Rates have been in retreat as bond market investors who fund most mortgage loans react to the latest economic news and scaleback in tightening by Fed policymakers.
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Mortgage rates retreated for the third day in a row Friday as the latest numbers from the Labor Department showed employers added fewer jobs than expected in April, pushing unemployment closer to 4 percent, a level not seen in more than two years.
The U.S. economy added 175,000 jobs in April, down from 315,000 in March and the most anemic growth since October 2023. Economists had expected April employment growth of 240,000 jobs.
The report came on the heels of Wednesday’s announcement by Federal Reserve policymakers that they intend to slow the pace of “quantitative tightening” — an unwinding of the central bank’s $7 trillion balance sheet — to $40 billion a month, less than half the pace envisioned two years ago.
Job growth cooled in April
Change in employment, by month. Red bars are the latest forecast, including revisions to previous estimates for February and March. Source: U.S. Bureau of Labor Statistics.
“This report is nothing like bad enough to trigger a wholesale rethink at the Fed, but things will be different if the July numbers are weaker still, as we expect,” economists at Pantheon Macroeconomics said in a note to clients. “The downshift in payroll growth has come exactly when the [National Federation of Independent Business] suggested it would, and the signal for the future is unambiguous.”
Futures markets tracked by the CME FedWatch Tool last week predicted that the odds were against the Fed making more than one 25-basis point rate cut this year. On Friday, investors had repositioned their bets in line with expectations that there’s a 61 percent chance of two or more Fed rate cuts by the end of the year, with the first move now expected in September rather than December.
Pantheon economists are sticking to their forecast that the central bank will bring the federal funds rate down by a full percentage point, starting in September.
“Businesses — especially small firms — are responding to the lagged effect of the huge increase in interest rates and the tightening in lending standards, which have made working capital much more expensive and harder to obtain,” Pantheon economists said. “At the margin, this is depressing hiring and lowering the bar to layoffs.”
Unemployment, which dipped below 4 percent in February 2022, is once again flirting with that level, hitting 3.9 percent in April, up half a percentage point from a year ago.
The Fed doesn’t have direct control over long-term rates, but bond market investors who fund most mortgage loans are reacting to this week’s news.
10-year Treasury yields down 25 basis points
Yields on 10-year Treasurys, which often predict trends in mortgage rates, fell 7 basis points Friday to 4.50 percent, a 25-basis point drop from the 2024 high of 4.75 percent registered on April 25.
Surveys of lenders by Mortgage News Daily showed rates for 30-year fixed-rate loans dropping for a third day in a row Friday, to 7.28 percent, down 24 basis points from a 2024 high of 7.52 percent, also registered on April 25.
Mortgage rates retreat from 2024 highs
Data tracked by Optimal Blue, which lags by one day, showed borrowers were locking in rates on 30-year fixed-rate mortgages Thursday at an average rate of 7.21 percent, down 6 basis points from the 2024 high of 7.27 percent recorded on April 25.
Borrowers taking out jumbo loans have seen spreads over conventional mortgages widen as higher interest rates and defaults on commercial loans weigh on regional banks that are often the source of those loans.
The rates published by Mortgage News Daily (MND) are higher than those reported by Optimal Blue because MND’s rate index is adjusted to account for points that borrowers often pay to get a lower rate. Optimal Blue uses actual rates provided to borrowers for rate locks, whether they paid points or not.
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It’s no secret that dating can be expensive. Be it fancy dinners or flowers and gifts, the cost of impressing your date can add up quickly.
But spending more doesn’t always correlate with a successful date—or relationship, for that matter. In fact, sometimes cheap date ideas are more effective at creating connections and leading to long-lasting relationships. Here are a few fun cheap date ideas that can fit any budget.
How to fit dating into your budget
Whether you’re committed to a strict spending plan or simply want to save more and spend less, figuring out how to date on a budget is completely doable with these tips.
Alternate between cheap or free and regular date nights
Not setting a budget for dates ahead of time can quickly devolve into overspending. Likewise, coming up with a cute cheap date idea every time can feel like a chore and take the fun out of planning. Instead, try switching between one pricier and one cheap or free date night activity so you’re only spending a sizable amount on half of your dates. This way, you’ll be able to indulge in going out sometimes and still find ways to save money on date night.
Take advantage of good deals
Just because something’s half price doesn’t make it any less fun or romantic. Instead of splurging on a three-course meal, consider a happy hour date to score lower-price drinks and appetizers. If you’re in charge of planning the date, there are plenty of free or cheap date ideas to help you have fun while staying within budget.
Cheap first date ideasto explore
First impressions matter, so you might find yourself shelling out some cash on a first date. But don’t feel like you need to go overboard to impress your date—here are a couple of fun cheap date ideas that won’t hurt your wallet.
Grab a casual bite
Ditch the Michelin-starred restaurants and eat like a local, meeting at a neighborhood cafe or a popular hole-in-the-wall spot. Opting for cheap eats over formal dining options can help keep the date lighthearted and the vibe relaxed as you’re still getting to know one another.
Take advantage of free events
Another cheap first date idea may come courtesy of your local chamber of commerce or public library. Most cities offer free outdoor activities like concerts and festivals, while libraries often share free or low-cost passes to state parks and local museums.
Cheap romantic date ideas for staying at home
After you’ve been on a first date (or a few) and you and your partner are both comfortable, you may favor staying in. Save even more with these cheap romantic date ideas you can have at home.
Some cute cheap date ideasat home include visiting a farmer’s market to buy ingredients for a home-cooked meal—and then cooking it together. Or if cooking’s not your strength, keep it simple with a charcuterie board and board game. Host a backyard or rooftop stargazing session to ramp up the romance—bonus points if you align it to a meteor shower or other astronomical event.
Level up your relationship
As you get to know one another, you may feel ready to take your relationship to the next level. Consider these cheap date night ideas that focus on aligning your financial values to help ensure a long-lasting, happy future.
Budget for cute date ideas together
While maybe not the most exciting idea, reserving one night to figure out plans and set a budget for future date nights is one of the easiest activities you can do. It’s also a great way to ensure you’re both on the same page about how much you want to spend and what activities you’d like to try.
Learn about your financial outlook together
Take a financial personality quiz to see how your beliefs shape your financial behaviors. With a clearer sense of how you both view money, you can better align on things—like how much you want to budget for date nights—without compromising your relationship over money.
Plan your financial future together
If you’re serious about your relationship, discussing your financial future on a regular basis can potentially set your relationship up for long-term success. Establish a regular time to talk about your finances—potentially once a month—and keep it casual. Especially if engagement and marriage are on the table, making a habit of talking about money can ensure your financial aspirations are aligned.
Date night doesn’t have to break the bank
Brainstorming fun cheap date ideas can be a date all on its own, and sometimes, the free activities are the most meaningful. Now is also a great time to think about what you can do with the cash you’re saving and how you might use it for your future together. If you’re planning a more extravagant experience, like a trip or big party, consider putting that money away in a high-yield savings account. With a clear budget and plan for staying on track, you can ensure your cheap date nights are just as rewarding as the pricier nights out.
Once you’ve got your date night budget sorted, check out the features of a Discover® Online Savings Account to see how you can make your money work a little harder for your next big date.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
Money management — how to save, budget, and invest — is a vital life skill that isn’t part of most school curriculums. As a result, it often falls to parents to prepare kids for this aspect of adulthood. The trouble is, talking about things like spending, saving, and taxes with your kids may not come naturally, especially if you were raised in a “don’t talk about money” household.
So when — and how — do you start talking about money with your kids?
Generally, it’s never too early to begin teaching kids about the concept of money. You might start just by normalizing conversations about money, so kids feel comfortable asking questions. Other easy strategies include offering a piggy bank to young kids, to introduce the concept of saving, and providing an allowance to older children, which helps them learn to budget and manage their own money.
Read on to learn more about some of the best ways to teach kids about money and put them on the path towards financial health and independence.
Why It’s Important To Teach Kids About Money Management
Whether it’s the importance of saving or how to open a new bank account, money lessons help ensure that kids will make smart financial decisions in the future.
Children who are introduced to basic financial concepts at an early age are likely to feel more confident about their spending habits and have less financial anxiety when they’re older. Teaching young children simple lessons about money management also makes it easier to impart more complex financial lessons as they get older. This can help set them up for success when they get that first summer job, go off to college, and enter the working world.
Money Management Explained
First, let’s look at the big picture. Helping kids understand the basics of money management is important…but what is money management anyway? Some adults can’t answer that question, let alone explain it to their children.
Simply put, money management refers to how you handle all of your finances. It involves keeping track of what’s coming in and what’s going out (and making sure that latter doesn’t exceed the former), being smart about debt, and setting money aside for both short- and long-term goals.
While adults generally understand that saving money is important, it typically takes an engaging approach to get kids psyched about hoarding their pennies rather than spending them on a video game. With the right strategies, however, teaching kids about money management can wind up being a satisfying and fun experience for the whole family. It might even give you a renewed focus on your own money skills.
Money Management for Kids in 6 Steps
Here’s a look at some of the best ways to boost money management for kids.
1. Start Early
Children as young as three years old can start to grasp the basic concept of “We need dollars to get ice cream.” Talking about money in a positive, or simply neutral, way and being transparent about your own financial life (“I got paid today,” or “I need to pay bills tonight”) begins to ground kids in the ebb and flow of finances. It helps a child learn the value of money.
Parents can use a routine trip to the grocery store to point out price tags and how some things cost more than others. Asking a salesperson or cashier, “How much is this?” can clue children in to a transactional truth: You have to have money to buy something. Paying bills in front of them helps them understand that families also have household expenses.
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2. Provide an Allowance
Offering an allowance can be a great way to teach kids to manage money responsibly. The ground rules for a child’s allowance vary from family to family; some start a child off with an allowance at age five, and others at age 14. How much kids get also varies widely and is entirely up to you. One rule of thumb is to match the number of dollars per week with a child’s age, such as $10 a week for a ten year old. You might also ask around among other parents to get a sense of the “going rate.”
Here’s a look at the two common ways to structure allowance.
• Chore-based allowance: With this set-up, a child does chores in order to get paid. This system can instill a strong work ethic that will benefit children in the future. Some say a drawback of this method is that it could send a message that household chores are optional. But for many families, it works well.
• Fixed allowance: Here, you agree to pay your child a set amount of money every week or month no matter what. Separately, they are expected to do their chores and help around the house because they are part of the family. This arrangement allows a child to feel part of a greater whole — to be responsible for the tidiness of their room and offer to help with the dishes because that’s what family members do. Some may argue that paying children an allowance that isn’t chore-based could compromise their work ethic or promote a sense of entitlement, but it’s really up to each family to determine what works best for them.
3. Encourage Saving and Goal-Setting
Just as adults are motivated to save when they want to have enough money for, say, a vacation or new car, your child may be incentivized to save a target amount for a specific purpose. Or, you may have a child who just wants to see how high their savings can go — that’s fine too! You can encourage them to save just to find out how much they can stash.
You might also offer rewards for reaching savings milestones. For example, you could make a deal that if your child saves a certain amount, you’ll kick in a little bit more. This rewards them for exercising restraint, and it’s similar to a vesting or “company match” principle, which you could explain to an older child.
4. Give Them a Place to Stash Their Cash
For younger kids, keeping money close at hand can work well. Having their own piggy bank or child’s safe can also make saving more fun. For older kids, you might want to open a savings account in their name. Many banks offer savings accounts specifically geared toward children and teens. Typically, these are joint or custodial accounts that come with parental controls and tools that teach financial education.
5. Introduce Them to Credit
As teenagers become more independent and start driving themselves around, consider enrolling your child as an authorized user on one of your credit cards. This can not only be helpful in the event of an emergency, like a flat tire, it’s an opportunity to discuss how to be responsible with credit. You can explain how credit cards work differently than debit cards and how interest racks up quickly if you don’t pay off what you charge in full by the end of the billing cycle.
6. Explain Budgeting When They Graduate From College
Once your kids are earning money regularly and responsible for paying their own room and board, it’s a good idea to help them draw up a budget based on their salary and estimated expenses.
There are all kinds of budgeting methods, but they might start with the basic 50/30/20 approach. This involves putting 50% of their earnings toward needs, 30% toward wants, and 20% toward savings (including any money they are putting into a retirement plan offered by their employer). If their employer offers any matching contributions to their retirement contributions, encourage them to take full advantage, since this is essentially free money.
Fun Ways To Teach Kids Money Management
To make financial literacy fun and engaging, try one of these four money activities for kids.
Go Thrifting
Buying second-hand clothes can be a great way to teach kids how to be smart spenders. You might first go to a regular clothing store and look at the price tags on new clothing, then head to a local thrift store and compare prices. Consider giving your child a set amount they can spend on second-hand clothing. You can then enjoy watching them try to get as much as they can for their money.
Encourage Some Sibling Rivalry
If you’re teaching more than one child about money, consider setting up a competition to see which sibling can save more by a certain date. You might set a goal, such as saving a specific amount or towards a specific item, then offer a reward to the winner.
Set Up a Lemonade Stand
Letting kids set up and run a lemonade stand can help them learn valuable lessons about money, including earning income and entrepreneurship. It can also help them build confidence, resilience, and management skills. Plus, it’s fun. Just be aware that many states require kids to have a permit to operate a lemonade stand, so the first step is doing a bit of research.
Play Financial Board Games
Classic board games like Monopoly and Payday can also be great money activities for children. In Monopoly, for example, players buy and trade properties, develop them, and collect rent. There is even Monopoly Jr. for younger kids. Other fun money board games for your next family game night: the Game of Life, the Allowance Game, the Stock Exchange Game, and the Sub Shop Board Game.
Teaching kids about money and how to manage it can prepare them to be financially responsible adults. By offering an allowance or payment for doing extra chores, kids can learn the value of money and rewards of saving and delayed gratification. Helping older kids learn how to budget and set up a bank account can instill a sense of confidence and independence, not to mention pride.
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FAQ
When should you start teaching kids money management?
Children as young as three years old can begin to understand the concept of paying for something and saving money in a piggy bank. Some parents start giving kids an allowance between the ages of five and seven, which can help them learn basic financial literacy concepts like saving, spending, and sharing. As kids get older, you can gradually introduce more complex concepts like budgeting, investing, and “good” vs. “bad” debt.
What are the benefits of teaching kids money management?
Teaching kids about money has numerous benefits. It instills financial responsibility, fosters good habits early on, and prepares them for real-world financial challenges. It also encourages critical thinking, goal-setting, and independence in making financial decisions.
How do you teach kids the value of money?
You can teach the value of money through hands-on experiences and age-appropriate activities. Encourage earning money through chores or tasks, involve them in family budgeting discussions, and demonstrate the consequences of spending choices. Emphasize the importance of saving for goals and how to differentiate between needs and wants.
How do you organize your kids’ money?
You can organize a kid’s money by helping them establish savings goals, allocate their money into different categories (such as saving, spending, and giving), and track their progress regularly. Consider using tools like jars, envelopes, or savings accounts to physically or digitally separate their money.
What is the 3 piggy bank system?
The “three piggy bank” system involves dividing money into three categories: saving, spending, and sharing. Each piggy bank represents a different purpose, teaching kids to allocate their money wisely. They learn the importance of saving for future goals, budgeting for everyday expenses, and contributing to charitable causes or sharing with others. This system helps instill foundational money management skills in a simple and practical way.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
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The following Five Surveys Review is a sponsored partnership with Five Surveys. Welcome to my Five Surveys Review! If you want to earn extra cash from home on your own schedule, I recommend trying out Five Surveys. This honest review of Five Surveys is going to explain what Five Surveys is, how Five Surveys works,…
The following Five Surveys Review is a sponsored partnership with Five Surveys.
Welcome to my Five Surveys Review!
If you want to earn extra cash from home on your own schedule, I recommend trying out Five Surveys.
This honest review of Five Surveys is going to explain what Five Surveys is, how Five Surveys works, and how you can earn spare cash with paid online surveys on Five Surveys.
If you’re interested in earning money online, you might have come across Five Surveys. This site pays users to complete surveys, giving an easy way to make extra cash from home. Unlike other survey sites that pay low amounts, Five Surveys has a simple deal: complete five surveys and earn $5.
I’ve been taking surveys for years, and I find it to be an easy way to earn extra money in my spare time.
I personally signed up for Five Surveys and have started taking surveys to test it out for you, my reader. One thing I really love about Five Surveys so far is the amount of surveys that are available. Already on the first day, there were 42 surveys that I could get started with, with more being added all the time.
Please click here to sign up for Five Surveys.
Five Surveys Review
Below is my Five Surveys review.
What Is Five Surveys?
Five Surveys, also known as 5 Surveys, is a website where you get paid to answer surveys online.
For every five surveys you finish, you can earn $5. Yes, once you answer your fifth survey, you can make quick cash, and they have a lot of available surveys for you to get started with.
If you’re all about making some extra cash, Five Surveys could be your go-to. Here are some reasons why I personally like Five Surveys:
This survey site is easy to use – Everything can be found right from the dashboard once you log in.
There are lots of surveys available – There are tons of surveys waiting for you, anytime. Whether it’s day or night, you can log in and find a survey to answer.
Fair payment for your time – For every 5 surveys you finish, you get $5. That means you’re earning $1 per survey, which is good for a few minutes of sharing your thoughts.
Get paid now, not later – Hate waiting? With Five Surveys, there’s no more watching the clock. After you complete 5 surveys, you can redeem your earnings.
Great customer service – They have a 24/7 live chat support team for any questions that you have.
When I first signed up for Five Surveys, I immediately received 42 surveys that I could start with. They ranged anywhere from 1 minute to 29 minutes. And, the way that the Five Surveys online platform works is that you need to answer 5 surveys to get the $5.
How Five Surveys works
Five Surveys is a platform where you can earn money just by sharing your thoughts and input through surveys.
Here’s how to get started on Five Surveys:
Sign up – First, you need to create an account. It’s free! You can join Five Surveys for free here.
Verify email – After signing up, check your email to find a verification link. Click it to activate your account.
Take surveys – Once your account is all set, you can start taking surveys. These surveys are a way for you to share your opinion on different things.
Earn money – For every 5 surveys you take, you get paid $5. That’s like getting $1 for each survey you complete!
Cash out – When you’re ready, you can take this money and put it in your pocket. The cash out process is simple and quick.
You may occasionally come across screen-outs (this is when you start a qualification survey but are deemed not their intended target market), but the more surveys that you take then the easier it is for Five Surveys to match you with better surveys with your customer profile. For example, the qualifier may ask if you have children, but the survey’s target criteria may actually be looking for households with no children. So, you will see less inconvenience when it comes to these with the more surveys that you take.
Note: The answers for the pre-survey questions need to be accurate and detailed so the you have more relevant surveys available.
Why does Five Surveys pay you to answer surveys?
Ever wondered why companies pay for your thoughts on surveys? It’s because your opinions matter! Companies want to know what you think about their products and services because they want to create things that you’ll like and want to buy.
Market research firms act like detectives for companies, gathering clues about what people want. They create surveys for us to fill out, which helps them figure out what products should be like. As a thank-you for your help, these companies reward you with cash and other payment methods.
What kind of questions are asked in surveys?
When you visit online survey sites to earn extra cash, you might wonder what kinds of questions you’ll be asked.
The questions can vary from survey to survey, but they tend to focus on your opinions about products or services, your preferences, and sometimes personal details such as whether you have pets or children at home and geographical characteristics (where do you live?).
I have taken over 100 surveys in my lifetime, and I have never once come across a hard question. They are always super easy and quick to answer.
Here’s a sneak peek into some typical questions that you may see:
How frequently do you eat out?
Is cost a big deal for you when shopping for something?
What do you value in a product like ____?
How much do you use items such as ____?
How much money do you make each year?
What fills up your free time?
Do you do a lot of research before you buy something? Or, do you impulse shop?
How many trips do you make to the grocery store in a month?
Survey creators design these questions to be easy—they don’t require you to be an expert or a genius.
In some surveys, you might come across detailed questions about specific items, while others might be broader and aim to understand you better. This helps companies figure out why certain products or services might be a good fit for you.
How to cash out with Five Surveys
Getting your earnings from Five Surveys is quick and easy.
You simply go to your Five Surveys account and choose your withdrawal method. You can choose between PayPal cash, bank transfer, Venmo, and gift cards.
They have gift cards to places such as Walmart, Olive Garden, Southwest Airlines, Chewy, Apple, and more. There are over 187 different rewards that you can choose from actually.
Frequently Asked Questions
Below are answers to common questions about getting paid to take surveys with Five Surveys.
Is Five Surveys legit?
Yes, Five Surveys is a legitimate survey site known for rewarding people who complete surveys. On TrustPilot, Five Surveys has over 1,600 reviews with a good rating of 4.2 out of 5 stars (that means that most people have a positive experience on this site!). Some of the positive Five Surveys reviews that I read on TrustPilot talked about how Five Surveys is the best survey site due to the number of easy surveys available that pay a decent amount.
Can you actually earn money by completing surveys?
You can earn money by completing surveys on Five Surveys. The platform pays out cash and other rewards for the feedback you provide in surveys. Remember, the amount you earn will depend on the number of surveys you complete.
Does Five Surveys really pay?
Five Surveys does pay its users. Upon reaching a minimum account balance, you can redeem your earnings through different methods like PayPal, bank transfer, or Venmo, and also in the form of gift cards.
Is Five Surveys worth my time?
Whether Five Surveys is worth your time depends on your goals. It is an easy way to earn small amounts of money, but like most survey sites, it won’t replace a full-time income. It’s a decent option for earning a little extra on the side.
Is Five Surveys free?
Signing up for Five Surveys is free.
Five Surveys Review – Summary
I hope you enjoyed my Five Surveys Review.
Understanding how Five Surveys works is easy. Once you complete five surveys, you’ve earned $5, which you can cash out using the payout options offered by the site (such as PayPal cash and free Amazon gift cards).
For me, I love how easy it is to get paid to answer online surveys. You can take surveys while watching TV, while waiting for some food to cook, while doing chores, and more. It is super flexible and you can do it right from your phone or computer.
Please click here to sign up for Five Surveys.
Do you like to take surveys to earn extra cash? What other questions do you have for my Five Surveys Review?
Recommended reading: Prime Opinion Review: How Much Does Prime Opinion Pay?
The bottom line is the housing market remains in flux and is once again adjusting to the likelihood of interest rates remaining higher for longer after being teased by the potential of a falling rate environment.
This flux has created far more volatility in the housing market, particularly in recent weeks, with the MOVE Index — a measure of rate volatility in the U.S. Treasury market — jumping to as high as 121 in mid-April after ending March near 85.
Ben Hunsaker, a Beach Point Capital Management portfolio manager who is focused on securitized credit, said that during the past year, nonqualified mortgage (non-QM) AAA bond spreads have actually contracted from 155 to 135, while agency mortgage-backed securities (MBS) spreads have widened from about 118 to 134 over the same period.
“With agency spreads moving out 10 to 15 basis points, you would expect that non-QM spreads also have to widen eventually, otherwise the market’s a little bit out of sync,” Hunsaker said. “On a forward-looking basis, you would expect you don’t have the same tailwinds as you did before.”
Volatility in the Treasury market, which trades at a shifting spread below that of mortgage rates, also translates into uncertainty among housing market investors. Market observers say this normally leads to investor hesitancy and a tendency to keep more money parked on the sidelines.
“When interest rate volatility goes up, you generally have lower fund flows, which you’ve seen over the last few weeks,” Hunsaker said.
On top of that, mortgage origination volumes are projected to be flat this year in the agency (Fannie Mae, Freddie Mac and Ginnie Mae) sector, and only slightly better on the non-agency (non-QM) side compared to 2023, according to market experts.
Non-QM mortgages include loans that cannot be purchased by Fannie Mae or Freddie Mac. The pool of non-QM borrowers includes real estate investors, fix-and-flippers, foreign nationals, business owners, gig economy workers and the self-employed.
What does this market uncertainty — marked by low origination volumes and a move toward higher rates for longer — mean for the secondary mortgage market, which creates liquidity for the primary mortgage market via securitization and has a heavy finger on the scale in determining interest rates for homebuyers?
If bond yields rise in the secondary market due to a supply-demand imbalance or because of increased perceived risk, then that also tends to put upward pressure on mortgage rates in the primary market.
HousingWire interviewed a range of experts across the secondary market to get a pulse on the dynamics at play at the end of April across the following sectors: whole loan trading, agency and non-agency MBS, and mortgage servicing rights (MSRs).
Following are excerpts from their responses that reflect on the good, the bad and the ugly of the current market.
Whole loan sector
“When we came into the year, we thought we were in for as many as five or six rate cuts. That was a problem for sellers of loans. For mortgages, specifically 30-year fixed rate, it was hard to find a buyer willing to make a strong premium payment [on a whole loan purchase] when you think you are going to get four or five or six rate cuts, because that meant rates were going to fall and [mortgage] prepayments [due to refinancing] were going to increase.
“However, what we’re discovering is that those folks that had the courage to put that trade on back in the third and fourth quarter of last year are in the first quarter of this year being rewarded. Because if we are now looking at only one rate cut [in 2024], maybe even one hike — although I think that’s still a pretty low probability — but let’s just say we’re flat — then prepayment speeds should remain low.
“Higher-coupon loans now may [offer] a higher rate of return for longer than someone might have anticipated in a rate assessment that was at the beginning of 2024. … So, basically, if I’m trading [as a seller] a 7% loan right now, I may get a premium — like a solid 102 [over par] or whatever.
“The buyer is going to be happy because the prepayment speeds are likely to remain low given the current Fed stance [of higher for longer], and you can amortize that premium over a longer period of time to get a better yield. So, both seller and buyer are happier with the newer loan.“
— John Toohig, head of whole loan trading at Raymond James and president of Raymond James Mortgage Co.
“There’s a lot of cash on the sidelines. There’s a lot of money out there. This translates into whole loans too.
“In RPL and NPL, which are reperforming loans and nonperforming loans, there’s a ton of demand. We just put a bid out recently and … had over 30 bids. That tells you that folks are trying to grab those loans, either for the real estate — if it’s a nonperforming loan … such as for rentals, accumulating assets for their portfolio — or if it’s reperforming, to get cash flows at a discount.
“Those loans [RPL and NPL] are really rich on the demand side, but the only sellers are those who are forced to sell because it’s at a discount, with the stuff we’ve seen trading in the 80s [below par].
— JB Long, president of Incenter Capital Advisors
Non-agency sector
“Rate volatility has persisted in the market. It’s essentially like playing a game of Keno [with bets being placed on] what number when, and that money can be lost doing so is not surprising. From my perspective, transaction volume and mortgage origination volume has been on its back — and stayed on its back — for the last year and a half.
“ … There is a book called “Who Moved My Cheese.” And it is a very simple book that highlights a very important premise. A mouse goes looking around, looking around, looking around, and spends all its time looking for cheese. Then [after it finds the cheese], it just keeps going back to the same place, but the cheese is gone.
“The mouse forgot the whole reason he ever found the cheese in the first place, and that’s because the mouse remained nimble and adaptive, as opposed to just hitting the same button as many times as he possibly could. The point is we have to continue to evolve with an evolving market.
“ … [For example], one of the big changes in the [agency] CRT [credit risk transfer] market has been a decision by the GSEs to not issue the most subordinate [securities] tranches. They are the riskiest tranches … and they’re the ones that offer the highest return. The supply of that profile has diminished considerably because they’re not issuing it anymore.
“… So, what happens is those investors go to non-QM subs. … There’s a lot of demand for that sub now [securities backed by non-QM mortgages, particularly those linked to home equity loan products].“
— Peter Van Gelderen, specialist portfolio manager in the fixed-income group and co-head of Global Securitized at TCW
“Inflation is running hotter than expected, but I wouldn’t say it’s out of control. We’ve just been kind of consistently in a range that’s higher than what the Fed would like. .. Rates do feel rich. They do feel high, but I think the market has adjusted pretty well to where the rates are and certainly it’s within the range of expectations.
“The credit spreads [for non-agency MBS] have come in throughout the year, and so the [non-agency] securitization market is open, and it’s functioning from the originator through the aggregator to the end buyer. Everyone can still make it work.
“It’s by no means the best market anyone’s ever seen, but [non-agency mortgage] originations are growing. … It’s a market that’s diverse in product types and participants.“
— Dane Smith, senior managing director and president of Verus Mortgage Capital
[Editor’s Note: Kroll Bond Rating Agency (KBRA) expects 2024 issuance for non-agency MBS to be approximately $67 billion, up 22% year over year. Home equity lines of credit (HELOCs) and closed-end second (CES) originations are expected to account for $11 billion of the increase. KBRA’s measure of non-agency loans encompasses the prime jumbo, nonprime/non-QM, and home equity lending spaces, as well as credit-risk transfer deals.]
Agency sector
“The lock-in effect [of homeowners staying in place due to low mortgage rates] has taken so many homes off the market that you’re seeing reduced sales volume, which creates fewer issuances of mortgages so that the market doesn’t have to metabolize that many loans.
“… But you still have this issue that the Fed displaced real money investors [in the agency MBS acquisition market] for a whole business cycle, a decade, [before pulling back from the market starting in 2022] and that market just doesn’t reappear overnight.
“… We’ve never had this many people that have a loan that’s so far below prevailing rates. So, we’re in a part of the cycle that people can’t look to a model and say, ’This is what’s going to happen,’ because we’ve never been here before.
“… Lower interest rates will create more [agency MBS] issuance, but more issuance creates a wider basis [spread from Treasurys] because there’s now a lack of investor demand versus the added MBS supply, and this creates higher primary mortgage rates to account for the lower investor bids for the excess MBS supply.
“… It’s a structural issue that I would love to see more focus on … because if you don’t have a couple of trillion dollars of excess balance sheet out there somewhere that’s priced appropriately, then the homeowner is going to end up paying more for their mortgage than they otherwise would.“
— Sean Dobson, chairman and CEO of real estate investment firm Amherst
“I think agency spreads have a pretty high correlation to interest rate volatility, so when you go from relatively low interest rate volatility, like where we came into April, to where we are today, it’s a pretty big shock to the agency mortgage market.
“And accordingly, you’ve seen agency spreads widen pretty materially. [April has] been a really bad month for agency mortgage-backed securities. … The supply-demand for agency MBS is probably in balance, however, and it’s in balance because there’s very light creation of new agency MBS [about $232 billion of agency MBS issuance in Q1 2024, compared with $223 billion in Q1 2023, according to the Securities Industry and Financial Markets Association (SIFMA)].
“… The money managers who really drove spreads tightening [in the agency market] from middle of last year to the end of last year, they’ve become pretty overweight in agency MBS. … But there’s still a lot of annuity money being deployed from annuity sales, and so that should be a continued tailwind [for the overall secondary mortgage market].
“Insurance is really the 900-pound gorilla in the room driving the bus, so they matter a lot, and there’s not a lot of credit creation that can satiate their needs.“
— Ben Hunsaker, portfolio manager focused on securitized credit for Beach Point Capital Management
MSR sector
“You were able to get [MSR] trades off [much of] last year with interest rates somewhat certain. But then when the uncertainty hit [late in the year, with rates declining] that slowed the fourth-quarter [deal volume], and that’s what was reflected [in the number of deals closing] when we came into this first quarter.
“Then all this data starts coming out and it became obvious that [rate cuts were] not going to happen, and that gave a lot more confidence to the buy side. [MSRs tend to price better in a high or rising rate environment because prepayment speeds are reduced. They tend to lose value in a falling rate environment as mortgage prepayments increase, reducing the payout of MSRs.]
“So, look, pricing began to pick up [as it became clear rate cuts were not likely in the near term], but we also saw an interesting phenomenon. And that is the capital that was tied to highly efficient, highly capable [refinance- and home equity loan-focused] recapture platforms decided it was not as concerned about interest rates [going] either way.
“If rates do not move, [they are] comfortable with the pricing that they’re paying today based on just the steady prepayment speeds and the cash flows, and they’re clipping coupons each month based off of those payments coming in. However, when rates do move, they are going to be in position to recapture [those customers via refinancing].
“… So, we now have a strong appetite for the MSR asset, whether it’s out of the money — which to us is below prevailing market rates — or at the money, and we also have a strong demand for both conventional as well as government [MSR assets].
“I will paraphrase a seasoned veteran in the industry that I was talking to recently, who said candidly, ’I have never seen the market like it is today — how extremely active and busy it is.’
“I’m not calling a peak yet. There’s a lot of interest from some pretty significant [investor] sources, who have a lot of capital [and] who are still looking to buy … And it’s driven again by [a desire to] put units on their platform, maintaining efficiencies, while also then having the ability to recapture when — and who knows when — that market opportunity presents itself.“
— Tom Piercy, chief growth officer at Incenter Capital Advisors
[Editor’s Note: Year to date, Incenter has announced auctions for some $15 billion in new bulk MSR deals, which does not include privately negotiated deals.]
“I don’t know if this is the peak or if … rates are going to continue to go up from here, and MSR values are going follow suit or not. But I think people are of the mindset that it’s now higher for longer [on rates].
“It’s hard because of low [housing] inventory levels and higher interest rates to bring in new originations, but that’s the reason why so many of these servicers keep going back to the same well, with a focus on offering cash-out refinance [or closed-end second liens, or home equity lines of credit] to existing customers, given that can be a source of some volume.
“It’s been a strong [MSR] market [so far this year], with some really attractive execution levels that are, dare I say, being influenced by one’s ability to recapture these borrowers. … It’s hard to convince a borrower with a 3% note rate to cash-out refinance into a 7% note rate, but they can still tap their equity by taking out a HELOC or closed-end second without impacting the rate on their first lien.
“I’ve got probably three or four deals I’m currently working on, so [MSR] volume and pricing are strong. We’ve seen some high-5 multiple trades [historically a great deal in this measure of pricing on MSR pools].
“I think [MSR trading volume] this year is going to be on par, if not slightly better, than last year [which would mark the fourth year in a row that the MSR market has recorded trading volume near the $1 trillion level].“
— Mike Carnes, managing director of MSR valuations at Mortgage Industry Advisory Corp. (MIAC)
[Editor’s Note: Year to date, MIAC has announced auctions for some $6.4 billion in new bulk MSR deals, which does not include privately negotiated deals.)
The number one rule of the marketplace is to understand your customer. Knowing what they need, what they want and what they fear is fundamental for success. The housing market has shifted. Today it’s dominated by baby boomers who make up 39% of all homebuyers and 52% of all home sellers.
Known as “Peak 65”, in 2024 more than 12,000 people per day will turn 65. The massive age wave is cresting over the next three years, and by 2030 all boomers will have turned 65. This has baby boomers deeply concerned about retirement, as they are scrambling to prepare for life after work. The expensive and limited housing inventory today has created a scarcity mentality, that has Realtors struggling to provide appropriate housing for an aging population.
The Retirement Trifecta
To retire successfully, to meet the challenges and manage the risks boomers face, they will need to secure their own personal, Financial Trifecta of:
Income for living, care for aging and housing forever.
These critical needs are the fundamentals of retirement planning, and “Peak 65” demographics will largely reshape housing, real estate and lending for decades to come.
To understand your boomer customer is to know what they fear most. In this age of longevity, when the boomer generation must plan for decades of life after work, the big fear is running out of money. In my experience of serving boomers for more than four decades, the biggest fear is the loss of their independence, and becoming a burden on their children if they run out of money.
Accommodate the trifecta
Those Realtors, builders and originators who choose to serve this massive market shift, will need to accommodate the Retirement Trifecta. Baby boomers value relationships with those providers, that customize solutions to fit their needs and wants to retire.
Again, the trifecta is:
Income for living: In retirement, a boomer must establish sufficient and sustainable streams of income to meet the rising costs of living longer, in this new inflationary era.
Care for aging: Aging is a family affair that requires both financial as well as care-giver strategies, with the cash to pay for it.
Housing forever: Boomers must secure housing that is safe and appropriate for aging, through all the stages of retirement.
Housing costs will likely be the number one expense through retirement. Because 78% of boomers surveyed want to age-In-place, costs of home modification and maintenance will need to be carefully planned out.
Boomers in pursuit of their Trifecta will need us to understand and accommodate the urgent demands of their retirement. A housing professional’s value proposition must extend beyond building and selling homes and originating mortgage loan transactions. The housing industry must provide real solutions to the challenges that a rapidly growing, elder centric population demands. The industry professionals with the vision to adapt their services will be those who will thrive and help usher in a great new era of American housing.
The housing wealth solution
The baby boom generation has created more housing wealth than any other generation in history. Today, boomers have approximately 13 trillion in available home equity. Boomers home equity will likely grow past 20 trillion by the end of this decade. Today, boomers are living in the very asset needed to help provide for their personal Retirement Trifecta.
To solve the problems we face, and unleash the possibilities of the future, we as an industry must elevate the scope and purpose of our work. We need inspired home-building that includes universal design. We need Realtors trained in matters of aging-in-place, who are committed to guiding senior buyers into buying decisions that will provide housing security for the long-term. We also need a growing professional class of strategic mortgage planners committed to providing home equity conversion solutions that address the demands of the Retirement Trifecta.
From my experience as a home builder, and a mortgage planning specialist, having sat down at more than 4,000 kitchen tables, serving the housing needs of homeowners since 1976, this truth I confidently share with you.
“The single most impactful quality of life decision people make, is the home in which they choose to live.”
Home is where family happens, and we who provide housing have the great privilege, through our life’s work, to make the dreams of those we serve, the possible dream.
To contact the editor responsible for this story: [email protected]
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.
90k salary is a good hourly wage when you think about it.
When you get a job and you are making about $24 an hour, making over $90,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
Obviously, $90k is well above the average and median incomes; yet, most people feel like they can barely make ends meet with this higher than average salary.
But, the question remains can you truly live off 90,000 per year in today’s society. The question you want to ask all of your friends is $90000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $90000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $90k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$90000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 90k a year hourly. That way you can decide whether or not the job is worthwhile for you.
90000 salary / 2080 hours = $43.27 per hour
$90000 a year is $43.27 per hour
Let’s breakdown how that 90000 salary to hourly number is calculated.
For our calculations to figure out how much is 90K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $90000 by 2,080 working hours and the result is $43.27 per hour.
Just above $40 an hour.
That number is the gross hourly income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $5K, it would increase your hourly wage by $2.40 per hour.
To break it down – 95k a year is how much an hour = $45.67
That isn’t a huge amount of money, but every dollar adds up to over $45 an hour.
How Much is $90K salary Per Month?
On average, the monthly amount would be $7,500.
Annual Salary of $90,000 ÷ 12 months = $7,500 per month
This is how much you make a month if you get paid 90000 a year.
$90k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $90k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$90000/52 weeks = $1,731 per week.
$90000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1,731 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x 52 weeks = 260 working days
Annual Salary of$90000 / 260 working days = $346 per day
If you work a 10 hour day on 208 days throughout the year, you make $433 per day.
$90000 Salary is…
$90000 Salary – Full Time
Total Income
Yearly Salary (52 weeks)
$90,000
Monthly Salary
$7,500
Weekly Wage (40 Hours)
$1,731
Bi-Weekly Salary (80 Hours)
$3,462
Daily Wage (8 Hours)
$346
Daily Wage (10 Hours)
$433
Hourly Wage
$43.27
Net Estimated Monthly Income
$5,726
Net Estimated Hourly Income
$33.04
**These are assumptions based on simple scenarios.
90k A Year Is How Much An Hour After Taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 90000 a year after taxes?
Gross Annual Salary: $90,000
Federal Taxes of 12%: $10,800
State Taxes of 4%: $3,600
Social Security and Medicare of 7.65%: $6,885
$90k Per Year After Taxes is $68,715.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$68,715 ÷ 2,080 hours = $33.04 per hour
After estimated taxes and FICA, you are netting $68715 per year, which is a whopping $21,285 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
Taxes Based On Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $90000 income can range from $61,515 to $72,315 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $90,000 income.
We calculated how much $90,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
How Much is $90k Salary To Hourly Calculator
So, here is a handy calculator to figure out your exact hourly salary wage.
In fact, a real estate investment trusts may be a good career path to make this salary higher.
90k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $90,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower-cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $90,000 a year is just above the median income of $30000 that you would find in the United States. Thus, you are able to live an above-average lifestyle here in America.
What a $90,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to afford a home in a great neighborhood in MCOL city.
You should be able easily meet your expenses each and every month.
Saving at least 20% of your income each month.
Working to increase your savings percentage every year.
Able to afford vacations on a fairly regular basis; of course by using your vacation fund.
When A $90,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 90k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending until that happens.
Break the paycheck to paycheck cycle.
Live a lifestyle that you can afford.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$90K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 90k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $90000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$750
Savings
15-25%
$1500
Housing
20-30%
$1800
Utilities
4-7%
$188
Groceries
5-12%
$506
Clothing
1-4%
$38
Transportation
4-10%
$225
Medical
5-12%
$375
Life Insurance
1%
$19
Education
1-4%
$26
Personal
2-7%
$113
Recreation / Entertainment
3-8%
$188
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1744
Total Gross Income
$7,500
**In this budget, prioritization was given to savings, basic expenses, and no debt.
Is $90,000 a year a Good Salary?
As we stated earlier if you are able to make $90,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.
You shouldn’t be questioning yourself if 90000 is a good salary.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $90k salary would be considered a upper-middle class salary. This salary is something that you can live on very comfortably.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).
The question you need to ask yourself with your 90k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in some expensive cities, 90000 dollars a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 90,000 per year.
If you are looking for a career change, you want to find jobs paying over six figures.
Is 90k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $90000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 90k a good salary for a family?
Many of the same principles apply above on whether $90000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The cost of raising a child is expensive! Any of us can relate to that!
Did you know raising a child born in 2015 is $233,610 (source). That is from birth to the age of 17 and this does not include college.
Each child can put a dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $90,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything you want.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 90,000 per year, then the combined income for the household would be $180,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $90000 Per Year?
As we outlined earlier in the post, $90,000 a year:
$43.27 Per Hour
$346-433 Per Day (depending on length of day worked)
$1731 Per Week
$3462 Per Biweekly
$7500 Per Month
Next up is making $100000 a year! Time for six figures!!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 55,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $90K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
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More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
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It’s the fifth-largest retailer in the country and it’s already doing at least $6 billion in home furnishings, but if Home Depot ever gets really serious about the category, it could change absolutely everything in the market. And that may be coming sooner than many people realize.
Early next month, Home Depot will run its second Decor Days online promotional event, and it may be just a taste of how the home improvement giant is planning to expand its business in this category. With the remodeling and DIY segments slowing as the housing market continues to stall, home decor represents perhaps its greatest area of potential growth after the professional builder and contractor sector. (The company is already targeting the latter with both organic and external moves.)
Right now, home decor—at least, as Home Depot narrowly defines it (decor plus storage)—represents only about 4 percent of the company’s $152 billion a year in annual revenue, or about $6 billion. However, a broader interpretation of the category that includes flooring and appliances takes that figure up to around 19 percent, or about $29 billion. And by the brand’s broader-still delineation of its business, it says “decor”—which one can assume also includes lighting, some gardening, and kitchen and bath products—represents almost one-third of its overall annual revenue, clocking in at about $50 billion. (All numbers are based on the company’s 2023 fiscal year.)
As the home furnishings industry tends to define “decor” (furniture, home textiles, housewares, rugs, and decorating merchandise like wallpaper), very little is actually found in Home Depot stores. There are rugs, carpeting, wallcoverings and a selection of window treatments, but not much more. The rest of these merchandising categories are sold online, where the offerings are extensive, including cookware, small appliances, furniture and tabletop.
That’s why Decor Days, set for May 2 to 6—a shopping period leading up to Mother’s Day—is an online-only event. Following the more limited debut of this promo last October, the second iteration has expanded to feature furniture, mattresses, lighting, rugs, wall art and kitchen tools, said the company in a release. The product selection will include brands such as KitchenAid, Tempur-Pedic and Ember, as well Home Depot’s private labels, Home Decorators Collection and StyleWell.
For Home Depot, this is the latest step in its on-again, off-again romance with home furnishings. In 1991, it launched its Expo Design Center concept, an upscale, broad-based big-box store that emphasized solutions for full kitchen and bathroom projects, as well as furnishings and decorating products. The brand eventually built the business up to more than 50 locations and at one time talked about operating as many as 200. But it never got there—and while the company didn’t break out the sales of this nameplate, one can assume the gradual store closings signaled it wasn’t successful. Finally, in 2009, it shuttered the last of the 34 still in operation and walked away from the concept.
The company also dabbled with another spinoff, Floor Store, which was launched in 2000 and grew to seven locations and a call center, primarily in Texas. Again, the brand said the concept wasn’t performing as well as it had hoped before it shut down seven years later. Both of these divisions, it should be noted, were dissolved during the period of the 2008 housing crisis, when Home Depot’s overall business was severely challenged.
In 2017, Home Depot purchased The Company Store, an online retailer of primarily home textiles and soft furnishings, and it appeared to be a step closer to building out that business within its overall operation. The subsidiary continues to operate both as a stand-alone brand and on the Home Depot website, but has not been positioned as a critical part of the decor mix.
Home Depot’s archrival, Lowe’s, is also targeting the home decor segment, though it doesn’t break out its revenues specifically for the category. Lowe’s likely does more in-store decorating business than its competitor, as its customer base skews a little more toward female shoppers. Recently it, too, launched private-label furnishings and decor brands, also with larger assortments offered online.
Now that Home Depot is generally quite sound financially, in spite of a post-pandemic industry-wide slump, it is substantially expanding its pro builder business by buying up other suppliers as well as adding dedicated distribution centers (Lowe’s has a similar strategy). The company says that even though pro builders represent only 10 percent of its customer count, they generate about half of its overall annual revenue.
So, where does that leave decor? Far behind—but still potentially Home Depot’s next big driver of growth.
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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.
When getting your first credit card, consider factors such as the card’s annual fees, interest rates, rewards or benefits, and credit limit. Choose a card that aligns with your financial goals and spending habits, and make sure to understand the terms and conditions, including the consequences of late payments or carrying a balance. Additionally, aim to use the card responsibly to build positive credit history while avoiding overspending and accumulating debt.
With so many credit cards on the market, getting your first card can be overwhelming. What type of card do you need? How often should you use the card? Is it possible to have a credit card without racking up large amounts of debt you can’t repay?
Keep reading for answers to these frequently asked questions about getting and using a credit card for the first time.
What Is a Credit Card?
A credit card is a type of revolving account that allows you to spend up to a preset limit. Every month, the issuer calculates your minimum payment due based on your recent activity.
One of the main differences between a credit card and a loan is that loans have a fixed number of payments. With a credit card, you can keep making purchases until you reach your preset spending limit, and each time you make a payment, it frees up some of your available credit. This allows you to keep using the line of credit over to purchase goods and services over and over.
Types of Credit Cards
Before you apply for your first credit card, make sure you understand the differences between secured and unsecured credit. If you want to open a secured credit card, you’ll have to make a deposit. The issuer uses that deposit to set your credit limit. For example, if you deposit $500, you should start out with a limit of $500.
One of the biggest advantages of opening a secured credit card is that you can’t overspend. If you don’t pay back the money you borrowed, the issuer can close your account and keep the deposit.
An unsecured credit card doesn’t require a deposit, so the issuer sets your spending limit based on your income and credit history. If you don’t repay what you borrowed, the company can send your account to collections or do a charge-off, both of which would have a negative impact on your credit health.
Pros and Cons of Getting a Credit Card
Like any financial product, credit cards have several pros and cons. Review them carefully before you decide to apply for your first credit card.
Advantages of Credit Cards
The main advantage of having a credit card is that it gives you extra purchasing power. For example, if you don’t have quite enough money saved for your auto insurance premium, you can use a credit card to make your payment.
Having a credit card also helps build a strong credit profile, provided you use the card wisely. Your credit score is based on several factors, such as your payment history and the number of credit accounts you have open. When you open a credit card, you have an opportunity to demonstrate responsible financial behavior, which could improve your credit.
Credit cards also have these benefits:
Fraud protection. Credit cards have several features designed to guard against fraud. Additionally, it’s easier to deal with fraudulent transactions on a credit card than on a debit card. If you use a debit card, the fraudulent transaction ties up some of your money until you can convince the bank to issue a provisional credit. When you use credit cards, you’re using the bank’s money, so none of your money is ever at risk.
Rewards. Many companies offer credit cards that give you points, miles, cash back, and other perks. Rewards credit cards let you earn valuable benefits based on your everyday spending habits. For example, if you enjoy dining out, you may want to look for a credit card that offers extra cash back on restaurant purchases.
Wide acceptance. Thousands of merchants accept credit cards, so you don’t have to worry about carrying cash or coming up with another form of payment. Carrying a credit card may even help you avoid having a hold put on your funds when you rent a car or book a hotel room.
Disadvantages of Credit Cards
One of the biggest disadvantages of using a credit card is that it’s easy to overspend, especially if you have a high limit. To reap the benefits of using a credit card without the stress of worrying about your minimum payment, charge only what you can afford to pay in full each month.
Many credit cards also have high interest rates. If you don’t pay your balance in full every month, you’ll have to pay interest on all purchases, cash advances, and balance transfers. Interest charges add up quickly, making it difficult to pay off your balance.
Although credit cards can be very beneficial, you need to use them responsibly. Late payments, missed payments, and other credit mishaps can hurt your credit for many years to come.
How to Choose Your First Credit Card
Before you apply for your first credit card, take time to check your credit score and report. If you know your credit, it will be easier to find a credit card company willing to issue a card to someone with your credit profile. If you have poor credit, you may need to open a secured card or accept a credit card with a low limit before you can qualify for better cards.
When you’re ready to apply, look for a card that fits your needs. If your goal is to build credit, search for a card with automatic credit line reviews or other features designed to help users improve their financial situations. If you travel frequently, consider getting a rewards credit card to help you earn cash back or bonus points.
Now you’re ready to apply for a card. When you fill out the application, you’ll need to provide your name, contact details, and information about your financial situation. If you aren’t approved, you’ll receive a letter explaining the reason for denial.
Tips for Using Your Credit Card Wisely
To avoid the drawbacks associated with credit cards, follow these tips:
Make on-time payments. Payment history has a big impact on your credit health. To build a strong credit profile, pay your bill on time each month.
Pay more than the minimum. If you only pay the minimum amount due, it may take several years to pay your balance in full. Avoid high interest charges by paying more than the minimum due each month.
Don’t go over your limit. Going over your limit increases your credit utilization ratio, which is a red flag to lenders. Many companies also charge over-limit fees that make exceeding your limit expensive, so try to avoid doing this.
Limit your applications: Every time you apply for a credit card, the issuer checks your credit report, resulting in a hard inquiry. Lenders see many hard inquiries in a short amount of time as a sign that you may be in financial trouble, so it’s best to limit the number of inquiries on your record.
You can visit Credit.com today to get started on your credit card journey by comparing different cards, checking your credit score and credit report card, and learning more about how to manage your finances responsibly.
(Bloomberg) –As delinquencies on multifamily mortgages pile up, lenders who had bundled those borrowings into securitizations known as commercial real estate collateralized loan obligations are racing to stave off trouble.
To keep the share of bad loans from spiking too high — a development that would cut the issuers off from the fees they collect on the CRE CLOs — they’ve been furiously buying them back. The lenders acquired $520 million of delinquent credit in the first quarter, a 210% increase on the same period last year, according to estimates by JPMorgan Chase.
It’s the latest sign of strain among the $79 billion of loans packaged into CRE CLOs, a market which grew in prominence in recent years as Wall Street financed syndicators who bought up apartment complexes with the intention of renovating them and boosting rents. When interest rates surged, many borrowers whose floating-rate loans were bundled into the securitizations were caught off guard and began falling behind on their payments.
To buy the defaulted loans, some lenders have been borrowing the money from banks and other third parties using what are known as warehouse lines, a type of revolving credit facility. It’s surprising they haven’t had more trouble accessing that debt given how quickly loans seemed to be deteriorating in quality heading into this year, said JPMorgan strategist Chong Sin.
“The reason these managers are engaged in buyouts is to limit delinquencies,” he said. “The wild card here is, how long will financing costs remain low enough for them to do that?”
One reason they have is that risk premiums, or spreads, on commercial real estate loans have tightened materially since last November. As a result, even with a more hawkish tone on the path of rates, the all-in cost of financing is still lower than where it was late last year. Still, there’s no guarantee it will remain that way.
“If the outlook for the Fed shifts materially to hikes or no rate cuts for a while, that might lead to a sharp increase in delinquencies, which can stifle issuers’ ability to buy out loans,” said Anuj Jain, a strategist at Barclays Plc, who expects buyouts to continue as distress increases in the sector.
Market Surge
CRE CLO issuance surged to $45 billion in 2021, a 137% increase from two years earlier, when buyers of apartment blocks sought to profit from the wave of workers moving to the Sun Belt from big cities. Three-year loans would give them time to complete upgrades and refinance, the thinking went.
Fast forward to today and the debt underpinning many of the bonds is coming due for repayment at a time when there’s less appetite for real estate lending, insurance costs have skyrocketed and monetary policy remains tight. Hedges against borrowing cost increases are also expiring and cost significantly more to purchase now.
Those blows helped increase multifamily assets classed as distressed to almost $10 billion at the end of March, a 33% rise since the end of September, according to data compiled by MSCI Real Assets.
“There was so much capital flowing into that space to real estate operators and developers, and that led to a lot of reckless lending,” said Vik Uppal, chief executive officer at commercial real estate lender Mavik Capital Management., who avoided the space.
The pain is now filtering through to the CRE CLO market. The distress rate for loans that were bundled into these bonds rose past 10% at the end of March, according to CRED iQ, compared with 1.7% in July last year.
The firm defines distress as any loan that’s been moved to a special servicer or is 30 days or more delinquent. Some other data providers prefer to wait until payments are 60 days or more overdue before using that classification.
Short Sellers
The outlook for the sector has caused short sellers, who borrow stock and sell it with the intention of buying it back at a lower price, to target lenders who used CRE CLOs. That’s because the issuers own the equity portion of the securities, so take the first losses when loans sour.
Short interest in Arbor Realty Trust stood above 37% on Monday, the highest level on record, according to data compiled by S&P Global Market Intelligence.
“The multifamily CRE CLO market was not prepared for rate volatility,” said Fraser Perring, the founder of Viceroy Research, which is betting against Arbor. “The result is significant distress.”
Arbor Realty declined to comment. Reached by phone on Tuesday, billionaire Leon Cooperman said that Arbor founder Ivan Kaufman has been “a good steward of my capital” and had correctly seen the need to position the company defensively more than a year ago.
CRE CLOs appealed to some investors because the issuers tend to have more skin in the game than issuers of commercial mortgage-backed securities. Critics argue the products contain loans of lower quality than you’d find in a CMBS, where loans are typically fixed rate so are, in theory at least, less exposed to interest rate hikes.
“These vehicles are a way for borrowers that need speculative financing that they often can’t get from elsewhere,” said Andrew Park, an analyst at nonprofit group Americans for Financial Reform. “CRE CLOs package the reject loans from CMBS.”