The Hilton Honors American Express Card is the brand’s no-annual-fee (see rates and fees), entry-level product. Featuring 7 points per dollar on eligible Hilton purchases and complimentary Hilton Honors Silver status, the card is a solid option for new cardholders loyal to the hotel chain or those looking to avoid annual fees. However, other travel cards offer more points flexibility and bigger perks. Card rating*: ⭐⭐⭐
*Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
The Hilton Honors program covers over 7,000 hotels in more than 120 countries, providing plenty of chances to earn and redeem points.
If you’re a beginner looking for a credit card with some Hilton perks, you may want to look at the Hilton Honors American Express Card. It has no annual fee and comes with a nice welcome offer, generous category bonuses and travel and purchase protections, making it a great option for travelers looking to get started with Hilton Honors.
Here’s everything you need to decide if the card is right for your wallet.
Related: Choosing the best Hilton credit card for you
Hilton Honors Amex welcome offer
New applicants for the Amex Hilton Honors card can earn 70,000 Hilton Honors bonus points and a free night reward after spending $1,000 in purchases on the card in the first three months of card membership. Offer ends July 19.
TPG values Hilton points at 0.6 cents apiece, which means this bonus is worth $420 (excluding the free night), all for no annual fee and just a $1,000 spending threshold.
Earning points on the Hilton Honors Amex
With the Hilton Honors Amex, you’ll earn 7 Hilton Honors points per dollar on stays at Hilton hotels and resorts (including paying for your room and on-site spending at restaurants and spas), 5 points per dollar at U.S. restaurants (including takeout and delivery), 5 points per dollar at U.S. gas stations and U.S. supermarkets, and 3 points per dollar on other purchases.
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Given TPG values Hilton points at 0.6 cents apiece, you’ll earn a 1.8% return on daily purchases and 4.2% return at Hilton hotels — though you’ll get an extra 12 points per dollar from your Hilton Honors Silver elite status, bumping your return to 11.4%.
Related: Points of View: Which credit card should you use for Hilton stays?
If you’re looking for higher earning opportunities covering a wider swath of travel purchases, including flights and rental cars, you won’t get that with this card.
Redeeming points on the Hilton Honors Amex
You’ll get the best value for your Hilton points when using them for hotel and resort stays, even with the chain’s lack of published award charts. How many points you need for a hotel room fluctuates, so you won’t know the final price until you go to make a reservation. The Points Explorer tool can show you what other guests have paid recently.
You can also transfer your Hilton Honors points to over 40 global airline loyalty programs and Amtrak. However, unless you need to transfer Honors points to top off an airline account for a specific award, using them for this purpose isn’t a good idea. The transfer ratio is normally terrible, losing thousands of points.
Our advice? Stick to hotel room redemptions to get the best value for your rewards.
Related: 10 Hilton properties I can’t wait to redeem Hilton Honors points for
You’ll do even better when you redeem points for a stay of five nights or longer. That’s because you get a fifth night free on stays using points.
This hotel near Niagara Falls charges 29,000 points, but you’ll see in the image that the fifth night is free — resulting in a final price of 116,000 points for five nights.
To learn more about redeeming Hilton points (and doing so at a great value), read the following guides:
Hilton Honors Amex benefits
The Hilton Honors Amex features a few notable perks and benefits beyond the welcome bonus. Here’s an overview of what this card has to offer.
Elite status
The card comes with automatic Hilton Honors Silver elite status, which provides member discounts, a 20% points bonus on paid stays, no resort fees on award stays, a fifth night free on award stays and free bottled water. If you spend $20,000 on the card in a calendar year, you can upgrade to Hilton Honors Gold status, which TPG values at $1,220.
However, it’s worth pointing out that other Hilton credit cards offer Gold status automatically, meaning spending $20,000 to get there isn’t a good value.
Entertainment
Get exclusive access to ticket presales and cardmember-only events, along with Broadway shows, concert tours, sporting events and more through the American Express Experiences program.
Free shipping
ShopRunner gives you free two-day shipping on eligible items at a network of more than 100 online stores after signing up at shoprunner.com/americanexpress. Enrollment is required in advance.
Extended warranty
The card comes with an extended warranty that adds up to one year to an original manufacturer’s warranty of five years or less.
Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company.
Purchase protection
Purchase protection covers items accidentally damaged, stolen or lost if you paid for them with your card. This benefit covers purchases for up to 90 days and covers up to $1,000 per item — up to $50,000 per calendar year.
Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company.
Car rental loss and damage insurance
When you use the card to reserve and pay for a car rental and decline the rental company’s insurance, you’re covered against damage and theft — up to $50,000. This benefit is secondary coverage to your own auto insurance and doesn’t include liability.
Eligibility and benefit level varies by card. Not all vehicle types or rentals are covered, and geographic restrictions apply. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company. Coverage is offered through American Express Travel Related Services Company, Inc.
Dedicated help
The Global Assist Hotline helps with medical, legal, financial or other emergency services when traveling more than 100 miles from home.
Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details.Cardmembers are responsible for the costs charged by third-party service providers.
Which cards compete with the Hilton Honors Amex?
The Amex Hilton Honors card has natural competitors with “Hilton” in their names, but a general travel credit card also may do better in your wallet. Here are options you should consider.
If you like Hilton but want more perks: The Hilton Honors American Express Surpass® Card earns an improved 12 points per dollar at Hilton hotels, provides automatic Gold status, and you can earn a free night reward by spending $15,000 on purchases in a calendar year. You’ll also get 10 Priority Pass airport lounge visits per year, and the card has a low $95 annual fee (see rates and fees). For more information, read our full review of the Amex Hilton Surpass card.
If you want flexible rewards with no annual fee: The Amex EveryDay® Credit Card earns 2 American Express Membership Rewards points per dollar at U.S. supermarkets (up to $6,000 of purchases per year, then 1 point per dollar) and 1 point per dollar on other purchases. You can use these points with Hilton and over a dozen airline and hotel programs. You won’t get any benefits with Hilton but will have options with your points while still not paying an annual fee (see rates and fees). For more information, read our full review of the Amex EveryDay card.
If you want a hotel card without an annual fee, regardless of brand: The Marriott Bonvoy Bold Credit Card is an option if you want a hotel credit card without an annual fee and aren’t tied to Hilton. You’ll earn 3 points per dollar at Marriott Bonvoy properties, receive complimentary Silver Elite status (and 15 elite night credits to help you reach higher status levels with Marriott), plus other travel and shopping protections. For more information, read our full review of the Marriott Bonvoy Bold card.
The information for the Amex EveryDay card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
For additional options, see our list of the best hotel credit cards and American Express cards.
Related: The best no-annual-fee credit cards
Is the Hilton Honors Amex worth it?
You might assume the Amex Hilton card is worth it by default since it has no annual fee. It depends on what you’re looking for, though. If entry-level elite status, a good welcome bonus and fair earning categories are sufficient, you’ll like this card. If you’re looking for flexible rewards or more Hilton perks, go for one with an annual fee.
Bottom line
The Hilton Honors American Express Card is a good starter card for those looking to maximize the benefits of Hilton’s loyalty program without paying an annual fee — especially with the increased welcome bonus. It may not be the right card for everyone, though it may be the right card for you if that’s what you seek.
Apply here: Hilton Honors Amex with 70,000 Hilton Honors bonus points and a free night reward after you spend $1,000 in purchases on the card in the first three months of card membership.
Additional reporting by Ryan Wilcox, Stella Shon and Madison Blancaflor.
For rates and fees of the Hilton Honors Amex Card, click here. For rates and fees of the Hilton Honors Amex Surpass Card, click here.
Business-to-business, or B2B, marketing is used by businesses to promote their products and services to other businesses and organizations. Marketing efforts don’t directly target individual consumers, which is different from business-to-consumer, or B2C, marketing.
Relationship building is important in B2B marketing, and messaging is often built around facts and data that can demonstrate the cost and benefits of the product or service. However, your B2B marketing strategy can also include emotional messaging to engage the people who make purchasing decisions at the business or organization.
B2B marketing strategy
Having a strategy when marketing to other businesses can help you effectively promote your products and services and also stay within your marketing budget.
Establish goals and metrics
The first step in any marketing strategy is to define your goals. While increased sales may be the ultimate goal of your B2B marketing strategy, setting goals around brand awareness, lead generation, website traffic, buyer education and event participation can also contribute to increased revenue for your business.
After setting your goals, you’ll want to define the metrics that will be used to measure success. For example, if your goal is to increase website traffic, then you may choose to use a marketing tool such as Google Analytics to check your numbers on a weekly basis.
Define target audience
In B2B marketing, your target audience is composed of businesses and organizations that are likely to purchase your product and services. Ideally, your target audience has a problem and your business has a solution to offer. Researching the market is one way to learn more about your target audience. Attending industry events, subscribing to industry publications and joining related associations can also help you define potential customers who would be interested in what you’re selling.
Create materials for specific purposes
While your target audience is a business in B2B marketing, your marketing materials and messaging will be directed at people — those who have influence on what is purchased and/or the authority to make purchasing decisions. Based on your goals and target audience, you may need to create marketing materials for the following:
Content marketing
Content marketing materials can help you increase brand awareness, generate new leads and establish your business as a leader in the industry. Blog articles, newsletters, videos, webinars, podcasts, e-books, white papers, newsletters and other content can be made available on your website and also shared with your target audience through email and social media posts.
Email marketing
Email marketing can be used to deliver marketing messages to current customers as well as potential customers. For example, newsletter, promotional and announcement emails could be sent regularly to your existing customers, while lead-nurturing campaigns with information designed to educate buyers about your brand, products and services could be sent to potential customers.
Social media marketing
Educational content is what’s typically required for social media marketing efforts. Posts on LinkedIn, Facebook, YouTube, Twitter and other platforms allow you to share links to blogs, videos, e-books, presentations and other materials you’ve created for your content marketing efforts. Because LinkedIn is a professional network, a B2B business may want to prioritize its presence on the platform.
Sales team efforts
Both digital and printed brochures, proposals, fact sheets and other promotional materials may need to be created if you have a sales team that engages prospective customers over the phone, online, in person or at events. Also, presentations can be another helpful tool for your sales team in the marketing process.
Ads for trade publications
You may want to create digital or print ads to engage B2B buyers who read trade and industry publications. While mainstream publications typically have a broad audience, trade publications that provide industry news and trends can allow you to reach your specific target audience. Ad requirements will vary depending on the publication.
Monitor progress
Regularly monitoring the metrics for your marketing goals allows you to confirm that you’re on the right track and will also give you the opportunity to fine-tune your efforts. A marketing attribution model can help you determine how much each effort contributes to conversion and, therefore, which to prioritize.
For example, if you’re seeing success in the leads attributed to ads in trade publications, you may want to renew your contract with the publication or increase your ad spend. Or, if the response from your email marketing has been below goal, a review of your content and A/B testing may be necessary to improve engagement.
B2B marketing tips
The following tips may provide a boost to your B2B marketing efforts.
Coordinate campaigns
Coordinating your marketing campaigns — a series of messages with the same theme — on multiple platforms can reinforce your marketing message and broaden your reach to your target audience. For example, if you received an industry award that called out your warranty program, you could build content to share on multiple platforms: a social media post mentioning your award, a blog article discussing the importance of warranty programs, and an email series giving details about your warranty with a link to the blog.
Maintain a high-quality website
Your website is often the first impression a potential customer has of your business. If you want to be viewed as a legitimate, professional business, your website should reflect that. Well-written content and high-quality images that are consistent with your brand will build trust and credibility. And with so many people accessing content through their mobile devices, a mobile-first website design can help your business appear modern and relevant. E-commerce website builders can help simplify the process with pre-built templates and drag-and-drop tools.
Take advantage of SEO
A majority of the organic traffic to your website will come from searches on platforms such as Google, Bing and Yahoo. Search engine optimization, or SEO, can improve online visibility and assist in your B2B marketing efforts. In addition to having quality content on your website, you may be able to improve rank by including keywords that your target audience would use in searches, that are specific to your industry, and that are region- or location-specific, if appropriate.
Manage your business profiles on social media platforms
Business profiles on Google, Bing, Yelp and other platforms are a free way for your business to engage online customers. Depending on the platform, you may need to go through a process to “claim” your existing business profile and review it for accuracy, or create a business profile with all the necessary information. This will make it easier for your business to appear in searches. For example, claiming your profile on Google helps it appear in local searches and on Google Maps.
Tap on the profile icon to edit your financial details.
Nuclear fusion may well be the technology of the future.
Not a technology. For many engineers, if physicists can ever crack the secrets of fusion, it may be to the 21st century what coal was to the 19th and petroleum was to the 20th. This could become a new ubiquitous technology, a part of infrastructure found on every part of the globe.
For investors, there’s enormous potential here. If you’re looking to understand how the technology of the future can power your own retirement as well, read on.
For help building a balanced investment portfolio, consider working with a financial advisor.
Nuclear Fusion Basics
Nuclear fusion energy is the idea of generating electricity from combining two atoms to create a new one. When two atoms fuse, the resulting atom has slightly less mass than the sum of its parts. This is due to the weak nuclear force, a form of mass/energy which binds subatomic particles together into atoms. Each atom has its own binding energy, so when two atoms are combined into a single entity this leftover binding energy is released as lost mass from the resulting atom. That generates the heat of a fusion reaction.
Fusion is the corollary to fission, the other currently understood source of nuclear energy. With fission, you create a reaction that splits a large atom into two smaller atoms. With fusion, you create a reaction that joins two smaller atoms into a larger one. Fission is rarely found in nature at large scale, but fusion is the power source for stars.
As a power source, fusion has many benefits over fission.
First, fusion is far safer than fission. Once you start a fission reaction, you must actively control it or it can flash consume all of its fuel in an explosive event. The hydrogen that fuels a fusion reaction, on the other hand, can be added as its consumed, meaning that the entire reaction will cease if you simply stop adding fuel. After a reaction, fission leaves behind highly toxic radioactive waste that can even be weaponized in the wrong hands. Fusion leaves behind helium, an inert and harmless gas that the world could actually use more of.
Fission is powered by relatively rare and expensive enriched uranium. Fusion is powered by an isotope of hydrogen, the most common element in the universe.
To top it all off, fusion generates more power than any other known process. With an equivalent amount of fuel, a fusion reactor can generate four times as much electricity as the fission reactors that current nuclear power plants use. That same fusion reactor can generate 4 million times as much energy as a chemical plant powered by coal or oil.
Fusion’s Problem
The basis behind a fusion reaction is what’s known as “the bottle.” It’s not currently possible to wrap up even tiny stars in a physical reactor. Any solid material would vaporize right away. Instead, the fusion reaction takes place inside a high-energy plasma. That plasma, in turn, is contained by a series of powerful magnetic fields. These shaped magnetic fields are called “the bottle.” The bottle contains and directs the heat of the fusion reaction, making it safe and productive.
The problem is that, with current technology, it takes more energy to sustain the magnetic bottle than the fusion reaction produces. The hotter you burn the reactor, the more energy it takes to keep the reaction contained. The result is energy-negative.
That’s changing however. Advances in several different fields, from mathematics to superconductors, are making it steadily more efficient to generate the magnetic bottle that contains and sustains a fusion reaction, and in 2022 the Lawrence Livermore National Laboratory made a credible claim to have generated a positive-sum reaction.
Investing In Fusion Through Companies
Investing in fusion is not easy. Since this is a developing technology, any investment in this field is fundamentally speculative. There are no publicly traded companies that operate fusion reactors, because no commercial fusion reactors exist yet. You can’t have an industry around a product that only exists as a very convincing theory.
That said, this is still a billion-dollar industry, with around $4.8 billion invested as of 2022. While much of that work is being done by government and university labs, there are several dozen private startup companies that are trying to develop their own reactors. Firms like Helion Energy and Commonwealth Fusion Systems have generated hundreds of millions in investment capital. Unfortunately for individual investors, they remain private companies. If you are an accredited investor, you can look for shares that someone might be willing to sell. Otherwise, it’s not currently possible to buy into a fusion company directly.
Instead, you have two major options.
Invest In Investors
First, you can invest in publicly traded companies that have themselves invested in fusion companies.
This is a technology that promises to fundamentally change the energy economy from the ground up, and the big players aren’t sitting that out. Major technology companies like Alphabet (GOOG) and Amazon (AMZN) have invested in fusion research companies. Lesser-known, but still large, firms like Babcock International (BCKIF) and Cenovus Energy (CVE) have done the same.
These companies have a significant stake in the companies that are trying to develop fusion technology. If those underlying investments pay off, the benefits will extend upward.
Other sources on this subject also recommend investing in firms that can benefit from the results of fusion, namely vast and cheap energy. If you want to do this, we recommend simply investing in the S&P 500. The reality is that virtually every company will benefit from these productivity gains and cost reductions. There’s no good way to pick a clear winner or loser, because all companies rely on energy-intensive resources.
Invest In Energy Companies
However advanced, fusion is still fundamentally an investment in the energy sector. The result is that investors looking to get into this market can do so by taking a long-term position in the energy sector.
You can do this by investing in specific energy source companies like Chevron (CVX). You can also invest in utilities that run power plants, like Duke (DUK) or National Grid (NGG). Or, you can invest in energy-sector funds. These would include mutual funds or ETFs like the Vanguard Energy ETF (VDE) or Global X Renewable Energy Producers (RNRG).
This is a long-term investment. Researchers are confident that fusion will become a viable, long-term energy source, one likely to significantly outlive fossil fuels. It’s not here yet though and, once it arrives, it probably will take quite a while to really take off. This is a good investment for your retirement portfolio, but probably not for the swimming pool fund.
Investing In Fusion Through Materials
Side-investing in nuclear fusion is another potentially good strategy.
Fusion relies on a handful of specialized resources to build its reactors and sustain its burn. The fuel source for fusion will be a mix of hydrogen isotopes called deuterium and tritium, although current experimental reactors only use deuterium. For the science-curious:
Hydrogen atom – An atom with one proton and one electron
Deuterium – An atom with one proton, one neutron and one electron
Tritium – An atom with one proton, two neutrons and an electron
The heavier nuclei of deuterium and tritium make them easier to fuse and release more energy in the process. As an investor, you can seek out companies that produce deuterium gas (tritium is not yet produced in commercial quantities).
You can also seek out desalinization companies. Hydrogen isotopes are generally produced from water, by separating the molecule’s oxygen and hydrogen atoms from each other. To get enough water without wasting potable and agrarian supplies, producers will most likely rely on seawater production, which requires large scale desalinization.
Finally, you can seek out firms that make the components of a reactor itself. On this, we cannot offer specific advice because nobody knows what a working fusion reactor will be made of. Most likely, commercial fusion reactors will rely on superconducting materials to make the core of the electromagnets that contain the reaction. Companies that produce materials like mercury, titanium, niobium alloys, and next-generation ceramics are all good candidates as long-term suppliers for a fusion reactor’s core.
Bottom Line
Investing in fusion may be one of the most solid bets anybody can make on long-term investments in the future. You can do so by investing in companies that are trying to build their own reactors, by investing in the energy sector or by investing in the companies that will someday fuel these reactors.
Energy Investment Tips
Fusion is the big dream of next-generation energy. Before physicists crack that puzzle, though, there are many ways you can invest in next-generation energy right now.
A financial advisor can help you build an investment portfolio that includes fusion investments. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.
Mastering your checking account is a crucial piece of the personal finance puzzle. In the mix, there’s a tricky bit that often gets missed: the returned check. So, what’s a returned check, and why should you keep an eye out for it? Let’s dive in and break it down.
Defining a Returned Check
A returned check, often synonymous with a “bounced check“, is a check that has not been honored by a financial institution due to a variety of possible issues. Understanding the check clearance process is key to comprehending why checks might be returned.
When you write a check, you are essentially issuing a promise that your financial institution will pay the designated amount to the recipient’s account. If, for any reason, your financial institution refuses to fulfill this promise, the check “bounces” back to the issuer. This refusal often has more to do with the check writer’s account than the check recipient’s account.
Common Reasons Why Checks Are Returned
Understanding why checks are returned can help you avoid this inconvenient and potentially costly scenario. Here are some common causes:
Insufficient funds: A primary cause for returned checks is insufficient funds in the check writer’s account. If your checking account doesn’t have enough money in it to cover the check amount, your bank or credit union will likely return the check. While sometimes this might result from an honest mistake, such as forgetting to account for an automatic payment, it’s always best to double-check your account balance before writing a check.
Post-dated checks: If a check is cashed or deposited before the date written on it, your financial institution may decide not to honor it and return it instead. While this largely depends on your bank’s policies, it’s always safer to avoid issuing post-dated checks.
Stop payment order: A check can be returned if the check writer issues a stop payment order. Essentially, this order instructs the bank not to pay the check. While a stop payment fee might be incurred, this could be a useful step if you believe there might be a problem with the check.
Closed account: A check drawn on a closed bank account will always be returned. If the check writer’s account has been closed for any reason, no payments can be issued from that account.
Signature mismatch: Financial institutions verify the signature on the check with the one on file at the bank. A discrepancy here might lead to a returned check.
Frozen account: An account might be frozen due to legal issues, ongoing fraud investigations, or other such reasons. In such scenarios, the financial institution will not honor checks drawn on the account.
Invalid check details: Clerical errors like an incorrect account number, routing number, or check number could cause a check to be returned.
The Consequences of Having a Check Returned
Beyond the inconvenience and potential embarrassment of having a check returned, there are several serious consequences to consider:
Bank fees for the sender: If you write a check and there aren’t sufficient funds in your checking account to cover it, you’ll likely face a non-sufficient funds (NSF) fee or a returned check fee imposed by your financial institution. These charges vary but can often be substantial.
Bank fees for the recipient: The check recipient’s bank may also charge a bounced check fee if a check is returned. This can create friction between the recipient and the check writer and potentially jeopardize their relationship.
Impact on your credit score: A returned check can lead to a dip in your credit score if not resolved quickly. In some cases, the recipient may report the bad check to credit bureaus, which can negatively affect your creditworthiness.
Legal consequences: Continuous patterns of writing bad checks can potentially result in legal trouble, with laws varying from state to state. Depending on the amount of the check and the laws in your jurisdiction, it could be classified as a misdemeanor or a felony.
Dealing with a Returned Check as the Check Writer
If you’ve inadvertently bounced a check, you should take immediate steps to rectify the situation. The first thing to do is contact your bank or credit union to understand why the check was returned and discuss the fees you might owe, such as the NSF fee or stop payment fee. Your financial institution is a critical partner in resolving these issues, even if the bounced check was due to an honest mistake.
Next, reach out to the check recipient. Open and honest communication can help prevent misunderstanding and maintain trust. Arrange to pay the amount owed, which could involve writing a new check if you now have sufficient funds in your account, or exploring alternative payment methods if necessary.
Dealing with a Returned Check as the Check Recipient
On the receiving end of a bounced check, it’s essential to contact the check writer directly and inform them about the issue. They may not be aware of the situation, and a simple conversation might be all it takes to get the issue resolved.
However, if the check writer doesn’t cooperate or rectify the situation, there are legal measures you can take to recover your funds. Remember to account for any associated fees you might have incurred, like the bounced check fee.
How to Prevent Returned Checks
Having a check returned is a stressful situation that most people would prefer to avoid. By following these practical tips, you can minimize the chances of facing returned checks:
Maintain sufficient funds: Keep track of your account balance and ensure there are enough funds to cover any checks you write. This involves being aware of any pending transactions that may affect your account balance.
Regularly monitor your account: Stay updated with your checking account activity. Most banks and credit unions provide online and mobile banking services that can help you keep an eye on your account balance and transactions.
Use overdraft protection: Overdraft protection services can prevent bounced checks by automatically transferring funds from a linked account to cover the check amount. While there may be associated fees, they are often less than overdraft fees.
Consider alternative payment methods: Given the evolution of digital banking, there are numerous alternative payment methods you can use. These include online transfers, debit cards, and personal loans, all of which offer different benefits and levels of convenience.
The Pros and Cons of Writing Checks
In today’s fast-paced, digital world, it’s important to understand the pros and cons of writing checks. While checks can be convenient for large transactions, they carry risks such as potential returned check fees and the need to maintain a sufficient balance in your checking account at all times.
Compared to other forms of payments, such as debit cards, electronic transfers, or personal loans, checks require a more active role in personal finance management.
Bottom Line
Understanding the dynamics of a returned check and how to avoid them is crucial for sound personal finance. By ensuring there is enough money in your checking account, actively monitoring your account, and considering alternative payment methods, you can avoid the inconvenience and potential financial and legal troubles associated with returned checks.
Remember that while mistakes can happen, habitual bounced checks can lead to serious consequences. Stay proactive, keep an eye on your account balance, and consider overdraft protection or alternative payment methods. Your personal finance journey is sure to be smoother if you take these precautions.
Many people have dreams of living in a high-rise apartment in a bustling city, while others want a quiet life, unbothered by anything besides nature. But big city living and secluded country towns aren’t our only options. There’s a happy medium that’s quieter than the city, but more developed than the rural countryside — that’s where suburban neighborhoods come in.
The suburbs are often thought of as quiet, boring areas full of families with small children. While these areas are often filled with families, they aren’t always as uneventful and bland as you might think. Here’s what you should know about suburban neighborhoods and the life suburban residents live.
Suburban defined: What exactly is a suburb?
A suburban area is a cluster of properties, primarily residential, that are not densely compacted, yet located very near an urban area that is. Also referred to as “suburbs,” these areas are often located just outside of larger metro areas but can span even further, according to Pew Research Center.
Suburbs are not urban but still do not have any of the defining characteristics of a rural area like agriculture or open space. Suburban areas portrayed in popular culture often are familial and slow-paced.
The suburbs can suit everyone
Suburban areas are commonly associated with families, and not single people or young couples. However, this common association is really a misconception.
Especially with recent events leading to remote work environments, many young, single professionals are working from home. This has made living in a more mellow area in a spacious home more attractive since there’s room for a separate home office space —much more comfortable than working in a cramped, expensive apartment in the city.
Furthermore, as housing prices in urban areas skyrocket, younger folks are becoming unwilling or unable to pay rent. As a result, they’re moving out of the city and into more suburban areas.
What’s the difference between a suburban and an urban neighborhood?
It sometimes is difficult to distinguish what is a suburban neighborhood vs. an urban one or a rural area. In fact, depending on which definition you choose, the lines can blur. Suburban and urban neighborhoods differ in several key aspects.
Suburban neighborhoods are typically characterized by lower population density and a more spread-out layout. They often offer a quieter and more relaxed atmosphere with a focus on privacy and spaciousness. Suburbs tend to have more green spaces, parks and recreational areas.
On the other hand, urban neighborhoods are known for their high population density and compact living spaces. They offer a vibrant and bustling environment with close proximity to amenities, such as restaurants, theaters and museums.
Suburban neighborhoods
Suburban neighborhoods are typically located within a reasonable commute of an urban area. While they aren’t as densely populated as urban neighborhoods, they do have a fairly large population, although it’s more spread out over areas of single-family homes, rather than stacked-up apartment buildings.
Suburbs are primarily residential areas, although expect some commercial properties and businesses present. Housing is more affordable than in the main city centers and you’ll find larger homes with their own private yards, rather than smaller apartments or condos.
There aren’t as many amenities, such as restaurants or large shopping centers. However, there are grocery stores and usually a few restaurants and additional stores to provide for residents’ needs.
Urban neighborhoods
Urban neighborhoods are in the middle of all the action. They’re in the busy, downtown areas of a larger metro. With the location typically comes apartments and condos, rather than homes with their own yards.
Urban city centers are full of office buildings and commercial businesses. They also have lots of restaurants, shopping and entertainment options within close distance.
But being at the center of it all comes with a price — the cost of living is higher overall, with everything from rent to groceries costing more. Urban areas provide easy access to ample public transportation, which is almost necessary as owning a car is expensive since parking is often paid and spots often are far and few between.
Pros of living in a suburban neighborhood
Living in the suburbs has its benefits and many families choose to reside in such areas for various reasons.
Lower cost of living than in urban areas
Larger homes with bigger yards
Less crowded
Quieter and slower-paced environment
Many suburban areas cater to families specifically and will even have many parks and hiking trails surrounding them. Even if you don’t have a larger family with children, but you enjoy the outdoors or have a dog that likes to play outside, the suburbs better provide the amenities you’ll want.
Cons of living in a suburban neighborhood
While there are many pros to living in a suburban neighborhood, it does lack in some areas.
Less robust public transportation
A little uneventful at times
Fewer jobs available in the area (higher job competition)
Need to travel further for work and entertainment (restaurants, shopping, etc.)
With recent technology, some of these cons aren’t as applicable as they once were. Commuting to work is a major pain point for many living in the suburbs, but with so many companies becoming remote-first, it has eliminated that con for some.
Is suburban living right for you?
Living in the ‘burbs isn’t for everyone — but it is perfect for many folks who crave comfort and convenience. If you enjoy peace and quiet, want to live in a house instead of an apartment and don’t mind commuting to the office (which isn’t an issue if you work remotely), then a suburban neighborhood is a place for you. Find the right place for you today!
You’re in the market for a free checking account and you want the security that comes with a bigger, FDIC-insured bank. Where do you turn?
If you don’t care about bells or whistles or financial perks, the BMO Harris Smart AdvantageTM Account is a good place to begin. It’s about as simple as a checking account can get without sacrificing any of the basics.
What Is the BMO Harris Smart Advantage Account?
The BMO Harris Smart Advantage Checking Account is a free checking account from BMO Harris. It’s a simple account with no monthly maintenance fee, no ongoing minimum balance, a broad fee-free ATM network, and a sign-up bonus that’s better than most free checking accounts’.
This account has few value-added benefits or perks. For example, BMO doesn’t reimburse out-of-network ATM fees or waive overdraft fees for Smart Advantage account holders. But the account does have an excellent mobile app that basically eliminates the need to bank in-branch.
What Sets the BMO Harris Smart Advantage Checking Account Apart?
The BMO Harris Smart Advantage Checking Account has no truly unique features, but it does stand out for a few important reasons:
No monthly maintenance fee with electronic statements. As long as you opt into electronic statements, this account charges no monthly maintenance fee.
Above-average sign-up bonus for a free checking account. For a free checking account, Smart Advantage has an excellent sign-up bonus that’s worth $200 with qualifying direct deposits.
Big ATM network with no withdrawal fees. BMO Harris Bank has more than 40,000 ATMs in its fee-free network. But be forewarned that BMO doesn’t reimburse out-of-network ATM fees on this account.
Key Features of the BMO Harris Smart Advantage Checking Account
The BMO Harris Smart Advantage Checking Account is a basic checking account that stands out mostly for its generous sign-up bonus and no monthly maintenance fee.
Sign-up Bonus
Open a new BMO Harris Smart Advantage Account by July 14, 2023, and get a $200 cash bonus when you receive a total of at least $4,000 in qualifying direct deposits within the first 90 days your account is open.
Minimum Deposit and Balance
The minimum deposit to open a BMO Harris Smart Advantage Checking Account is $25. There’s no ongoing minimum balance once your account is open.
ATM Network
BMO Harris is part of the Allpoint ATM network, which means it has more than 40,000 fee-free ATMs across the United States. That includes many areas where BMO Harris doesn’t have branches.
However, Smart Advantage doesn’t reimburse out-of-network ATM fees, so avoid those to avoid surcharges.
Possible Account Fees
This account has no monthly maintenance fee when you opt into paper statements. Otherwise, your monthly fee is $3.
Other possible fees include:
A $3 out-of-network ATM fee
A $15 fee per overdraft unless you opt into Overdraft Protection, which may involve interest charges
A $3 fee per check image if you’re not enrolled in paperless statements
Mobile Features
BMO Harris has a comprehensive, user-friendly mobile app that supports:
Free mobile check deposit
Person-to-person Zelle transfers with no BMO user fees (though other fees may apply)
Budgeting and expense-tracking tools
One-dashboard view of all your BMO bank and credit card accounts
Advantages
BMO Harris Smart Advantage has no monthly maintenance fees, a generous sign-up bonus, and an unusually large fee-free ATM network.
No monthly maintenance fee with paper statements. BMO Harris Smart Advantage charges no monthly fee (or any other type of maintenance fee) as long as you opt into paper statements. Otherwise, the paper statement fee is $3 unless you meet certain other qualifying criteria.
$200 sign-up bonus with qualifying direct deposits. By the standards of the no-maintenance-fee checking space, BMO Harris Smart Advantage has an above-average sign-up bonus. The direct deposit requirement is manageable for many would-be account holders too.
More than 40,000 fee-free ATMs. BMO Harris Bank has a big fee-free ATM network that includes many more than just BMO-branded machines. This is a big advantage over banks with smaller or proprietary ATM networks, including big ones like Chase Bank.
Disadvantages
BMO Harris Smart Advantage’s downsides revolve around what it lacks: relationship benefits, out-of-network ATM rebates, ongoing bonuses for account holders, and interest on balances.
No relationship benefits. BMO Harris Smart Advantage is an entry-level checking account with no relationship benefits for account holders. By contrast, the BMO Harris Premier Account offers quarterly bonuses on credit card spending and discounts on loans originated with BMO. If you can afford that account’s maintenance fee or meet the waiver requirements, it’s a more rewarding option.
No out-of-network ATM rebates. BMO Harris Smart Advantage doesn’t reimburse out-of-network ATM surcharges. This is a disadvantage relative to BMO Harris Premier, which does, and other more generous checking accounts too.
No ongoing bonuses. Unlike the more generous BMO Harris Premier Account, Smart Advantage has no ongoing bonuses for account holders. The sign-up bonus is all you get.
No interest on balances. This account earns no interest on balances. That’s a disadvantage relative to the growing number of high-interest checking accounts on the market, a list that includes some accounts with no maintenance fees.
How the BMO Harris Smart Advantage Checking Account Stacks Up
If you’re just looking for a basic free checking account, BMO Harris Smart Advantage is perfect for you. If you’re looking for something more generous, it’s not — but the BMO Harris Premier Account could be.
BMO Harris Smart Advantage
BMO Harris Premier
Monthly Maintenance Fee
$0
$25, but can be waived
Waiver Requirements
None needed
Yes, required $10,000+ balance
ATM Fee Reimbursement
None
Up to $25 per month
Credit Card Benefits
None
Up to $75 in quarterly spending bonuses
Mortgage Benefits
None
Closing cost and interest rate discounts
Interest on Balances
None
0.01% APY
Final Word
The BMO Harris Smart AdvantageTM Account is a no-frills free checking account that’s ideal if you’re not looking for anything fancy. With only a token minimum opening deposit and no ongoing minimum balance, it’s a good starter bank account that you can easily grow into (and hopefully, eventually, grow out of). The above-average sign-up bonus and robust mobile app are nice too.
However, if you expect more from your checking account, Smart Advantage probably won’t cut it. Unlike the BMO Harris Premier Account, it offers no discounts for BMO borrowers, no bonuses on credit card spending, and no out-of-network ATM fee reimbursements. It’s your money — choose wisely.
The Verdict
Our rating
BMO Harris Smart Advantage™ Account
The BMO Harris Smart Advantage Checking Account is a solid first “adult” bank account and a fine choice for anyone else who doesn’t mind a bare-bones product. If you’re looking for more generous perks and rewards, you’re better off paying (or finding a way to waive) the monthly maintenance fee on a higher-end account.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Inside: Do you need to make $5000 fast for ways to make extra money? This guide has dozens of ideas for earning money. When you need to know how to make 5000 fast, this list has something for you.
Are you looking for ways to make 5000 dollars fast?
You’re in the right place.
In this post, we’ll share 15 realistic ways to make money quickly.
Your first thought might be SCAM to make this much money fast, but honestly, there are plenty of ways to make extra cash without any special skills or experience.
You just have to decide what works best for you. That is how you will make the most money without feeling like you are working.
I love hustling to make extra money to afford things we couldn’t otherwise.
So if you’re ready to start making some extra cash, let’s get started!
What are the most realistic ways to make $5,000 fast?
Moreover, making $5,000 fast is possible through a combination of online and offline methods.
Selling items, offering freelance work, participating in paid surveys, trading stocks, and pet-sitting or dog-walking services are all viable options.
Set goals, track progress, and experiment with multiple gigs to find what works best for you. With dedication, effort, and a little bit of creativity, you can reach your income goal in no time.
How to double $5,000 quickly?
If you want to double $5,000 quickly, there are several realistic ways to achieve this goal. Here are five options to consider:
Invest in the stock market: The stock market can be a great way to make money quickly, but it also comes with risks. Look for companies with a strong track record and invest wisely.
Start a side hustle: Starting a side business or selling items online can be a great way to make extra money. Consider your skills and interests to find a profitable niche.
Participate in affiliate marketing: Affiliate marketing involves promoting products and earning a commission for each sale. Look for products with high commissions and a strong customer base.
Flip items for profit: Buy low and sell high by flipping items like cars, furniture, or electronics. This can be a risky business, so do your research and start small.
Play the long game: Consider living a frugal life and saving and investing your money over time to see a larger return. This may not double your money quickly, but it can lead to significant growth in the long run.
Each method comes with its own potential risks and benefits, so it’s important to do your research and choose the option that best fits your skills and financial goals.
With dedication and hard work, doubling your $5,000 is within reach.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
Check out this free workshop!
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
16 realistic ways to make 5000 dollars fast
If you’ve been looking for ways to make some extra money, there are many opportunities out there.
While most won’t make you rich overnight, if you put in the effort, you can find some that will help you reach your financial goals.
Here are 16 realistic ways to make $5,000 fast.
1. Sell Unwanted Items
If you’re looking to make $5000 fast, selling unwanted items is a great way to do it.
Start by identifying valuable items in your home such as antiques, electronics, furniture, or musical instruments.
Once you’ve identified your items, choose a platform to sell on eBay, Craigslist, and Facebook Marketplace are all great options.
When pricing your items, do some research to ensure you’re pricing them competitively. Use the “buy it now” feature on eBay or set a fair price on Craigslist and Facebook Marketplace. Don’t forget to take clear photos and provide detailed descriptions of your items.
Check out the most popular items to sell and make money. Plus you can declutter your home.
2. Take on a Part-Time Job
Part-time jobs offer a steady stream of income and opportunities for skill development. Often this is an overlooked way to make money, but there are plenty of part-time jobs available.
Popular part-time job options include retail or food service positions, which often offer the potential for tips or commission-based earnings.
Balancing a part-time job with other commitments may be challenging, but it can be done with proper planning and prioritization. Overall, a part-time job can be a reliable way to generate extra income and reach financial goals.
Many happen to be early morning jobs, too.
3. Invest in Stocks
Investing in stocks can be a realistic way to make $5000 fast. In fact, learn how fast you can make money with stocks.
Since you are interested in making money fast, you need to be an active trader, which means you are trading for income. Not a buy-and-hold investor.
Typically, most active traders prefer to trade growth stocks such as Google, Microsoft, Amazon, Apple, or Tesla.
It’s important to do your research and choose the right stocks to invest in. More importantly, you have to know when to enter and exit. Here is the best course I know on learning how to trade stocks.
However, keep in mind that investing in stocks is subject to market risk, so it’s important to consult with a personal finance expert and assess your risk tolerance before making any investments.
4. Borrow Money
Remember that borrowing money should not be a long-term solution and explore other ways to make money as well.
If you need to make $5000 fast, borrowing money might be an option. You can borrow from a personal loan, credit card, or friends and family.
Personal loans are a good option if you have good credit, but they often come with high-interest rates.
Credit cards can offer cash advances, but the interest rates can be high too.
Borrowing from friends or family can be a good option, but it can also put a strain on relationships.
To secure the best possible terms, shop around for loans and compare interest rates and fees. Make sure to read and understand the terms and conditions before signing, and ensure you can make the payments on time.
5. Sell Things Online
Selling things online is a great way to make extra cash quickly. This involves buying items you know you can resell online for a higher price.
With the ability to reach a wider audience and the convenience of not having to leave your house, selling online has become increasingly popular.
Platforms like eBay, Etsy, and Amazon offer product-selling concepts that make it easy to sell a variety of items, from clothes to electronics.
To optimize product listings, take high-quality photos, write detailed descriptions, and price items competitively. When handling shipping and handling, use free shipping labels, and provide excellent customer service to ensure a positive experience for buyers.
6. Land a Job That You Can Do From Home
To land a job that you can do from home, it’s important to have the necessary skills and qualifications for the job you’re interested in.
Popular work-from-home jobs include online tutoring, virtual assistance, bookkeeping, social media management, and transcription.
Be prepared to participate in virtual interviews and demonstrate your ability to work independently. With the right skills and job search strategies, you can land a job that you can do from home.
Find the best non phone work from home jobs.
7. Make Crafts
Crafts can be a fun way to turn your hobby into a money-making side hustle.
Here’s a step-by-step guide to help you get started:
Choose your craft: Decide on a craft that you enjoy making and that you think will sell well. Popular options include jewelry, candles, and home decor.
Gather your materials: Depending on your craft, you’ll need to gather materials such as beads, wax, or fabric. You can find these at craft stores or online.
Develop your skills: If you’re new to your chosen craft, take some time to practice and improve your skills. Watch tutorials and read books to learn new techniques.
Create your products: Once you have your materials and skills, start creating your products. Make sure they’re high-quality and visually appealing.
Set up shop: You can sell your crafts online through platforms like Etsy or Amazon Handmade. You can also sell them in person at craft fairs or local markets.
Promote your products: Use social media and word of mouth to promote your products. Share photos and information about your crafts and encourage people to buy them.
By following these steps, you can turn your love of crafting into a profitable side hustle. Remember to be patient and persistent in your efforts to sell your crafts.
8. Rent Out a Space
Right now, your space can be a profitable side hustle.
To make $5000 fast by renting out a space, start by identifying the type of space you can rent out, such as a parking room, garage, or storage space.
You can even get creative and rent out your pool.
Clean and organize the space, then list it on online platforms like Airbnb, Turo, or Neighbor. To ensure a smooth rental process, screen potential renters, set clear rules and expectations, and maintain regular communication.
With some effort and attention to detail, renting out a space can provide a lucrative source of extra income.
9. Sell Digital Goods
This is one of the most popular ways to make money.
Digital goods are products that can be downloaded, streamed, or accessed online, such as ebooks, printables, stock photos, and online courses.
They are a viable option for making money quickly because they require little to no overhead costs and can be sold to a global audience.
The most popular is creating and selling printables. Learn how to make printables.
With dedication and effort, selling digital goods can be a lucrative way to make up to $5000 fast.
10. Join the Gig Economy
The gig economy refers to a labor market characterized by short-term contracts or freelance work, as opposed to permanent jobs.
Popular platforms in the gig economy include:
Joining the gig economy can be an effective way to make $5,000 quickly. One of the main benefits of working in the gig economy is flexibility, as you can determine your own schedules.
To maximize earnings, it’s important to treat gig work like a business and stay organized, tracking expenses and income.
11. Work as a Shopper
As a shopper, your job is to pick up and deliver items to customers using your own vehicle.
Here’s a step-by-step guide on how to get started:
Choose a platform: There are several platforms to choose from, such as Instacart, Shipt, and DoorDash. Research each platform and choose the one that best suits your needs.
Sign up: Once you’ve chosen a platform, sign up and complete the application process. This typically involves providing personal information, a valid driver’s license, and passing a background check.
Attend orientation: Some platforms require you to attend an orientation session before you can start working. This will provide you with important information on how to use the app, how to pick up and deliver items, and how to maximize your earnings.
Start shopping: Once you’re approved, log into the app and start accepting orders. Be sure to read the instructions carefully and communicate with the customer if you have any questions.
Maximize earnings: To maximize your earnings, consider working during peak hours when there are more orders available. You can also increase your tips by providing excellent customer service and communicating with customers throughout the shopping process. Additionally, some platforms offer bonuses for completing a certain number of orders within a specified time frame.
Ensure success: To ensure success, it’s important to be organized and efficient. Plan your route ahead of time and try to group orders in the same area together. Keep track of your expenses, such as gas and vehicle maintenance, and make sure you’re earning enough to cover these costs.
With the convenience of on-demand shopping and delivery services, there’s never been a better time to get started.
12. Clean Houses
Cleaning houses can be a lucrative business, with the demand for house cleaning services always high.
To get started, you will need basic cleaning supplies such as cleaning products, mops, vacuums, and cleaning cloths. You can market your services by creating flyers, promoting on social media, and offering referral discounts.
Here are some tips to be successful:
Setting your rates depends on factors such as the size of the house and the frequency of cleaning.
Negotiating with clients can help you secure long-term contracts.
Providing excellent customer service is crucial for building a loyal client base.
As your business grows, consider expanding your services to include laundry and organizing, and hiring additional staff to take on more clients.
With dedication and hard work, you can make up to $5000 fast by cleaning houses.
13. Take Photos
If you’re looking for a side hustle that can earn you some extra cash, taking photos on your phone and selling them on stock photo sites is a great option. You don’t need to be a professional photographer, but having some experience can be helpful.
Some of the best apps to sell your photos on include Shutterstock, Deposit Photos, or iStock by Getty Images.
To get started, you’ll need to create a portfolio of your best work and start submitting them to stock photo sites. While you might need to purchase a camera and photo editing software, there’s not much else you need to get started.
It’s possible to make $1 or more per photo you sell.
14. Write Web Content for a Blog
Well-written web content is essential for making money online, as it can attract more visitors to your blog and keep them engaged.
To write effective web content, it’s important to understand your audience and their needs and to use clear and concise language.
Make sure to use headings, bullet points, and images to break up text and make it easier to read. Additionally, provide actionable advice that can help readers make money or solve a problem.
Sharing your personal experiences and stories can also help to connect with your audience and build trust. By following these tips, you can create high-quality web content that can help you make money and increase website traffic.
15. Engage in Affiliate Marketing
Affiliate marketing is promoting someone else’s product or service and receiving a commission for every sale you facilitate.
To be successful with affiliate marketing, start by finding products with high commissions and you will need a large number of followers.
Build an audience around the products you’re promoting and promote them through social media and email marketing. Focus on building a strong relationship with your audience and providing value through helpful content.
With the right strategy and persistence, you can earn your first $5000 through affiliate marketing in no time.
16. Provide Virtual Assistant Services
Virtual assistant jobs are becoming increasingly popular as a way to make money from the comfort of your own home.
As a virtual assistant, you can perform a variety of tasks such as scheduling appointments, managing social media accounts, answering emails, creating presentations, and more. The amount of money you can make will vary depending on your skills, but the average hourly rate for a virtual assistant is around $25 per hour.
Additionally, taking virtual assistant courses and learning new skills can help you specialize and earn more money.
How to use what you’ve learned to start making money quickly
Believe me, I have gone down the road of making money with MLMs or (multi-level-marketing). However, I have found the above ways to be better options for me.
Once you find your groove, you will be able to scale up how much money you make.
Step 1: Research ways to make money fast
If you need to make money quickly, there are many legitimate opportunities available.
Try multiple gigs to find what pays the most in your area and what you enjoy doing.
When researching ways to make money fast, be cautious of scams and do your due diligence before committing to anything. With a bit of creativity and determination, you can find practical and actionable steps to achieve your financial goals.
Step 2: Choose a way to make money fast
When choosing the best way to make $5000 fast, there are a few criteria to consider.
First, consider your skills and interests. If you enjoy driving, delivering for DoorDash or UberEats could be a good fit. If you’re tech-savvy, freelance work or online tutoring might be a good option.
Second, consider the time commitment. Some methods, like selling items on eBay or Facebook Marketplace, can be done in your spare time, while others, like starting a side hustle or taking on freelance work, may require more time and effort.
Finally, consider the potential earnings. Some methods, day trading stocks or selling printables, have the potential for higher earnings than others.
Step 3: Get started making money fast
If you’re looking to make money fast, it’s important to take action right away and not get bogged down by analysis paralysis.
Start with the methods that require the least amount of time and effort, such as selling items you no longer need or completing online surveys. These are easy-to-implement money-making strategies that can quickly generate extra cash.
If you need to save up for a course, then set aside your profits to make that happen.
Step 4: Sacrifice your time for money
Sacrificing your time can be a great way to make money quickly.
The best is when you start to build passive income, you are earning money without the need to work. That is when your hard work will pay off.
By dedicating your time to side hustles, you can earn a significant amount of money within a short period.
Step 5: Maximize your revenue with each step
To make $5000 fast, it’s essential to set realistic revenue goals and identify the most profitable revenue streams.
Prioritize the revenue streams that are most feasible and have the highest earning potential. Once you have identified your revenue streams, optimize your earnings by leveraging your skills and resources.
This could include networking, outsourcing, or investing in your own education to improve your earning potential.
FAQ
Flipping items on eBay is a great way to make money.
To start, you need to find items that you can buy for a low price and sell for a higher price. Look for items that are in demand, such as electronics, clothing, and collectibles. You can find these items at flea markets, garage sales, and online marketplaces like Craigslist and Facebook Marketplace.
Remember to reinvest your profits into buying more items to flip. With time and effort, flipping items on eBay can be a lucrative side hustle.
Becoming a content creator on YouTube might be an option for you.
You can make money from ads, affiliates, and sponsored content, as well as selling your own merch and products.
It is important to create consistent and top-quality videos to build up a following, but it can be a lucrative online side hustle.
freelance work, and more. Here are some of the most popular options:
Freelance work: Graphic design, web development, digital marketing, typing, and more.
Food delivery: DoorDash, Instacart, Uber Eats, Grubhub, and more.
Package delivery: Amazon Flex, Roadie, GoShare, Lugg, and more.
Rideshare driving: Lyft, Uber, and more.
While these jobs offer flexibility and quick payment, they may come with fees and additional costs. Nevertheless, they are great options for making extra income on the side.
There are plenty of job opportunities in the gig economy, ranging from food delivery to How to make $5,000 in a month?
There are several realistic and actionable ways to make $5,000 in a month.
Freelance jobs like virtual assistance, freelance writing, and web development are great options. If you have an established following, your YouTube channel could also make more than $5,000. Other methods to explore are selling on Amazon, affiliate marketing, and blogging.
While some methods may require more work than others, there’s no reason you can’t earn this money quickly.
Remember to think outside the box and explore all of your options.
How to Get 5000 Dollars Fast
Remember that making money fast requires dedication and persistence, but the rewards can be significant.
The potential earnings and time commitment for each option vary, but with effort and dedication, you can make $5000 within a couple of months.
Selling items can earn you a few hundred to a few thousand dollars, while freelance work and trading stocks can earn you thousands of dollars depending on the quality of your work.
Don’t be afraid to try new things and experiment with different methods until you find what works best for you.
Also, consider what works well for one person may not be the best idea for the next.
Maybe earning 5k is more than you need:
Know someone else that needs this, too? Then, please share!!
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.
This week’s episode starts with a round of Money Hot Takes.
Then we pivot to this week’s money question from Sean:
“Hey folks,
Huge fan of the podcast. I have been listening for years, but this is, I think, the first time I’m submitting a question and it’s a complicated one.
I currently work as an engineer for a municipal utility. As an engineer, I have some ability for job mobility. While I do like my job, I have thought about what it would take to draw me away from my job, and I have had trouble figuring out what a ‘godfather offer’ would need to be.
As a civil servant, I have great healthcare, a pension, job security and overtime if I work beyond my scheduled 40-hour workweek. In the private sector, I have more income potential, but I would lose a lot of these benefits and end up working a lot more hours. I’ve had some trouble figuring out how to evaluate some of these benefits, particularly the pension.
Thank you,
Check out this episode on either of these platforms:
Episode transcript
Sean Pyles: Hey, Liz, if you had a job that offered you a pension, would you still leave just because you were bored?
Liz Weston: Well, pensions are sweet, but I do like being challenged, so maybe.
Sean Pyles: All right, I’m going to say I wanted a yes or no answer, but I think that that’s OK. I just hope that you would at least stick around until you’re fully vested.
Liz Weston: Well, of course.
Sean Pyles: Yes. But in this episode, we answer a listener’s question who’s considering bailing on a pension.
Welcome to the NerdWallet 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.
Liz Weston: And I’m Liz Weston. Listeners, remember to send us your money questions. Maybe you’re wondering if now is a good time to buy up a bunch of gold or you’re wondering how far in advance you should book an international vacation. Whatever your questions, send it our way. Leave us a voicemail or text us on the Nerd hotline at 901-730-6373; that’s 901-730-N-E-R-D. You can also email us at [email protected]
Sean Pyles: In this episode, our co-host Sara Rathner and I answer a listener’s question about how to leave a job. But first, Liz and I are going to get mad because it’s time for another round of Money Hot Takes. This is our occasional segment where we rail against something that we just don’t like in the personal finance space. The goal is for us personally to blow off a little bit of steam and hopefully help our listeners make smarter decisions in a world full of scammers, fraudsters and phonies or sometimes just plain old misconceptions that can cost you money.
Liz Weston: Oh, I love this. This is going to be fun. OK, Sean, what do you have for us?
Sean Pyles: Today, I’m calling out the online, quote, unquote, “courses” that some influencers peddle to their followers. A lot of these classes aren’t providing you any information that you can’t get on your own for free, and the folks teaching them are often, shall we say, not exactly qualified. And a shoutout to Rebecca Jennings from Vox who wrote an article that so well articulates my feelings and concerns around these courses. We’ll have a link to that article in the show notes.
Liz Weston: So what’s in these courses, Sean?
Sean Pyles: Kind of everything that you can imagine you might want to improve upon. There are classes in things like how to use Excel. There are classes in how to get started investing or budgeting. There are even classes on how to make your own class to sell to people, which is a little meta.
Liz Weston: Of course, of course.
Sean Pyles: And the prices vary greatly. Some are under a hundred dollars; others are over a thousand dollars, maybe $2,000.
Liz Weston: Ooh, well, I think I know the answer to this question, but tell us why you don’t like them.
Sean Pyles: Well, as I mentioned at the outset, a lot of people are paying for information that they can get elsewhere for free. And again, many of these people have very questionable credentials. Sometimes the people who are teaching these classes are not actually experienced or qualified in what they’re telling you to do. And in fact, they’re just really good at marketing themselves, which I always have an issue with. People who seem just overly into marketing their own personality for the sake of getting money and attention on the internet.
Liz Weston: Yeah. And I imagine that could cause people not to go to good sources to get their information or leave them with a patchwork of incomplete information.
Sean Pyles: Exactly. They think that they’re getting everything they need to know about how to get started investing from one online class when in fact it might just be a small piece of the picture. Also, they can seem a little scammy to me. This is especially the case with classes around investing. Some will teach you how to invest and then maybe try to get you set up with investing during the class, and they’ll get you set up through a platform that also pays the influencer and affiliate commission, which seems like quite the conflict of interest there. And also, never mind the platform the influencer is peddling might not be the right one for you. So this person is getting money from you signing up for their class, and they’re also getting money from the company that they’re pushing on you as well, which I just don’t like.
Liz Weston: Now, I will say I like online courses in some cases because they help me get up to date or catch up on something I should have learned earlier, like Excel. The Excel courses were very helpful, but they’re not all bad. So how do you determine which are the better ones?
Sean Pyles: I’m with you, Liz. I am not an absolutist. In pretty much anything, there are plenty of great online classes. I’m a huge fan of Masterclass, for example. Not paid to say that; I just use their stuff a lot, but they are very well vetted. I think it’s important to vet your sources and to be selective about the type of information that you’re getting. Maybe a language course from someone who lives abroad and has learned a different language is something that you can more easily get into versus a class that’s about the secret to getting rich. Also, maybe don’t have this online course be the only source of information on the subject.
Liz Weston: Yes, maybe you could even come to a site, I don’t know, NerdWallet.
Sean Pyles: Yeah, we are a great alternative. And you know what? I think some folks might be thinking, “Hey, how is NerdWallet different from these online personal finance influencers or courses?” And to that, I have two words to say: journalistic rigor. Our content is deeply reported, edited, fact-checked, not to mention editorially independent, to ensure that the information that we’re giving is as accurate and consumer-first as possible.
Liz Weston: And if you need more personalized help with your money, there are plenty of professionals who can help you. Financial coaches can help you get a grip on your budget and financial goals. Accredited financial counselors can offer tools to wrangle your debt, and fee-only fiduciary financial planners are a solid choice if you need guidance on building your wealth.
Sean Pyles: Very well said, Liz. So that is my rant, and Liz, now you’re up.
Liz Weston: OK. This is really nerdy, Sean, but I am annoyed that people don’t understand how life expectancy works.
Sean Pyles: OK, you’re right. That is really nerdy. I’m going to need you to elaborate on what that even means and why it’s making you so mad.
Liz Weston: OK. This is important because understanding life expectancy is key to so many things about retirement planning, which is basically how long your retirement will last, right? So you need to know roughly your life expectancy so you can figure out when to take Social Security, and it probably can help you better understand all the debates about raising the retirement age. Remember when I was in Paris and they were setting fire to the garbage over there?
Sean Pyles: Yes.
Liz Weston: Yeah, that’s this debate. So I just read a New York Times article about the best age to retire, and it used the wrong number. It said the average life expectancy was 76 years.
Sean Pyles: OK, so you’re out here dragging the Gray Lady for being wrong, is that right?
Liz Weston: Sorry, hats off to The New York Times, lots of great reporting, but that’s the average U.S. life expectancy from birth. That factors in infant mortality and all the people who die young or young-ish from accidents or disease or whatever. That number is 76, by the way, because largely of all the COVID deaths, which is the reason that life expectancy has dropped a bit. But that number is pretty much irrelevant for retirement planning because the longer you survive, the longer you’re likely to survive. What matters is how much life you’re likely to have left when you get to retirement age. And at 62, which is the earliest age you can claim Social Security, the average man can expect to live until almost 81 and the average woman till 84. If you make it to 65, both men and women are likely to make it to their mid-80s. Now, your mileage may vary. Obviously, lifestyle, genetics, other factors come into play. Unfortunately, Black people tend to have shorter life expectancies. But the more income and education you have, the more years you can probably add to your life expectancy.
Sean Pyles: And I imagine this really matters when it comes to claiming Social Security.
Liz Weston: Oh, it’s so true. If you file early at 62, you are settling for a permanently reduced check. You’re giving up a lot of money because you’re likely to live well past the age when the larger checks that you would’ve gotten for waiting more than make up for the smaller checks you bypassed in the meantime. We talked to Nerd Tina Orem, and her calculator can show you your break-even age. And what’s more, if you’re the higher earner in a married couple, you’ve really done your spouse a disservice if you file early. And that’s because your benefit determines what your spouse gets to live on after you’re gone. So starting early means you’ve permanently reduced the survivor check that your spouse will have to live on for the rest of their lives.
Sean Pyles: Got it. OK. And that’s especially important for men to think about because women tend to outlive men.
Liz Weston: Yeah. And if you are a same-sex couple, again, it’s the higher earner that matters. So it’s something to keep in mind. The higher earner should delay as long as possible. And also, it can really help to use a calculator to estimate your own life expectancy. And there’s a really good one at livingto100.com.
Sean Pyles: Well, I think that we both feel a little bit better getting that out of our system. I don’t know about you, Liz.
Liz Weston: Yes, thank you. I do.
Sean Pyles: Great. Now let’s get on to this episode’s money question segment with co-host Sara Rathner.
Sara Rathner: This episode’s money question comes from the excellently named Sean, who sent us an email. “Hey folks, huge fan of the podcast.” Thank you. “I’ve been listening for years, but this is, I think, the first time I’m submitting a question and it’s a complicated one. I currently work as an engineer for a municipal utility. As an engineer, I have some ability for job mobility. While I do like my job, I have thought about what it would take to draw me away from my job. And I’ve had trouble figuring out what a, quote, unquote, ‘Godfather offer’ would need to be. As a civil servant, I have great healthcare, a pension, job security, and overtime if I work beyond my scheduled 40-hour work week. In the private sector, I have more income potential but I would lose a lot of these benefits and end up working a lot more hours. I’ve had some trouble figuring out how to evaluate some of these benefits, particularly the pension. Thank you, Sean.”
To help us answer Sean’s question, on this episode we’re joined by NerdWallet data writer Liz Renter. Welcome back to Smart Money, Liz.
Liz Renter: Thanks, Sara. I’m excited to be here.
Sean Pyles: So first, I think folks should understand the total value of work benefits because it extends well beyond the cash that you get. According to March 2023 data from the Bureau of Labor Statistics, for government workers, benefits represent about 38% of compensation, compared with just under 30% for private-sector workers. As our listener knows, the benefits of government jobs are pretty cushy, and that can be really hard to give up.
Sara Rathner: That 30% to 38% figure might come as a surprise to you because I think when people are evaluating a job opportunity, there’s so much of a focus on the salary and maybe a bonus if that’s part of the deal. But if you’re thinking of leaving your current job, it is worth it to work to understand your total compensation, not just wages, but benefits as well. So listing out your benefits, like paid time off, access to resources like financial advisors or even discounted legal assistance, maybe some cold brew coffee on tap in the office kitchen.
Each of these has a specific value, but it can be pretty tedious to add it all up. Another big thing to think about are taxes. This is a bigger deal if you’re thinking of becoming a freelancer or a contract worker where you’d be on the hook for sorting out your own tax obligation. Based on what you figure out, you might decide whether or not you want to go down the freelancer or contractor route at all, or would you prefer to be a full-time employee at a company? Another big one, this is a really big one: health care.
Liz Renter: Huge.
Sara Rathner: Huge and so expensive. Definitely contact HR during the interview process, or when you have the offer and you have some time to think it over, to get the health care plan options and their pricing.
Liz Renter: Yeah. And I just want to interject, Sara, that’s a good point. If you’re talking to a potential employer or even your current employer about what the health care costs look like, how much they’re covering, keep in mind that employers get a heck of a discount on premiums. They get a group discount because they’re paying for multiple policies at once or helping to pay for multiple policies at once. So if self-employment is under consideration or a job that may not offer health insurance at all, your premiums are going to be much, much higher than what your employer would be paying in the situation where they’re helping to cover those costs.
Sara Rathner: Yes. And I have been in both boats and …
Liz Renter: Same.
Sara Rathner: … real expensive to be self-employed when it comes to health insurance coverage. And that was one of my reasons for not pursuing that for the remainder of my career if I can help it. But you know, you do you. And then also, here’s another one. There are all these extra benefits that really add up. Things like a monthly gym stipend or a cell phone stipend. A lot of remote workers get a home internet stipend as well. And the cost of these things can really offset the price of some of the things you might have been paying for out of pocket if you were previously at a job that didn’t provide this as a benefit.
Liz Renter: Right. And I think those things are far less likely in, like the listener wrote in about, a municipal job or a state government job. Unlikely you’re going to have a keg of cold brew in the kitchen unless you’re in a really affluent city and tax rates are pretty high. But you’re right, some of those things that you take for granted, the snacks and the catered lunches at private industry, really do add up. You can spend a lot of money on those yourself if you’re having to pay for them.
Sara Rathner: Yeah, you definitely see a lot of those benefits in the tech industry because they are just falling all over themselves to make these companies more attractive to job applicants than the tech company down the street. Literally down the street, depending on what city you’re in. And so if that’s an industry where you are weighing some job offers, then yeah, you’re going to see some pretty wild benefits that have a dollar value to them.
Sean Pyles: Well, that said, there is one benefit that you will maybe get at a municipality that a tech company is not really going to be offering you. And that is the pension benefit that our listener wrote in about. And I want to give a quick rundown of how pensions work because they’re pretty incredible and they’re unfortunately not very common. So pensions are typically employer funded. That means the employer is putting in money, which is great. So the amount folks get in retirement depends on wages earned and how long they worked for the company or, in this case for our listener, a municipality.
Then upon retirement, someone who has access to a pension, they get payouts, typically for life. You generally do have to work at an organization for a set amount of time to get full access to the payouts. That’s called being fully vested. But once you’re fully vested, you can leave that job and still get access to the pension benefits upon retirement. So, so cool. I really wish I had a pension. Now, like I mentioned, pensions are really rare nowadays. So again, pensions are a very sweet benefit to have, and I would think very hard about losing that, especially if you’re not fully vested.
Liz Renter: Yeah, absolutely, Sean. And the listener wrote in about putting a dollar figure on their pension. So I just want to know that that’s an extremely difficult thing to do without a lot of details, and a lot of time, and a big spreadsheet and a calculator. Anyways, when you’re thinking about how long you’ve been at a job, how much your employer’s putting in, what the specifics are about vesting and if you decide to leave that government job, to leave your pension, and what would it take to create something comparable yourself? So there’s a lot of numbers involved, a lot of time frames, a lot of assumptions. So this is one instance where we would say, “If you really want to get precise on that measurement, it might make sense to consult with a certified financial planner who can put the dollar amount on those things.”
Sean Pyles: You’d likely want to talk with a CFP who maybe has some gray in their hair and who has done this before since figuring out pensions can be so complicated.
Liz Renter: Right. Yeah, exactly.
Sara Rathner: And honestly, if you have a financial planner that you already have a working relationship with, I mean, job hunting is an excellent time to have a check-in with them in general, and they might even help you wade through competing job offers or even just the comparison of a job offer to what you’re currently working in. And they can help you work through all the financial considerations of those options. And so that is a great way to utilize their assistance.
So let’s get to the other part of a listener’s question. The mushier stuff that folks should consider if they find themselves itching to leave a job. To start, they should ask themselves, what’s behind this urge? Are they bored, unhappy, unfulfilled? Are they upset because there’s no cold brew in the break room and they really want that?
Liz Renter: Yeah, this is key, Sara. I think there’s so many considerations when you’re thinking about a career move. And I had two really major career changes in my younger years. It’s over the past 20 years, but they were really pretty close together when I was in my late 20s. One when I moved from state government to private industry, and then a few years later, I went from private industry to self-employment. So those are pretty big changes. And in each of those changes, I was weighing different motivations. In one case, it was more about the money and advancement, and in the other case, it was more about what’s really going to make me happy long term? And so I think really diving into why and what your motivations are for leaving or staying, and getting clear on those before you start weighing your options, is a good place to start.
Sean Pyles: To what extent did you have that conversation with yourself or maybe with those around you around, “OK, if I leave this job, I might be making a little bit less, but I will be that much happier.” Or, “If I go to this job, I’ll be making a good amount more, but it’s going to be a boring job.” How did you think about those things?
Liz Renter: It’s tough. I probably had limited discussions. So as a single mom, it was just me and my daughter at the time, who was probably 4 when I made the first job change, maybe 7 when I made the second job change. So there weren’t a lot of people for me to toss these ideas around with. And I’m an extremely private person, but these were conversations I was having with myself. And in the first job going from state government to private industry, I realized in state government that, yes, the paycheck is steady, the benefits are nice, but I really love to work hard.
And in my experience, this government job, you were rewarded for how long you were there, not how well you were doing. And that was tough to deal with, and it really bred apathy among the people around me. I wanted to be somewhere where I could work hard and that would be recognized. So that’s not to say that all government workers are taking naps at their desk. That definitely wasn’t my experience, but personally, I wasn’t being recognized for the hard work that I was doing, and that was really important to me.
Sean Pyles: Right. That makes sense.
Liz Renter: And so that one was really more about the professional rewards of working. And then the second one, it was more about the trade-offs. Am I willing to give up some of those professional rewards to really fulfill my personal life? So as I said, my daughter was really young at the time, I was dropping her off early in the morning, I was picking her up after work, sometimes 12 hours later. And the job was paying more than my state government job, but I definitely felt like I was punching a clock and I wasn’t fulfilled, and I totally could not see myself doing that for years upon years. And I knew leaving that job meant I would absolutely take a decrease in pay, at least in the short term, as I got on my feet as a self-employed freelance writer. But when I balanced that against what was really important to me and what was going to make me happy and make me feel good about the way I was living my life, it was a no-brainer.
Sara Rathner: Yeah. I’ve known people who’ve switched jobs out of boredom and ended up regretting it, actually, because the reason they were bored at their previous job was they’d done it for a while and it became rote. But they realized leaving for a greater challenge meant giving up maybe some of the work-life balance and predictability that came with a job that was quote, unquote, “boring,” and they had to make pretty big structural changes to how they operated at home with their household, with their family, to accommodate the new challenges of a new career.
Sean Pyles: Kind of goes back to the idea that it’s not what decision you make, it’s what you do with the decision that you make. If you do leave a job that you’re bored at and you find that your next gig isn’t quite what you wanted it to be, there are going to be other opportunities later on.
Sara Rathner: Yeah.
Liz Renter: I think that’s a good point. When I went into freelancing and I knew I was going to take a pay cut and I was banking on turning that around in a year or two, I always had that in the back of my head like, “OK, worst-case scenario, I’ll get a part-time job for when my daughter’s in school,” or, “Worst worst-case scenario, I’ll go back to working full time.” With a reassessment of maybe I find something that’s closer to home so there’s less of a commute, what have you. But I think knowing that, “OK, I’ve thought through why I want to do it. I know this is the move I want to make, but just in case, I have these outs and these would be perfectly acceptable if things didn’t work out once I make this decision.”
Sean Pyles: Yeah. And I think your experience demonstrates how important it is to think through various scenarios. What could you fall back on if you do need to make a change after this job switch maybe doesn’t pan out how you thought it was going to.
Liz Renter: Right. I think if you’re planning well enough in advance, if you’re sitting around listening to this podcast thinking about, “Well, I’ve been thinking maybe I’m not happy where I am and maybe I should be considering this,” now’s a great time to make sure that, and I know we talk about this a lot on podcast, but make sure that your emergency fund is in place. Maybe cushion it a little bit more. You want to set these guardrails for, OK, sometimes we make decisions with what we think is all the right information and it turns not to work out the way we expected. So if you have those extra guardrails up, just in case, it can make you feel more secure moving forward with your decision when it’s time.
Sara Rathner: Yeah. And keep your professional network warm. Because it is a risk to take a new job, and sometimes you take a new job and hate it immediately, and you’re like, “I’m just going to job hunt again.” And so by keeping that network warm, by staying in touch with old co-workers or friends or relatives who maybe have some professional connections that would be helpful to you, you still also have an out. Not just financially, but also professionally where you’re still open to hearing about opportunities. Because if the jump that you made ended up being a pretty bad bet, then you’re still pursuing other places you could go and you haven’t closed off all the doors to that.
Sean Pyles: Well, now I want to talk about the counterpoint. About when it actually might be a good idea to stick around at a job. Conventional wisdom, at least among millennials, is that you shouldn’t stay at a job for too long because you’ll probably be able to earn more money going to a different job after a couple years. But sometimes staying at a job for potentially several years can be the best choice for people. So let’s discuss that. Liz, you’ve been at NerdWallet nine years, so what’s kept you around and how do you think about that sort of equation?
Liz Renter: So it’s interesting to think back at how this has changed over the generations because, definitely my grandparents to a certain extent and a little bit my parents as well, those generations you were rewarded for just staying where you were. You get a good job with good benefits and you don’t leave for 50 years, and then they throw you this big party. And that’s changed over the years where there’s more mobility and we can experience different opportunities. And I think there’s room for both of that. A little bit of each. So if you are the type that really wants to be loyal to a single company and wants that stability and you’re happy with what you’re getting paid, you don’t have to keep chasing 5% salary increases at other companies. That’s not a requirement. If you’re good where you are, you like your work and you’re working towards your long-term financial goals, that’s totally acceptable. You don’t have to get in on this hustle life.
Sean Pyles: That can also be a good way to approach things, given that the macroeconomic conditions right now are a little shaky. Many companies still have the policy of last in, first out when it comes to layoffs. So for this year in particular, it might not be a bad idea to stick around if you do like the job that you have.
Liz Renter: Right. People are still leaving their jobs at really high rates, but they’re getting into new jobs at really high rates. The unemployment rate hasn’t ticked up, which means people that are leaving their jobs aren’t filing for unemployment, they’re going elsewhere. So that’s a positive sign if you do want to change jobs. But to your point, Sean, there is a lot of uncertainty, and if you’re risk intolerant, it might make sense to sit tight for a while and see how things shake out.
Sean Pyles: Well, Liz, do you have any final thoughts for those who might be thinking about switching jobs right now?
Liz Renter: I would say, yes, it’s as complicated as you think it is. I envision it as you’ve got all of these scales in front of you that you’re trying to balance and you’re trying to figure out, “OK, if I take away this much of my work-life balance, how much salary do I have to add to make it worthwhile?” Or, “If I take away the cold brew in the kitchen, how much of a cell phone stipend do I need to add to make it worthwhile?” So there’s all these scales you’re trying to balance here, and it’s a lot to think about. So you just do the best you can, set up some guardrails just in case things don’t go well.
Sean Pyles: And maybe take your time making a decision. Don’t rush into anything too hastily. Otherwise, the scales may just collapse and go crazy.
Sean Pyles: All right, well thank you so much for talking with us, Liz.
Liz Renter: Thanks for having me again.
Sean Pyles: All right, and with that, let’s get into our takeaway tips. Sara, will you please start us off?
Sara Rathner: Sure. First, know what you’re getting. Compensation can include a lot more than the cash you get. Understand your total compensation ahead of any job hunt.
Sean Pyles: Next up, go beyond the math. Jobs are about a lot more than the money. Consider things like personal fulfillment and work-life balance when weighing other job options.
Sara Rathner: Finally, there’s nothing wrong with sticking around. If you’re fulfilled and well compensated in your current position, staying put might be your best option.
Sean Pyles: And that is all we have for this episode. Do you have a money question of your own? 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] Visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast.
Sara Rathner: And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles: This episode was produced by Liz Weston, Tess Vigeland and myself. Kaely Monahan mixed our audio. And a big thank-you as always to the folks on the NerdWallet copy desk. And with that said, until next time, turn to the Nerds.
Around half of Americans have a life insurance policy. Financial advisors recommend having life insurance coverage that’s 10 to 15 times the amount of the insured’s annual income.
But additional insurance may be recommended to cover costs such as outstanding debt, children’s college education costs, or lifetime support of a disabled family member. Perhaps it’s no surprise that about one in five people who have insurance think they don’t have enough.
Getting to that life insurance protection point may be made easier by purchasing multiple life insurance policies. How many life insurance policies can a person have? There is no legal limit, and each person has unique life insurance needs, which will influence the number of life insurance policies held. There are also upsides and downsides to buying multiple insurance policies.
Why Have Multiple Insurance Policies?
Time is a big influencer on having multiple life insurance policies. For instance, a financial consumer may still have a whole life insurance policy that was taken out in childhood.
As the policyholder grows up and has a family, they may decide to take out a second life insurance policy to cover those financial dependents.
Or, an existing life insurance policy holder may need additional coverage for specific needs. Consider a homeowner with a family and a home mortgage. The homeowner may need a second life insurance policy to cover the mortgage owed on the home in the event he or she passes away.
Even smaller expenses can trigger the need for an extra life insurance policy. For example, the head of a household might consider buying an extra life insurance policy to cover the cost of funeral expenses, so the grieving family will have one less thing to worry about.
Recommended: 8 Popular Types of Life Insurance for Any Age
How Multiple Life Insurance Policies May Work
Since buying a home or starting a family has such a big impact on a family’s finances, adding more life insurance is certainly understandable.
In that context, adding extra life insurance in the form of an additional policy may make good sense. Using a policyholder with a mortgage and a family as an example, here’s how having multiple life insurance policies might work.
Term Life Policy: Enough life insurance to cover the cost of a home mortgage in the event the policyholder passes away.
Let’s say the head of household needs to cover a $300,000 mortgage. They buy a $300,000 term life insurance policy that expires in 30 years, when presumably the mortgage will be paid off.
If, in the event the policyholder dies sometime during those 30 years, the term life insurance policy pays $300,000, which the family can use to pay off the mortgage and remain in the home. If the policyholder is still alive after the 30-year term ends, the term life insurance contract ends with no more premiums owed on the policy, but no death benefit either.
Additional Term Life Policy
The head of household wants to leave his or her family in good financial shape after passing on. That means not only covering the costs of a mortgage, but also household bills, health care expenses, and the cost of college education for the children. A 20-year policy for $200,000 might ensure the family’s ability to cover necessary expenses, should the policyholder die during the policy term.
In the above example, the policyholder “doubles up” by purchasing one term life insurance policy to cover mortgage protection, so the family can continue living in the home without fear of having to cover mortgage costs and a separate term life policy meant to cover basic household and life expenses .
Life Insurance Laddering
Another approach is buying three life insurance policies and possibly paying less than a large single life insurance policy might cost.
The strategy is called “laddering.” Instead of buying one large life insurance policy for $1 million, for example, the policyholder might buy three smaller, term life insurance policies that equal $1 million, each for a different term. For example:
• A 10-year term life policy for $500,000 worth of coverage. • A 20-year term life policy for $300,000 worth of coverage. • A 30-year term life policy for $200,000 worth of coverage.
By stacking, or laddering, life insurance policies over different timetables, the policyholder is getting the exact financial coverage he or she needs at different stages of their life.
The laddering concept could give the policyholder some financial leverage with their insurance strategy. Typically, as a policyholder grows older, the need for life insurance declines, as the mortgage is paid down and children are grown and financially responsible for themselves.
Note that each person’s insurance cost will be different based on age, gender, health, hobbies, and other factors, so laddering may not be the right choice for everyone.
Pros and Cons of Having Multiple Life Insurance Policies
A person’s unique coverage needs will influence any decision to expand a current policy, add a new life insurance policy, or simply keep their current life insurance as it currently stands.
Pros:
Adding to a group life policy. Those with group life insurance subsidized by their employers may not have adequate financial protection. Coverage through an employer may not follow the employee, either, so if a person changes jobs, typically that coverage will no longer be in effect. Buying additional coverage could give a policyholder the life insurance protection they need.
Providing extra protection for life stages. Big “life stages” events like buying a home, having children, or launching a business may increase the need for more life insurance. As more value is added to a person’s net worth, the need for adequate life insurance to ensure their family is protected after they’re gone increases. An extra life insurance policy may provide that extra cushion of financial support. Term life insurance places a limit on the policy’s length based on insurance protection needs
Curbing risk. It doesn’t happen often, but insurance companies can go out of business. While an extra life insurance policy might add another layer of financial protection in the event of this worst-case scenario, consumers do have some protection through insurance guaranty associations. These guaranty associations provide benefits to policyholders and beneficiaries of policyholders in the case of an insurance company becoming insolvent. Insurance companies are legally required to join guaranty associations in the states where they do business.
Cons:
Coverage denial. Applying for multiple life insurance policies may signal companies that you’re attempting to purchase more life insurance than you actually need.
Insurance companies can and do share encrypted customer data, including the existence of multiple life insurance applications, via an industry organization known as the Medical Information Bureau (MIB).
Insurance providers rely on the MIB to ensure they’re not providing more life insurance coverage to a consumer than is necessary. Thus, having two or more life insurance applications under consideration by different companies could draw attention and end up in a denial of coverage based on a consumer’s intent to purchase more life insurance coverage than is necessary. Generally, during a life insurance interview, insurance companies will ask about other coverage an applicant already has in force or has pending. This double checking is to make sure a person will not be overinsured. The MIB also helps prevent fraud by proposed insureds because the MIB includes previous denials that could be left off of an application.
More complex record keeping. Multiple policies means multiple payments and more paperwork to keep track of. A missed payment could mean termination of a policy. For people who have a difficult time keeping track of household records and payments, multiple policies may not be a good idea. It can be easier to manage everything if all policies are through the same insurer.
Possible increasing premiums. Want to keep the cost of life insurance in check? Premiums are generally less expensive for young, healthy people. Purchasing one larger policy at a relatively young age may cost less overall.
Alternative to Having Multiple Policies
One possible strategy for maximizing life insurance benefits without taking out multiple policies is the use of insurance riders, which can add benefits to a policy without having to take out a new one. An insurance rider is supplementary coverage to an existing policy.
Some examples of riders are conversion of an addition of long-term care insurance to a basic life policy or accidental death and dismemberment for someone with a particularly dangerous job or hobby.
Policies may include conversion privileges, but riders can extend the amount of time the policyholder can convert. The cost of an insurance rider varies depending on the type of rider and the insurer. Each person’s insurance needs will determine which, if any, rider is necessary, and if the cost is affordable to them.
Recommended: What Is Life Insurance and How Does It Work?
The Takeaway
By purchasing multiple life insurance policies, policyholders can have extra coverage that pays out on a specific debt, like a mortgage payment, after the policyholder passes away. Additionally, multiple policies can help consumers get the exact life insurance coverage they need — when they need it most.
If you’re shopping for life insurance, SoFi has partnered with Ladder to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOPT0523010
A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Its purpose is to provide an easily accessible avenue for frequent transactions such as paying bills. As a tool in your money management kit, understanding how much money you should keep in your checking account is crucial for optimal financial health.
Factors to Consider When Determining How Much Money to Keep in Your Checking Account
Monthly Expenses
Your checking account balance should reflect your exact living expenses, plus a little extra for safety. Monthly expenses vary for everyone. They can be divided into fixed expenses (like rent and utilities) and variable expenses (like groceries, entertainment, seasonal and occasional expenses).
Income Frequency and Stability
If you have a regular income and know exactly how much money you’re getting every pay period, you can plan to keep just enough to cover a couple months worth of expenses plus your extra safety net. If your income fluctuates, it might be prudent to keep a bit more.
Personal Comfort Level and Financial Goals
Everyone’s financial situation and goals are different. Some might feel comfortable with a larger buffer in their checking accounts, while others might prefer to invest or move their excess into savings accounts to earn interest.
Emergency Expenses and Financial Buffer
Life is unpredictable. Having an emergency fund in your checking account for unexpected expenses such as medical emergencies or urgent car repairs can save you from financial distress. A rule of thumb is to have 3–6 months’ worth of living expenses set aside in your emergency savings.
General Rules of Thumb for Checking Account Balances
Covering Monthly Bills
The balance in your checking account should always be able to cover your monthly bills without resorting to overdrafts. Overdraft fees can add up and end up being a significant drain on your finances.
Overdraft Protection
It’s wise to keep a buffer against unanticipated expenses. This isn’t just an ATM transaction that went over your available balance, but also potentially a check that was cashed later than expected. An overdraft protection plan can prevent an empty or overstuffed checking account.
Extra Cushion
Even with all your expenses accounted for and a buffer for emergencies, it can be prudent to maintain an additional cushion. This can help cover seasonal and occasional expenses without the risk of an overdrawn account.
Benefits and Risks of Keeping Large Balances in Your Checking Account
Benefits
There’s convenience and flexibility in having a robust checking account. It serves as overdraft protection and ensures you have enough money for just about anything. Moreover, having that much money at hand can feel comforting.
Risks
Having too much money in your checking account comes with risks, such as missed investment opportunities. Money in a checking account typically doesn’t earn interest, or if it does, the interest rates are often significantly lower than savings or money market accounts.
There’s also the risk of exposure to fraud and theft. While financial institutions do their best to protect your checking account numbers and other data, no system is completely foolproof.
Strategies to Optimize Checking Account Use
Regular Monitoring and Rebalancing
Understanding how much cash you’re spending and keeping track of your available checking account balance is key. It allows you to adjust your balance based on your spending habits and helps keep your checking account well-funded without being overstuffed.
Use of Budgeting Tools and Apps
Budgeting tools can help you understand your monthly spending better. They can automate the tracking process and give you a clear picture of how much money you need in your checking account each month.
Automatic Transfers
Setting up automatic transfers to your savings account or emergency fund can help you grow those funds consistently. Just ensure that this doesn’t leave your checking account underfunded.
Splitting Direct Deposits
You can opt to split your direct deposit into different accounts. This can be a valuable tool for maintaining an adequate balance in your checking account while also ensuring your savings accounts and investment accounts are consistently growing.
Regularly Reviewing and Adjusting Based on Changing Financial Situations
Life changes can significantly affect how much money you need in your checking account. Regular reviews of your finances can help you adjust to changes like new monthly bills, increased living expenses, or changes in your income.
Alternatives to Keeping Excess Money in a Checking Account
Savings Accounts
Savings accounts typically offer higher interest rates than checking accounts. Transferring excess money into a savings account can help you earn more over time, making it a safer bet for your surplus funds.
Investments
Investing can offer higher returns than deposit accounts that pay interest at a bank, though it comes with more risk. If you find you have too much cash in your checking account regularly, it might be worth speaking with a financial advisor about investment opportunities.
Money Market Accounts and High-Yield Checking Accounts
Money market accounts and high-yield checking accounts can provide higher annual percentage yield than regular checking and savings accounts. These accounts can be a good place to keep excess money that’s still relatively accessible.
Bottom Line
While the average checking account balance varies by individual, a rule of thumb is to keep enough to cover a month or two of expenses. In addition, keep a cushion for emergencies and any potential bank failures.
Maintaining a balance that is too high means your money isn’t working for you, and could be better used in a high yield savings account or investment. On the flip side, you don’t want to risk overdraft fees from an empty or overdrawn account.
Ultimately, the best way to determine how much money to keep in your checking account is to monitor your finances closely. Understand your monthly expenses and personal comfort level, and regularly review your situation.
The key is balance. An overstuffed checking account means missed opportunities elsewhere, but a checking account well funded enough to cover your bills, a buffer for emergencies, and a bit extra for unexpected expenses will keep your financial life running smoothly.
No matter what, it’s your money. Understanding the ins and outs of bank accounts, especially your checking account, is key to ensuring your money works best for you.
Frequently Asked Questions
Can my bank account balance affect my credit score?
No, the amount of money in your checking or savings account doesn’t directly impact your credit score. However, good money management habits like avoiding overdrafts, paying bills on time, and maintaining a healthy balance can indirectly contribute to your overall financial health.
Is my money safe in a checking account?
Yes, your money is typically safe in a checking account. Most checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to a limit of $250,000. However, always verify that your bank is FDIC-insured.
What if my checking account balance goes negative?
If your account balance goes negative, you’ll likely face overdraft fees. Some banks offer overdraft protection programs that link your checking account to a savings account or credit card to cover the shortfall. However, these services often come with fees, so it’s better to avoid overdrawing your account whenever possible.
Should I have multiple checking accounts?
Having multiple checking accounts can be beneficial for managing different financial objectives or expenses. However, keep in mind that each account may have its own set of fees and minimum balance requirements.
What happens to the money in my checking account when I use my debit card?
When you use your debit card, the amount of the transaction is subtracted from your balance. So, it’s crucial to ensure that you have enough money in your account to cover any purchases made with your debit card.
What happens if I don’t meet the minimum balance requirement for my checking account?
If you don’t meet the required minimum balance, your bank may charge you a monthly maintenance fee. The specifics can vary widely from bank to bank, so it’s best to check with your financial institution about their policies.
How can I avoid monthly maintenance fees on my checking account?
Some ways to avoid monthly fees include meeting balance requirements, setting up direct deposit, or using your debit card a certain number of times per month. Each bank has different policies, so it’s important to understand what your bank requires to waive these fees.