As the latest season of the hit reality competition series “The Circle” hit our screens, we couldn’t help but notice that something looks a little bit different.
And no, we’re not talking about the new AI bot that has entered the chat (sorry, Max).
The reality show has a brand new building, a whole new series of colorful apartments, and a fresh filming location set on American soil — stepping away from the UK filming location where all international versions of the dating series have been filmed up until now.
Season 6 sees contenders take residence in a Midtown Atlanta apartment building, with each of their units meticulously designed by art director Karen Weber, a reality series vet who also worked on America’s Next Top Model.
And she took extra care in designing each apartment, as well as the communal spaces the contestants get to enjoy while filming the Netflix production.
So let’s take a closer look at the Atlanta building that now houses the popular series, the colorful The Circle apartments and the design principles that brought them to life, and how you too can book a stay here — though your apartment might look a tad different than those the contestants live in.
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The Circle building is now the Sonder Midtown South, in Atlanta
Unlike previous seasons and all other international versions of the series — which all filmed in Northern England, at the 206-unit Adelphi Wharf building in Salford, UK, right outside of Manchester — Season 6 takes place stateside in Atlanta, Georgia.
Offering a fresh setting for the drama to unfold, the Sonder Midtown South apartment building at 126 Renaissance Pkwy NE in Midtown Atlanta serves as the main filming location for the hit Netflix series.
Designing the colorful apartments
Art director Karen Weber led the charge in designing the vibrant new apartments, housed in the Sonder Midtown South building.
With communal spaces like a retro launderette and a rooftop courtyard, Weber aimed to create distinct yet cohesive living environments for the players, each measuring approximately 1,200 square feet.
And this was no easy feat, especially while trying to emulate the bold, colorful aesthetics the series is already known for.
Each apartment has its own theme and decor
From bold color palettes to whimsical themes inspired by Barbie and Wes Anderson, the transformed spaces offer a Pinterest-worthy aesthetic that’s sure to catch the eye of viewers.
The apartments, given names like Glamour Room and Artist Loft, were curated with furniture and decor sourced from vintage shops and salvage yards around Atlanta, lending them a bespoke feel.
For some spaces, art director Karen Weber aimed to create “really bright high energy,” while other rooms were meant to feel “more adult, laid-back, and [a] little more restful,” she shared on Netflix’s blog. After all, the players actually had to live in the spaces throughout filming, so comfort is key.
And while the budget was the same for each apartment in the new The Circle building, creating a variety of spaces and aesthetics is paramount to the show’s success.
“Giving producers that kind of a range [of types of spaces] lets them figure out who fits where,” Weber added.
Design inspiration for fans of the series
But in Weber’s eyes, the apartments aren’t just for the players who inhabit them.
She also wanted viewers watching along to imagine themselves in the living spaces and perhaps inspire them to transform their own — either by stenciling something on a wall or spray-painting fish scales on a bathroom cabinet.
“I try to do a couple of DIY projects in each space that could be done by someone at home,” she says.
Re-designing 10 more apartments for the next contestants
As if Weber didn’t have her work cut out for her, as soon as she was done setting up the apartments for Season 6, she had to do it all again in preparation for the already-announced Season 7. For the upcoming season, another 10 new apartments had to be designed from the ground up.
“It’s the sandcastle theory, because you build this beautiful thing and then you let it all just get washed away and it’s done,” she says. “The rooms have their moment and then you have to move on.”
You can stay at the Atlanta building where The Circle filmed
While fans won’t be able to book a stay in the exact apartments seen on-screen, they too can book a stay in the building featured on the show whenever visiting Atlanta.
The Sonder Midtown South offers sleek and modern accommodations with amenities like a fitness center, outdoor grill, and in-unit laundry. And its colorful, imaginative makeover for The Circle only adds to the building’s appeal.
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In real estate investing, the BRRRR strategy is a powerful tool for building wealth. Here’s a BRRRR case study on one of my rentals. You’ll see how this strategy can be applied, showcasing the potential for significant equity growth and cash flow generation.
Table of Contents
What is BRRRR?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a cyclical process where you:
Buy an undervalued property.
Rehab the property to increase its value.
Rent out the property to generate income.
Refinance the property to take cash out based on the increased value.
Repeat the process with the withdrawn cash to acquire more properties.
See my full BRRRR guide here: How to use the BRRRR Method to Buy Rentals With Less Money
You can also use my BRRRR calculator.
The Case Study
I’m a real estate investor with years of experience with the BRRRR strategy. I’ll show how I used it on a property I bought back in 2012. Here’s a breakdown of the journey:
Buying at a Discount: I purchased the property for $109,000, securing a good deal through a short sale.
Rehabilitation: Minor repairs and cosmetic upgrades were done for around $12,000.
Renting for Cash Flow: The property was rented out for $1,300 per month.
Cash-Out Refinance: Two years later, after property values appreciated, I refinanced the property at $143,500. This allowed me to recoup his initial investment and repairs, along with an additional $17,000.
The Results: Today, the property is estimated to be worth $415,000. I enjoy a positive cash flow even after factoring in property management and enjoy significant equity in the property.
Video of BRRRR Case Study
Key Takeaways
Buying below market value creates instant equity.
Refinancing can be a powerful tool to access capital for further investment.
BRRRR allows you to build wealth through both cash flow and equity appreciation.
Important Considerations
Not all properties are suitable for BRRRR. Careful analysis is crucial.
Market conditions can impact the success of the strategy.
Refinancing involves additional costs and considerations.
Conclusion
The BRRRR strategy, as demonstrated in this case study, can be a successful approach to real estate investing. By strategically acquiring properties, making improvements, and leveraging refinancing, investors can build wealth and achieve financial freedom.
Are you interested in learning more about the BRRRR strategy and how it can benefit you?
Mortgage rates kept climbing on the back of a string of market-moving news. Notably, Federal Reserve Chair Jerome Powell said last week at the Washington Forum that there will be no rate cuts anytime soon because of the strength of the U.S. economy.
As a result, HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.48% on Tuesday, up from 7.26% one week earlier. At the same time one year ago, the 30-year fixed rate averaged 6.54%. Meanwhile, the 15-year fixed rate averaged 6.72% on Tuesday, up from 6.66% one week earlier.
“I always believe that with higher rates, inventory should grow more; last week was the first week where I hit my target weekly inventory growth model that I set out for myself last year if rates got above 7.25%,” HousingWire lead analyst Logan Mohtashami said. “Last year, it never happened once, even with rates heading toward 8%, but this year, we have more sellers than last year. If rates go higher, it will impact sales, but I am hoping it doesn’t prevent more sellers coming into the marketplace”
Even after several weeks of mortgage rate increases, the housing market remains strong. For instance, the demand for new homes grew at an annualized sales rate of 8.8% from February to March. As of April 19, there were 543,000 single-family homes on the market, up 3% from the week prior and 31% above year-ago levels. There are 130,000 more homes on the market now compared to last year at this time.
“The available inventory of unsold homes on the market is building quickly due to the most recent mortgage rate jumps,” Mike Simonsen, founder and president of Altos Research, wrote on Monday.
One of the positive pieces of news about mortgage rates is that the spread between mortgage rates and the 10-year Treasury yield is narrowing, Mohtashami noted on Saturday.
The Personal Consumption Expenditures Price Index (PCE) for March will be released on Friday, providing valuable insights into the Fed’s next steps regarding benchmark interest rates.
New York City is a place of endless possibilities and iconic landmarks. It’s a city that resonates with and entices people from all over to call NYC home. From the towering apartment buildings in Manhattan to the sprawling greenery of Central Park, this city offers a unique mixture of history and modern-day charm.
New Yorkers are known for their resilience and spirit, evident in the city’s culture, sports fandom, and unparalleled style. Here, every street corner tells a story and every subway ride introduces a new character.
Let’s dive in a bit deeper and finally answer the question, what is New York City known for?
1. Wall St.
Wall St. is synonymous with the American financial industry. Home to the New York Stock Exchange and NASDAQ, this street represents power and influence in global finance. The mere mention of Wall St. evokes images of traders bustling about, stocks being bought and sold, and fancy suits with expensive watches everywhere you look. It’s not just a street; it’s the economic engine of the city and the country.
2. Cultural melting pot
New York City is a true cultural melting pot, where people from literally every corner of the globe converge and coexist. This amalgamation shapes every aspect of city life. Walking through neighborhoods like Chinatown, Little Italy, or Jackson Heights is akin to taking a global tour without the need for a passport.
3. The five boroughs
The five boroughs—Manhattan, Brooklyn, Queens, The Bronx, and Staten Island—each have their own distinct identity and charm. Manhattan boasts the skyline; Brooklyn offers arts and innovation; Queens is the king of diversity; The Bronx is the birthplace of hip-hop; Staten Island provides a slower pace with its green spaces and suburban feel. Together, they form a complex and comprehensive portrait of New York City life.
4. Broadway
Broadway is the pinnacle of American theater. It’s the heartbeat of New York City’s performing arts scene, attracting millions of visitors each year. From groundbreaking musicals with Hollywood stars to intense dramas that launch careers, Broadway shows are a vital part of the city, reflecting both the contemporary and the classic.
5. The Yankees
The New York Yankees are more than just a baseball team; they are an institution. With a legacy of 27 World Series championships, they embody the competitive spirit of the city. Yankees Stadium, a landmark in itself, draws crowds for games and concerts in the warmer months.
6. Stand-up comedy
New York City is a hub for stand-up comedy, with numerous clubs that have launched the careers of many acclaimed comedians. Places like the Comedy Cellar or Gotham Comedy Club are where performers cut their teeth and create their style. To put it simply, In NYC, laughter is serious business.
7. Central Park
Arguably the most famous public park in the world, New York City is known for Central Park, an oasis amidst the concrete jungle. This sprawling green space, designed by Frederick Law Olmsted and Calvert Vaux, offers a refuge to residents and tourists alike.
8. Dollar slices
The concept of dollar pizza slices captures the essence of New York City’s fast-paced and accessible food scene. These quick, cheap eats are available at countless pizzerias around the city, showcasing NYC’s ability to offer something for everyone. Whether you’re rushing to a meeting or wandering home after a night out, a dollar slice is never far away.
9. The Met
The Metropolitan Museum of Art, known as The Met, is one of the world’s largest and most esteemed cultural institutions. Located along the edge of Central Park, it houses over two million works of art spanning 5,000 years of history. The Met is not just a museum; it’s a gateway to the world, offering visitors a dizzying selection of artifacts, from ancient Egyptian sculptures to American contemporary paintings.
10. NYC Skyline
The New York City skyline is perhaps the most iconic urban vista in the world, instantly recognizable with its mix of historic architectural feats and sleek modern towers. From the art deco spire of the Empire State Building to the gleaming surfaces of the One World Trade Center, the skyline tells the story of a city that has continually reached toward the sky.
National mortgage rates moved higher for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans moved higher.
Some forecasters are rethinking the expectation that mortgage rates come down this year. Lenders price mortgages based on many variables, but overall, fixed mortgage rates follow the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy, inflation and Federal Reserve decisions.
“The issue of inflation remains unsettled,” says Ken Johnson of Florida State University. “This is putting upward pressure on mortgage rates through the yield on 10-year Treasurys.”
The Fed indicated it’d cut rates in 2024, but policymakers held off at its latest meeting, citing the need for more promising economic data. The Fed has been working to bring inflation back to its 2 percent target since 2022.
The Fed meets next on May 1 — the start of one of the busiest homebuying months.
Whether mortgage rates move up or down, though, it’s difficult to time the market. Often, the decision to buy a home comes down to what you need. Depending on your situation, it might make sense to take a higher rate now and refinance later. This way you can start building equity, rather than chancing that buying a home will become more affordable.
Rates accurate as of April 23, 2024.
These rates are marketplace averages based on the assumptions here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, April 23rd, 2024 at 7:30 a.m. ET.
Current 30 year mortgage rate moves upward, +0.17%
Today’s average 30-year fixed-mortgage rate is 7.30 percent, up 17 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.91 percent.
At the current average rate, you’ll pay principal and interest of $685.57 for every $100,000 you borrow. That’s an additional $11.51 per $100,000 compared to last week.
Most mortgage lenders defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers because it allows the borrower to scatter mortgage payments out over 30 years, keeping their monthly payment lower.
15-year mortgage rate trends upward, +0.12%
The average rate for the benchmark 15-year fixed mortgage is 6.76 percent, up 12 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $885 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 adjustable rate mortgage advances, +0.10%
The average rate on a 5/1 adjustable rate mortgage is 6.89 percent, up 10 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for those who expect to refinance or sell before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.89 percent would cost about $658 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Jumbo mortgage trends higher, +0.04%
The average jumbo mortgage rate is 7.44 percent, up 4 basis points over the last week. Last month on the 23rd, the average rate on a jumbo mortgage was lower at 7.02 percent.
At today’s average jumbo rate, you’ll pay $695.11 per month in principal and interest for every $100,000 you borrow. That’s up $2.73 from what it would have been last week.
Refinance rates
Current 30 year mortgage refinance rate rises, +0.20%
The average 30-year fixed-refinance rate is 7.31 percent, up 20 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower at 6.92 percent.
At the current average rate, you’ll pay $686.25 per month in principal and interest for every $100,000 you borrow. That’s an increase of $13.54 over what you would have paid last week.
Where are mortgage rates going?
If and when the Fed cuts interest rates depends on incoming economic data, such as the rate of inflation and the jobs market.
“While the majority of Fed members still expect three rate cuts this year, Atlanta Fed President Bostic is now predicting just one rate cut in the fourth quarter,” says Melissa Cohn of William Raveis Mortgage. “Not the news we want for the spring market.”
Keep in mind: The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate than the trend based on your own financial profile.
What current rates mean for your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
To help you uncover the best deal, get at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Despite the obvious appeal of side hustles — more money! — they’re not for everyone. If your side hustle makes you stress out, neglect relationships, or miss opportunities at your day job, then consider it a bad idea. Side hustles are only beneficial when they help you accomplish goals without sacrificing what matters most.
Side hustles are often promoted as a simple way to generate extra cash or fulfill your passions. However, the often-ignored price tag is physical and mental strain. Not to mention the time requirement and potential financial commitment necessary to get a gig going.
Read on to find out how to evaluate your options and goals before taking on a side hustle.
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What Is a Side Hustle?
A side hustle refers to a second job or source of income that people pursue outside their primary employment. The purpose may be to earn extra money, pursue a pet project, or develop skills in a different area.
A side hustle can take various forms, from freelance work or consulting to selling handmade crafts or driving for a rideshare service. Renting out property and offering tutoring services also qualify. The point is leveraging your time and skills to pad your budget or explore a wider field than your day job allows. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. A free budget app can give you the same insight into your budgeting and spending at a glance, without the extra effort.
Pros and Cons of a Side Hustle
Browse the pros and cons below, and make a mental note of how many of each apply to your situation. If one side of the scales is considerably heavier, your decision may be obvious.
Pros of a Side Hustle
Here’s a breakdown of the benefits of a side hustle:
• Develop Your Career: Side hustles can provide a valuable opportunity to develop skills, gain experience, and broaden your professional horizons. By taking on projects or roles outside your main job, you may acquire new competencies to help advance your career or get a promotion. Additionally, side hustles can demonstrate initiative, entrepreneurial spirit, and versatility to potential employers, enhancing your marketability and opening up new opportunities.
• Switch Up the Norm: A side hustle allows you to break away from the routine of your primary job. This variety can be refreshing and stimulating, helping to prevent boredom and burnout. Whether you’re pursuing a different passion, exploring a new industry, or experimenting with creative projects, having a side hustle can inject excitement and fulfillment into your life outside work.
• Build Your Network: Side hustles often involve interacting with different people and communities, which can expand your professional network. Whether you’re collaborating with clients, partners, or fellow freelancers, each connection presents an opportunity to exchange ideas, learn from others, and potentially uncover new career prospects. Building a diverse network through your side hustle can provide valuable support, mentorship, and referrals in your professional journey.
• Channel Creativity: Side hustles offer a platform for expressing your creativity, passions, and interests outside your primary job. Whether it’s writing, photography, crafting, or any other form of expression, a side hustle can bring more meaning and fulfillment than your 9-to-5. This outlet can serve as a source of inspiration, relaxation, and personal growth, enriching your life beyond the confines of your main occupation.
• Increase Income: One of the most practical benefits of a side hustle is the extra money. Whether saving for a major purchase, paying off debt, or simply seeking financial security, the income from your side hustle can provide greater financial flexibility and stability. Likewise, having multiple streams of income can be a buffer against economic uncertainty and provide a safety net in case of job loss or another hardship.
Cons of a Side Hustle
On the other hand, these are the potential drawbacks of a side hustle:
• Less Time to Relax: Side hustles require time and effort, eroding your leisure time. Working 60+ hour weeks can lead to fatigue and even burnout. When juggling your day job, side hustle, and personal commitments causes you to lose sleep, your quality of life can become unsustainably low.
• Distraction from Work: A side hustle can encroach on your attention and focus during work hours. Constantly thinking about your other gig, responding to email, or taking calls while at your main job can detract from your performance. If colleagues or supervisors perceive your divided attention, this can also strain your professional relationships and undermine your credibility.
• Managing the Stress of Two Jobs: Managing the demands of a side hustle on top of your primary job and personal responsibilities can significantly increase stress. Deadlines, client expectations, financial pressures, and the need to constantly switch between different roles and tasks can elevate anxiety. Chronic stress associated with balancing multiple commitments can affect your mental and physical health over time.
• Sustainable Prices Can Be Elusive: Setting prices or negotiating rates for your side hustle services can be challenging, especially if you’re just getting started or dealing with imposter syndrome. Striking the right balance between competitiveness and fair compensation can be tricky, and you may encounter situations where clients or customers undervalue your work. Plus, breaking into a competitive market may require setting prices so low that you work at a loss for the first few months or even years. As a result, your side hustle may ding your budget instead of adding to it.
💡 Quick Tip: An online money tracker makes monitoring your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.
When Does a Side Hustle Make Sense?
Several ingredients are key for a side hustle to make sense for your situation. First, it’s essential to have a clearly defined reason for pursuing a side hustle. For example, you may want to generate income, follow a creative impulse, or pave a path to a new career. This clarity of purpose will guide your efforts and motivate you throughout your side hustle journey.
Second thorough research is crucial to understanding the market, demand, competition, and potential challenges associated with your chosen side hustle. This is significant even if you don’t have financial aspirations for your other gig.
For example, if you’re interested in fitness, is your specific angle better suited for a blog or a YouTube channel? Will you create a social media presence to drive more traffic? What kind of value are you delivering to your audience?
In a different vein, if you want to become a rideshare driver, which company offers the best pay? Do you have a presentable vehicle that you’re willing to put miles on? Answering these kinds of questions will help you make informed decisions and set realistic expectations. Not doing your homework will likely bring a lack of results, monetary loss, and frustration.
Next, understand the time commitment your side hustle will require. For instance, a few hours of woodworking on the weekend is less demanding than taking a constant flow of orders on Etsy. If your schedule is already full to the brim from your primary job, family responsibilities, and personal pursuits, incorporating a side hustle can do more harm than good. Even if you work a side gig with your significant other, it’s not the same as spending quality time together.
Finally, your side hustle should fit into the larger picture of your goals and values. For instance, you might start a side hustle in order to build a $5,000 emergency fund. Or you could take a software engineering course in the evenings that will help you eventually switch careers. In any case, your side hustle should have specific benefits and point toward a defined objective. Otherwise, you’ll burn time without accomplishing much.
The Opportunity Cost of a Side Hustle
The “opportunity cost” of a side hustle depends upon the resources you invest. When you dedicate yourself to anything, you lose opportunities to engage in leisure activities, spend time with family and friends, and take vacations. In essence, the opportunity cost of a side hustle equals the value you place on other aspects of life that matter most.
Also ask yourself what is the financial cost of your side hustle? You might have to invest money to purchase materials or pay for marketing. You might also give up overtime at your primary job. That’s cash that could go into savings, investments, or paying off debt.
Likewise, your time could be going into skill development for your day job, leading to promotions or raises. Plus, your employer might sponsor specific types of professional development, resulting in free training that moves your career forward and increases your salary.
Ultimately, the opportunity cost of a side hustle varies depending on individual circumstances, goals, and priorities. It’s essential to carefully consider these factors and assess how the benefits of the side hustle compare to the time and money.
Examples of Side Hustles
While there are unusual ways to make money, side hustles are typically more accessible. Here are some side hustles that match with a range of backgrounds and skill sets:
• Freelancing: Offer services such as writing, graphic design, programming, bookkeeping, and more. You’ll take projects on a contract basis with multiple clients.
• Dog Walking: Providing exercise and companionship for dogs by taking them on walks on a regular or as-needed basis.
• Blogging: Creating and maintaining a consistent feed of valuable written content on a topic you love or have expertise in. Find out how much it costs to start and run a blog.
• Non-Medical Senior Care: Assisting elderly individuals with daily tasks (shopping, bathing, housework, etc.) and providing companionship to support their wellbeing.
• Babysitting: The tried-and-true income-generator for teenagers and adults alike. You’ll care for children in the evenings and on weekends when parents are busy or need a break.
• Personal Assistant: Providing administrative support and assistance to individuals or businesses. You’ll manage schedules, run errands, and handle correspondence. You can also be a virtual assistant and provide numerous essential services (bookkeeping, arranging travel, etc.), therefore creating a side hustle from home.
• Handyman: Offering services to repair, maintain, and improve residences. You can specialize in one or more areas: plumbing, electrical work, carpentry, or general home tasks.
• Crafting: Creating handmade goods and artwork, such as jewelry, clothing, and home décor, to sell online or at craft fairs.
• Cooking/Baking: Crafting you can eat! Get to work in the kitchen to make treats, desserts, or meal kits for sale.
• Private Tutor: Providing personalized academic instruction to students in a particular subject or skill, often on a one-on-one basis.
• Self-Publishing: Writing and publishing books or other written works independently, without the involvement of traditional publishing companies. Self-publishing is inexpensive because your work will be accessible as an ebook.
• Teaching Online Courses: Creating and delivering educational courses or tutorials on a specific topic via online platforms is another side hustle from home.
• Product Tester: Testing and reviewing products or services for companies or brands, often providing feedback and insights based on personal experience.
• E-Commerce: Selling products or services online through a website or online marketplace, which may involve sourcing or creating products, managing inventory, and handling customer inquiries and orders.
When Is a Side Hustle Not Worth It?
A side hustle may not be worthwhile because of the toll on your physical, mental, and financial wellbeing. Here are more specific ways that a side hustle can negatively impact your life:
• Burnout: Working an 8-hour job and dedicating 2 to 4 additional hours per day to your side hustle leaves little room for anything else. The demands of a side hustle can result in excessive stress, fatigue, and burnout.
• Missed Career Advancements: Devoting significant time and energy to a side hustle may detract from opportunities for advancement in your primary job. They can also keep you from visualizing a sustaining career. So if you’re in a job you don’t like, a side hustle can act as a bandage instead of a cure. It’s advisable to focus on switching vocations instead of supplementing your income through another unsatisfying side job.
• Unhealthy Lifestyle Habits: A demanding side hustle may lead to poor eating choices due to lack of time for meal prep, insufficient exercise, and disrupted sleep. Over time, these habits damage physical health and overall quality of life.
• Strained Relationships: Spending excessive time on a side hustle can strain relationships with family, friends, and romantic partners. Missing significant events or quality time with loved ones due to work commitments can lead to feelings of resentment and isolation.
• Financial Costs: Some side hustles require upfront investments of time and money, for purchasing inventory or equipment, marketing expenses, or training courses. If the return on investment does not justify these costs, the side hustle may not be financially sustainable in the long run.
• Not-So-Passive Income: Many side hustles require active participation and ongoing effort to generate income, which can limit scalability and long-term earning potential. Without the ability to create passive income streams, you’ll constantly trade time for money without achieving financial freedom.
• Neglecting Personal Growth: A side hustle that consumes all available time and energy may leave little room for hobbies or other interests. Over time, this can lead to stagnation and dissatisfaction with your lifestyle.
Side Hustle Tips
A side hustle can quickly get out of hand or detract from your life if you’re not careful. Here’s how to create a practical side hustle that serves your needs:
• Start Small: When beginning a side hustle, starting with manageable tasks or projects that don’t require a significant investment of time or resources is wise. Starting small allows you to test the waters, gain experience, and assess the viability of your chosen side hustle without taking on too much risk. As you gain confidence and experience, you can gradually expand and scale your side hustle over time.
• Play to Your Strengths: Identify your special skills, interests, and areas of expertise, and leverage them in your side hustle. By focusing on activities that align with your strengths, you’re more likely to enjoy the work, excel at it, and differentiate yourself from competitors. This approach also allows you to maximize your earning potential by offering high-value services or products that cater to a specific niche or market. Remember, this doesn’t mean you must stick to your current skill set. Your interests and abilities can also lead you to pick up new skills.
• Maintain Your Performance at Work: Balancing a side hustle with a full-time job means prioritizing high performance and professionalism in your primary job while pursuing your side hustle. To that end, it’s recommended to set boundaries for the time you dedicate to your side hustle and to manage your schedule efficiently. By maintaining your performance at work, you can preserve your job security and opportunities for advancement.
• Aim at a Goal Instead of a Job: Instead of treating your side hustle as just another job, set out to achieve specific goals or milestones that align with your long-term aspirations. Whether your goal is to generate additional income, pursue a passion project, or transition to full-time entrepreneurship, having a clear vision and purpose for your side hustle will keep you motivated and focused on what truly matters to you. By focusing on goals rather than simply exchanging time for money, you can create a more fulfilling and meaningful side hustle.
The Takeaway
Side hustles can be a bad idea when they damage your quality of life. While picking up a side gig can create more income, this result must be weighed against other priorities, including advancement in your day job, time dedicated to relationships, and alternatives that slowly but surely create passive income.
Asking yourself whether a side hustle is a good move might not be the most relevant question. Instead, you can ask yourself if a second job makes sense after developing a clear vision of the future.
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
Are side hustles risky?
Side hustles can be risky because of the opportunity cost of picking up extra work. Specifically, a side hustle can drain time and financial resources, add unmanageable stress to your life, and lead to worse quality of life because of the sacrifices required to work a second job. As a result, it’s essential to evaluate your circumstances and identify your goals before starting a side hustle.
Are side hustles a waste of time?
Side hustles can be an excellent way to generate more income, develop yourself professionally, or transition to a different career. However, they can also be a waste of time if you don’t set goals and create a realistic plan when starting. So a carefully planned side hustle that fits into the larger picture of your life can provide massive benefits, while picking up more work to simply stay busy can lead to missed opportunities in your professional and personal life.
Is starting a side hustle really worth it?
Starting a side hustle can be worth it for additional income, pursuing passions, or expanding your skill set. However, it requires careful consideration of the potential drawbacks, such as time constraints, increased stress, and the risk of hindering career advancement. Ultimately, the value of a side hustle depends on your aligning it with personal goals, managing resources effectively, and maintaining a healthy work-life balance.
Photo credit: iStock/JLco – Julia Amaral
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Frankly, however, the biggest surprise at the moment might be that sales volumes have held up pretty well over the past few weeks even as mortgage rates have climbed into the mid-7s. We’ve been talking about sales growth over the past year. More home sales are happening, but we can also see — once adjusted for seasonal patterns — that sales should be much higher now if a real market recovery were underway.
It feels like the latest macro trends will keep mortgage rates in the mid-7% range for the near term. And we’d expect that to slow home sales further. That’s why Altos Research tracks every home for sale in the country each week. The data so often defies expectations or changes very quickly. Let’s dig further into the details of the U.S. housing market for the week of April 22.
Housing inventory
When we look at the active inventory of unsold homes on the market, we can definitely see the impact of higher mortgage rates in the past month. There are 543,000 single-family homes on the market now. That’s a 3% jump from last week and 31% above year-ago levels.
The available inventory of unsold homes on the market is building quickly due to the most recent mortgage rate jumps. There are 130,000 more homes on the market now than last year at this time.
Normally, inventory is climbing at this point in the second quarter. We’re rapidly approaching the peak of the market in terms of seller listings, and as inventory builds, the sales rate will peak by the end of June. So, it’s normal that inventory is growing now.
But when you add a spike in mortgage rates that makes homebuying less affordable, that leads to fewer buyers and inventory grows. Altos data currently shows an inflection point in April. With the most recent mortgage rate jump, inventory growth has also accelerated.
This is what is meant when we say that higher rates leads to higher inventory. We are on the path back to the formerly normal levels of unsold homes on the market. A couple more years with elevated rates will get us there.
But it’s also noteworthy to point out that falling rates reverse this trend. Lower rates mean that people snap up the existing inventory.
New listings
Growing inventory is not just about slowing demand. We are also consistently measuring more sellers coming back into the market. At 69,000 new listings unsold today, that’s 3% more than a week ago and 14% more than this time last year.
In fact, there are more new sellers this week than in any week of 2023. This selling season still has two more months of growth potential. Industry professionals would love to see 70,000 or 80,000 new listings per week in May. More sellers means more sales can happen. There’s a limit, of course, as we could eventually reach an imbalance if too many sellers flood the market and too few buyers follow suit. But we’re not close to that yet.
In the years before the COVID-19 pandemic, the latter half of April would normally see 80,000 to 100,000 new listings in a week. Now we’re at 69,000. Obviously, elevated mortgage rates slows both buyer and seller activity. There are a lot of people who will never sell their house with a 3% mortgage.
There’s unlikely to be a flood of sellers in the next few years, but we can see steady growth. Each year with higher rates will create more inventory growth and have fewer people locked into low rates. That growth is good for the market.
The available inventory of homes to buy and the new ones being listed for sale each week are what consumers care about. If I’m buying a house, do I have any houses to buy? For homebuyers, the selection they have now is the most they’ve had in years.
Real estate professionals, on the other hand, have to care about transaction volume. How many home sales are happening? Because there were so few sellers last year, the number of sales was quite constricted. That’s starting to change. The 14% increase in new listings over the past year is a really good sign that sales can grow.
Pending sales
When we look at the sales rate, we can indeed see that home sales are growing. There were 71,000 new contracts started for single-family homes this week. That’s 3% more than last week and 7% more than a year ago.
There are still 8% fewer sales happening each week than in 2022. At that time two years ago, there were frantic last-minute deals getting done as mortgage rates were rising quickly. So, even though rates were up back then, sales were still strong.
But the hectic pandemic-era pace of sales had slowed, so inventory was building quickly. In 2022, the new sales rates really cratered after the Fourth of July holiday.
There are now 385,000 single-family homes under contract. That’s 5% growth compared to this time last year but is still 14% less than two years ago. New sales started this week saw 7% growth while the total number of homes under contract saw 5% growth.
It takes 30 to 40 days for the typical sale to close. The homes under contract now will mostly close in April and May. The 5% annualized growth rate is less than we’d hoped for at the start of the year, but it’s creeping up even with higher mortgage rates.
Altos Research uses direct measurement rather than seasonally adjusting its numbers. There are 385,000 single-family homes in escrow to complete a sale as of today. If you were to approximate a seasonal adjustment on this number, you would see a yearly sales pace of about 4.4 million units for April 2024. That pace is up from April 2023, but it is still running slower than the typical April. The seasonal pace is where one can observe the slowdown due higher mortgage rates.
The takeaway from the weekly new pending sales data is that even though sales continue to outpace last year, that growth has definitely slowed.
Home prices
The median price of single-family homes under contract is now $398,000. That jumped by 2.4% jump this week and is, in fact, a new all-time-high, surpassing the sale prices of two years ago.
These spring weeks are indeed the time when home prices climb, so it’s not too surprising that this trend is occurring now. But we’ve also been keeping a close eye on home prices in the face of these rising mortgage rates.
The prices of the homes going under contract are 6% more expensive than one year ago. Last year at this time, home prices were lower than in April 2022. But we’re now back at all-time highs. The previous peak was $395,000 two years ago.
One thing of interest in the price data is how slow this climb has been. Compared to Jan. 1, 2024, prices are up 6.6%. In most years, the increase is closer to 10% by this time in April. So, as a leading indicator for how the year ends up, this price signal is much softer than usual.
We can also see this in asking prices. The median price for all homes currently on the market is $449,000. That’s up a fraction from last week and only 1% above last year at this time.
Asking prices can be thought of as a leading indicator for future sales prices. Homes that are on the market now will get offers in May, close in June and will be reported on in July. So, the future signals for home prices aren’t falling because of higher mortgage rates, but it certainly looks like price appreciation has slowed.
Price reductions
Another strong leading indicator for future home sale prices is the share of homes on the market with price reductions. If more sellers have to cut their prices now, that’s a real signal for sales that will happen in the future.
Surprisingly, given the mortgage rate changes, there is no jump yet in the share of price reductions. We’ve been watching this stat closely.
This week, 32% of the homes on the market have taken a price cut. That’s actually down a fraction from last week, given a relatively strong set of new listings that hit the market and the fact that home sales are at their highest point of the year. Fresh inventory doesn’t take a price cut until after it sits for a while without an offer.
There are 3% more homes with price reductions today than a year ago. Last year at this time, price cuts were still decreasing with very tight volumes of new listings. There are more homes on the market now with price cuts than in any April on record. That shows weakness in prices, but it’s not a super high number and it’s not skyrocketing, so that implies we won’t see prices tanking anytime soon.
The takeaway here is that with the 30-year fixed mortgage at 7.4%, there is still just enough sales volume to keep home prices from dropping like they did in late 2022. The current market is not changing nearly that quickly. We’ll continue to watch data on price cuts. As mortgage rates make homes less affordable, fewer offers will be made and some sellers will cut their prices. That could accelerate in the next few weeks.
The Windy City, Chicago, IL, has historic neighborhoods with stunning architecture and lakefront views from skyscrapers like the Willis Tower, to famous museums like the Art Institute of Chicago and the Field Museum. With countless landmarks, it’s no surprise that Chicago has neighborhoods that offer a different taste of the city.
If you’re looking to rent an apartment in Chicago, the average rent for a one-bedroom apartment is $1,860. And if you want to live close to Chicago’s popular spots, you can expect to pay more than that. ApartmentGuide has compiled a list of the most expensive neighborhoods to help you find the perfect place to rent.
14 Expensive Neighborhoods in Chicago, IL
From the upscale Fulton River District to the trendy West Loop, there are plenty of neighborhoods that offer stunning skyline views and access to famous attractions. Below, you’ll find the expensive Chicago neighborhoods that made our list.
1. Fulton River District 2. West Loop 3. Near West Side 4. Prairie Shores 5. Streeterville 6. Near South Side 7. Pilsen 8. West Side 9. West Town 10. Downtown 11. Little Italy 12. The Loop 13. Fulton Market 14. River West
Let’s jump in and see what these neighborhoods have to offer.
1. Fulton River District
Average 1-bedroom rent: $3,524 Apartments for rent in Fulton River District
Fulton River District is the most expensive neighborhood in Chicago, as the average rent for a one-bedroom unit is $3,524. There are plenty of reasons why this neighborhood draws residents. Fulton River District is one of Chicago’s most walkable neighborhoods, as you access restaurants and shops. It’s also close to the River North, where you’ll find attractions like The Merchandise Market and The Richard H. Driehaus Museum, making it a prime location to explore the city. The area also has views of the cityscape, making apartment views stunning. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore, showcasing Chicago’s food scene. Make sure to check out Carnivale, Gibsons Italia, Piccolo Sogno, or one of the other hidden gems in the neighborhood.
Learn more about the Fulton River District neighborhood in Chicago.
2. West Loop
Average 1-bedroom rent: $3,127 Apartments for rent in West Loop
West Loop is a bustling area that’s west of Downtown Chicago. This beautiful neighborhood is home to lots of attractions like the WNDR Museum and Union Park. West Loop is well-known for its green spaces like Mary Bartelme Park and the charming shops and cafes along Randolph Street. The average rent for one-bedroom apartments is $3,127, which is about $1,300 above the city’s average, making it a pricier neighborhood. However, West Loop’s charm and amenities may be worth it.
Learn more about the West Loop neighborhood in Chicago.
3. Near West Side
Average 1-bedroom rent: $2,907 Apartments for rent in Near West Side
With an average one-bedroom rent of $2,907, Near West Side is the third most expensive neighborhood in Chicago. This neighborhood has plenty of historic homes in styles like Victorian and Italianate, as well as properties with picturesque views of the cityscape. You can find Skinner Park in the area if you’re looking for a relaxing afternoon. Near West Side is also near I-290, making it a convenient location for commuters. However, if you want to offset rent costs, you can use public transit, such as the Metro or bus lines.
4. Prairie Shores
Average 1-bedroom rent: $2,736 Apartments for rent in Prairie Shores
Prairie Shores takes the fourth spot on our list of most expensive neighborhoods in Chicago. This neighborhood is known for its location near Lake Michigan and the 31st Street Beach. The area also has historic buildings like the Singer Pavilion Building and parks like Lake Meadows Park. Be sure to enjoy the Lakefront Trail, an 18.5 mile trail which offers views of Lake Michigan.
5. Streeterville
Average 1-bedroom rent: $2,567 Apartments for rent in Streeterville
Just about 2 miles from Downtown, Streeterville is a stellar neighborhood if you want to live close to Downtown. While more expensive, the perks of living in Streeterville may help offset the costs. For example, you can live in Chicago without a car as Streeterville is near bus routes. You can also walk to attractions like Navy Pier, the Chicago Riverwalk, Magnificent Mile, and the Wrigley Building. The views in Streeterville are also gorgeous, as you can see the cityscape and the Centennial Wheel. If you’re looking to be in the heart of Chicago, then be sure to consider Streeterville.
Learn more about the Streeterville neighborhood in Chicago.
6. Near South Side
Average 1-bedroom rent: $2,412 Apartments for rent in Near South Side
Next up is Near South Side, the sixth most expensive neighborhood in Chicago. Near South Side is full of history and charm with tree-lined streets, historic buildings, and museums. You can find everything from the Field Museum, the Shedd Aquarium, and Soldier Field to the Glessner House, Giordano’s, and Northerly Island Park – all without leaving the neighborhood. It’s no wonder the rents are above Chicago’s average.
7. Pilsen
Average 1-bedroom rent: $2,400 Apartments for rent in Pilsen
Located west of Downtown, Pilsen is the next neighborhood on our list. It has a friendly atmosphere and community feel, with plenty of local cafes and restaurants along 18th Street, such as La Vaca Margarita Bar and Cantón Regio. You can also visit some of Pilsen’s green spaces, like Dvorak Park, or see a show at the iconic Thalia Hall. Since Pilsen is located near the University of Illinois at Chicago, its artsy and cultural lifestyle is one of the many reasons people live here.
Learn more about the Pilsen neighborhood in Chicago.
8. West Side
Average 1-bedroom rent: $2,375 Apartments for rent in West Side
West Side takes the eighth spot on our list of most expensive neighborhoods in Chicago. The average rent for a one-bedroom unit is roughly $500 more than the city’s average. West Side is a great option to consider if you’re looking to have a variety of smaller neighborhoods to choose from since the area is home to Near West Side and West Loop. You can also find some affordable neighborhoods in Chicago in this area. It’s about 3 miles from Downtown, which means you’ll have easy access to the city center without living in the bustling atmosphere. There are also plenty of attractions in West Side, like the National Museum of Mexican Art, Douglass (Anna & Frederick) Park, and United Center.
9. West Town
Average 1-bedroom rent: $2,340 Apartments for rent in West Town
A well-loved Chicago neighborhood, West Town is the next area. West Town is home to the Wicker Park and Ukrainian Village neighborhoods, meaning there’s plenty to do throughout the week. You’ll find countless historic buildings in West Town, so explore the area’s charm. West Town also has landmarks like Humboldt (Alexander Von) Park, the National Museum of Puerto Rican Arts & Culture, the Polish Museum of America, and The Salt Shed. If you need to commute to work, there are lots of options, as the Blue Line is nearby. And if you’re catching the metro, make sure to explore Milwaukee Avenue, where you’ll find local restaurants and cafes.
Learn more about the West Town neighborhood in Chicago.
10. Downtown
Average 1-bedroom rent: $2,326 Apartments for rent in Downtown
The tenth most expensive neighborhood in Chicago is Downtown. The area is home to countless landmarks like the Willis Tower, the Chicago Theatre, the Art Institute of Chicago, and Prudential Plaza, so there’s always something to explore. You can find parks like Millennium Park and Maggie Daley Park, which are perfect for enjoying a sunny day in Chicago. Downtown also hosts the Taste of Chicago event and Lollapalooza each year, providing residents with lots of opportunities to enjoy their neighborhood.
Learn more about the Downtown neighborhood in Chicago.
11. Little Italy
Average 1-bedroom rent: $2,320 Apartments for rent in Little Italy
Number 11 on our list of most expensive neighborhoods in Chicago is Little Italy. This historic neighborhood is located west of Downtown Chicago and is a fantastic area if you’re looking for a neighborhood with a charming main street. Along Taylor Street, you can find plenty of Italian delis, restaurants, and bakeries. Little Italy is also close to parks like Arrigo Park and Sheridan Park, providing residents with lots of spaces to enjoy a nice Chicago day. The neighborhood is also home to the University of Illinois at Chicago, contributing to its popularity.
12. The Loop
Average 1-bedroom rent: $2,295 Apartments for rent in The Loop
Taking the 12th spot is The Loop, part of the larger Downtown Chicago area. The average rent for a one-bedroom apartment is $2,295, compared to the city’s average of $1,950. This neighborhood is home to Millennium Park, where you’ll find the iconic Cloud Gate, Crown Fountain, and the Jay Pritzker Pavilion. The Loop also has plenty of historic buildings to check out, such as the Marshall Field and Company Building, the James M. Nederlander Theatre, and the Chicago Cultural Center. The convenience of these activities might be worth moving to the neighborhood.
Learn more about The Loop neighborhood in Chicago.
13. Fulton Market
Average 1-bedroom rent: $2,250 Apartments for rent in Fulton Market
Fulton Market is another popular neighborhood in Chicago, well-known for its vibrant atmosphere and renovated industrial feel. This area has an average one-bedroom rent of $2,250, meaning it’s closer in price to the city’s average. If you plan to rent in Fulton Market, make sure to check out the Randolph Street Market and the Fulton Market District to immerse yourself in the neighborhood’s vibrant atmosphere. You can find countless innovative restaurants serving various cuisines, from barbeque and Chinese to Spanish and Italian.
14. River West
Average 1-bedroom rent: $2,150
Apartments for rent in River West
Claiming the last spot on our list of most expensive neighborhoods in Chicago is River West. The River West neighborhood is about $300 more expensive than Chicago’s average, so it’s not as pricey as the other neighborhoods on our list. River West is a quirky industrial area with plenty of renovated units. You can find a lot of local restaurants in the area like, Jerk. Jamaican Barbecue and Aglaïa Coffee & Tea Co. The Blue Line runs through the area, making transit easy.
Methodology: Whether a neighborhood has an average 1-bedroom rent price over the city’s average. Average rental data from Rent.com in March 2024.
When it comes to borrowing money, building up your emergency fund, and performing financial transactions, you have more options than ever before. You can open an account with a traditional bank, set up an online bank account, or choose a neighborhood credit union. Best of all, you can have accounts with multiple institutions, maximizing convenience.
As you’re reviewing your options, you may see some claims that credit unions are better than banks. There’s no one-size-fits-all financial institution that works for every consumer on the planet, but there are some reasons you might want to choose a credit union over a brick-and-mortar or online bank.
Why is a credit union better than a bank for some people? Get the answer to this question, plus an overview of how credit unions work.
What Is a Credit Union?
A credit union is a nonprofit organization that provides a variety of financial services. Like banks, credit unions are heavily regulated financial institutions. They typically offer the following products and services:
Checking accounts. A checking account is a type of deposit account. Once you deposit money, you can spend it by writing checks, using your debit card, or making online transfers.
Savings accounts. Savings accounts make it easier to put away money for a rainy day. If you have an active account, you can deposit money and earn interest on it.
Certificates of deposit. A certificate of deposit, commonly known as a CD, is a special type of savings account. When you open a CD, you agree to keep your money in it for a certain period of time. In exchange, the bank pays a higher interest rate than you can get with a standard savings account.
Retirement accounts. Many credit unions offer IRAs and other retirement accounts, making it easier to save for the future.
Auto loans. If you don’t have enough cash on hand to buy a car, you can take out an auto loan from your credit union. An auto loan is a type of installment loan, which means you borrow the money and pay it back in equal monthly installments. The lender earns money by charging interest on the loan.
Mortgages. Most people don’t have hundreds of thousands of dollars in cash to buy a home. If you belong to a credit union, you may be able to take out a home loan. Some loans have fixed interest rates, while others have adjustable rates, giving you more flexibility.
Personal loans. If you need a loan to consolidate your debts, do expensive home repairs, pay for a wedding, or cover other major expenses, you may be able to take out a personal loan from a credit union. With a personal loan, you borrow a certain amount of money and pay it back in monthly installments.
Credit cards. Many credit unions also offer credit cards, which give you access to revolving credit. You use each card to make purchases and then pay back what you borrowed over time. If you don’t pay your full balance each month, you must make a minimum payment to keep your account in good standing.
Banks vs. Credit Unions: Major Differences
One of the biggest differences between banks and credit unions is that credit unions are nonprofit organizations owned by their members. In contrast, a bank is a for-profit institution owned by a group of shareholders.
Nonprofit and for-profit organizations have different purposes. Due to their nonprofit status, credit unions have cooperative structures. Board members and employees are concerned with the financial well-being of all members. Credit unions also have strong community roots.
The main purpose of a for-profit bank is to make money for shareholders. When there’s a profit motive in place, employees and board members tend to make decisions based on what’s best for shareholders instead of what’s best for customers or communities. For example, employees at Wells Fargo opened thousands of fraudulent accounts to boost the bank’s bottom line, hurting customers in the process.
Membership Requirements
Another major difference between banks and credit unions is that credit unions have strict membership requirements. Banks want to make as much money as possible, so they tend to offer accounts to anyone who meets some basic criteria. For example, a bank may open a checking account for any adult who doesn’t have a history of writing bad checks.
Credit unions are member-owned, so they have additional requirements. For example, some credit unions require their members to work for the federal government. Others are designed for members of the military or people who live in a specific geographic area. If you don’t meet the membership requirements, you won’t be able to open an account.
Banks and credit unions are both subject to federal regulation, but they’re not regulated by the same agencies. In the United States, the Office of the Comptroller of the Currency charters all banks and monitors their activities. The National Credit Union Administration oversees credit unions.
Both agencies work to ensure consumers receive fair treatment. Federal regulations also protect bank and credit union customers against deceptive business practices, giving you extra peace of mind.
Why Is a Credit Union Better Than a Bank for Some Consumers?
So, why is a credit union better than a bank in some cases? One of the main benefits is that credit unions operate for the good of their members. If you’re invested in the success of your community, joining a credit union can help you contribute to local development.
Credit unions also tend to offer slightly higher interest rates on certain savings and investment products. As of December 2023, credit unions were paying 2.93% on a five-year CD with a $10,000 deposit. In contrast, traditional banks were only paying 2.02%.
In some cases, a credit union also charges lower interest rates on credit cards and loans. The lower your rate, the less you pay in interest over time. At the end of 2023, credit unions charged an average of 12.72% on credit cards, while banks averaged 15%.
If you join a credit union, you may even save money on fees. Traditional banks need to maximize their profits, so they often charge monthly maintenance fees and fees for accessing certain services. You may also have to meet minimum daily balance requirements to avoid additional service charges.
Many credit unions charge no monthly service fees and have no minimum balance requirements. If you have to make a deposit to open your account, the minimum deposit may be just a few dollars. Credit unions may also offer free checks, free mobile banking, and other free services to their members.
Credit Unions vs. Banks: The Bottom Line
Banks and credit unions both have their place in the financial world. If you’re looking for personalized service, lower fees, and better interest rates, consider joining a credit union. You can always set up a traditional bank account if you want to access additional services.
To learn more about financial matters, check out Credit.com’s ultimate guide to personal finance.
Inside: Learn how to save money quickly, even on a tight budget. Get practical tips for how to save money fast on a low income. Simple savings ideas to implement today.
Saving money on a tight budget can feel like a high mountain to conquer, especially when you’re trying to do it fast.
Many people earn just enough to cover their essential costs, leaving little room for savings. However, with the right strategies, saving money fast on a low income doesn’t have to be a pipe dream.
This is something I started when we decided to pay off debt. Then, we choose to continue saving that money and investing it.
By understanding the flow of your money – where it’s coming from and where it’s going – you can make informed decisions that maximize your savings potential.
By prioritizing your spending and forecasting future expenses, budgeting can reduce the stress of financial uncertainty and introduce a sense of control and confidence in your money management skills. Thus, leading to you starting to save.
What is the best way to save money on a low income?
On a low income, the best way to save money is to thoroughly understand your expenses and prioritize your needs over wants.
In addition, by planning and tracking your finances meticulously, you can identify where each penny is going. Thus, allowing you to analyze your expenses. Once you have a clear picture of these, start looking for areas to trim down.
Remember, saving money is about being proactive and consistent. These small but steady steps can build up over time to help you save money fast, even on a low income.
How to Save Money on A Fast Income
1. Start with Clear Priorities
Before you can decide where to cut costs or how to allocate your funds, you need to know what’s most important to you.
What is your why for doing what you need to do? Is it building an emergency fund, saving for a down payment on a home, or maybe preparing for retirement?
Whatever your goals, outline them clearly. This is how you will save money.
2. Budgeting effectively to manage finances
To budget effectively on a low income, it all starts with a cold, hard look at your numbers.
Begin by listing all sources of income – that’s your foundation.
From each paycheck or income stream, subtract your non-negotiable expenses such as rent, utilities, transportation, and debt payments. What you have left is your discretionary income.
Then, it’s time to categorize and prioritize. Group your expenses into necessities and nice-to-haves. If your essentials consume most of your income, you’ll need to scrutinize the nice-to-haves list.
Every dollar saved from unnecessary splurges is a dollar that can be put towards your savings.
Use budgeting apps or tools to keep a real-time record of your spending. These can help you stay disciplined and provide a visual reminder of your progress.
3. Track and Slash Unnecessary Expenses
Now, you must meticulously and ruthlessly cut out the non-essentials.
Identify patterns and spot the recurrent, unnecessary expenses that are draining your funds.
Do you subscribe to multiple streaming platforms?
Are you forking out cash for a gym membership you barely use?
Are those daily specialty coffee drinks adding up?
It’s time to slash these expenditures.
Cutting these expenses is like giving yourself a raise.
4. Lower Housing Expenses Without Compromising Comfort
Living in smaller, more affordable housing to decrease rent or mortgage might be exactly what you need.
Opting for a smaller, more affordable space is a practical approach to significantly lower your rent or mortgage payments. When you choose to live in a compact setting, not only do you reduce the square footage costs, but often, utility and maintenance expenses decrease as well due to the reduced size of the living area.
If you are renting, try to negotiate your rent or lease terms with your landlord – they might be willing to offer a discount to keep a reliable tenant, or you may be able to agree on lower rent for a longer lease commitment.
If you’re a homeowner, explore the possibility of refinancing your mortgage to take advantage of lower interest rates. Alternatively, consider renting out a room or a portion of your living space, as the additional income can offset your mortgage or maintenance costs.
5. Save Money on Utilities with Simple Home Adjustments
Saving money on utilities might sound challenging, but you can often achieve substantial savings with a few strategic home adjustments. Let’s explore some cost-effective strategies and modifications you can make to your living space that could help reduce your bills.
Energy Efficient Appliances: Swapping out older appliances for Energy Star-rated ones leads to significant reductions in electricity use and water consumption.
Smart Thermostats: Installing a smart thermostat allows you to programmatically control your heating and cooling based on your schedule and preferences, potentially saving you a bundle on your energy bills.
LED Lighting: Switch to LED bulbs, which are more energy-efficient than traditional incandescent ones and have a longer lifespan, saving you on replacement costs as well as your electric bill.
Insulation Upgrades: Proper insulation keeps your home warm in the winter and cool in the summer, reducing the need for excessive heating or air conditioning.
Water-Saving Fixtures: Low-flow showerheads and faucet aerators reduce water usage, preserving this precious resource and lowering your water bill.
Not only do these simple home adjustments lead to savings on your utility bills, but they also contribute to a more environmentally friendly lifestyle.
6. Cooking at home instead of eating out
Cooking at home instead of dining out is an excellent way to save money, especially on a low income. When you eat at a restaurant, you’re not just paying for the food; you’re also covering the cost of service, ambiance, and the establishment’s overhead.
Plan a balance between meal prepped home-cooked meals and the occasional dinner out to keep your budget in check while still enjoying life’s little pleasures. Here are some frugal meals to get you started.
Remember, you don’t have to eliminate eating out entirely.
7. Canceling unused subscriptions and memberships
Stop draining money on services you don’t actively use. It’s surprisingly easy to forget about these auto-renewing expenses, so taking the time to audit your subscriptions can reveal opportunities for savings.
Recently, we tracked over $100 a month in my mother-in-law’s unused subscriptions and membership!
As such, it’s important to periodically evaluate your subscriptions and memberships to ensure they are still serving your interests and goals. If not, give yourself permission to cancel and save that money for something that offers tangible benefits in return.
8. Buying quality items that last longer
Investing in quality items that last longer is a strategic way to save money over time. While the initial cost may be higher, durable products can prevent the cycle of frequent replacements, ultimately contributing to long-term savings and less waste.
Remember, not every purchase necessitates the highest quality option. Examine which items you frequently use and can benefit from in the long run. For instance, driving a Toyota or buying higher quality shoes.
Once you’ve identified these, invest in quality for those and enjoy the satisfaction of a purchase that lasts.
9. Optimize Grocery Shopping
To optimize grocery shopping and manage your food budget effectively, start by thoroughly checking your current pantry supplies and making a precise shopping list to deter impulse purchases.
Utilize coupons and enroll in local store loyalty programs for exclusive discounts.
Embrace meal planning to avoid unnecessary spending.
Consider incorporating meatless meals, as this can contribute to consistent savings over time due to the typically higher cost of meat compared to vegetables and other plant-based options.
Plan meals around these cheap foods when you are broke.
By shopping smartly, you have the power to drastically lower your monthly food bill. Just remember, the key is preparation and discipline.
10. Repairing items instead of replacing them
Repairing items instead of replacing them can be a significant money-saving tactic, especially when budgets are tight. It’s often more cost-effective to fix a piece of furniture, mend a garment, or troubleshoot an appliance than it is to buy new one.
Consider the condition and value of each item before deciding to repair it. If the cost of repair approaches the price of a new item, or if it’s beyond your skill set, researching community resources or seeking professional help may be a wise choice.
11. Practicing the 30-day rule for non-essential purchases
Putting the brakes on impulsive buying can significantly boost your savings, and practicing the 30-day rule is a tried-and-true method to control those urges.
Before you make any non-essential purchase, wait 30 days.
If after a month you still feel the purchase is necessary or meaningful, then consider buying it.
Remember that the goal isn’t to deny yourself enjoyment but to ensure that each purchase is considered and valued. This conscious approach can lead to more satisfaction with the items you do choose to buy and a healthier bank balance.
12. Skip the Car Loan
Opting out of a car loan and finding alternative modes of transportation, such as cycling, walking, or using public transportation, can lead to significant financial savings.
Without a car payment, individuals can redirect the funds that would have gone towards monthly installments, insurance, and maintenance into their savings account.
This strategy can be particularly impactful for those with a goal in mind or working with a low income, as every dollar saved moves them closer to financial stability. Furthermore, the elimination of auto loan interest charges and potential debt can provide a more secure financial footing and peace of mind.
13. Using public transportation or carpooling to reduce fuel costs
Utilizing public transportation or carpooling can be significant in reducing fuel costs, particularly when you’re committed to saving money on a low income. These alternatives to solo driving not only save on fuel but also on parking fees, and wear and tear on your vehicle.
Another option is embracing car-sharing services, especially if you find that you don’t require a car on a daily basis. Services like Turo and Getaround offer the flexibility of having a car when you need one without the constant financial responsibility associated with ownership.
Remember, it’s all about what suits your lifestyle and frequency of need. By assessing how often you need a vehicle and comparing it with the total costs of ownership, car-sharing could be an excellent way to save money.
14. Selling unused or unwanted items for extra cash
Selling unused or unwanted items is a fantastic way to declutter your space and earn extra cash. You might be surprised how much money you can make by letting go of things you no longer use or need. From clothes you’ve outgrown to homeware that’s gathering dust, each item sold can inch you closer to your savings goal.
Take advantage of this opportunity; a thorough home audit could reveal a treasure trove of sellable items right under your nose. Not only does this increase your income, but it also helps you consider future purchases more carefully.
15. Taking advantage of free entertainment and community events
Leveraging free entertainment and community events is a delightfully frugal way to enjoy yourself without breaking the bank. From concerts and exhibitions to workshops and meet-ups, there’s often a wealth of activities that won’t cost you a penny.
In fact, here at Money Bliss, I have the most popular list of things to do with no money.
With a little creativity and resourcefulness, you can uncover a variety of enjoyable and inexpensive things to do.
16. Automating savings to ensure consistent contributions
Automating your savings is a hassle-free way to ensure you consistently contribute to your financial goals.
By setting up an automatic transfer from your checking account to a savings account, you’re essentially paying your future self first.
This ‘set and forget’ approach helps grow your wealth with minimal effort.
17. Negotiating bills and asking for better rates
Many service providers are open to negotiating prices if it means retaining a customer. Whether it’s your cable package, insurance, or even a credit card interest rate, it’s worth having the conversation.
Remember, the worst they can say is no. But often, companies will offer helpful options when they realize you are considering alternatives due to cost concerns.
One phone call could save you $1000 a year – just like when I decreased my cable bill!
18. Evaluating insurance policies for potential savings
When evaluating insurance policies, it’s critical to regularly assess your coverage needs and shop around for the best rates. Comparing policies from different providers annually can reveal opportunities for lowering premiums or finding more suitable coverage.
Utilize online tools and independent insurance agents to ensure a comprehensive review of available options.
Remember to inquire about bundling policies, as this can often lead to significant savings while consolidating your insurance needs effectively.
19. Meal Planning and Prep: Strategies to Reduce Food Waste
By allocating some time each week to plan your meals, you can ensure that you only buy what you need, thereby minimizing waste and cost.
Learning to meal plan starts with looking at a calendar and a local sales flyer to find the low cost deals.
By creating a weekly plan and incorporating budget-friendly recipes, you can not only eat healthier but also avoid the costlier option of dining out.
20. Forgo single use items
By choosing reusable items over single-use ones, you cut down on waste and habitual spending on disposables. This is also known as frugal green.
For instance, investing in a reusable water bottle, rather than buying single use water bottles.
By integrating sustainable products into your life, you also promote a culture of conservation and mindfulness, inspiring others to make eco-friendly choices.
21. Shopping for groceries with a list to avoid impulse buys
This is key! Especially when shopping with kids or a significant other!
Shopping for groceries with a list is a golden rule to avoid impulse buys, which can quickly derail your budget. By planning your purchases beforehand, you stick to the essentials and resist the temptation of sale items that aren’t on your list or don’t fit your meal plan.
Bonus Tip: Remember to always shop on a full stomach – hitting the grocery store hungry is a surefire way to end up with impulse purchases that aren’t on your list!
22. Buying generic brands instead of name brands
Opting for generic brands rather than name brands is a straightforward and effective way to save money on everything from groceries to over-the-counter medications. These products are often of similar quality and effectiveness but come at a significantly lower cost.
By making the switch to generics, especially for regularly used items, the aggregate savings can be substantial over time.
23. Making bulk purchases for commonly used items to save on cost-per-unit
When you buy in larger quantities, the cost per unit typically decreases, leading to savings that add up over time. Bulk buying works best for non-perishable goods or products you use consistently.
Make a point of buying non-perishable items or products with a long shelf life in bulk to avoid waste and ensure that you truly save money with each bulk purchase.
Just make sure you are going to use it!
24. Cutting costs on personal care by DIY methods
DIY methods for personal care are not just a trend – they’re a practical and often healthier alternative to store-bought products. By creating your own beauty and personal care items, you can significantly trim costs and take control of what goes on and into your body.
Even if you’re not the crafty type, consider starting small with something like a DIY sugar scrub or homemade toothpaste. This is something I did over ten years ago. You might discover a new hobby that enhances both your well-being and your budget.
25. Regular maintenance of vehicles and appliances to prevent costly repairs
Keeping on top of maintenance schedules helps prevent major breakdowns that can lead to expensive repairs down the line.
By making regular maintenance a non-negotiable part of your routine, you protect your investments and save yourself from future financial headaches.
I keep a list in my digital to do list, so I never lose track.
26. Shopping at thrift stores, garage sales, or second-hand websites
Shopping at thrift stores, garage sales, or second-hand websites is an excellent way to acquire items at a fraction of the retail cost. Not only are you being financially savvy, but you’re also participating in the circular economy, reducing waste, and often supporting charitable causes.
Shopping second-hand first is not just about saving money—it’s a lifestyle choice. With patience and persistence, it’s amazing what quality items you can find without impacting your wallet heavily.
27. Learning basic sewing to repair clothes
Mastering the basics of sewing to mend your clothes is a skill that pays off in multiple ways. You save money by extending the life of your garments, reducing waste, and developing a practical capability that can come in handy in various situations.
Honestly, sewing a piece of clothes is a very simple thing. Something that must be learned by the younger generations.
Consider setting aside some time to learn sewing basics via online tutorials, community classes, or even from a friend or family member—it’s a practical step toward financial savings and sustainable living.
28. Utilizing coupons and discounts for shopping
Using coupons and discounts strategically can lead to significant savings on your shopping bills. With a little planning and some savvy shopping techniques, you can ensure you never pay full price for essentials and other purchases.
Remember to only use coupons for items you were already planning to purchase; otherwise, you’re not saving money, you’re just spending less on something extra.
29. Consolidating debt to reduce interest rates
Debt consolidation can be a strategic financial move to lower your overall interest rates and simplify your monthly payments. By combining your debts into one loan with a lower interest rate, you can streamline your bills and potentially save significant amounts of money over time.
Make sure to shop around for the best debt consolidation options and read the fine print. The goal is to find a consolidation plan that truly puts you on a faster track to being debt-free without any hidden costs.
30. Tackle High-Interest Debts First to Free Up More Cash
Addressing high-interest debts is paramount in optimizing your financial strategy. Such debts, often from credit cards or payday loans, can spiral out of control if not managed promptly due to their compound interest rates, which can quickly exceed the original amounts borrowed.
This is known as the debt avalanche.
By zeroing in on high-cost debts, you ensure your income is spent more effectively and not wasted on steep interest fees, accelerating your path to financial freedom.
31. Choose the Right High-Yield Savings Account for Your Emergency Fund
Selecting the right high-yield savings account for your emergency fund is an essential move for growing your savings. High-yield accounts offer interest rates significantly higher than standard accounts, ensuring your emergency fund doesn’t stagnate and keeps pace with inflation as much as possible.
This is one of the bank accounts you need.
32. Implement The Envelope System
The Envelope System is a budgeting method that involves physically dividing your cash into envelopes for different spending categories.
Utilizing the cash envelope system promotes disciplined spending by providing a tangible limit on various expense categories, ensuring you stay within your pre-determined budget and facilitating more intentional money management.
This method also offers immediate visual feedback on spending patterns, which can lead to better financial habits and incremental savings as any leftover cash from each envelope can be added directly to a savings fund, making the act of saving more rewarding and motivating.
33. Using cash -back envelopes to track spending
The use of cash-back envelopes takes the traditional envelope budgeting system a step further by rewarding yourself with savings.
Whenever you spend less than the allocated amount in a budget category, you place the cash difference into a “cash-back” envelope, which can be used for saving or investing.
Adopting the cash-back envelope strategy can provide a rewarding twist to budgeting, making it a fun challenge to spend less and save more.
Boost Your Income: Creative Side Hustles and Opportunities
Boosting your income can provide substantial financial relief, particularly when you’ve maximized your ability to cut costs and still find your expenses stretching your budget thin.
Generating extra income, be it through a side hustle or achieving a raise enhances your ability to save and invest.
With additional streams of revenue, you gain more financial flexibility to achieve goals like paying off debt faster, saving for a significant purchase, or building an emergency fund.
Finding a side hustle or part-time job for additional income
Exploring a side hustle or part-time job is a proven way to supplement your income. In today’s gig economy, there are numerous opportunities for flexible work that can be customized to fit your skills and schedule.
A side hustle can not only pad your wallet but also provide an outlet for creativity and passion, possibly even offering a new career trajectory down the line.
Explore Gig Work and Passive Income Streams
Exploring gig work and passive income streams can accelerate your savings efforts, especially when your regular income isn’t enough to reach your financial goals. These alternative income ideas often provide the flexibility to work on your terms and build up earnings over time.
These revenue channels provide a proactive approach to increasing your disposable income. Researching and choosing the best options for your skills and financial situation can help you build a sound extra income strategy.
Take Advantage of Bank Bonuses and Credit Card Bonuses
Banks often offer attractive incentives to new customers, and high-interest savings accounts can grow your deposits at a faster rate than traditional accounts. The same is true for credit card issuers offering big bonuses.
Taking time to research the best offers and account terms can net you a nice bonus and put your money to work earning more money.
Learn How to Invest Your Money
Learning how to invest your money is paramount to building wealth over time. While it can seem intimidating at first, understanding the basics of investing can enable you to take advantage of compounding interest and market growth to increase your savings exponentially.
Start small, stay disciplined, and continually educate yourself as you grow your investment portfolio. Over time, your investments can become a significant source of wealth and financial security.
Learn how to invest in stocks for beginners.
FAQs: Navigating the Path to Low-Income Savings Success
Saving money when your income barely covers your fixed expenses requires a strategic approach. Begin by scrutinizing your budget to cut any non-essential costs.
Look for ways to reduce your fixed monthly expenses, like negotiating bills or refinancing loans.
Every small change can contribute to your savings, so focus on making incremental adjustments that together can enhance your financial situation.
Even when funds are tight, saving money is possible by making small but impactful changes.
Prioritize reviewing your expenses and identifying areas to cut back, such as non-essential subscriptions or eating out.
Round up loose change or small amounts from your daily transactions into savings.
Seek free entertainment options and consider generating additional income through side hustles or selling items you no longer need.
Each penny saved is a step towards your financial cushion.
Setting Realistic Savings Goals and Celebrating Milestones
Setting realistic savings goals is a key to financial success, particularly when managing a low income.
Determine what you can feasibly save without overstretching your budget. Whether it’s $5 or $50 per week, every bit helps.
Celebrating your achievements, no matter how small, can inspire continued discipline and dedication towards your financial objectives.
Being realistic and flexible with your budget will help you manage your finances more efficiently, ensuring that you set aside money for future growth, even when funds are tight.
This is a great step towards habits of financially stable people!
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