If you feel that your cost for health insurance is too high, you’re definitely not alone: A recent analysis from the National Health Interview Survey (NHIS) found that 7% of Americans did not have health insurance in the first three months of 2023.
To help offset the costs and help Americans avoid crippling medical debt, the federal government offers tax relief for those with high-deductible plans if they choose to open a Health Savings Account to set aside funds to pay for medical costs. A Health Savings Account (HSA) might be just the thing to help alleviate your financial pain, but you’ll first need to qualify for the program.
What Is an HSA?
An HSA is a dedicated savings account created in 2003 to help people with high-deductible health insurance plans afford their medical bills. It is not the same thing as a Flexible Spending Account (FSA), an employee benefit that allows you to set aside pre-tax dollars to cover medical spending. Notably, an FSA is a “use it or lose it” plan: If you don’t spend the funds you had deducted from your paycheck by the end of the plan year, you forfeit the money.
An HSA, on the other hand, can be set up by an individual or by an employer, and the money you contribute is yours to keep for life. Like FSAs, HSAs provide tax benefits; however, HSAs are not available to everyone.
Who Is Eligible for an HSA?
HSAs are available exclusively to people who are insured under a high-deductible health plan. These plans may be offered by their employers or purchased individually. As of tax year 2015, IRS rules state that a high deductible must be at least $1,300 for individual coverage or $2,600 for a family plan. If your deductible meets those minimums, you can open an HSA.
Are HSA Contributions Tax Deductible?
Yes. Contributions to your HSA can be deducted from your taxes, even if you opt for the standard deduction instead of itemizing. This will reduce the amount of money you need to pay taxes on and will either lower your overall tax bill or increase your refund. If your employer takes HSA contributions directly out of your paycheck, those funds are considered pre-tax dollars and result in the same tax savings.
Are Distributions From an HSA Taxable?
Maybe. When you use funds from your HSA to pay for qualified medical expenses, you will not pay taxes on the money you withdraw. You may use the funds immediately or wait for years before dipping into your HSA account to pay your doctor’s bills. You will also not pay taxes on any interest earned in your HSA account if it is used to pay medical expenses.
Once you reach age 65, you may withdraw funds without penalty to pay for anything. If you use the money for non-medical expenses, however, you’ll be expected to pay income tax on the money. For many people, this will still result in tax savings, as most retirees are in a lower tax bracket than they were while they were working, and won’t be charged as much on the money as they would have been in their prime earning years.
Are There Limits to HSA Contributions?
Yes. For tax year 2023, savers with an individual health plan can contribute a maximum of $3,850. Those increase in 2024 to $4,150. Those with a family plan can contribute up to $7,750 for the year and $8,300 in 2024.
Are HSAs Connected to the Affordable Care Act?
Not exactly. HSAs were first offered in 2003 under President George W. Bush. Although each year changes are made to the contribution limits and deductible requirements, changes in the Affordable Care Act (also known as “Obamacare”) would not necessarily have an impact on these accounts.
How Does an Individual Open an HSA?
If your employer doesn’t offer an HSA plan as part of your benefits package, or if you buy insurance on your own, you can open an HSA with any HSA bank as long as your health plan qualifies. It’s always a good idea to shop around for the best interest rates and lowest fees to make the most of your investment.
Many people think purchasing their first home is financially out of reach. But in many cases, that’s not true. Today’s aspiring homebuyers have numerous options to make homeownership a reality. From government-sponsored homebuyer assistance programs to state initiatives, there are many ways to obtain down payment assistance, closing cost aid, lower interest rates and more.
Homebuyer Assistance Program Options
Here’s an overview of some of the homebuyer assistance programs available. Explore the criteria and see if you qualify.
Freddie Mac and Fannie Mae Support
Fannie Mae and Freddie Mac are government-sponsored entities (GSEs) that help to make mortgage loans more affordable for borrowers. They offer a variety of money-saving programs for homebuyers, including the following popular options.
Freddie Mac BorrowSmart®
The Freddie Mac BorrowSmart® program provides assistance up to $1,500 for income-qualified borrowers to cover their down payment or closing costs. Down payment funds can be used on eligible programs that offer minimum down payments as low as 3%. Buyers must complete pre-purchase counseling with the Homeownership Preservation Foundation (HPF).*
Who is the Freddie Mac BorrowSmart® program best for?
Low-income borrowers whose income falls within 50.01% to 80% of the area median income
Homebuyers seeking manufactured homes and who have a moderate income between 80.1% and 100% of the area median income
First-time homebuyers or repeat homebuyers who meet qualifying criteria
Fannie Mae HomeReady®
Fannie Mae HomeReady® offers financing up to 97% loan-to-value (LTV) for a primary residence. This mortgage program is not restricted to first-time buyers and offers flexibility around income sources, down payments and mortgage insurance requirements. Homeownership education is a requirement of the HomeReady mortgage program.
Who is the HomeReady program best for?
Very low and low income borrowers whose income does not exceed 80% of area median income
Borrowers with limited cash to make a down payment
Homebuyers who may have supplemental income from boarders or renters
Freddie Mac Home Possible®
Freddie Home Possible® offers qualified borrowers a 3% down payment financing option. The program also lowers mortgage rates for eligible homebuyers. First-time homebuyers must complete a homeownership education class.
Who is the Home Possible program best for?
First-time homebuyers and low- and moderate-income borrowers whose annual income does not exceed 100% of the area median income or a higher percentage in designated high-cost areas
Current homeowners looking to downsize
Low- to moderate-income borrowers purchasing or refinancing a single-family residence, 2-4 unit property, condominium, co-op, manufactured housing (with certain restrictions) or a planned unit development property
Fannie Mae 97% Loan-to-Value (LTV)
The Fannie Mae 97% LTV financing option allows borrowers to purchase or refinance a home with a down payment as low as 3%.
Who is the Fannie Mae 97% LTV financing option best for?
Homebuyers who exceed the HomeReady Mortgage income limit but still want a low down payment – at least one borrower on the loan must be a first-time homebuyer.
Current Fannie Mae loan holders who wish to do a limited cash-out refinance that allows borrowers to cash out up to 2% of the new loan amount or $2,000, whichever is less – this type of refinance is designed to help borrowers who need a small amount of cash for unexpected expenses, such as home repairs or medical bills.
Freddie Mac HomeOne®
The Freddie Mac HomeOne® mortgage is a low down payment program available to qualified first-time homebuyers, no cash-out refinance borrowers and other homebuyers, regardless of income level or geographic location.
Who is the Freddie Mac HomeOne® mortgage best for?
First-time homebuyers who have a 3% down payment but earn over the median income requirements set for the Fannie Mae HomeReady® or Freddie Mac Home Possible® programs. Only one borrower on the loan has to be a first-time homebuyer.
Homeowners who wish to do a no cash-out refinance. Also known as a rate-and-term refinance, this may allow a borrower to lower their interest rate and payment and potentially eliminate mortgage insurance.
RefiNow™
RefiNow™ is a program for homeowners who want to decrease their monthly payments by refinancing to a fixed-rate mortgage at a lower rate.
Who is the RefiNow™ program best for?
Homeowners with a Fannie Mae-owned mortgage
Borrowers at or below 100% of the area median income
Homeowners with a mortgage LTV ratio up to 97% and a debt-to-income (DTI) ratio up to 65%
Government Support
Government-backed loans make homeownership more attainable for first-time borrowers, even those with lower credit scores. The loans feature lower interest rates and require low or no down payments.
Federal Housing Administration (FHA) Loans
FHA loans are backed by the government. These popular loans typically have lower and more flexible down payment requirements than conventional ones, and they can be a good option for borrowers with lower credit scores.
Who are FHA loans best for?
First-time homebuyers purchasing a primary residence
Low-income buyers who don’t qualify for a traditional loan or need a lower down payment option
Department of Veterans Affairs (VA) Loans
VA loans are available to eligible veterans and active-duty service members. VA loans have no down payment requirement** on home purchase loans, lower closing cost limits, lower interest rates and more relaxed credit requirements.
Who are VA loans best for?
Eligible service members and veterans
The Benefits of Homebuyer Assistance Programs
Homebuyer assistance programs make it more affordable for first-time homebuyers, as well as other homebuyers, to make purchasing a home a reality. Some of their main benefits include the following:
Lower down payment. One of the most significant perks of homebuyer assistance programs is they often allow you to buy a home with little or no money down.
Lower interest rates. Depending on the program you select, you may qualify for a low-interest loan.
Closing cost assistance. Some homebuyer assistance programs help with the fees and payments associated with finalizing your loan.
Education and counseling. To qualify for assistance, some programs require that you attend a homeownership education class, which can help you make informed decisions.
Things to Consider
Homebuyer assistance programs can be a great solution for helping qualified individuals purchase a home. But it’s important to consider the following when comparing your options:
Program eligibility. Do they limit assistance to certain groups, such as first-time homebuyers or veterans? Can you take advantage of the program if you’re purchasing a multi-family home? What are the income requirements?
Your down payment. How much can you or do you want to put down on the home? For most programs, you will still need to have some sort of down payment.
Your credit score. While homebuyer assistance programs often have broader credit guidelines, credit is a key factor in obtaining a mortgage.
Terms, conditions and the expiration date. Every type of assistance program will have its own terms and conditions, so be sure you understand all the fine print — including any deadlines or expiration dates.
See Which Affordable Lending Products You Qualify For
If you’re ready to buy a home, talk to a Pennymac Loan Expert today. We’ll guide you through the process, review your possible affordable lending options, answer all your questions and find the right fit for you.
*Must meet the requirements of Freddie Mac Home Possible®, standard conforming Freddie Mac, or Pennymac Manufactured Home requirements in addition to Freddie Mac BorrowSmart® requirements. Primary residence purchase only. All occupant borrowers must complete pre-purchase counseling with the Homeownership Preservation Foundation (HPF). An upfront, non-refundable, $99 homebuyer counseling fee is required to be paid by the borrower to HPF at the time of the required counseling.
**As long as the sales price does not exceed the appraised home value.
Share
Categories
home buying prequalifying mortgages buying a home down payment
Inside: Are you looking for ways to make money on the side? This guide has everything you need to know about the best side hustles for men. From turning your passion into profit with these gig ideas!
In this post, I collaborated with my husband. Together, we combined our ideas and expertise after work to generate ideas centered around how men specifically can make money. His input and insights were remarkably vital to this post.
Break free from the 9-to-5 grind and embark on a journey towards a fulfilling side hustle – it’s a game-changer for gentlemen looking to beef up their bank accounts.
In the ever-evolving landscape of side hustles, now is your year to supercharge your earnings. There’s a treasure trove of opportunities waiting for you to delve into, all while indulging in your passions. From tech-savvy endeavors to unleashing your creative genius and practical gigs that pay, our guide is here to unveil the ultimate side hustles that can set you on the path to financial triumph.
Ready to boost your income? Fantastic! You’re on the path to prosperity.
Here, we’ll explore the 40 best side hustles for men in 2024.
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.
Embracing the Hustle: Why Men Should Consider Side Hustles
Side hustles are more than mere cash generators – they’re the keys to a world of freedom, flexibility, and endless growth potential.
If you’re a gentleman with a hunger for financial prosperity, a side hustle can be your golden ticket. It empowers you to call the shots and maintain your existing commitments while paving your way to success.
While women tend to lean towards side hustles for women, it’s high time for men to dive headfirst into the captivating world of side hustles!
How can a guy make extra money?
Making extra money doesn’t have to be monotonous. Whether you’re a tech whizz, an avid creator, or a hands-on worker, there’s something for you.
There are so many ways to make money. I just read this story about a college kid starting with $300 and turning his sticker side hustle into a full time business. 1
These options can yield solid income by leveraging your unique skills and interests. Want to learn more? Keep reading; we have plenty of ideas for you!
Top Side Hustles for Men
As my hubby said, extra income takes the financial strain off the normal job. With side hustles, you can choose how you want to spend your time – watching sports, playing video games, or making money.
The choice is yours!
Right now, learning to make money online for beginners is the most popular place to start.
1. Invest in Real Estate
Around here at Money Bliss, we always stress how to make your money work for you and real estate is no different.
Real estate investment is a golden opportunity that not only offers a steady income but also the potential for property value to soar. Keep in mind, that it’s a long-term game that requires a significant upfront investment.
However, there are many options like flipping properties, renting properties, or even investing through a REIT. Dive into the world of real estate to maximize your returns. Let your money do the heavy lifting for you.
2. Day Trader
Many men opt for trading stocks and options as a side hustle for several compelling reasons.
Trading offers flexibility, as your research can be done at any time, making it convenient to manage along with a nine-to-five job.
It has an immense profit potential, given the volatility and opportunities present in the global stock markets.
Many want to earn a rate of return greater than the average return of the S&P 500 – a common benchmark index for that competitor inside them.
Finally, trading presents an opportunity for continual learning and development, as successful trading requires staying updated with financial news, stock apps, market analysis, and economic trends, thereby enhancing one’s financial literacy.
Trade & Travel
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
3. Become an Umpire or Referee
Sports fans, here’s your calling! Transform your passion into a profitable part-time gig by becoming a sports referee.
There is a HUGE shortage of umpires and referees.2 Rates per game can range from $20 to $60, and over time, you can earn even more as you referee older leagues. Plus many leagues are paying more to incentivize refs to come back to the fields.
Not only does it assure good pay, but it also lets you enjoy your favorite sport, exercise, and create exhilarating moments. Check it at your local club or league for training and to get started today.
This is something my brother-in-law did all the time and easily made 200 dollars a day.
4. Participate In Medical Studies
If adding to medical knowledge interests you while earning, consider participating in clinical trials.
Compensation depends on various factors like the study’s length and complexity. You can earn $50 to $300 a day!
It’s worth considering if you’re comfortable with potential risks and lengthy commitments. Websites like ClinicalTrials.gov or your local hospital could help you get started. It’s a unique way of contributing to medical research while making money. Do check the risks before diving in!
5. Moving and Heavy Item Delivery
Feel like adding some muscle? Moving and heavy item delivery might be your perfect hustle. If you’ve got a buddy, a solid back, and a truck (or can rent one), this is the gig.
You could easily earn about $20-$25 an hour helping people move houses or delivering large items. Opt for evening or weekend gigs to fit around your day job.
Get started by advertising your services or using apps like TaskRabbit or NextDoor. An excellent way to stay fit and earn some extra dollars at the same time!
6. Rent Out Your Extra Room
Do you have a spare room? Then, transform that neglected space into a cash cow.
Airbnb or VRBO can help you lease it out to travelers. Its user-friendly platform lets you manage rentals with aplomb. Plus, you get the chance to grow into a SuperHost.
Another option is to look at investing in a duplex where you live on one side and rent out the other.
7. Woodworking
This takes a special talent like my father-in-law had. He and his boys were known for crafting Adirondacks chairs, bedroom furniture, and patio tables.
So, if you have this woodworking knack, then this side hustle could be a golden ticket. The key to success is to perfect your craft to a few select items to be efficient with your time, so, you can better the profit. Let your handyman skills shine and earn you some extra cash!
The average earnings of a woodworking side hustle in the U.S. can range from approximately $500 to $3,000 or more per month, depending on factors such as the complexity of projects and marketing efforts.
8. Beekeeping
Honey, take note! If you’re not deterred by bees and are interested in agriculture, try your hand at beekeeping. This might be a family affair – like my daughter’s soccer coach.
Honey sells for around $20 a pound, and bees virtually do all the work! Plus, you contribute to pollination and the environment.
Combined with pest control services (like removing large nests), you can amplify your earnings. However, getting comfortable with bees might take time. But, once you do, the sticky sweet liquid gold that is raw honey could put a sizeable amount of money in your pocket.
9. Detail Cars
If you have a passion for cars and cleanliness, consider detailing cars as your side hustle. There’s something gratifying about transforming a dusty vehicle into a sparkling gem.
Depending on the quality of your service, you can earn up to $500 in a single weekend! Start by experimenting with your own car and build a portfolio to attract customers.
You’ll need tools like a good shop vacuum and detailing brushes. I have seen plenty of men showcasing their work on social media with before-and-after photos. Polish those wheels and drive towards profit!
10. Landscaping Side Hustle
Armed with green fingers? Eager to perform hard physical labor? Then a side gig in landscaping can do wonders for your wallet.
From regular lawn care to fall leaf cleanup to full-on backyard redesigns, there’s something for everyone. Look to websites like Lawn Love to match you with your first clients.
Potential income for this venture depends on how many hours of your time you are willing to trade.
11. Drive for Ridesharing Apps
Like to drive? Awesome, do it for cash! Ridesharing apps like Uber and Lyft got you covered.
Be your boss, and work on your terms.
You need to make sure you have a nice car, proper insurance, and learn the busiest routes to maximize your earnings. Do pay heed to your vehicle’s wear and tear, though. However, this is one of the jobs that pay weekly.
12. Snow Plowing
Living in a snowy region? Consider snow plowing. This is a quick way to make money! I can attest to my kids quickly making $200+ a day from snow shoveling.
Even better is to have business clients that need this service. As such, all you need is a reliable truck or SUV with four-wheel drive and a snowplow. Plus, you can upsell by offering extra services like salting and hand shoveling.
This lucrative side gig can result in you earning thousands each winter. It’s an opportunity to put your vehicle to good use and tackle Mother Nature for a handsome payout.
16. Knife Sharpening
If you have a knack for precision and patience, knife sharpening could be a rewarding side hustle. Businesses like restaurants butcheries, and home cooks are potential clients.
All you need is a quality knife sharpening setup and knowledge of the right techniques. Advertising your services on social media can help bring in customers. Who knew such an unusual skill could be so profitable?!
17. Plasma Donation Centers
While this one is probably more geared to side hustles for college students have you ever considered donating plasma for cash?
You help others, and it earns you up to $500 a month. It’s a generous deed with a minimal time commitment.
Search for “where to sell plasma in [your city]where to sell plasma in [your city]” to get started. Remember, most places have similar requirements to blood donation and may require a short medical screening first.
18. Bookkeeping
Good with numbers? Have an eye for detail? Look into bookkeeping.
Services like generating invoices, managing accounts payable, and preparing tax returns are always in demand. Overhead costs are low as you only need a computer and accounting software. Plus, payment is high at around $50 per hour!
For most bookkeepers, referrals are their bread and butter. To start out check the local Chamber of Commerce to start meeting other business people.
Turn your love for crunching numbers into a lucrative side hustle.
Earn Extra Income with Bookkeeping
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.
Show Me How
19. White Label Software
Dip your toes into software reselling by using white-label software. This is great for someone who is good with technology and understands SaaS. However, no coding or IT background is necessary.
All you need to do is buy “seats” of an existing software at a wholesale rate, then resell them at retail.
Use any software name or category on Google and add “White Label” at the end to find options. Build a website, market your product, and start earning by becoming a digital intermediary! Start earning by becoming a digital middleman!
20. Work as a Translator
In the United States, nearly 20% of the population, roughly 67.8 million people, speak a language other than English at home, with Spanish, Chinese, Tagalog, Vietnamese, and Arabic being the most prevalent.3 If you’re fluent in another language, this opens doors to flexible and potentially lucrative side hustle in translation and interpretation.
Earnings in the language translation side hustle can fluctuate based on the client’s requirements and your preferences. For instance, you might find translation opportunities on platforms like Freelancer.com offering rates of up to $60 per hour, while translators on Fiverr can charge as much as $125 per project.
21. Pallet Flipping
Are you inclined towards an entrepreneurial middleman ship? Pallet flipping could be your ticket to substantial income.
This is similar to buying storage units unseen and flipping for a profit. With pallet flipping, the process involves buying and reselling pallets of customer returns, overstocked items, or unsold merchandise, often from major online platforms. Connect businesses that need pallets to ship their products with those looking to get rid of them.
Whether you start small or aim high, scalability and considerable earnings are within reach. Check out this Pallet Flipping book to get started.
22. Help Others Write Resumes
If you have a talent for crafting impressive resumes, there’s a lucrative side hustle waiting for you. Job seekers are constantly looking for professionals who can help them stand out in the competitive job market.
According to our research, professionals skilled in resume writing can start charging for their services on platforms like Fiverr, often earning anywhere from $50 to $150 per resume service including cover letters and LinkedIn profiles.
Mastering the art of creating effective resumes, including understanding industry-specific keywords, is the secret sauce to success in this field. By assisting others with their career aspirations, you can collect a decent income while making a meaningful impact on their job prospects.
This is also a popular digital product to sell on Etsy.
Earn More Writing
You can make money as a freelance writer.
Learn techniques to find those jobs and earn the kind of money you deserve!
Plus get tips to land your first freelance writing gig!
Start Now
23. Laundromat
Here’s an unconventional yet profitable idea – owning a laundromat! It’s an already profitable model (as it has been around for years) and most processes are automated.
Integrating some digital marketing skills and making tweaks like improving your online presence could earn you significant profit. But be aware, that this does involve an initial investment. Scope out opportunities to buy a laundromat near you.
Also, another trend is starting a laundry business where you take care of others’ laundry needs. Who would have thought laundry could be so rewarding?
24. Start a Consulting Side Hustle
Do you have expertise in a specific area? Consider starting a consulting side hustle.
Consulting is often about solving problems and providing strategies. Whether you’re skilled in marketing, HR, tech, or any other field, your knowledge can be valuable to businesses. Use your existing network to start and gradually grow your client base.
With the right marketing and a robust network, consulting can be highly rewarding. Honestly, this is a popular job after retirement for many. So why wait? Start monetizing your wisdom today!
25. Furniture Flipping
Ever heard of furniture flipping? It’s about buying used furniture at low prices, revamping it, and selling it for a profit.
Furniture flippers can be a goldmine especially if you know what to look for. Unearth the potential in old furniture and flip it into a profit with this artistic hustle.
You can source items from yard sales, flea markets, or online. Sanding and repainting can transform items into showpieces. This gig is perfect if you love hands-on projects that require creativity and patience. Remember, a great photo makes the sale for your final piece!
26. Walk Dogs
Dog lovers, rejoice! Here’s the perfect gig for you – dog walking. If you love playing with our furry friends and love the outdoors, why not get paid for it?
Apps like Rover can connect you with dog owners in your area in need of walking services. Dog walking can fetch (pun intended!) you around $10–$18 per walk. If you’re passionate about spending time with fidos, this side hustle is a pleasure that pays!
Rover
Get paid to play with pets!
Rover makes it easy and promotes you to the nation’s largest network of pet owners.
Earn money doing something you love.
Become a Sitter
27. Find Odd Jobs in Your Area
Not afraid to roll up your sleeves? Awesome! Odd jobs can be a treasure trove of opportunities.
Think yard work or furniture assembly. Seek out these gigs on platforms like TaskRabbit, Nextdoor, Craigslist, or Fiverr, and a few hours of work can earn you a tidy sum. It’s the perfect hustle for those in search of quick cash injections!
TaskRabbit
Find local jobs that fit your skills and schedule.
With TaskRabbit, you have the freedom and support to be your own boss.
Plus set your own rates!
Get Started
28. Photographer
Are you skilled at capturing beautiful moments? Turn your passion into a lucrative side hustle by becoming a photographer.
With average rates of earning 500 dollars per day, your earnings could easily surpass those of a full-time job. You can explore areas like wedding photography, senior photos, or commercial product photography.
The best way to gain clients is through referrals or a fundraiser. Grab your professional camera and start capturing memorable moments while boosting your income. Focus your lens and let your creativity shine!
29. Unusual Rentals
Get creative! As this man demonstrated, unconventional rentals like a power washer can earn you thousands of dollars every month. 4
You can rent out spaces like your garage, or backyard to pet owners, or even invest in items like portable hot tubs or bounce houses. Platforms like Airbnb, Sniffspot, Vrbo, and Neighbor can help you get started.
Your unused space or items can transform into extraordinary sources of income. Dive into the world of rentals and unveil massive profits!
30. Cryptocurrency
Crypto investment is a popular side hustle that can yield incredible returns (and significant losses).
However, keep in mind that the cryptocurrency market is volatile, and you should only risk what you can afford to lose.
Crypto is not for the faint-hearted, but with the potential for high returns, it could be your golden opportunity.
31. Teach Music Classes
Do you possess a hidden musical talent? Then, teach music class!
With countless adults and children seeking music lessons, you can make good money sharing your skills. Offer piano lessons, guitar instruction, drumming, or any instrument you excel in. You can use platforms like Skillshare or provide private lessons.
On average, music instructors can charge anywhere from $40 to $100 or more per hour for online lessons depending on how advanced the lessons are. Sharing your passion for music while making money sounds like music to the ears, doesn’t it?
32. Sell on eBay
Have you ever visited a garage sale? Turn those finds into a profitable hustle by selling on eBay. eBay is an excellent platform for selling a wide range of items.
Some personal successes include flipping items like electronics, old iPods and iPhones, sneakers, and furniture. Successful eBay selling boils down to recognizing profitable items and securing a bargain purchase.
Are you ready to flip and fill your wallet with extra cash? You could sell on Facebook Marketplace, too.
33. Reselling on Amazon
Reselling products on Amazon is the trend of the hour. Scout for items cheaper in your area than online, including toys, limited edition shoes, or seasonal delicacies.
Consider trying dropshipping to curate your product lineup without worrying about inventory. Armed with just an Amazon seller account and a keen eye for trends, you can dive into this lucrative venture!
34. Start A Freelance Business
Have niche skills? Time to cash them in by freelancing. This is a booming market.
Bid on projects that resonate with your skill set: graphics, writing, social media management, website design – you name it! Going freelance offers flexibility, and autonomy and can bring in some serious cash.
Be sure to create a compelling portfolio to attract clients and make sure you have solid reviews.
35. Play Games Online
Game on, fellas! Who said you can’t turn your gaming hobby into a money-making machine?
You can pocket money by playing games like Blackout Bingo and Solitaire Cube.
Just remember you can win real money, but you can suffer losses as well. Also, be sure to check if cash tournaments are available in your region.
36. Watch Videos Online
Do you enjoy watching videos? You can earn while indulging in your favorite pastime! Platforms like InboxDollars and MyPoints offer cash rewards for watching videos. Plus, you can claim a $5 sign-up bonus on InboxDollars.
While the earning potential might be relatively low, it’s a seamless background activity. You can make money while relaxing on the couch. So, why not unwind with your favorite video content and get paid for it?
Inbox Dollars
Since 2000, InboxDollars has paid over $80 Million in cash rewards to members for doing everyday online activities like reading emails, taking paid surveys, or playing games.
The InboxDollars community allows members to influence future products and services.
Sign Up Now
37. Start a Podcast
Do you have a passion for conversation? Starting a podcast is not just about speaking your mind; it’s a captivating path to potential profit.
With over 177 million podcast listeners in the U.S. alone, your words have a vast audience waiting to tune in.5
Dive into topics like BBQ techniques, current events, or life’s twists and turns, and you might be surprised to know that top podcasters earn money with sponsorships.
38. Delivery Gigs
Do you love driving, but want to limit contact with people? Consider delivery gigs.
Food delivery apps like DoorDash, Uber Eats, and Instacart can pad your wallet. You can make deliveries on your schedule while retaining control over when and where you work.
These gigs typically pay $15 to $20 per hour, plus tips. Some companies even allow bicycle deliveries for a bit of exercise. Deliver your way to financial success with this flexible side hustle.
39. Start a YouTube Channel
Do you have a passion for digital creativity? Consider starting a YouTube channel – the “king of side hustles.”
Use your unique perspective to engage viewers, whether through personal vlogs, tech reviews, or evergreen content. The potential is boundless.
YouTubers earn money from ad revenue and sponsorships. With a staggering number of users on YouTube, why not tap into this vast audience?
Established channels can rake in thousands per video. However, remember that channel success hinges on content quality, relevance, and consistency. Get behind the camera and share your creativity with the world!
40. Freelance Writing
If you have a way with words, freelance writing is an attractive side hustle. Typically, writing is the most sought-after freelance service.
You can choose from various writing niches, including copywriting, blog writing, ebook, social media content creation, or creating detailed reports. Impress clients with samples of your best work.
For many, this was the first step before they went into to the world of blogging.
Earn More Writing
You can make money as a freelance writer.
Learn techniques to find those jobs and earn the kind of money you deserve!
Plus get tips to land your first freelance writing gig!
Start Now
42. Take Online Surveys
Have some free time and a reliable internet connection? Consider taking online surveys.
Websites like Swagbucks, Panel Place, or Survey Junkie are on the lookout for your opinions. It’s simple: sign up, share thoughts, and cash out! Look out for the highest-paying survey sites to maximize your profits.
Taking online surveys can typically amount to around $50 to $200 per month, depending on the frequency and length of surveys taken.
While it won’t make you a fortune, it’s an easy way to make a couple extra bucks during downtime. Start voicing your opinions for money today!
Swagbucks
Swagbucks is a fun rewards program that gives you free gift cards and cash for the everyday things you already do online.
Earn points when you shop at your favorite retailers, watch entertaining videos, search the web, answer surveys, and more!
Start for FREE
Get $10 Sign Up Bonus
43. Find a Flexible Part-Time Job
Finally, a part-time job can provide a steady cash stream.
Right now, you can find hiring signs everywhere! This is a great way to trade your time and make a little bit over minimum wage.
Apply to those vacant positions now, and sail towards extra cash!
Striking the Balance: Juggling Regular Jobs and Hustles
This is where my husband is always the most concerned because juggling your full-time job along with your side hustle can be tricky. Even more so, if you have a family.
The key is to create a feasible schedule that allows you to manage both without affecting the quality of work.
Keeping a time log can help identify how you can spare time for your hustle. Remember, side hustles should not hinder your regular job.
The goal is to make extra money, but not lose precious time with your family, so you must strike that balance for a smooth side-hustling journey. It’s all about dedication, time management, and commitment.
Now, are you ready to toss that juggling ball up in the air?
Frequently Asked Questions about Side Hustles
Personally, we feel the most profitable side hustles for men is real estate investment, followed closely by trading stocks and options.
These side hustles have a higher amount of money needed to start investing. So, we decided to consider your skills and interests to make a big impact now.
Making an extra $2000 a month is a game of adopting multiple hustles or honing in and being successful with one.
More importantly, it’s all about identifying your strengths, and interests and leveraging opportunities from there. Keep grinding, and you’ll find that fortune favoring your extra efforts!
Earning an extra $1000 a month might seem daunting, but it’s definitely achievable. Combining side hustles like driving for DoorDash, medical research studies, and flipping items can help you hit that target. Remember, the key lies in maximizing your skills, and efficiency, and choosing the right hustles. Embark on your side-hustling journey today and watch as your bank account flourishes!
Which Side Hustle for Guys Do You Like?
Now that we’ve explored these exciting side hustle opportunities, it’s time for you to take action. Which one resonates with you the most?
To truly excel in the world of side hustles, it’s crucial to approach your ventures with the right mindset. Your skills, hobbies, and interests should align with your chosen hustle, ensuring that you’re not just chasing dollars but pursuing something that genuinely excites you.
Remember that side hustles require time, commitment, and sometimes an upfront investment. The higher you’re willing to climb, the better your view (and the payouts) will be!
Don’t wait any longer. Start your side hustle journey today, and unlock the door to financial freedom and personal fulfillment.
Source
CNBC. “21-year-old spent $300 to start his sticker side hustle—now it brings in up to $38,000 a day: I was ‘unprepared’ to go viral.” https://www.cnbc.com/2023/10/30/how-sticker-side-hustle-invalid-jp-went-tiktok-viral-became-lucrative.html. Accessed October 30, 2023.
CBS News, “Youth sports referee shortage grows amid aggression from parents, coaches.” https://www.cbsnews.com/philadelphia/news/youth-sports-referee-shortage-grows-amid-aggression-from-parents-coaches/. Accessed October 30, 2023.
Census.gov. “Nearly 68 Million People Spoke a Language Other Than English at Home in 2019.” https://www.census.gov/library/stories/2022/12/languages-we-speak-in-united-states.html. Accessed October 30, 2023.
Express. “‘Anyone can do it’ Man shares unusual way to make money without leaving home.” https://www.express.co.uk/finance/personalfinance/1623166/money-making-tips-earn-from-home-fat-llama. Accessed October 30, 2023.
Exploding Topics. “Number of Podcast Listeners.” https://explodingtopics.com/blog/podcast-listeners. Accessed October 30, 2023.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
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!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Debt consolidation loans usually do not hurt your credit in the long term. Hard inquiries that occur when you apply for a loan can briefly affect your score. Conversely, making your loan payments on time can gradually improve your credit.
Debt consolidation loans usually do not hurt your credit in the long term. These loans can improve your credit by combining your debt into one account. But debt consolidation can initially knock your score down a bit, so it’s important to learn as much as possible about this strategy.
How does a debt consolidation loan work?
Debt consolidation combines multiple debts into a single loan. This reduces your overall interest and helps you organize your debt, making payments more manageable. Debt consolidation loans won’t hurt your credit in and of themselves.
However, hard inquiries that occur when you apply for a consolidation loan can temporarily lower your credit score. There are several ways to consolidate your accounts, and each method has advantages and drawbacks depending on your unique circumstances.
Personal loan
A personal line of credit, or personal loan, is available at any time and can be used to pay off debt quickly. Personal loans can improve your credit by diversifying your credit profile. Paying off debt with a loan rather than with a credit card can also reduce your credit utilization, which may improve your credit health.
Remember that this process involves taking out a loan that you must pay back on time. You may also want to reconsider this option if your current credit rating will limit you to high interest rates on personal loans.
Borrowing from a 401(k)
If you have a 401(k) retirement account, you can borrow up to half this balance as an interest-free option to pay off debt. Borrowing from a 401(k) doesn’t affect your credit, though you must repay the borrowed amount in five years to avoid penalties.
It’s important to remember what a 401(k) is for—retirement. Taking out funds for short-term debt payments can significantly detract from your retirement savings. You may also have to deal with tax repercussions when taking this action.
Home equity loan or line of credit
Home equity loans or lines of credit are perhaps the riskiest forms of debt consolidation, but they also offer some significant benefits. Lenders will offer you a loan and use your home as collateral. If you fail to pay off the loan within the amount of time agreed upon, you could lose your home.
You must have excellent credit to take out a home equity loan or line of credit. When you apply, lenders will hit you with a credit check, which could initially lower your score. The impact on your credit may not be severe, but these loans can also accumulate very high interest.
How does debt consolidation affect your credit?
Each debt consolidation method can affect your credit positively and negatively. Here are a few areas it may have a negative impact:
Credit applications: Applying for a personal loan or a balance transfer card prompts a hard inquiry to be performed on your credit. Hard inquiries can bump down your score by 5 to 10 points, and they can stay on your report for one to two years.
Average age of credit: The ages of your credit accounts matter—typically, the older, the better. Opening a new account lowers your average credit age, which may initially negatively impact your credit.
On the other hand, debt consolidation tends to positively impact the following categories:
Credit utilization: A new debt consolidation account will usually increase the amount of available credit you have. As long as you don’t begin spending significantly more after opening the new account, you’ll be using less of your available credit, which will benefit your credit.
Payment history: Consistently paying off your new loan on time will likely positively impact your credit.
Alternatives to debt consolidation
If debt consolidation doesn’t feel right for you, there are other debt relief options to help restore your peace of mind.
Balance transfer
A balance transfer lets you move debt onto a single credit card with a lower interest rate, allowing you to pay off your debts for less. Many balance transfer cards offer 0 percent APR during an introductory period, providing an interest-free window to pay off debt.
If you decide to pursue a balance transfer card to pay off debt, investigate the card’s APR following the introductory period. Your interest rate may take you by surprise and skyrocket if you don’t do your due diligence.
Debt management program
Debt management services can help by counseling you regarding your options when you’re struggling with debt. A debt management program will likely involve a counselor negotiating lower interest with creditors and potentially closing credit cards.
Visiting a debt management counselor won’t harm your credit at all. However, your credit report may reflect any debt management programs you enroll in until you no longer use them.
Debt settlement or bankruptcy
Debt settlement is negotiating with creditors to pay significantly less money than you owe to have your debt forgiven. Bankruptcy is a long-term legal process that helps people organize and sometimes eliminate their debt.
These two options should be a last resort when struggling to pay off debt, as they can have a significantly adverse effect on your credit. Both debt settlement and bankruptcy will remain on your credit report for seven to 10 years. However, if you need to take care of massive debt now and take wise financial steps in the future, these processes could ultimately be the right solution for you.
Should I consolidate my debt?
Before pursuing debt consolidation, it’s important to take a comprehensive look at the reasons you’re interested in consolidating debt and your plans for the foreseeable future.
Do you have a high interest rate?
If the interest on the debt you owe is 20 percent or more, you’ll likely save money by consolidating debt. However, certain balance transfer options charge exorbitantly high fees. Research beforehand to determine which option saves you more money.
Are you missing payments?
Keeping track of all of your accounts can be stressful. If remembering to pay your bills has been a struggle, and you’ve repeatedly missed payments, debt consolidation may help.
Consolidating your debt could simplify your financial life by allowing you to take care of all payments at once. This will also benefit your credit in the long run, since missed and late payments can harm your credit health.
Do you need excellent credit in the short term?
If you plan to take out a loan or a mortgage soon, you may need to safeguard your credit at all costs. Since many debt consolidation methods will put a temporary dent in your credit, it may be wise to hold off until after a lender has approved you.
Ultimately, whether you decide to pursue debt consolidation and which method you choose depends on the weight of your debts and what would benefit your credit most. If you’re still on the fence, it’s a good idea to consult a financial advisor before making decisions that could have long-lasting consequences.
Whatever decision you make, remember to keep your credit health at the forefront of your mind and take the steps to repair your credit to expand your financial opportunities.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial, or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Paola Bergauer
Associate Attorney
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.
In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
Inside: Intuit bought its popular Mint app and now it shutting down leaving users scrambling to find an alternative. This guide will help you understand Intuit’s decision to move Mint to Credit Karma and provide a list of alternatives for personal finance management.
In an era where personal finance apps are thriving more than ever, the shutdown news of Intuit’s Mint app comes as a shock for many.
When I heard the news, I couldn’t believe my ears… moving Mint’s feature to Credit Karma – a credit repair app?!?!
Once I got over the shock, I knew you wanted the best information out there to decide on what to do next.
Our guide here is dedicated to helping Mint users navigate the ongoing changes and prepare for what’s next in their personal finance journey.
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.
The Downfall: Intuit’s Decision to Shut Down Mint
Mint has always been a beacon in the realm of top budgeting apps; mostly due to the fact it was free.
However, Intuit’s decision to close Mint marks the end of an era. Yet, there is a teaser… Mint is propelling people to Credit Karma.
Here is a statement in the Mint App News:
“Credit Karma is thrilled to invite all Minters to continue their financial journey on Credit Karma, where they will have access to Credit Karma’s suite of features, products, tools and services, including some of Mint’s most popular features.”
Mint App News1
Mint’s commendable service, free albeit with ads, which has been helping many people manage their finances effectively, will be missed by Minters—time to understand why this happened.
Why is Mint Shutting Down?
A surprising fact is that a free personal finance app like Mint isn’t a sustainable business. Most free apps have marginal direct costs associated with their services, unlike personal finance apps. They heavily rely on expensive data aggregators to gather the necessary financial data, causing a steady revenue loss for Mint per free user.
Intuit’s model has never been able to cover these costs leading to a revenue crisis. That was a key reason why I believe Intuit decided to shut down Mint. While Intuit denied Mint’s expenses being material in their quarterly earnings calls in 2023, they did note however they are looking to grow their consumer base across all of their products. 2
The Controversy Surrounding Mint’s Shutdown
While the financial reason behind Mint’s closure is understandable, this decision has provoked a wave of consternation among the users. Massive user outcry on Reddit underscores the integral role Mint played in their lives, and some even accuse Intuit of abandoning its commitment to free financial management resources.3
Given the fairly recent acquisition of Mint into Intuit, this may be surprising for many including these Twitter users.10
Not totally surprised to see this move to kill @Mint by @Intuit. @CreditKarma had plans to compete directly with Mint while independent & it makes sense to have a single consumer portal.
Very worried about the execution. 😬 https://t.co/pki8J3R2lg
— Adam Nash (@adamnash) November 1, 2023
Intuit is shutting down budgeting app Mint and is trying to get people to instead use Credit Karma, an app without any budgeting functionality https://t.co/j2AXvLtd6F
— bart (@bart_smith) November 2, 2023
Pt 1/2 Opened my @mint app today to find that they had moved the platform over to Credit Karma! What the hell!? And worst of all, they got rid of all of the features that I liked about Mint! I loved Mint, it helped me take my personal finances seriously!!
— Trevbotplaya (@trevbotplaya) October 25, 2023
When is Mint shutting down?
Yes, Mint is being shut down. Mint’s curtains will be drawn on January 1, 2024.
From this date, users will no longer be able to access their accounts or use any Mint services as we know them today.
So, don’t be caught off-guard; stay prepared and choose the right alternative before Mint bids adieu. We have other options below to help you guide this transition.
Mint User’s Guide: Next Steps to Credit Karma
Okay, one piece of advice I always give at Money Bliss is to plan and carve your own money journey. So, let’s move from panic to planning:
What should Mint users do now?
It’s natural to feel perturbed by Mint’s shutdown. Yet, the smart step is to immediately switch to planning mode.
Some crucial actions include exporting your transactions from Mint for future use and deleting your account once you have secured all necessary information.
In this interim period, also make sure to explore personal finance app alternatives, considering their features and support services, to find one that fits your needs perfectly.
Starting Afresh: Alternatives to Mint App
In light of recent events, here are the best apps available for Minters.
Switching to a new personal finance app might feel daunting initially, but there’s no need to worry. This era offers a wide array of options, many of which employ advanced technology and provide a user-friendly experience.
Look for apps that offer seamless data importation from Mint with a CSV file, comprehensive financial overview, dependable security features, and preferably, competitive pricing as well.
Diving into Details: A Comparison of Mint Alternatives
When comparing Mint alternatives, consider factors such as user interface, functions, cost, and customer feedback. Each app has its unique strengths.
For instance, YNAB stands out for budgeting, and Quicken shines in terms of portfolio management, while Simplifi offers a user-friendly interface. You may pick a budget app based on your budgeting preference, such as budget by paycheck or zero based budgeting.
Research thoroughly to find the app that delivers your personal financial needs the best.
YNAB
YNAB, or You Need a Budget, stands out for its award-winning budgeting system. It’s not a clone of Mint, but rather, it takes a unique approach to helping people proactively track spending and work towards financial goals.
YNAB stands out in personal finance management since it allows for utmost user control with its four simple pillars:
Give Every Dollar a Job
Embrace Your True Expenses
Roll with the Punches
Age Your Money
Additionally, YNAB presents flexible customization options for category names, a feature that enhances user experience, along with an open-source toolkit for extensive reporting while maintaining supreme user data privacy.
Learning Curve: YNAB requires diligence and customization in its early stages, but offers a robust set of personalized budgeting tools once users cross the learning curve.
Import Existing Mint Transactions: Yes 4
Price: Free 34 day trial and then a subscription-based model of $14.99 monthly or $99 annually.
Most people struggle with YNAB because of the steeper learning curve as well as getting one month ahead on their money. This is YNAB’s rule #4 to age your money, which is a smart money move and one we do personally.
No need to compare YNAB vs Mint anymore.
YNAB
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Pros:
Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.
Start 34 Day Free Trial
YNAB vs Mint
Simplifi
Simplifi by Quicken is a budgeting app that strikes a fine balance between complexity and simplicity.
Cheaper than a gallon of gas per month, Simplifi by Quicken a great bargain that offers a clean, intuitive, and clutter-free interface. It allows users to effortlessly track their spending, monitor savings goals, capture bills, and more.
Learning Curve: Simplifi is smooth due to its user-friendly interface and detailed instructions
Import Existing Mint Transactions: Yes 6
Price: Starting at $2.39/ month for new users
Simplifi has been rated as a preferred choice for people who want a fuss-free app to manage finances.
simplifi
Manage your money less in 5 minutes each week.
Reach your money goals with confidence!
“The easiest, most comprehensive way to both see where your money is going and plan for future expenses.”
Start FREE Trial
Quicken
This is the personal finance software I have been using for over 25 years.
Quicken offers robust personal finance management tools that make it easier to track expenses, income, and investments. Many people complain their budgeting feature isn’t up to par, but their cash flow reporting overcomes this as you can see your spending and plan accordingly.
Quicken Classic Deluxe: Robust & feature-rich | Best for power users
Quicken Classic Premier: Robust & feature-rich including investment| Best for serious users
Quicken Classic Business & Personal: Best-in-class business features integrated with our flagship personal finance product
Quicken might be the most suitable option for current Mint users due to its compatibility and ease of use. Unlike Mint, Quicken is not free, but its expansive features such as detailed expense tracking, report generation, and robust investment tracking arguably justify the cost. Plus you can add attachments of receipts into the transactions.
Learning Curve: Quicken may present a significant learning curve for beginners.
Import Existing Mint Transactions: Yes 5
Price: Starts at $4.19/ month for Quicken classic for new users. All plans have a 30 day money back guarantee.
It’s a perfect match for anyone requiring a comprehensive personal finance tool. You can sync between multiple devices as I covered in my Quicken review.
Quicken
Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.
I have used this platform for over 20 years now.
Pros:
Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.
Cons:
Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.
Save 40% on New Memberships
Our Review
Monarch Money
Monarch Money’s unique selling point is its robust data connectivity. Armed with state-of-art financial transaction infrastructure that integrates with various data aggregators, Monarch promises effective budgeting and financial planning. It’s not free but offers a 7-day free trial to test its features.
Its subscription charges are $14.99 per month or $99.99 per year, a fair trade for its impressive service.
This is the latest top budget app to surface as true competition.
Learning Curve: Monarch Money boasts an intuitive and user-friendly interface, making the learning curve minimal and easy for new users.
Import Existing Mint Transactions: Yes 7
Price: Try Monarch Premium for free for 7 days. Then choose between the $14.99/month or annual $99/year plan.
Monarch Money facilitates financial planning with goal setting and forecasts, allows Mint transactions importation for history preservation, has customer-driven rapid development, provides a multi-user platform for collaborative financial management, is available across multiple platforms, and provides efficient customer service.
Tiller Money
Tiller Money might be the perfect solution for spreadsheet enthusiasts. This unique budgeting tool uses spreadsheets to manage finances and daily transaction updates. It is highly customizable with categories and reports to help you stay on top of your spending.
Tiller Money is a definite contender in the personal finance app scene.
Learning Curve: While Tiller Money requires a basic understanding of spreadsheets, users can easily customize it to suit their personal budget needs.
Import Existing Mint Transactions: Yes 8
Price: Starts with a free trial for 30 days and then charges a reasonable annual fee of $79.
A notable feature is its ability to pull and categorize credit card transactions, providing an in-depth view of spending habits.
Tiller Money
Your financial life in a spreadsheet, automatically updated each day.
Tiller is the fastest, easiest way to manage your money with the unlimited flexibility of a spreadsheet.
Update your finances in one place, so you can take control of spending, optimize cash flow, and confidently plan your financial future.
Pros:
Tiller automatically updates Google Sheets and Microsoft Excel with your latest spending, balances, and transactions each day.
No more tedious data entry, CSV files, or logging into multiple accounts.
You can customize everything and finally track your money, your way.
Try Tiller Free
Empower
Empower, formerly known as Personal Capital, is a comprehensive personal finance app that provides tools for managing income, expenses, assets, and liabilities.
With its intuitive interface, Empower users can seamlessly track their spending, create custom budgets, and even get insights into their net worth which can be updated on a monthly basis, thereby aiding in effective financial management. Additionally, their retirement planner is one of the best available – plus for free.
Learning Curve: Empower has a relatively intuitive interface, making the learning curve fairly manageable for new users.
Import Existing Mint Transactions: No 9
Price: Free to use
The downfall is Empower provides wealth management services, so there is a heavy sales pitch to bring assets under management.
Empower
Empower offers powerful tools to help you plan your investment strategy along with basic budgeting features and a great net worth tool.
As a free app, Empower can help you to save money, save time, and even make more money.
Get Started
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
How to Move From Mint to Credit Karma?
Yep, I gave you the alternatives to Mint first.
Yet, the goal for Intuit is to move to Credit Karma. The core issue right now is while we do know which features will be transferred from Mint to Credit Karma. We are not sure as Minters if we will like the new layout and features offered with Credit Karma.
Right now, the budgeting feature will not be offered at Credit Karma, which I know for many Money Bliss readers is a big feature lost.
Learn more on how to move from Mint to Credit Karma.
Intuit’s Current Portfolio of Products
Intuit buying out Mint in 2020, you may be wondering about the current products offered by Intuit. 10
Intuit offers a range of financial and tax preparation products, including
Most notable is the success of TurboTax and Credit Karma.
Frequently Asked Questions
Once Mint shuts down, it’s crucial to know that Intuit will no longer have access to your financial data. All account and transaction information associated with your Mint profile will be deleted permanently from Mint’s databases.
To prevent any loss of important financial information, make sure to export all your transactions from Mint before the shutdown date arrives.
This highlights the importance of regularly backing up financial data as you may not know the next steps a company has for their product.
Yes, you can migrate your Mint data to a different personal finance app before Mint shuts down.
After you export your transactions from Mint, you can then import them to your new finance management app, ensuring you seamlessly carry over all essential financial information and continue managing your finances smoothly. However, bear in mind that the steps to do this may vary depending on the app you choose as your next financial companion.
Coping with the Closure: Dealing with the Loss of Mint
For long-time Minters, Mint’s shutdown can feel like losing a trusted companion. It’s natural to feel a sense of loss and uncertainty. I completely understand. That is why I haven’t switched from Quicken because of the long-term history.
However, remember that technology promises continual growth and evolution. There are numerous other personal finance apps out there, likely even better ones suited to your needs.
So, take a deep breath, do your research, and move on to the next chapter of your financial journey with confidence.
Source
Intuit MintLife. “Intuit Credit Karma welcomes all Minters!” https://mint.intuit.com/blog/mint-app-news/intuit-credit-karma-welcomes-minters/. Accessed November 1, 2023.
Intuit. “Event Details – Intuit Investor Day 2023.” https://investors.intuit.com/events-and-presentations/event-details/2023/Intuit-Investor-Day-2023/default.aspx. Accessed November 1, 2023.
Reddit. “Thoughts on the Mint shutdown from Monarch CEO (and first Mint product manager.” https://www.reddit.com/r/mintuit/comments/17llnbu/thoughts_on_the_mint_shutdown_from_monarch_ceo/. Accessed November 1, 2023.
YNAB. “File-Based Import: A Guide.” https://support.ynab.com/en_us/file-based-import-a-guide-Bkj4Sszyo. Accessed November 1, 2023.
Quicken. “Quicken for Windows: Importing Address Book Records From Another Program.” https://www.quicken.com/support/quicken-windows-importing-address-book-records-another-program. Accessed November 1, 2023.
Quicken Simplifi. “How to Manually Import Transactions.” https://help.simplifimoney.com/en/articles/4413430-how-to-manually-import-transactions. Accessed November 1, 2023.
Monarch. “Move data over from Mint to Monarch.” https://help.monarchmoney.com/hc/en-us/articles/4411877901972-Move-data-over-from-Mint-to-Monarch. Accessed November 1, 2023.
Tiller. “How to Easily Export Mint Transactions to a Spreadsheet.” https://www.tillerhq.com/exporting-mint-transaction-data-into-a-google-sheet-spreadsheet/. Accessed November 1, 2023.
Empower. “Am I able to see more than 3 months of data in Empower Personal Dashboard after I first link my account?” https://support-personalwealth.empower.com/hc/en-us/articles/201170160-Am-I-able-to-see-more-than-3-months-of-data-in-Empower-Personal-Dashboard-after-I-first-link-my-account-. Accessed November 1, 2023.
Intuit MintLife. “Intuit to Acquire Mint.com.” https://mint.intuit.com/blog/press/intuit-to-acquire-mint-com/. Accessed November 1, 2023.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
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!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Editorial Disclosure:Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Snapshot: While this card does offer some limited cash-back perks, its real purpose is as a credit-building card. If you have poor or bad credit and want a Visa you don’t need a security deposit for, this may be an option to consider.
Revvi Visa® Credit Card
Earn 1% Cash Back Rewards on All Purchases with Revvi!
The Perfect Card for Not-So-Perfect Credit
If approved, pay the $95 Program Fee to open your account
Fast and easy application process with a response provided in seconds!
Reports to All Three Major Bureaus to Build Your Credit History
Eligible for a Credit Line Increase after 12 months of on-time payments!
Choose between 2 free card designs and 4 Premium designs
Accepted by Merchants Across US & Online
Free Credit Monitoring Powered by TransUnion
Simple, Powerful Mobile App
Pros
Cons
The application process is fast, and there’s potential for approval, even with bad or poor credit
If approved, your starting credit limit is only $300
The lender reports to all three credit bureaus to help you build your credit
You’ll have to pay an initial program fee of $95 to open your account
You can easily manage your account on a mobile app
APR is high at 35.99% Fixed
You’re backed by Visa’s basic fraud protections
See rates and fees
Table of Contents
Full Review of Revvi Visa® Credit Card
What You’ll Like About This Card
The Drawbacks
Is It Worth It?
Revvi Visa® Credit Card FAQ
Full Review of Revvi Visa® Credit Card
The Revvi Visa® credit card may be a good choice for individuals with poor or bad credit who want to work on building their credit (and make some cash back). This card offers 1% cash back on all purchases, and you may be eligible for a credit limit increase after a year of timely payments and responsible account management.
What You’ll Like About This Card
Unsecured Credit Card
Most “bad credit” credit cards require you to submit an initial deposit to “secure” your line of credit. These are good options when unsecured credit cards (typical credit cards) are harder to get when you have a lower credit score.
Fortunately, the Revvi Visa® credit card doesn’t require you to make an upfront deposit, and functions like a regular, unsecured credit card.
Cash Back Rewards
We love a cash back rewards card (who doesn’t). The Revvi Visa® credit card keeps their cash back rewards simple with 1% cash back on everything. You don’t have to keep track of categories to maximize your cash back – rest assured that you’re getting cash back on all purchases.
Quick Application Process
The fast application process makes it easy to see if you might be approved for this card. Generally, you can expect a response in minutes, and you don’t need a good or even fair credit score to be considered.
Build Good Credit
Once you have the card, you can make timely payments to ensure positive reporting to all three credit bureaus. When you want to build credit with a credit card, it’s important to look for one that reports to all the major bureaus.
Good Mobile App
Revvi offers a mobile app that makes it easy to manage your card and keep up with your balance and payments. And since this is a Visa card, it’s accepted by the vast majority of merchants and backed by Visa’s basic fraud protections.
You’ll also get credit monitoring via TransUnion, so you can see your report with that agency and better understand how your actions are impacting your credit.
The Drawbacks
Additional Fees
The Revvi Visa® credit card does come with an annual fee of $75 the first year and $48 each year after, as well as a monthly participation fee. You also have to pay a program fee to open your account once you’re approved, and that’s $95.
In the first year, those two fees alone stack up to $170. Since rewards points for this card are based on the amount you pay on your account—and not just the amount you charge—you’d have to make $17,000 in payments in a year to get enough cash back to cover the first year’s annual fee and the program fee. You also can’t redeem your points until your card has been open in good standing for at least 6 months.
Since the initial credit limit is only $300, it’s unlikely you’d even earn enough cash back to cover the $48 annual fee in the second year.
See rates and fees
Is It Worth It?
The Revvi Visa® may not be an optimal choice if you’re looking for a cash back rewards card. But it’s still a potentially solid contender for those with bad credit who don’t want to put down a deposit for a secured credit card.
When you’re approved for this card, you get a credit limit similar to a secured card, but you only pay the $95 program fee instead of the total credit-limit-based deposit amount. Note that you do need a checking account to open this card.
Revvi Visa® Credit Card FAQ
What is the initial credit limit for the Revvi credit card?
If you’re approved for the credit card, you’ll get an initial credit limit of $300. After 12 months, you’re automatically considered for a credit limit increase as long as your account is in good standing, which means you’ve paid your bills on time every month and haven’t run up a balance past your credit limit.
What bank is the Revvi card?
MRV Banks issues the Revvi card. It’s a legitimate, federally insured bank with main offices in Missouri.
How do I pay my Revvi bill?
Revvi offers a number of options for payments. You can manage your account, including payments, through the bank’s mobile app. You can also mail in your payment or make it via phone or online.
A higher resale value of your home is one of the many rewards for carrying out home improvements and renovations. But remodeling projects cost money, and financing them can be expensive, depending on the amount you borrow and the type of loan you use.
Options for home improvement financing include home equity loans (HELOCs), home equity lines of credit, and cash-out refinancing. These types of financing allow homeowners to borrow against the equity they have built up in their home. Other financing options are personal loans, credit card financing, and government programs. Any of these could be the best option depending on the circumstances.
Here’s what homeowners need to know about the different types of home improvement loans and what factors they should consider before settling on a lender.
1. Home Equity Loans
If you have built up equity in your home, which means you have paid off a portion of your mortgage, a home equity loan could be the right choice to finance home improvements. To find out how much equity you have, subtract the balance due on your mortgage from the assessed value of your home. For example, if your home is worth $400,000 and you owe $200,000 on your mortgage, you have $200,000 in equity. A bank will let you borrow up to a certain percentage of that amount — up to 100% in some cases.
A home equity loan acts like an additional mortgage, where the homeowner pays back the loan in monthly payments. The payments are in addition to the original mortgage payments. Home equity loans often have low fixed interest rates because the home is used as collateral for the loan. However, there are closing costs to consider that could be between 2% to 5% of the loan amount.
On the plus side, home equity loans usually qualify for the mortgage interest tax deduction as long as the funds are used to substantially improve the home.
If you have plenty of equity and need a sizable amount to finance a big project, a home equity loan could make sense. You will receive a lump sum payment, and the improvements you make may increase the value of your home.
Advantages of a Home Equity Loan
Disadvantages of a Home Equity Loan
Low interest and terms from five to 30 years
There are origination fees and closing costs
You can borrow up to 100% of your home’s equity
Funds are disbursed as one lump sum, so borrowers need to budget carefully
The interest is tax deductible
The monthly payments add to existing mortgage payments
💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.
2. Home Equity Line of Credit (HELOC)
A home equity line of credit also borrows against the equity you have built up in your home. But the funding works more like a credit card and is not distributed as a lump sum payment. A bank will allow a qualified homeowner to borrow up to a preapproved limit and then pay it back. HELOC loan terms are typically between five and 20 years.
Interest rates differ for HELOCs because they are adjustable and rise and fall over the life of the loan. However, interest is only due on the outstanding balance — the amount borrowed — not the full credit limit.
The amount you can borrow through a HELOC depends on your credit score, income, and the value of your home. Your lender can change the loan terms, too. For example, if your credit score drops during the loan term, your lender may reduce the amount you can borrow.
One advantage of a HELOC is that you can use funds from the line of credit, make payments, and then borrow again. A HELOC is a better option if you have smaller projects to do over a longer term. You can borrow as you go, only pay interest on how much you use, and avoid paying closing costs.
Advantages of a HELOC
Disadvantages of a HELOC
No closing costs
Interest rates may go up and down
Interest payments are tax deductible
Interest rates are typically higher than those for a home equity loan
You only pay interest on the amount you use
Your lender can change the amount you can borrow and the repayment terms
3. Cash-Out Refinancing
Another option to fund home improvements is cash-out refinancing. In the case of cash-out refinancing, a homeowner takes out a new mortgage that is higher than their original mortgage. The borrower then pays off the original mortgage and uses the leftover cash to fund home improvements. The amount of cash they can access depends on the equity they have in the home.
For example, let’s say the homeowner currently owes $100,000 on a $300,000 mortgage. They take out a new mortgage for $350,000, pay off the old mortgage ($300,000), and now have $50,000 left to spend on home improvements. The catch is that their new monthly mortgage payments will be higher because they have increased the size of the loan, and they will have to pay origination fees and closing costs.
Money from refinancing does not have to be used to improve a home; it can be used to consolidate debt, pay for school, or anything else the borrower wants to use it for. Also, the cash is not considered income from the IRS and is not taxable.
Cash-out refinancing may be a good option if interest rates have dropped since you took out your original mortgage. You can take out cash and pay a lower interest rate on the new loan. You might also be able to reduce the term length of your original mortgage and pay off your home loan sooner. This will be the case if the total cost of your new loan including closing costs is less than the total cost of your original mortgage.
Advantages of Cash-Out Refinancing
Disadvantages of Cash-Out Refinancing
You will still have one monthly mortgage payment
Your new mortgage will have a higher balance
You might be able to lower your interest rate and loan term
Your loan term will start from the beginning, so you will be paying off your mortgage for longer
You can use the cash for anything
If interest rates have gone up, your monthly payments may be higher
4. FHA 203(k) Rehab Loan
An FHA 203(k) rehab loan is a loan taken out at the time of the home’s purchase. These loans are typically used for a fixer-upper, when the owners need funding right away for improvements. This could be the best type of loan for home improvements for big projects. The advantages of this type of loan for the borrower are that they have funds available for improvements from the outset, and they only have to pay back one loan with one set of closing costs.
These loans are also backed by the government and come with benefits. Borrowers can qualify with a less-than-stellar credit score (typically, a minimum of 620), and the down payment expected is lower than it would be for a traditional mortgage loan (as low as 3.5%).
Two things to remember are that the renovation costs must exceed $5,000 for the borrower to qualify for this type of loan, and the closing process can take a long time. Lastly, work covered under an FHA 203(k) loan must start within 30 days of closing, and projects must be completed within six months.
This type of loan may be worth considering if you are buying a fixer-upper that requires significant work, and your credit score qualifies you for this type of loan.
Advantages of a FHA 203(k) Rehab Loan
Disadvantages of a FHA 203(k) Rehab Loan
One loan and one set of closing costs
Only old homes or homes in bad repair may qualify
Federally-backed with low interest rates and low closing costs
You are likely to be charged costly monthly mortgage insurance
You can qualify with a lower credit score
Cash must be used for specific home improvements
5. Personal Loans
If you don’t have sufficient equity in your home to take out a home equity loan or a HELOC, a personal loan is an option. A personal loan will come with a higher interest rate, adjustable or fixed, because this type of personal loan is unsecured. Your home is not used as collateral. These loans are processed much quicker than home equity loans or HELOCs, sometimes the same day.
Personal loan terms are shorter, from two to five years, which will mean higher monthly payments, and you’ll have to pay closing costs.
These loans may work if you lack equity or if you have an emergency, such as a broken water heater or HVAC system. That said, they are probably one of the most expensive borrowing options.
Advantages of a Personal Loan
Disadvantages of a Personal Loan
Fast financing
Higher interest rate than mortgage loans
You can qualify for a good interest rate even with an average credit score
Shorter terms, which increases monthly payments
Your home is not used as collateral and is not at risk
Fees and possible prepayment penalties
6. Credit Cards
A credit card can be used for financing, and it’s a fast, simple way to access funds. The amount you can spend on improvements will depend on your credit limit (although you could use multiple cards), and the interest charges are likely to be much higher than other financing options.
A credit card can be a good option if you think you can finish your renovations quickly and pay off the balance on the card. Look for cards with an introductory 0% annual percentage rate (APR). Some cards allow you up to 18 months to pay back the balance at that introductory rate. If you can pay off the balance by the deadline, that’s interest-free financing. However, check for fees and other hidden costs.
The danger here is that if you don’t pay off the balance by the end of the interest-free rate, the interest charges can skyrocket. That’s why credit cards should not be used for long-term financing.
A credit card can be a great option for home improvement financing if you can find one with a low introductory rate, low fees, and you are confident you can pay off the balance within the introductory rate period.
Advantages of Credit Card Financing
Disadvantages of Credit Card Financing
Fast financing
High interest rates, particularly after a low introductory interest rate period has expired
Some cards offer 0% introductory rates
Possibly low credit limits
Less paperwork
High fees
7. Government Assistance Programs
The federal government has grants and programs that can help homeowners pay for renovations. Two home renovation loan options are Title I loans and Energy Efficient Mortgages. Lenders for Title I property improvement loans for your state are listed on the U.S. Department of Housing and Urban Development’s website.
Title I Loans
An FHA Title 1 loan is a fixed-rate loan used for home improvements and rehabilitation. Loans under $7,500 are usually unsecured, but bigger loans may use your home as collateral. These loans may be used in conjunction with a 203(k) rehabilitation mortgage.
The maximum loan terms are between 12 and 20 years, and loan amounts are $7,500 to $60,000, depending on the home’s size and type.
The loan must be used for property improvements, and an FHA mortgage insurance premium of 1% of the loan amount will be added to your interest rate. There is no minimum credit score required, but your debt-to-income ratio may factor into your loan terms.
Energy Efficient Mortgage
FHA’s Energy Efficient Mortgage program (EEM) finances energy-efficient improvements with their FHA-insured mortgage. The borrower must qualify for the loan amount used to purchase or refinance a home. However, they’re not required to be qualified on the total loan amount that includes the amount used to finance energy-efficient improvements. The FHA insures the loan to protect the lender against loss in the event of payment default.
Starting in 2023, homeowners can also get tax credits for some energy-efficient updates, including windows, insulation, new doors, heat pumps, and air conditioners.
These types of programs will reduce the cost of financing for home improvements and are great options if you meet the criteria.
Advantages of Government-Assisted Financing
Disadvantages of Government-Assisted Financing
Low interest rates
Financing must be used for property improvements.
Broad range of loan terms
Strict qualification standards
Tax credits
Larger loans may require your home as collateral.
How to Decide the Best Type of Home Improvement Loan for You
If you’re trying to decide what home improvement loan is best for you, consider the following factors:
Are You Purchasing a Fixer-Upper?
If you are buying a fixer-upper, check if you qualify for either an FHA 203(k) rehab loan or a government-assisted program. You may get cheaper financing this way.
Do You Need Funds Right Away?
If you need funds quickly — for example, you have a broken heat pump or HVAC system — a personal loan or credit card financing are options to explore.
Do You Have Equity Available?
If you have built up equity, a home equity loan or line of credit will provide cheaper financing than a personal loan and over a longer term, so that your monthly payments will be lower. A cash-out refinancing loan might also mean that you could lower your payments and reduce your term if interest rates have dropped significantly since you took out your original mortgage.
How to Get a Home Equity Loan
The first step in getting a home equity loan is to decide which loan is best for your situation. Next, find a lender with the best terms and fill out an application to see if you qualify.
1. Check Your Financial Health
The better your credit score, the better the loan terms will be. If you can boost your credit score before you apply for financing, you’ll boost your chances of getting a better deal. Lenders will also look at your debt-to-income ratio when setting the interest rate and term, so lowering your debt before you apply for a home improvement loan can help lower the cost of your financing.
2. Compare Lenders
You should contact a few different lenders to compare their rates and loan terms. Look for benefits, such as rate discounts for enrolling in autopay, and watchouts, such as late payment fees and minimum loan amounts.
3. Gather Documentation
You will need to submit a few basic pieces of information when you apply for a loan. As a general guide, you will need:
• Proof of income, such as W-2s or 1099s, bank statements, pay stubs, or tax returns.
• Proof of residence, such as your Social Security number and utility bills.
Your current debts, housing payment, and total income will also play a role. Be sure to have all the information your lender may need on hand when you apply to speed up the application process.
💡 Quick Tip: With home renovations, surprises are inevitable. Look for a home improvement loan with no fees required — and no surprises.
4. Apply for Prequalification
Some lenders will prequalify you, which will tell you your interest rate and how much your monthly payments will be. Prequalification should not affect your credit score, whereas a formal loan application could. Applying for too many loans in a short space of time could lower your credit score.
5. Complete the Loan Application Process
Your loan application might be fully online, via phone and email, or in person at a local branch. In cases where you are borrowing against equity, your lender may require a home appraisal. Provided your finances are in good shape, the lender should approve your application, and you’ll receive funding.
How Your Credit Affects Your Home Improvement Loans
Your credit score will affect the total cost of a home improvement loan. The higher your score, the less of a risk you pose to a lender, so the better the loan terms will likely be for a mortgage or long-term loan. The same goes for credit cards and personal loans. Also, if you have good credit, you’ll probably have an easier time securing a home improvement loan.
Can You Use Home Equity Loans for Non-Home Expenses?
Home equity loans and HELOCs are flexible and can be used for anything, not just home expenses or renovations. However, these loans are best suited for long-term, ongoing expenses like home renovations, medical bills, or college tuition.
The Takeaway
The types of loans for home improvements include loans based on the equity you have built up in your home, such as a home equity loan, a HELOC, or cash-out refinancing. You can also use personal loans, credit card financing, and government programs. Loans based on equity tend to cost less over the loan’s lifetime, but they also tend to have longer loan terms. Equity-based loans also tend to be best when you need to borrow a larger amount, because you can spread out the cost over a longer period.
A personal loan will have a higher interest rate and a shorter term, but the higher your credit rating, the better the interest rate tends to be. Alternatively, credit card financing is favorable if you need funds quickly, the amount you need is not too high, and you can take advantage of a 0% introductory rate and pay off the balance before the rate expires.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
FAQ
What type of loan is best for home improvements?
The type of loan that is best for home improvements depends on your finances and how much you need to spend. If you hold a fair amount of equity and need a sizable amount of cash, a home equity loan, HELOC, or cash-out refinancing may be good options. Cash-out refinancing might be particularly appealing if interest rates have dropped, and you can refinance with better loan terms.
If, on the other hand, you have a smaller project that you expect to complete in a short timeframe, using a credit card that gives a 0% interest rate for a period could be the way to go.
What is the best renovation loan?
If you’re taking on a big project, buying a fixer-upper or planning to renovate an older home, you may want to consider the FHA 203(k) mortgage. The 203(k) rehab loan lets you consolidate the home and renovation costs into a single remodel home loan and avoid paying double closing costs and interest rates.
If your home is newer or higher-value and you have equity, cash-out refinancing can be a good option, particularly if interest rates have dropped.
Should I use a personal loan for home improvements?
Personal loans are a more expensive option for home improvements, especially if your credit score is average. However, using a personal loan for home improvements might be the best option if you don’t have a lot of equity to borrow from.
Are home improvements tax deductible?
Home improvement loans are generally not tax deductible. However, if you use a refinance or home equity loan, some of the costs might be tax deductible. Check with a CPA or tax specialist.
What credit score is needed to get a home improvement loan?
Credit score requirements for a home equity loan depend on the lender. A credit score in the mid-600s might be enough to be approved by some lenders, while others might not approve you with a score above 700. Lenders consider many factors, including your debt-to-income ratio and equity in the home, when considering you for a home equity loan.
Photo credit: iStock/Hero Images
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
You’re going to have to do more than just pay rent to get new digs. Get ready to fork over a security deposit before move-in day comes.
When it comes to renting, there are costs that everyone is familiar with. These include application and move-in charges, first and last month’s rent, utilities, parking, storage and so on. In particular, the security deposit is one large expenditure that’s standard for anyone who signs a lease for a rental property.
The term “security deposit” is pretty vague, though, so a lot of renters aren’t sure what it’s for. For many people, it seems like a way for the property management company to squeeze even more money out of a renter! In this article, we’ll answer all your questions related to this crucial, one-time payment. That way, you’ll be as informed as possible when it comes time to sign the lease and pay all the associated rental fees.
What is a security deposit?
A security deposit is a set amount of money that a tenant pays to a landlord before moving into a rental property. Essentially, it’s like insurance for the managers/owners to protect their property from damage. The amount of money varies by state or property. So, the payment could be one month’s rent, two months’ rent (also known as twice the amount) or another flat fee set by the property manager.
The funds are held by the manager for the duration of the lease. In fact, state laws dictate that the money must sit in a bank account. At the end of the lease, the landlord returns that money to the tenant, in part or in full, following a move-out inspection of the rental. Or, the property manager can keep it to cover damage other than normal wear and tear. If the damage costs less to fix than the security deposit, the landlord will return the remaining amount to the tenant. So, you might not lose all of the last month’s rent, but you could lose some of it.
When do I pay my security deposit?
The entire security deposit is usually paid when you sign the lease. Often, they’ll also be paying for the first months’ rent, last month’s rent and any other related costs. Tenants pay security deposits by check, money order or electronic payment.
How much is a security deposit?
In general, the amount of the security deposit will be the equivalent of one month’s rent, or maybe two. For example, if your monthly rent is $500 and your landlord requires first and last months’ rent for the deposit, you’ll need to have $1,000 on-hand for the security deposit.
Credit score can also impact how much you need to put down. Low credit scores can turn into a higher security deposit unless you have a co-signer.
Other factors, like the rental application, determine how much to charge for an apartment security deposit. A potential tenant with solid employment history and no criminal record is likely charged less. Also, the rental type and quality, state laws and local market rates all play a part. Often, states limit the security deposit amount, so that renters aren’t totally price gouged.
Why do landlords collect security deposits?
While not all property managers collect security deposits, it’s a pretty standard part of the rental agreement. Property ownership is a difficult business with significant risk, so this helps landlords cover their bottom line.
Property owners collect security deposits as a financial safeguard to protect their properties from damage or other irresponsible actions by residents. Here are some examples of what a security deposit would cover.
Property protection
Accidents happen throughout a lease. If a tenant breaks a light fixture or cracks the drywall, the cost to fix those would come out of the security deposit as they were the tenant’s fault. Knowing that they’ll be out of a hefty chunk of change if they aren’t careful incentivizes people to avoid damaging the unit. Renters who want to get their entire security deposit back should treat the apartment with care and respect.
Financial protection
Security deposits also cover any bills or rent that are delinquent at the end of the lease agreement. So, if you were behind on rent for one month and still haven’t paid that back to your landlord by end of the lease, or you have unpaid utilities on your account, they could take the amount out of the deposit.
Pet protection
If you’ll be sharing your new home with a furry best friend, chances are you’ll have to pay a pet deposit, in addition to the security deposit. This would cover any damages your pet makes to the rental, like tearing up or soiling the carpet. Some landlords will also charge a small amount in “pet rent” on top of the deposit.
What does a landlord do with a security deposit?
The security deposit is “just in case” coverage. For the duration of the lease, the funds will be kept by the landlord in a bank account that generally is separate from their business bank account.
Because of this, the security deposit may collect interest. Some state laws say that the tenant gets those earnings when the landlord returns the deposit money, but in others, the landlord retains the interest earnings. This is something to think about and confirm with your landlord before you lease the apartment.
Can my landlord make deductions from my security deposit?
Remember, a security deposit is a measure to protect the property manager, not the tenant. There are certain circumstances under which your landlord can deduct from it. Here are the most common reasons a renter won’t get the security deposit back.
There’s significant damage
Wear and tear are normal and expected, which is why it’s the landlord’s job to fix or repair things like old appliances, worn-out carpeting and mold damage. However, if you gouge a hole in the drywall or generally damage the unit in an abnormal way, it’s your responsibility to pay for repairs, and the cost of such repairs will come out of your deposit. So, if you want to get your security deposit back, treat the rental unit gently.
In most states, though, there are provisions in place to protect the tenants from having unreasonable or unnecessary dollars taken from their deposit by the landlord. For example, in California, landlords can’t withhold security deposits to pay for things like painting or carpets unless they were totally wrecked by the renter.
The landlord is also prohibited from using a deposit to fund repairs for preexisting problems in an apartment. Don’t be afraid to ask for an itemized list of repairs if you suspect something dishonest is going on.
You owe unpaid rent or fees
If you have any late fees or unpaid apartment rent at the end of your term, your landlord can take that out of your security deposit. To avoid this, pay rent on time every month, and keep an eye on related bills, as well! Avoid overpaying, though. If you put down last months’ rent at the beginning, don’t forget and double down!
You broke the lease
Sometimes, a landlord can also deduct from your security deposit if you break the contract without providing adequate notice. So, avoid this unless it’s absolutely necessary. If you can’t get around it, give your landlord as much notice as possible. Everyone appreciates a thoughtful renter.
You left the unit in a mess
Not cleaning the unit before vacating is grounds for landlords to deduct from the security deposit. That’s why it’s always a good idea to make sure the apartment is tidy before moving out.
However, renters are only required to leave the unit as clean as it was when they first moved in, so that’s what you should aim for: that it’s clean enough to move in for the next tenants. Empty the refrigerator, wipe up any big spills and otherwise “broom clean” the place. Most landlords don’t expect it to pass the white glove test but want it tidy and relatively easy for professional cleaners to handle. Don’t lose a months’ rent because you were too lazy to straighten up!
How long will it take to get my security deposit back?
This can vary by the property manager and state, but most require the landlord to return your security deposit within 30 days of the tenant vacating the premises. Your landlord will include the timeframe in your lease, so make note of that when agreeing to the lease. Also, pay attention to how your landlord will return the payment so you know what to expect when you leave your apartment.
If you’re not getting some or all of your money paid back, the property manager has to provide a written explanation detailing why, including an itemized list of deductions. In many states, they even have to provide receipts detailing repairs.
What if I don’t get my deposit back?
If you don’t get all or part of your money paid back, the simple answer is that it’s probably because your landlord had to make deductions to cover costs. If you disagree with the reasons they deducted from the deposit, there are some options for recourse.
First, before you turn over the apartment keys, take pictures of every room and closet. That way, if the manager tries to pull a fast one you’ll have photographic evidence.
Next, if you disagree with the deductions, write a demand letter to the landlord disputing them, and explain why you’re entitled to the deposit refund. Be sure to retain a copy for your files.
If you’re unable to come to a satisfactory agreement, you can file a lawsuit in small claims court, which handles cases valued at less than $10,000. This is a relatively inexpensive and relaxed court option. Or, you can turn to a professional mediator to help everyone see eye to eye.
Are there alternatives to security deposits?
Thanks to rent, application fees, security deposits and move-in charges and so on, renting is an expensive process. Luckily, there are some emerging security deposit options that cost less and are more efficient and painless for everyone involved.
Lease insurance
Increasingly, landlords are pursuing lease insurance options like LeaseLock to eliminate security deposits altogether. Similar to other types of insurance, the tenant or landlord pays a small fee (starting at $19 for LeaseLock) per month for coverage against thousands of dollars in property damage.
Pay-per-damage
Instead of dishing out a huge amount to the landlord upfront as a security deposit, some landlords choose to bill for damages on a case-by-case basis. They can only charge for damages up to the amount of a traditional security deposit, though, and a third-party company oversees the claim and process to ensure the landlord isn’t over-billing the tenant.
Surety bonds
Facilitated through a third-party bonding company, surety bonds allow renters to only pay a small fraction of the security deposit to the landlord. Because the bonding company guarantees that the tenant will pay and abide by the terms of the bond, landlords are able to accept a much smaller amount as there’s legal protection in place.
Do security deposit laws vary by state?
The short answer is yes, security deposit laws can vary widely by state. Some states do not have statutory limits, which means they don’t specify how much a landlord can charge for a security deposit. In that case, the amount is at the discretion of the landlord.
In other states, though, there’s a cap limit to what the landlord can charge for a security deposit. Many states also have strict laws regarding when to return the security deposit to the tenant after vacating the premises. Here, you can find a full run-down of security deposit laws state-by-state.
Don’t feel insecure about security deposits
Having to save and temporarily sign away a month’s rent (or more!) for a security deposit can feel scary. But it’s completely normal and is in the best interest of both parties. If you maintain the terms of your contract and don’t leave anything grossly damaged, you should get your deposit back. So, as long as you keep the parties and destructive animals to a minimum, you’re covered.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Buying a new house or building a dream home is a milestone for all – and with affordable home loans, the goal is certainly achievable. However, sometimes, the loan approval process may be time-consuming, potentially delaying your plans, particularly at a time when the demand and cost of real estate are on the rise. This is where a pre-approved home loan comes in. It can reduce the wait time for your loan approval and disbursal and also put you in a better position to negotiate with the lender. Before we get to the various benefits of a pre-approved home loan, let’s find out what it is.
What Is a Pre-Approved Home Loan?
A pre-approved home loan, as the name suggests, is a loan that has already been sanctioned in principal before the deal is finalized. The process is the same as getting a regular loan sanctioned, the only difference being you need not submit any documents or paperwork related to the purchased property.
The lender offers financing depending on your creditworthiness and repayment history and issues a pre-sanction letter after a quick verification. One thing to keep in mind is that the pre-approved home loan offer comes with a 3-to-6-month tenor, within which the property deal must be finalized. However, in case you fail to do so in the given timeframe, you can re-apply.
Top 3 Benefits of Pre-Approved Home Loan
Here, take a look at the top benefits of pre-approved home loans:
1. Faster Loan Disbursal
Since the majority of your loan verification is done at an early stage, the home loan disbursal process becomes prompt and easy once the property is finalized. You will only need to get the property documents verified at a later stage. The lender disburses the loan amount as soon as the document verification is completed. This proves beneficial when you are urgently looking for finances and need to book an apartment or house at the earliest.
2. House Hunting Made Easier
The real estate market hosts a pool of housing options, including independent homes, apartments, villas, and more. With a pre-approved home loan and pre-determined budget, the search for a suitable home becomes easier. For example, if you have a pre-approved sanctioned amount of INR 75 lakhs, you can shortlist houses or flats that cost anywhere between INR 70-80 lakhs. However, make sure you have enough savings for a down payment as it is not included in the Home Loan amount.
3. Better Scope for Financial Planning
A pre-approved home loan makes you aware of your home loan eligibility. That way, you can plan your finances accordingly and apply for a suitable loan amount that can be paid off comfortably without the fear of the loan application being rejected.
Now that you are well-versed with the advantages of a pre-approved home loan, check how to apply for one.
How to Get a Pre-Approved Home Loan Offer?
The process to apply for a pre-approved loan is no different from a regular loan application process. You can simply head to the bank’s or the lender’s website and fill out the online loan application form while providing a handful of documents to get pre-approval on your housing loan.
Documents Required for a Pre-Approved Home Loan
The documents needed to get your home loan pre-approved are listed below:
Identity Proof: Lenders require valid identity proof issued by the government, such as your Aadhaar card, PAN card, Voter’s ID, Driver’s license, and Passport among others.
Address Proof: Apart from the above ID proof, lenders may ask for your ration card and utility bills (gas, water, phone, electricity bills) to be furnished as proof of address.
A copy of Form 16
The last 3 months’ pay slips
The last 6 months’ bank account statements
The last 3 years Income Tax Returns filed
A cheque used for paying the non-refundable loan processing fee
Note: This is an indicative list, you might have to submit additional documents as per your lender’s requirement.
Why Opt for a Pre-Approved Home Loan?
If you are still apprehensive about a pre-approved home loan, here are all the reasons why it may prove to be the best option for you.
With a pre-approved home loan, you will have an idea of the maximum amount you are eligible for. You can shop around and pick a property listed online by the lender.
Lenders offer pre-approved home loans only on properties that have already passed valuation and quality checks. Thus, you need not worry about your loan application being rejected due to poor construction.
There is no requirement for stacks of documents. All you need are documents related to the property, which means less time is needed for verification and approval.
Unlike regular loan applications, where you need to submit documents after finalizing the property, with a pre-approved home loan, you can get on with the document verification (other than property-related documents) beforehand and then search for a house or property best suited for the budget.
5 Things to Consider When Applying for a Pre-Approved Home Loan
If you are planning to get your home loan pre-approved, here are a few things you should keep in mind:
1. Effect on CIBIL Score
Before the pre-approved loan sanction, the lender will look into your CIBIL score closely. If you have a history of multiple credit card or loan applications, your CIBIL score may not be as impressive. Hence, the loan application may get rejected, which will further reduce the credit score.
2. Chances of Rejection
If you do not meet the eligibility criteria laid down by the lender and instead account for poor credit history, low CIBIL score, inadequate income, etc. then your loan application may get rejected.
3. Same Rate of Interest
The rate of interest applicable at the time you receive the pre-approved home loan offer may be the same at the time you apply. Thus, even if the home loan interest rate goes down later, you may not be able to avail of the lower interest rates.
4. Limited Property Selection
Pre-approved home loans are offered on limited properties. This may narrow down the hunt for your dream home as you would only be able to choose from the properties that are listed and have passed the quality check.
5. Limited Period Offer
A pre-approved home loan is a limited period offer with an expiry date ranging up to 6 months. Therefore, once you get a sanction on your pre-approved loan, you will have to buy a property and apply for the home loan within the validity period.
Conclusion
Easy, hassle-free loan application, faster disbursal, and better negotiating power are some of the top benefits of a pre-approved home loan. And while these can be of huge advantage, a pre-approval on your home loan does not necessarily mean that the loan will be finalized. There are a dozen other factors, such as credit score, repayment history, income, property documents and so on that determine one’s home loan eligibility. However, to reap the benefits of a pre-approved home loan, it is important to complete the loan application process within the given period.
Inside: Are you thinking about moving out? This guide will help you identify the costs of moving, calculate how much you need to save, and advice on expenses. You need to learn and plan for the practicalities of living on your own.
Taking the leap to move out and start living independently is a significant milestone.
However, it’s important to ensure you’re financially prepared for this exciting new chapter in your life.
One vital step you need to take is to start saving money, essential for covering your future expenses, emergency fund, and even fun activities. Through careful budgeting, consistent saving, and efficient spending, you can make the transition smoother and stress-free.
Around here at Money Bliss, we focus on the need to save money before making a purchase or taking the next step, so you will be better equipped and stay debt free.
This way, you can fully enjoy the freedom and responsibilities that come with having your own place.
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.
Why is Moving Out on Your Own Important?
There comes a time in one’s life when one feels the need to spread their wings and live independently. We all wanted to move out at 18 – I remember!
This crucial step, however, requires substantial planning. Yet, most just jump right to moving out.
The key thing you must do? Save. But, why so important?
Here’s why: independence means bearing your own expenses. Rent, groceries, utilities, they’re all on you.
Plus, unforeseen emergencies are less shocking when you have a well-stocked safety net.
What’s a good amount of money to have before moving out?
The amount you need to move out depends on many factors.
However, on average, you should aim to have between $6,000 and $12,000 stashed away before you pack your bags.
This sum would cover initial moving costs, deposits, furniture, essentials, and a few months of rent.
Remember, it’s not just about surviving your first month. You’ll need enough to keep you comfortable while you’re settling into your new life.
How much should I save before moving out?
Remember, there isn’t a “magic number.”
Yet, many wonder is $5000 enough to move out?
Your savings should cater to your housing costs, which ideally should not exceed 1/3 of your monthly income. Besides, factor in regional cost of living, moving expenses, and an emergency fund.
What determines the amount needed?
The amount to save before moving out varies greatly. It hinges on factors like your targeted living area because there is a wide fluctuation of HCOL vs LCOL areas, your projected expenses, and your income level. The rent in one city might be higher than in another.
As well as your personal lifestyle choices and spending habits will greatly affect monthly expenses.
Evaluation: Your Financial Status
Your financial status, including current income and expenditures, plays a crucial role in determining the proportion of your earnings you should save before moving out.
If you have a higher income with lower outlays, you can save more, whereas having roommates can significantly cut down your living expenses, enabling better savings.
A careful review of these factors allows you to create a realistic saving plan tailored to your unique financial circumstances.
You need to make sure you are on track to how much money should you have saved by 25.
Assessing your current income
Take a deep look at your income. How much do you earn each month? How regular is this income? These are vital questions.
Your net income (what you earn after taxes) sets the tone for what you can afford. This is the amount listed on your paycheck.
Learn more about gross pay vs net pay.
Understanding your debt load
Debt can be a significant hindrance when contemplating moving out. How much do you owe monthly?
You need to consider your debt-to-income ratio. This is what mortgage lenders do to figure out if I make 70000 a year, how much house can I afford.
If your debt is taking up more than 30% of your income, you need to be careful on how much you spend on rent and other mandatory expenses.
Learn how to pay off your debt faster using Undebt.it.
Know Your Expenses: Breaking Down the Costs
I’ll be honest. This is what most people overlook when they move out or even purchase a new home.
For instance, the couch I loved couldn’t fit into our new house. Sigh.
Now, is the time to learn how to save 5000 in 6 months.
Identifying the cost of moving
Moving costs can bite! They depend on relocation distance, packing supplies, and the complexity of the move.
Movers can range from hundreds to thousands. According to Moving.com, the average costs for a studio or one bedroom range from $501 – $985. 1
Thankfully, you are young and you can pay friends for help with pizza. But, you still need to account for a moving truck if needed.
Hidden costs you need to consider
When moving out, some costs aren’t glaring. These include fees for installing new services, delivery fees for new furniture, or penalties if foregoing a current lease. Yes, these hidden costs can pile up!
Even, the costs to put blinds up at your new place! A room darkening shade can easily set you back $50; I know, I like my sleep.
So, be sure to consider them when saving for your move.
Setting Up a Personal Budget
A budget plays a crucial role in being financially stable. Period.
Call it adulting if you want to, but you cannot spend more money than you make. That is a recipe for a disaster and way too much debt.
By adhering to a well-planned budget, one can prevent financial stress to ensure financial security and start your journey to financial independence.
How to start a personal budget
Starting a personal budget is simple.
List your income and expenditures. Include rent, groceries, utilities, subscriptions, and yes, even luxuries.
The goal is to spend less than you earn.
Then, you can save and plan for your future.
That means you may not be able to afford everything you want. And using credit cards to fill the gap isn’t smart.
The 50/30/20 budget rule explained
For many, the 50/30/20 rule serves as a rough guide for managing your finances.
It suggests allocating 50% of your income to necessities, 30% to wants, and 20% to savings.
This is a beginner-friendly method to manage spending without feeling overwhelmed.
Starting to use a budget app is extremely helpful.
YNAB
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Pros:
Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.
Avoid These Budget Downfall
The most common expenses that are forgotten are irregular expenses such as vacations, weddings, or holiday spending. These variable expenses do not occur on a consistent schedule.
To manage these, note these big-ticket events on a calendar, estimate their cost, divide by 12, and contribute that amount to a high-yield savings account each month, offering you a guilt-free way to cover these costs without stressing over money.
Make sure you remember all of your expenses by checking out this full list of personal budget categories.
Creating and Managing an Emergency Fund
Why an emergency fund? It provides you with a safety cushion.
This fund prevents unexpected expenses from ruining your plans or sending you spiraling into debt. It acts as your financial parachute when you need it the most.
Around here at Money Bliss, we consider it a staple in financial wisdom.
Ideal size of an emergency fund
As a rule of thumb, your emergency fund should cover at least $1000-2000 in savings. This will provide money to cover a car breakdown or new car tires. Honestly, the goal is never to use your emergency fund.
However, you may look at a bigger rainy day fund that will cover 3-6 months of living expenses. This will provide you with a comfortable safety net against unexpected events like job loss or medical emergencies.
But remember: start small. Even $1,000 can buffer you from financial shocks. Check out these mini savings challenges.
Enough Money for One Year
A year’s worth of savings may sound excessive.
However, it provides unmatched stress relief and financial stability that can be life-changing, especially for young adults.
This tip will change your financial landscape immensely and provide you with more opportunities than you can imagine.
You can handle life’s ups and downs more easily when you have an entire year’s expenses sitting in your bank account.
Raisin
Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.
You can open a free Raisin account in just a few minutes!
Compare Rates
Better Planning for Potential Bills and Fees
When preparing to live independently, don’t forget to plan for unanticipated costs.
Rental fees and deposits explained
When you rent, you’re likely to encounter a range of fees.
First off, you’ll have to foot a security deposit – typically equal to one and a half month’s rent. This upfront cost acts as insurance for landlords against damages. If you leave the place in top shape, you’ll get your full deposit back!
Additional fees could include application fees or non-refundable move-in fees like background checks. Know what you’re paying for before you sign the lease.
Utilities and recurring expenses
Electricity, gas, water, and internet – these utilities fall on your shoulders when you’re living solo.
These costs can eat a hole in your wallet if unchecked!
To avoid surprises, ask for estimates before signing a lease or find a place that includes utilities.
Other recurring expenses? Consider subscriptions. Gym, Netflix, Spotify – they all add up!
Trim
Perfect for the person who hates to hassle with canceling subscriptions and checking spending.
Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.
Learn More
Go for a Trial Run Before Moving Out
Adopt the practice of “paying rent” beforehand by setting aside a third of your income into a dedicated savings account which can test your financial readiness for the move. See if you can move out and afford it before you actually move.
Remember, being savvy with money while planning to move out involves carefully auditing your spending over the last 3-6 months and developing a budget that accounts for future expenses, savings, and essential purchases.
This may save you headaches in the future.
Smart Moves: Making Rent Like a Boss
You need to understand how you are starting to make financial decisions.
In fact, reading this financial advice for young adults would be helpful.
Understanding rent payments.
Rent payments can be daunting as prices for a single bedroom apartment are $1700/month. 2
Many landlords may tenants to earn at least three times their rent.
Payments are usually due on the first day of the month. Late payments can lead to hefty fees!
Stay organized by setting reminders or setting up auto-pay.
Considering a roommate.
On the fence about getting a roommate? It’s worth considering!
A roommate can drastically cut your living expenses. Half the rent, half the utility costs… that sounds like a sweet deal.
On the flip side, you may have less privacy and there can be disputes.
However, with clear communication and shared responsibilities, it can be a great experience. It’s a great option if your income is tight. Choose wisely!
Opting for second-hand furniture
Furniture expenses can add up quickly, but there’s a savvy solution: opt for second-hand furniture! Yes, it’s cool to be frugal.
In fact, vintage pieces can add character to your home. Perhaps snag a few items from your parent’s home, Buy Nothing Group, or thrift stores. It’s not about being cheap, but about being smart!
You can always upgrade later.
Key Takeaways Before Taking That Leap
Moving out with roommates not only gave me a firsthand experience of independent living but also exposed me to the nuances of financial management. These initial steps helped me understand budgeting and the importance of balancing expenditures with earnings.
Then transitioning into renting my own place, I was armed with the knowledge I gained and was better prepared to face the challenges, creating a smooth transition to living completely on my own.
Checklist before getting your own place
Before making the big move, have you:
Saved enough to cover deposit, rent, moving, and utility hook-up fees?
Started a personal budget, tracking income and expenses?
Drafted a rough spending plan using the 50/30/20 budget rule.
Built an emergency fund?
Discussed potential apartment rental fees and deposits?
Considered recurring expenses and variable expenses?
Weighed the pros and cons of having a roommate.
Looked into second-hand furniture?
Can you comfortably cover living expenses with your income?
Have you accounted for all possible costs? Think of moving costs, utilities, groceries, health insurance, and more.
Have you considered the cost of living in your preferred location?
How stable is your income? Can it sustain your independence long-term?
Check out this first apartment checklist.
Frequently Asked Questions (FAQs)
Before moving out of your parents’ house, aim to save at least $5,000. But, you want to start off financially sound, so aim higher like $10,000. This amount would ideally cover your moving costs, early rent payments, and the setting up of utilities.
Remember, the real magic figure depends on your cost of living and your current income.
Put simply, saving $1,000 a month is excellent!
As an expert, Money Bliss often recommends saving at least 20% of your income each month. If you can stash away $1,000, you’re well above this bar.
Remember, every little helps when working towards financial independence. Check out our 52 week money saving challenge to get started.
Start Saving for How Much Money I Need to Move Out
Taking the leap into independent living can feel daunting. But with careful planning, budgeting, and saving, it’s an exhilarating journey.
The best advice I can give someone who is looking to move out is to plan ahead for the journey in front of you.
Remember, having anything between $6000 and $10,000 saved up is an excellent starting point.
As you navigate your financial freedom, adopt the 50/30/20 rule for managing expenses. Around here we call it the Cents Plan Formula.
Most importantly, stay prepared for life’s unexpected twists with an emergency fund. And don’t be shy to make some smart moves like considering a roommate or opting for second-hand furniture.
The journey towards independence is rewarding and fun – as long as you’re financially prepared. So pop that calculator, get budgeting, and start saving for your own place!
Source
Moving.com. “Moving Cost Calculator for Moving Estimates.” https://www.moving.com/movers/moving-cost-calculator.asp. Accessed October 25, 2023.
Rent Cafe. “Average Rent in the U.S.” https://www.rentcafe.com/average-rent-market-trends/us/. Accessed October 25, 2023.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
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!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.