More than one in five adults age 65 and older reported not taking medications as prescribed due to cost, according to a 2023 study published in JAMA Network Open.
There’s help available, but many beneficiaries might not be aware of their options.
“Far too many people don’t know that there are resources out there to help them,” says Amy Niles, chief mission officer at the PAN Foundation, a nonprofit organization that helps people get needed prescription drugs and medical treatments.
Here are three potential resources that might help you or a loved one afford medications with Medicare Part D.
Still deciding on the right carrier? Compare Medicare Part D Plans
1. Government assistance programs
If you qualify, Medicare’s Extra Help program covers all costs for your Medicare Part D plan and covered prescription drugs, with the exception of copays of up to $11.20 per drug in 2024.
The eligibility requirements for Extra Help are fairly strict. The income limit is $22,590 per year for an individual or $30,660 for a married couple in 2024, which is 150% of the federal poverty level. There are also limits on resources, the label given to assets you own and convert to cash to support yourself if needed, such as bank accounts, retirement funds, stocks and bonds.
Extra Help enrollment isn’t automatic, and many people might be missing out because they haven’t applied. “Three million people are eligible for the program but not yet enrolled,” according to a February 2024 press release from the Centers for Medicare & Medicaid Services.
“Medicare Part D beneficiaries should apply for all Medicare Savings Programs, including Extra Help,” Michele McCourt, executive director of CancerCare’s Co-Payment Assistance Foundation, said in an email.
Most states also have a pharmaceutical assistance program and/or some kind of discount prescription program. Benefits and eligibility requirements vary, but it’s a good idea to look into what’s available where you live.
2. Help from foundations
Nongovernmental organizations can help if you or a loved one are struggling to afford health care. For example, the PAN Foundation offers assistance across about 80 different disease funds, Niles says, and the “overwhelming majority” of people who receive its financial assistance are Medicare beneficiaries.
These charitable foundations might be more flexible on eligibility requirements than government programs. For example, Niles says the PAN Foundation usually can offer assistance to people at or below 400% to 500% of the federal poverty level. (500% of the FPL is $75,300 per year for an individual or $102,200 for a married couple in 2024.)
If you’re not sure about Extra Help eligibility, McCourt said it may be best to apply for Extra Help and help from foundations at the same time. (If you find you’re eligible for Extra Help, contact the foundations to let them know you no longer need assistance, she suggested.)
Foundations often offer help with more than just prescription drug costs, too. Assistance might be available for health insurance premiums, transportation, lodging, childcare or pet care, for example, as well as counseling, navigating insurance rules, and referrals and coordination with other patient advocacy and assistance groups.
The PAN Foundation, Accessia Health and CancerCare are three charitable organizations that might be able to help patients struggling with costly prescription drugs or other medical expenses. Other options include the HealthWell Foundation, Good Days and the National Organization for Rare Disorders.
The foundations’ websites offer details on eligibility and application processes for their individual programs.
3. A new $2,000 out-of-pocket cap
Medicare Part D will have a new $2,000 out-of-pocket cap on copays, coinsurance and deductibles for covered prescription drugs starting in 2025. But many beneficiaries might not know this change is coming.
Only about 40% of registered voters age 65 and older are aware of the law capping out-of-pocket prescription drug costs, according to an April-May 2024 tracking poll by KFF, a health policy nonprofit.
“The $2,000 out-of-pocket cap will have a significant impact on beneficiaries,” Anna Brown, vice president of marketing and communications for patient assistance nonprofit Accessia Health, said in an email.
“However, it’s important to acknowledge that while the $2,000 cap increases affordability for Americans, we know that many will still struggle to afford even this reduced out-of-pocket maximum, especially those with chronic and rare medical conditions,” Brown said.
Both Brown and Niles indicated that their organizations are committed to continued advocacy, education and direct support to make Medicare prescription drug coverage even more affordable in the future.
When electioneering, the best pledges are catchy enough to get stuck in a voter’s head. During this election, “no tax on tips” seems to be the phrase fitting that bill.
Both presidential candidates are embracing the promise to exempt workers from paying taxes on their tips. But the problem with no-tax-on-tips proposals, experts say, is that they’re clearly a bid for votes rather than a substantive solution to address the fundamental needs of tipped workers.
“This wouldn’t help very many workers, and it could actually be very harmful to millions more, with the real benefits of this policy change going to employers and the wealthy at the expense of working people,” says David Cooper, researcher from EPI Action, a nonpartisan research and advocacy organization.
How a no-tax-on-tips promise entered the election
On June 9, former President Donald Trump made a promise to end taxes on tips in front of service workers in Las Vegas. Last weekend, in Las Vegas, Vice President Kamala Harris made a similar pledge. It’s no coincidence that both candidates made the announcement in Las Vegas — leisure and hospitality is the dominant industry in the metro area, Bureau of Labor Statistics data shows.
On Monday, White House press secretary Karine Jean-Pierre said that President Joe Biden also supports eliminating taxes on tips for service and hospital workers, as well as raising the minimum wage.
The policy is undeniably appealing for tipped workers and the unions that represent them. After all, who doesn’t want a tax break when they can get it? Experts say the message to voters may be effective, but the policy is less likely to be.
“I’d say, thumbs down to the policy proposal; it’s bad tax policy,” says Kyle Pomerleau, a senior fellow studying federal tax policy and reform at American Enterprise Institute, a right-leaning think tank.
How do tips factor into wages?
Tipped workers are some of the most visible workers: They’re taking your coffee order, cutting your hair, serving your meals in restaurants, delivering your groceries and ridesharing you around town. And yet, the Budget Lab at Yale University estimates there are only about 4 million workers in tipped positions in 2023 — about 2.5% of the entire U.S. workforce.
The most typical tipped work is in the service and hospitality industry. Tipped workers also tend to be younger than the rest of the working population — 20 to 34 years old, according to Yale Budget Lab.
In order to qualify as a tipped worker, you must earn more than $20 per month in tips. In tipped positions, workers must receive a subminimum wage, also known as a cash wage, of $2.13 per hour. A subminimum wage is combined with tips in order for workers to earn at least the federal minimum wage of $7.25 per hour. If an employee earns a subminimum wage plus tips less than $7.25 per hour, an employer must make up the difference.
There’s also something called tip pooling that’s often done in restaurants; it’s where the front of the house (servers and bartenders) share their tips with each other, as well as with the back of the house (such as cooks and dishwashers). In this scenario, all employees who receive pooled tips — including the workers who earn the tips — must make at least the federal minimum wage, according to the Department of Labor.
It’s unclear how often restaurants properly adhere to wage rules because tipping is notoriously underreported. Although, that’s less of an issue now since most people pay electronically and don’t leave cash tips as often anymore, says Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center at the Urban Institute.
How do taxes on tips work?
Median weekly wages, including tips, are $538 among tipped workers, compared to a median of $1,000 among non-tipped workers, according to 2023 estimates by Yale Budget Lab. Many tipped workers earn so little they already aren’t required to pay federal income taxes; Yale Budget Lab estimates this is the case for about 37% of tipped workers.
It’s likely only a small sliver of the tipped worker population would get the tax advantage that Trump and Harris propose — and that’s without knowing what specific income limits would be set by either candidate’s plan.
“Think about somebody who is a server at ‘Bob’s Diner’ — it has a $9.95 special and [the server] is going to get two bucks,” says Gleckman. “If you’re a server at some fancy downtown steakhouse where dinner is $200, you’re going to get 40 bucks, right? So for those higher income servers, this [policy] can make some difference. But for most people, it won’t really matter at all.”
There’s another important distinction about tips and taxes: Even when workers don’t have a federal income tax obligation, workers and their employers must pay federal payroll taxes, which fund Social Security and Medicare programs. That also means they must continue to report tips, even if federal taxes on tips are eliminated; also, the proposals would not affect state income tax requirements.
Neither Trump or Harris has specified whether their proposals would apply only to the federal income tax. But if the No Tax on Tips Act, introduced by Sen. Ted Cruz (R-Texas), is any indication, the exemption would likely only apply to federal income taxes.
How much would no-tax-on-tips save a typical tipped worker?
Tip earnings are hard to characterize since the amount varies drastically based on the type of service that workers provide, as well as local minimum wage laws. But the Tax Foundation offers an example: Say a server earns $19,000 per year in wages plus $15,000 in tipped income. Their adjusted gross income is $34,000. They take a standard deduction of $14,600, which leaves them with $19,400 in taxable income. Under this example they owe $2,096 in federal income taxes.
With a no-tax-on-tips policy in effect, their adjusted gross income is $19,000 since the $15,000 income in tips isn’t considered taxable. They take a standard deduction of $14,600, which leaves them with $4,400 in taxable income. Under this example, their tax liability is $440. It’s the difference of $1,656 from the previous example.
As the Tax Foundation points out, a cashier who makes the same $34,000 — without tips — would have the same $2,096 federal tax liability in either scenario, and so would be paying vastly more in taxes than the server under a no-tax-on-tips policy.
Experts say no taxes on tips is bad policy
Suffice to say, tax and wage experts are unimpressed with the no-tax-on-tips proposal.
“This wouldn’t help very many workers, and it could actually be very harmful to millions more, with the real benefits of this policy change going to employers and the wealthy at the expense of working people,” says Cooper.
Here are some reasons why experts say exempting tips from taxes could have negative repercussions, depending on how the policy is structured.
Social programs and other tax benefits could be impacted
If a no-tax-on-tips proposal includes an exemption for the payroll tax in addition to the income tax, it could impact both worker eligibility for Social Security and Medicaid, as well as the solvency of the program itself, says Cooper.
This scenario isn’t necessarily likely. Even though Trump has not specified if his proposal would apply to both the federal income tax and the payroll tax, Cruz’s No Tax on Tips Act applies the exemption only to the federal income tax. It’s difficult to see Harris applying the exemption to the payroll tax.
But depending on how the law is written, no-tax-on-tips could make it more difficult for workers to get other tax benefits like the earned income tax credit or the child tax credit, experts say.
“If you’re a household with children, those credits phase-in with earned income, meaning that they are larger the more income you earn, up to a certain point,” says Pomerleau. “But if you were to structure this tax exemption as an exemption from adjusted gross income, it would directly interact with the earned income tax credit in the child tax credit and reduce those benefits for households.”
No matter what, says Pomerleau, no-tax-on-tips would add tax complexity for a population of tax filers that, generally, do not have access to accountants to help them through the process. That could result in more workers not filing taxes or not being able to access the benefits they are eligible for.
High earners could find a loophole
A tax exemption on tips leaves open the possibility of exploiting the system. Some in high-income positions like lawyers, for example, could restructure how their earnings are reported to avoid paying taxes on a portion of their income.
“You could envision a lot of scenarios where this would be really grossly abused by highly paid individuals,” says Cooper.
The Harris campaign told The Washington Post that, under her plan, the tax exemption would only apply to workers who earn below a certain threshold in select industries. This would prevent high earners in nontraditional tipping positions from gaming the system. There is currently no bill from Democrats in Congress that matches Harris’ plan.
Trump’s proposal and the No Tax on Tips Act from congressional Republicans doesn’t narrow industry eligibility or impose income limitations.
It could reduce employers’ need to raise wages
The tax benefit presents a double whammy benefit to owners: a tax benefit that appeals to workers and an opportunity to save money by shifting the pay burden from owners to consumers.
“It’s a win-win for restaurant owners, hotel owners, like, for example, Donald Trump,” says Gleckman. “But it’s much more ambiguous and much riskier for tip workers, particularly low-income workers.”
Cooper says this policy won’t incentivize employers to raise raises for workers because there’s a tax benefit inherent to the job. But it could incentivize businesses to reclassify certain positions as tipped occupations.
“The tipping system, as it currently exists, is rife with wage theft and discrimination,” says Cooper. “It opens up workers to abuse from customers and colleagues because they feel like they have to tolerate bad behavior, lest they put their kids at risk. So this [policy] would grow a system that is problematic in a lot of ways and spread it to more occupations. That’s not something that we should be incentivizing.”
The deficit would increase, although not substantially
Tax cuts lead to a decline in revenue, which could, over time, exacerbate the federal deficit; it’s currently about $1.52 trillion, according to the U.S. Treasury. The Committee for a Responsible Federal Budget estimates the cost of exempting tips from federal income tax would be $100 to $200 billion over a decade. If tips are also exempted from payroll taxes, the total could run to $250 billion.
If the policy makes tips exempt from the payroll tax, it would have broader repercussions for Social Security and Medicaid programs, experts say.
“These programs are already facing a fiscal shortfall and will need to be dealt with, in as little as ten years,” says Pomerleau. “If they were to remove $38 billion, potentially from the face of Social Security and Medicare, I would accelerate this problem.”
It could exacerbate tipping backlash
As the CRFB notes, what’s not included in its calculations are changes in tipping behavior, which could result in consumers giving less than they do now if they perceive tipped workers as getting an unfair tax advantage.
A backlash to tipping culture has already resulted in 7% lower tipping among service-sector workers from November 2022 to November 2023, according to a payroll analysis by Gusto, a payroll provider.
It could fuel worker resentment
On the flip side, excluding certain tipped jobs by field or income could stir the pot among workers and the unions that represent them.
Cooper says, “Why would we be giving preferential income tax treatment to this very small subset of workers when there are lots of other hard working, low-paid workers — people providing daycare, childcare, eldercare — that this would do nothing for?”
Gleckman says the policy violates a “cardinal rule of good tax policy,” which is to tax people making the same income at the same level. “I’m not sure I quite understand why a low wage worker somehow should enjoy more benefits than a low wage worker of another kind who’s getting the same income,” says Gleckman. “If you really care for a bunch of low wage workers, there are plenty of other things you could do.”
Unions and businesses groups support no-tax-on-tips
Despite criticism of the no-tax-on-tips proposal, it would benefit workers who are eligible. Adding limitations by industry and income could prevent the exemption from being a regressive one.
Shortly after Harris’ announcement, Culinary Union Local 226 in Nevada endorsed Harris for president and lauded the proposal without acknowledging Trump’s. The union, along with the Bartenders Union Local 165, represents 60,000 workers in Las Vegas and Reno. The Culinary Union argues that the tax exemption could help millions of workers that earn a subminimum wage.
“The fact that many companies pay tipped workers across the country $2.13 an hour is outrageous and ending taxes on tips for service and hospitality workers would significantly help millions of workers provide for their families, including in Nevada,” the union wrote in its press release endorsing Harris.
Businesses that employ tipped workers also support the plan. At least, Cruz’s plan, which would not limit the exemption by industry and income. Two of the biggest associations for the top tipped industries — the National Restaurant Association and the Professional Beauty Association — both endorsed Cruz’s proposal.
“Tipped employees are a critical part of the restaurant industry, and anything that strengthens their economic condition is a positive for them,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association in a press release announcing Cruz’s bill. “The ‘No Tax on Tips Act’ would provide immediate tax relief for more than 2.2 million restaurant employees and their families, putting more money in their pockets at a time when we’re all feeling the squeeze of higher prices.”
Ending the subminimum wage would pack a bigger punch
During the campaign rally in Las Vegas last weekend, when Harris made her promise to end tax on tips, she also said she would raise the minimum wage. What she didn’t promise to do is eliminate the subminimum wage, which would have a bigger impact on tipped workers.
“Why not do something like raise the minimum wage if you really want to improve outcomes for tipped workers in the United States?” says Cooper.
The federal minimum wage for all workers has been $7.25 per hour since 2009. However, 30 states plus the District of Columbia have set minimum wages above that amount. Again, the federal subminimum wage is $2.13 per hour. Right now, 36 states have set minimum wages for tipped workers below the federal minimum wage of $7.25 per hour.
The tipped workers who earn the most, nationwide, are in Los Angeles ($16.78 per hour); Seattle ($17.25 per hour); and New York City, where tipped workers earn $15 per hour with the exception of delivery workers, who earn a minimum of $17.96 per hour.
Other places have eliminated the subminimum wage practice altogether. So far six states have banned subminimum wages for tipped workers, including Alaska, California, Minnesota, Montana, Oregon and Washington.
“It is outrageous that over a million workers in this country are not guaranteed a fair minimum wage in 2024,” the Culinary Union 226 wrote in a release endorsing Harris’ proposal. “Employers across the nation need to take responsibility for paying a real minimum wage and Congress must ensure it.”
Beyond raising the minimum wage, there are other levers that could be pulled to help low wage workers, experts say. That includes expanding income supports like the child tax credit, the earned income tax credit or Medicaid.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how to negotiate for a higher salary and better benefits when you get a job offer. Plus: tips for boosting your earning potential.
What are the best ways to negotiate for a higher salary? How can you elevate your earnings and overall compensation package? Hosts Sean Pyles and Alana Benson discuss strategies for increasing your income and negotiating for a raise to help you understand how to navigate salary discussions confidently and effectively.
Alana speaks with Catherine Tinsley, Raffini Professor of Management at Georgetown University’s McDonough School of Business, about who should make the first offer, how to leverage market data, and the challenge of overcoming emotional hurdles. They also discuss the benefits of changing jobs for higher salary potential, practical advice on boosting your earning potential, and why understanding power dynamics and perceived expertise could help you come out ahead in your next negotiation.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
So, my friends, what are you worth? Or at least what are your skills worth? That’s the question you have to ask yourself every time you ask for a raise, or mull an offer from a potential employer. Today we’re looking at strategies for increasing your income through negotiation.
Catherine Tinsley:
The most powerful anchor in any negotiation is the first offer that’s thrown out there. And so if you are anchoring the negotiation, they are playing your ball game. And so that’s why you want to be making the first offer.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Alana Benson:
And I’m Alana Benson.
Sean Pyles:
This is our third and final episode of our nerdy deep dive into investing in your income. Basically finding ways other than cutting back on spending to boost your bottom line.
Alana Benson:
Yeah, Sean. So, as we’ve been talking about throughout the series, sure, you can cut back on some of the daily indulgences you might be able to do without, but cutting back five or 10 bucks here and there, even daily, is unlikely to make you rich, or even to be able to retire. What really makes a difference is having more money coming into your bank account. And as we’ve discussed, there are a lot of ways to do that, but one of the best ones is by getting a bigger paycheck.
Sean Pyles:
Yep. And of course there are a couple ways that you can do that. You could ask for a raise or some other form of compensation from your current employer, or you could get a new job.
Alana Benson:
And here is why that second option is the real winner. So, stay with us. There are a lot of numbers here, but I promise it is worth it. US inflation in December 2023 was 3.4%, and according to WTW’S December 2023 Global Salary Budget Planning Report, average salary increases in 2023 were 4.4%. That leaves you with essentially a 1% raise if you were to stay at the same company, if you’re accounting for inflation. On the other hand, if you change jobs, you can often expect an increase between 10 and 15%, or even up to 30% or more, if you play your cards right.
Sean Pyles:
Okay. So, the key to getting any of that, whether you’re asking for a raise or seeking out a new job, is that you’re likely going to have to negotiate. And that’s a word that gives a lot of folks hives.
Alana Benson:
Hi, it’s me. I’m the one with hives. Do you remember the first time you did a salary negotiation, Sean?
Sean Pyles:
Yeah, it actually was at NerdWallet, and it did make me really uncomfortable. I knew that I deserved more money, but I just didn’t know the right process for having that conversation. My boss and I worked it out, but it wasn’t enjoyable. I can tell you that. Alana, what about you?
Alana Benson:
Yeah, I believe it. I alluded to this in the first episode, but at my first job negotiation, I was told that I was greedy and selfish. I was told that it was completely unprofessional to negotiate even though I’d googled this within an inch of my life the night before. My boss told me that they would forgive me because I was, quote, “young and didn’t know anything about the job world.” The good news is that I left that job soon after and close to tripled my salary. But yeah, I have a lot of emotional baggage when it comes to negotiating, but that’s part of why I’m so passionate about this topic. I want people to know that there are some really specific ways that we can make this whole negotiation process easier on ourselves, and we are going to hear about those today.
Sean Pyles:
All right, well, we want to hear what you think too, listeners. To share your thoughts about ways to boost your income, leave us a voicemail or text the Nerd hotline at (901) 730-6373. That’s (901) 730-NERD, or email a voice memo to [email protected]. So, Alana, who are we hearing from today?
Alana Benson:
Today we are talking with Catherine Tinsley. She’s the Raffini Professor of Management at Georgetown University’s McDonough School of Business. She’s an expert and teaches courses in negotiation, so she’s going to walk us through some of the do’s and don’ts when you’re asking for more money.
Sean Pyles:
That’s coming up in a moment. Stay with us.
Alana Benson:
Cathy, welcome to Smart Money.
Catherine Tinsley:
Thank you. It’s a pleasure to be here.
Alana Benson:
I just kind of want to start us off with talking about negotiation in general. Why is it so difficult for a lot of us to negotiate, whether that’s at a job for more money, with our partner for household equity? Negotiating is just a really difficult thing to do. So, why is that?
Catherine Tinsley:
Yeah, it’s true, and I think there are a couple of things that tend to block us. The one thing to think about when you’re negotiating with a job, or you’re negotiating with a friend, or you’re negotiating with a partner is that you know it’s going to be a repeated interaction. So, there’s some sort of interdependence. You may not want to ask for something if your fear is going to trigger some sort of negative response. Maybe you’ll get your way now, but down the line, you won’t get something that you would’ve. So, the fact that it’s this repeated interaction over time tends to make people a little bit more wary of negotiating. I think another reason, particularly at a job, is that there’s a presumed power difference. Now, you’ll notice that before I said with the repeated interaction, there’s an interdependence.
Interdependent means that there’s actually power on both sides, but we tend not to think of the power that we have. We tend to think of this big company as having the power, and we don’t have any power. So, there’s sort of a presumed power asymmetry. And then the other thing I think that goes on is that there’s sort of a presumed information or expertise asymmetry that they know a lot more than you do. So we’re just a little bit wary of engaging with someone where we feel like we might be at a disadvantage.
Alana Benson:
That’s such a great point about the power dynamic because I’ve definitely felt that going into things where you just feel like you’re the dumbest girl in school, as I like to call it. Everyone else knows all this stuff, but that really isn’t necessarily true. In reality, these jobs are looking at you because of what you know, and you are an attractive candidate because of that.
Catherine Tinsley:
Exactly. And so that’s one of the things that you have to remind yourself is that power is the inverse of dependency. So, the more that we are dependent, the less power we have, but it’s all about relative dependency and relative power. To the extent that you’re an attractive candidate or you’re an attractive worker relative to their other alternatives of other workers, then you do have power. So, they have power to the extent that you really want to work for them, and there are no other attractive job opportunities for you. But you have power to the extent that you are a more attractive candidate than other people are, or you’re a more attractive worker, you’re a good worker.
Alana Benson:
I want to kind of get into the nitty-gritty here of when it comes to negotiating, and I want to first make the differentiation between negotiating at your current job to get a raise or negotiating for a new position at a different job, or even leveraging a new offer at your old job. They’re all so different. How would you start the process if you were going to just try to negotiate for a raise at your current job?
Catherine Tinsley:
There are some contextual differences in all of the cases that you just mentioned, but there are a lot of common themes. What I might suggest that we do is actually talk about some of the common themes first because it makes for a little bit of a checklist, and I want people to be able to think, okay, first I do this, then I do this, then I do that. Because I think breaking down the process might help people a little bit.
Alana Benson:
Yeah, definitely.
Catherine Tinsley:
The first thing is that you have to negotiate with yourself. What’s really important to you? Yes, salary is important, but what else? These could be non-monetary things like freedom, flexible work arrangements, promotional opportunities, job assignments, those things that could be important to you. Or they could be other monetary things that are not salary, like performance bonuses, training bonuses, reimbursements, memberships, childcare, student loan help, all these kinds of things that we tend to not think about as directly related to the negotiation, but they really are, and they can be incorporated. One of the classic moves that you want to do in negotiation is to open up the negotiation space. You don’t want to make it just about salary if you can because in making it about multiple issues, you’re giving an opportunity now to create trade-offs, which is kind of going to bring me to my second thing. So, my first thing is to negotiate with yourself. What are all the kinds of things that you want, and how important are each one of those things for you?
Alana Benson:
And maybe write out a list of that kind of thing.
Catherine Tinsley:
Yeah, exactly. The second thing is to do your homework. You want to think about the other party and think about what is important to them, and what might be important to them other than money. This kind of pivots you from a demand approach to a mutual problem-solving approach, which people feel a lot more comfortable with. If you can think of yourself as part of a team with the other party that’s trying to mutually solve this puzzle so that both of you can get most of your way, I think that helps people psychologically. So, how are you helping them to meet their needs? And then the other way that you should be doing your homework is that you should be looking at comparables, at benchmarks. You should be looking at internal and external labor market standards. For example, what you’re asking for in terms of salary, and information is really gold here.
To the extent that you can find out any information about what peers are making, about what people in similar companies are making, what people with your same education that have done a similar type of job, any information that you can find out in the marketplace, both in the internal labor market, by which I mean within the company, and the external labor market. That’s really helpful.
Alana Benson:
And that’s the kind of research that you can do on a site like Glassdoor, LinkedIn, other places that have those types of comparison data, correct?
Catherine Tinsley:
That’s right. And if you are currently employed, you can probably ask some of your friends. I know that a lot of people think, “Oh, my gosh, asking about salary is so confidential,” but there are big pushes now to actually make salary data publicly available in many contexts. You would actually be surprised if somebody is a good friend, too. They’re probably going to be sharing some information with you.
Alana Benson:
Yeah, I think that it’s so immensely important to have those conversations with people at your company, with people in your industry, because the only people that benefit from salary conversations being taboo is employers. That is incredibly unhelpful to employees, and incredibly unhelpful to the people trying to make a fair wage. By saying, “Oh, it’s culturally inappropriate,” that is very, very beneficial to one of those parties and very detrimental to the other party.
Catherine Tinsley:
Right. And so that should help people to go ahead and ask the question. It should help people to go ahead and answer the question, too, for their friends. One of the things I say to my students, I say it to my kids, I say to anybody that listens to me is life is about reciprocity. Life is about making relationships, and in making relationships, you have to have some amount of trust. That means there’s always going to be some give and take. I think it’s really great if you can give before you’re asking.
Alana Benson:
So, how can we kind of get into the specifics? Do you just go to your manager and say, “Hey, I think I should be making more money?” What should that conversation look like when you are asking for a raise?
Catherine Tinsley:
My advice is twofold. First, be specific. Don’t just say, “Hey, can you help me out a little bit? Could I have a raise? I was thinking I should make more.” Vague is not going to help you here. You need to anchor them by giving them specific numbers. Now, what’s really interesting that people won’t think about is that non-round numbers make for stronger anchors. For example, it’s better to ask for $83,500 than to ask for $85,000. Why? Non-round numbers are somewhat surprising. When I just said give a non-round number, say it like 83-5, you’re probably thinking, “Well, that’s kind of an odd number.” It makes you think. If it’s a round number, there’s something called cognitive fluency, which is just like, “Oh, yeah, yeah, I get that.” It’s sort of like your mind doesn’t have to think as hard about it, so it doesn’t click in there, but if your mind has to think a little bit, it clicks in for the other person.
So, it’s more likely to be a strong anchor. Now, what does that mean? If you think of an anchor, like an anchor of a boat, once you put the anchor down, that boat is not moving around too much, right? It’s hard for the boat to move too far from the anchor. Similarly, in negotiation, it’s hard for the other party to move too far from your anchor, and the stronger the anchor, the less likely they will deviate from it. So, the first thing is that non-round numbers tend to be stronger anchors.
Now, this I don’t have any scientific evidence for, but it’s what I believe, and that is when you give them a non-round number as an anchor, it tends to suggest that you’ve put some thought into it. The fact that you’ve come up with 83-5 seems like you’ve done some sort of calculation that is making that an important number for you. So, that’s your anchor. You need an anchor, and you need accounts. By accounts, what I mean is why is that anchor relevant? Why is that anchor justifiable? You have to be able to say with a straight face why that is the right number. That relates to what we just said, too. It relates to the whole idea of doing your homework with the benchmarking and the comparables.
Alana Benson:
So, say you’re a salesperson, and you are currently making just for round numbers’ sake $100,000, and you go on Glassdoor, you do your research, you see that salespeople at your company on average are actually making 120. You look at people at other companies that are in a similar industry, and you see those salespeople are making around 125. Based on what you bring to the table, your years of experience, you say, okay, I think 123-5 is the number that’s most appropriate for me to ask for. Is that kind of how you would come up with that number?
Catherine Tinsley:
There’s a couple of things to unpack there. The first is if you decide that you really want 123-5, you actually have to open higher than that, right? You actually have to open higher than what you’d ideally like to settle for. That’s suggesting to me that what you need to open with is something that is closer to 129, $129,000. If they say, “How did you get there?” Then you can say, “Well, I’ve benchmarked, and it looks like it’s about $125,000 is the average, but I’ve always considered myself to be an above-average worker,” and you’ve got to be able to justify that too, right? Based on either the performances you’ve had in the company or based on something that you can demonstrate from the interview. You use sort of this notion that this is the average, but I know that I’m getting recruited because I am above average, and I think we’ll both feel comfortable with this, and it’ll make me work really hard for you to know that I’m getting paid above average. Will you get that? I don’t know. But you have to start higher than what you’d ideally like to settle for, right? We all know that.
Alana Benson:
So, how would this sort of differ between if you were leveraging an outside offer to try to make more money at your existing company versus if you really don’t like where you’re at right now and you just want a new job? What would those situations look like, and how would they differ?
Catherine Tinsley:
I think that you’re getting at what everybody knows to be true, which is that if you have an outside offer, you have a lot more power than if you have no offer that you want to take. If you have an outside offer that you are very happy with, then you use that alternative as a way of increasing your confidence to be able to ask for more within this particular negotiation. Now, let me caveat that by saying if you actually aren’t serious about the company, this company that you’re negotiating with, you shouldn’t negotiate with them. If you aren’t seriously going to consider an offer from them, then please don’t negotiate with them because that just eventually hurts everybody. It really should only be because you seriously think you could work for this company. I actually think that salary is one of the least important criteria in deciding whether or not you’re going to work for a particular company. I think the assessment of culture and fit, and whether you like the people that you’ve interacted with, are way more important than an extra $10,000 or $20,000.
Alana Benson:
You touched on this in the beginning, but there are so many different components to a job offer, and I wanted to talk about some of the things that maybe people don’t realize that they can negotiate on, such as vacation time or remote work possibility. Company equity is, I think, a really big one that people forget to ask about. How do they phrase asking for those things?
Catherine Tinsley:
So, there’s a lot of things, right? You can ask for continuing education or training possibilities. You could ask for certain job placements, you can ask for student loan help, you can ask for childcare help, you can ask for a housing allowance, you can ask for moving expenses. You could ask for a signing bonus. In years past, people have asked for things like transportation vouchers as well as what you said, equity, some kind of variable pay, pay for performance. The other thing that you can ask for if they say, “We just have this package that we give everybody, all our entry-level people get this,” then you ask for an early review date. I’d love to have an early performance review, and at that time, then we can assess how my performance has been, and make me eligible for promotional opportunities.
Alana Benson:
That way you bring up that opportunity to potentially make more money faster.
Catherine Tinsley:
Alana Benson:
To go back to when you’re in this stage of figuring things out, what is your take on salary ranges? When to state a number if there is no salary range? I’ve heard some people say you should say your number first. I’ve heard other people say, you’ve got to wait for the company to say a number. What do you think people should do when they don’t have any information on a salary range? And how do you think people can get to that topic?
Catherine Tinsley:
Common wisdom is that it’s better for the other party to throw out the first number, the first anchor, but it turns out that common wisdom is wrong. Now, I’m going to caveat this in a minute, but let’s just think about why. So, common wisdom is wrong because the most powerful anchor in any negotiation is the first offer that’s thrown out there. If you are anchoring the negotiation, they are playing your ball game. That’s why you want to be making the first offer. Now, that said, a couple of things. One, to the extent that you feel a power differential, and you really are feeling like, “Oh, my gosh, I’m this little thing, and they’re this big company,” you’re going to lowball yourself. So, they don’t even have to do the negotiation work at all. You’re doing it for them.
The second is, the more you’ve prepared, the less it matters who really throws out the first number, because you still have your opening offer, your number in hand, and you won’t necessarily be thrown by their anchor. So, if you have absolutely no information from the company about salary, I kind of find that difficult to believe that companies put out zero information about a position. But if that’s the case, then I think the best thing that you can do is try to get external labor market information for comparable jobs. You need something to back up what you’re asking for.
Alana Benson:
Do you have any tips for particularly women, or people of color, other marginalized groups who historically have kind of been at a disadvantage in the workplace generally, and when it comes to negotiation? I saw a study that came out recently that was saying some of the traditional wisdom for women negotiators may differ. What is your take for people who are kind of coming at this from a different experience?
Catherine Tinsley:
Obviously, we can’t solve a legacy of structural inequity by people negotiating, and I do think that it’s a little unfair to put the burden on the historically disadvantaged people that have to now be brilliant negotiators to make up for it. That said, I know that’s not what you’re saying. One thing I might also mention is that you sort of have two choices with your emotions. Either you can own them, or they will own you. So if you know that you’re going to be uncomfortable, you need to own it, and you need to figure out what you can do for yourself to not be uncomfortable while you’re asking for things, whether that’s practice, whether that’s getting a coach, whether that’s having a friend give you feedback on things. Otherwise, you’re going to be owned by your emotion. One other thing I guess I will say, too, that it’s just sort of dawning on me as I talk about this is I sometimes put my emotions on the table when I’m negotiating if I am uncomfortable.
You don’t have to hide it. I’ll say something like, I’m feeling a little bit of discomfort in having to negotiate this. I know it’s part of the process, but it’s not something I have a lot of practice with. If you name it, then I think it actually in some ways shows a courageousness because you’re saying, this isn’t completely easy for me to have these conversations, but I know they’re important, and so I’m going to have them. I’m having this difficult conversation with you because I trust you, and I think that you’re going to do right by me, and I’m just going to put myself out there. If you can give them implicit messages, how is that not endearing?
Alana Benson:
And I love how that humanizes you, too. Again, it’s like building that connection with the person that you have to negotiate with. Instead of forcing you to sit on opposite sides of the table, it really brings you around to sit on the same side of the table and solve a problem together.
Catherine Tinsley:
That’s right. You’re showing empathy, and you’re acknowledging that they’re showing empathy. I mean, it’s sort of like acting as if, and I find that oftentimes people come through for you. You do not agree at the table when you are negotiating, you do not agree and say, “Okay, great. Done.” You can say things like, “Well, this all sounds really good. Can you send me the offer in writing, please?” Always get it in writing. You’re not agreeing at the table. The point of the negotiation at the table is to get something in writing that you can then later evaluate.
Alana Benson:
I love that tip. Catherine Tinsley, thank you so much for helping us out today. It was great talking to you.
Catherine Tinsley:
Thank you so much for having me on.
Sean Pyles:
Alana, I so appreciate how you and Catherine talked about how negotiating doesn’t have to be this combative exercise that it’s often made out to be. Yes, you may have to navigate a power imbalance. Yes, this can feel uncomfortable. But reframing a negotiation as a means of collaborating so each party gets what it wants can make it feel much more accessible. You are there to get the raise or benefits that you deserve. The employer is there to ensure that they have the skilled, happy workers that they need. You both have something to gain from this negotiation.
Alana Benson:
Yes, exactly. So, it can be easy to feel like you’re on opposite sides of the table, but you’re right. In the end, it’s likely that your employer and you want the same thing, for you to stay and be happy there. If you keep that in mind, it’s easier to remember that you have the same goal. You just have to agree to the terms.
Sean Pyles:
I think the really big lesson here is one we’ve been talking about throughout the series, which is yes, you can sweat the small stuff. It’s fine if you think it will help you to cut down on lattes and dinners out and that sort of thing. If you want to improve your finances, do what works for you. But if you’re looking at big financial goals, you’re going to want to take much larger steps to meet them.
Alana Benson:
Yep. And finding ways to boost the money that’s coming in the door instead of obsessing over what’s going out could be a faster and more efficient way to achieve those goals in the timeframe you want to accomplish them. So don’t be afraid to negotiate, don’t be afraid to ask for what you believe you are worth, and do the homework to prove it. And really think through the skills you bring to the table that can bring in more income, whether that’s at your existing job or at a new one.
Sean Pyles:
Well, Alana, thank you so much for leading the series. I’ve certainly learned a lot, even if I’m still a little bit nervous about getting too deep into LinkedIn.
Alana Benson:
That’s okay, Sean. I am so honored to be here. Thank you for having me.
Sean Pyles:
Always happy to have you. For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at (901) 730-6373. That’s (901) 730-NERD. You can also email us at [email protected]. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
Alana Benson:
This episode was produced by Tess Vigeland. Sean helped with editing. Kevin Berry helped with fact-checking. Sara Brink mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Sean Pyles:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Alana Benson:
And with that said, until next time, turn to the Nerds.
Looking for the best ways to get free money from the government? Getting free money from the government might sound too good to be true, but there are actually several ways you can receive financial assistance. From helping with monthly expenses to finding unclaimed funds, these programs and resources can be a big help. The…
Looking for the best ways to get free money from the government?
Getting free money from the government might sound too good to be true, but there are actually several ways you can receive financial assistance. From helping with monthly expenses to finding unclaimed funds, these programs and resources can be a big help. The key is knowing where to look and meeting eligibility requirements.
This article will show you different ways to get extra money from the government. Whether you need help with your bills or want to get back money that belongs to you, there are many options for you.
Best Ways To Get Free Money From the Government
Below are the best ways to get free money from the government – for housing, children, health insurance, food, and more.
1. Apply for unemployment benefits
If you lose your job, you might be eligible for unemployment benefits. These benefits can help you cover some of your expenses while you look for a new job.
To qualify, you usually need to have worked a certain amount of time in the past year. Each state has its own rules, so you should check your state’s specific requirements.
You can apply for unemployment benefits online or by phone, and be ready to provide details about your recent jobs and earnings. This will help determine how much you can get each week.
The benefit amount is based on a percentage of your earnings from your previous job. It can range from about 40% to 60% of your past earnings. This money can be a helpful bridge while you search for new work.
Each week, you’ll need to report if you’re still unemployed and looking for a job. Some states may also ask you to document your job search activities so it’s important to follow these rules to keep receiving benefits.
Unemployment benefits probably won’t cover all your expenses, but they can make a tough time a little easier. Remember to apply as soon as you lose your job to start getting support right away.
2. Check for child tax credits
Child tax credits can be a big help for families.
You might be able to get money back from the government if you have kids such as for childcare or for just having children. The amount you can get depends on your income and the number of kids you have.
The Child Tax Credit now gives up to $2,000 for each child.
Make sure you check if you qualify for these credits. You can find out more by visiting the IRS website or talking to a tax expert.
3. Women, Infants, and Children (WIC)
The Women, Infants, and Children (WIC) program helps pregnant women, new mothers, and young children get healthy foods. This program is a great way to get extra help when you need it the most, and this is free government money for low-income families. It’s focused on keeping you and your little ones healthy and well-fed.
If you’re pregnant, you can get help right away and continue to receive it for up to six months after giving birth. If you have children, they have to be under the age of 5.
To qualify, you need to meet income guidelines and show that you are at nutritional risk. This can include being underweight or having a diet low in essential nutrients. WIC then provides monthly benefits that can be used to buy specific foods like milk, eggs, and fruits.
To apply, you need to contact your state or local WIC office (you can start by Googling “WIC + your state name”). They will tell you what documents to bring and where to go for your appointment.
4. Use SNAP for food assistance
SNAP stands for Supplemental Nutrition Assistance Program. It’s a government program that helps low-income families buy healthy food. If you qualify, you get an EBT card loaded with funds every month.
Using SNAP is easy. You can use your EBT card at most grocery stores and it works just like a debit card.
To qualify for SNAP, you need to meet certain income and other eligibility requirements. These can include having a low income based on your household size.
SNAP can be a huge help if you’re struggling to afford groceries. It allows you to buy essential foods like fruits, vegetables, meats, and dairy products.
5. Free and reduced breakfast and lunch at school
Your child may be able to get free or reduced-price meals at school through several programs, and these programs make sure kids have healthy meals every day.
The most well-known program is the National School Lunch Program (NSLP). It provides low-cost or free lunches to millions of children in public and nonprofit private schools.
Schools many times also have the School Breakfast Program. This is similar to the lunch program but focuses on providing a nutritious morning meal.
In addition to these programs, there is the Special Milk Program. This program provides milk to children who do not participate in other meal programs.
Some schools offer the Community Eligibility Provision (CEP). This allows schools in high-need areas to serve breakfast and lunch at no cost.
To find out if your child is eligible, check with your school. They can guide you through the application process and let you know what your child qualifies for.
6. Seek Temporary Assistance for Needy Families (TANF)
Temporary Assistance for Needy Families (TANF) is a government program that can help you if you’re facing hard times. It provides financial aid to families with children who are struggling to make ends meet and can help with childcare, job training, and finding work.
To apply for TANF, you need to contact your local TANF office. They will help you through the application process and let you know what documents you need.
It’s important to know that each state runs its own TANF program, so the benefits and services might vary. Be sure to ask your local office (you can also reach out to the U.S. Department of Health and Human Services) what specific help they can offer.
7. Low-Income Home Energy Assistance Program (LIHEAP)
If you need help paying your energy bills, you might qualify for the Low-Income Home Energy Assistance Program (LIHEAP). This program helps low-income households with their heating and cooling costs.
LIHEAP provides federal funds to reduce energy costs. This can include help with your energy bills and dealing with energy crises.
You can also get help making your home more energy-efficient. This is known as weatherization and might include things like adding insulation or fixing drafty windows.
8. Early Intervention and Head Start
Early Intervention services are great for families with young children who have special needs. These services help kids from birth to age three. They offer things like speech therapy, occupational therapy, and more. Most services are free, and others have a sliding scale fee. They make sure your child gets the help they need, even if you can’t pay.
Head Start programs are for kids aged three to five. They help with early learning and development. Head Start also supports families with health and dental services.
Both Early Intervention and Head Start focus on getting kids ready for school. They help children learn and grow in important ways and also support families by connecting them to resources they may need.
You can usually self-refer your child to these programs (each state has its own), or ask your pediatrician for a referral.
9. Apply for college grants
College grants are a great way to get free money for school. Unlike loans, you don’t have to pay back grants. They can help cover your tuition, books, and other school expenses.
One of the most well-known grants is the Pell Grant. For the 2023-24 school year, the maximum Pell Grant is $7,395. This grant is for students with financial need.
Another option is the Federal Supplemental Educational Opportunity Grant (FSEOG). This is for students with exceptional financial need. The amount you can get depends on your school and your financial situation.
To apply for these grants, you’ll need to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA helps the government determine how much aid you qualify for.
Many states and schools also offer their own grants. Check with your school’s financial aid office to see what you might be eligible for. It’s a good idea to apply for as many grants as you can.
Grants can make a big difference in paying for college, so it’s worth the effort to apply. Make sure to look for scholarships too!
10. Public Student Loan Forgiveness (PSLF) program
The Public Student Loan Forgiveness (PSLF) program can help if you work in public service. This includes jobs like teaching, nursing, firefighting, and more. If you work in these fields and have federal student loans, you may be able to get your remaining loan balance forgiven after ten years of payments.
To qualify, you must work full-time for a qualified government or nonprofit organization. You also need to make 120 qualifying monthly payments under a qualifying repayment plan. Only payments made after October 1, 2007, count toward the 120 payments required.
The program mainly benefits people who work in low-paying, but important, public service jobs. It’s a way to give back while also getting financial relief. Though the application process can be long and require careful tracking, many find the effort worth it when their loans are wiped out.
11. Claim Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) gives low- to moderate-income workers and families a tax break.
If your income is under a certain amount, you might qualify. This credit can either reduce the taxes you owe or increase your refund. For 2024, the EITC amounts can go up to $3,995, based on your income and family size.
To claim the EITC, you need to file a tax return, even if you do not owe any taxes. You should fill out Form 1040 and a Schedule EIC if you have qualifying children.
12. Get housing vouchers
Housing vouchers are a great way to get help with rent. They are commonly known as Section 8. These vouchers help low-income families, seniors, and people with disabilities afford safe and decent housing.
To get a voucher, your income must be below a certain level and this varies by location and family size.
With a voucher, you can choose any housing that meets program requirements. This gives you some freedom to pick a home that suits your needs best. The government will pay part of the rent, making it more affordable for you.
13. See if you qualify for down payment assistance
Buying a home can be tough, especially when it comes to saving for a down payment. That’s where down payment assistance programs can help prospective homeowners.
These programs come in many forms. You might find grants, loans, or other types of aid to help you with the down payment. Each state offers different programs and some are more generous than others.
To qualify, you’ll need to meet certain requirements. These can include income limits or being a first-time homebuyer.
14. Apply for Supplemental Security Income (SSI)
Supplemental Security Income (SSI) is a program that gives monthly payments to people who are disabled, blind, or over 65 and have limited income. You may get help with food, rent, and medical bills.
To apply for SSI, visit the Social Security Administration (SSA) website. There, you can find the application forms and details about the process. You may need to provide information about your finances and living situation.
The application can be done online, by phone, or in person. If you’re under 18 or applying for someone under 18, there are special forms for children.
15. Look for health insurance in the marketplace
We all know that health insurance can be very expensive. Before you skip it, I highly recommend comparing pricing of health insurance on the Health Insurance Marketplace to see if you can find something more affordable for you and your family.
It’s a great way to get coverage and possibly save money. Sometimes, if you qualify, you can get free or low-cost health insurance plans.
Go to Healthcare.gov to start, and each state has its own Marketplace, so follow the specific steps for your state. It can be a little confusing, so make sure you have no distractions and can spend some time doing this.
During the open enrollment period, you can choose a new plan or keep your current one. If you’ve had a big life event, like losing your job, you might qualify to sign up outside the usual enrollment times.
16. Medicaid
Medicaid is a state and federal program that helps people with low incomes get health care. If you qualify, you can receive free or low-cost medical services, like doctor visits, hospital stays, and even prescription drugs.
Medicaid is especially helpful for families, pregnant women, seniors, and people with disabilities.
One of the best parts is that Medicaid covers a wide range of services – you can get help with dental care, mental health services, and even long-term care.
Your income and family size usually determine if you can get Medicaid.
17. Search for unclaimed money
You might have unclaimed money waiting for you. This money comes from many sources like unpaid wages, forgotten bank accounts, or unclaimed insurance benefits.
You can check by going to unclaimed.org, the website managed by the National Association of Unclaimed Property Administrators (NAUPA).
Each state has its own database for unclaimed property. Check your state’s website to see if there is money owed to you.
Frequently Asked Questions
There are several ways you can get money from the government to help with different needs, like paying for food or getting extra support if you don’t make a lot of money.
What ways can I get money from the government?
There are many ways to get free government money. You can apply for unemployment benefits if you lose your job. Families can also check for child tax credits, which give extra money for children. Programs like WIC and SNAP can help with paying for food, and students can get free and reduced breakfast and lunch at school.
How can I get help from the government if I don’t make a lot of money?
Low-income families can use programs like WIC (Women, Infants, and Children), SNAP (Supplemental Nutrition Assistance Program), TANF (Temporary Assistance for Needy Families), LIHEAP (Low-Income Home Energy Assistance Program), and more to get help from the government if they don’t make a lot of money.
How can I borrow money from the government?
The government offers student loans for education through programs like FAFSA. Small businesses can apply for loans from the Small Business Administration (SBA). There are also some loan programs based on specific needs like starting a farm or buying a home.
What is FAFSA?
FAFSA stands for Free Application for Federal Student Aid. It’s a form that students fill out to get financial aid for college. It can help you get grants, loans, and work-study opportunities to pay for your education.
Can I borrow money from my social security benefits?
No, you cannot borrow money from your Social Security benefits. Social Security is designed to provide income during retirement or if you become disabled, so it’s not a source of loans or advance cash.
Is there free grant money for bills and personal use?
Yes, there can be grants for specific needs like paying utility bills or home repairs. You might also find grants for education, food, and health care. Check with local and federal agencies to see if you qualify for any of these grants.
How do I find out if I qualify for any government assistance?
You can visit government websites or contact local agencies. Many state and local governments have online tools to check your eligibility. It’s also helpful to reach out to community organizations that can guide you through the application process.
How To Get Free Money From the Government – Summary
I hope you enjoyed this article on the best ways to get free money from the government.
There are many ways to get free money from the government, such as for housing, to help pay for your children’s expenses, to afford health insurance, to buy food, and more.
Note: There may be changes or updates to the free government programs above. I recommend contacting the program to learn more. Also, please be sure to stay safe with your sensitive information and only use official websites (look for .gov websites and official government organization websites to start with to avoid scams).
What do you think of these free government programs? Have you ever used any of the ways above to get free money from the government?
Teachers often find themselves with extra time during the summer break, making it the perfect opportunity to earn some extra money! If you’re looking to boost your income, there are plenty of side hustles that can fit seamlessly into your summer schedule. From tutoring to freelance work, these easy summer side hustles can help teachers make the most of their time off while supplementing their income. Let’s explore some of the best options to keep you busy and financially secure this summer.
Resell your Curriculum
Image Credit: Wavebreakmedia from Getty Images.
Teachers can make extra money by selling their lesson plans and study guides. Platforms like “Teachers Pay Teachers” and Etsy let you sell your materials to other educators. You might as well make money on lessons that work well in your own classroom!
Sell Printables
Image Credit: Dean Drobot.
Create and sell printables like habit trackers, meal planners, and chore charts. Use tools like Canva to design the printables and sell them on Etsy for extra cash.
To learn more: Digital Products to Sell on Etsy: Best Way to Make Money Online Fast
Rent Out Baby Gear
Image Credit: Pixelshot.
Make money by renting out baby gear to parents and tourists. Use BabyQuip to list your items and help families while earning extra income.
Trade Stocks and Options
Image Credit: Ipopba from Getty Images Pro.
Earn money by buying and selling stocks. It requires discipline and patience, but with learning and practice, it can be a profitable side hustle.
To learn more: How Fast Can you Make Money in Stocks? The Real Answer
Be the Party Planner
Image Credit: Pixelshot.
Use your organizing skills to plan parties and events. From birthdays to weddings, help people celebrate while making extra money. Use your social skills to shine!
Get Paid to Housesit
Image Credit: Fizkes from Getty Images.
Housesitting is a great way to earn extra cash. Take care of homes and pets while homeowners are away. Platforms like HouseSitter.com can help you find gigs. Maybe even travel to a new destination and experience the culture!
To learn more: Get Paid to House Sit and Find Lucrative Housesitting Gigs Easily
Become a Referee or Umpire for Sports
Image Credit: Filo from Getty Images Signature.
Combine your love for sports with extra income by becoming a referee or umpire. It’s a flexible job that fits well with a teacher’s schedule. There is a shortage of referees, so there are plenty of opportunities.
Start Tutoring
Image Credit: JasonDoiy from Getty Images Signature.
Offer private tutoring services to help students with their schoolwork. You can tutor in person or online. This is probably the most logical side hustle for most teachers.
Dog Walking or Pet Sitting
Image Credit: Kzenon.
If you love animals, consider dog walking or pet sitting. Use platforms like Rover to find clients and make extra money while spending time with pets.
Be a Babysitter, Nanny, or Caretaker
Image Credit: Pixelshot.
Earn money by babysitting or providing childcare. Parents need reliable and caring individuals to look after their children, making it a great side hustle for teachers. Great side hustle as children are off when the teachers are!
Find More Side Hustles Ideas for Teachers
Image Credit: Wavebreakmedia from Getty Images.
Teachers can explore these 50 side hustles to make extra money. From online opportunities to hands-on jobs, find the perfect fit to boost your income.
Find more ideas: 50 Best Side Hustles for Teachers to Make Extra Money
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Dream about what life could be if you didn’t have a job? If you are in the boat of I don’t want to work anymore, then you must read this post.
The reality is most people have days where they absolutely have no desire to work. Yet, you know deep down that you have to make money in order to pay your bills.
You are thinking… I don’t want a job I just want a life.
So, what happens when you don’t want to work anymore?
Well, if you don’t want to go to work today, you could take a sick day and get away with it. You can do that here and there for a while, but unfortunately, your employer is going to catch up to the quality of work that you are able to do or not do.
At this point you might be saying, you know I don’t want a job, I just want a life.
And that is very understandable if you don’t want to work in a field anymore job that you don’t love.
You want time freedom in your life!!
We will dive into the reasons for not wanting to work and how to overcome them when you need the money.
What to do if I don’t want to work?
The best thing to do is to find a job that you love and want to do on a daily basis!
Something that you can’t wait to go to work to be able to do. A way to make money that doesn’t feel like a job!
Unfortunately, too many of us feel we cannot do what we want to do when we want to do it. Thus, we want more out of life.
In this post, we are going to detail. If you don’t want to work anymore, what steps can you take to quit the job and live the life that you want?
Is it normal to not want to work?
I think each and every one of us has a desire not to work. Maybe you are thinking “I hate my job.”
This desire to work may ebb and flow based on what is going on, how you are feeling, and your current situation.
Especially if you are in a situation where you do not enjoy your boss, your co-workers, the company culture, or the current assignment, it will make going to work harder.
Whatever your job entails, if you are not enjoying what you’re doing, it is harder and harder to go to work on work every day.
As you can read on Reddit personal finance threads, there are plenty of people who have shared their stories about how they don’t want to work, seeking solace from others, and looking for ways to get out of the current situation that they’re in.
Also, if you are thinking that I can never make it until I am 55 then think about retirement. You are just sick of working and you may be in your 20s, 30s, or 40s.
It is okay to dream about not working daily!
Why We Don’t Want to Work
There are several reasons for not wanting to work.
Primarily many people do not feel engaged at their jobs, which makes them less likely to want to continue working. Gallup found that only 15% of employees feel engaged at work.1
In addition, there is an increasing amount of competition in the workforce as well as a lack of clear career paths and advancement opportunities for those who desire more freedom or flexibility with their careers. This can lead someone to think about becoming self-employed or going into a different field.
There are many reasons for not wanting to work.
People on Reddit share their stories about how they don’t want to work anymore. Some are still in school, some are retired, and others have other reasons for not wanting to work.
We all have heard about the Great Resignation with people saying “enough is enough; I don’t want to go back to work.”
1. Burnout
Burnout is when an employee begins to feel exhausted and overwhelmed by their job. They do not want to be there anymore and it negatively impacts the happiness of both the individual and their work environment.
If you want to stop working, it is okay!
Just make sure you can still be financially independent.
2. Not enjoying your job
Many people wake up and say, “I don’t really want to do the work today.” If you are not enjoying your job, it is harder and harder to go in every day.
People don’t want to work because they feel like they’re working more than is necessary, or there’s no meaning behind their job anymore.
If you find yourself not enjoying your job, it might be time to leave. Many people experience dissatisfaction with their jobs and want to retire early.
Many times this is when people leave their jobs and find success is the best revenge.
3. Mental Health
Mental health issues can be caused by outside factors, such as stress and anxiety, and can lead to feelings of wanting to avoid work.
For many, the idea of going to work can feel overwhelming and lead to feelings of anxiety and dread. It is also essential to take a step back and assess the quality of your mental health.
If this is something you have been struggling with, it is important to think about why you are feeling this way and take steps to address it.
If this persists, it is important to seek professional help. Visiting a therapist or counselor can help you identify the root causes of your negative feelings and develop a plan to overcome them. In many cases, your workplace may even cover the cost of therapy, so you don’t have to worry about paying out-of-pocket.
This is one of the good excuses to miss work.
4. Lack of Interest
When you find yourself feeling like you don’t want to work anymore, it’s important to take some time to examine the reasons why and identify potential solutions.
It could be that you’ve been in the same job for a long time and need a change of scenery.
Maybe you’re feeling overwhelmed and undervalued by your current role.
Possibly you have other things that are taking president and you don’t have the same level of interest.
Whatever the source of your feelings, they need to be addressed.
5. Support System
Friends and family can be a great source of support, offering advice and understanding. However, if they do not believe in you, it can make it even harder to find motivation.
On top of that, if you have family obligations such as childcare, it can be difficult to make the time to work or even to access the necessary resources.
Talking to your loved ones about your feelings and concerns is a great first step in getting through this tough time.
One of these family emergency excuses could help you in a pinch.
6. Lack of Appreciation
It can be incredibly disheartening to work hard and not be appreciated.
It’s easy to become discouraged and feel like you don’t want to work anymore if you’re putting in the effort and not being recognized.
When this happens it’s important to remember that you are valuable and your work does matter. It’s also important to talk to someone about how you’re feeling, whether that be a friend, family member, or therapist.
You just want someone to say to you, “I appreciate you!”
7. Thinking of Career Change
If you find yourself in a position where you don’t want to work for weeks on end, it’s important to figure out why. Are you having a hard time at your current job or do you no longer wish to pursue a career? If it’s the latter, it can be freeing to consider all the possible career changes you can make.
Many people don’t want to work anymore because:
they don’t want to pursue a career in corporate America
tired of the same job they’ve been doing for years
don’t want to continue vying for raises, bonuses, or promotions
It’s okay to dream about something else, something fresh and different.
You may find yourself researching other opportunities to put your skillset to use.
9. More Interest in Hobby to Turn into Side Hustle
For many people, having a side hustle is a great way to make extra money, explore a passion, and turn a hobby into something productive and profitable.
If you find yourself no longer wanting to go to work and feeling more fulfilled in your hobbies, it may be time to pursue a side hustle.
You can monetize your hobby and create a side gig to give yourself a new source of income.
This will provide you with the freedom to pursue what you’re interested in and make a living from it. It can also give you the option to quit your job and explore other areas of your life.
10. Wanting to make money passively
Making money passively is a goal that many people desire, but it can be hard to turn into reality.
While it is possible to make money passively in the stock market, real estate, or a small business, one can also earn passive income by doing any type of side hustle.
It is better to find ways to make passive income from something you enjoy.
You need to figure out what should I do for a living that will make passive income.
How do you make a living if you don’t want to work?
If you don’t want to work, you still need to find a way to make a living.
Passive income is the most effective way of making money without working.
It allows you to work on your business or hobby full-time and then withdraw a certain amount every month that helps pay for all of your expenses, including food, rent/mortgage, etc.
So, your first step is to create a passive income source.
If you don’t, then don’t say, “I don’t want to do the work today.”
In fact, there are many good excuses to miss work.
Can I survive without working?
Well, that completely depends on your financial situation. (Since most people are not aware of where they stand financially, here are the Money Bliss Steps to help you.)
If you are lucky enough to be a trust fund baby with somebody else managing your money, you are likely fine and can survive without working.
However, if you are like most normal folk, then you may be able to survive for a little bit without working. But over time, it will catch up to you. Not working is not a long-term solution.
While you may be on unemployment and collecting unemployment benefits, or maybe even disability payments that are not enough to make ends meet. In most cities, you can survive in the short term without working. But in the long term, it is not going to work out for you.
If you are serious about not wanting to work, you need to find the FIRE movement, which means financial independence retire early.
That is a better term for not wanting to work anymore. When you want to quit the job and do something else in life, you have to do what is called FIRE.
5 Simple Steps To Quit the Job
To quit the job or the career path that you were in, you have to take steps ahead of time to make sure that your transition (financially) is as smooth as possible.
The biggest question is how can I make money if I don’t want to work ever.
You set aside money to take care of your obligations and bills while being able to live the life that you want to live. That means you have more types of income than just a paycheck.
These are the exact steps you need to take to quit the job. Obviously, it won’t happen overnight. But, you can see the light at the end of the tunnel.
1. Make an Exit Plan
First, you have to make a plan of how finances will work without a typical paycheck. You need to learn how to FI quickly.
In order to retire early or quit the job, you must be able to financially support yourself without a consistent income coming in from a regular paycheck.
Specifically, it means you need to find ways to make passive income. That could be in the stock market, real estate, small business, side hustle hobby, or driving for Uber. There are a variety of different ways to make money; it is just better to find ways to make money doing something you enjoy.
One of the things you will quickly realize is that to make money passively, you must have money on hand to invest. That is the “Catch 22” of why people get caught in the cycle of it being too difficult to change their financial position and just give up.
If you don’t like your job and you don’t want to work anymore, then you need the mindset that something is gonna change, you are gonna make it a reality.
It will be hard for a short period of time to save up the money necessary to build the steps to be able to quit working or FIRE, but you might be surprised how you can double $10k quickly when you put your mind to it.
Motivation is a great thing, especially given the right circumstances.
Related Answers:
2. Save Money
If you don’t want to work anymore, then you have to save money to cover your bills. Period.
There is no way to get around that situation.
Your friends and family are not going to pick up the slack just because you want to quit your job.
So, you have to find all of the possible ways to save money. A great place to start is with one of our money saving challenges.
Another great way to save more money is by changing your habits.
In order to “retire early,” you must save a majority of your income at an early age to gain the benefit of compounding early. If you are thinking, “Well shoot, I missed that bucket,” then don’t worry … now is better to start than waiting too long.
Things only look up from here!
3. Cut Expenses
You have to be able to live below your means.
If you’re not interested in your job or the career that you are currently in and you don’t want to work anymore, then you need to cut your expenses in order to save more money.
One of the wisest tricks of the FIRE community is becoming a thrifty person. You know when to spend money on quality items as well as you know when to save money on frivolous expenses.
4. Pick a date.
As with any smart financial goal, you need to put a deadline on when you want things to happen.
If you are not happy with your job and your depression isn’t worth it anymore, then you have to find a date to move on and do something else.
Obviously, you’ll need some of these FIRE calculators to learn how much you need to make your dream a reality.
that happen. Here are some of the best fire calculators that you can find, to learn, how much you need to quit your job.
5. Start Hustling
Let’s face it, 2020 changed the workplace as well as our priorities. Honestly, I think it was for the better. We all realize there is more to life than just the constant line of being busy.
In addition, many of us found the extra time that we can now put to work and start to make money.
It is easier to work when you have a target goal in mind of not working anymore. You must start saving money to put to work passively.
Below you will find ideas to help you search out the best serious ways to make more money. The last thing you want to do is learn what happens when you don’t save enough for retirement.
When You Don’t Want to Work Anymore
In this post, we answered the question of how can I make money if I don’t want to work.
The secret sauce is called passive income.
You must earn money on your investments. So, yes, now is a good time to invest in stocks.
There are many ways to make passive income; it could be in the swing trading the stock market, real estate, a business venture, a side hustle, or simply long-term investing.
Unless you are massively independently wealthy and part of the 1%, with millions of dollars that you do not know what to do with, then you will want to make some money on your nest egg that you create over time.
If you are saying, “I just want a life,” then stop waiting for the magic time for your retirement. You don’t have to wait until the retirement age of 65 years old.
You are in charge of your life and can make it happen… if you put your mind to it.
Source
Gallup. “What Is Employee Engagement and How Do You Improve It?” https://www.gallup.com/workplace/285674/improve-employee-engagement-workplace.aspx#:~:text=Based%20on%20over%2050%20years,in%20the%20%22engaged%22%20category. Accessed March 11, 2024.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
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.
You are struggling to make money.
And right now, you need to figure out how to turn 100 into 1000.
Plus you want to do this preferably fast!
We will share a few of the most important ideas that you can take to turn 100 dollars into 1000 in a day. These are simple and easy-to-follow strategies that anyone can follow without any prior experience or skill set; just some determination.
If you do not want to earn $1,000 in just one day, then this article is not for you.
However, if your goal is to turn 100 into 1K over time and build multiple streams of income that last forever–this post will provide some insight on how it can be done.
At the end of this guide, I’ll leave you with 10 key points about how to get started on your path towards turning 100 dollars into 1000.
Make the most of your time, because you’re running out of it!
How to Turn 100 into 1000
To turn 100 into 1000, you want to multiply your initial investment 10x.
That is a big promise!
The great news is this is something that can be easily achieved. Actually, way easier than you could possibly imagine.
Your goal is to learn how to turn 100 into 1000.
For some of you, you may want to learn how to turn $100 dollars into $1000 in a day.
Regardless of if you want to know how to turn $100 into $1000 in 30 days or a week, you will learn strategies to help you create more income streams. And that my friend is a win that will put you on a trajectory towards financial stability!
This is how can I flip my money…
Step One: Set Your Goals
When trying to reach a goal, you should be able to work on it on the same day. In order for this process, one must know what obstacles they might face and how they can overcome them with simple tactics.
It is important to set goals when trying anything new because they help keep the process moving forward.
In addition, when working towards a goal one needs to have an “end game” or at least something that will satisfy their objectives after achieving success. This is important because if someone sets out with no end-game (or doesn’t even think about it) then there is no sense of motivation or purpose.
Finally, it’s important to have a strategy for attaining your goal that is not too difficult and also ensures the best possible results are attained in the quickest amount of time.
Step Two: Create A Plan
The biggest obstacle with almost any make money idea is how people perceive them before they’ve had time to prove themselves.
You jump right in without taking the time to learn the new skill. Thus, you end up losing money quickly, which is exactly the opposite of what you wanted to do.
While you can know how to turn $1000 into $1000 in a day, you need a plan to make sure that happens on a consistent basis.
The most important step in the process of turning $100 into $1000 is to create an action plan.
A written document of what you plan to do. Include some of these items:
Write down your Make Money Idea
Skill sets you must learn
What steps do you need to take to reach your goal
Mind map out all of the possibilities as well as obstacles
How to market yourself or your business
Timeline to achieve your end goal
Steps to reach your goal.
More than likely, making over $1000 is not something you want to do once and be done. It will be something you want to rinse and repeat.
Put in the proper work, so you can see successful results.
Step Three: Take Action
The third step is to take action. You can’t just sit around and wait for success to come knocking on your door; you have to do something about it!
While it is great to plan what you want to do, you need to take action.
If not, you will never see results.
Also, it is important to set milestones in order to track your progress.
Ways to Turn $100 into $1,000
The average person spends $100 a month on their phone, cable, and coffee. If you want to make sure that your money is going towards the things that will help increase your wealth, then you need to learn ways to turn $100 into $1000.
Here are 12 simple ways that can be taken to turn $100 into $1,000.
Each idea will help you accomplish the goal of turning 100 dollars into 1,000 dollars in a short amount of time.
You just have to put in the work and dedication.
#1 – Start a Blog
Starting a blog is not an easy task and takes hard work.
A blog can be a lucrative career for those who are passionate about writing and sharing their expertise. Blogs make money through ad revenue, affiliate marketing, sponsored posts, and selling digital products.
The process of starting your own blog starts when you decide on the topic that interests you, create a website for it, design the layout, write posts about what’s happening in your life or what has happened in yours recently (almost every day), post pictures to show how much progress has been made with building content for your site and then finally sharing it online!
Starting a blog can be relatively inexpensive, but the income potential is high.
Check out the course roadmap and find out where to start first!
#2 – Open an Etsy shop or Shopify store
Etsy is a marketplace for handcrafted items that provides free tools to help you start an online shop. Use the site’s search engine, browse its features, and find products that will be popular with your target audience.
An Etsy shop is a great way to create a business and make money. It can allow you to sell whatever you want, with the potential for making more than $1,000.
The same is true for a Shopify store.
# 3- Invest in Stocks
This is my personal favorite way to turn 100 into 1000. Yes, that is true! While a blog is great, this allows more time freedom in my life with true passive income.
Investing can be a powerful way to turn $100 into $1,000 (over and over again). There are many ways to do this, but one thing is certain: investing has a foundational role in becoming independently wealthy.
Here is the BIGGEST CAVEAT to investing in stocks: you must learn how to trade and be successful.
Don’t just assume you can jump in and start to make $1000 in a day or follow some guru.
You must take this investing course.
If you don’t come back once you lost more money and invest in a proper stock market investing course.
You can start investing for as little as $100.
One former assistant principal, Teri Ijeoma, changed her life when she left her job as an educator and become an active trader.
Oh, and please stay away from Robinhood as a brokerage firm. Also, don’t jump into forex until you have some serious knowledge under your belt.
#4 – Invest in Real Estate
Investing in real estate is an excellent way to diversify your portfolio and it’s also a great way to make money.
Real estate is one of the most secure investments with low risk, but it also has the potential to provide stable returns. It’s important to choose a real estate investment strategy that is suited to your risk tolerance and any capital constraints you may have.
You can invest in real estate by purchasing a single property, multiple properties, or buying fractional shares. There are many different portfolio types that meet your needs and risk tolerance.
Real estate investment is a smart way to get passive income.
#5 – Get into Freelancing
As a freelancer, you have the opportunity to work with different companies and organizations. You decide where your next job is based on what you like best about each company or organization.
Freelancing is a unique way to work and offers the opportunity to do something you love without having to worry about someone else.
You don’t need to have a lot of money to start freelancing.
The internet has made it easy for people with skills and expertise in many fields to make money, even if you do not have any experience or credentials.
Freelancing is a way for people to earn money without having an employer. It might be intimidating, but it’s worth the effort and investment of time. You can start by building your portfolio website that will help you convince clients in order to get your foot in the door with freelancing opportunities.
Freelancing is a great way to earn income while still having time for personal life.
Get started with Fiverr!
#6 -Flip Digital Assets
A flip digital asset is a physical object that can be used to collect data from a device, such as a computer or mobile phone. This allows for the collection of information without having to install additional software.
These are the three types of digital assets that are currently available for purchase: cryptocurrencies, utility tokens, and collectibles. It is important to note that these currencies can be bought or sold at any time with no transaction fees.
However, it may take some time before you see your initial investment grow significantly due to large volatility in cryptocurrency prices or NFTs.
#7 – Start Service Businesses
Start businesses that provide services, such as childcare, lawn care, or housecleaning. The rules of business are always changing and it’s important to be able to adapt your business plan accordingly.
When starting a service business, the most important step is to have an idea for your service.
You can start by thinking about what you enjoy doing and then finding a way to monetize it. For example, if you are good at social media marketing, you could create an Instagram account with different types of content that would attract people who are looking for services similar to yours.
If you like dogs, start a business by dog walking or pet sitting. You can take it one step further and provide products your clients need like leashes, treats, and poop bags. This is great if you have a passion for animals.
Service businesses such as cleaning and lawn care can be started for a few hundred dollars or less.
You are trading your time for money.
#8 – Learn a New Skill
Learning a new skill is not an easy task.
It takes time, energy, and patience to master something that you have never done before.
However, it can be worth the investment in your future if you are able to use the skills learned for work or different hobbies later on down the line.
Plus many new skills can be used to help you make more money fast.
This is also one of the best ways to create your own financial future if you want it, which will make your life significantly better and happier.
Find a job that pays a lot of money
Increase your skills and qualifications to find a better-paying job.
Start studying for an exam or qualification people will be willing to pay more for, such as a degree or certification.
Network to find out more information about how much money you could be making if you were in the job of your dreams and what qualifications may be required for it.
Learn everything you can to be successful with your new side hustle.
In order to learn a new skill, you’ll need to set some time aside. You can decide on how much time you want to spend learning a new skill by deciding the frequency of practice.
Think about how many hours per day you want to spend practicing the skill. For example, if you want to learn a new juggling skill, you could decide that every day for 15 minutes will be dedicated to practice. If you want to learn a new skill every day, it will take about 30 minutes per day.
#9 – Couponing
Couponing is a very popular way to save money on grocery items.
Couponing involves finding coupons for specific items and looking to see if the coupon has been used before. In order to save money on groceries, it is important to check the expiration date of any coupons and to remember to use them before they expire.
This is a backward way of stretching spending $100 to get $1000 worth of product.
Couponers may be extreme couponers who stack coupons, compete with other stores, and use rebates to get items for 95% off or more.
# 10 – Loan your $100
A loan is a sum of money that somebody borrows from somebody else, who agrees to give it back with interest. The lender may be a bank or other financial institution, while the borrower must be a person, a company, or a government. The money is lent for a specific purpose, such as buying property or starting a business.
This is the riskiest idea and not my first pick, but it’s another passive income idea to test out.
This is an opportunity for people who want to take their $100 and turn it into $1,000 by loaning them back the money that they’ve given you.
#11 – Day Trading
Day trading is an investing strategy that entails buying and selling securities during the same trading day.
You are looking to profit by trading in the short term. The same is true with swing trading while holding investments from two days up to a month.
Only invest what you’re able to lose!
If you are serious about day trading, you can make good money with proper risk management. But, you must invest in this investing course.
#12 – Invest in Crypto
Investing in cryptocurrency is a risky investment, but it can pay off if you’re careful.
It’s important to keep your personal information secure when investing in cryptocurrencies, and never access an exchange account with the same password you use for your bank account.
Today, there are many different cryptocurrencies that you can invest in. Cryptocurrencies are becoming more and more popular with every day passing by. Cryptos are very volatile, so it’s important to invest in them with caution.
How to Be Successful when turning 100 into 1000
The concept of success can be difficult to define.
Success is something that is elusive, elusive in nature. Most people quickly dismiss the thought of achieving anything with this elusive ability.
The goal of attracting more money is to inspire you to make more out of what you have.
A little goes a long way to help everyone achieve their goals.
Here are a few things you need to focus on for long term success:
Be disciplined. This is the key to getting results in any area of your life.
Practice. Practice, practice and more practice.
Work Hard. One of the most important steps is to work hard on your craft. This will lead to natural success in your field or area of expertise.
Find Mentors. Another important step in getting results is to find mentors who are already successful and take time to learn from them what they did, how they did it, and when. This will help you avoid the mistakes they made.
Spend Money to Make Money. Don’t be afraid to spend money on what will bring about success for you and your company. Spending time making sure that people know who you are and what you do is a great investment!
Time Block. Another key component to successful results is being disciplined with your time. Make sure that every hour of the day has been dedicated to a project that is going to bring you closer to your goal.
Start Now. The final step I have for you in this journey of success is the most important one, which is to do it now. Don’t put off what you know will make your business grow.
The most important thing is to do it now!
This post will help you double it and make 2000 fast!
Try these 10 simple steps to attract massive results
For many people, the thought of turning 100 into 1000 dollars is difficult to achieve.
They just see how quickly money dwindles away and they are stuck in the scarcity mindset.
Turning 100 into 1000 is not as easy as it seems. But, if you can get over that mental roadblock with these 10 simple steps, you are on the right path.
1) Set an income goal- you’re worth it! What do you want your net profit per year to be? Write it down. Whatever your number is, you need to double it as an income goal for now.
2) Maintain a positive attitude- be grateful and enjoy life! You deserve this!
3) Believe that you can do it- your future is bright!
4) Don’t give up hope on the things you want.
5) Give generously to others, but also hug yourself.
6) Write your goals down and post them for everyone to see, then read them aloud every night before bed!
7) Visualize the life you want- it’s time to create a life of abundance!
8) Take care of your body by eating right, exercising, and getting enough sleep.
9) Stay calm in the face of adversity- you’re an unstoppable force!
10) Believe in yourself and what you’re capable of- anything is possible!
Ready to turn $100 into $1000
What if you could make more money and live a better life?
How would that change your world?
This is why I gave you the simple steps to make 100 into 1000.
This is how can I turn $100 into $200? Then $100 into $1000.
If you want to make more money, this is one of the best ways to do it.
This is your first step on how to become financially independent.
You can be in business for yourself or create a company that will generate a lot of money. You can do this from home or anywhere that’s a good location for you.
In today’s era of online work environment, there is a growing trend to make money hustling on the side.
Trust me, any of these 100 into 1000 ideas is going to blow your mind.
Don’t keep reading; jump in and start doing it!
More Make Money Resources:
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
As an Amazon Associate and member of other affiliate programs, I earn from qualifying purchases.
This is the perfect side hustle if you don’t have much time, experience, or money.
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Having children brings many joys. But for women, it can also have a financial dark side. Becoming a mother often results in a loss of pay and opportunities for career advancement, a phenomenon known as the motherhood penalty. In fact, women experience a 60% decrease in income compared to men in the decade after their first child is born, according to PricewaterhouseCoopers’ 2023 Women in Work Index.
Many factors contribute to the motherhood penalty, and not every woman experiences it in the same way. Understanding the motherhood penalty can help women — and their families — sidestep this financial setback.
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How Does the Motherhood Penalty Work?
If you want to avoid the motherhood penalty and keep your budget on track, it pays to know your enemy. According to a 2023 article published in the scientific journal PNAS, women’s diminished earnings after the birth of a child is driven by both a reduction in employment and by lower earnings for those who remain employed. Let’s look at each of these factors.
Despite the fact that women today have achieved historic levels of education and are working at senior levels in the corporate world, they are still more likely than men to cut back on their working hours or stop working altogether after a baby is born. Some women may choose jobs that allow for more flexibility in hours even if those roles pay less.
Discrimination is a more insidious factor: Women make up nearly half of all U.S. workers and do the bulk of consumer spending, yet some hiring managers still believe that women’s earnings are not as critical as men’s for household support. (A quick look at any parent’s money tracker app would reveal just how untrue this stereotype is.) When two women are similarly qualified for a job, the one without children tends to earn more than the one who has kids. And when men and women hold similar positions, fatherhood seems to confer a salary advantage in many occupations.
Recommended: The Highest-Paying Jobs in the US
Why the Motherhood Penalty Matters
Dual-income households have been the norm among married couples for decades, and most households composed of married couples with children have two working parents, according to 2023 data from the Bureau of Labor Statistics. Families with two healthy incomes are most likely to be able to afford a home, and to be able to cover other large expenses, including the cost of kids. (A 2022 report from the Brookings Institution suggests that the average middle-income family today will spend more than $310,000 to raise a child to age 17.)
But the motherhood penalty takes an especially hard toll on families led by women. According to the 2023 Census, 21% of U.S. children are growing up in a household led by a single mother, who often has no other source of income than her own earnings. The motherhood penalty may contribute to the fact that nearly 30% of single-parent families are living below the federal poverty level.
Factors Contributing to the Motherhood Penalty
As noted above, the unspoken ideas that women belong at home caring for their children, or that women are not vital contributors to their family finances, continue to be a driver of the motherhood penalty. This is despite the fact that households where two parents work outside the home is now the norm in the U.S.
But there is another troubling scenario. Women may leave their job because childcare costs more than they earn. The cost of caring for an infant in a childcare center averages $15,417 per year per child. In big cities, the number climbs even higher: Washington, D.C. averages $24,243, for example. And even when women don’t stop working, they may scale back their hours, or take more flexible but less well-paid positions.
The motherhood penalty is unfair, and one additional factor adds to the unfairness: In households with two working parents, where each parent earns roughly the same amount, women still spend more time on caregiving responsibilities than men do — 12.2 hours per week on average, compared with 9 hours for men, according to a 2023 Pew Research Center report. Women also spend 4.6 hours doing housework to men’s 2 hours. Women’s work may be valued less, but as the old saying goes, it’s never done.
Recommended: Pros and Cons of Salary vs Hourly Pay
Tips to Avoid the Motherhood Penalty
So what can women do to safeguard their finances from the motherhood penalty?
Consider your career choice. Women can begin to protect their financial future while they are still contemplating a career path. Some research suggests that the motherhood penalty disappears for mothers who work in business and post-secondary education. And in STEM careers, and fields such as medicine and law, mothers actually appear to earn more than women who don’t have kids.
Stand up for fair earnings. Exercise your right to be fairly compensated with every step you take in the working world. Applying for a job? Do your research to learn what is a good entry-level salary. Offered a position? Learn how to ask for a signing bonus — with unemployment relatively low, employers in industries from retail to engineering may pay you to come on board.
Change jobs. Women may be less likely to change jobs after becoming mothers, as switching jobs can be stressful and time off is often allotted based on seniority. Yet changing jobs is one way to bump up your salary. When you do switch, make sure you understand what is a competitive pay rate. A growing number of states, including California, Colorado, and New York, have passed pay transparency laws that require employers to post salary ranges when they advertise job openings.
Don’t share your status. It’s unlikely that you’ll be asked during a job interview if you have caregiving responsibilities, as doing so may violate federal and state laws. But many women casually disclose that they are parents during the interview process without thinking twice about it. Avoid talking about your personal life when interviewing for a job and consider that many employers examine applicants’ social media feeds during their screening process.
Advocate for fair pay and families. Research suggests that moms in women-dominated and low-paid professions face the greatest motherhood penalty. To help promote equitable pay that can sustain families, you can support raising the minimum wage. Lifting your voice in favor of government support for affordable childcare and for mandatory paid parental/caregiver leave can also help ensure that women who want to stay in the workforce after having a child can afford to do so.
The Takeaway
Despite the fact that women are working outside the home in historic numbers, the motherhood penalty still exacts a perilous price for many women and their families. Acknowledging that women are financially penalized for becoming parents is a first step in fighting back against the stereotyping and discrimination that is often at the root of this problem.
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FAQ
What is meant by the motherhood penalty?
The motherhood penalty refers to the fact that women’s earnings suffer after they have children, sometimes due to discrimination in hiring or the awarding of promotions, and sometimes because women scale back on work or stop working altogether after having a child.
How does the motherhood penalty affect a woman’s career?
The motherhood penalty results in lower earnings, and because future earnings are often based on current salary, the diminishment in income often persists as a woman progresses up the ladder.
How can I avoid the motherhood penalty?
A primary way to avoid the motherhood penalty is to know your worth. Do your research on salary before taking a job, and reevaluate your salary at least yearly by looking at comparable positions.
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Buying your first home can be tedious and overwhelming.
While it’s exciting to visit properties and daydream about your dream home, getting over the financing hurdles is another story. But don’t fret.
This comprehensive guide for first-time homebuyers will walk you through the entire process from start to finish.
Benefits of Being a First-Time Homebuyer
As a first-time homebuyer, you may feel a mix of excitement and apprehension. While the home buying process can seem overwhelming, it’s important to recognize the numerous benefits that come with this milestone.
Financial Assistance
First-time homebuyers have access to several financial assistance programs that can make homeownership more affordable. These include down payment assistance programs, low-interest mortgage loans, and grants specifically designed for first-time buyers. Some of these programs are offered by state and local governments, while others are provided by non-profit organizations or private lenders.
Lower Down Payments
Several loan programs offer lower down payment requirements for first-time homebuyers. The FHA loan, for example, requires as little as 3.5% down if your credit score is 580 or higher. The USDA and VA loans even offer zero down payment options in some cases.
Access to Educational Resources
There’s a lot to learn when you’re buying a home for the first time, but fortunately, there are plenty of resources available. Many organizations offer homebuyer education courses that can help you understand the process and make informed decisions. Some lenders and assistance programs require you to take one of these courses, but even if it’s not mandatory, it can still be a valuable resource.
Before Starting Your Home Search
Check Your Credit
Not only will your credit score play a considerable factor in whether you’re approved for a mortgage, but it will also determine your interest rate.
A small increase or decrease in interest rates may not seem like a big deal. However, mortgage loans are for a hefty sum and for an extended period of time. So, a slight increase or decrease equates to thousands of dollars more spent or saved over the life of the loan.
To have the best chance of being approved for a home loan, you should aim for a credit score of at least 620. It’s possible to get approved for select home loan programs with a score as low as 580, but you may have fewer lenders to choose from.
Run the Numbers
It’s tempting for first-time homebuyers to start searching for homes when they know their credit score is up to par. But that’s probably not a good move until you determine how much home you can afford. Yes, the loan officer will give you a figure when you obtain a preapproval, but that amount isn’t always indicative of what you can afford.
Why so? Well, they focus on the debt-to-income (DTI) ratio to get an idea of a loan amount you qualify for. According to the Consumer Financial Protection Bureau, lenders prefer a DTI ratio of 43% or lower with your new mortgage payment. To illustrate:
CURRENT MONTHLY DEBT
GROSS INCOME
DEBT-TO-INCOME RATIO
MAXIMUM MORTGAGE PAYMENT (USING 43% RECOMMENDATION)
$1,000
$4,000
25%
$720
$2,000
$6,000
33%
$580
$3,000
$10,000
30%
$1,300
Note: Debt-to-Income Ratio = Aggregate Amount of Monthly Debt / Gross Income
The problem is that it fails to consider any expenses unrelated to debt. And if you have hefty insurance, childcare, or even grocery bills, that could be a major concern.
So, your best bet is to look at your current budget and come up with a realistic figure for your new mortgage payment. But don’t forget to keep the recommended DTI ratio in mind.
Explore Mortgage Options
There are several mortgage options on the market for first-time homebuyers, but the most prevalent are:
Conventional Loans
A conventional mortgage is a type of home loan that is not insured or guaranteed by the government. It’s typically offered by a private lender, such as a bank or credit union, and is the most common type of mortgage used to purchase a home.
Conventional mortgages typically require a down payment of at least 3% of the purchase price of the home. Borrowers typically must have a credit score of 620 or higher and a DTI ratio of 36% or lower to qualify. If you have bad credit or are unable to make a large down payment may have a harder time qualifying for a conventional mortgage.
If the loan amount is over $726,200, it becomes a jumbo loan and requires a higher down payment.
FHA Loans
An FHA loan is a type of home loan insured by the Federal Housing Administration (FHA), a government agency within the U.S. Department of Housing and Urban Development (HUD).
FHA loans are designed to make it easier for people to buy homes, especially for first-time homebuyers. They offer lower down payment requirements and more flexible credit guidelines than conventional mortgages.
The minimum credit score required for an FHA loan is 500. If your credit score is between 500 -579, the down payment is 10%. However, if you have a credit score of 580 or above, the down payment is 3.5% of the purchase price.
VA Loans
VA Loans are insured by the Department of Veterans Affairs. They don’t require a down payment and are easier to qualify for than conventional loan products. However, you must be an active-duty member of the armed forces. Surviving spouses also qualify.
USDA Loans
A USDA loan is a type of mortgage offered by the U.S. Department of Agriculture (USDA) to low- and moderate-income borrowers who are looking to buy a home in a rural or suburban area.
See also: 14 First-Time Home Buyer Grants and Programs
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Most mortgages have a 30 or 15-year term. The latter will cost you more per month, but you’ll save a load of cash on interest.
You can also choose from a fixed or adjustable-rate mortgage (ARM). Fixed-rate mortgages have the same interest rate for the duration of the loan. But ARMs typically start with a lower interest rate for a set amount of time. In fact, they usually span from five to ten years and then adjust depending on the housing market.
Some first-time homebuyers choose ARMs over fixed-rate mortgages because it gives them the option to make a smaller monthly payment in the first few years. It could also mean that you can qualify for a more expensive home. But, be careful not to get too overextended, as erratic market behavior could cause the rate to skyrocket.
Get Preapproved
This is one of the more time-consuming parts of the entire mortgage process for a first-time home buyer. The good news is you don’t have to settle for the first offer that comes your way out of fear that your credit score will take a hit.
“FICO Scores ignore [mortgage] inquiries made in the 30 days prior to scoring,” according to myFICO. So, you won’t be penalized for multiple inquiries.
So, start by researching mortgage lenders that you may be interested in working with. You could also solicit the help of a mortgage broker if you’re strapped for time or want someone to do the legwork for you.
Once you’ve settled on a few lenders, be prepared to provide the following to get preapproved:
Financial statements to confirm your assets, including retirement accounts and real estate
Recent bank statements
Last two pay stubs
W-2s from the last two years
They will also pull your credit report and credit scores. If you qualify, the mortgage lender will then provide you with a preapproval letter, valid for a certain time period, that specifies how much you’re eligible for.
Save Up for a Down Payment and Closing Costs
During the preapproval process, the lender should have discussed loan options that could be a good fit for you. They should also have communicated how much you will need for a down payment and closing costs.
While some sellers may be willing to cover closing costs, be prepared to provide earnest money to secure your offer. And you may need a large down payment if you’re taking out a jumbo loan, or don’t qualify for the FHA or VA loan program. If that’s the case, now’s the time to figure out a plan for it.
If the seller is not paying closing costs, expect to pay between 2% and 5% of the sales price. And if a hefty down payment isn’t required, it’s not a bad idea to bring money to the table. Doing so allows you to reduce the Loan-to-Value, which positions you as less risky to the lender.
You may also be able to avoid private mortgage insurance (PMI), which is required until you reach 20% in equity, and possibly qualify for a reduced interest rate.
How to Find the Perfect Home
Go Home Shopping
All squared away with a preapproval and planned to save up the cash you need? Now, it’s time to go home shopping. But before you go, you have to decide if you want to enlist the assistance of a real estate agent.
It’s possible to find a slew of listings within your price range on the web with minimal effort. However, real estate agents have access to a system that could expand your reach. Even better, they could be integral in helping you choose a home that’s a good buy and negotiating the final purchase price.
And the seller’s agent pays their commission, so no need to worry about forking over extra cash. Just be sure to hire a real estate professional that is seasoned and reputable.
Now for the fun part: home shopping. Be careful not to judge a home solely by its appearance. Some other important factors to keep in mind:
Taxes: are the property taxes affordable or beyond what you can comfortably afford? (You can roll property taxes and homeowners insurance into an escrow account, but they can easily make or break your budget if the figures are steep).
Location: is the home in an area that has historically held its value? Is the location optimal for your commute to and from work?
Crime: is it a high crime area or is it relatively safe?
Condition: how old is the property? Does it need tons of repairs, or is it close to being move in ready?
Floor plan: is the floor plan feasible or ideal for your situation? Would it be appealing to other buyers if you had to sell?
School district: how are the schools? Have they received a good rating, or do they struggle to stay afloat?
All of these factors can have an effect on the value of the property over time.
Submit an Offer
You’ve found the perfect home, and you’re ready to sign on the dotted. Before you can finalize the paperwork and move in, there’s one more important step. And that’s making the offer. Even if the sales price seems fair, you may need to make an offer that’s higher or lower to snag the home.
Why so? Well, there could be a slight or drastic bidding war going on, and the only way for you to win is to beat out the competition. Or maybe your real estate agent did some research and determined the asking price was a bit high based on similar properties in the area or the home’s current condition.
Either way, you want to submit an offer that stands out and gets accepted. Your real estate agent will be able to do so on your behalf. But if you don’t have a real estate agent, check out these letters from Trulia to get you started.
The Mortgage Process
Even after your offer is accepted, there’s still more work to do. You’re not done just yet! It’s time to move on to the mortgage process.
Remember that preapproval letter? The lender will make sure all the information you initially provided is accurate through a process called underwriting.
Depending on how long it’s been since you were preapproved, you may be asked to provide updated bank statements or pay stubs.
The faster you submit the requested information, the quicker you’ll get a response. So, don’t drag your feet if you want a closing date that’s sooner than later.
Home Inspections and Appraisals
Before you close on the home, you will need to have a home inspection and appraisal complete.
The home inspection shouldn’t cost you more than $500. It will give you an overall assessment of the property and identify any potential issues.
The appraisal also plays an integral role as it will give you a solid idea of the home’s fair market value. The lender will mandate it, but it’s not a bad idea to get an independent appraisal done to serve as a second opinion.
An inspection and appraisal may help you decide if you should lower your offer or walk away from the property.
Purchase Homeowners Insurance
Your mortgage lender will require that you take out homeowners insurance. So, you want to start shopping around for quotes and select a policy prior to closing.
Close on Your Loan
At last! You’ve reached the finish line, and it’s time to close on your loan. During the closing, expect to:
Sign a load of paperwork.
Provide any amounts owed for the down payment.
Pay closing costs, which could include property tax obligations, premiums for homeowner’s insurance and association dues, title insurance, and any other costs associated with finalizing the loan.
Pay discount points or prepaid interest that can reduce the interest rate.
But before you show up at closing, it’s a good idea to speak with the lender, so you’ll know what to expect. You can also request a copy of the final closing document, or Closing Disclosure, to see a detailed breakdown of expenses.
A Few More Tips
Here are a few more suggestions for first time home buyers to help you get approved for your first loan:
Refrain from applying for new credit before you close. This could throw off your DTI ratio, lower your credit score, and ultimately prevent you from closing on the loan.
State and local programs may be available to assist with down payments. If you’re low on funds, be sure to explore options that may be available to you.
Several builders offer buyer incentives, like allowances for upgrades and closing costs. So if you haven’t considered new construction, it may not be such a bad idea to take a look if the price points are within your budget.
Should You Rent, Instead?
Perhaps you’ve done a little legwork, ran the numbers, and are on the fence about home buying. You will typically find that it’s cheaper to make monthly mortgage payments than to pay rent.
You can also take advantage of tax deductions and build up equity as you’re making monthly payments. The equity can be borrowed against for a loan or put some extra money in your pocket should you decide to sell before the repayment period ends.
However, renting a home gives you the flexibility to move to a new location if the home isn’t quite what you expected, don’t like the neighborhood, or want something more affordable.
Furthermore, renting allows you to pass the costs of maintaining the home on to the owner. But as a homeowner, you’ll be responsible for costs associated with maintenance and repairs.
Another reason why some choose to rent over buying is the upfront costs. Most landlords require a security deposit. However, it could be substantially lower than the money you may have to bring to the table for the down payment and closing costs.
Ultimately, you have to decide which is the better fit: investing in an asset that could build wealth or continuing to pay rent until you feel the time is right. There is no right or wrong answer; it just depends on your personal preference and financial situation.
Bottom Line
By taking the time to learn about the home buying process, you’ll be well-prepared and save yourself time and headaches. Best of all, you’ll increase your chances of landing your dream home with the most competitive mortgage product on the market.
Frequently Asked Questions
What is the process for buying a home?
The process for buying a home typically involves the following steps:
Determine your budget and get preapproved for a mortgage.
Find a real estate agent and start looking for homes.
Make an offer on a home and negotiate the terms.
Get a home inspection and address any issues that are found.
Get a mortgage and close on the home.
How much house can I afford?
When determining how much house you can afford, there are several factors to take into account. You should consider your income, expenses, down payment, credit score, and mortgage type before making a decision.
A larger down payment can help you get a lower mortgage rate, and a higher credit score can qualify you for better rates and loan terms. Shopping around for mortgage rates and considering different types of mortgages, such as fixed-rate or adjustable-rate, can also help you find the best deal.
Keep in mind that owning a home involves more than just the monthly payments. You will also need to factor in property taxes, insurance, and maintenance costs. You should create a budget that includes all of these costs and leaves room for unexpected expenses.
How much money do I need for a down payment?
The amount of money you need for a down payment will depend on the type of mortgage you get and the price of the home you are buying.
Some mortgage programs, such as FHA loans, allow for down payments as low as 3.5%, while others may require a higher down payment. It’s a good idea to speak with a mortgage lender to determine how much you will need.
Can I buy a house if I have a low credit score?
It’s possible to buy a house with a low credit score. However, it may be more difficult to get approved for a mortgage, and you may have to pay a higher interest rate. Before applying for a mortgage, work on improving your credit scores, as this will help you qualify for a better loan and save you money over time.
How much will closing costs be?
Closing costs are fees that are paid at the closing of a real estate transaction. These costs can vary widely and may include things like mortgage origination fees, title insurance, and appraisal fees. On average, closing costs can range from 2% to 5% of the purchase price of the home.
What is a mortgage preapproval?
A mortgage preapproval is a letter from a lender that indicates how much you are qualified to borrow for a mortgage. The preapproval letter is based on a review of your financial information, including your credit score, monthly income, and debts. A mortgage preapproval can help you understand how much you can afford to borrow and can make you a more competitive buyer in the real estate market.
What is a mortgage rate?
A mortgage rate is the interest rate that you will pay on your mortgage. The mortgage rate will determine the amount of your monthly payments and the overall cost of your loan. Interest rates can vary depending on the type of mortgage you get and your credit scores.
What is PMI?
PMI, or private mortgage insurance, is insurance that is required by lenders for certain types of mortgages when the borrower has less than a 20% down payment. PMI protects the lender in the event that the borrower defaults on the mortgage. The cost of PMI is typically added to the borrower’s monthly mortgage payment.
If you’re trying to save some money, trimming some discretionary spending categories from your budget can be a good way to start.
But it isn’t necessarily the only or best way to save — especially if reducing or removing things like streaming services, concerts, or monthly massages from your budget makes it harder to stick to your plan.
Instead, it may make sense to track where your money is going for a few weeks and then take a look at all your spending categories to determine which cuts could have the biggest impact.
What Are Spending Categories?
Spending categories can help you group similar expenses together to better organize your budget. They can come in handy when you’re laying out your spending priorities, deciding how much money to allot toward various wants and needs, and determining whether an expense is essential or nonessential.
Many of the budgets you’ll see online use pretty much the same spending categories, such as housing, transportation, utilities, food, childcare, and entertainment. But you may find it’s more useful to track your spending for a while with a money tracker, and then create some of your own categories. You may choose to drill down to specific bills or go broader, breaking down your budget into just the basics.
By personalizing your spending categories, you may be able to put together a budget that’s more manageable — and, therefore, one you’re more likely to stay with.
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How Do Spending Categories Work?
To customize your spending categories, it can help to gather as much information as possible about where your money is actually going.
You can start by looking at old bank and credit card statements to get a good picture of past spending. Your bigger spending categories should be easier to figure out. Those bills are often due on the same day every month and are usually about the same amount. But you’ll also want to keep an eye out for expenses that come just once or a few times a year (such as taxes, vet bills, etc.). And, if you use cash frequently, you’ll want to determine where that money went, too.
A tracking app can help you grasp the hard truth about your spending as you move forward. That cute plant you bought for your windowsill? Pitching in for a co-worker’s going-away gift? Those little splurges can add up before you know it.
Once your spending picture comes into focus, you can divide your expenses into useful personal budget categories, and start thinking about what you might be able to trim or cut out altogether. 💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.
Examples of Spending Categories
Although it can be effective to organize your spending categories in a way that’s unique to you, there are a few basic classifications that can work for most households when making a budget: They include:
Essential Spending
• Housing: This category could include your rent or mortgage payment, property taxes, homeowners or renters insurance, HOA fees, etc.
• Utilities: You could limit this to basic services like gas, electricity, and water, or you might decide to include your cell phone service, cable, and WiFi costs.
• Food: This amount could be limited to what you spend on groceries every month, or it could include your at-home and away-from-home food costs.
• Transportation: Your car payment could go in this category, along with fuel costs, parking fees, car maintenance, car insurance, public transportation, and DMV fees. You could also include the cost of Uber rides.
• Childcare: If you need childcare while you work, this cost would be considered necessary spending. If it’s for a night out, you may want to move it to the entertainment or personal care category.
• Medical Costs and Health Care: This could include your health insurance premiums, insurance co-pays and prescription costs, vision and dental care, etc.
• Clothing: Clothing is a must-have, of course, but with limits. You may want to put impulse items in a separate category as a nonessential or discretionary expense.
Non-essential Spending
• Travel: This category would be for any travel that isn’t work-related, whether it’s a road trip or a vacation in Paris.
• Entertainment: You could get pretty broad in this category, but anything from streaming services and videogames to concerts and plays could go here.
• Personal: This might be your category for things like salon visits, your gym membership, and clothes and accessories that are more of a want than a need.
• Gifts: If you’re a generous gift-giver, you may find you need a separate category for these expenses.
Other Spending
• Savings and investments: Though it isn’t “essential” for day-to-day life, putting money aside for long- and short-term goals is a must for most budgets.
• Emergency fund: This will be your go-to for unexpected car repairs, home repairs, or medical bills.
• Debt repayment: Student loan payments, credit card debt, and other balances you’re trying to pay off could fit in this category.
Pros and Cons of Spending Categories
The idea of making a budget can be daunting, particularly if you’re trying to fit your needs and wants into spending categories that aren’t suited to how you live. Here are some pros and cons to using categories for spending that might keep you motivated and help you avoid potential budgeting pitfalls.
Pros
• More control: Creating a budget with spending categories that match your lifestyle can help you put your money toward things that really matter to you.
• Less stress: If you’re living paycheck to paycheck even though you know your income is sufficient to cover your needs, a budget with realistic spending categories can help you see where your money is going.
• Better planning: Whether you’re trying to save for a vacation, wedding, house, retirement, or all of the above, including those goals in your spending categories will help ensure they get your attention.
Cons
• May feel limiting: Working with a budget can feel restrictive, especially if you’ve been winging it for a while or aren’t including enough discretionary spending.
• Time consuming: It might take some trial and error to find a budget system that works for you. And if you’re budgeting as a couple, you’ll likely have to work out some compromises when determining your spending categories.
• Requires maintenance: Budgeting isn’t a one and done. You’ll be more likely to succeed if you consistently track your spending to make sure you’re hitting your goals.
Common Spending Categories to Cut First
Often when you see or hear budgeting advice, it tends to focus on cutting back on small extras — $6 daily lattes at your favorite café, for example, or those weekly Happy Meals for the kids. Some other top spending categories that traditionally are among the first to hit the chopping block include:
• Gym memberships
• Dining out
• Subscription services you don’t use anymore
• Cable
• Personal care services you can do at home for less, such as manicures and pedicures
• Alcoholic beverages
• Cigarettes and vaping products
• Vacations
But it can also be useful to review, and potentially cut back on, how much you’re budgeting for basic living expenses, such as:
• Clothing and shoes
• Utility bills
• Groceries
• Insurance
• Cars
• Cellphones and computers
• Rent
Tips for Customizing Your Spending Categories
As you create your spending plan, keep in mind that it doesn’t have to be like anyone else’s. If you track your expenses and use that information to create your personalized budget, you may have a better chance of building a plan you can stick with.
Here are some more steps to consider as you get started:
• Be realistic. It may take a while to get to your goal, but doing even a little bit consistently can make a difference. Know yourself and do what you can.
• Don’t forget irregular expenses. Bills that you pay every month can be easy to remember. (You might even put them on autopay to make things more convenient.) But infrequent expenses such as tax bills can get away from you if you don’t include them in your spending categories.
• Avoid spending more than you have. Knowing how much you’ll have left after taxes each month is an important part of successful planning. An emergency fund can help you stay on track when unexpected expenses pop up.
• Leave room for fun. Eliminating date nights and small splurges completely could make it much harder to stay with your plan.
• Pay yourself. Make saving and investing goals a separate spending category.
• Find a budgeting method that works for you. Whether it’s the popular 50/30/20 budget — which divides your after-tax income into needs, wants, and savings — or a detailed spending breakdown with multiple categories, try various budgeting methods until you find one that motivates you.
💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
Want to save some money but know you need to make some changes? Monitoring where your money is going every month can help you create a spending plan with categories that are customized to your needs, wants, and goals. A plan that’s realistic, but not too restrictive, can give you the kind of control and motivation you need to get and stay on track financially.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
With SoFi, you can keep tabs on how your money comes and goes.
FAQ
What are the four main categories in a budget?
The four main spending categories for most budgets are housing, food, utilities, and transportation. Once you’ve established how much you’ll need to cover these costs, you can move on to planning for other expenses.
What is the 50/30/20 rule of budgeting?
The 50/30/20 rule is a budgeting method that allocates your take-home income to three main spending categories: needs or essentials (50%), wants or nonessentials (30%), and saving or financial goals (20%).
What are the four characteristics of a successful budget?
A successful budget usually includes accurate income and spending projections, realistic and personalized spending categories, consistent and frequent check-ins, and solid savings goals.
Photo credit: iStock/mapodile
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