If you’re exploring career options, pharmacy might have popped up on your radar — and for good reason. Not only can pharmacists command a good salary, they also have job security, as the pharmaceutical industry is one that won’t vanish any time soon.
That said, how much does a pharmacist make? Is it worth all the trouble of going through pharmacy school to become one? Let’s find out.
What Are Pharmacists?
You’ve likely picked up a prescription or two at a pharmacy, but maybe you didn’t give any thought to the person behind the counter. This individual is your local pharmacist, and it’s their job to prepare and dispense prescription medications.
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Pharmacist Job Responsibility Examples
In addition to doling out prescription drugs, pharmacists also consult with patients, provide instructions for how to take medications, and help patients find low-cost medications. Some also give health screenings and immunizations.
Keep in mind, a pharmacist often needs to be outgoing, since their work involves speaking with patients throughout the day. If that’s not your personality, you may want to look into jobs for introverts. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.
How Much Is a Starting Pharmacist Salary?
As with most professions, pharmacists tend to earn more money as they gain more experience. But what is a good entry-level salary for pharmacists?
Pharmacists with less than a year of experience generally earn, on average, about $54 per hour. That’s $112,320 per year.
Of course, how much you actually can earn depends on where you live, what your duties are, and whether you work for an independent pharmacy or a chain. It can also help to research the highest-paying jobs by state.
Recommended: Is a $100,000 Salary Good?
What Is the Average Salary for a Pharmacist?
Now that you see what starting salaries are for pharmacists, let’s address the next question: How much money does a more experienced pharmacist make?
Generally speaking, pharmacists are usually paid by the hour. A pharmacist with 10 years of experience earns an average of $67.05 per hour. That adds up to $139,464 per year.
What Is the Average Pharmacist Salary by State for 2023?
The amount you make will depend on where you live, among other factors. Here’s a look at the average pharmacist salaries by state, from highest to lowest.
State
Salary
California
$161,597
Oregon
$155,710
Washington
$149,466
New Hampshire
$141,041
Nevada
$140,869
Maine
$139,517
Vermont
$137,658
Delaware
$136,276
Maryland
$135,894
Connecticut
$134,175
Alaska
$134,044
Massachusetts
$131,978
Rhode Island
$131,960
New Jersey
$131,698
New York
$131,594
Pennsylvania
$129,724
New Mexico
$129,145
Wisconsin
$128,918
Minnesota
$128,502
Virginia
$128,380
Hawaii
$128,245
Arizona
$126,174
Idaho
$125,760
North Carolina
$125,068
Michigan
$124,768
Colorado
$120,986
Illinois
$120,887
Kansas
$118,122
Ohio
$117,573
Kentucky
$117,448
Indiana
$117,338
Missouri
$116,513
Nebraska
$116,366
Utah
$116,009
South Carolina
$115,570
West Virginia
$115,339
Texas
$115,089
North Dakota
$114,359
Georgia
$114,118
Tennessee
$112,879
Wyoming
$112,326
Montana
$111,924
Iowa
$110,405
Florida
$109,106
Alabama
$106,271
Mississippi
$105,677
Louisiana
$102,542
South Dakota
$100,246
Oklahoma
$98,951
Arkansas
$89,660
Source: Zippia
Recommended: Pros and Cons of Raising the Minimum Wage
Pharmacist Job Considerations for Pay & Benefits
Where you live is one factor that can determine how much you earn as a pharmacist. Your on-the-job responsibilities may also play a role. For example, there are different job titles, and each has its own set of responsibilities, requirements, and salary ranges. Examples include:
• Staff pharmacist
• Pharmacy specialist
• Clinical pharmacist
• Pharmacy manager
• Director of pharmacy
Some pharmacists may have roles and responsibilities beyond filling prescriptions, such as offering immunizations and health screenings. Some may be in charge of hiring and managing other employees. Some may work in traditional pharmacies, while others may work for companies focusing on chemotherapy, nuclear pharmacy, or long-term care.
Recommended: 25 High-Paying Trade Jobs in Demand
Pros and Cons of Pharmacist Salary
While being a pharmacist can be a rewarding job, there are potential drawbacks to keep in mind. Let’s look at some pros and cons.
Pros of Being a Pharmacist
Naturally, the high salary pharmacists tend to command may be one reason to consider this career path. Because many pharmacists get paid by the hour, they’ll be compensated fairly for their time even if they work more than 40 hours a week.
Another perk is that you may have a flexible schedule that allows you to work part-time or during certain hours. There could even be opportunities to work remotely, which may be useful if you’re working in a rural area.
You might also be able to open your own pharmacy instead of working for someone else. This brings freedom and flexibility to you as a business owner.
Finally, you’ll be a valuable member of your community, since it’s your job to help people on their path to wellness.
Cons of Becoming a Pharmacist
If becoming a pharmacist was easy, everyone would do it! For starters, you’ll need to have about six years of education after high school. And the cost of pharmacy school can range anywhere from $5,000 to $30,000 a year for an in-state public college, or $20,000 to $95,000 a year for a private school.
Depending on your financial situation, this could require you to tap into savings or take out student loans. (Creating a budget while you’re in school or just starting out can help you keep track of where your money is going. A money tracker app can help make the job easier.)
Another possible drawback? Some pharmacies may not guarantee a certain number of hours a week, and in that case, being paid hourly may not come with the big paycheck you’d expect.
Also keep in mind that some pharmacists work long hours, which can have a negative impact on your health and mental wellbeing. 💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
If you’re looking for a rewarding and potentially lucrative job, becoming a pharmacist might fit the bill. You’ll help your local community get healthier, and depending on where you live and your level of experience, you could earn competitive pay, too.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights—all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
What is the highest pharmacist salary?
The state where pharmacists tend to earn the most is California. The average annual income of a pharmacist there is $161,597.
Is it hard to be hired as a pharmacist?
Becoming a pharmacist requires six years of education after high school. The workload is challenging, and pharmacies looking to hire generally have high expectations of applicants.
Photo credit: iStock/ADragan SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. (Must click on the link to be eligible.) This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the Rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed into SoFi accounts such as cash in SoFi Checking and Savings, SoFi credit cards or loan balances, and fractional shares subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Who doesn’t like a little something extra? While there are some benefits your employer is required to provide you, they may also give you additional perks in the form of what are known as “fringe benefits.”
Here’s a look at some examples of fringe benefits, how they work, and whether they’re taxable.
What Are Fringe Benefits?
Typically, employers compensate their employees with a traditional paycheck and some additional benefits that they must provide, such as workers’ compensation coverage or unemployment.
But in an effort to keep workers happy, loyal, and motivated — attract new talent — many organizations also offer fringe benefits such as health insurance, childcare assistance, and employee stock options. These extras are above and beyond a regular paycheck and are often included in a hiring package. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.
Common Fringe Benefits
Here’s a look at some common fringe benefits:
• Accident and health benefits: Provides help with health-related costs not covered by your traditional insurance plan.
• Athletic facilities: Provides access to on- and off-site athletic and gym facilities.
• Dependent care assistance: Helps you pay for some care-related expenses for qualifying dependents, including children, a disabled spouse or legally dependent parents.
• Adoption assistance: Provides payment and reimbursement for expenses related to adopting a child.
• Employee stock options: Gives employees the chance to buy a certain amount of company stock at a specified price and by a certain time.
• Group-term life insurance coverage: Allows employers to provide their employees with up to $50,000 in tax-free insurance. Coverage is traditionally 1-2x salary, where the first $50,000 is received tax-free, then any additional coverage is taxed.
• Health savings accounts (HSAs): Provides tax-advantaged savings accounts for employees enrolled in high-deductible health plans. These accounts may receive contributions by the employer or simply be funded on a pre-tax basis by the employee to help them pay for dental and health care costs.
• Transportation and commuting benefits: Helps employees get to and from work, such as through the use of a company vehicle. Employees may also be able to have qualified transportation costs taken from their pre-tax pay, which reduces their taxable income.
• Tuition reduction: Allows employers to chip in for the cost of tuition to educate an employee and sometimes their spouse or children.
• Meals: Provides employees with free on-site food and snacks.
For a more complete list of fringe benefits, check out IRS Publication 15-B .
Are Fringe Benefits Taxable?
Generally speaking, most fringe benefits are subject to employment taxes. The taxes are taken out of your paycheck and reported on your annual tax return. (If you’re a contractor, you’ll typically report fringe benefits on a Form 1099-MISC. If you’re a non-employee, fringe benefits are not subject to employment tax.)
That said, the IRS does consider some fringe benefits nontaxable. This means they’re not subject to federal income tax withholding, Social Security, Medicare, or federal unemployment tax, nor must they be reported on your tax return. Often, in order for a fringe benefit to avoid being taxed, certain qualifications must be met.
Here are some extra perks that are considered nontaxable (the full list is available on the IRS’ site:
• Retirement planning services
• Adoption assistance
• Meals and snacks (If certain conditions are met)
• Health insurance (up to a certain dollar amount)
• Group-term life insurance (up to a certain amount of coverage)
• Commuting or transportation benefits
• Dependent care assistance (up to a certain amount)
• Awards given for achievements
Tax-Advantaged Fringe Benefits
Some fringe benefits allow employees to direct a certain amount of funds pretax toward qualified accounts and expenses, which can lower their taxable income.
These tax-advantaged benefits are (somewhat oddly) known as “cafeteria plans,” because they allow employees to select the benefits they want. You must be permitted to choose from at least one taxable benefit, like cash, and one qualified benefit. Examples of qualified benefits include:
• 401(k) plans
• Accident and health benefits, excluding Archer medical savings accounts and long-term care insurance.
• Adoption assistance
• Dependent care assistance
• Group-term life insurance coverage
• HSAs (distributions from HSAs can be used to purchase long-term care coverage.)
There are, predictably, a few more nuanced rules about cafeteria plans and employee tax treatment. While most regular employees receive normal tax treatment, other employees or contractors may not be treated as such for cafeteria plans.
If you have tax-related questions about fringe benefits, it might be a good idea to consult your attorney or preferred tax specialist. 💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
Planning Around Fringe Benefits
Employers typically offer fringe benefits to make the work environment better for the people who currently work there and more desirable for prospective employees.
Some benefits may hold a lot of appeal. For example, 401(k)s are a powerful tool for saving for your retirement. But others may be less appealing. For instance, you may decide you don’t want to use FSAs, which often restrict how much you can contribute and when you have to spend the funds.
It’s common to choose which fringe benefits you want when you’re starting a new job and filling out your initial paperwork. However, many companies will allow you to go back and make changes if you decide later that some choices aren’t right for you.
The Takeaway
Fringe benefits can run the gamut from use of the company car to adoption assistance to employee stock options (to name just a few examples). These extra perks are in addition to your paycheck and can be a powerful way to keep workers happy and loyal while also attracting new talent.
Generally speaking, most fringe benefits are taxable, though some — like retirement planning assistance, athletic facilities, and on-site meals and snacks — are not. Some fringe benefits will even allow you to direct a portion of funds pretax toward qualified accounts and expenses, which can help lower your taxable income.
Take control of your finances with the SoFi Insights money tracker app. Connect all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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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.
When you carry large amounts of debt across different credit cards and loans, it’s easy to feel snowed under. Making the minimum payment on each leaves you paying a lot in interest and doesn’t make it easy to eliminate all that debt.
One debt repayment strategy you might want to consider is the debt snowball. Many find it to be an effective method of paying off outstanding debt, and it may help you get back to healthy financial practices faster.
Let’s look at what a debt snowball strategy looks like, including how to use a debt snowball calculator.
Debt Terms Defined
Before we go into creating a debt reduction plan, let’s make sure you’re up to speed on certain debt terms.
Interest Rate: The interest rate is the percent of the amount you borrow that you pay to the lender in addition to the principal.
Annual Percentage Rate: This is the interest rate charged per year for purchases you make with a credit card, and may include other fees.
Minimum Payment: Loans and credit cards have a minimum amount you must pay each month on the balance, though you certainly can pay more.
Bankruptcy: If you’re unable to pay off your debts, filing bankruptcy may be a last-ditch solution to consider. Essentially, it reduces or eliminates your debts. Know that it will negatively impact your credit for many years. That’s why it’s worth it to come up with a plan for the ultimate debt payoff strategy. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.
What Is the Debt Snowball?
Just like an actual snowball, the debt snowball method starts out small. You first tackle the smallest debt balances you have. Once those are paid off, you apply what you were paying on those to the next smallest debts. You continue to pay at least the minimum due on all your debts.
However, by focusing your attention on one debt at a time, you then free up more money to make larger payments on other debts until it’s all gone. Your snowball of debt repayment, so to speak, grows over time.
Benefits of the Snowball Method
The snowball method is one of the fastest ways to pay off debt. And over time, this method will help you have fewer payments as you pay off credit cards and loans and put more money to the remaining debt.
Drawbacks of the Snowball Method
The smallest debts you have may not be the ones with the highest interest. So while you’re paying off the little loans, the debts with higher interest continue to accumulate interest, which adds to your debt.
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Debt Snowball vs. Debt Avalanche
If you have larger loans with higher interest, the debt snowball method may not be your best option. You might also explore another popular way to pay off debt: debt payoff strategy, the debt avalanche method.
With the debt avalanche method, you start paying down the loans and credit cards with the highest interest first. By doing so, you reduce the amount of debt you have at those higher interest rates, which slows down the amount of interest that accumulates over time.
Just like with the snowball, you pay off one debt and then put the money you were paying on that debt toward the loan or card with the next highest interest rate until it’s all paid off. 💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
How Is Debt Snowball Payoff Calculated?
To use the debt snowball payoff method, you’ll need to gather information about all the debt you have. Let’s use the following example:
• Personal loan 1 balance: $3,000
◦ 12% interest
◦ Minimum payment: $100 per month
• Credit card A balance: $2,000
◦ 17% interest
◦ Minimum payment: $25 per month
• Credit card B balance: $1,000
◦ 22% interest
◦ Minimum payment: $30 per month
• Personal loan 2 balance: $750
◦ 8% interest
◦ Minimum payment: $20 per month
Even without a snowball debt payoff calculator, you can reorder these debts so that you focus on the one with the lowest balance first:
• Personal loan 2: $750
• Credit card B: $1,000
• Credit card A: $2,000
• Personal loan 1: $3,000
Now that you’ve ordered your debts from least to greatest, you can see how, once you pay off the $750 loan, that money can go toward the credit card with the $1,000 balance. Once that’s paid off, you put all that money toward paying off the $2,000 credit card balance, and then finally, to pay off the $3,000 loan.
Debt Snowball Payoff Examples
Let’s look at what the monthly payments for these reordered debts would look like, if you were able to set aside $400 a month toward paying them off.
# Payments
Personal Loan 2 ($750)
Credit Card B ($1,000)
Credit Card A ($2,000)
Personal Loan 1 ($3,000)
1
$245
$30
$25
$100
2
$245
$30
$25
$100
3
$245
$30
$25
$100
4
$25.19
$249.81
$25
$100
5
–
$275
$25
$100
6
–
$275
$25
$100
7
–
–
$300
$100
8
–
–
$300
$100
9
–
–
$300
$100
10
–
–
$300
$100
11
–
–
$300
$100
12
–
–
$300
$100
13
–
–
$300
$100
14
$260.72
$139.28
15
–
–
–
$400
16
–
–
–
$400
17
–
–
–
$400
18
–
–
–
$400
19
–
–
–
$400
20
–
–
–
$400
Total principal & interest
$7,568
Total interest
$829
As the chart shows, what might have taken you years to pay off can be paid off in under two years with the debt snowball method.
One way to keep your finances on track while you’re paying off debt is to create a budget. A money tracker app can help you come up with a spending and saving plan that works for you.
Is a Debt Snowball for You?
There’s no one-size-fits-all when it comes to debt payoff strategies. But to determine whether the debt snowball method is right for you, consider how many different debts you have as well as their interest rates. If your larger debts have higher interest rates, you might consider the avalanche method.
But if your interest rates vary, or the smaller debts have higher interest, you might benefit from paying off those lower amounts first before snowballing those payments into the larger debts.
The Takeaway
If you’re trying to pay off outstanding debt, you have options. The debt snowball method has been proven effective for many people. If nothing else, it’s a way for you to focus your attention on whittling down debt and minimizing how much you pay in interest.
Take control of your finances with the SoFi Insights money tracker app. Connect all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
How long to pay off debt using snowball?
The amount of time it takes to pay off your debt with the snowball method will depend on how much debt you have and how much you can budget to pay it down. However, you may be able to pay off your debt faster with this method.
What is the best way to pay off debt using the snowball method?
The debt snowball method pays off your smallest balances first, then rolls those payments up toward the larger debts until they are all paid off.
What are the 3 biggest strategies for paying down debt?
To pay down or pay off debt, you can consider the debt snowball method (which pays off the smallest balances first), the debt avalanche method (which pays off the balances with the highest interest first), or debt consolidation (which provides a new loan with a single payment and single interest rate).
Photo credit: iStock/Abu Hanifah
SoFi’s Insights tool offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. (Must click on the link to be eligible.) This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the Rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed into SoFi accounts such as cash in SoFi Checking and Savings, SoFi credit cards or loan balances, and fractional shares subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
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.
Inside: Do you want to make money online fast? If so, we’ll discuss the best digital products to sell on Etsy. By following these steps, you’ll be on your way to making money selling digital items quite easily.
Do you want to learn how to sell digital products on Etsy and make money through it?
Selling digital products offers an exciting avenue for generating passive income. With their low production and distribution costs, high profit margin, and potential for scalability, they stand as a lucrative business model for many entrepreneurs.
Moreover, once a digital product is created, it can continuously bring in revenue without the need for additional production costs, making it an appealing source of passive income.
The key to being a successful Etsy seller is to understand your chosen niche and what your audience wants.
We will dive into digital products you could sell on Etsy which range from arts & crafts to business materials.
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.
What are Digital Products?
Digital products are items that are accessed and delivered electronically, examples of which include software, ebooks, online courses, digital music, video, and audio files.
These intuitive products offer the versatile benefit of being easily reproduced and instantly accessible on various devices, without the requirement of physical storage or shipping. Plus the world is moving towards becoming digital anyway.
In creating digital products, businesses aim to capitalize on customer appeal and convenient delivery, which often complement their physical goods or services.
Why Sell Digital Products on Etsy?
Selling digital products on Etsy offers an incredible opportunity to showcase and monetize your unique creations. With Etsy’s vast online marketplace and its millions of potential customers, it has become a preferred platform for artists, designers, and content creators.
Furthermore, it provides the flexibility to set your prices in accordance with the value you offer and experiment with different pricing strategies.
This is a hassle-free way to monetize your creativity. Here’s why:
You craft it once, it sells eternally: Digital products offer the ultimate advantage of a “create once, sell forever” model. Imagine sipping a cup of tea while your creation secures sales one after another.
Resource-friendly: Bid adieu to the restrictions of shipping, storage, or material costs. Instead, welcome the comfort of financial freedom and resource efficiency.
Everlasting stock: Digital products on Etsy never run out! Say goodbye to inventory issues and overselling, which makes it a smart choice for long-term business.
So, start now by creating an account, picking your digital product, setting up shop, and starting selling on Etsy. With no heavy fees and no botheration of shipping.
Just pure creative power leads to sheer earning happiness.
What digital products sell the most on Etsy?
Well, our data shows that digital prints, planners, stickers, fonts, and children’s educational materials are some of the best-selling categories netting serious cash on this creative marketplace. This information came from Cody and Julie – the founders of the e-Printables course.
Typically, seasonal content always does well on any platform. Same with current trends like the “Barbie” craze.
These products are a creative enthusiast’s goldmine owing to their limitless customization capabilities, instant delivery, and cost-effectiveness.
Wherein, most busy professionals, students, parents, and small business owners find them irresistible due to their convenience and adaptability to suit specific needs and tastes.
To learn more about selling on Etsy, I highly recommend connecting with Cody and Julie in their free webinar.
What digital download sells best on Etsy?
Among the myriad of digital products available,digital prints notably rank as one of the best-selling downloads on Etsy, closely followed by other popular items such as:
digital planners
logo designs
travel guides
business card designs
Lightroom presets
printable invitations.
A beautiful synergy of convenience, utility, and aesthetics, that can be printed at home or in a local print shop, whenever you wish. Perfect for last-minute gifters, DIY décor enthusiasts, or anyone looking for hassle-free beautification!
So, staying in the game, consistently monitoring market trends, and adapting accordingly is the key to successfully selling your digital prints on Etsy.
Best Digital Products to Sell on Etsy
The best digital products to sell on Etsy depend upon various factors, such as your skills, customer interests, and specific market trends.
It is also important to keep an eye on high-sales products, check positive reviews, track favorites, and note recurring themes to understand what customers are looking for and to guide your digital product offerings. This is a quick way to make 300 dollars fast.
Here are the examples of some of the best digital products you might want to sell on Etsy:
1. Printable or Digital Planners
You’ve hit the jackpot if you’re contemplating selling printable or digital planners on Etsy. Some people might say digital or printable planners are seasonal but due to the high demand and flexibility, it could be the golden goose for your marketing on Etsy.
Buyers love and enjoy the tailored usability offered by printable planners, which they can customize to their requirements and physically pen in their plans.
You can supply this demand by offering a large variety and aesthetically pleasing designs.
Tip: Try bundling in different types of stickers for a snappier offer.
2. Craft Patterns
Craft patterns are a top-ranking digital product on Etsy, thanks to a revival of all things crafty!
From knitting and crocheting to sewing and embroidery, these digital masterpieces cater to the abundant trend-setters and hobbyists who frequent Etsy.
To truly get your digital craft patterns thriving on Etsy, remember to follow the trail blazed by successful pattern sellers like these Etsy sellers. These crafts start from an average selling price of $10, making them a lucrative venture for creatives.
Lastly, don’t forget to unleash SEO magic – get your product seen by the right people especially when creating a sewing pattern or crochet pattern. This can be your missing element for transforming hard work into hard sales!
3. Children learning materials
Looking for a profitable side gig? Selling children’s learning materials on Etsy is wildly popular and well-needed especially for those homeschooling.
Parents and teachers are snapping up digital educational resources. By marketing printable lesson plans, colorful flashcards, and engaging worksheets, parent is hyped to supplement their children’s education.
This is a great summer job for teachers because your educational resources might just be the next best-seller on Etsy.
Crack open those lesson plans, as your Etsy store awaits.
4. Wallpapers
On Etsy, phone wallpapers are the new moneymaker. Provide colorful ways for customers to personalize their devices, these digital beauties are a hot ticket item.
To catch the widest net, cater to both phone and desktop users. You must keep up with trends. Also, creating wallpapers for Apple watches and other high-tech gadgets or themed designs for holidays is always a hit.
It’s a simple concept: stylish wallpapers have an average selling price of around $3-4.
5. Calendars
Venture to sell digital business calendars guarantees a steady demand, as planning isn’t just a phase – it’s woven into the fabric of daily life. To get started, unlock your artistic prowess with any digital art program like Adobe Photoshop or Canva.
Begin creating your unique touch on calendars, ensuring they’re editable pre-print- a clear selling point. Remember, quality trumps all – prioritize visually appealing designs with user-friendly formats.
Time to turn dates into dollars. Listing calendars in your Etsy shop certainly won’t go out of style or demand. Also, aim for the $5 – $10 price range to hit the sweet spot of affordability and profitability.
6. Invitations
Invitations are among the top-selling digital items on Etsy.
Customizable templates for various occasions like weddings, parties, baby showers, and more are particularly popular. It’s perfect for creative individuals skilled in design who are looking to turn a profit on their talents.
These digital products can provide a meaningful revenue stream. Some creators can charge up to $20 per customized item.
The bottom line is that selling digital invitation templates on Etsy doesn’t just allow for creativity, but it’s also a lucrative business opportunity.
7. Business cards
Catering to the surge of remote entrepreneurs and the timeless need for personal cards, this trend is something to tap into.
You can offer editable, customized, or even smart cards – with features like one-click phone calls or emails – which can give your shop an edge.
Through Canva or Wepik, you can design exotic templates, offering customers the control to personalize before printing. Turn on your creative juices, let your brand shine, and step up your entrepreneurial ladder with a business card template.
8. Wedding Invitations and Printables
To be honest, I actually created my best friend’s wedding invitations. Maybe, I should have stuck with the side gig to make 500 dollars fast?!?
Wedding printables are now the ‘go-to’ digital products. This isn’t just about a cute ‘Save the Date’; offers a hassle-free, all-in-one wedding stationery solution, ready to match every wedding theme under the twinkling lights.
Help the DIY couples by providing a bundle: wedding program, customized hashtag sign, table place cards, save-the-date cards, and even personalized portrait options with a delightful sign thrown in.
You can provide a seamless experience and watch the sales ring along with the wedding bells.
9. Journal Inserts
Are you a fan of journaling or love designing layouts? Well, it’s time you converted your passion into profit. Making journal inserts is one of the smartest digital products you can sell on Etsy.
Audiences vary from educators needing organized lesson and homework schedules or those seeking self-help and discovery questions.
For optimal selling, focus on providing a variety of designs and including white spaces for personal touches.
With an average selling price of $5, they appeal to smart shoppers who prefer to print inserts on cardstock paper.
10. Digital artwork
Digital artwork stands out in popularity due to the unique customization and selection variety it offers.
Customers are drawn to the ability to choose from diverse art forms, including watercolor illustrations, inspirational quotes, and Baltic or Bohemian prints, that perfectly align with their personal aesthetic or represent an emotion they resonate with.
Moreover, the availability of immediate prints post-purchase greatly increases the convenience and appeal of this artwork form.
11. Recipe cards
Do you love cooking and want to create delightful digital recipe cards for your customers? But, don’t stop there, look at creating a meal planner to bundle with!
A printable, editable canvas for food aficionados brimming with delicious details of recipe cards is a great product. These digital delights are perfect for amateur chefs, bakers, and recipe bloggers.
The takeaway is clear. Selling recipe cards on Etsy is as facile as slicing butter, once you’ve got the right ingredients and the perfect recipe. It’s time to turn the heat up on your Etsy store and dish out some delightful recipe cards.
12. Social media templates
Creating social media templates can provide significant value for businesses and influencers seeking to establish a professional and cohesive online presence.
These templates, which can include pre-designed Facebook banners, Instagram stories, Twitter headers, and more, can be customized to fit a variety of themes such as minimalism, boho, or pastel colors.
When well-crafted, such templates can save businesses valuable time and effort while also helping maintain consistent brand imaging across different platforms. This is similar to a business hiring a virtual assistant with no experience.
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13. Printable Cake and Party Decorations
Selling printable party decorations as digital products on Etsy is like icing on the proverbial cake for smart entrepreneurs.
You can focus printable party decorations from charming cartoon-themed toppers for kids’ birthday cakes to exquisite, romantic pieces for weddings and anniversaries.
Whether you’re creatively inclined or have an entrepreneurial spirit spotting potential, these printables offer a loophole to financial growth. Bundle your decorations based on themes for enticing offers.
14. Zoom background
Thanks to the surge in remote working and virtual meetings selling incredible Zoom backgrounds on Etsy has emerged as a lucrative product in the digital landscape.
These tailored digital backdrops not only enhance the visual appeal of online interfaces but also cater to users’ needs to maintain privacy or conceal unorganized spaces.
However, you need to understand that creating Zoom backgrounds may not be beginner-friendly due to the required customization. However, do not let this intimidate you.
15. Productivity Trackers
People are constantly in search of practical, user-friendly tools to streamline their lives and make every hour count.
So, these productivity trackers are supremely versatile, covering daily routines, budgeting, goal setting, project management, and even grocery lists. Make your Etsy shop the one-stop shop for everyone’s needs.
As it becomes an increasingly popular choice to shift focus towards maximizing effectiveness in people’s daily lives. Whether it’s maintaining a workout routine, tracking investments, or staying on top of a student’s study schedule, these trackers cater to a wide assortment of needs.
16. Lightroom Presets
Lightroom Presets are essentially preset configurations that enhance a photo’s aesthetics, and folks from influencers to amateur photographers are keen to have them.
For starters, it caters well to the Instagram-obsessed demographic continually seeking to elevate their photo game. This venture is best suited for those who have a knack for photo editing and an understanding of aesthetics.
With an average selling price of $10, the numbers tip favorably in your Lightroom presets.
17. Etsy shop banners
Help out your new Etsy sellers by designing an impressive storefront with their shop banner.
Indulge your Etsy shop banners in various design themes suitable for a wide range of stores. Also, include a shop kit that makes store icons, a large and small banner, custom and reserved listing templates, and a profile picture graphic.
Promote your banner designing prowess to other sellers, so that you increase your brand awareness along Etsy.
When you have an awesome shop yourself, you are more likely to get sales!
18. Logos & branding kits
Move over, clip art! Logos and branding kits are in high demand as they fulfill the crucial need of every business that is striving for a unique identity.
Bundle your logos and branding kits or offer them individually to maximize your reach. Also, combining them with other digital products like media kit templates elevates your shop’s appeal.
This caters to diverse clients from Etsy sellers to businesses, influencers, and bloggers. Selling in this segment, you’ll never run short of market demand. Get ready to impress with your graphic skills, and ride the wave of this profitable venture on Etsy.
19. Thank you cards
This is a timeless product that is regularly used by businesses and individuals to express their gratitude.
Offering these thank you cards in digital, customizable formats can attract more buyers due to ease of customization and competitive pricing relative to store-bought alternatives.
You can also sell the same design on physical cards if you want for another revenue stream.
20. Fonts
In the world of businesses, creators, and crafters galore are on a relentless hunt for the perfect font that suits their needs. Where versatility is a font’s middle name – they can jazz up a brand’s website or add pizzazz to a party invitation.
Cricut fonts, in particular, are best-sellers. It is specially crafted for Cricut machines – a hit in the Etsy community of designers and makers.
Remember, the devil is in the (font) detail. Jump into the journey of digital font selling on Etsy and watch your typography turn into a treasure in no time.
21. Resume templates
Resume templates are handy, well-designed digital products are reportedly perfect for professionals keen on making their job applications stand out. It is mostly designed to suit particular sectors such as real estate or marketing.
After all, a well-structured resume could be the golden ticket to someone’s dream job – like one of these low stress jobs that pay well without a degree.
However, in my personal experience, the most successful templates are clean, professional, and neutral in color.
22. Invoice templates
You might think that cashing in invoice templates may seem odd, but these digital products offer ample sales potential on Etsy!
Their charm lies in their simplicity and frequently used nature by a wide range of businesses. Small business owners, short on time and design skills, frequently scout Etsy for professionally designed, eye-catching invoices – duly making it your prime market.
Transform invoice templates into a goldmine, with less likelihood of running into steep competition. With an average selling price of $10, you can surely earn money online quickly.
23. Website templates & themes
Are your web design skills a cut above the rest?
Leveraging your skills to create and sell website templates and themes on Etsy, and turn your talent into a tidy profit. This digital product must be customization-friendly with a range of applications, and cater to a broad audience—from small businesses to in-demand bloggers, giving them a sleek, professional online presence minus the design headache.
Begin by focusing on creating templates on popular website-building platforms like WordPress with a Kadence WP Theme. Make sure they serve a specific market, like photography websites or eCommerce stores, and ensure your products have unique, eye-catching designs that set them apart from the sea of competitors.
Remember, if your themes and templates are more unique and tailored. You can command, sometimes get a range of your product to $50.
24. Stickers
Stickers, both physical and digital stickers, are hot commodities on Etsy, cozily nestled among the platform’s top-selling items.
It also appeals to a large market spectrum, from social media users who love accentuating their chats with digital stickers, to fans of physical stickers decorating their belongings.
Remember, one major selling point is the editability of digital stickers, enabling customers to customize after purchase. Dial your creativity, pick a distinct theme, and roll out your sticker sets on Etsy – there’s a world waiting to stick onto your designs!
25. Bookmarks
Feeling bookish? Get your create-on and cash in on the thriving trend of selling digital bookmarks on Etsy.
Digital bookmarks, at a modest cost of $2 – $3 a pop, are gaining popularity as one of the easiest and fastest-selling digital products, thanks to their charm, practicality, and customized appeal.
Create an aesthetic touch on your reading escapades by hitting the serious tribe of bookworms. To amp up your sales and earn money quickly, don’t forget to add “personalization” options to your bookmarks.
26. Editable flyers
As demands surge, these feature-rich editable flyers become ideal for crafty entrepreneurs aiming to make a profit.
Most of your clients will be large markets comprising event organizers, business owners, and individuals who find convenience in ready-made editable materials.
Success in selling editable flyers on Etsy lies in understanding your target clientele’s needs, creating versatile and appealing designs, and offering top-notch quality. Kickstart your venture by preparing a wide range of attractive editable flyers.
27. Menu templates
Fresh out of the oven, menu templates are popular with restaurant owners to party planners who crave these editable, print-ready goodies.
These menu templates are flexible and can be tailored for cafes, restaurants, weddings, and even small business events. Therefore, begin by creating captivating designs–uniqueness sells and is editable for everyone who wants to customize it.
So preheat your digital oven – it’s time to serve up some mouth-watering menu templates on Etsy.
28. Gift tags
Digital gift tags on Etsy could light up your entrepreneurial path. With an average selling price of $5, these little printables have a big demand, particularly for special occasions like weddings and birthdays.
Ideal for individuals and businesses, this product can fit a myriad of needs from Christmas presents to children’s party favors. If you want to maximize your profits, focus on offering a wide range of designs that target different occasions and tastes.
Don’t forget to consider making a customization service that gives your customers a chance to tweak and add their personal touches.
29. Ebook Templates
Ebook templates have emerged as one of the most popular digital products on Etsy.
Beyond individual ebooks, sellers also offer a variety of creatively designed ebook templates, ebook covers, and materials for children’s books. With a target audience interested in arts and crafts, informative ebooks offer exceptional sales potential, especially those that provide professional knowledge in specific niches like graphic design or online money-making tips.
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Curious about selling printables on Etsy but don’t know where to start?
Get the secret list of best-selling products by month and learn you how to capitalize on seasonal trends to make sales.
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30. Fitness Trackers
Fitness trackers‘ popularity is booming as they cater to a wide array of tracking necessities beyond just gym visits or step counting.
This product helps monitor weight loss programs, home workout plans, and 30-day challenges, effectively, becoming a one-stop-shop for holistic wellness.
They are ideal for those aiming to enhance their fitness, sleep quality, and overall productivity. With an average selling price of $5, they offer an affordable solution to digital tracking needs.
31. Debt Payoff Trackers
Debt payoff trackers are fundamental tools for efficient financial management and debt reduction. They provide a concrete visual of one’s financial obligations and illustrate the progress made toward extinguishing each debt.
This encourages a consistent habit of payment and propels individuals towards financial freedom. However, cost should not be a barrier to good financial habits, which is why our website offers a wide range of high-quality debt payoff trackers completely free of charge.
While these are still popular on Etsy, you have to realize many people want free or extremely cheap.
32. SVG Files for Cutting Machines
Scalable Vector Graphic (SVG) files for cutting machines like Circut or Silhouette, are a crafter’s dream, making them a top-tier product to sell.
You can elevate your service by including a PDF tutorial or short video guide demonstrating the use of your product.
Ensure the functionality of your products by carrying out tests prior to listing.
33. Personalized Recipe Books
Being a foodie’s ultimate treasure, these recipe collections are perfect to tickle the taste buds of amateur cooks or pro food bloggers. Plus you can create recipe book templates to be used in Goodnotes or Notability.
Cultivate your online presence to spice up the sales of your digital recipe books.
From personal experience, I bought a digital recipe book because I didn’t want to create one myself.
34. Budget Planners
Budget planners are soaring in popularity, with these nifty tools averaging quite a tidy sum of $5-20 each. Its powerful design is both lucrative for sellers and beneficial for buyers.
In an increasingly digital world, these planners provide a seamless way to stay and stick on top of your finances. From the ordinary individual aspiring to save a penny or two to the business owner meticulously monitoring their profits and expenses. Some budget planner pros, like FRGLMAMA, have made over 60,000 sales!
Here’s a pro tip: Increase your profits by bundling your budget binder with envelopes and to-do lists. Users love the convenience and it saves them a search.
35. Wall Art
Calling all artists and designers with flair! Wall Art reigns supreme on Etsy – proving it’s not just a ‘dabbling’ industry, but a potential goldmine.
Remember, the ‘Home Sweet Home’ and ‘Be Kind’ style arts still hold their charm! Maximizing profits can entail providing add-on services such as printing and shipping.
Wall art downloads make great posters, especially for those who prefer to change up their decor often.
36. Gratitude Journal
Gratitude journals, with their guided prompts and questions, make hot picks for those striving for self-improvement or simply savoring the good in life. This little gem, flourishing in popularity, provides a thoughtful juncture for folks to reflect on the positive aspects of their lives.
This digital product is tailored for therapists, life coaches, stressed corporate followers, or anyone looking to light up their lives with gratitude.
Make sure to use keywords related to gratitude and journaling in your product description to maximize visibility.
37. Self Improvement Printables
People love these printables for their blend of practicality and inspiration by giving actionable tips, uplifting affirmations, useful trackers, and more.
These self-improvement printables are timely digital products that strike a chord with a growing audience keen on personal growth, self-care, and organization.
This product is perfect for those seeking self-help workbooks, motivational quotes, fitness planners, and even kid-friendly educational materials.
Is selling digital products on Etsy still profitable?
According to legions of online entrepreneurs, the answer is a resounding YES!
As the market for digital products keeps on growing, so does the profit potential for digital sellers on Etsy.
The startup costs are delightfully low – most of what you’re paying is merely for your product’s licensing and Etsy fees. After that, it’s all pure profit!
This method could be your ticket to financial freedom. So if you’re a creative at heart with a knack for producing digital gems, it’s high time you join the Etsy bandwagon to sell your valuable creations.
Etsy passive income isn’t just a haven for handcrafted goods – it’s also a hub for downloadable products from design templates to educational materials.
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Curious about selling printables on Etsy but don’t know where to start?
Get the secret list of best-selling products by month and learn you how to capitalize on seasonal trends to make sales.
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Now, What Digital Downloads to Sell on Etsy?
By now, you’ve embarked on an enlightening journey around the process of selecting digital products to sell. You have digested tips, explored examples, and refined your knowledge regarding your market, skills, and customer desires to ensure profitability.
So, let’s cut to the chase, find your product that fits the mold, craft an appealing product description, price it competitively yet profitable, and start making waves with your expertise in the digital market.
By coupling this post with the free training offered, you could be the next seller with digital products that are the next hotcake on Etsy! Will you be the next Etsy seller to learn how to make 10k a month?
Take your first step towards this entrepreneurial journey, and soon enough you could be reaping the sweet profits of your digital endeavor.
Now, start your listings and remember to believe what you have to offer is worth buying.
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Flexibility can be a real asset in a career. Maybe you’re young and figuring out your post-graduation path. Or you’re busy balancing the demands of running a home and caring for a family. Or you’re an athlete who needs plenty of time for training and recovery.
There are lots of flexible-schedule jobs out there, if you know where to look. Let’s check out some part-time jobs with flexible schedules.
What It Means for a Job to Have a Flexible Schedule
Whether you’re in college or caring for children or pursuing an unpaid passion, there are many reasons why someone would want some flexibility in their career.
But what does a flexible schedule mean exactly? According to the U.S. Department of Labor, a flexible schedule is one that allows people to work outside traditional 9 to 5 office hours. Aside from that, situations vary depending on the role and employer.
Workers may be able to choose the time they arrive at and depart work, for instance. With certain flexible work policies, employees still have to work a set number of hours per pay period or be available during a daily “core time.” So while the employee may not have to show up at 9am on the dot and leave at exactly 5pm, they may need to at least show up by 11am and stay until after 3pm. However, this type of shortened schedule could work for many people, including parents who are self-employed. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.
Tips for Finding a Flexible Part-time Job in 2023
Flexible part-time jobs can be logistical, analytical, creative, or involve a skilled trade. When it comes time to search for flexible-schedule jobs, keep in mind these tips.
• Stay focused. Job applicants who know what they’re looking for and what they can offer an employer can plan a more effective job search. If someone knows they have to have a flexible part-time schedule in order to accept a job, they can save a lot of time and energy by only applying for jobs that offer that. Trying to convince an employer to change their staffing plans is an uphill battle.
• Prepare to hear No. Know that it will take a while to find the right fit, and that rejection is a normal part of any job search. Psychologically preparing yourself can help you persevere until the right job comes along.
• Don’t be a square peg. If a flexible part-time schedule is what matters most, you may need to be flexible yourself in other areas. For example, accept that you may need to compromise on title, salary, or industry. Giving up the highest-paying job for one with a more relaxed schedule can be worth it.
• Go remote. Work-from-home jobs with flexible schedules can often be easier to find than on-site jobs that have flexible schedules. When reviewing online job boards, look for flexible schedule remote jobs.
Recommended: Does Net Worth Include Home Equity?
Why It Can Be Difficult to Find Part-time Jobs With Flexible Schedules
It can be difficult to find flexible-schedule part-time jobs because many jobs require being in a certain location at a certain time. For example, a hairstylist has to show up for work when they have appointments scheduled. A restaurant has to know they have enough servers on hand during operating hours. Even a corporate job where some work can be done remotely and independently can require being online during set times so that it’s easy to communicate with coworkers.
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Great Part-Time Jobs With Flexible Schedules
Perhaps someone wants to take on a second job to help them pay down their debt or save for a dream vacation. Whatever the reason, it’s easy to see the appeal of a part-time job with a flexible schedule.
While there are countless part-time jobs on the market that can suit a variety of workers’ desired schedules, these are some of the best flexible schedule jobs for Gen Zers and Millennials. And if you’re in college, don’t miss our list of the best on-campus jobs.
1. Landscaper and Groundskeeper
Average hourly wage: $17.39
Job description: Landscapers and groundskeepers typically set their own schedules and plan which days they’ll tend to a client’s yard, but they don’t have to tell them exactly what hour they’ll show up to do their work.
Requirements: In some areas a license may be required to use pesticides and fertilizers.
Schedule flexibility: 4
Duties:
• Mowing lawns
• Removing weeds
• Planting and maintaining flowers, bushes, and trees
2. Recreation and Fitness Worker
Average hourly wage: $22
Job description: Running a fitness or recreation class can be fun and rewarding work that is often performed on a part-time basis. Many instructors can choose when they host their classes (like when their young child is in school), but they do have to stick to those times.
Requirements: Licensing or background checks may be required.
Schedule flexibility: 4
Duties:
• Plan programming
• Run classes
• Clean up post-class
3. Freelance Software Developer
Average hourly wage: $37
Job description: Many businesses hire freelance software developers to create computer programs and applications for business or consumer use. Some meetings during business hours may be required.
Requirements: Knowledge of select programming languages.
Schedule flexibility: 4
Duties:
• Write code
• Test code
• Meet with project stakeholders
4. Virtual Assistant
Average hourly wage: $34
Job description: Plenty of professionals can’t afford or don’t need a full-time assistant. Instead, they hire virtual assistants who can tackle administrative work for a few hours a week. Virtual assistance can be a rewarding job for introverts who are conscientious and organized.
Requirements: Office skills
Schedule flexibility: 4
Duties:
• Scheduling meetings
• Managing clients’ inbox
• Helping with administrative work
5. Freelance Copywriter
Average hourly wage: $28
Job description: A writer can work with many different brands as a freelance copywriter and can choose when they want to take on new projects and what hours of the week they work on them. Working as a freelance copywriter is also a great side hustle.
Requirements: Bachelor’s degree and industry experience
Schedule flexibility: 5
Duties:
• Research
• Writing copy
• Editing copy
6. Freelance Web Designer
Average hourly wage: $35
Job description: Freelance web designers work independently designing websites for a variety of clients, instead of a full-time job. Work-from-home web design can be a well-paying and fulfilling job for antisocial people.
Requirements: Knowledge of design programs, and HTML and CSS programing languages.
Schedule flexibility: 3
Duties:
• Design web pages and sites
• Code designs
• Present to clients and incorporate feedback
7. Freelance Editor
Average hourly wage: $31
Job description: Similar to copywriters, editors can work freelance for multiple clients.
Requirements: Bachelor’s degree and industry experience
Schedule flexibility: 4
Duties:
• Nurturing writers
• Editing copy
• Publishing content
8. Business Consultant
Average hourly wage: $37
Job description: A business consultant can offer services to multiple businesses who need support as a whole or who are looking to improve a certain area of their business, such as their marketing efforts, operations, or HR.
Requirements: Bachelor’s degree, master’s degree (more advantageous), or a certification from a business consultant association.
Schedule flexibility: 3
Duties:
• Assess potential areas of improvement
• Create improvement plans
• Find ways to cut costs
💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
There are plenty of great flexible-schedule jobs that millennials and Gen Zers can pursue to give them the time they need to attend school, start a business, or take care of young children. Some remote freelance roles can be entirely flexible — such as web designers, writers and editors — while other jobs require your presence during certain core hours.
Choose whether you prefer a more physically demanding job — such as landscaper or fitness worker — or an office job that requires a laptop (like virtual assistant). It may take time to find the right position, so be patient. It’s also a good idea to keep an eye on how your money comes and goes to ensure you’re sticking to your savings goals.
Take control of your finances with the SoFi Insights money tracker app. Connect all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
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FAQ
What part-time job has the most flexible hours?
There is no single part-time job that has the most flexible hours. That said, jobs where work can be done independently and remotely usually have the most flexibility. Jobs like working as a freelance writer or graphic designer are good examples of jobs someone can usually do during times that work well for them.
What job gives you the most free time?
Flexible-schedule work-from-home jobs can give workers the most free time because they don’t have to worry about a commute. It’s also usually easier to control your work schedule when you work from home. As a bonus, you can use your breaks to be productive — by tackling household chores or working out — or enjoy down time.
What jobs can I make my own hours?
Some jobs with flexible schedules allow workers to set their own hours. The key is to look for a job where the hours someone works doesn’t matter as much as the type of work they produce.
Photo credit: iStock/Eva-Katalin
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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Financial goals are meant to help you live your best life, whether that means helping you buy your dream home, affording your child’s education, or taking your mother on a cruise for her 60th birthday. To help you get there, it’s vital to have a budget that works for your situation and aspirations.
Having a budget can help you see where you are financially, know whether you’re on track for reaching your goals, and identify ways you can adjust your spending.
Once you have a budget nailed down — and the math is not as scary as some people think — you can reconfigure and adjust. After all, a budget is meant to work for you so you can reach your money goals, not the other way around. It can evolve right along with you, your needs, and your goals.
Why Is Creating a Budget Important?
Creating a budget is important because it allows you to see where your finances stand: You see how much money is coming and how much is going out, plus what it is being spent on.
It can provide you with a snapshot of your financial life, and it can illuminate any issues you need to address. Think about it: If you don’t know where your money is going, you can easily spend more than your means, leading to more debt than you can handle. Not budgeting can also prevent you from reaching your goals, such as having enough in retirement savings or being able to afford that kitchen renovation you’re pining for.
Although some people think a budget will cramp their style, the truth is that a budget doesn’t have to hold you back, restrict you from fun, or sour your lifestyle. It can eventually set you free from the financial burdens that are keeping you from setting and reaching your ultimate life goals.
Next, learn the step-by-steps.
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1. Determine Your Financial Goals
Setting financial goals is a crucial first step to being more intentional with your money management tactics. As in, having a purpose can give you more motivation to stick to your budget and get you on your way to creating smart financial goals that suit your life.
How to set financial goals? Start by taking time to come up with a clear idea of your short-term and longer-term aspirations. What kind of things could you dream about? Anything that’s ultimately important to you could be a financial goal example, including:
• Having $1,000 in the bank
• Hosting an amazing 30th birthday party for your partner
• Buying a home
• Starting a family
• Getting some new wheels
• Taking a dream vacation
• Getting out of credit card debt
• Starting your own business
• Planning for retirement
• Establishing and maintaining an emergency fund.
2. Calculate Your Income
Before allocating money for various spending categories and goals, you need to know how much money you have to work with each month. Calculate your after-tax income — you can look at your paystub and/or other earnings from your side businesses or second job. Or maybe you are the lucky holder of an investment account that generates dividends. Perhaps you regularly receive bonuses or tips at work. Add it all up.
3. Review Your Expenses
To make a solid, workable budget, you also need to know exactly how much money is typically going out. Pull together all your financial statements and look at how much you typically spend per month in the following budget categories:
• Loans (such as student or car loan payments) and debt (including credit cards)
• Insurance premiums
• Housing
• Utilities
• Monthly food expenses
• Childcare, child support, or related family obligations
• Transportation-related expenses
• Healthcare
• Savings/investments (for instance, 401(k) or IRA automatic savings deductions).
In addition, think about some other spending categories that are more about discretionary purchases. You can also track:
• Dining out (even those lattes to go)
• Entertainment, such as movies, books, concert tickets, and streaming services
• Personal care (manicures, yoga classes, etc.)
• Travel
• Gifts or treating friends to birthday drinks or dinners
• Non-essential clothing, electronics, home furnishings, and any other fun things you might go shopping for.
As you gather this information, you may want to look at a couple of months’ worth of records. For example, your credit card bill may vary considerably, so averaging a few months will give you a more realistic picture than checking a single month.
Once you have an idea of what you spend, it’s time to take a look at where you may be able to make adjustments. Many people look at their spending as “needs” versus “wants.” A need is something required for basic existence, while a want is discretionary spending. Needs also include debt payment, so if you have a student loan or similar monthly expenses, include that in the need category.
Also consider looking at each spending category in terms of fixed and variable expenses. For instance, your mortgage is a fixed expense since it typically won’t change from month to month, whereas entertainment would be a variable expense since it can change. Don’t forget to look at occasional expenses — like semi-annual car insurance payments — so you can set aside money in your budget each month to account for this expense.
4. Choose Your Budgeting Method
Subtract your monthly expenses from your monthly income. How are you doing? If there’s money left over, it means you may be able to meet your financial goals. Otherwise, you may need to either cut your expenses a bit or earn more money (or try a combination of both).
Whichever direction your money is trending in, you can benefit from a budget to get your cash aligned with your goals and provide guardrails for your spending and saving.
While there are a bunch of budgeting methods, what’s most important is to find an organizing principle that works for your personal and financial style. Some options to consider:
The 50/30/20 Budget Rule
The 50/30/20 budget rule breaks up your budget using the following percentages:
• 50% on essential expenses. This category could include housing costs, utilities, car payments, debt payments (student loans, credit card minimums due, etc.), education costs, food, basic clothing, childcare, and medical expenses.
• 30% on discretionary expenses. Your discretionary expenses could include shopping, entertainment, personal care, travel, and other expenses that may not necessarily be considered essential.
• 20% toward your goals. This amount of money can go into savings and investments as you work toward things like an emergency fund, a new car, retirement, and/or your child’s college education.
Recommended: Discretionary Income Explained
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The 70/20/10 Budget Rule
The 70/20/10 rule is another budgeting method. It’s similar to the 50/30/20 one but allocates more money toward your needs (70%) and less to the wants and savings areas. This budget can be a good variation for those who are just starting their careers or anyone who lives in an area with a high cost of living.
Zero-Based Budget
The zero-based budget system gives every single dollar a purpose so that every bit of your income is accounted for. You start with your monthly income then keep subtracting expenses (even savings or a sinking fund counts here) until you get to zero. This system can help you be more mindful since you know how your money is allocated.
The Envelope Budget System
With this technique, you write the name and cash amount you have for each spending category for a month. For example, you allocate $2,000 for housing for one envelope, and $600 for food in another. You can only spend the allocated amount in each category.
If there is no more cash in the envelope but the month isn’t over yet, you will need to wait until the next month to replenish it or borrow from another category and spend less there. For instance, if you need cash for an insurance premium that went up, you could save on streaming services by dropping a platform or two while you adjust your budget.
This method can be adapted to use debit card payments. You don’t have to literally only use cash.
5. Make Adjustments
A budget is a dynamic, living entity. Some months may be more expensive than others. For instance, you might have an emergency one month (your laptop dies) and wind up spending more (or even going into debt) to make ends meet. Life happens: use these situations to learn and readjust.
You can also look for trends in your money. If you find you are living paycheck to paycheck, you might find ways to economize (such as getting a roommate) or to earn more money.
After using your new budget plan, you should review and update it regularly. You may need to do it more often at the beginning of your budgeting journey when you’re getting used to looking at your finances in a new light. Still, it is typically useful to review your spending at the end of each month to see if your budget is still working for you. If not, then take the time to see what may be happening and tweak your spending as necessary.
Another reason you may want to make adjustments is if your life situation changes, such as you have a baby or get a divorce. Or your income may have gone up, so you will need to think strategically about how best to allocate those dollars to help you reach your financial goals.
Monthly Budget Example
Here is an example of a family’s monthly budget:
Total monthly income: $4,650
Monthly breakdown of expenses:
Monthly income
$4,650
Monthly expenses
Rent
$2,000
Groceries
$400
Student loan payments
$337.50
Car payment
$150
Credit card payment
$300
Discretionary spending
$232.50
Utilities
$330
Auto & renters insurance
$150
Career enrichment class
$60
Savings
$400
TOTAL:
$4,360 ($290 surplus)
How to Handle Unexpected Expenses in Your Budget
You know how it goes: Life can be filled with unexpected expenses, such as a car repair or larger than expected medical bills. Instead of letting these derail you, work unexpected expenses into your budget.
There are several ways you can go about it, one of which is to have a bit of a buffer in your account. Meaning, you can allocate some extra cash each month just in case — any money that isn’t spent, you can roll it over onto the next month. It can act as a cash cushion in your checking account.
You can also consider building up an emergency fund, a separate set of savings in case you have unexpected expenses. The amount will vary, but a good rule of thumb for how much to have in an emergency fund is to save three to six months’ worth of basic living expenses.
How to Work With Your Family or Partner to Create a Budget
Creating a budget with others means being open to a conversation about what each one needs, and how you can keep each other accountable. It can start by having a meeting about family spending. You can discuss and agree to budget goals and reasonable expenses and use a budget planner to help you solidify things.
Once a preliminary budget is created, find a way to ensure that everyone sticks to it. Some tactics include having one joint account to ensure everyone can track spending or having an app where your partner or family can see an overview of the finances. Whatever you choose, it’s important to meet regularly to review your budget to see whether adjustments need to be made.
💡 Quick Tip: An emergency fund or rainy day fund is an important financial safety net. Aim to have at least three to six months’ worth of basic living expenses saved in case you get a major unexpected bill or lose income.
The Takeaway
Creating a budget to set and reach your financial goals doesn’t have to be hard, and it can be a great way to guide your spending and saving. While there are many approaches and techniques to try, what matters most is finding one that is a good fit for you personally and helps you feel in control of your cash. By learning how to manage your money well, you can be on track to crush your personal and financial goals, whether short- or long-term.
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FAQ
What is money management and why is it important?
Money management involves making a plan to help you reach your financial goals, such as getting out of debt, saving for a vacation, or buying a new home. Without sound money management, it can be hard to understand your personal finances and reach your goals.
How do I prioritize my expenses?
You can prioritize your expenses by making sure you have an effective budget and sticking to it. You’ll likely want to prioritize basic living expenses and debt payments. Discretionary spending on the fun stuff of life (entertainment, eating out) can be an area to rein in, if needed.
What are some common mistakes people make with their money and how can I avoid them?
Some common mistakes people make with their money include not establishing clear financial goals, not building a budget that works, and not tracking their spending. To avoid them, it’s a wise move to find a budget technique that works for you, to regularly review and tweak your financial goals, and make adjustments when necessary.
What are some resources available for improving my financial literacy?
Your bank likely offers articles and tools to help improve your financial literacy. You can also head to government or reputable sources like the Consumer Financial Protection Bureau, or buy books or listen to podcasts by respected sources. You can also seek the help of a financial professional.
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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.
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Sara’s been reading personal finance blogs for a while now, and she’s ready to set up a budget. She’s come to us for help. She writes:
I would like to start listing my spending totals into a spreadsheet budget along with setting goals for ‘bigger things’ (trips, winter tires etc). Do you have a budget template that works for you, or could you please recommend a few tips on getting started?
A budget can be an excellent tool not only for planning your spending, but also for planning your saving. Over the past 2½ years, I’ve shared a variety of budgets and budgeting tools — here are some of my favorite.
3 Budget Frameworks
A budget doesn’t have to be complicated. In fact, readers have recommended three very simple budgets to me in the past. Most people will need more detail than these provide, but each provides a framework on which to build something more personal. (Notice that each of these allocates 20% to savings. If you can pick that habit up early, you’ll be way ahead of the game.)
In The Only Investment Guide You’ll Ever Need, Andrew Tobias offers the following simple yet effective budget:
Destroy all your credit cards.
Invest 20% of all that you earn. Never touch it.
Live on the remaining 80%, no matter what.
Although Tobias is being glib, this is actually an excellent system. If you can develop the discipline to follow just these three steps, you can become rich.
In All Your Worth: The Ultimate Lifetime Money Plan, the authors argue that in order to succeed financially, you must keep three broad areas of your finances “in balance”. They say to divide your net income (after-tax income) as follows:
Allocate 50% to Needs (which the authors call Must-Haves). Needs include housing, transportation, groceries, insurance, and clothes you really need.
Spend 30% on Wants. Wants include cable television, clothing beyond the basics, restaurant meals, concert tickets, comic books, knitting supplies, etc.
Set aside 20% for Savings, including debt repayment.
This budget is designed so that you can save a lot and have fun. To achieve this, the authors encourage you to reduce your Needs. In fact, reducing Needs is the cornerstone of their advice.
At MSN Money, Richard Jenkins offers his 60% solution. He suggests your budget should divide monthly gross (pre-tax) income like this:
60% to Committed Expenses such as taxes, clothing, basic living expenses, insurance, charity (including tithe), and regular bills (including things like cable).
10% to Retirement.
10% to Irregular Expenses such as vacations, major repair bills, new appliances, etc.
10% to Long-Term Savings/Debt — money set aside for car purchases, home renovations, or to pay down substantial debt loads.
10% for Fun Money to be used for dining out, hobbies, indulgences, etc.
Jenkins believes that the best way to relieve money pressure is to reduce Committed Expenses: cut the cable TV, spend less on clothing, reduce your housing expense, etc.
4 Budget Spreadsheets
Once you’ve picked a framework on which to build, there are a host of budget spreadsheets to choose from. My top recommendation is the PearBudget spreadsheet, a detailed, polished work of Excel art. If this doesn’t meet your needs, move on to another option.
One of those options is the free and simple budget planner that Jeff M. shared with Get Rich Slowly readers last February. It’s available in two formats:
Microsoft Excel (70kb) — right-click and choose “Save as…” to download. This file should also work with Open Office.
Google Docs — select “File -> Copy spreadsheet…” to save to your account.
Jeff’s spreadsheet is designed solely to keep you on a budget you’ve already set, not to help you create a budget. Budgets vary from person-to-person. Create one that works for you, and use this planner to track your progress. If you need help developing a budget, try this Google Docs budget estimator from GRS-reader Justin M.
Finally, GRS forum administrator Stephen Popick shared his homegrown budget workbook last year. This highly customizable spreadsheet has tabs for your budget and your spouse’s budget.
(If you’re looking for other financial tools, It’s Your Money offers an additional 33 personal-finance spreadsheets for a variety of uses, from budgeting to fuel tracking to CD laddering.)
3 Web-Based Budget Tools
Naturally, there are web-based tools for budgeting, too. Here are three excellent choices:
The afore-mentioned PearBudget comes in a web version that receives rave reviews.
NeoBudget is an online budget manager that uses the envelope method to help you track your spending habits and stick to a budget.
Finally, You Need a Budget offers a robust feature set, and is probably most appropriate for advanced budgeters.
I’ve never used any of these products. If you have tried one (or more), leave feedback to let us know your impressions.
A Few Words of Advice
Last March, Joshua explained why he believes budgeting is the most important thing you can do with your money, and offered hints on how to get started. More recently, Trent at The Simple Dollar shared his 10 tips for a successful budget:
Know why you are budgeting. Don’t do it just because you think you should — do it to help yourself spend less than you earn.
Have a specific, concrete long-term goal in mind. Remember: the road to wealth is paved with goals.
Know how much you actually make.
Have accurate data for both your monthly spending and your irregular spending. You can get this data by learning to track your spending.
Choose checking and savings accounts that include useful budgeting tools by default. ING Direct, for example, makes it easy to open multiple accounts.
Use a simple budgeting tool that you’re able to understand. “Start with pencil and paper if you have to,” Trent says. (Any of the tools I listed above would be a good choice.)
Be realistic. Don’t start by promising yourself to be a super saver. Take small steps, and work up from there.
Get support from at least one other person.
Set some short-term goals that will be easy to achieve if you stay on budget. These will give you a psychological boost so that you’re more likely to stick to the program.
Don’t be afraid to adjust your budget (even radically). Be flexible. Your goal is to find a system that works for you.
Trent’s advice is great. I’d add that, if possible, you should base your budget on yearly expenses. The Journal of Consumer Research found that people are more accurate when constructing an annual budget than a monthly budget.
Reader Hints and Tips
All of these tools are excellent resources to help Sara start budgeting. I think her best bet, however, is to pick the brains of Get Rich Slowly readers. You are real people with real lives who have implemented real budgets. You’re not some personal finance writer pushing a theoretical model to sell books.
If you keep a budget (or have in the past), what’s the best way to get started? What works? What doesn’t? What should Sara do to ensure ongoing budgeting success?
Michelle’s quick note: Today, I have a great blog post on how to save money for a large deposit from Rachael, who is a long-time reader of Making Sense of Cents. Rachael purchased her first investment property at the age of 20 by saving for a deposit and found many great ways to save for the 20% deposit. Below is her blog post. Enjoy!
I bought my first investment property with a 20% deposit when I was 20 years old (admittedly I was 2 weeks shy of turning 21!). I accomplished saving for a deposit with my own money, my parents never gave me a cent. So how did I do it?
1. The first thing I did was start applying for jobs as soon as I turned old enough to get a job. I started working when I was 15 as a checkout chick at Woolworths. Not very glamorous, a bit boring and repetitive but I was earning money! I worked about 10 hours a week during my last 2 years of high school, and worked around 20 hours per week during the school holidays. I worked at Woolworths for 3 and a half years and saved a good chunk of the money I earned.
Related:
2. When I worked during high school the only time I would ever say no to a shift is if I was sick or had an exam the next day. It didn’t matter if I didn’t want to go to work (does anyone ever actually want to go to work?) I hated that job but I wanted a property so I went to work.
Sometimes I’d get home from school, get changed into my work uniform then go straight to work until 9:30 then come home and study until midnight to get homework and assignments done, then go to school the next day. I know some people don’t agree with kids working while studying but it was really helpful for time management as it didn’t leave me with any time to procrastinate!
3. The main contributor to earning enough money for the deposit was opening an Etsy shopI’d been designing printables to help keep me organized for a while and decided to start an Etsy shop to save up some money for a trip to the USA (I live in Australia). I ended up making enough money to cover most of the cost of the holiday. The intention when I got back from vacation was to close up shop and focus on my university studies. But I came back to tons of messages from people asking when my shop would be reopening because they wanted to buy my printables. I thought I may as well leave the shop open and make some extra money to supplement the income I was earning as a checkout chick (which was not much!)
About 6 months later my sales kept growing even though I wasn’t creating many new printables – I was earning more than I was scanning groceries (and having a lot more fun!) so I decided to turn my Etsy shop into a business. It also made me realise that I’ll never earn an above-average or life changing money working for someone else.
When I started my 3rd year of my university course, I got a job in my field. For 3 months I worked 10 hours a week scanning groceries, 25 hours a week at my day job, juggled my 2 Etsy shops, a blog, and maintained a high GPA at my university studies. I say this not to brag, but to point out that the money wasn’t just handed to me on a silver platter – if you want something you have to work for it. Needless to say I was burnt out. I quit being a checkout chick (that was a wonderful day!) and sought other ways to save the money I was no longer making from working those 10 hours a week. If you’re looking for ways to make extra money, Michelle has dozens of posts with side hustle ideas.
My biggest advice when it comes to saving money is not to increase your standard of living when you start earning a higher wage.
Aside from starting an online business, I saved money in numerous other ways:
4. I don’t have a car. When I did the math it was cheaper for me to pay higher rent and live closer to the city and use public transport (plus it’s more convenient). I share an apartment with my sister which also helped me save money as bills are split in 2, and it’s cheaper to rent an apartment with someone than it is to live by yourself
5. I buy stuff when it’s on sale & stock up. Yep, I’m one of those crazy people that buys 30 rolls of toilet paper when they’re on sale. When a sale does come around, I’m organized and have a list of everything I need to buy – the key is that you only buy what you need not just stuff that you want.
6. I bring my own lunch. I see so many of my work colleagues wasting their money on donuts, coffee and buying lunch every day. Then they whinge and seem confused that they don’t have any money by the end of the month when they’re screaming out for payday. One of the reasons I work as much as I do is because I never want to live paycheck to paycheck
7. When I was saving up I put most of my money into a term deposit. Not only did this prevent me from spending it, it also earned a higher interest rate than an everyday savings account. When the term deposit expired and I still didn’t have enough for the deposit, I went to my bank every couple of months and opened a new savings account so I could get their 3 month introductory bonus interest rate (by the 3rd time of doing it the bank knew me by name and just reset the interest rate rather than making me open a new account!)
8. I track where all of my money is spent using my budget binder printables – no joke, every single dollar gets accounted for. I do the same with my business income and expenses using these spreadsheets.
9. I set a maximum amount I would pay per piece of clothing and stuck to it (still stick to it!) no matter what ($20 for shirts, $40 for a pair of shorts in case you were wondering – keeping in mind that clothes are more expensive here in Australia). If I find a piece of clothing that I like I also buy it in multiples when it’s on sale. I have an ‘around the house’ wardrobe which consists of cheap clothes I wouldn’t wear in public but are perfect for blogging!
10. I utilise credit cards. A lot of people have a misconception that credit cards are bad but they’re not if you use them to correctly i.e. not to buy stuff you couldn’t otherwise afford. Not only do I not have to carry cash but when I makes purchases on my credit card I accumulate points that can be converted to cash.
Plus most credit cards will give you a signup bonus (such as cash or frequent flyer points) – just make sure you check that the bonus is more than the annual fee. You can always cancel the card before the end of the year then sign up for a new card the next year to get a new signup bonus.
By purchasing on credit card, you can keep money in your savings account for longer meaning YOUearn interest on your money, not your bank. I use my budget plannerto keep track of when money needs to be transferred so I’m not hit with a late fee.
Related: How To Take A 10 Day Trip To Hawaii For $22.40
11. I’m on the lowest phone plan with the smallest amount of data and I still never reach the limit because I utilise free wifi. I always make sure my phone is set to wifi when at home, and if I need directions somewhere I’ll look it up and take screenshots before I go so it doesn’t use up data.
12. I try and travel during off-peak season. And if I do travel during peak season I travel with others so the cost of accommodation and airport transfers can be split.
13. Comparison shopping research. I always compare the cost of basically everything before purchasing. Each week I go through the grocery catalogues and see which shops have the same item for the cheapest price. If I’m buying electronics I make sure I take advantage of price matching.
14. Before I buy anything I ask myself: ‘do I really NEED this?’ We all have that one thing that we can’t resist. For me, it’s stationery. I’m a massive stationery addict and the number of times I’ve had to tell myself no when I see a cute notebook or another pen sucks, but if I don’t actually need it then I don’t need to buy it.
15. I use ATM’s that don’t charge me transaction fees. Make sure you check with your bank if there are any banks they partner with i.e. won’t charge you fees, or at least look at which ATM’s charge the lowest fees if you withdraw money and aren’t a customer with that bank.
16.I never buy stuff from convenience stores – they charge double the price for a chocolate bar, a bottle of water etc. as the supermarket. I was with a work collage at lunch and she spend 4x the cost on 2 items that she could’ve got for way cheap if she walked 100m up the road to the supermarket. She didn’t even bat an eyelid and all I could think was you just spend a third of your hourly wage on stuff that’s going to be consumed in 5 minutes!
17. I’ve never ordered dessert at a restaurant. Ever. Why pay $12 for a bowl of ice cream when I can buy 3 tubs for the same price?!
18.I never buy scatchies, lottery tickets or participate in sweepstakes at work. I believe you’ve got to make your own luck!
19.When I catch up with friends I do so over lunch or afternoon tea rather than dinner as meals are usually cheaper.
20. I walk around my neighbourhood rather than paying for an expensive gym membership.
Related: The Busy Person’s Guide On How To Be Healthy
The 20% deposit on my first investment property
All in all it took me about 5 years to save the deposit. I’m not going to sugar coat it. It was hard. Really hard. ‘Training’ myself to say no, to really ask myself if I actually need something as opposed to just wanting it was not fun.
And just because I have the property now, doesn’t mean I’m going to suddenly stop being ruthless about saving money. My mentality is now ‘I could buy this for $100, or I could put that towards an extra mortgage repayment.’ I tracked my savings and spending (no joke, I account for where every dollar goes) using my budget binder printables(which I still use to track my spending).
Related: Home Buying Tips You Need To Know Before You Buy
As for whether I’d buy a property at 20 again, I’ll admit there have been times when I’ve regretted my decision. I could’ve done a LOT of travelling with the money I’ve poured into my mortgage (as well as all the other ongoing costs such as property management fees, body corporate, maintenance etc.).
I’ll admit I do get jealous of my carefree 20-something friends’ holiday photos, and that they have no qualms about dropping a couple of hundred dollars on a concert ticket. I also wouldn’t have to awkwardly ask friends to pick me up if we go out since I can’t afford a car (I do pay them money for fuel!) If interest rates weren’t at historically low rates at the time, then I also probably wouldn’t have been able to purchase the property.
But whenever I feel ‘depressed’ looking at how much money I’ve poured into the mortgage and how much interest is added to the balance each month, I remind myself that I’m on track to paying off my mortgage by the time I turn 30 and I feel a whole lot better! ☺
What have you done so that you can save a large amount of money such as saving for a deposit?
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
A 2021 study from Pew Research Center found that the median annual income of Asian households in the U.S. was nearly 39% higher than the rest of the country.
But lived experiences are much more nuanced.
“In my experience, managing money doesn’t come up often in a typical Asian American household,” says financial influencer Max Do. “You assume it’s being taken care of, and it doesn’t come up until there is a problem.”
That same study noted that income and poverty rates vary widely among the many ethnicities that fall under the umbrella term Asian Americans and Pacific Islanders.
Vivian Tu, another financial influencer, says her family loves to talk about money. Their experiences highlight just how varied the spectrum of financial exposure is within Asian American and Pacific Islander households, another reminder that the AAPI community isn’t monolithic.
We spoke to six AAPI financial influencers to learn more about financial challenges faced by Asian Americans, how to balance money and familial responsibilities, and the importance of focusing on your financial journey.
Responses have been edited for length and clarity. Learn more about each financial pro below following the questions.
What do you think are the financial challenges Asian Americans face?
Vivian Tu, Your Rich BFF: “Given that so many Asian Americans have parents or grandparents who are immigrants who likely lived through some challenging times, the culture of saving is deeply rooted in our community. This is passed on, meaning that even grandchildren or great-grandchildren who grow up in financially stable, upper-middle-class families may face a constant fear of scarcity.
What I think is important to acknowledge is that as important as saving is, it’s OK to also enjoy your life. Money is made to help you purchase goods and services that improve your daily living. We should also emphasize how important it is to invest and grow our wealth because saving money under the mattress is losing money over time to inflation.”
Aja Dang, Mstrpln: “My experience might be unique because, as a fourth-generation Asian American, no one in my family ever taught me about money. No one talked to me about savings or even how difficult it was for my parents to support me when I was younger.
The one thing that was more important to everyone was getting into a ‘good’ school so you could get a good job, which was the catalyst for my six-figure debt. My parents and I naively believed that going to out-of-state private schools seemed like a necessary expense for a promising future. Ultimately, that didn’t end up happening, and I struggled with debt for a decade, but that experience indirectly taught me the importance of financial transparency and savings.”
Tae Kim, Financial Tortoise: “Many second and third-generation Asian Americans grew up in working-class immigrant families where frugality and saving were the default. Our parents feared the new world and found comfort in saving as much as possible.
So we respond to our parent’s culture of saving in two ways. One, we carry on the tradition and continue to save, finding comfort in it as our parents did. Or two, we retaliate because we feel we were deprived and live the luxurious lifestyle our parents kept us away from. I was, unfortunately, the latter. Each generation has its unique view of the world and approach to managing money, so it is important that we find our own.”
How do you think the culture of saving influences how second- or third-generation Asian Americans manage money?
Simran Kaur, “Girls That Invest”: “We have the challenge of understanding that our parents or elders immigrated with limited resources and for them, their primary goal was stability and safety for our finances. We, on the other hand, have the privilege of focusing outside of the stability bubble — we have more appetite for risk and for creating long-term wealth.”
Aja Dang: “For many of us, the idea of living in, and supporting a multigenerational household is a unique financial challenge.
It’s not just about supporting yourself and your family, but also supporting your parents as they retire, and maybe also your grandparents. And for my generation in particular, how do you support multiple generations while still dealing with student loan debt?
It’s important to remember the best way to support our family is by putting ourselves and our needs first so we can make sure we’re in a solid financial place to be able to support others.”
Tae Kim: “One of the biggest challenges Asian Americans face when it comes to money is financial literacy. Many of us grew up under first-generation immigrant parents who didn’t understand how the economy and financial market worked.
The next generation of Asian Americans enters the workforce never having discussed 401(k) contributions, insurance, or investing in general. So many of us fall prey to the financial marketing machine. Buying high fee-laden investments, risky bets, and unnecessary insurance because we think that is what we should do with our money. We must prioritize financial literacy from an early age to better prepare the next generation.”
How do finances show up typically in Asian American households, and what tips would you give on managing money with family or relationships?
Vivian Tu: “Depending on what ethnicity you and your family are, money conversations may or may not be completely normal.
For example, my family is Chinese, and my relatives LOVE to talk about money. How much was that flat-screen TV? How much did you pay for that vacation? How big of a discount did you get on those new boots? However, talking about money can be seen as impolite in many other cultures.
That said, I really do encourage young people to learn more about their family’s finances. Learning more about money early on is the easiest way to gain those skills firsthand, ahead of being an adult and navigating those experiences yourself.”
Chris Chung, The Everyday Millennial: “In the majority of Asian American households growing up, the husband earns a large share of the income working a corporate job while the wife either stays home with the kids or earns a part-time hourly wage.
However, in the last 10 years, I’ve seen a large shift as both spouses each focus on growing their respective careers and bringing in a relatively equal share of the income.
My biggest tip for managing money with your family or spouse is to be 100% transparent and focus on being a team! Even if you maintain separate bank accounts, you should be talking with your spouse about your financial goals and what you want to accomplish together.
I’ve seen family dynamics struggle due to money. I’d recommend keeping specific numbers private because the only people who need to know the specifics about your finances are you and your spouse — nobody else.”
Max Do, Max Miles Points: “In my experience, managing money doesn’t come up often in a typical Asian American household. You assume it’s being taken care of, and it doesn’t come up until there is a problem. Sometimes, it almost feels taboo to talk about. My tip would be to be open about it, talk about how much money you make, how you’re saving your money, and how you’re investing it.”
Aja Dang: “Do not ever gift or loan money to friends or family that you cannot afford to lose. If someone says they will pay you back, don’t believe them because chances are they won’t. Do not be afraid to say no to something you cannot or don’t want to do. Also, do not feel pressured to support a multigenerational household. I think many of us want to, but if you can’t afford it, don’t do it. Do not put yourself in a state of financial stress because it’s the ‘right’ thing to do.”
What advice would you give to Asian Americans who feel as though they’re not yet in the same financial situation as their peers?
Max Do: “My advice is to focus on your own financial journey and avoid comparing yourself to others. Setting your own goals and working towards them at your own pace is crucial. Sometimes, it can feel like there’s competition among parents to see whose son or daughter is the most successful or wealthy. This sense of pride is especially strong for immigrant parents who came to the U.S. with nothing. This competition can also create additional pressure.”
Simran Kaur: “One of the best — but perhaps crippling — parts of our culture involves celebrating educational, career and financial success. It’s so easy to fall into the trap of comparing who has more, who bought their home first or who got the big promotion.
We are so proud of those around us who have hit milestones early on, but that does not come without the unfair comparisons that we put on ourselves. It’s so important to step back and remind ourselves that we are only in competition with ourselves and that as long as we are getting better than our past selves, that is all that matters.”
Chris Chung: “There’s always going to be someone you know earning more money or more successful than you. Instead of comparing or worrying about it, put that energy towards improving yourself and what you can control.
In 2023, there’s never been more free resources available discussing entrepreneurship, investing, real estate, which valuable skills to learn and how to build financial freedom for your future. Use these resources to your advantage and spend the time to build financial literacy yourself instead of worrying about what your peers are doing.
I started my first job working for a bobblehead company earning $25,000 while my peers were earning close to $100,000. I quickly realized early on that instead of wasting my energy asking myself, ‘Why not me,’ I needed to put in the work to create a new reality for myself.”
Vivian Tu: “It’s OK! We don’t all start our financial journeys at the same place. Some people are born with major generational advantages and others face significantly more adversity. It’s called personal finance for a reason, and comparison truly is the thief of joy. Focus on making smart money decisions for yourself and prioritizing your well-being. Don’t let FOMO or someone else’s Instagram feed make you feel like you have a bad life.”
More about the influencers
Aja Dang, Mstrpln
Aja Dang is a content creator and founder of Mstrpln. After getting out of $200,000 debt, Dang built the Mstrpln budget planner using the layout she created for herself during her debt-free journey. Since launching, Mstrpln has helped thousands of people set and track their financial goals.
Chris Chung, The Everyday Millennial
Chris Chung is the creator of The Everyday Millennial, a platform that helps millennials master their finances. He aims to bring financial literacy to the forefront and empower millennials to achieve financial freedom. Chris has helped over 175 students get started investing and taking control of their financial futures.
Max Do, Max Miles Points
Max Do is a content creator who teaches his over 400,000 followers and subscribers how to maximize airline miles, hotel points, and credit card points on Instagram, YouTube and TikTok.
Simran Kaur, “Girls That Invest”
Simran Kaur is the creator of a popular investing podcast for women and the author of “Girls That Invest.” She aims to provide access to investing education for women and underrepresented groups. She has been featured in Forbes and Vogue.
Tae Kim, Financial Tortoise
Tae Kim founded Financial Tortoise, a YouTube channel focused on building wealth slowly. After paying off $105,000 in student loans, he found his passion for educating others about money. He is a graduate of UCLA, a former finance director and captain in the Army.
Vivian Tu, Your Rich BFF
Vivian Tu is a former Wall Street trader turned educator, public speaker, host and entrepreneur. She is the founder and CEO of Your Rich BFF, which aims to make personal finance advice accessible and digestible for nonexperts and members of marginalized communities. She’s also the host of the new podcast “Networth and Chill.”
Housing and transportation may be the top line items in a typical family budget, but the cost of meals and groceries can also be significant. In fact, food prices increased 8.5% between March 2022 and March 2023, according to the Bureau of Labor Statistics’ most recent Consumer Price index report. While all consumers are impacted by price hikes, families in particular may be feeling the pinch at checkout.
If you have a larger family, creating a budget can help keep you from overspending at the grocery store. But how much should you allocate for food each month? Keep reading to learn more about creating a grocery budget for a family of five.
Average Grocery Budget for American Family of Five
When coming up with your grocery budget, it helps to first understand how much you can expect to spend on food. The average household spends roughly $438 per month or $5,259 per year, on at-home food, according to the most recent statistics available from the Bureau of Labor Statistics.
But how much should you budget for groceries if you have a family of five? A good starting point is the USDA’s food plans, which include four spending levels: thrifty, low-cost, moderate-cost, and liberal. According to the latest food plan available, here’s what a family of five should plan to spend on groceries:
Spending level
Cost per month
Cost per year
Thrifty
$922
$11,064
Low-cost
$991
$11,892
Moderate-cost
$1,233
$14,796
Liberal
$1,488
$17,856
Source: USDA food plans
How Much to Budget for Groceries Per Person
How much a family of five end up budgeting for groceries depends on a number of factors, like how much the store charges, the type and amount of food purchased, and whether they use a grocery delivery service.
Want to figure out how much to allocate in your food budget for each family member? You can refer to the USDA food plans above for a general idea of monthly and yearly costs, and divide the amounts by the number of members of your family. You can also look at the last three to six months of your family’s grocery bills and calculate a monthly average. Divide that amount by the number of members of your family.
Once you see how much you’re actually spending per person each month, you can adjust your budget accordingly.
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How to Prioritize Your Grocery Spending
When you’re feeding a large family, you want to make the most of your grocery list. The best way to prioritize your food spending is to create a monthly budget and stick to it. Having a plan in place makes it easier to curb grocery store splurges.
If you’re new to budgeting, you may want to use the 50/30/20 rule. This framework calls for earmarking 50% of your monthly after-tax income on things you need (such as food, housing, and transportation), 30% on things you want (such as a new outfit or tickets to a concert), and 20% on savings and debt repayment.
Another helpful tool to consider is a budget planner app, which allows you to easily set spending and savings goals and monitor your progress.
How to Stay Within Your Grocery Budget
Staying on top of a grocery budget can be challenging, especially when you have a larger family. The following tips can help:
Don’t Shop When You’re Hungry
When your stomach is grumbling in the middle of the grocery store, chances are you’re more likely to give in to cravings. This may leave you with a cart full of impulse buys, which could add to your overall cost.
Make a Shopping List
Writing down everything you need before you start shopping is a good way to ensure you only pick up the items you need and are in your budget.
Embrace Meal Planning
Create a weekly menu ahead of time so that when you hit the store, you know exactly what ingredients to buy. If your finances allow, consider reserving a small chunk of the budget so that each family member can pick out a treat for that week.
Recommended: How to Create a Budget in 6 Steps
How to Budget for Restaurants and Dining Out
While eating at home can be more cost effective than dining out, many memories are made at restaurants. If your family is planning to have meals out, how much should you expect to spend?
The average American household spends $3,030 on dining out, according to the most recent data available from the Bureau of Labor Statistics. However, larger families should expect to spend more.
Tips for Reducing Your Grocery Budget
Looking to lower your grocery bill? Consider these simple strategies:
• Buy in bulk
• Shop at discount retailers
• Choose generic brands
• Meal prep for the week
• Shop sales
• Join rewards programs
• Use coupons
• Use a credit card that earns cash back rewards
Tips for Getting Help If You Can’t Afford to Buy Groceries
Families that are struggling to pay for food have several government resources they can turn to for help. Food stamps (also referred to as SNAP benefits), the WIC program, school meal programs, and food assistance programs are all worth looking into. Depending on the program, you may need to meet certain criteria, such as an income limit, in order to be eligible.
Examples of the Cost of Common Groceries
As anyone who has stepped foot in a grocery store lately can attest, food costs are going up. But just how much depends largely on where you live. Still, it can be helpful to understand national prices so you can prepare your food budget accordingly. Below is the national average of six common items, according to an NBC News analysis of NielsenIQ data.
Average Cost of Groceries in 2022
Orange juice (60 oz.)
$4.01
Chicken eggs (dozen)
$4.05
Chicken breast/lb
$3.90
Fresh ground beef/lb
$5.96
Bacon (16 oz.)
$5.39
Loaf of bread
$3.27
How to Stretch Your Grocery Budget
Stretching a grocery budget requires careful planning. A few places to start: planning meals for the week, taking advantage of weekly ads and local deals, and shopping at more affordable grocery stores. Savvy shoppers can even design meals around the discounts and coupons being offered at the more affordable grocery stores.
Another strategy is to buy in bulk where it makes sense. Purchasing larger amounts of staples like rice, flour, and paper products can provide a better bang for your grocery buck.
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The Takeaway
Food is a major expense for most Americans, but perhaps more so for larger families. Creating a budget can help keep costs in check. On average, a family of five spends anywhere from $922 to $1,488 a month on groceries, according to USDA monthly food plans. If you’re looking to curb your spending, consider meal planning, buying in bulk, and shopping at more affordable grocery stores. If you need help paying for groceries, government programs like SNAP benefits and WIC can provide support.
To make budgeting for groceries and other expenses easier, consider using a money tracker app. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
What is a realistic grocery budget for a family of five?
Depending on how much you have to spend on food, a realistic grocery budget for a family of five may range anywhere from $922 to $1,488 a month on groceries, according to USDA monthly food plans. To determine how much your family should spend each month, consider adding up the last three to six months of grocery bills and finding the monthly average.
How can a family of five save money on groceries?
There are steps a family of five can take to save on groceries, including meal planning, taking advantage of coupons and weekly deals, and making a shopping list ahead of time. Those strategies allow families to spend more mindfully and, ideally, lower their grocery bill.
What is a reasonable grocery budget?
The average American household spends $5,259 per year on groceries, according to the most recent statistics available from the Bureau of Labor Statistics.
Photo credit: iStock/seb_ra
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