t meeting all of your needs or maximizing your cash back, consider another no-fee card before you invest in a paid card. As illustrated above, the Capital One VentureOne Rewards Credit Card is an excellent travel card with no fee that you can use specifically for booking flights and hotels without worrying about covering your annual fee.
Summary
So, should you pay for a rewards credit card?
Probably not. No-fee cards are just so generous with cash back and perks these days that most paid cards just aren’t worth it unless you’re spending gobs of money.
But if that’s you, do the math – calculate how much you’ll spend on a no-fee card and its equivalent paid card, and determine how much money you’ll save and cash back you’ll earn. If a paid card truly pays you back in spades, it might be worth it.
But for most of us, a no-fee rewards card will make us plenty happy.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
With the grand coronation of King Charles III (finally) taking place in Britain over the weekend, our thoughts turned to royal accommodations—specifically castles, with their turrets, tapestries, and stone fireplaces.
You don’t need to live in Europe to enjoy these old-world luxuries. Here in the good ol’ USA, there are plenty of dwellings that are royally inspired.
And you don’t even have to pay a king’s ransom to live in one. We found five for your viewing pleasure, all priced below $950,000.
So between viewing the royal pomp and circumstance in jolly old England, you might want to take a few minutes to browse the regal residences available in the United States.
Price: $780,000 Spanish style: The Brits aren’t the only ones with castles. There was castle-dwelling aristocracy throughout Europe, and here’s an example of a modern one inspired by the castles of Spain. Set on 5 acres, this 2010-built home has views of Pinos Altos and Silver City.
With three bedrooms and two baths in 3,234 square feet of living space, this castillo (Spanish for “castle”) features a fireplace big enough to roast game, should you be so inclined, and a hobby room that could serve as a chapel, the listing notes.
The rest of the house is distinctly modern, with tiled floors and a kitchen with stainless-steel appliances and a large island.
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Price: $525,000 Gothic gem: A combination castle and chalet, this stone dwelling must have been built by an artist with a regal sensibility. Known as Owl Studio, the property consists of two separate structures, both eco-friendly and constructed from wood and stone.
Their gothic architecture features pointed arches on the doors and windows. The two-story tower offers 360-degree views, a half-bath, and rough-ins for a shower and a kitchen. It will need to be finished and furnished.
The chalet structure has a dramatic stone fireplace and a cozy sleeping loft. Together the unique dwellings could be developed into a short-term rental, an art or podcast studio, or a wellness retreat and yoga studio.
There’s plenty of room for more structures on the 6-acre lot high in the mountains, not far from Fort Collins.
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Price: $899,900 Castle by the lake: This landmark residence was built in 2007 on the shores of Lake Mary Jane and comes with a private pier.
The 3,027-square-foot home with four bedrooms and 3.5 baths was bestowed two titles: Knightsbridge Manor and the Castle in the Pines. It features wood-clad barrel ceilings, a stone staircase, and a solid walnut front door with iron hardware.
The lot measures a third of an acre and features a fire pit and a newly built chicken coop. (Egg-laying chickens are included in the sale.) This castle is said to be the jewel of the amenity-filled, lakefront community known as the Isle of Pines.
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Price: $695,000 Oh my, Ohio! This castle-inspired Victorian was built in 1898 in this quaint town about 77 miles southwest of Toledo.
With six bedrooms and three baths in 4,316 square feet of living space, the stately home near the center of town is just brimming with possibilities. It could be used as a family home, an events venue, or a charming bed-and-breakfast. The formal dining room, exquisitely outfitted kitchen, and the parlors with fireplaces lend themselves well to any of these options.
We’re particularly enamored with the carved-wood detailing, the picturesque reading nook, and the handy butler’s pantry.
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Price: $935,000 Contemporary castle: Located in Walled Lake, this 2004-built manor boasts water views from many of its rooms.
The grounds span two parcels with a pond and fountain in back. The upscale home has four bedrooms and four baths in 2,241 square feet of living space. A grand spiral staircase connects its three levels.
The open floor plan includes a spacious kitchen with a large island and breakfast nook and a finished basement with a bar and a powder room.
The property is close to hiking and biking paths, as well as boating facilities and accommodations for the royal barge.
My wife and happy where we’re living, but we’ve always said that if we found the right house at the right price, we might consider moving. As such we’re always on the lookout for our “dream house”. What things would our dream house have? For one we’d like to have a large fenced in yard where our son and our dog can both play – without us worrying about them getting run over or going AWOL. We’d also like a home with a dedicated home office on the main level, along with at least 3 bedrooms on the upper level – as we’re planning on having more kids some day.
When we get one of our local newspapers, we always browse the local real estate section to see if there are any amazing deals on either homes, or on good lots to build a home. (My in-laws are home builders, and could build us a home if we asked). As time goes on it seems like there are more and more good deals to be found as more homes get foreclosed on, and prices in our area get depressed a bit.
While it’s tough to try and predict a bottom to the market so as to get the best deal, we’re feeling like it’s possible that we could end up moving within the next couple of years. Because of that I’m starting to look around again at mortgage companies, and trying to find somewhere where we can find not only a good rate, but a company you can rely on for good customer service. Today I want to look at one company that has been popping up on my radar lately, CapWest Mortgage.
CapWest Mortgage Background
CapWest Mortgage is a subsidiary of Farmers Bank & Trust, N.A., of Great Bend, Kansas. Farmers Bank & Trust was founded in 1907 as a small local bank in a central Kansas town, lending mainly to farmers in the area. It has grown to having a presence in major metropolitan areas in the Midwest, and now across the U.S. via the Internet. From their site:
CapWest philosophies are paralleled with that of its parent, Farmers Bank & Trust, N.A., of Great Bend, Kansas; quality, honesty, integrity and ethics. A progressive national banking organization, Farmers Bank & Trust has strengthened customer confidence for over 97 years.
Since 1971, this family owned community bank has grown in assets from $4 million to more than $520 Million and maintains branch banking locations throughout the Central Kansas Region.
CapWest Mortgage is committed to offering financial solutions that help our clients manage their money and meet their financial goals. Through innovative thinking, strategic planning, professional dedication, and our unique expertise and experience as lenders, CapWest Mortgage seeks to earn the trust and exceed the expectations of every one of its clients. Our values arise from our heritage as a family-owned lender from the heartland with a century of tradition. Our values are made strong and secure by our status as a nationally-chartered bank with over a half a billion dollars in assets. CapWest Mortgage is real people helping real people, building business relationships that last a lifetime.
They’ve been around for quite some time, although it seems that they’ve only been expanding their reach via the internet in the last decade.
Good Customer Service
While it’s good to see a bank that has a solid financial history, it’s also important to find one with good customer focused service. To check up on CapWest I went over to the Better Business Bureau’s website and found that while CapWest did have some complaints, most of them were in fact resolved.
Based on BBB files, CapWest Mortgage has a BBB Rating of A+ on a scale from A+ to F.
CapWest Mortgage Rates
I wanted to try and figure out what some hypothetical rates I could expect to see if I were to use CapWest Mortgage, so I ran my potential situation through their rate calculator.
I ran it through as a $250,000 mortgage on a home purchase price of $300,000 for my city here in Shakopee, MN.
Their rates were either in line with or lower than other quotes that I ran today through my mortgage rates page.
These hypothetical rates are up to date as of March 2011, but to get a more up to date rate, please head on over to their site to get your own easy quote!
Click Here For Up To Date CapWest Mortgage Rates
Mortgage Discounts For Costco Customers
One thing that really caught my eye about CapWest was the fact that they advertise that they offer discounts on their mortgage products for Costco customers. I guess this is just one more reason why we should become members, our friends are always telling us how much they love Costco!
While I wasn’t able to find exactly what the Costco discounts are, on the Costco site they refer to their approved lenders as having capped lenders fees, and lower rates than might otherwise be available.
Lender Fees have been capped at $600 for an Executive members and $750 for all other members. In addition, the borrower will pay for what is typically called 3rd party fees, such as appraisal, title, and credit report. These fees vary based on the details of your loan. All out of pocket expenses, lender fees and closing costs will be discussed with you at the time of application.
So that could certainly save you some decent money, depending on what the lender normally charges for a loan.
Conclusion
If you have good credit (find out if you do) and are planning on buying a home or refinancing, CapWest Mortgage is definitely worth checking out. They have great rates, and can originate loans in all 50 states, so unless you’re in Canada, you should definitely keep them on your radar.
Add to all this the fact that they do have Costco discounts available, it should mean that they rise near the top of your list.
To find out more about CapWest or their mortgage discounts you can go to their site through the link below.
I am not a money genius. I’ve touched many proverbial “hot stoves,” and the Best Interest is part of my scar tissue. Today, let’s dive into seven of my money mistakes and the lessons I’ve learned from them.
Money Mistake #1: Not “Renting My Fun”
I once heard radio host Colin Cowherd say, “Buy ‘normal life,’ but rent your fun.”
It makes sense to buy healthy groceries. It makes sense to buy comfortable shoes. It makes sense to buy a reliable car. You need those things every day of your life.
Life is a constant.
But fun might be seasonal or weekend-only. Does it make sense to buy a snowmobile that you’ll only use eight weekends a year? Maybe. It might fall high on your bimodal passion graph.
Does it make sense to buy a boat? I have coworkers who sail every weekend during the summer. They plan sailing vacations on Lake Ontario. They love sailing. A full purchase makes sense for them.
But for the rest of us, renting a boat or snowmobile makes better financial sense. It’s too easy to overspend on a shiny object you’ll underuse
I’ve discovered a second category of “fun objects”: those that are fun only due to confounding factors.
Is a hot tub fun? Or is a hot tub fun when you’re hot tubbing with other people? That’s the lesson I learned…and the money mistake I made because of it. It’s a story I’ve written about before here on the Best Interest.
I bought a hot tub. It’s great, especially on cold winter nights. But my rationale for buying the hot tub was, “Hot tubs are great!”
We checked the record, and that rationale was determined to be false.
Hot tubs aren’t great. Hanging out with other people in a hot tub is great. Oops.
I could scratch my hot tub itch with a few trips per year. The rest of the time, I should just try to hang out with my friends more often. Thankfully, I didn’t use credit to buy the hot tub. I didn’t borrow money for it.
But it was an impulsive purchase. It didn’t mesh with my financial goals. The hot tub is nice, but buying my fun (rather than renting it) was a money mistake.
Money Mistake #2: Decrease Spending vs. Increase Income?
In this world of credit card debt and budgets and dwindling emergency funds, it makes sense to spend less. That’s the easiest way to save money. We can enact it today. Just spend less!
But is it the most consequential improvement? I say no.
Over the long term, you’ll be much better off making efforts to increase your income. Why? Let’s do some quick math.
Sadie makes $50,000 per year. Of that, she saves $10K. The other $40K goes towards bills—that’s $3300 per month.
If Sadie needed $500 extra this month, she could cut her $3300 monthly budget down to $2800. Scrimp and save.
If Sadie needed an extra $1000 this month, she might be able to cut that $2800 monthly budget down to $2300. Do you see where this is headed?
At some point, Sadie can’t cut any more fat from her budget. She’s limited by her survival needs. Frugality and cost-cutting have lower limits. They are bounded.
But increasing your income, technically speaking, is unbounded. The upper limit does not exist.
In reality, we’re not all going to be billionaires. We will eventually hit an income ceiling.
But Sadie can make a plan to increase her salary. She can look for promotions within her company. She might be able to switch jobs and leverage a raise that way. Making more money is possible for many people in many professions.
For my first few years of personal finance stove-touching, I focused on reducing expenses. And it worked! But I eventually hit a lower limit.
Then I looked for ways to increase my income. The results were fast and fantastic. I found a new job, negotiated my salary higher than offered, and secured the easiest 30% raise of my life.
Cutting spending is fine. Start there, it’s ok. But it’s a money mistake to neglect ways to increase your income.
Money Mistake #3: Listening to Mr. Market
I read a lot of information about personal finance and investing. I’ve done so for years. And there has always been someone calling for a crash, a burst bubble, or a bear market.
See—here’s an example from 2015. Meanwhile, how has the stock market actually performed since 2015?
We’re risk-averse, over-developed monkeys. Fear is normal. But we should try to delineate between irrational reactions to fear and rational reactions to facts.
Ben Graham’s famous Mr. Market parable personifies this irrational fear. If you’re not familiar with Mr. Market, follow that link and read up.
When I was new to investing, I listened to Mr. Market. And that was a money mistake! I let my investing choices be controlled by irrational fears.
As a result, I didn’t max out my investing accounts (which I’ve changed now). I estimate that I under-invested by about $20,000 in 2014 and 2015. It’s an opportunity that I’ll never get back.
Fast forward to today, that $20,000 mistake is worth about $40,000. Keep going to 2040, and that mistake is likely to surpass $100,000 in value.
There’s no use crying over spilled milk. It doesn’t keep me up at night. I’ve learned my lesson, and I won’t make that mistake again. And I hope you learn from my money mistake too.
P.S.—if you’re worried about an impending market crash, I 100% empathize. I get it. I recommend you read this and let me know if that helps.
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Money Mistake #4: Caring About the Joneses
We’ve all heard it before. “Keeping up with the Joneses.” Buying nice things simply because your peers—the Joneses—have those nice things.
But as I pointed out on the Rochester Business Connections podcast:
“The Joneses might be broke.”
-Jesse
It’s easy to forget that fact. The Joneses might be stretching—and stressing—their budget to a near-breaking point. Are you sure you want to keep up with that?
I worked at a software company after university. They hired tons of 22-year olds like me. And I immediately noticed that many of my peers had nice stuff.
They drove $50,000 cars. They wined-and-dined most nights. They planned cross-country trips on a whim—what’s a round-trip flight, $1000? Chump change.
I know that pang of envy. I wanted those things too! How were my peers—ostensibly on a similar salary as me—living these lavish lives? There are two obvious answers:
They had different budgets and different priorities.
They had alternate sources of income.
#1 makes will always be true. Everywhere you look in life, people will spend differently than you. My coworkers made conscious choices to spend on nice items. I put my money to different uses. That’s neither good nor bad. It’s just different. Each person spends differently.
And #2 is something I have zero control over. Some people are born on third base. Others are born in the ditch. It’s not fair. It’s just luck. I enjoy writing about the role of luck in society.
(But I certainly shouldn’t feel bad that some people are luckier than me. I’m very lucky in my own life.)
Once I’d convinced myself of these truths, my money mistake became obvious. Let the Joneses do their own thing. They’re on their own path. I have my path.
Money Mistake #5: Hunting Mice, Not Gazelles
Why don’t lions hunt mice? What chance does Mickey have against the lion king? Lions could hunt mice in spades!
But the energy gained from that small mouse isn’t worth the lion’s effort. The lion is better off hunting gazelles.
We can—and should—apply a similar thought process in our lives. It applies to time management. It makes sense at work. And yes, it makes sense in personal finance.
Don’t hunt the field mice in your money life. It’s a common money mistake. My favorite example is this classic:
“I’ll drive across town to fill up my gas tank…gas is 20 cents cheaper at that gas station!”
This is quintessential mouse-hunting. Driving 5 miles (which has a cost) over 10 minutes (what’s your time worth?) in order to save, let’s say, 20 cents/gallon * 15 gallons = three dollars!
You are spending—both in time and money—more than you’re saving.
I’m not saying, “Don’t go after free money.” I would certainly pick up three dollars if it was lying on the sidewalk. That’s because sidewalk money costs me two seconds of time and one solid bend of my back.
But this gas savings had a real cost. That cost completely negates the benefit. The $3 gas savings is not free! To ignore that fact is a money mistake.
It’s the same reason lions don’t hunt mice. Some “easy prey” simply aren’t worth the effort.
Money Mistake #6: Servant or Master?
Various philosophers are attributed with saying:
Money is a great servant but a bad master.
This is certainly a lesson I’ve learned the hard way, and continue to learn—both through normal life and through my blog & podcast projects.
Money is nothing but a tool. Nothing more, nothing less. Tools help us build. But you probably know some people who classify as ‘tools’—and you don’t want them to be your master!
Jokes aside, there’s a slippery slope towards letting money control you. I’m pretty transparent here on the Best Interest. I’m in a healthy money situation and have been for a few years. But I still stress periodically. Without fail, that stress is due to my letting money become more master than a tool.
Perhaps my favorite articles to write are the ones that involve the psychology of money. Stuff like the fulfillment curve and the aforementioned “bimodal spending.”
There’s a pattern in my articles. That same pattern is borne out when other financial writers discuss the psychology of money. Namely, we all ask: how do we optimize money as a tool and minimize its role as a master.
Money Mistake #7: No Budget, No Clue
For many years, I operated without a budget. It’s true.
Yes, now I’m a budgeting fiend. But there was a time when I had zero clue where my money was going. And that, no surprise, was a massive money mistake.
I’d check my bank accounts occasionally. I knew—roughly—what I spent on groceries and gasoline. But I couldn’t tell you for sure. And I certainly couldn’t have found any good ways to improve my finances.
It’s funny. Because of my lack of knowledge, I can’t even tell you the opportunities that I missed! That’s scary in-and-of-itself. As I wrote in the “Budget Basics” article, all of the experts I spoke with budgeted. They all monitor their spending in some way.
Readers, you don’t have to be a zealot like me. As I outlined in my 2019 review and 2020 review, I budget like a maniac.
But you can’t just “do nothing” when it comes to budgeting.
No More Money Mistakes?
No, no. I’m sure I’ve made tons of other money mistakes. But we’ll stick with those seven today. Quick recap, they were:
Not “Renting My Fun”
Decrease Spending vs. Increase Income
Listening to Mr. Market
Caring About the Joneses
Hunting Mice Instead of Gazelles
Letting Money Be My Master (Instead of Servant)
No Budget = No Clue
Feel free to chime in with some of your money mistakes below. It’s ok. We’ve all messed up before 🙂
Thank you for reading! If you enjoyed this article, join 6000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
If you prefer to listen, check out The Best Interest Podcast.
Faith-based investing! What does it mean? Is it a worthy investing route to follow?
In this article, we’ll take an in-depth look at this type of investing and explore how you can make it work for you. Read on to learn about how this way of investing strategy allows you to reinforce your values.
Nowadays, investors are not putting their money just anywhere. Investors have realized the benefit of investing in things that matter. These include things like caring for the environment, wildlife, society, and minority groups. They want to make a difference with their investments.
Investors are now looking for investment options, which offer good returns and align with their beliefs and values. This way, even as they make more money, they do it with a clean conscience.
Faith-based investing is an investment philosophy that many investors are now embracing. And, like impact investing or socially responsible investing, it promises to do more than multiply your money.
So, what exactly is faith-based investing, and how does it work? Is it worth your money and time? And, how do you get started with faith-based investing?
Let’s dive in and find out.
What is Faith-Based Investing?
When we see the term faith-based, most of us instantly think of “religious investments.” Well, while it’s connected to religion, it’s definitely not in the way most of us might think.
Firstly, faith-based investing has nothing to do with religious organizations’ stocks. In fact, as you might already know, religious organizations are non-profits, thus, don’t issue public shares.
For instance, you’ll never see churches, mosques, or temples, offering shares to the public.
So, if not investing in religious organizations, what does faith-based investing mean?
Your next guess might be correct.
Faith-based investing is not too different from other investment philosophies. All aim at maximizing investors’ returns.
But, investors here don’t choose just any investment. They focus on investments whose strategies align with their religious values.
This way, the investor’s faith, values, and beliefs determine where they invest their money. As you can notice, while this type of investing doesn’t mean investing in shares from places of worship, it’s still tied to religion and values. And that’s why faith-based investing can also be referred to as values-based investing.
Interestingly, every faith has its opinions and perspectives on how to invest money to support certain causes. Also, the same applies to causes that contradict the faith’s beliefs and values.
For this reason, we will dissect faith-based investing based on some of the main religions around the globe. This will help us understand the concept better.
Top Faith-Based Investing Options
If you want to start your faith-based investing journey, here are some of the main options you can choose from.
Christian Investors
Christianity is the world’s largest religion, with around 2.5 billion followers. And, all these people lead their lives based on certain beliefs and values – investing is part of this life.
If you are Christian or wish to invest based on Christianity values, there are two main investment styles you can opt for:
Catholic Faith-Based Investing
The Catholic faith has its own framework on how believers should lead their economic life. The framework outlines ten faith-based principles and guidelines. This outlines how Catholic Christians should engage in finances and the economy.
Generally, they emphasize investing in companies or funds that support various positive issues. For instance, environmental conservation, human rights, fair employment practices, etc.
Also, Catholic investors will avoid investments that support certain things. These include abortion, weapons, adult entertainment, embryonic stem-cells research, etc.
Their investing principles revolve around moral law and human dignity.
Currently, we have many companies, investment firms, and funds you can pick from. These are companies where such values form part of their investing philosophy.
This means that as a Catholic value investor, you can invest freely in these companies or entities. And, you won’t have to worry about contradicting your faith.
Some excellent examples of Catholic faith-based investment entities include:
Catholic Investment Services
This is a not-for-profit investment management firm designed to deliver high returns on investment. And, it keeps Catholic faith principles at heart. It aims at pursuing investment excellence based on Catholic faith values.
Currently, the firm manages assets worth over $1 billion and serves around 45 Catholic institutions. Also, its restricted companies’ list stands at 700.
Catholic Investment Strategies
This is another great way to invest in Catholic faith-based investments. Here, the platform allows you to invest your money in a way that aligns with your faith and church values.
And as they put it on their website, they will never invest your money in companies whose values contradict the Catholic faith.
Generally, the platform invests in institutions like hospitals, universities, etc.
Also, they offer a portfolio that fits your needs. The portfolio excludes investments that support abortion, contraception, racial and gender discrimination, etc.
The LKCM Aquinas Funds
With the LKCM Aquinas Funds, the main investment strategy is guided by social responsibility (SRI). This Equity Fund offers Catholic faith investors an investment option that promises high ROI.
Its choice of securities and companies to invest in depends on the principles and guidelines formulated by the US Conference of Catholic Bishops. The fund has been operational since 2005 and continues to grow with a 9.83% growth rate since it began.
Protestant Investing
Unlike the Catholic faith that shares common beliefs across the entire faith, Protestants are somewhat different. While some denominations are quite liberal in their beliefs, others are more conservative. But, their principles tend to be similar.
Generally, the Protestant faith encourages work ethics and hard work. It urges its followers to invest in entities that support general Christian values. This mainly involves social consciousness. This means that this type of faith-based investing might not be as strict and specific as its Catholic counterpart.
Also, even as they promote social consciousness, they exclude some investments. These include stocks that support:
Adult entertainment
Weaponry
Embryonic cloning
Addictive behavior (drugs, gambling, etc.)
High-interest loans (shylocks and payday loans)
Some excellent examples of companies and funds that support Protestant faith-based investing include:
GuideStone Funds
For over 20 years, GuideStone has faithfully served faith-based investors and advisors. The platform seeks to offer strong-performance investments guided by various Christian values.
GuideStone provides Protestant faith-based investors an excellent opportunity to invest in mutual funds. And, it offers a diversified portfolio across various asset classes. It does all this with Christian values in mind.
The platform seeks to offer socially screened investments that are well managed. These ones guarantee great returns for the investors.
In essence, they use biblical teachings and values to ensure that investors get good returns. Also, their money is also invested in investments that make the world a better place.
The fund’s main values revolve around family, health, stewardship, life, and safety. So, if this sounds like you, you certainly need to start your investing journey here.
New Covenant Funds
This is a faith-based investment fund by the Presbyterian Church. It seeks to offer Protestants the best investing style based on their values.
Basically, the fund’s investment strategies depend on socially responsible investing. Here, the slogan, “you can do well while doing good,” guides them. It gives diversity in investment options, as well as charitable giving.
The platform makes investment decisions based on social consciousness principles. It supports doing good to help nature and society.
Additionally, it avoids investments that promote negative issues. This includes things like gambling, alcohol and other addictive drugs, pornography, etc.
As a Christian, New Covenant Funds offers something for everyone. Whatever your investment mission is they have something for you.
Jewish Faith-Based Investing
Giving and diversification are the key principles that guide Jewish faith-based investing. Jews follow investment strategies that adhere to these two principles, among other values in their faith.
In the Jewish religion, there are many teachings about giving and diversification, as seen in the Talmud. These teachings subsequently act as guidelines when it comes to investing.
Jewish investing doctrines and beliefs resemble socially responsible investing. Here, society and the environment are major pillars in investment decisions.
Different faith-based investments embrace socially responsible investing. This is because it fits into the guidelines and principles of different religions.
Some of the main issues addressed in this type of investing option include:
Social justice
Climate change
Region’s specific issues
Various mutual funds offering Jewish faith-based investments focus on various crucial issues. Some of the best investment platforms here include:
Jewish Values Investment Funds
Investing in Jewish faith-based mutual funds has been made easier. JVIF, LLC, offers an excellent way for Jews to invest in companies and funds that align with the Jewish faith and beliefs.
This investment advisor recognizes the importance of tzedakah (charitable giving). It allows the Jewish community to invest in things that matter to them.
The Bend the Arc
This is another great fund, offering Jewish investors a chance to grow their money. An, it allows them to take part in charitable giving.
The fund aims to encourage community development by supporting initiatives as follows.
Small businesses,
Affordable housing, etc.
With as little as $20, anyone can invest and make a change. The fund’s Community Investment Note finances various organizations. These are organizations that bring positive change to various communities globally.
If you want to invest in something that makes the world a better place, this might be the way to go.
Islamic Investing
Just like Christianity and Jewish faiths, the Islamic religion has values and beliefs. These guide its followers on the way to lead their lives, including financial matters. This way, when it comes to investing, Muslims have specific guidelines or principles to follow.
Generally, Muslim investors will adhere to halal or permitted values while investing. This set of rules allows investors to undertake a disciplined type of investing. They make investments that are ethically, socially, and environmentally responsible.
Islamic investing principles discourage investing in areas such as:
Pork related businesses
Companies that invest in gambling, drugs, and adult entertainment
Short-term speculation (the faith considers this as gambling).
Companies with huge debts since they are paying interest for the loans.
Any investment that pays interest (money markets, savings account, etc.)
In other words, any company or fund that wants to qualify for Islamic investing must adhere to Sharia law. It must follow the teaching from the Quran, Qiyas, Ijma, and the Sunnah.
If you’ve been looking for a way to make Islamic faith-based investments, here are some excellent options for you.
Amana Mutual Funds
These are Islam faith-based mutual funds offered by Saturna Capital. The funds’ investment strategies are guided by the Islamic faith. And, they embrace social, ethical, and environmentally-friendly practices.
However, they prohibit investing in interest-bearing securities and bonds. They’ll usually try to guard their investments against inflation through long-term equity investments.
Saturna follows investment principles that avoid interest or companies engaging in prohibited issues. These include the sale of alcohol, pornography materials, gambling activities, etc.
Allied Asset Advisors, Inc.
Allied Asset Advisors operates like any other investment management company. It offers portfolio management, financial planning, mutual funds, and retirement plans for investors.
The company is Islam faith-based and offers investment opportunities supporting the Islamic faith.
It introduced the Iman Fund, which is tailored to fit the needs of Muslim investors. It adheres to Sharia law and principles.
Is Faith-Based Investing Worth It?
Absolutely yes! If you find the right investing platforms, you can easily make money. Also, you’ll feel proud of how your money is being invested.
But, you should note that faith-based investing faces the same risks as other investments. So, ensure that you’ve not settled for just any company or fund.
Choose companies that can prove strong financial standings, charge reasonable fees, and that show growth potential. This way, you don’t end up investing your money in companies that will never offer value for your investment.
Generally, faith-based mutual funds and ETFs offer better long-term returns.
This is according to research published by John C. Adams and Parvez Ahmed from the University of Texas and the University of North Florida.
So, if you feel that faith-based investing ought to be your next investment move, it can certainly be a good move. But as mentioned, do thorough research on the best faith-based investments depending on your values and beliefs.
Author Bio:Kyle is the founder of The Impact Investor, a website focused on helping others invest sustainably without sacrificing financial returns. We all want products sourced by sustainable and ethical means, why should investing be any different? Follow my investing journey on my Facebook, YouTube, or Twitter accounts.
The allure of Indiana’s college towns is as diverse as the landscape of the Hoosier State itself.
Indiana is a state with a rich history, scenic beauty and a diverse range of academic institutions. This combination has given birth to some truly wonderful college towns that cater to the needs of students and residents alike. From the picturesque beauty of Bloomington to the bustling excitement of Indianapolis, these college towns have something for everyone. Let’s take a closer look at the best college towns in Indiana and discover what makes them so unique and appealing to students and young professionals from all across the country.
Home to Indiana University, this lively college town is known for its vibrant atmosphere, scenic beauty and diverse cultural offerings. As one of the best college towns in Indiana, Bloomington has something for everyone, from nature lovers to art enthusiasts.
The downtown area is filled with locally-owned shops, restaurants and bars, making it the perfect place for students to socialize and unwind. Kirkwood Avenue, in particular, is a popular hotspot for students, offering a wide range of dining options and entertainment venues.
Bloomington is also known for its love for and support of the arts, boasting several theaters, galleries and museums. These include the Indiana University Art Museum and the Buskirk-Chumley Theater among many others. For those who prefer to spend their time outdoors, the city is surrounded by numerous parks and nature preserves, including the beloved Griffy Lake Nature Preserve.
Home to Ball State University, Muncie is a welcoming college town that offers a strong sense of community and a friendly atmosphere. With a variety of local businesses, entertainment options and cultural attractions, Muncie is an ideal environment for students to thrive and plant firm roots for a rewarding career in the Hoosier State.
The city’s downtown area features a range of shops, restaurants and bars, ensuring students have plenty to do when they’re not hitting the books. The Muncie Civic Theatre and Cornerstone Center for the Arts are popular cultural hubs, hosting performances, art exhibitions and workshops throughout the year.
Outdoor enthusiasts will appreciate Muncie’s many parks and green spaces, including the beautiful Minnetrista Museum and Gardens and the White River Greenway. With its strong sense of community and passionate student population, Muncie is a great place for college students and recent grads to call home.
Located along the St. Joseph River, South Bend is home to the prestigious University of Notre Dame. As one of the best college towns in Indiana, South Bend offers a unique blend of rich history, beautiful architecture and a thriving arts and culture scene.
The city boasts a diverse range of entertainment options, including the historic Morris Performing Arts Center and the South Bend Civic Theatre. Students can also enjoy the city’s many museums, none more noteworthy than the Studebaker National Museum.
South Bend’s premier outdoor attraction is the scenic Riverwalk, which offers students opportunities for relaxation and recreation. With its strong economy and ample job opportunities, South Bend is an excellent place for students to start their careers after graduation. Not to mention the fact that a degree from Notre Dame goes a long way in every city in the Midwest and the country at large.
Home to DePauw University, Greencastle is a charming college town known for its close-knit community and picturesque surroundings. With its welcoming atmosphere, Greencastle provides an excellent environment for students to grow academically and personally.
The city’s downtown area features an array of shops, restaurants and entertainment venues that cater to the student population, including the legendary Moores Bar and Grill. The historic Putnam County Courthouse, built in 1905, serves as an easily recognizable meeting point for the town.
Cultural attractions in Greencastle include the DePauw University Green Center for the Performing Arts and the Putnam County Museum. For students who enjoy spending time outdoors, Greencastle offers several parks and green spaces, such as the popular People’s Pathway and the serene Robe-Ann Park.
With its strong sense of community and picturesque setting, Greencastle is an ideal college town for students seeking a well-rounded and intimate college experience.
Home to Purdue University, West Lafayette is a thriving college town that offers students a vibrant and friendly community. Known for its strong emphasis on academics and research, Purdue provides an excellent environment for students pursuing a career in any of the STEM fields.
The city’s lively downtown area boasts a variety of restaurants, shops and entertainment venues, ensuring students have plenty to do when they’re not studying. Popular attractions include the Purdue University Galleries and the Purdue Convocations, which host various performances and events throughout the year.
For outdoor enthusiasts, West Lafayette offers several parks and nature preserves, such as the picturesque Celery Bog Nature Area and the scenic Wabash Heritage Trail. With its strong economy and ample job opportunities, West Lafayette is a great place for students to kick-start their careers after graduation.
Situated in northwest Indiana, Valparaiso is home to Valparaiso University. This beautiful college town offers students a peaceful environment with easy access to the excitement and opportunities of nearby Chicago.
The town’s thriving downtown area features a variety of restaurants, shops and entertainment venues, such as the historic Memorial Opera House and the Brauer Museum of Art. Additionally, the Valparaiso University Center for the Arts provides students with unique opportunities to showcase their creative talents and fill out those portfolios for future employers.
With its strong emphasis on community and a highly-rated school system, Valparaiso is an excellent choice for students looking for a well-rounded college experience in a calm, suburban setting.
As the capital of Indiana and its largest city, it’s no surprise that Indianapolis makes the list of best college towns in Indiana. With institutions like Indiana University-Purdue University Indianapolis, Butler University and Marian University, the city offers a diverse range of educational opportunities.
Indianapolis is known for its thriving arts and culture scene, with world-class museums, theaters and galleries. Students can immerse themselves in the city’s rich history and enjoy iconic landmarks like the Indianapolis Motor Speedway and the Indiana State Museum.
The city also has a vibrant culinary scene, with everything from high-end restaurants to cozy cafés serving up delicious fare from all corners of the globe. And let’s not forget about the city’s many sports teams, including the Indianapolis Colts and the Indiana Pacers, offering plenty of opportunities for die-hard fans and casual observers alike to cheer on their city.
Find the Indiana college town for you
From the invigorating urban experience of Indianapolis to the serene, community-focused environment of Greencastle, the college towns featured above each embody the spirit of Indiana, offering students the chance to create lasting memories and forge their own paths. Embark on an academic journey in one of these exceptional college towns and discover the distinct charm and opportunities that await you in the heart of the Midwest.
Check out the best cities for remote work to ensure all of your lifestyle needs are met when living and working remotely.
Since 2020, work-from-home (WFH) has become the new normal in the workplace. While some companies are pushing for a return to office, others are embracing remote work indefinitely. When the world is your oyster, where should you go to live and work remotely?
Well, the team at Rent. did our research to put together a list of the best cities for remote work. So, if you’re ready to explore the country while working remotely, consider any one of these top best cities for remote work.
The 10 best cities for remote work
As a remote worker, your physical location hardly matters. As long as you have a productive workspace and a strong internet connection, you can pretty much work wherever your heart desires. Do you enjoy sitting on a patio while you take your Zoom calls? Well, as long as your connection is strong you’re good to go!
We looked at a few things to make our recommendations:
Median rent and rent change year-over-year
Access to the internet and average internet speeds
WFH population and number of coworking spaces
If you’re a digital nomad who wants to fully embrace WFH, consider these top 10 locations across the country that have been named the best cities for remote work.
Median rent: $2,075
Average Mbps: 83.46
Number of coworking spaces: 68
% of population WFH: 19 percent
Orlando is the number one best city for remote work based on our ranking methodology. With a population of 309,154 people, it’s a perfect mid-sized city in the sunny state of Florida.
You’ve got well-known amusement parks. You’ve got crystal blue beaches and sunny skies. And, you’ve got a solid environment for remote work. Retirees and young professionals alike are flocking to Orlando and it’s easy to figure out why. Consider this city if you want to be a remote worker.
Median rent: $1,528
Average Mbps: 117.89
Number of coworking spaces: 78
% of population WFH: 38 percent
Austin is the second-best city for remote workers. It’s a hopping metro with a young millennial crowd. The rent is reasonably priced and there is no state income tax, which is a bonus for remote workers and residents alike. Austin is particularly appealing to the IT sector and is commonly called “Silicon Hills.”
So, if you’re a remote IT worker, this city is even better for you! But if IT isn’t your field of work, don’t fret: You can still live in Austin and enjoy the benefits of remote work in your chosen industry.
Median rent: $1,339
Average Mbps: 80.71
Number of coworking spaces: 11
% of population WFH: 13.2 percent
Ranking third on our list is the city of North Charleston in South Carolina. With a smaller population just shy of 120,000 people, this city is the perfect place to settle down to get a mix of big-city life with small-town charm.
People rave about the dining scene, so you can work remotely from a coffee shop or restaurant! This city is full of history and has a diverse cultural scene and stunning scenery. If you’re looking for a place that seemingly has it all, check out North Charleston.
Median rent: $1,338
Average Mbps: 76.26
Number of coworking spaces: 23
% of population WFH: 15.7 percent
Grand Rapids is a great city for outdoor recreation and beer scene. If you’re a digital nomad who wants to flex the Midwestern value of “work hard, play hard,” this is the city for you.
The city alone has over 40 breweries. You’ll be able to go on a nice trail walk and cool down with a beer. Additionally, it’s one of the largest office furniture-making cities in the U.S. So, you can definitely find yourself a sweet office set up for your remote work office here.
Median rent: $977
Average Mbps: 129.12
Number of coworking spaces: 7
% of population WFH: 12 percent
Columbus, GA, is the fifth city on our list of best cities for remote work. If you’re looking for a family-friendly place to live, consider Columbus. This city is rising in popularity as it’s an easy-going town with friendly people.
There are lots of parks, restaurants and bars so you’ll have a good mix of outdoor and indoor activities when you’re not working. One thing to note is that you may experience severe weather in this pocket of the country.
Median rent: $2,220
Average Mbps: 92.68
Number of coworking spaces: 92
% of population WFH: 38 percent
Because it’s a large metro, Atlanta is a great place to live and work remotely — or to look for an in-office job if you tire of the WFH life. You also have several large corporations headquartered here, such as Delta and Coca-Cola, so job options are plentiful and rent reasonable compared to similar-sized metros.
Median rent: $1,183
Average Mbps: 55.53
Number of coworking spaces: 15
% of population WFH: 12 percent
You don’t have to be a Packers fan to live in Green Bay (although it wouldn’t hurt!) People love this family-friendly city and rave about the small-town community traditions and vibe you experience living here.
Ranking seventh on our list of best places for remote workers, Green Bay has affordable living and is recently experiencing an influx of people moving here. Enjoy football games or farmer’s markets when you’re not working from home.
Median rent: $1,444
Average Mbps: 94.95
Number of coworking spaces: 128
% of population WFH: 15.6 percent
Houston is another Texas city that made our list of the best places for remote workers. It’s a larger city, compared to Austin, so if you’re looking for a big metro area in Texas, consider the nation’s fourth-largest city.
This metro is known for its diverse food and entertainment scene. Since it’s a huge city, you pretty much have a good mix of everything to do. Plus, rent is fairly inexpensive, making the cost of living affordable.
Median rent: $1,613
Average Mbps: 119.41
Number of coworking spaces: 26
% of population WFH: 33.1 percent
Another southern city makes our list of the top 10 best places to work remotely. Raleigh has great weather, so if you’re looking for a beautiful and mild place to live, this is for you.
Additionally, it’s known to be a great city for small businesses and entrepreneurs, which is good news for remote workers hoping to branch out on their own and network. It’s also been ranked as the most climate-resilient city, the best for work/life balance and one of the best places for college students to live.
Median rent: $1,041
Average Mbps: 82.95
Number of coworking spaces: 9
% of population WFH: 16.7 percent
Last but not least is Appleton, WI. With a population just shy of 75,000 people, Appleton is the smallest town on our top 10 list. So, if you’re looking for a quiet, small city to live and work remotely, this is the place for you.
Residents like the mix of outdoor activities and in-town activities. It’s also been named one of the best places to raise children. Check out Appleton if you’re wanting a great city to be a remote worker and raise a family.
Other cities to consider when working remotely
We’ve listed the cities that rank in the top 10 best places for remote work, but there are several other places across the U.S. that made our list, as well. Check out the top 100 cities in the nation that remote workers can call home.
Daytona Beach, FL
Savannah, GA
Rapid City, SD
Greenville, SC
San Fransisco
Chicago
Pittsburgh
South Bend, IN
Dallas
Waukesha, WI
Fort Lauderdale, FL
Chattanooga, TN
Greensboro, NC
San Antonio
Shreveport, LA
Interesting findings from the top 25 best cities for remote work
While looking at the data, we found some interesting highlights that are worth calling out.
24 of the 25 best cities for remote work are in the South or Midwestern United States.
Only one of the top 25 best cities for remote work is on the West Coast. San Francisco is the only West Coast city to make our list.
Florida, Georgia and South Carolina all rank well for remote workers with three cities in each state making the top 25 best cities for remote work.
The majority of the best cities for remote work have populations under 250,000 residents. While there are a few outliers, the best cities to WFH are generally smaller cities compared to large metro areas.
What to consider when working remotely
Regardless of where you choose to live to work remotely, there are a few common things you must consider to be a successful WFH employee. Here are a few considerations and questions to ask yourself when choosing a city for remote work.
How much internet speed do you need? Depending on your location — rural, suburban, or urban — your internet needs will vary. Having a strong internet connection and the right internet speed is crucial for success as a remote worker.
Do you have the right office set up? Relaxing poolside while responding to emails is appealing, but there are times when you’ll need a physical office or desk set up. Make sure you have the right desk, chair and computer equipment
How long do you plan to stay in your location? Some people choose to settle down in one place and others move frequently. Your choice will determine the length of your lease. You’ll want to consider if a fixed lease or month-to-month is better for your lifestyle.
Is your job remote-first indefinitely? Before you pack up and hit the road, ensure that your job is going to be WFH long-term. You don’t want to make a cross-country move only for your company to demand a return-to-office six months later.
Find the right city for you
With so many WFH options available, you really can go anywhere in the U.S. or the world, for that matter. We hope our data and insights on the best cities for remote work help you as you decide where to move and pursue a WFH lifestyle.
Remember, these are the best cities for remote work according to our methodology; however, there are several places in the country that may work for you. Do your research before moving and you are bound to find an apartment and place to live that fits all of your lifestyle needs.
Methodology
Cities were ranked and scored based on the following:
Rents: 30 points
Median Rent: 20 points
Rent Change YoY: 10 points
Internet Speed and Access: 40 points
Num. Int, Providers, 100mbps: 10 points
Avg. Mbps.: 20 points
Lowest Cost Int. Plan: 10 points
WFH Population and Coworking Spaces: 30 points
% Population WFH: 10 points
Coworking per 1,000 WFH: 20 points
Our rent prices and changes are from Rent.com’s Rent Report. Internet speed and access numbers are from Broadband Now.
The number of coworking spaces is from FourSquare. Population numbers and proportion of people working from home is from the Census’ American Community Survey (ACS).
Cities with insufficient data were excluded.
The rent information in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
My son is seven and three quarters years old. Having reached second grade, he is having a nice time defining himself in the little society of the public school system. He likes being the creative one who invents the games that his classmates play at recess. Defines himself as a good reader, a respectful class clown, and the guy who always gets his homework done.
Last week, when finishing up a writing assignment on the kitchen table, he asked for my help and I could tell he was frustrated.
“Dad, I just finished this big story and I thought I was done. But it says I have to write the whole thing out in my notebook now.”
I looked at the sheet where he had meticulously written out his story about a journey to the center of the Earth. At the top were the instructions: “Write a story in your notebook about travel.” Then the whole page below was filled with blank lines, implying that you were supposed to write the story right here on that worksheet, which is what he had done. The instructions were conflicting.
“Ahh”, I told him. “It looks like the instructions were not clear. But since you already wrote your story on this worksheet, you can just hand the page in instead of the notebook. Or if you want to get really fancy, we can cut out the story and glue it into your book!”
This suggestion seemed to bring him great unease. The instructions were telling him to write his story in the notebook, and he had clearly written his on the paper instead. He was in violation of The Rules, and this was scaring him.
I suddenly realized I had some teaching to do. It was time to share a deeper explanation of what The Rules really are, and I thought you might want to join in for the session as well. Because if you look around carefully, you will see that most of the problems of our society are based upon an incorrect understanding of these rules.
Let’s dig into the Money Mustache Mailbox for a recent example. When I first announced that I had bought a new 1950s house and was planning to renovate it, a complainypants comment came in with the juicy content:
This renovation you describe is no small feat and getting a structural engineer to “sign off” on the installation of new roofing system upon a foundation and walls (with 7 foot 8 inch ceilings no less) set over 50 years ago could be challenging as well. I can’t count the number of times I have seen plans similiar to these go haywire because of the unforeseen. And I question the reward by selling the old place and moving…in this neck of the woods “docs and transfers” are significant and sometimes exceed 6% of the selling price and those are historically paid/split buying and selling. And lastly ….am I missing something…this house seems small… very simple…a basic dwelling…80 by 80 lot….not a fan. I spend a lot of time working from and around my home…give me some space…
“Wow“, I thought, “Is this person completely unfamiliar with the principles of this blog?” I went through the usual cycle of one raised eyebrow, two raised eyebrows, a clenched fist, a finger poised over the “delete” button, and then at last I calmed down and saved the text to share with you instead. For while the complainy can’t-do-attitude of this comment is inappropriate for my comments section, the underlying assumptions about rules are worth studying:
“You can’t get a structural engineer to sign off on renovating an older-than-50 house” – Here our friend has assumed that there is a rule that old houses can never be restored. The idea is silly, of course, because people renovate much older houses in the same neighborhood every day. In fact, a friend and I just finished a major addition on a 103-year-old one earlier this year. But if I had started the project with an imaginary fear of such a rule, I would be dead in the water. And at this point I can report that the structural design is just about done and will be “signed off” this week.
“Transaction Fees make house moving too expensive to be worthwhile” – the imagined rule here is that house transactions are always very expensive, so we should shy away from them to avoid this cost. But I have done eleven of these transactions since moving to this country, and some of them were done for only the $50 county recording fee. To tilt the scale further, my wife deliberately earned a real estate license seven years ago to cut the cost of most other transactions in half. Again, the imagined rule proves false and we are all free to move to a new house whenever we like.
“A small and simple house is not desirable” – Hmm, I wonder which society dreamed up this rule? First of all, a 1532 square foot soon-to-be-luxury home on an 80 x 80 foot lot adjoining a 1.3 acre public park overlooking the Rocky Mountains in the walkable central district of one of the most desirable cities in the world’s richest country is probably good enough for plain old Mr. Money Mustache. But if there is anyone who thinks that even a quarter of this standard of living is a key to happiness, you might want to check to see if your brain tissue is sparkly and white, because you have received a near-fatal dose of brainwashing, derived from a book of rules that helps nobody.
But I can’t win this battle with just a list of single-issue defenses. To cure the disease of Rules Excusitis, you need to elevate yourself to the next level and understand exactly what The Rules are. And a nice way to illustrate this is to turn to one of my favorite concepts from Dungeons and Dragons:
In D&D, your imaginary characters come with personalities defined along two different scales:
How Good or Evil they are, and
How much respect they have for The Rules
So you end up with descriptions like Chaotic Evil, Chaotic Good, Lawful Evil, and Lawful Good. If we put these into a colorful table with some insightful examples, it would look like this:
At this point, you may see the connection between The Rules, and becoming wealthy. I propose that the biggest advantage you can give to yourself and your society is to be as high on the Good Scale as you can be, but pay less regard to your score on the Lawful Scale.
Now, before the police officers among you pack up some handcuffs and begin a stakeout of Longmont, let’s explain that with a few examples.
US society has literally adopted the phrase “standard of living” to be synonymous with “amount of money you spend on yourself”. If you follow this rule, you permanently lock yourself into needing more money to feel happy, which dooms most of us to 20-40 more years of office work than we really needed to achieve it.
Far too recently, laws existed that made it illegal for African Americans and women to vote. But not long before that, it was legal to own human slaves. Somewhere in there, beer and wine became illegal for 13 years. We had philosophy, steam power, advanced astronomy and physics at the time, and yet these were the rules a lawful person would have to follow. Knowing this, is it logical to assume that our current laws on Marijuana plants, the rights of people who are not heterosexual, or what level of the natural environment we share it is acceptable to destroy are automatically correct? Of course not. In some cases, Goodness requires you to fuck the idea of Lawfulness and do what is right, working to change the laws in the process.
Religions impose their own laws, which were often designed with the most noble of intentions but now cause bizarre and impractical side effects. A historical famine or disease made it sensible to ration certain crops or meats at the time, yet the rules were set in stone and are followed blindly to this day. Political alliances or wars generated hate between people, and now their descendants continue to bomb each other’s vegetable markets even centuries after the original sins were buried. Some leaders were opposed to gay people a thousand years ago, and now their descendants still work to write the discrimination into their country’s constitution. Although these may be The Rules today, a quick questioning of their origins should reveal that there is great advantage to all if you are bold enough to break them.
And to collect all of this badass rule-breaking philosophy and apply it to making yourself richer today, just look around you and try stirring up some of your own shit. A few examples to get you started:
The Christmas Holidays are coming, and the crap has already arrived in the stores. You’ve been questioning whether you have to participate in the giant blizzard of plastic packaging and trinkets imported from China. You do not. You can go an entire holiday season without buying anything, and apply the spirit to sharing your skills and wealth with others who need it instead.
You’re getting married, and your family thinks you need the giant ceremony with the flower designer, the experience consultant, and the limousines. The amazing news is that you do not! You can get married for ten bucks at the county office and then bring 100 friends, some slacklines, fiddles, banjos, boxed wine and a stand-up bass down to the local park and make everyone shed tears of joy when they realize how much fun they are having.
You feel oppressed by the rules of your own city, family, or country. The cost of living is too high or the laws are restrictive, and you cannot achieve what you see the Mustachians here around you are doing because you are bound by different rules. You are not. You can move to a different city or country. You can earn a leadership position in your own family, or your own country. You can work within your own system, or move to any other system, to get whatever advantages you like. With sufficient disregard for The Rules, you will find new avenues of freedom opening in your life wherever you live.
Everyone has told you that your kid will only prosper in the expensive school district where nobody speaks Spanish and the horseback lessons 20 miles out in the country are essential to round out the character to qualify for the eventual Ivy League school. Such well-meaning but tragic bullshit! Little MM’s officially-measured reading level is just about to hit the high-school level, and he can beat me at chess. And he shares a classroom with kids who don’t get enough for breakfast. He gets his advantage from parents who keep books instead of televisions in the house, and who sacrificed Mercedes SUVs and private schools in favor of having time to bike to school with him and help both him and his not-quite-as-lucky friends in the classroom when they get there.
Junior Money Mustache will have the grades and the financial resources to get into the university of his choice, but also knowledge that there is no requirement to get a college education at all, for either a happy life or for financial success. For this old rule of society is another one to disregard.
I describe these happy examples not as an attempt to boast or to criticize others, but hopefully as an inspiring example of what happens when you question and break the goddamned rules.
So I hope that as my son grows up, he will cultivate his own healthy skepticism for The Rules, and call bullshit whenever something smells foul. Because as it turns out, the people who have the balls to question the rules, find that they are suddenly in the position of making them instead.
—
* This is just me poking a little fun at Mrs. MM. In reality she is a truly badass woman who proudly defies most social conventions, and I love her for it. She can also bench press almost her bodyweight and squat 150% of it. But occasionally we debate on the issue of taking long and educational family vacations because The Rules say that you shouldn’t miss too much school. When interviewed in person, the teacher and principal admitted they thought travel was a great idea for our son and they would gladly bend the rules for us. Yet another example of how to approach things: if you don’t like the rules, talk to, or become, the boss.
Maybe it’s a hatred of cold weather, a love of chicken and waffles or even the fact that the south is teaming with jobs in both tech and entertainment, but when it comes to the fastest-growing US cities, southern cities are booming. The U.S. Census Bureau recently released its list of The Top 15 Fastest Growing Cities in America, and 10 of those locations found themselves south of the Mason-Dixon line.
According to Amel Toukabri, a demographer in the Census Bureau’s population division, this is part of a growing trend. “Overall, cities in the South continue to grow at a faster rate than any other U.S region. Since the 2010 Census, the population in large southern cities grew by an average of 9.4 percent. In comparison, cities in the West grew 7.3 percent, while cities in the Northeast and Midwest had much lower growth rates at 1.8 percent and 3.0 percent respectively.”
So where are these cities where the population is growing like crazy? Here’s the Census Bureau’s top 15:
The 15 Fastest-Growing Large Cities in America
Rank
City
Metro Area
Percent Increase
2016 Total Population
1
Conroe, TX
Houston, TX
7.8%
82,286
2
Frisco, TX
Dallas-Fort Worth, TX
6.2%
163,656
3
McKinney, TX
Dallas-Fort Worth, TX
5.9%
172,298
4
Greenville, SC
Greenville, SC
5.8%
67,453
5
Georgetown, TX
Austin, TX
5.5%
67,140
6
Bend, OR
Redmond, OR
4.9%
91,122
7
Buckeye, AZ
Phoenix-Scottsdale, AZ
4.8%
64,629
8
Bonita Springs, FL
Fort Myers, FL
4.8%
54,198
9
New Braunfels, TX
San Antonio, TX
4.7%
73,959
10
Murfreesboro, TN
Nashville, TN
4.7%
131,947
11
Lehi, UT
Provo, UT
4.6%
61,130
12
Cedar Park, TX
Austin, TX
4.5%
68,918
13
Meridian, ID
Boise, ID
4.5%
58,627
14
Ankeny, IA
Des Moines, IA
4.5%
58,627
15
Fort Myers, FL
Fort Myers, FL
4.5%
77,146
Calculated between July 1, 2015, and July 1, 2016 (Populations of 50,000 or more in 2015). For methodology, please click here.
Are you currently living in one of America’s fastest-growing cities? Would you move to one of these cities for better apartments or job opportunities? Get discussing below on social!