Raising a child could be one of the most rewarding experiences you’ll ever know, from watching your little one grow, seeing their interests take shape, and sharing all kinds of experiences with them, from baby’s first trip to the beach to high school graduation.
But there are practical matters to consider as well when a baby arrives, including paying for your child’s care. Those expenses start coming at you quickly after your little one is born. Daycare, for instance, can be an urgent expense. Currently, the average weekly cost of daycare is around $216, which is just over 17% of the median national household income.
Making ends meet can be a challenge for many families. Perhaps your budget was running smoothly but now you have to accommodate this expense. Or maybe you are wondering how you can move ahead with saving for a house when you’ll have less money to stash into savings. Read on to take a closer look at the kinds of daycare available and wise strategies for making ends meet.
Table of Contents
Types of Daycare
Yes, there’s a considerable cost to raising a child, and daycare is part of that. It can allow you to continue to work or attend to other priorities and ensure your little one is well cared for.
That said, there are a number of different types of daycare, but one of the most important distinctions is the difference between home-based care and formal daycare programs.
Home-based Daycare
Home-based, or informal, care is typically cheaper than formal daycare options, but there can be some drawbacks so it’s important to thoroughly review your options.
Each state determines their own regulations for home-based daycares. Most require providers to meet a certain level of training in order to provide care. Before you select a home-based daycare, you can check the requirements and regulations on sites like this one at Childcare.gov or visit your state’s website. You can likely find the information you are seeking via the Office of Children and Family Services.
It’s likely that safety will be one of your top concerns. Check that childcare providers are fully licensed and credentialed. Since many of the home-based providers are run by a sole proprietor, you may get less oversight than at a formal facility. That is, the operator may be so small that it’s not required to be licensed.
Licensing, however, can be a very important factor. It ensures such things as:
• Criminal background checks for the staff
• Training in such matters as CPR, safe sleep habits for children who are young enough to be napping at daycare, and first aid
• Proper sanitation
• Emergency and safety preparations.
Ask about the care providers’ background and qualifications. It’s more likely that those working at formal daycare centers (more on those below) will have specialized training. For instance, the work could be a side job for a teacher.
If you do decide to go with home-based daycare, make sure to check the provider’s references carefully, even if they have the appropriate licenses. You can also talk to them about the schedule for children in their care and how they will work to stimulate your child’s learning so that they’re ready for preschool. Many parents or prospective parents may ask to visit and observe how the daycare operates.
Formal Daycare
When it comes to formal childcare programs, there are also a lot of different options. Some employers offer childcare programs on site; others are Montessori schools or affiliated with other educational institutions. There may be some that are operated as franchises in your area.
Their approaches will probably vary as well: Some formal daycares aim to provide a cozy, relaxed atmosphere, while others focus on early childhood education and skill-building.
It may be wise to tour a few different options, just to get a fuller picture of how your child will spend their day. You’ll want to see what the premises and caregivers are like and understand the flow of the day.
Often, the more additional services that a daycare provider offers, the more it will cost. For instance, if you are looking for a bilingual daycare, it will probably cost more than one in which just English is spoken, as the provider has to spend more time and energy hiring its staff. Also, the more personalized the care (as in, the lower the child-to-caregiver ratio), the more expensive it may be. 💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.
Paying for Daycare
When you start a family or expand it, the expenses can come at you in a flurry: doctor’s appointments, food, clothing, furniture, strollers, and so forth. That alone is enough to stretch your budget to the max. Add daycare to the mix, and your income can feel the pressure.
Here, some steps to help you afford childcare.
Retool Your Budget: The first thing you can do is cut back on other areas of your budget in order to free up money to put towards daycare costs. You might be able to lower your food costs, say, or have staycations for the next few years.
If you don’t have a budget or aren’t happy with how yours is working, consider the different budgeting methods available, and experiment to find one that’s the right fit.
You might also look into apps to help you monitor spending. Your financial institution, whether a traditional or online bank, may have tools to help you do this.
Save in a Dependent Care Account: If your employer provides you with a Flexible Spending Account (FSA), then you can put up to $5,000 in your account tax-free that can be used for daycare. Beware of over-contributing, however; anything you don’t use by the end of the year will be forfeited.
Check on State Money: Each state has a child care assistance program designed to help low-income parents pay for care for dependents under 13. This program is funded by the federal government. You might see if you qualify.
Use the Child Care Tax Credit: While it won’t help you pay for daycare upfront, you can get a refund on some of your daycare costs by applying for the Child Care Tax Credit. If you itemize your taxes, you can get a tax credit by including up to $3,000 in daycare expenses per year per child or $6,000 per family.
Look into a Loan: If all else fails and you can’t find the money to pay for daycare, you may consider borrowing a personal loan rather than putting your daycare expenses on a credit card. You’ll likely enjoy lower interest rates with a personal loan.
Recommended: Guide to Paying for Child Care While in School
The Takeaway
Finding the right childcare for your family is a personal choice. The main options are home-based or formal daycare. Regardless, you’ll have to balance your child’s needs with your budget and financial plan. There are options such as budgeting, taking tax credits, getting government assistance, or taking out a loan.
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If you’re contemplating joining a gym, the cost of membership will likely play a huge role in your decision. To make sure you spend your money wisely, pay close attention to the gym’s offerings and think carefully about whether you even need a membership to accomplish your fitness goals.
Here’s what to know before signing up for a gym, plus ways you might be able to save on membership.
How much does a gym membership cost?
Gym memberships cost between $10 and $100 a month generally, with even some well-known names on the lower end of that range. But rates can get much higher, especially at luxury fitness clubs.
Determining the true price you’ll pay for a membership can be tricky because many gyms obscure the details. For example, some clubs require a year’s commitment with payment upfront or will tack on a sizable fee.
Here are some of the baseline membership costs we’ve seen advertised at popular gym chains:
Planet Fitness: Starts at $10 per month plus taxes and fees.
24 Hour Fitness: Starts at about $10 a month plus tax.
Crunch Fitness: Starts at $9.95 per month.
Gold’s Gym: Starts at about $30 a month.
Costs can vary greatly depending on factors like the gym’s location, membership tiers and whether you choose to pay monthly or annually. Read the fine print on a gym’s website or ask a membership representative to disclose full pricing details.
What to consider before joining a gym
The price tag is important, but it’s just one of many possible things worth basing your decision on. Here’s what else to take into account as you shop around for a gym.
Your budget
A gym’s membership cost should be considered in context. Add up the other monthly expenses you’ll need to manage, such as groceries and utility bills, to see how much room you have in your budget. This can help you learn whether you’ll have enough money for a basic or top-tier membership, or if you should hold off on signing up for the time being.
If a membership isn’t in the budget right now, consider setting money aside in a separate savings account every month until you reach your target.
The gym’s location
Convenience is key. You’ll probably feel more motivated to visit a gym that’s close to your home, work or school than one in a distant neighborhood. Explore the options in areas you already frequent.
Think about whether a chain or a standalone gym makes more sense for you. Some gyms restrict membership to one specific spot while others allow you to use it at other locations in the network. You might pursue a flexible membership if you’d like access to your gym when traveling or the option to work out at sites near both home and work, for example.
The quality of the gym
Evaluate the facilities. Does the gym have the right type of equipment for the workouts you plan to do? Is there enough equipment to accommodate a rush of gym-goers during peak hours? Are the facilities clean and well-maintained or do they seem rundown?
Pay attention to what else the gym has to offer. Maybe it serves as a larger fitness center with classes and a tennis court. Ask yourself if amenities like a sauna, swimming pool and child care services are must-haves, nice-to-haves or unnecessary.
The gym’s hours
Unless you have a flexible schedule, a gym’s operating hours are going to be a crucial part of your decision. If you can only manage late nights or early mornings, you’ll need a fitness club that’s open at those times. It’s also wise to find out whether the full range of services is available during all hours.
Alternative ways to exercise
Think about if it’s even necessary to join a gym at all. There are many free or low-cost ways to work out, such as jump roping or following along with Pilates videos on YouTube.
If you plan to use only the treadmill at the gym, you could save money by going for a daily run instead. Purchasing your own equipment often costs less over the long term too.
Alternatives won’t always make sense, though. For example, you may not have space for barbells or a stationary bike in your home. Creating a home gym can also be expensive upfront.
Your motivation
How likely are you to go to the gym if you join? Think about your reasons for wanting a membership, plus how difficult it will be to physically get yourself to the gym.
If you have a demanding job or home life, maybe you won’t realistically spend enough time at the gym to make getting a membership worth it.
On the other hand, having a dedicated place to work out surrounded by other people exercising could be exactly the motivation you need.
Trial periods
Many gyms offer free trial periods or one-day passes. Testing out a facility can help you figure out if it’s a good fit before you make a financial commitment. Take advantage of free trials or guest passes at the gyms you’re interested in, if available.
Questions to ask before signing up for a gym membership
You’ve read through the list above and decided that you do in fact want to join a gym. Make sure you fully understand what you’re signing up for first. Getting answers to these questions is a good starting point:
How much would I have to pay upfront to join the gym?
How much does a membership cost on a per-month or per-year basis, including taxes and fees?
What services and amenities are included in the membership? Personal trainers could be one example.
Am I required to sign a contract?
How can I cancel the membership?
How to save money on a gym membership
Before you enroll, look for ways to get a good deal.
Get a referral
Have a friend or relative who’s affiliated with the gym you’re eyeing? Ask them if there’s a referral offer. You could get a deal such as a lower fee, gift card or free week’s worth of membership. The person referring you might receive similar benefits as a bonus.
Piggyback on someone else’s membership
Certain gym memberships include guest privileges, and some plans are designed for family and friends to share. See if you can tag along for free or split the cost with someone.
Use employee benefits
Many companies offer a gym stipend or corporate discount. If you’re employed, ask about any fitness perks that might be available to you. If your company doesn’t provide a discount directly, it may offer a health insurance plan that covers some fitness costs.
Look for offers
Some gyms lower membership costs at certain times of the year, such as Black Friday or New Year’s. Past promotions we’ve seen include waived enrollment fees and two years for the price of one.
Another potential source of savings: your credit card. The right rewards card can help you earn points or get cash back on your membership purchase. Check out some of the best credit cards with fitness perks or see if you can get an offer through your current card.
Ask about special discounts
Some gyms offer reduced membership rates to certain groups such as students, older people or military members. Ask around to find out if you qualify for any discounts.
Are you downsizing, moving or doing a major decor change in your home but don’t know what to do with your old furniture? Well, you’re in luck because many local nonprofit organizations make moving easy by offering free furniture donation pick up.
Donating furniture to your favorite charities is a chance to get rid of extra furniture and household items for free while giving back to your community. Here is how to get started in the process.
Where to donate furniture
When looking for furniture donation pickup, there can be so many options it’s hard to know where to start. Thankfully, we’ve got you covered with our detailed list summarizing nonprofit organizations, who your donation will help, items they accept and how to schedule your pickup.
The best part is that every organization in our guide is completely free of charge for their furniture removal services and your donations go to a great cause.
1. Salvation Army
When people start thinking about donating furniture, The Salvation Army is usually one of the first places to come to mind. The Salvation Army is an international organization that operates in over 7,000 U.S. towns and cities and assists 23 million Americans annually.
Their services help provide disaster aid, support the LGBTQ+ community, fight food insecurity, combat addiction, assist those living in poverty and more. With the number of people Salvation Army helps each year, you can feel confident that you are doing good by donating to this organization.
Who your donation helps: Your items are either brought directly to those in need or sold at one of their Salvation Army stores. The proceeds from their stores are used to fund their Adult Rehabilitation Centers that provide housing, food, counseling, community and employment for individuals suffering from drug and alcohol dependency.
Items they accept: The Salvation Army will accept furniture, vehicles, clothing, household items, electronics, mattresses, books, exercise equipment and more.
How to schedule a pick-up: You can schedule an appointment for furniture pickup at The Salvation Army website or call 1-800-SA-TRUCK. Salvation Army pick-up hours can vary depending on your location, but they are typically 8 a.m. to 4 p.m. They make the transition even easier by allowing you to leave items outside your home for them to pick up without you even needing to be home.
2. Goodwill
Goodwill is an organization that supports communities through job training and employment services. They also provide support services, language training, education assistance, access to transportation and child care to help people in their communities achieve success.
In 2020, Goodwill served nearly 22 million individuals worldwide and provided career support to 126,000 people. Items brought to one of Goodwill’s stores are sold at a discounted price and the money raised goes to their various programs and initiatives.
Who your donation helps: Donation funds go to their job training or community-based programs. Some of their community-based programs include classes for people with disabilities, senior resources and helping convicts reclaim their lives after prison.
Items they accept: Goodwill accepts furniture, toys, electronics, clothing, media items, electronics, vehicles, exercise equipment, dishware and tools. Something to note is that Goodwill will accept boats, cars, campers and RVs even if they aren’t in working condition.
How to schedule a pick-up: Goodwill stores provide a donation center to give easy drop-off access for donations you’re able to bring in yourself. Most stores also offer a free pick-up service for larger furniture items, making it perfect for those who are downsizing. You can schedule your free Goodwill pickup online on their website locator, but keep in mind that store hours will vary based on their location.
3. Habitat for Humanity
Habitat for Humanity is a global nonprofit that provides safe and affordable housing to families in need. Their initiative also assists older adults to improve their homes, puts efforts towards neighborhood revitalization projects, provides shelter during natural disasters and teaches classes focused on financial education. This organization has been in operation since 1976 and works in all 50 U.S. states as well as 70 countries.
Who your donation helps: Habitat for Humanity sells donated furniture, building supplies and appliances at their resale store called ReStores. Proceeds from sales go to home restoring and building projects for families in need of affordable housing.
Items they accept: Habitat for Humanity will accept furniture, building materials, appliances, vehicles and farm equipment.
How to schedule a pick-up: To schedule a free furniture donation pick up with Habitat for Humanity, visit their website and enter your ZIP code to see which stores are near you. Next, you can contact your closest store directly to schedule your appointment.
4. Green Drop
GreenDrop is a program on the East Coast that raises funds for popular charities by picking up used furniture, clothes and appliances to sell at thrift stores. Their proceeds go back to charities that help those in need. Some of the charities they support include the American Red Cross, Military Order of the Purple Heart and the National Federation of the Blind.
Who your donation helps: In 2018, GreenDrop raised $3.1 million for the charitable organizations listed above.
Items they accept: GreenDrop accepts various items, including furniture under 50 pounds, clothing, household items, electronics, tools and toys.
How to schedule a pick-up: Start by packing up all of your belongings in plastic boxes or bins. Next, decide if you want to make an in-person donation or if you can schedule a furniture pick-up online. After they receive a donation, they’ll provide you with a tax receipt.
5. The Arc
The Arc is the largest organization devoted to helping individuals with developmental and intellectual disabilities. It provides a wide variety of services, supports and advocacy for people with disabilities and their families. The organization has over 700 chapters and one of their key sources of fundraising comes from their thrift stores, which they stock with donated goods.
Who your donation helps: Their services vary based on each chapter and the unique needs of their community. Once your donation sells, it goes towards public policy advocacy, vocational programs, residential assistance, education services, financial planning and recreational activities for people with disabilities.
Items they accept: The Arc accepts furniture, clothing, electronics, toys, vehicles, books, decorations, kitchen items and more, depending on the chapter.
How to schedule a pick-up: You can also schedule via phone by calling The Arc at 1-800-283-2721. Another option is to head to their website to find your local chapter and schedule your pick-up.
6. AMVETS
AMVETS is an organization that represents the interests of 20 million veterans across the United States. This group helps veterans obtain their entitled benefits. They also work to improve the quality of life for veterans, their families and the communities where they live through leadership, advocacy and services.
Who your donation helps: AMVETS supports U.S. veterans, those who have been honorably discharged and active duty servicemen and women. They will sell your furniture in one of their thrift stores to raise money for their cause.
Items they accept: AMVETS accepts small furniture, clothing, toys, bedding, games, bikes, electronics, lamps, curtains, exercise equipment and kitchenware. AMVET requires donations to be 5-years old or less but is also open to accepting other items that are not on their list.
How to schedule a pick-up: Send an email through the AMVET site or call to schedule a furniture donation pick-up between the hours of 8 a.m. and 4:30 p.m. It’s important to check with this organization ahead of time to see if their services are available near you. AMVETS has branches across the United States, but only has free furniture pick up available in certain states.
7. Donation Town
This site is perfect for anyone feeling overwhelmed trying to find charities that provide furniture pickup in their community. Donation Town works with local charities all over the country to help put individuals in touch with nonprofits that will provide this service for free. Simply enter your ZIP code and they’ll give you a list of charities to choose from.
Who your donation helps: Your donation will help the charity of your choice. They currently have over 400 charities of all sizes in their directory and are adding more all the time.
Items they accept: Items they accept depend on each charity’s guidelines.
How to schedule a pick-up: Visit Donation Town’s website to plan your pick-up with your selected charity.
8. Furniture Banks
If you donate your items to Furniture Banks, then you’ll be playing an important part in helping vulnerable families get back on their feet. The furniture donation pick up organization encourages people to donate gently used furniture and transfer the items to those struggling financially to furnish their own homes. Furniture Banks operates in 36 states, so check their website to see if they are in your area.
Who your donation helps: The families served by this organization include the previously homeless, unemployed, victims of crime, battered women and children in retreat, immigrants, individuals with disabilities and victims of natural disasters.
Items they accept: Furniture Banks accepts good condition furniture of all sizes. They also provide a towing service to pick up cars and recreational vehicles.
How to schedule a pick-up: To schedule a pick-up with this organization simply schedule an appointment on the Furniture Banks website.
9. Vietnam Veterans of America (VVA)
The Vietnam Veterans of America are working to change negative beliefs towards Vietnam veterans and provides individual assistance in a variety of ways. This includes creating outreach programs for veterans experiencing homelessness, substance abuse, incarceration and more. The VVA furniture removal program operates through a program called Pickup Please.
Who your donation helps: The Vietnam Veterans of America promote and support the full range of issues important to Vietnam veterans and work to change public perception of Vietnam veterans.
Items they accept: The Pickup Please program accepts small furniture items, sports equipment, toys, kitchenware, electronics and lightly used household goods. Pick Up Please says that they will pick up “almost anything” in good condition, but the piece of furniture must be light enough for one person to carry.
How to schedule a pick-up: VVA operates in most states and they make it super easy to schedule a donation pickup online. You can also get to VVA by way of their Pick Up Please site.
10. Out of the Closet thrift stores
The Out of the Closet thrift stores chain is owned and operated by the AIDS Healthcare Foundation (AHF). This organization provides medical, preventive and educational resources for patients. AHF is the nation’s largest non-profit HIV/AIDS healthcare, research, prevention and education provider. The proceeds from Out of the Closet thrift stores directly benefit the AIDS Healthcare Foundation.
Who your donation helps: Donations and financial contributions to this organization fund AIDS Healthcare Foundation’s HIV/AIDS programs, free HIV testing and housing programs.
Items they accept: Out of the Closet Thrift Stores accept furniture, kitchenware, electronics, musical instruments, tools, books, vehicles, artwork and home decor.
How to schedule a pick-up: You can schedule your pickup by filling out your address and items in a form on their website. Something to note is that you must have at least two furniture items for them to complete a free pick-up. You can also deliver any pieces of furniture to their local stores.
11. PickUpMyDonation.com
PickUpMyDonation.com is an organization that works with independent non-profit thrift stores in their communities. They’re focused on making large item donations simple by getting your furniture request to a local charity in minutes. Although they are not a charity themselves, they put you in touch with smaller charitable chapters that support the area you live in.
Who your donation helps: Your donation will support the charitable cause of the thrift store you are put in contact with.
Items they accept: PickUpMyDonation.com accepts large furniture, large appliances, vehicles, tools, recyclable materials, outdoor recreation items and artwork.
How to schedule a pick-up: To schedule a pick-up, visit pickupmydonation.com to make a furniture removal request and fill out a form describing the items you want to donate. Next, they’ll put you in contact with the closest thrift store, and if they’re interested in your furniture, they will schedule a furniture removal pickup.
Tips for furniture donation pick up
Donating your furniture is a great way to get rid of furniture you don’t use anymore while also helping your community. Follow these tips for a seamless furniture pickup experience.
Schedule your donation pick-up in advance: Many charities’ free donation pickup spots fill up quickly, so it’s important not to wait until the last minute to make an appointment. Schedule as far in advance as possible to ensure you get the date and time that works for you.
Research different organizations: Instead of just picking the first charity on the list, make sure to do some research to make sure their values and methods align with your own. All of the charities listed do great things for their communities, but each has its own way of making an impact.
Prepare your furniture: Each charity will have individual guidelines for how they want your furniture packaged and prepared for pickup. Leave furniture uncovered to be inspected but make sure it is cleaned and houseware is boxed correctly.
Write off your furniture donation: Did you know you can write off your furniture donation on your taxes? Simply ask the charity picking up your furniture for a tax receipt or paperwork to file and you’ll be saving money this upcoming tax season.
Coordinate with neighbors: While many nonprofits allow you to simply leave furniture outside your home for them to retrieve, others might require you to be there. If this is the case, then it’s best to coordinate with a neighbor or friend to stop by when they’re scheduled to arrive.
If you follow these tips, you should have an easy transition and donation pickup day. Also, make sure to always check to see if the organization of your choice has any additional requirements.
Declutter with furniture donation pick up services
Finding a new apartment has never been easier with Rent.’s finder tool. Start your move off on the right foot by using a free furniture removal service to declutter your place and take care of any worries prior to moving into your new home.
Alex Heinz is a writer with experience in a variety of industries from tech to lifestyle. Her work has appeared in Business Insider, TechCo and PopSugar. She’s lived in a handful of large cities including New York and San Diego, giving her first-hand knowledge of the ins and outs of renting. In her spare time, you can find her exploring new hikes with her dog.
U.S. credit card balances continued to climb above $1 trillion last quarter, while the number of newly delinquent credit card users now tops the pre-pandemic average, a new report shows.
The uptick in borrowers who have fallen at least 30 days behind on their card payments appears to cut across income and geography, but it is “disproportionately driven” by millennials, credit card users with auto or student loans and those with higher credit card balances, the Federal Reserve Bank of New York said Tuesday in its third-quarter report on household debt and credit.
Millennials, who were born between 1980 and 1994, are now moving into credit card delinquency status at a higher rate — 0.4% — than they were in the third quarter of 2019, according to the report. The potential reason for the higher rate may come down to urgent bills — housing, education, child care — that may take precedence over paying off credit cards.
“Those are all reasons why young adults are struggling,” said Ted Rossman, a senior industry analyst at Bankrate.com who specializes in credit card trends. “It’s a cumulative effect. If you’re paying so much more for these things, it makes sense that credit card payments might slip.”
Researchers at the New York Fed said Tuesday that they are planning to do more research into why millennials are experiencing higher rates of delinquency compared to other generations.
One factor could be that older generations, who are more likely to be homeowners, may have benefitted from mortgage refinancing in recent years that lowered their monthly housing costs. Millennials, many of whom may not be homeowners yet, are dealing with higher rent costs.
Overall, household debt, including credit card balances, mortgages, auto loans and student loans, totaled $17.29 trillion in the third quarter, an increase of 4.8% year over year. Balances have grown by $3.1 trillion since the end of 2019, just before the pandemic started.
For the second consecutive quarter, credit card balances exceeded the $1 trillion mark, rising to $1.08 trillion as of Sept. 30, up from 16.1% from a year earlier, the New York Fed found. Credit card balances were $1.03 billion the prior quarter, up from $980 billion in the first quarter.
About 2% of all card users went from “current” status in the second quarter to 30 or more days past due in the third quarter, the report said. That’s up from 1.7% in the first and second quarters of this year, and it’s higher than the third quarter average of 1.7% between 2015 and 2019.
The increase in credit card delinquencies last quarter comes on the heels of what had appeared to be a stabilization of past-due payments, particularly among subprime borrowers who in general have been more likely than other borrowers to be late on their card payments.
During the third quarter, the rates of transition into delinquency status increased for all loan categories except student loans, the New York Fed found. About 8% of credit card balances moved into delinquency status, with borrowers between the ages of 30 and 39 seeing the sharpest increase in credit card delinquency for the quarter, according to the report.
Banks as a whole are not yet sounding alarm bells about rising credit card delinquencies. But several are pointing to “normalization” trends that include an uptick in past-due payments.
At Capital One Financial in McLean, Virginia, the 30 days’ past due delinquency rate increased to 4.31% during the third quarter, up 134 basis points from the same quarter in 2022, Chairman and CEO Richard Fairbank said on the company’s third-quarter earnings call. The monthly delinquency rate and monthly charge-off rate are “now modestly above 2019 levels,” he added.
Meanwhile, Synchrony Financial of Stamford, Connecticut, said its 30-day and 90-day past-due payments are now “approaching 2019 levels” as credit trends continue to return to normal.
“Overall, our credit performance remains within our expectations,” Chief Financial Officer Brian Wenzel Sr. told analysts during the firm’s third-quarter earnings call. At the same time, the $113 billion-asset card issuer is “continuously monitoring” its card portfolio and has “implemented further credit actions,” such as tightening some of its loan origination criteria, Wenzel said.
Rossman of Bankrate.com called the overall increase in card balances “striking,” but added that “all things considered, I think the consumer has hung in there a lot better than expected.”
Still, he’s beginning to wonder when the impact of inflation and higher interest rates will widely, and negatively, impact consumers, who are by and large still in spending mode, he said.
The job market will be one area to keep watching, he said.
“I do think we’re getting closer to a tipping point in terms of excess savings, which has pretty much been exhausted at this point,” he said. “We’re getting to the point where something has to give. People will have to spend less or these debts and loans are going to become increasingly difficult.”
Going to college or graduate school is a serious investment in your future — both professionally and financially. Naturally, you’ll want to know how much financial aid you’re eligible for, including student loans, grants, and work-study programs.
The amount of federal aid that prospective and current students receive is based on a variety of factors, and everyone’s financial situation is unique. But familiarizing yourself with the following requirements and questions can help paint a clearer picture of how much FAFSA money you will get.
What Are the Eligibility Requirements?
Many incoming and current college and graduate students are eligible for federal aid. Students must satisfy the following criteria to apply:
• Be a U.S. citizen, national, or eligible noncitizen
• Have a valid Social Security number, unless you’re from the Federated States of Micronesia, Republic of the Marshall Islands, or the Republic of Palau
• Have a high school diploma or GED
• Promise to use awarded federal aid for education purposes only
• Do not owe refunds on any federal student grants
How Do I Begin the FAFSA?
The first step to completing the FAFSA is creating your FSA user ID and password. From there, you’ll answer a series of questions covering demographic information, schools you are interested in attending, financial details, and information from parents or guardians based on dependency status.
Filling out the FAFSA may feel intimidating, but a little preparation can save you from common FAFSA mistakes, like leaving important fields blank.
What Factors Affect FAFSA Money?
The application includes questions about demographics and finances for students and sometimes their families to answer. Collectively, this information will determine how much need-based and non-need-based aid students qualify for.
Applying for the FAFSA Every Year of School and on Time
Filling out the FAFSA is not a one-time deal. Students must file the FAFSA each year they are enrolled in college or graduate school. Yet approximately 40% of high school seniors do not fill out the FAFSA, and a quarter of college and graduate students do not renew their application after their first year of studies.
There are several important FAFSA deadlines to be aware of. The federal deadline for the 2023-2024 academic year (this includes students beginning school in winter or spring 2024) is June 30, 2024. For the 2024-2025 academic year, students can submit the FAFSA once it opens in December 2023.
State deadlines vary, and many precede the federal deadline by one or several months. Applying early can increase your chance of receiving additional financial aid from your home state in the form of grants or scholarships.
Dependency Status
An applicant’s dependency status is determined by 10 questions found at StudentAid.gov/dependency. Even if your parents claim you as a dependent for tax purposes, you may still qualify as an independent for federal financial aid. You most likely qualify for independent status if you meet any of the following requirements when filling out the FAFSA:
• At least 24 years old
• Married
• A graduate or professional student (law, medicine, etc.)
• A veteran or active member of the armed forces
• An orphan, ward of the court, or emancipated minor
• Claiming legal dependents other than a spouse
• Homeless or at risk of becoming homeless
Your dependency status affects how much financial aid you’re eligible to receive. In many cases, independent students can be eligible for more financial aid, as they are assumed to be paying their own tuition and living expenses.
Still, dependent students may be eligible for a variety of financial aid opportunities from federal or state governments and colleges through the FAFSA. Most incoming and current undergraduate students are considered dependent. This means that information from parents or guardians, such as tax returns, must be submitted and will affect whether financial aid is awarded and how much.
In special circumstances, students may file for a dependency override. These are awarded case by case, and are typically reserved for students facing exceptional family-related issues or whose parents are unwilling to provide information for the FAFSA.
Expected Family Contribution
Expected Family Contribution, or EFC, primarily applies to dependent students. The EFC calculates eligibility and aid based on several financial and demographic indicators, including:
• A family’s taxed and untaxed income
• A family’s assets and benefits (unemployment and Social Security, for example)
• Family size and number of dependents enrolled in or likely to attend college
This calculation determines need-based and non-need-based aid eligibility and amount, rather than a figure a family is expected to pay toward education. Typically, a lower EFC translates to greater financial aid eligibility as a result of higher need.
Starting with the 2024-2025 school year, the EFC will be replaced by the Student Aid Index, or SAI. It fulfills the same basic purpose but works a little differently. You can learn more about the upcoming Student Aid Index here.
Cost of Attendance
Education costs can vary considerably based on merit-based scholarships, in-state vs. out-of-state residency, and other factors. The amount of FAFSA money you receive will also depend on the cost of attendance for your chosen college or university.
The cost of attendance encompasses tuition, fees, room and board, books and school supplies, and expenses associated with child care or disabilities, if applicable. A lower cost of attendance usually translates to less aid, because the funding can be used only for education purposes.
Not sure where you want to apply? Our College Search tool can help.
How Much Money Will I Get From FAFSA?
The amount of FAFSA money you receive cannot exceed the cost of attendance for your chosen college or university.
Before applying, the Federal Student Aid Estimator is a useful tool to estimate the amount of federal student aid you may qualify for.
Assuming that you meet the eligibility criteria and are applying on time, you may receive some form of federal financial aid, especially if your EFC is less than your cost of attendance. Potential sources of federal student aid include the following programs:
Grants
Unlike loans, grants are free money to put toward your education that does not have to be paid back. After completing the FAFSA, students with proven financial need may receive aid in the form of a Federal Supplemental Educational Opportunity Grant or Pell Grant. Opportunity grants are allocated based on need, other aid awarded, and college budgets. Pell Grants change annually but can be as high as $7,395 for the 2023-2024 academic year.
Work-Study
Federal work-study programs typically involve a part-time job on or off campus. Wages are set by the college but must meet minimum-wage requirements. Work-study schedules are intended to be structured around students’ classes.
Federal Loans
Eligibility for federal student loans is generally broader than for grants and work-study programs. Federal loans are either subsidized or unsubsidized, with subsidized loans being need-based and including interest deferment and grace periods. On the other hand, unsubsidized loans begin accruing interest as soon as they are paid out to borrowers.
Different types of federal student loans exist, and each has a maximum award amount according to dependency status and year of study. Dependent undergraduate students have an aggregate loan limit of $31,000. Independent undergraduates can take out $57,500, and graduate students can borrow up to $138,500.
How Else Can I Pay for College?
If financial aid isn’t enough to cover your tuition and other education expenses, there are ways to make college more affordable.
Scholarships and Grants
Besides scholarships granted by your chosen college, there are opportunities offered by private foundations, community groups, and nonprofit organizations. Awards can be given based on academic merit, need, field of study, or participation in a specific sport or activity. Our Scholarship Search tool can help you unearth available awards filtered by school type, field of study, state, and more.
Try to stay on top of scholarship and grant applications and deadlines as they can come and go quickly. Winning a scholarship or a grant is basically finding free money, and you don’t want that money to go unclaimed.
Private Student Loans
Students who cannot pay for college with scholarships and federal aid alone can apply for private student loans from various financial institutions, including banks, credit unions, and online lenders. Interest rates, forbearance, and other terms and conditions can vary, so shop around to compare loan rates and terms.
SoFi’s no-fee private student loans are an option for students to help pay for college and graduate school. Flexible repayment plans can ease the search for a loan that works with a student’s budget and financial plan.
Learn how you can help pay for your education with private student loans from SoFi.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Shop it while you can: A new store opening three days each month debuts today in a long-vacant retail space.
Christi Petersen is opening Seasoned Style at 824 W. 10th St., filling a first-floor space that years ago was The Willow Tree boutique and more recently was a tattoo shop.
“It’s a unique shopping experience each month,” said Petersen, who has a background in education and child care and is a partner in a similar shop in Dell Rapids.
“There’s lots of stores that do this around the country. It’s usually hand-collected, handcrafted.”
That’s the case with Seasoned Style, which this month offers a variety of fall-themed merchandise arranged throughout multiple rooms of the first floor. The upstairs is rented by a tenant.
Other than a few display pieces, “pretty much everything is for sale,” she said.
“I’m concentrating a lot on my brand color, the green (this month), and the golds and neutrals and really all the colors of fall.”
About 90 percent of the merchandise is vintage or upcycled, while Petersen hand-pours soy candles herself.
“It’s all things I find at a thrift store,” she said “I do very little wholesale, and I try to find as much handmade as I can.”
All sales are final.
Hours will be the third week of each month: 4 to 8 p.m. Thursday and 10 a.m. to 5 p.m. Friday and Saturday.
Inside: Dreaming of ways to make money fast as a woman? Stop dreaming and take action. These are genius ways of making money online and at home.
Making money fast is crucial for maintaining a comfortable lifestyle, especially in the face of rising living costs. It can be the key to financial stability, providing additional funds to support and enjoy your lifestyle.
As a woman, you need to know how to make money fast.
This isn’t just about getting rich quickly. It’s about women gaining the freedom to live independently without financial constraints.
The feeling of financial security lessens stress; not having to worry over unexpected expenses plays a big role in your overall well-being.
This is what you want to do – make money fast!
Good news! You are in the right spot and I’ll show you my favorite ways to make money online.
Get into the right mindset, ladies! Making money fast isn’t just possible, but also liberating.
How can I make easy money ASAP?
Making easy money quickly can be achieved in various ways that utilize your skills and knowledge.
First and foremost, consider your own skills and expertise, and determine whether they could apply to jobs like cake baking, childcare, bookkeeping, house cleaning, or freelance writing.
This will tell you the easiest way for you to make money quickly. For me, I prefer to trade options in the stock market. Whereas someone else may choose babysitting or dog walking.
You need to find how to make money fast and we will help you with that decision.
Why Making Money Fast is Important
1. Makes it possible to live comfortably 2. Enables you to afford the best quality of life 3. Gives you the freedom to pursue your dreams 4. Gives you the freedom to live without financial constraints 5. Provides you with security and safety 6. Freedom to give back to your community 7. Freedom to choose how you spend your time 8. Opportunity to take risks and start a business 9. Provides you with a sense of power and control 10. Live without financial worry
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
Check out this free workshop!
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
How can I make a lot of money in hours?
Making income in a matter of hours for a woman is entirely feasible with a blend of freelancing, leveraging gig economy platforms, and capitalizing on your skills or assets. Here’s a quick guide for you:
Consider freelancing: Establish your writing, graphic design, or programming services on platforms like Fiverr or Upwork.
Dive into the gig economy: Sign up for TaskRabbit, Airbnb, or Turo to start earning.
Try online tutoring or content selling: Proficient in any subject or have strong graphic design skills? Go for tutoring or sell your content.
Indulge in buying & selling: If you’re good at purchasing low and selling high, then swap clothes or furniture, or even stocks.
Take online surveys or join market research groups on sites like Swagbucks for a rapid source of income.
Remember, time management is crucial for balancing multiple streams at once. Don’t forget to schedule wisely!
How to Make Money Fast as a Woman
No matter who you are, making money can be tough. But if you’re a woman, it can feel impossible.
From getting paid less than men for the same job to having a harder time getting promoted, the deck is often stacked against us.
Just so you know that making quick money in one day won’t happen overnight.
So, I’m going to tell you the best ways to make money fast as a woman.
1. Sell Services
Selling your skills or expertise is a fast, viable way to earn money. It’s all about utilizing what you already know to provide value to others.
Identify your marketable skills, such as cake baking, freelance writing, bookkeeping or even organizing spaces.
Brainstorm which of these services people could pay for.
Remember, you can tap into both physical tasks, like house cleaning or pet-sitting, and digital ones, like creating digital printables or offering consulting in your field of expertise.
Expert Tip: Launch your service with a few testimonials, helping to build trust with potential customers from the get-go.
2. Freelance
Freelancing is a savvy way for women to stack up earnings fast, offering flexibility and complete control over the workload. It’s a ticket to dodge conventional office politics and punch above your earning potential.
Start by identifying your freelance niche. You can be a writer, graphic designer, or anything you’re skilled at. Many people use their transferable 9-5 skills to side hustle.
Then, create your profile on platforms like Fiverr, Upwork or Guru – be sure to showcase your accolades.
Set your rates, then start connecting with clients looking for your talent.
Remember, success in freelancing is driven by quality and consistency. So, sharpen your skills and always exceed your client’s expectations.
Freelancing may start as a side gig, but with dedication, it can grow into a full-time job.
3. Become a Product Reviewer
Being a product reviewer is an intriguing job opportunity for those who enjoy sharing candid feedback about their experiences with various products.
As a product reviewer, you are required to assess products often sent to you from diverse companies.
Your role involves providing a comprehensive review that could range from making an unboxing video to writing a detailed article about the product’s features and performance.
This kind of job requires an unbiased perspective and the capacity to articulate your thoughts and experience in a detailed, user-friendly manner.
Companies value this form of direct feedback as it provides them with significant data about their product’s strengths and weaknesses as perceived by an end-user.
4. Virtual Assistants
As a woman, becoming a virtual assistant could be your fast lane to earning a substantial income.
This is especially a great option if you’re excellent in organization and time management along with the need for flexibility.
For many becoming a virtual assistant with no experience is possible. And very lucrative.
Finally, for your best shot at success in this field, taking a course to improve your learning curve is extremely helpful.
Potential to earn up to $43,000 per year.
5. Sell Your Crafts
Ladies, have you thought of turning your love for crafts into a profitable venture?
Find out what crafts are in demand. The higher the demand, the more profitable it would be to make and sell these crafts.
Remember, profitability hinges on what you sell and how much you sell. Happy crafting!
While you are limited on what you can earn by what you can make, it is possible to make money doing something you absolutely enjoy.
6. Stock Trading
Stock trading may seem daunting but it can be a quick route to financial independence, especially for women.
With the right tools, information, and mindset, you can swiftly navigate the market and amplify your earnings. In fact, this is something Teri Ijeoma did herself.
Educate yourself on the basics before you invest. This is exactly what I did and my investment has paid off.
Always be aware of the risks involved in stock trading and proceed cautiously. However, building up an investing education is a wise decision.
Learn how fast can you make money in stocks.
7. Babysit
Babysitting is a versatile side hustle offering flexible hours and good earning potential.
It’s an ideal opportunity if you’re seeking quick, extra income and enjoy children.
Obtain optional certifications like CPR and first aid to enhance your appeal. Visit platforms like Care.com, Sittercity, or Urbansitter to create your profile and connect with clients.
8. Transcriber
One field that remains highly overlooked is transcription.
A transcriptionist listens to audio files and converts them into written documents.
Gain a thorough understanding of the industry. Check out this free webinar to get the basics right.
Consider specializing in legal or medical transcription. These niches often fetch higher wages.
You could easily make $3000-$4000 monthly, working on your own schedule.
Remember, practice and precision can help you achieve a lucrative transcription rate.
9. House Cleaning
Cleaning can be a rewarding gig, especially if you like tidying spaces.
Despite recognizing the need for a clean home, many people often struggle to find the time or energy to routinely clean their homes. This is where the prospect of a housecleaning business arises.
Busy homeowners, parents juggling work and childcare, elderly individuals needing assistance, and even businesses needing regular cleaning services are all potential clients for a housecleaning business. This demand provides a consistent income flow for those offering cleaning services.
In fact, individuals transitioning into this field of work can negotiate their wages with clients, potentially earning more than $15 an hour based on the complexity and demands of the job.
10. Sell Printables on Etsy
Selling printables is an effective and lucrative method to generate passive income.
Once printables such as planners, calendars, and journals are designed, created, and listed for sale on platforms like Shopify or Etsy, they can consistently produce income without requiring continual input or maintenance.
According to several experts, one of the keys to making substantial profits from printables is to differentiate your products.
Building upon this idea of making money from printables, the free Printables Workshop by Gold City Ventures offers comprehensive insights into the process of creating and selling aesthetically pleasing printable products online. This accessible course can be an excellent starting point for beginners looking to navigate the printables market.
Selling printables on Etsy might be the perfect venture for you!
11. Dog Walking
Looking for a fun-filled way to make some quick bucks?
Dog walking could be the right side hustle for you, especially if you’re an animal lover.
Easy to find jobs for dog walking.
Suitable for people with flexible schedules.
Offers an active way to earn money.
Option to select your rates with platforms like Rover.
High demand especially due to increasing pet adoptions and busy pet owners.
You can work when you need to and not take clients when you don’t want too.
12. Make Money Blogging
Blogging is a popular and prevalent way to earn money. Many blog owners are women who want the flexibility to earn significant money at their own pace and schedule.
Earning money through blogging allows you to focus on something you’re passionate about. Any topic that can provide value to an audience can be blogged about. Targeting a niche that has been overlooked by existing blogs can increase your blog’s potential earnings.
Starting a blog doesn’t require formal training, but it does require a willingness and ability to write effectively for an audience.
By employing monetizing avenues, like affiliate marketing and advertising, a blogger can boost their earning significantly.
Despite the vast number of existing blogs, the industry is very accommodating toward new voices, especially female voices. Thus, knowing how to monetize a blog can offer women many opportunities.
Remember, blogging is not just about earning fast bucks, it also needs consistent efforts. It’s rewarding but can start slow.
13. Ride-Sharing
Ridesharing is an excellent opportunity for women looking to make fast money. With apps like Uber and Lyft, you can earn an income simply by offering transportation services.
Here are a few tips to increase your earnings:
Consider driving during peak hours, weekends, or during special events to cash in on higher demand.
Choose busy locations such as city centers and nightlife spots to increase your chances of getting rides.
Maintain good customer service and ensure safe driving to uphold your rating and receive more ride requests.
14. Office Cleaning
Considering the hustle and bustle of the daily grind, office cleaning can be an untapped treasure trove for women seeking quick cash. Given the high demand and flexible hours, it’s an ideal source of extra income.
You must identify office premises needing cleaning services. Reach out to the owners or management, and propose your services.
Think about offering your services to offices in your local area. It’s a fast way to make extra money while managing your other commitments.
15. eBay Arbitrage
Looking to earn some quick money? eBay Arbitrage could be the game-changer you need.
Aimed mostly at women who love shopping, it’s about buying products cheaply and selling them on eBay for a profit.
First, hunt for bargains in thrift stores, sales, or online markets.
Go with high-demand items; electronics, collectibles, or brand sneakers are a good start.
Then, create your eBay store and list your finds at a competitive but profitable price.
Track each item’s demand through keyword research and buyers’ reviews.
Remember to calculate potential profits inclusive of shipping costs and eBay fees.
Armed with the right strategies, you can start earning with eBay in no time!
16. Freelance Writing
Did you know your writing passion can become a quick buck-making engine? That’s right, freelance writing is a gold mine you ought to tap.
First, identify a writing niche you love. It’s easier to excel when you’re passionate about your work.
Continually hone your writing skills. The more you practice, the better you become and the more valuable your skills. Finally, don’t be shy to market your skills. Reach out to small businesses and startups—they often need freelance writers.
Remember, quality over quantity will earn you a solid reputation in the long run. Now, go turn those wordy wonders into wealth!
17. Online Surveys
Curious about making a quick buck? Engaging in online surveys can be a fast money-making method just for you!
You don’t earn a huge amount per survey but when taking multiple surveys, it will add up fast.
Here are the top legit survey platforms:
Use your free time wisely. Take surveys during work breaks or leisure hours.
Redeem points for PayPal cash or gift cards.
18. YouTube Channel Building
Building a YouTube channel can be an interesting and rewarding venture.
It provides an incredible platform to share your content, express your creativity, and engage with a global audience. Whether you want to showcase your talents, teach something unique or simply entertain, having a YouTube channel opens up many opportunities.
Effective engagement with your audience is vital.
Last but not least, patience is something you will need in abundance. Building a successful YouTube channel takes time, so don’t lose hope if you’re not seeing immediate results.
Remember, there’s no limit to what you can achieve with your YouTube channel. It all comes down to how creatively you can use this platform to engage with your audience and grow your presence.
19. Bookkeeper
In our increasingly digital age, online bookkeepers are in high demand, with more businesses choosing to move their financial operations to the online platform. This shift in business operations has created a robust opportunity for those trained in bookkeeping to tap into the market and earn income while working from the comfort of their homes.
To be successful as web-based bookkeeper, you need to be well-organized and have previous experience dealing with numbers. However, even without a formal accounting education, individuals can take advantage of online learning platforms like Bookkeepers.com to learn and sharpen their bookkeeping skills for free.
Becoming a virtual bookkeeper is not just a fantastic full-time job opportunity; it’s also an excellent side hustle for women and mothers proficient with numbers. It provides flexible hours and allows the freedom to work from anywhere, making it ideal for those juggling multiple responsibilities.
The financial compensation for an online virtual bookkeeper is quite significant. On average, bookkeepers can earn at least $50000 a year helping business owners manage their finance and bookkeeping online.
20. Start a Dropshipping Store
Dropshipping is a viable option with low startup costs that lets you run an online store without handling any physical products.
There is still plenty of time to get into the dropshipping business.
Start by deciding what products to sell. Find a niche you’re passionate about for a higher chance of success.
Remember, a successful dropshipping venture involves effective marketing as well. So invest time and effort into perfecting your advertising tactics.
21. Do Clerical Work
Clerical work offers flexible, remote opportunities for women to make quick money.
With adequate admin experience and internet access, you can explore roles like Virtual Assistant, Online Data Entry Professional, or Court Transcriptionist.
This is one of the best non phone work from home jobs.
Experts tip: Perfection and punctuality are key. Attention to detail and meeting deadlines can make you stand out.
22. Resell Clothes
Reselling clothes online is a savvy way to turn your clutter into cash, especially if you love digging for hidden gems.
It’s a popular method for fast cash flow, with Poshmark and Facebook Marketplace being perfect platforms. One of my friends is very successful with this!
Begin with your own closet, and sell kids clothes they have outgrown too.
Reinvest your earnings, by buying second-hand clothing to resell can boost your profits.
Don’t forget quality. Run a quick check for authenticity and brand labels.
Visuals sell. Stage items and capture high-res photographs.
Providing a great customer experience is key, ensuring prompt shipping and maintaining politeness.
Play your cards right, you could earn anywhere between $100 to $1,000 a month or even reach a six-figure yearly income.
23. Do Home-Based Child Care
Home-based child care is a viable option to earn money, leveraging the natural maternal instincts and caregiving skills of many women. It can be a lucrative side hustle and a means to financial independence.
This is especially a great avenue to pursue when you are already at home raising your own children.
Make sure to follow any state regulations about running a daycare out of your home.
Begin by determining the number of children you can handle at a time, taking care not to overbook.
24. Podcasting
Podcasting is a wonderful opportunity for delivering narratives. It enables you to weave compelling stories while inspiring, instructing, or simply entertaining your listeners.
The unique format of podcasting lets you connect with your audience on a personal level. They listen to your voice, engage with your thoughts, and feel a stronger connection to you.
By starting a podcast, you are joining an increasingly popular trend, with the global number of podcast listeners has grown to 464.7 million listeners in 2022 (source).
Podcasting also opens up doors for networking and collaboration. You can invite experts, artists, or like-minded individuals as guests on your show, thus expanding your network.
There’s a potential to earn from podcasting. With affiliate marketing, sponsorships, and advertising, the commercial possibilities of podcasting are extensive.
25. Merch by Amazon
“Merch by Amazon” is a print-on-demand service that allows you to design and sell your merchandise.
It’s a great money-making alternative as it offers massive exposure and doesn’t require any upfront costs.
One of the significant advantages of using Merch by Amazon for passive income is that you are not required to maintain inventory or deal with shipping. Amazon handles these aspects, allowing you to focus on the creation process and customer satisfaction.
Amazon’s royalty system ensures that you get paid instantly whenever your merchandise is purchased. This allows you to earn money passively with every sale.
When your designs meet the current market trends and the preferences of your customers, they are more likely to be popular, leading to an increase in sales, hence, higher passive income.
26. Become an Influencer
Becoming an influencer is a smart, quick way for women to make money. While most people just stumble upon becoming an influencer, you can decide to pursue this avenue.
With earning potential that is unlimited, this opportunity is flourishing, requiring no specific degree or job experience.
Remember, platforms like TikTok, Instagram and YouTube reward new, engaging creators.
Dedication and consistency could lead you to major earnings where you make thousands for each post.
27. Work as a Translator
Having mastery in more than one language opens up a world of opportunities, particularly in the realm of translation services. The ability to translate language effectively and accurately is a skill that’s in high demand in the current globalized world.
A top benefit of being a freelance online translator is the flexible work environment. You have the freedom to choose when, where, and how much you want to work. This flexibility for work-life balance is more appealing now than ever, especially in the unsteady job market.
Freelance translators also have access to a wider client base. Unlike full-time translators who work for specific organizations or agencies, freelance translators can work with various clients from all over the world, widening their potential income streams.
The need for translators is projected to grow substantially. In the United States alone, the U.S. Bureau of Labor Statistics reports that employment for interpreters and translators will increase by 20% from 2021 through 2031, which is much faster than the average for all occupations.
Among other freelance professions, translation can often provide a more stable income.
As most sectors including education, legal, business, medical, and technological firms continue to globalize, they regularly need translators to bridge the language gap, making freelance translation services a steady income source.
31. Become a Flipper
Becoming a flipper is a high-return, low-investment way to make money fast. It involves buying low and selling high, perfect for those wanting a profitable side hustle.
Here are actionable steps to kickstart your flipping journey:
Identify items to flip: Popular options include toys, clothes, electronics, books, and furniture. Pro-tip: Sell things you have around your house to start risk free.
Choose a selling platform: Sell locally via Facebook groups or Craigslist, use reselling apps like Decluttr, or open an online store on eBay.
Price it right: Pricing items competitively garners buyer interest and maximizes profit.
Learn more: Free webinars, like Flipper University and the Flea Market Flipper, offer insights for a successful flipping business.
Remember, flipping can be more than just a side hustle; it’s a potential full-time career.
32. Micro-Tasking
Micro-tasking offers a quick way for you to earn money by completing short and simple tasks.
As its popularity grows, so does the list of platforms where you can find micro-jobs. Here are the popular platforms.
This allows your the flexibility to work whenever you want. Plus no special skills or degrees are needed.
Just note… This is not a stable income source
Tips for Finding the Best Way for You to Make Money
As you can see, there are many different ways to make money fast as a woman.
You can find the best way for you by considering your skills, interests, and the amount of time you have available.
Here are some helpful tips to make sure you are earning money quickly.
1. Identify Your Skills and Offerings
You’re already gifted, let’s transform those skills into fast cash.
Make a list of your skills, passions, and expertise; you can tap into anything from programming to knitting.
That is where you want to start.
From personal experience, I can tell you it is way easier to work on a side hustle or business when you are passionate about the topic.
Remember, the digital world is your playground, so play, innovate and cash-in.
2. Research the Best Ways to Make Money
Now, that you know the skills and experience, look at the list above and determine which ones match up.
You will need to spend time watching a free webinar to learn more.
Compare different money-making ideas. From part-time jobs to freelancing, there’s a plethora of options. You need to pick what works best for you.
Remember, generating a consistent income requires effective strategies and the right mindset. So choose wisely!
3. Try Different Ways to Make Money – Not Just 9-5 Jobs
It’s vital to explore different money-making strategies as a woman for financial stability and independence.
Just because one avenue didn’t work out doesn’t mean you should throw in the towel.
Remember, the key to success is perseverance, so pick something you’re passionate about and stick to it. Try not to jump from one idea to another out of impatience; success takes time.
Also, as your revenue increases, start building a lifestyle business for passive income.
4. Focus on the Things You Are Good at
Unlock your financial potential by recognizing and utilizing things you’re excellent at.
To cash in fast:
Identify your standout skills. These could range from writing, fine arts, math, e-commerce to digital marketing or even passions such as sports and hobbies.
Assess the viability of earning via your skills. Research shows that the digital economy is filled with opportunities.
Exploit platforms that cater to your expertise. For freelance gigs, you can try platforms like Upwork, Fiverr, or Guru.
There are so many ways to make money online as a beginner. So, indulge in the digital playground, embrace exploration and innovation, and let your skills earn for you.
5. Find Opportunities That Allow You to Work Flexibly
You can choose when to work and when not to, rather than being constrained by a 9 to 5 workday. The flexibility to create your schedule means you can operate at your most productive times, whether that’s early in the morning or late at night.
Working from home or any location across the globe enables a better work-life balance, reducing stress and improving productivity. This is particularly beneficial for those who have families or are committed to other obligations.
When working for yourself, you may have the potential to earn more than traditional salaried roles.
Lastly, making a living from your passion is huge!
You are being paid to do what you love anywhere, anytime which is rare and precious.
6. Consider Specializing in a Niche Subject
Specializing in a niche subject can elevate your earning potential quickly, owing to smaller competition and a personalized audience.
Being a subject matter expert in a specific area can provide you with an edge over your competitors.
Specializing in a niche can help you stand out and garner a dedicated audience, ultimately leading to faster earnings.
Remember, the key to making money faster in your specialized area is persistence and patience. It may take time to build a strong following, but once you do, the financial rewards can be substantial.
Stick to your chosen area, continuously learn and improve, and consistently deliver high-quality content to make your mark in your chosen niche.
7. Take Advantage of Trending Opportunities
Jumping on trending opportunities can be a gold mine, especially for women who want to make money fast from home. These ever-evolving trends tap into various skill sets, interests, and experiences, potentially translating into a lucrative gig.
For many, it may have been TikTok when the company first started.
Remember, the digital world holds limitless potential. Just needing to innovate and execute your ideas!
8. Invest in the Right Tools and Equipment
The key to making money, either online or offline, is making an informed investment of your time into the right tools, equipment, and learning resources.
While this can initially seem like an expenditure rather than a money-making step, it is, in fact, a cornerstone of your financial growth strategy.
Investing time in learning and increasing your knowledge base is vital. This could mean spending your time reading about new insights in your area of work, attending webinars, or enrolling in online courses. The ROI of this proactive learning is immense.
Consider this an opportunity or a catalyst that speeds up your journey toward substantial income generation and financial freedom.
9. Commit to Consistent Efforts
Commitment to consistent efforts is the cornerstone of any successful endeavor, more so when running your own side hustle.
One of the fundamental principles for making money is the dedication to keep improving your craft, always learning, and always evolving.
This continual effort involves a long-term commitment to staying updated with the latest writing trends, styles, and industry standards.
With persistence and patience, the fruition of your investments will lead you toward the fulfillment of your financial dreams.
10. Utilize Social Media Platforms to Promote Your Business
Social media platforms are powerful tools for business promotion, and when used strategically, they can lead to fast monetary gains.
Understanding how to effectively utilize these platforms can drastically enhance your chances of making quick bucks.
Start by creating a robust online presence for your business on various social media platforms. Remember, consistency is key to building your brand.
Engage with your audience frequently and respond to their comments. This boosts engagement on your posts.
Post content that is engaging, relevant, and aligns with your business values.
Always monitor your performance using social media analytics to understand what works best for your audience.
Which side hustles for women have you tried?
Personally, here are the side hustles I have done or currently do:
Stock Trading as a swing trader
Online Content Creation
Social Media Influencer
Online Consulting
Pet Sitting or House Sitting
Teaching Dance Lessons
Personal Organizer
However, I know many people that have tried the ones listed above.
So ladies, which of these enticing hustles appeals to your skills and schedule the most?
FAQ
Stay-at-home moms have numerous opportunities to earn money from the comfort of their homes. Plus being able to bump up your household income while juggling parenthood is the perfect combination.
Find the best jobs for moms specifically!
Any of these opportunities requires dedication and consistent effort, but with time they can all yield substantial returns.
Thankfully, there are many ways for women to make money online.
Above we covered all of the interesting ways and many are online.
Remember, opt for an avenue that suits your skills, interests, and time availability.
Well. the answer to this will depend on who you speak with.
Personally, I find ways to build passive income with your side hustle as the best option. Then you aren’t trading your time for money.
As a woman, many opportunities are right at your fingertips. The most popular and profitable include:
Start a blog: With consistent readership, you can make thousands from ad revenue and sponsored content.
Virtual assistant: Services can fetch around $10-30/hour.
Social Media Management: Businesses are willing to pay up to $1000-2000 per month for proficient managers.
Bookkeeping: On average, freelance bookkeepers earn around $34/hour.
Selling products online: Sites like Etsy, Amazon FBA, or your own platform can earn you a substantial income with a successful shop.
Trading Stocks or Options: by improving your investing knowledge, you can quickly increase your net worth.
Remember – it all starts with a step. Your side hustle could turn into a full-time passion!
This is How to Make Money from Home as a Woman
In conclusion, as a woman, there are plenty of genius and fast ways for you to make money.
The article underlines the significance of grabbing the reins of your financial future.
Through the strategies shared – including investing in stocks, working from home, or using budgeting hacks, you can boost your income significantly.
One of the concepts, I’m big on is making sure you know how to make your money work for you.
With wise decisions and being open to possibilities, your financial independence is within reach.
Remember – the ball is in your court, so make sure to take that shot and score your financial goals. It’s high time to cash in on your potential!
Know someone else that needs this, too? Then, please share!!
A strike is an action taken by a group of employees who stop working in an attempt to pressure their employer into meeting their demands. Workers strike over a wide array of issues, but the most common demands include higher wages, safer working conditions and better benefits.
A strike is a powerful tool for workers looking to effect change in their workplace. Halting production can impact a company’s bottom line and draw public attention to workers’ complaints.
For example, you have probably seen reports of screenwriters and actors striking in Hollywood over fair pay and other issues. The strikes include members of the Writers Guild of America, a union representing 11,500 screenwriters, and the Screen Actors Guild and the American Federation of Television and Radio Artists (SAG-AFTRA), which represents 160,000 performers. The strikes effectively shut down Hollywood, canceling or postponing new movies and new seasons of TV shows. The strikes will do more than interrupt people’s media consumption, though. The last time TV and film writers went on strike in 2007, the economic impact was calculated at $2.1 billion, including 37,700 lost jobs, according to a report by the Milken Institute, a think tank focused on economic development.
Even the threat of a strike (especially one involving hundreds of thousands of workers), can compel an employer to make the changes called for by employees. Recently, the Teamsters union, which represents 340,000 UPS workers, threatened a strike over demands for higher pay, more jobs and new workplace protections. UPS and the Teamsters reached a deal on a tentative five-year contract just days before the strike was set to start.
A strike would’ve disrupted package delivery on a massive scale, wreaking havoc on businesses and the economy. According to one estimate by Anderson Economic Group, a consulting firm, a 10-day UPS strike could’ve cost the company more than $800 million. The wider economic impact could’ve reached $7 billion.
How a strike works
The National Labor Relations Act of 1935 gives U.S. employees the right to strike.
Deciding to strike
Workers decide to strike for a variety of reasons. In 2022, the top reason was pay, followed by health and safety issues and staffing, according to the Labor Action Tracker, an annual report on work stoppages by unionized and nonunionized workers compiled by researchers with the Cornell University ILR School.
Often, strikes are organized by labor unions, which have the role of representing their members in contract negotiations with employers. For a union to go on strike, it has to have support from union members who cast secret ballots in a strike authorization vote. Voting to authorize a strike doesn’t guarantee a union will go on strike. Instead, authorizing a strike shows the employer on the other side of the bargaining table that the threat of a strike is credible because members have authorized union leaders to call for a strike.
SAG-AFTRA, the performers’ union, authorized a strike in early June. Then, on July 13, its national board held a second vote to launch the strike.
Can you strike without a union?
U.S. workers don’t have to be part of a union to go on strike.
The Fight for $15 campaign is a high-profile example of nonunionized workers organizing a strike. In 2012, fast-food workers in New York walked off the job in protest of low wages and poor working conditions. That soon grew into a nationwide campaign to demand a $15-per-hour minimum wage. As it has grown, Fight for $15 has amassed an eclectic group of low-wage workers. The impact of a Fight for $15 strike held in November 2016 rippled across the service sector, with workers walking off the job at airports, restaurants, child care centers and other job sites.
What happens to a striker’s job?
Because striking is a legally protected action, workers have some job protections when they go on strike. How much protection depends on the purpose of the strike. The purpose of a strike can be categorized in a couple of ways:
Economic strikes include workers who go on strike over demands like higher wages, shorter hours and better working conditions. When workers strike for economic reasons, they can’t be fired by their employer, but they can be replaced. If an employer hires permanent replacements, strikers don’t automatically get their jobs back at the end of the strike. Instead, strikers are given the first chance to be rehired if a job opens with the employer.
The threat of being replaced during an economic strike is real. Since the 1980s, when the Reagan administration took a harder stance against organized labor, employers followed suit and more often have used or threatened to use their right to permanently replace workers. However, that isn’t without consequences. Researchers have noted that replacing striking workers can escalate tension and prevent a resolution of the strike.
Also, employers who hire permanent replacements could have their motives closely scrutinized. The National Labor Relations Board, which protects workers’ right to collective bargaining, issued a ruling in 2016 that said Piedmont Gardens, a care facility in Oakland, California, committed an unfair labor practice by replacing strikers because that action was motivated by a desire to punish strikers and avoid future strikes, which violates workers’ right to strike.
Unfair labor practice strikes include workers who go on strike because their employer broke the law. Common unfair labor practices by an employer include interfering with employees’ right to organize or join a union or refusing to bargain in good faith with a union. When workers strike over unfair labor practices, they can’t be fired and they can’t be permanently replaced. Employers can hire temporary replacements during an unfair labor practice strike, but once the strike ends, workers are entitled to have their jobs back.
However, there are some instances when a strike violates the law. When that happens, workers’ jobs aren’t protected. Here are a few cases where the right to strike is limited:
Workers at health care institutions must give 10 days’ notice before going on strike.
Workers can’t go on strike to compel an employer to commit an unfair labor practice or to support an unfair labor practice committed by a union. For example, workers can’t use a strike to pressure an employer to fire someone who’s not paying union dues.
Even if their strike is legal, workers could lose their jobs if their behavior during the strike violates the law. For example, workers who strike can’t physically interfere with people attempting to work or threaten workers who aren’t striking.
Being part of a union during a strike can add a layer of job protection. During a strike, when a union and employer reach an agreement on a new contract, it’s common for the union to insist that all striking workers be reinstated to their original jobs. Knowing that condition would likely be part of the contract, employers are unlikely to hire permanent replacements for workers who strike.
Do workers get paid while on strike?
Workers are in a tough spot financially while on strike. They don’t collect a paycheck and, in most states, they don’t qualify for unemployment benefits, according to LawInfo, a legal services site owned by Thomson Reuters. One exception is in New York, where striking workers can collect unemployment if a strike goes longer than 14 days.
Unions typically manage a strike fund — a pot of money used to keep workers afloat during a strike. Union members may be entitled to a certain amount from the strike fund, depending on union rules.
Workers who receive medical benefits through their employer may lose coverage if their employer stops paying its share of their insurance premiums. Workers on strike can maintain coverage under COBRA — a federal law that requires employers to temporarily extend coverage after employment ends. But, in that case, striking workers are on the hook for their insurance premiums during a strike. Some unions can afford to help members cover these added costs.
How long do strikes usually last?
In 2022, the majority of strikes lasted less than five days, according to Cornell’s Labor Action Tracker. About a third of strikes lasted more than five days, including some that went on for more than a month.
That’s a drastic change from earlier decades. In 1979, which is the last year comprehensive work stoppage data is available from the Bureau of Labor Statistics (BLS), strikes lasted 32 days, on average. And half of strikes lasted more than 16 days.
The decline of strikes in the U.S.
Strike activity has declined dramatically in the U.S. in recent decades.
In 2022, U.S. workers were involved in 424 work stoppages, which included 417 strikes and seven lockouts, according to Cornell’s Labor Action Tracker.
🤓Nerdy Tip
A lockout is a work stoppage initiated by an employer. It prevents workers from returning to work until they agree to certain terms.
Compare that to 1979, when 4,827 work stoppages were recorded, according to BLS. That year, work stoppages involved 1.7 million workers. At the time, that was typical. BLS stopped tracking work stoppages involving fewer than 1,000 people in 1980, making 1979 the last year for which comprehensive data is available. But data going back to the 1930s shows it was normal for millions of U.S. workers to engage in thousands of strikes per year.
Strikes have declined because striking has become riskier. Since the 1980s, employers have been more forceful with unions by threatening to replace strikers. At the same time, union membership became less common as the U.S. economy shifted away from traditionally unionized industries like manufacturing. In 1983, about 20% of U.S. workers belonged to a union. Now, it’s just over 10%, according to BLS.
A resurgence of strikes in the U.S.
Despite the long-term decline, strikes appear to be having a resurgence now, according to Johnnie Kallas, a Ph.D. candidate in labor relations at the Cornell University ILR School. Kallas leads the Labor Action Tracker project.
Without comprehensive strike data from BLS, historical comparisons are tricky. But the Labor Action Tracker shows work stoppages increased by 52% from 2021 to 2022. The number of workers involved in work stoppages also increased last year, from 140,000 in 2021 to 224,000 in 2022.
In part, the uptick in strike activity stems from the pandemic, Kallas says. Since COVID-19 shut down businesses, maxed out supply chains and made in-person interactions riskier, there have been numerous examples of frontline workers organizing strikes over staffing issues and safety procedures. Those concerns spanned multiple fields, including education, health care, trucking and food service.
“The pandemic had a huge impact on labor activism and strikes in the United States,” Kallas says. “Not that these issues didn’t exist beforehand, but I think they were exacerbated.”
More generally, organized labor seems to be having a moment. The number of unionized workers in the U.S. is on the rise again, according to BLS. And workers at well-known companies like Starbucks, Google and Apple are leading unionization efforts. Meanwhile, public support for unions is at its highest point since 1965, according to an August 2022 Gallup Poll. The survey found that 71% of Americans approve of labor unions. That figure has climbed steadily since 2009, when just 48% of Americans approved of labor unions.
With housing becoming more and more unaffordable in the U.S., a new Zillow analysis shows that residents in the capital, Washington D.C. have the most cash left over after paying their mortgage.
Zillow’s
study assumes the median annual gross income and mortgage payment for
each of the 35 largest housing markets in the U.S. Its data shows
that residents in the capital have almost $7,000 of their monthly
incomes left to spare after paying for their home. That compares to
second place San Jose, whose residents have on average, $6,800 after
paying their mortgage repayments.
At
the opposite end of the scale, residents of Los Angeles and Florida
struggle the most. In LA, homeowners there average $3,450 per month
left over, which is slightly less than those living in Miami, Tampa
Bay and Orlando. However, renters in those three Florida cities have
the smallest amount of leftover cash after paying their monthly rent.
Unfortunately
for LA residents, they’re left with even less when the substantial
income tax rates of California are taken into consideration. Those
taxes cut deep into whatever income is left over for other expenses,
such as food, transportation, child care and education costs.
“In
our quest for happiness, or at least satisfaction, we must accept
tradeoffs,” said Skylar Olsen, Zillow’s Director of Economic
Research. “A good-paying job with career growth potential often
comes with expensive housing, leaving less for life’s other
essentials such as taxes, child care, transportation, medical
services, food and leisure. Finding that balance where housing costs
leave a comfortable amount of spending money is tricky, especially
when the prices of life’s non-housing essentials also vary widely by
market.”
The
bad news for buyers is that affordability overall has worsened in the
last year due to rising interest rates and accelerating home value
appreciation over the last year. In November, the average 30-year
fixed rate mortgage had risen to 4.94 percent, up from 3.95 percent
at the start of the year. Fortunately, rates have now dipped slightly
to below 4.4 percent, while home value appreciation is finally
beginning to cool in many markets. That could lead to better
affordability in recent months, Zillow said.
Other
data from Zillow’s study shows that a mortgage payment on the
typical home in the U.S. required 17.5 percent of the median income
in Q4 2018. This is up from 15.4 percent in the last quarter of 2017
but still below the historic average of 21 percent from the late
1980s and 1990s. Using this traditional measure of housing
affordability, less expensive Midwest markets such as Pittsburgh, St.
Louis and Cincinnati top the list.
The
typical U.S. renter spent 27.7 percent of their income on rent
payments in 2018. This is down slightly from 28.1 percent in 2017,
but higher than the historic average of 25.8 percent. Rent payments
accounted for more than 30 percent of the median income in 13 large
U.S. metros, widely considered the standard for unaffordable housing
costs.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Yes, we’ve all heard it. Buying a home today might seem like the most unaffordable, and therefore impossible, it’s ever been. Home prices are near record levels, pushed up by bidding wars erupting on anything well-situated and move-in ready. Plus, mortgage rates are nearing 7%.
But here’s the thing: The baby boomers had it worse.
In May of this year, the typical buyer spent just under a third of their household income, about 32.8%, on housing. As uncomfortable as that might be, it’s not even close to how much buyers plunked down in the early 1980s.
In 1981, the same year the AIDS virus was identified, the Iran hostage crisis came to an end, and “Raiders of the Lost Ark” topped the box office charts, homebuyers that September and October spent 51.3% of their household income on their mortgage payments.
Let that sink in for a moment.
Furthermore, that percentage doesn’t even include what they paid for utilities, property taxes, insurance costs, and homeowners association fees.
Buying a home is “not as unaffordable as it’s ever been,” says Realtor.com® Chief Economist Danielle Hale. But, “in the grand scheme of things, housing is pretty unaffordable right now.”
To figure out how affordable buying a home has been over the past 50 years, the Realtor.com data team analyzed data going back to 1973. We looked at monthly existing single-family home prices from the National Association of Realtors®, weekly mortgage interest rates for 30-year fixed loans from Freddie Mac, and median annual household income from the U.S. Census Bureau. Then we calculated the typical mortgage payment of a buyer taking out a loan on the median-priced home and what percentage of their household income that would eat up.
The analysis doesn’t factor in regional price differences, new construction, or the percentage of income that individual buyers spent on homes.
“If you go back in history, you can find a period where housing is more unaffordable than it is now,” says Hale. “But you have to go back almost 40 years.”
Why today’s buyers wouldn’t want to purchase a home in 1981
In the fall of 1981, homes were cheap by today’s standards.
The typical single-family home cost just $66,125—about six times less than the cost this past May, according to the most recent data from NAR.
However, the typical household was bringing in only about $19,074 in 1981, according to U.S. Census Bureau data. And mortgage rates topped 18% that fall. (And you thought 7% was rough.)
Those turbo-sized rates meant that 99.5% of a buyer’s first year of mortgage payments was going toward just the towering amount of interest on the loan. The buyer didn’t pay down 10% on the principal of the balance until the 18th year of the loan, assuming the buyer didn’t refinance—which most buyers did. (This calculation includes a 20% down payment.)
Today’s average family is earning about $73,505 a year. But in May, they were contending with median existing-home prices of $410,100 and mortgage rates hovering in the mid-6% range and which have since risen to the high 6% territory. About 85% of their first year’s mortgage payments is going to interest.
One important difference is that instead of waiting nearly two decades to have 10% of their principal paid off, they achieve that milestone by year seven.
“Mortgage rates play a really substantial role in how affordable housing is at any time, especially since so many buyers buy with a mortgage,” says Hale.
Uncomfortable similarities between 1981 and 2023
There are a few similarities between then and now. Inflation was soaring in the early ’80s, causing the U.S. Federal Reserve to hike interest rates. (Sound familiar?) The nation was also in a full-blown recession in 1981. Fast-forward 42 years, and the nation appears to be flirting with another downturn.
The number of home sales slowed in the early 1980s as well as in this post-pandemic housing market as fewer folks can afford to buy due to higher mortgage rates.
Then, as now, most of those purchasing homes earn more than the median income—unless they had very generous family members, stock options, or trust funds. Or they’re existing homeowners who can put the equity they built in their last home into their new one.
“Boomers have been saying things were harder when we were young for a long time. And in some respects, they are right,” says Hale. “But in other respects, they don’t have the same amount of student loan debt and child care costs that young people have today.”
Plus, once mortgage rates fell, most folks who purchased homes in the early 1980s had refinanced their loans to lock in the new rates and “drastically” lower their monthly mortgage payments. By 1986, rates had fallen back down to the single digits.
Recessions and pandemics may be good times to buy homes
As counterintuitive as this may seem, recessions may be financially advantageous for buyers to purchase homes—if they remain employed and have the funds to do so. That’s because interest rates usually (but not always, as the early 1980s demonstrated) fall during economic downturns. That makes homebuying more affordable.
Over the past 50 years, homes were the most affordable as the country climbed out of the Great Recession. In early 2012 and 2013, buyers were spending about 14%—or less—of their income on a home. That’s because mortgage rates were below 4%.
The same thing happened in the early days of the pandemic. The economy ground to a halt as stay-at-home orders proliferated and mass layoffs ensued. To stimulate the economy, the Fed cut interest rates and mortgage rates fell below 3%—for the first time ever.
Those low rates triggered the big run-up in prices and offset those gains. Since buyers were spending less on interest, they could afford to purchase more house. The result? In spring 2020, buyers were spending just under 18% of their income on housing.
“Affordability is one of the factors that kicked off the buying frenzy that we saw in the early part of the pandemic,” says Hale.
It wasn’t until mortgage rates climbed above 4% in March 2022 that buyers began to get priced out. That month they spent just under 25% of their income on housing. As rates ticked up and affordability worsened, more buyers left the market and fewer homes went up for sale (as sellers didn’t want to give up their low rates).
The situation has only gotten worse, with buyers spending nearly a third of their income on housing in May.
“When housing is unaffordable, it’s very tempting to stretch your budget,” says Hale. But with inflation, rising property taxes, and high energy bills, “now’s probably not a good time to do that.”