Inside: Are you confused about how gross pay and net pay are calculated? This guide will clear everything up. Learn about the different deductions that are taken from your paycheck, as well as the tax rates that apply to your gross pay.
This is one of the most confusing questions for many people.
So, if you are wondering what the difference between gross pay and net pay, you are in the right place.
In order to become financially stable, you need to have a tiny amount of financial literacy.
If you’re like most people, you probably think of your “gross pay” as the amount of money you make before taxes are taken out. But in reality, gross pay is your total compensation from your employer before any deductions are made.
So what is “net pay,” then? Net pay is the amount of money that actually goes into your bank account or paycheck after all of those deductions are made.
Now you want to which one is more important between gross pay and net pay.
The answer is: it depends! If you’re trying to save money or make a budget, then net pay is probably more important to you. But if you’re trying to figure out how much taxes you’ll owe at the
We will dive into all of the details, you will not ever be confused again.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is gross pay?
Gross pay is the total amount of money earned by an employee before any taxes or deductions are taken out. It’s important to know your gross pay as it determines your overall income and can impact your taxes and benefits.
This is the total amount paid by your employer.
Knowing your gross pay is crucial for financial planning and paying taxes.
How can I calculate my gross pay?
To calculate gross pay, you need to know your hourly wage or salary, any overtime pay, bonuses, and additional reimbursements for work-related expenses.
For hourly workers, multiply the hourly wage by the number of regular hours worked within a pay period and include the overtime pay rate for any extra hours.
For salaried workers, multiply the gross monthly income by 12 to find the annual gross salary.
To calculate a paycheck, start with the annual salary amount and divide it by the number of pay periods in the year.
Find out 5000 a month is how much a year.
What deductions are taken out of gross pay?
Gross pay refers to the total amount of money an employee earns before any deductions are taken out.
As such, there are no deductions.
Learn what is annual income.
How are taxes calculated on gross pay?
Gross pay is the amount an employee earns before taxes and deductions are taken out by their employer.
Understanding taxes on gross pay is essential, as it affects an employee’s take-home pay and tax liability.
Taxes that are deducted from gross pay include FICA payroll taxes, federal and state income tax withholding, along with any state-mandated programs like this Colorado Paid Sick Leave.
To calculate taxes on gross pay, an employer uses a formula that subtracts all taxes and deductions from the gross pay amount. Learn how much you should withhold on your taxes.
Common issues that may arise during tax calculation include incorrect tax withholding and not considering voluntary pre-tax deductions. Understand why do I owe taxes this year.
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For U.S. taxpayers, you will find helpful tips in this new edition to help you apply the new tax incentives to your situation.
Tax breaks are not only for the rich. It is for everybody! You just have to take time and learn it.
What is net pay?
Net pay refers to the amount of money an employee takes home after all deductions and taxes have been taken out of their gross pay.
This is the money left over that you can spend, save, and invest.
Thus, you will be able to budget by paycheck like a pro!
How to calculate net pay?
Calculating net pay is crucial for accurate and compliant payroll management.
Here is a step-by-step guide on how to calculate net pay:
Determine the gross pay based on hours worked or salary divided by the number of pay periods in the year.
Subtract mandatory deductions, including health insurance premiums, federal, state, and local income taxes, payroll taxes, and court-ordered wage attachments.
Subtract voluntary deductions, such as employee contributions to a 401(k) or other retirement plan as well as any flexible spending account.
The resulting amount is the employee’s net pay.
Learn about annual net income.
What deductions are taken out of net pay?
Net pay refers to the amount of money an individual receives after taxes and other necessary deductions have been subtracted from their gross pay.
It is a crucial factor in determining an individual’s income, as it represents the actual amount of money they take home.
There are various deductions that are commonly taken out of net pay, including mandatory and voluntary deductions.
Mandatory deductions are made in accordance with the law, while voluntary deductions are ones that employees have the freedom to opt out of.
The mandatory deductions include:
Federal, state, and local income taxes
Social security taxes
Medicare taxes
Local state or municipal taxes
Other common voluntary deductions from gross pay include:
Health insurance premiums (if signed up on a company plan)
Retirement contributions
Health savings account contributions
Flexible spending account contributions
Dependent Care FSA
Is gross before or after taxes?
Gross pay is BEFORE taxes.
Gross pay is the amount earned before taxes and other deductions are taken out. Taxes are then calculated based on the gross pay amount and deducted to arrive at the net pay. This means that gross pay is always before taxes.
Understanding the difference between gross pay and net pay is important to effectively manage finances.
Gross pay may seem like a large amount, but it is important to consider the impact of taxes and other deductions on the final amount received.
What is the difference between gross pay and net pay?
Gross pay and net pay are two important terms that employers and employees should understand.
Gross pay refers to an employee’s total earnings before any deductions are taken out, while net pay is the amount an employee takes home after deductions such as taxes, benefits, and garnishments have been subtracted.
Here are some key differences between gross pay and net pay:
Gross pay includes all earnings, such as wages, salary, reimbursements, commissions, and bonuses, while net pay is the actual amount of the paycheck after deductions.
Employers are responsible for deducting necessary expenses from an employee’s paycheck and making payments to the appropriate accounts before issuing the check or depositing the net pay into the employee’s bank account.
Gross income determines an individual’s federal income tax bracket and borrowing capacity, while net pay presents disposable income.
When budgeting for the year, starting with gross wages requires subtracting the total of taxes and other deductions to compute the actual amount left to spend from each paycheck.
Understanding the difference between gross pay and net pay is crucial for effective budgeting and financial planning.
Employers must ensure proper employee taxes are collected and paid to the government, while employees need to know their take-home pay to manage their expenses.
How do gross pay and net pay work?
Gross pay and net pay are two important terms in the payroll world that employees should understand to manage their finances effectively.
Gross pay is the total amount of pay while net pay is the amount of money you have to spend each month.
Understanding the difference between gross and net pay can help employees and employers avoid confusion and manage their finances better.
What is better gross pay or net pay?
One term is not “better” than the other as they each have different meanings.
When you increase your gross pay, your net pay will rise as well.
Here is how to use gross pay to your advantage:
Provides a clear understanding of the employee’s total compensation
Helps employees plan for future expenses
Can be used as a basis for negotiating salary increases
Figure out the amount of taxes you are required to pay.
Here is how to use net pay to your advantage:
Reflects the employee’s actual take-home pay
Helps employees budget for their expenses
Provides a clear understanding of the impact of deductions on their pay
Can be difficult to compare with other job offers that list gross pay
Overall, net pay is better for employees as it reflects their actual take-home pay and helps them budget for their expenses.
However, it’s important for employees to understand both gross pay and net pay to make informed decisions about their compensation.
Why do you receive more gross pay than net pay in your paycheck?
Employees receive more gross pay than net pay in their paychecks because gross pay is the total amount of money an employee earns before any deductions are taken out.
This includes an employee’s salary, wages, commissions, and bonuses.
On the other hand, net pay is the actual amount of money an employee takes home after taxes, benefits, and other mandatory deductions have been subtracted from their gross pay. These deductions can include federal and state taxes, Social Security contributions, health insurance premiums, and retirement plan contributions.
Therefore, employees receive more gross pay than net pay.
Learn is social security disability income taxable.
FAQs
Overtime wages are included in gross pay when an employee works more than their regular hours and earns additional compensation for the extra hours worked.
This is the case for nonexempt employees who are entitled to overtime pay under federal or state law.
Net income is the take-home pay or the money that you earn on payday, which is why it may be best to focus on that number when creating a budget.
This number helps you determine how much you have to spend, save, or invest.
By tracking your expenses and using budgeting techniques like budgeting with percentages or the 50/30/20 rule, you can manage your finances effectively and make the most out of your net income.
Remember, creating a budget is about being realistic and disciplined with your spending habits, so make sure to adjust your budget accordingly as your income or expenses change.
The tax rates for gross pay depend on the specific taxes being withheld, such as federal income tax, Social Security tax, and Medicare tax.
Federal income tax rates vary depending on the employee’s income level and filing status, with higher earners generally paying a higher percentage of their gross pay in taxes. Click here for the latest federal income tax brackets.
Social Security tax is a flat rate of 6.2% for the employee on the first $$160,200 of gross pay earned. Your employer must match the same contribution. (source)
Medicare tax is a flat rate of 1.45% on all gross pay with the employer matching the same percentage, with an additional 0.9% tax for high earners. (source)
Employees need to understand their tax liability based on their gross pay to accurately calculate their net pay and avoid any surprises come tax time.
Now, you Know the Difference between Gross and Net Pay
Understanding deductions and their impact on net pay is crucial for employees to accurately budget and plan their finances.
Since you know the difference between gross and net pay, you can make sure that you are getting the right amount of money in your paycheck.
Be sure to check your pay stubs carefully to make sure that all of the deductions are correct. If you have any questions, be sure to ask your human resources department.
Know someone else that needs this, too? Then, please share!!
The financial industry generally places more emphasis on style than substance. Because of this, when their work is actually evaluated, results tend to be disappointing. Wall Street’s earnings forecasts? Overly optimistic. Performance of mutual fund managers? Quite embarrassing. You may be wondering: Do Morningstar ratings also belong in the same category?
You’re probably familiar with Morningstar and their one- to five-star mutual fund ratings. Many investors rely on Morningstar for stock and mutual fund research, and mutual fund companies love using Morningstar ratings in their marketing materials. But is there any value in a five-star Morningstar rating? (Disclosure: I use Morningstar software sold to investment advisors almost everyday.)
The Morningstar ratings for one of the funds J.D. owns.
Fortunately for us, researchers recently looked into these ratings and published their results. They compared Morningstar ratings to fund expense ratios as a predictor of future performance.
The expense ratio is the annual fee for investing in a fund. This fee is charged by the mutual fund manager, and it’s one of my favorite metrics. If you assume that mutual fund managers have no value — which I find to be a very good approximation — you would expect lower costs to predict better performance. And the report found just that:
Expense ratios are strong predictors of performance. In every asset class over every time period, the cheapest quintile produced higher total returns than the most expensive quintile.
What about Morningstar ratings? Five-star ratings predicted better performance than one-star ratings in 13 of 20 observations — a success rate of just 65%. That sounds pretty good on its own, but it’s still worse than a metric that anyone can look up in seconds.
Since Morningstar uses prior performance (after fees) to calculate its ratings, the ratings already include information about expense ratios indirectly. So what is Morningstar adding with its fancy algorithm? Let’s use a little high-school algebra to find out. (Geek Alert!)
Morningstar Rating = Expense Ratio + Morningstar’s Additional Analytics
And we just found out that:
Expense Ratio > Morningstar Rating
Finally, using my graduate degree in math, I get this:
Morningstar’s Additional Analytics < 0
Yes, Morningstar’s algorithm is horrible. And that’s not all.
Morningstar reserves its five- and one-star ratings for the top and bottom 10% of funds. However, the researchers conducting this study divided expense ratios into quintiles — or, as normal people would say, 20% buckets. The expense ratios were handicapped by using 20% buckets instead of 10%, and still beat Morningstar ratings. Ouch!
Well, there’s one thing I forgot to tell you. People have performed this evaluation many times with similar results, so it isn’t news to serious students of investing. The interesting part of the report I quoted is the publisher: Morningstar. If you read its report [PDF], it sounds like a politician answering a tough question — uncomfortable. Independent thinkers can go directly to the results here [PDF].
Note: After writing this, I noticed that Morningstar clarified that ratings are indicators of past performance, and should not be used to predict future performance. If Morningstar were concerned about substance, it would tailor its ratings to how investors actually use them — as an indicator of a good investment. If it did that, most five-star rated funds would just be index funds. Unfortunately, Morningstar emphasizes style (and money), so it ends up with an imperfect rating system that benefits one of its biggest clients: mutual funds.
Another Note: Morningstar responded to a version of this article that was published on Mariposa Capital Management’s blog in August. You can read the comments here.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The ripple effect of a financial mindset can be seen in every aspect of your life.
Think about it: If you are not mindful of how you spend and save money, then you will be in a constant struggle each and every month.
If you are simply someone who is struggling to make ends meet, there are many things we can do to save money. If you are trying desperately to reach financial freedom sooner, then you need these best money hacks to make it happen sooner.
Around here at Money Bliss, we spend a lot of time on our money mindset and setting goals.
Everyone is in a different season with their finances.
But, one thing is true… Most of us never learned proper money management.
Do you find yourself in a constant cycle of financial struggle? Do you feel like you are constantly trying to live up to unrealistic standards?
It is easy for people to feel that they are constantly broke, and in some cases this is true. But, it is also important to remember that there are ways in which you can make more money and start saving for your future.
Since changing money habits does not always come easy and often requires some serious changes in our mindset, we are here to support you to find the top money hacks.
Read on as we share 50+ ways you can start saving more money as well as making more money while also saving your sanity!
What are Money Hacks?
Money hacks are the ways in which people stretch their money.
These money hacks can come from a variety of sources, such as personal experience, family members or friends, and other individuals on social media.
Money hacks can come in many forms such as:
Simple money saving hacks
Ways to make money on the side
Strategies to make every dollar count
Thrifty ideas to be more frugal
Ideas to be more conscious of our waste
All in all, money hacks will help you to spend less money. Thus, saving more money.
As you will learn at Money Bliss, saving money opens up doors of opportunities
Best Money Hacks
Money hacks are ways to build long-term wealth.
Even though most of the hacks for money include quick saving wins, over the long term, you will actually start a snowball effect of more money in your bank account.
Sometimes, it can be difficult to find the motivation to save money, but these 7 best real money hacks will help you reset your financial mindset and start saving!
The best money hacks are the overarching big picture concepts that you must master for long-term success.
1. Think Big
Open up your mind.
One way to reset your financial mindset is by opening yourself up to new ways of thinking about spending and saving.
Too often, we are focused on what is directly in front of us instead of thinking about the big picture.
A great way to think big with your finances is to decide how you want to live life with intention.
2. Habit of Saving Money
Get back in the habit of saving.
If you have been beyond your means or barely scraping by, the best way to get back on track is by saving at least 20% of your income.
This may seem a little ludicrous. However, by prioritizing saving first, you will be pleasantly surprised how well you live off the rest.
In this post, there will be so many simple and easy ways to start saving today.
3. Make a Plan for Your Money
Create a spending plan (aka that dreaded word budget).
Creating an outline for what you want and need will help you to make smarter decisions about your spending.
This concept has been made too difficult over the years.
The bottom line is you want to spend less than you make. So, make a plan for that to happen today.
4. Make Money on the Side
This one is huge!
Personally, making extra money has been a priority for the last 5 years. We spent many years trying to cut our expenses and hating our inability to actually spend less as a growing family. So, we changed our focus to finding ways to make more money instead.
Start a side hustle. If you are not making enough to live comfortably, start a side hustle! Use your unique skill set to make extra cash.
Pick up a second job or ask for more hours.
There are plenty of ways to make money fast.
5. Invest in Stock Market
This means a way to make money or increase your net worth. AKA make your money work for you.
Too many times, the concept of investing is big and scary. The thought of starting is way too overwhelming. So you put it off until next week or next month. Then, a couple of years go by and you have not invested your money.
That is the biggest financial mistake you can make.
Start small by investing in an index fund. Each month consistently add more money.
If you want to learn to trade stocks, then you must enroll in the best investing course I have found.
Read my in-depth investing course review.
6. Pay Off Debt
Ugh… debt is the cash flow killer.
You are unable to make forward progress if you are straddled by debt.
Figure out how to pay off debt ASAP.
When calculating how long it will take to pay off high-interest debt, you should consider paying the highest interest rate first. Here is the best debt payoff app available.
7. Watch Your Spending
Be mindful of your spending.
This is a great practice that many people need to start doing again, regardless of how much money or how little money they have.
Every few months, you need to evaluate your spending to see if it matches up with your values.
As you can imagine there are many money hacks that can help you save, but the list above is the money hacks that will make the biggest difference the quickest. Below we have many more money hacks for you to explore.
Hacks for Saving Money
Money app hacks are small, quick, and easy ways to improve your finances.
They can range from things like automating your budget or creating a money jar that pays for itself, to more complex solutions like changing your tax withholding or moving money around to get a higher return.
Honestly, there are so many life hacks for saving money.
8. Automatic Savings
This is a practice of automatically transferring money from your checking account into your savings account on a regular basis.
It is best to set a transfer amount and stick to it.
Since it is easier to save your money before you spend it, you must save as much money as possible in order for this strategy to be effective.
9. Financial goals
A financial goal is a long-term, quantifiable expectation for how much money you want to have, or what you plan on doing with your money. Your goals can be as simple as saving for the down payment on a house or as involved as saving for retirement.
Our financial goals allow us to set specific, numerical targets that help us achieve our desired lifestyle in a more concrete way.
You must set smart financial goals.
10. What brings you joy?
At the end of the day, it is important to remember that life is all about finding what brings you joy.
The question is open-ended, but your money must line up with what brings you joy.
Spend a few minutes and stew on the question.
11. Build an emergency savings fund
Building an emergency savings fund is a great idea if you are in the habit of saving money and want to make sure that you have some money saved up when times get rough.
If you are struggling to save, there are a few ways you can increase your savings.
For example, you might be able to set up automatic transfers from your checking account into an investment account. You should also make sure that you have a way to save money outside of your checking account.
Saving cash in a jar or saving up coins are ideas for some people.
12. Invest spare change
If you go shopping and buy something, most stores will give you change. If you use a debit or credit card, you can do the same thing with help of a popular app!
Simple money hack: investing your spare change.
In order to invest your spare change in an account, you can open one for as little as $5. Acorns then automatically invest the money from your checking account and into a savings acorn account.
As the round-up feature continues to add upon each purchase, it is a good idea to invest in this app so that you can save more dollars!
13. Challenge Yourself to Save
If you are looking to save money, it is best to set up a budget that includes challenging yourself.
A great way to do this is with the no spend challenge.
A no-buy is when you decide to simply not make any purchases for a certain amount of time.
A no-spend is when someone decides to not spend any money in a certain period of time.
When you are struggling with spending too much money and want to reset your wallet, then give up spending money. Period.
14. Join a buy nothing group
The buy nothing groups are a growing movement that started in order to help people cut their ecological footprint, save money, and break free of consumerism.
This is a great way to find things you need as well as declutter your house.
15. Negotiate everything
The key to successful negotiation is preparation.
Research the company’s past sales, price changes, and discounts offered in order to get a better understanding of what you’re negotiating for.
Don’t be afraid to negotiate.
What is the worst thing that can happen when someone says no!?!
16. Refinance Your Mortgage
It is never too late to refinance your mortgage.
In fact, it might be a good idea if you’re in the market for a new home or refinancing your loan on an existing property.
You must weigh the costs of refinancing to how much you will save over the time period of the loan.
Ask around for mortgage broker recommendations and get at least two quotes.
17. Downsize your Home
Downsize your home is the term for reducing a residence in size. This can be done by either moving to an apartment or buying a smaller house. There are many benefits of downsizing, including living a more affordable lifestyle and having less upkeep.
Downsizers use their homes as investments and save money on rent or mortgage payments.
18. Cut the cord
With the internet becoming accessible to everyone, people have started cutting their cable and watching shows online. People can save up to $500 a year by cutting cable from their bills.
Cut the cable & stop watching TV!
19. Learn about Finances
Ask for help.
If you are struggling, there is no shame in asking for assistance from your friends or family members.
The goal is to get ahead with money and not keep digging further into a hole.
Check out any of our courses to help you.
20. Save for What You Want
Decide what you want most and work towards it with the money you have now, instead of waiting for a windfall or a large inheritance.
This may mean setting aside $200 a month.
For example, as a reminder of your long-term goal of buying a beach property, you may buy something you would hang in the new place. Every time you see it, you will be reminded of what you are saving towards.
Budget Hacks
Financial hacks are not unusual.
Since it is so easy to overspend, you must know a few budgeting hacks ahead of time.
21. Need vs Want
A want is a desire for something, while a need is something that fulfills the requirement of your body like food or shelter.
When you think about buying something, ask yourself if it is a want or a need.
By uncovering needs vs wants, you are quickly able to find ways to spend less and save more.
22. Avoid Temptation
To avoid temptation, it is important to maintain a healthy amount of physical and emotional distance from the things that tempt you.
Sometimes, spending triggers are easy to avoid but other times they’re not.
However, people should always be aware of their temptations and try to stay away from them because it will lead to unnecessary debt or stress in the long run.
23. Practice the 30-day rule
Many people wonder what’s the 30 day rule with money…
The 30-day rule is the principle that states that you should practice a new habit or stop an old habit for at least thirty days before expecting success.
When it comes to your money, it means to wait thirty days before making big purchases or changes.
24. Keep a Budget Binder
A budget binder is an important tool that helps people keep track of their finances.
The binder can help people plan out their finances by providing a place to record expenses and income.
Keeping a budget binder is an effective way to track your spending and keep yourself accountable.
By keeping it, you can easily plan for future expenses in advance as well as see what money could be saved or spent on different items over time.
25. Get a spend tracker and use it regularly
Track your spending for 30 days. It can be a good idea to track your spending for at least a month to get an idea of what you’re spending and where.
A spending tracker is a tool that helps people keep track of how much they are spending on a certain item. It is important to use this tool regularly in order to be able to see patterns in your spending.
Then, review your spending. Share it with a trusted friend or family member to come up with some goals to reduce expenses in order to save money.
26. Create a budget
Create a budget, and follow it.
When you schedule your spending, make sure to leave room for savings. This is the easiest way to ensure that you can stick to your budget.
Find more budgeting resources on our site.
27. Pay Bills on Time
This should be a simple statement that we all know. However, life can throw curveballs.
Try to pay your bills on time and in full every month, and make sure all of your bills are paid each month.
This will show lenders that you are responsible and that you are taking care of your credit. Plus you don’t rack up those pesky late fees and high interest rates.
28. Avoid Missed Payments
Don’t miss any payments, and pay off your balances each month to avoid paying high interest rates or fees on late or missed payments.
Read again… do not miss paying your bills.
29. Reconcile Your Checking Account
Balance your checkbook monthly. Okay, no one really uses a checkbook anymore, but you can still do this with pen and paper.
Even better, use Quicken as a simple way to balance your checking account. Read my Quicken review.
This is a great way to check for being charged too much or find a subscription you don’t use anymore.
30. Avoid Summer Budget Busters
Avoid spending money for the summer by just being conscious of your spending and reviewing what is different than the norm.
It is too easy to get into the trap of spending money because the weather is warm.
31. Review your Credit Card Statements
If you’re like most people, you probably review your credit card statements once every six months.
What’s the best way to go about reviewing them?
It depends on how often you use your credit card, how much debt you have, and what your credit score is. You should review your statements at least once a year if you’re carrying a balance on your credit cards.
If you use your credit card, then you should review your statements at least monthly.
32. Use the Cents Plan Formula
While the 50/30/20 budgeting rule is popular, our method of budgeting your money will be more helpful.
Learn how to divide your income into various categories.
Check out the Cents Plan Formula.
33. Use Cash
Use cash instead of credit cards to spend, which will make it easier to limit yourself to how much you can spend.
The envelope system helps you save money by only spending from one designated cash stash each month and withdrawing a set amount for different types of expenses (like groceries).
34. Spending Freeze
Implement a spending freeze, which helps you get used to not buying things for an allotted time so that when the freeze is over, it’s easier to buy what you want.
You will be surprised how much random online shopping you do.
Begin your spending freeze now.
35. Use a Budgeting App
Use your bank’s budgeting tools, like Quicken, which can help you track how much money is coming in and out of your account.
This is the simplest way to manage your money wisely.
Using a money app or a personal finance website can help you to stay organized and get more creative about your budgeting.
Check out this list of the best budgeting apps available.
Hacks to Make Money
Hacks to make money are a list of ways to generate income for yourself. Many ways to make money include blogging, affiliate marketing, or day trading. These money making hacks are great, but they can take more time and energy invested.
36. Use cash back apps
Cash back reward apps like Ibotta are a way to get extra money for your purchases.
They take some time getting used to and you only have access to partner stores that offer cash-back offers. It only takes a few seconds to make some extra cash.
Check out the best cash back apps available.
37. Ask for a Raise
A raise is an increase in pay for a job, labor, or service.
If you are concerned about asking for a raise, then you are missing out on lost money.
Your boss may be receptive to it, then try negotiating more money. Not only will this be good for your career, but also the relationship between you two can improve as well.
38. Get a side hustle
A side hustle is an additional job or career, usually, one that requires only a small amount of time and effort.
For example, someone who wants to work on the weekends might start a side hustle as a bartender.
Side hustles are a form of entrepreneurship that allows you to earn money and do little tasks. They are not difficult or time-consuming, but they can still help you make extra cash on the side.
Pick one of the best gig economy jobs.
39. Rent out a part of your home
A part of your home is often a room, which can be rented out on Airbnb.
Airbnb is the largest and most successful company in the world that lets people rent their extra space or properties. They are a well-known company that provides an easy way for people to make money from their extra space.
Use Neighbor to lend out your space in your home.
40. Declutter: sell your junk for cash
Decluttering is the act of getting rid of excess or unnecessary items.
In order to declutter, you must be willing to give up something that has been a part of your life for a long time. It is important to remember that decluttering does not have to be a quick or easy process.
Then, sell your stuff on Facebook Marketplace, Nextdoor, eBay, etc.
Learn more at Flea Market Flippers.
41. Earn Money While Watching TV
Although it is not a fast way to get rich, this can be used as a side hustle.
It’s better to use the money earned from watching TV or something else that takes up your time for other things like bills and groceries.
Survey platforms are online sites that allow people to earn money while watching TV.
The survey platform will send surveys through the mail or email, and then they can choose whether they want to take the survey for a set reward amount or if they would like cash back on their purchase.
One of these options is MyPoints, which allows users to earn points by completing tasks such as taking surveys and shopping online at specific retailers.
Others include:
42. Maximize Your Income
Find ways to increase the amount of money you bring in, whether that’s through a side hustle, increasing hours at work, or asking for a raise.
In today’s society, there are plenty of ways to make more money.
Only you put a limit on what you are capable of earning.
43. Build Your Credit
Building your credit can be a long process, but it’s worth the effort. If you’re trying to establish or improve your credit score, here are some tips that might help:
Try to keep your credit utilization rate below 30% at all times.
Do not open too many new lines of credit in a short period of time.
Pay your bills on time.
This will help you avoid damaging your credit score.
Hacks for Free Money
Hacks for free money are a form of fraud wherein the perpetrator solicits payment via PayPal, credit card, or other methods in exchange for access to what they promise will be a legitimate business opportunity.
Hacking free money is a way to make more cash, fund your financial goals, or help you pay off debt. There are lots of ways that people hack their finances and use cash back apps for some extra income.
Other options include signing up for bank bonuses or credit card bonuses.
Honestly, real free money hacks are more likely to be scams. So, beware when searching online.
Money Hacks in the Kitchen
You can save the most money by looking at what you eat.
Typically, people waste over 25% of their grocery budget and throw out food. Would you willingly throw out $250 a month? Probably not.
So, learn how to stretch your money for food.
44. Start meal planning
Meal planning is a money-saving strategy that can help in the long run. It’s also important to eat healthily and reduce food waste when meal planning.
But planning ahead will help save on the grocery budget, and it’s not too late to start now.
Start meal planning by deciding what you want to eat for each day. Then, make a list.
45. Say no to prepackaged foods
Packing your lunch for work or school can be time-consuming, especially if you have a family.
Some people prefer to buy prepackaged foods because they save time, but this is not always the best option.
A better choice is to make your own food at home and pack it for lunch, which you can then eat in peace without worrying about what other people might be saying about the food you packed.
46. Eat at home
Eating at home is a way to save money. It may be uncomfortable for those who do not enjoy cooking as it requires extra effort and time.
Instead of getting food at restaurants, consider cooking your favorite meals at home.
You can save money and time by eating the same meal over and over again.
Learn about the frugal home must haves.
47. Grow your own herbs and food
The most common methods of gardening include container gardening, hydroponics, and both indoor and outdoor gardening.
Many people are growing their own herbs and food for the satisfaction of being able to eat something that was grown with their hands.
48. Take your lunch
If you are interested in saving money, consider taking your lunch. This will save you up to $1,000 a year on work lunches and make it easier to meet the recommended daily intake of fruits and vegetables as well.
“Take your lunch” is an invitation to eat at home. There are many benefits of eating out less often, such as saving money and gaining more control over food choices.
Travel Hacks to Save Money
The following are travel hacks that can help you save money on your next trip.
Some of these hacks include traveling during weekdays, using public transportation, staying at hostels and Airbnb instead of hotels, and using a travel credit card.
49. Use foreign websites for lower prices abroad
Foreign websites are websites that have been created by people from other countries, and they sell products in the language of their country. These websites often offer lower prices on products than what is offered in the United States.
If you’re traveling abroad and need to find a place to stay, there are plenty of websites that can help. A few websites have deals on places where travelers often stay while they travel internationally.
50. Stay for free or get paid to house sit abroad
A house sitter is someone who looks after someone’s property for a certain amount of time in exchange for the promise of payment.
House sitting is typically offered by homeowners to travelers and others who are looking to stay in a particular location for an extended period of time.
The main types of house sitting include:
– full-time house sitters, who are responsible for all aspects of the house and who are typically paid a monthly salary,
– part-time house sitters, who may be responsible for taking care of one or more specific tasks such as gardening or handling the mail
51. Hide your search
To avoid being taken advantage of by airlines, it is best to open a new incognito or private window between searches.
This will make sure that you are not tricked into buying tickets that may be significantly more expensive than they need to be.
Airlines use cookies in your browser to make you believe the prices are going up and up.
Money App Hacks
Money app hacks are ways that people have figured out to make their money work for them in terms of saving and spending. These apps offer different features, such as budgeting, tracking your spending, and saving money.
If you want a simple way to save money, then any of these money apps are designed to find excessive spending.
52. Billshark
This is a legitimate way to save money on monthly bills. Billshark offers you the opportunity to save up to 25% each month (when compared with regular bill payments).
All of this can be done for you by BillShark team, and there are no fees involved!
Try Billshark for free!
53. Trim
Review your spending habits to find what you can cut out, like subscriptions.
Find other ways to save by looking for ways to reduce costly bank fees or getting a discount on your cell phone plan. By using Trim, you are saving money and improving your financial health.
Sign up with Trim now.
54. Truebill
Truebill can help you to track your spending, save money and get a clear picture of your financial life.
This helps you identify services that you are no longer using but continue to pay for. It will help save money by automatically negotiating prices with your service providers and receiving a refund of the money going to waste, which is free money.
Get started with Truebill.
Which Life Money Hacks Can You Start?
This is a lot to take in, but don’t worry.
Take the time to read through each suggestion and consider how you can implement it into your life.
The more hacks you try out, the closer you’ll get to a healthy financial mindset.
These are the life hacks to save money I have found to work for me and my family in order to reset our financial mindsets and grow our net worth.
Everyone will find their niche and what will work best for them.
Personally, you need to figure out how do I make more money. That will make the biggest impact the fastest.
What have you done with your money lately?
Know someone else that needs this, too? Then, please share!!
Mold in the home is no joke—and it’s safe to assume actress Megan Fox agrees.
She apparently had to deal with mold and leaks in her luxurious, four-bedroom home in the hills of Malibu. She filed a complaint about these toxic issues in 2018 with the former owner, who happens to be Brad Pitt‘s longtime manager.
At last, in 2021, the case was settled and the parties agreed to move on. In early April, the 3,300-square-foot home landed on the market for $4,650,000.
Despite its notorious backstory, the property seems to have attracted a potential buyer. Marketed as a “dream home [that] looks and feels like an oil painting,” the place is in contingent sale status. And while the house is lovely, the disclosure statement is sure to be a compelling read for the would-be buyer.
The unique bungalow sports a boho vibe, with bright paint, attractive wallpaper, colorful tile, and a whimsical personality.
Set in Ramirez Canyon by a creek in a gated community, the house sits on a generous, two-acre lot with fruit trees, a greenhouse, stone walls, little bridges, and trails that wend their way through the lush grounds.
Color abounds, from the foam green cabinets in the kitchen to the fun tile work on the backsplash and around the living room and primary bedroom fireplaces.
The main bedrooom comes with its own glassed-in sitting area and adjoining spa bath. The lower level offers access to the outdoors, where there’s a cute patio with a fire pit, a sport court, pool, and an in-ground trampoline.
Fox, 37, starred in “Transformers” and a couple of the “Teenage Mutant Ninja Turtles” movies. This year she’s joining the fourth installment of “The Expendables”, an action franchise starring Sylvester Stallone.
In the two years after a notorious Surfside, Florida condo collapse, new temporary rules and increased enforcement have been instituted to ensure building safety, but these measures have also intensified the challenge involved in finding affordable financing in this market.
“There are more and more buildings that don’t meet the warrantable guidelines,” said Melissa Cohn, regional vice president, William Raveis Mortgage, referring to the standards buildings must meet for government-sponsored enterprises to back condominium unit loans.
At the same time the banking crisis reportedly reduced the supply of low-rate condo unit financing.
“You have the secondary market in the last two or three months somewhat collapsing, where you see these banks are starting to fold,” said Orest Tomaselli, president of project approval at CondoTek. “Some of these are banks that have provided residential mortgage financing to owners and purchasers in these condominium developments.”
Borrowers are still able to pay up for other options in the private market but these developments have generally limited the availability of more cost-effective loans for buyers of condo units, Cohn said.
“There are still financial institutions that will lend at market rates in nonwarrantable buildings,” said Cohen. “But they may not drop the rates below market for anyone.”
That’s a concern, because condos can be a source of scarce affordable housing in a high-cost market, and while Surfside-inspired rules as now configured are aimed at making buildings and units safer, some think they run the risk of having a counterproductive impact on financing.
“If it becomes more difficult to make those loans, it will become more difficult for people to enter into the housing system,” said Taylor Stork, chief operating officer of Developer’s Mortgage Company and president of the Community Home Lenders of America. “Most of our borrowers are first-time homebuyers in metropolitan areas and they tend to go toward the housing stock that is less expensive. In those areas, it’s more likely that a condominium will be an option.”
A growing list of “unavailable” buildings
To understand Surfside’s ripple effects in the condo market, consider the list of buildings that don’t meet Fannie Mae’s lending requirements.
The growth in the so-called unavailable list, which is constantly changing in line with the status of different buildings relative to Fannie’s requirements, has drawn attention because it’s caught an increasing number of condo associations and would-be borrowers by surprise.
“Hundreds of buildings have been added since Surfside,” said Tomaselli. “It seems like every day, there’s another one going on.”
Some of the market frustration with the list has stemmed from the fact that only Fannie, lenders and other entities with a permissible business purpose have had access to what traditionally have been called unwarrantable condos and they’ve been loath to share it outside of that.
“Approved parties that access [Condo Project Manager] for project eligibility information are not permitted to disclose Fannie Mae eligibility determination to third parties,” a Fannie Mae spokesman said in an emailed statement. (CPM will become mandatory for full reviews in July.)
The access restriction has meant some buildings have been unaware that they’re on the list until someone tries to finance a unit. The listing isn’t even always related to post Surfside rules, but the increased enforcement of other traditional condo standards in response to the collapse.
The CHLA, National Association of Realtors, and the Community Association Institute have all called for public access to the list and guidance as to how buildings can regain eligibility. (Lenders have said some fixes can be done in time to close a loan but others are more complex.) The trade groups also are asking for a minimum 60 day comment period before any condo lending rule changes.
There’s some precedent for a public list. Unlike Fannie’s technology and Freddie Mac’s platform for condo information, which provides feedback based more on discrete criteria rather than by building, the Federal Housing Administration’s list is public.
The FHA’s specific lookup tool provides information on building approvals and rejections and is designed for specific searches related to a particular property or area. While it has different criteria and costs than the GSEs (of the three, only Fannie and Freddie lend on cooperatives), some of the FHA’s feedback on buildings may mirror theirs.
CPM also is formatted as a lookup tool and its exclusive use mandate narrows the channels through which Fannie loans can get done, Stork said. Not only vendors but some originators who don’t work directly with Fannie, like aggregators or brokers, lack direct access to the system.
The situation can lead to frustration and costs for borrowers because once a loan has property-specific information, lenders tend to start worrying about time-sensitive disclosure requirements and start a more detailed application process. For borrowers in this market, that can come with the usual mortgage costs like the appraisal in addition to, for example, fees buildings charge for supplying certain condo information, said Stork.
“A borrower can easily put $1,000 to $1,500 into a transaction and then learn that it is never going to be approved, and there’s no way that the lender, or the borrower, or even the Realtor could know all of this, in many cases,” Stork said. “First-time homebuyers generally don’t have that money just laying around.”
Fannie’s spokesperson said that it considers lenders it works with to be “in the best position to have conversations with their customers about mortgage finance.”
With the advent of the banking crisis, more private lenders are increasingly likely to pile on if they become aware of Fannie’s approval status for a building, either by seeing it as signifying risks they should charge more for or that they should avoid financing it altogether.
“Being on that list, it sometimes can mean that other lending shuts down in the building as well,” Tomaselli said.
Therein lies a key dilemma in the wake of Surfside: lenders may have less tolerance for giving money to buildings with strained finances just when condos are most likely to need more cash to ensure their structures are sound.
Layers of rules and costs to navigate
Fannie and Freddie’s temporary criteria in response to Surfside have focused on restricting single-family financing for units in buildings that have deferred maintenance and public repair directives related to unsafe conditions.
The GSEs have noted that as they get a better sense of the mitigants that could be used to address the risks in aging condo buildings Surfside epitomized, they could rethink their criteria. Lenders generally would like that to result in some more leeway, but think further tightening might be more likely.
Meanwhile, even with the temporary constraints, the share of condo and co-op loan acquisitions at Fannie Mae has remained largely consistent around 9% as of year-end 2022.
And sometimes those constraints are necessary, lenders agree. As much as the market is short of housing at affordable entry-level price points and the buy-in cost for owning a condo may be lower than a traditional home, if a building’s not sound or ongoing maintenance and assessments won’t be financially manageable for a particular borrower in the future, they shouldn’t get a loan.
“The piece that Fannie Mae’s focused on…is how do we ensure sustainable homeownership,” Jake Williamson, senior vice president, single-family collateral risk management, in an online video forecast about the condo outlook. “Part of that is keeping in mind the ongoing cost.”
Adding to that concern are regional rules that have been put into place in areas where condos are concentrated. Access to this type of housing has been increasingly costly and constrained.
In Florida, June marks not only two years since Surfside, it’s also the 12-month anniversary of the state’s Building Safety Act. Because of its passage, buildings have been grappling with how to make assessments for new structure and reserve requirements affordable to their unit owners
“Each association or board president is going to have to take a damn good look at their resident constituents and figure out what their ability to pay is,” said Greg Main-Baillie, executive managing director for the Florida Development Services Group at Colliers. “Unfortunately, some board presidents could end up putting their buildings into default if they don’t.”
Baille, who acts as an owner’s representative and project consultant for condo associations facing inspections and structural repairs, said he doesn’t deal directly in unit financing, but noted building finances are inextricably linked to those of single-family owners and mortgagors.
State or regional programs that help some unit owners obtain financial assistance to help with assessments could mitigate condo default risk, Main-Baille said. Miami-Dade County has offered up to $50,000 to owners with an area median income of 140% or less.
Condo boards also might want to judiciously use a home equity loan of credit related to their multifamily building mortgage to, for example, extend the amount of time unit assessments can be spread out over, reducing monthly payments for potential future owners, he suggested.
“It may be better for the condo to actually go and leverage that debt on the behalf of their residents than the residents going and sourcing loans themselves, and it’s probably going to be cheaper too,” he said.
While the costs associated with Florida’s rules have been the most prominent so far, given the national impact of Surfside on Fannie’s temporary standards and the wide distribution of states on the unavailable list, it’s likely regional responses will grow too and become a factor in lending. New York City, for example, also has had some problems with aging infrastructure. Local rules were implemented in response to it in the past.
“Florida is really the only one that is pushing this mandate to this level and degree at this point in time…but you just have to wait to find out if more states will start following suit,” Maine-Baille said.
The total number of unavailable buildings in the Sunshine State topped several hundred at the end of May, according to lender estimates. As of May 31, every state but three had at least one building on it. The exceptions were Arkansas, North and South Dakota. The number of buildings listed per state was generally under 100 and sometimes as low as one at that time. The state with the second largest numbers of listed buildings was California, which had over 200.
Nobody likes those random extra fees that go by various names — resort fees, destination fees, amenity fees or urban fees, just to mention a few of the monikers — that get tacked onto nightly hotel room rates.
Some don’t like it so much that they’re willing to file a lawsuit against the world’s largest hotel company.
Hotel guests filed a lawsuit Wednesday against Marriott International in Los Angeles County Superior Court for what they allege were nightly surcharges on room rates that violated California’s consumer protection and unfair competition laws. The fees were labeled as “Hotel Worker Protection Ordinance Cost Surcharge” on guest bills and ran anywhere from $10 to $14 per night, depending on the hotel.
Those charges first appeared in response to an ordinance signed last year by then-Los Angeles Mayor Eric Garcetti. That measure requires Los Angeles hotels to provide workers with security devices like a panic button to better protect themselves against potential sexual assault. The measure also required larger hotels to provide higher wages to housekeepers cleaning above a certain threshold during a shift.
But the lawsuit maintains that the surcharge — billed as covering the costs associated with the employee protection measure — goes well above what it would actually cost a hotel owner.
“The Los Angeles Airport Marriott, for example, is a 1,004-room hotel that typically averages around an occupancy rate above 80%. Even at just 80% occupancy (803 occupied rooms per night), however, the hotel makes over $10,000 per night from guests by charging the [Hotel Worker Protection Ordinance] Fee—working out to over $3,600,000 annually at that single hotel,” reads the lawsuit. “The HWPO Fee is nothing more than a ‘junk fee’ under the guise of ‘worker protection,’ directly benefiting Marriott at the expense of their guests.”
Representatives with Marriott declined to comment when contacted by TPG.
Multiple Marriott-affiliated properties are highlighted in the lawsuit: the Los Angeles Airport Marriott, the Courtyard by Marriott Los Angeles LAX/Century Boulevard, the Residence Inn by Marriott Los Angeles LAX/Century Boulevard and the Four Points by Sheraton Los Angeles International Airport.
While most of the hotels accused of charging the fee were located near Los Angeles International Airport (LAX), the lawsuit also names the Beverly Hills Marriott.
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Fee fatigue
The lawsuit arrives amid swelling anti-fee fervor across the travel sector. U.S. President Joe Biden earlier this year even targeted resort fees in his State of the Union address amid a push to eliminate hidden fees, which are widespread in the travel industry, as part of his Junk Fee Prevention Act.
“We’ll ban surprise resort fees that hotels tack on to your bill,” Biden said in the address. “These fees can cost you up to $90 a night at hotels that aren’t even resorts.”
Marriott settled with the Pennsylvania attorney general over a lawsuit targeting its resort fee practice, and the company now maintains that hotels include the fee as part of an initially advertised nightly rate.
Earlier this year, separate lawsuits in Texas were launched against Hyatt and Hilton over their respective resort fee practices.
While Marriott is once again in the legal hot seat over surcharges added to its room rates, the company’s CEO, Anthony Capuano, earlier this year touted the hotel brand’s leadership in bundling resort fees into nightly rates.
The fees aren’t going away, but better transparency might be the end game for the broader industry.
“It is not as if those were hidden somehow. We’re simply further clarifying and enhancing that transparency,” Capuano said on the company’s first-quarter earnings call. “I will leave it to the state [attorneys general] around the rest of the country for the rest of the industry. But I am pleased that we will lead the industry in terms of the transparency of our disclosure for our guests.”
Liquidity in stocks generally refers to how quickly an investment can be bought or sold and converted into cash. The easier an investment is to sell, the more liquid it is. Plus, liquid investments generally do not charge large fees when you need to access your money.
For the average investor, liquidity is an important consideration when building a portfolio, as it’s an indicator of how easy it is to access their savings. That can be important to know and understand when sizing up your overall strategy.
Types of Liquidity
Liquidity comes in two forms: Market liquidity and accounting liquidity. Here’s how the two are different.
Market Liquidity
Market liquidity refers to how quickly a stock can be turned into cash. High market liquidity means there’s a high supply and demand for an asset. That, in turn, makes it easy for buyers to find sellers and vice versa. As a result, transactions can be completed quickly, even when stock values are dropping.
Accounting Liquidity
Accounting liquidity is related to an individual’s or company’s ability to meet their financial obligations, such as regular bills or debt payments.
For an individual, being liquid means they have enough cash or marketable assets (such as stocks) on hand to meet their obligations.
Companies measure liquidity slightly differently by comparing current assets and debt. In addition to cash and marketable assets, current assets also include inventories and accounts receivable, the money customers owe on credit for goods or services they’ve purchased.
Investors may pay attention to company liquidity if they are researching that company’s stock as a potential buy. Companies with higher liquidity may be in better shape than those in risk of defaulting on their debt.
How Liquid Are Different Assets?
An investor’s financial portfolio may be made up of a number of different assets of varying liquidities, including cash, stocks, bonds, real estate, and savings vehicles like certificates of deposit (CDs). Cash is the most liquid asset; there is nothing an investor needs to do to convert it into spendable currency.
On the other hand, an investment property is an example of a relatively illiquid asset, as it might take a long time for an investor to sell it should they need access to their money.
CDs are also relatively illiquid assets because they require investors to tie up their money for a preset period of time in exchange for higher interest rates than those available in regular savings accounts. Individuals who need their money early may have to pay hefty fines to access it.
Stocks generally fall on the relatively liquid side of the liquidity spectrum. Stocks that are easy to buy and sell and said to be highly liquid. Stocks with low liquidity may be tougher to sell, and investors may take a bigger financial hit as they seek buyers.
What Is Liquidity Risk?
Liquidity risk is the risk that an individual won’t be able to find a buyer or seller for assets they wish to trade during a given period of time, which can lead to adverse effects on the price. Liquidity risk is higher for complex investments or investment vehicles like CDs that may charge penalties to liquidate or access funds early.
Are Stocks a Liquid Asset?
For the most part, stocks that are traded on a public exchange are considered liquid assets. Some stocks, like those traded on foreign exchanges, may be less liquid as it takes more time to execute a trade.
Generally speaking, when an individual wishes to execute a trade, they use a brokerage account to issue a buy or sell order. The broker then helps match the individual with other buyers and sellers hoping to take the opposite action.
This process can take a little bit of time. Most stock trades settle within a two-day period. A stock trade executed on a Wednesday would typically settle on Friday. Settlement is the official transfer of stocks from a seller’s account to the buyer’s account, and cash from the buyer to the seller.
Because it can take some time for trades to be executed, there can be a difference in price between when an individual places an order and when that order is fulfilled.
How to Calculate a Stock’s Liquidity
One way to figure out a stock’s liquidity is by looking at a metric known as share turnover. This financial ratio compares the volume of shares traded and the number of outstanding shares. A stock’s volume is the number of shares that have been bought or sold over a given period. Outstanding shares refer to all of the shares held by a company’s shareholders.
Higher share turnover indicates high liquidity; investors have an easier time buying and selling. Investors might want to pay close attention to low share turnover, as this can indicate they may have a difficult time selling shares if they need to.
Another measure of a stock’s liquidity is the bid-ask spread. Bid price is the price an individual is willing to pay at a given point in time. The ask price is the price at which a buyer is willing to sell. The bid-ask spread is the difference between the two.
For highly liquid assets, the bid-ask spread tends to be pretty small — as little as a penny. This indicates that buyers and sellers are generally in agreement over what the price of a stock should be. However, as bid-ask spread grows, it is an indication that a stock is increasingly illiquid.
A wide spread can also indicate that a trade may be much more expensive to execute. For example, there may not be enough trade volume to execute an entire order at one price. If prices are rising, an order can become increasingly pricey.
Examples of Liquid Stocks
The most liquid stocks tend to be those that receive the most interest from investors. The large companies that are tracked by the S&P 500 Index.
Why Stock Liquidity Is Important for Investors
The relative liquidity provided by stocks can be a boon to investors. Stocks help provide the growth needed for investors to meet their savings goals. They are also relatively easy to buy and sell on the market, allowing investors to access their savings quickly when they need it.
The Takeaway
Liquidity is a measure of the ability to turn assets into cash without losing value. So it’s an important metric for investors to pay attention to as they construct their portfolios. But liquidity is just one of many factors to consider when investing.
Investors may want to know how liquid their holdings are so that they can choose the appropriate mix of investments that align with their risk tolerance. It may be comforting to some to know that they can sell investments with relative ease, rather than have their money tied up for the long-term.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
FAQ
What is good liquidity for a stock?
Good liquidity for a stock refers to an investor’s ability to sell the stock in exchange for cash. If a stock is liquid, then it should be relatively easy to sell. If a stock is illiquid, or has bad liquidity, it may be more difficult.
What is a “Liquidity Ratio?”
A liquidity ratio is a financial ratio that can help an investor determine a company’s ability to pay off its debt obligations, particularly in the short-term. There are several liquidity ratios that can be utilized.
Is a higher liquidity better?
Generally, yes, a higher liquidity is better for investors, as it can signal that a company is performing well, and that its stock is in demand. It can also be easier for an investor to sell that stock in exchange for cash.
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Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – Leave a Comment
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Shorter post today. Super busy with all the car stuff, work and school. But of course I don’t want to leave you hanging 🙂 and I also have a lot of stuff on my mind that I love getting your opinions on.
Yesterday, I made a post about maybe getting a part-time job. A lot of you said just relax, and a lot of you said I should try and find something and come up with extra money ideas.
There are a lot of things out there that I could do. I’m still not sure how much time I would want to dedicate to it though. Once I graduate and get promoted at my work, I’m sure there will be a lot more stress involved and I probably won’t want something that takes up too much time.
However, I have no kids or anything, so I know I will have time.
Here’s a list of things that I could do:
Create another blog. I could start being more professional with this and start learning what all the blog terms like SEO and everything really mean, and then apply it to my blog.
Tutor. I have a lot of people who are always asking me to tutor them, but I always say no. It wouldn’t be a bad idea though.
Work at the tanning salon with my friend. She doesn’t make the greatest money, but it’s not hard work.
Bartend. A lot of my friends are bartenders and make decent money. Plus they get free drinks from other bartender friends that we know and free drinks at their bar.
Volunteer. Yes I wouldn’t make any money, but I could finally start volunteering at the animal shelter.
Retail store. I could maybe ask for my job back at where I used to work, and I’m sure she would say yes. She still loves me.
Do medical research tests. I would never do this. I hate shots, needles, blood being drawn. But my friend does work at a medical research facility and she’s always telling me about the awesome pay they give. This is something I’d never do, but I thought I’d throw it out there for others.
Find a temp job. Some of you mentioned this, what type of skilled temp jobs are out there that you guys were mentioning?
Babysit/nanny. I did this when I was much younger, and haven’t watched a little kid in forever. But I do remember that the pay was good when I was in middle school. I got paid $10 an hour which was pretty nice.
What would or do you currently do for extra money?
Last Updated: May 26, 2023 BY Michelle Schroeder-Gardner – 13 Comments
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Mystery shopping. Many of you have emailed me and asked me the question “what is mystery shopping” and have been wondering how I am making money through mystery shopping.
I usually make around $150 to $200 a month from mystery shopping.
Side note: If you are interested in the many other ways I earn extra money, check out my Extra Income page on my blog.
I use mainly Bestmark for my mystery secret shops. I’m not sure what other companies are good and reputable mystery shopping websites, but I know for a FACT that Bestmark is a legitimate mystery shopping website, so you can trust me when I say that.
Last month I didn’t make too much because not a lot of “good” shops were offered in my area. Lately, I’ve been a little more picky with the shops that I sign up for also.
What I consider a worthwhile shop for ME:
Either an online shop or phone call shop
If I have to drive, it’s close to somewhere I’ll be
Something I’ll use. I love doing Estee Lauder shops because I always love free makeup.
Restaurant shops, because I have to eat, of course.
Of course, what’s worthwhile to you and me might be different. When I first signed up for mystery shopping (sometime last summer I think), I literally signed up for everything. I made decent money, but it wore me out. The amount of surveys that you have to do is so repetitive that it makes you want to throw your computer at the wall.
Sometimes surveys take just a minute, but sometimes they literally take an hour. Restaurant shops usually take a little longer than others because usually you are grading every little detail.
Some examples of mystery shops I’ve done include:
Restaurants. This ranges from cheaper restaurants where I’m reimbursed for around $30 worth of food, all the way up to nice steakhouses where I get $100.
Dealerships. Bestmark has a ton of dealership shops available, but I only have done the phone call and scheduling services online secret shops.
I usually do about 4-5 of these a week and these are the easiest shops. You don’t have to drive anywhere and the surveys literally take one minute. And you get paid around $5 for them. Although recently they’ve lowered the payment to only $3, and there’s a ton more work involved. I had to cancel around 3 or 4 shops because they didn’t make it clear enough about the amount of work that I signed up for. And for $3, I’m not really willing to do too much.
They also have dealership secret shops where you go in and pretend you want a car. These usually pay around $20. This is something I’ve never done, and they have plenty of these available for everyone to do. I’ve never done this because car salesmen scare me. I’m not ready for thousands of annoying phone calls and I’m afraid that I’d be stuck in a dealership for an hour while trying to run away from the salesperson.
Retail. I mainly do Estee Lauder. I’ve done a lot of these. I’ve gotten foundation, lotion, toner, face wash, concealer, lip gloss and so on, all for FREE! And these aren’t sample sizes, I’ve probably gotten over $200 in stuff, plus gotten paid around $10 on top for each shop as well.
I’ve also done a couple of Best Buy shops. These are easy too. You just survey a certain department (takes like a minute), and then you can just buy something small like a candy bar so that they have your receipt for proof that you were actually there and performed it. Best Buy shops usually pay around $13. Not a ton, but the Best Buy is along the way home from my work so I just pop in.
This is a mystery shopping check from one week’s of mystery shopping.
The highest paid shops I do are usually for restaurants. I’ve done a couple of nice restaurants where I had to eat over $100 worth of food. Crazy! I’ve also seen Hotel mystery shops, but they’ve never been on a good day for me, so I’ve never been able to sign up.
Also, if you find that you cannot do a shop that you sign up for, all you do usually is contact your scheduler and say you need to reschedule or cancel. Try not to do this too often though. These schedulers will remember you, and if you’re good to them, they will give you good shops, so remember that!
Mystery shopping money will NOT make you rich. I want to make that clear. It’s just a nice form of side income, where I can get things I want for free! What I make from mystery shopping, I add to my vacation fund. So it’s a nice little addition every month.
If I want to eat at a nice restaurant that I would usually go to, then YES I would love to do a secret shop there. Those are always the greatest shops because you are paid to have fun.
Do you secret shop such as through Bestmark? Any tips?
Also, if you join Bestmark, please say I referred you! My ID is MO4999. You can join Bestmark by clicking here.
If you are new to my blog, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:
Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna (this is the one we have) and enjoy free TV for life.
Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $30,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $3.49 per month plus you get a free domain if you sign-up through my tutorial.
Lower your cell phone bill. Instead of paying the $150 or more that you spend on your cell phone bill, there are companies out there like Republic Wireless that offer cell phone service starting at $5. YES, I SAID $5! If you use my Republic Wireless affiliate link, you can change your life and start saving thousands of dollars a year on your cell phone service. I created a full review on Republic Wireless as well if you are interested in hearing more. I’ve been using them for over a year and they are great.
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 gift card bonus to Macys, Walmart, Target, or Kohls!
Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month (the first two weeks are free too) and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
Answer surveys. Survey companies I recommend include American Consumer Opinion, ProOpinion, Pinecone Research, Opinion Outpost, Survey Spot, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Use Swagbucks for your online searches. Swagbucks is something I don’t use as much, but I do occasionally earn Amazon gift cards with very little work. Swagbucks is just like using Google to do your online searches, except you get rewarded “points called SB” for the things you do through their website. Then, when you have enough Swagbucks, you can redeem them for cash, gift cards, and more. You’ll receive a free $5 bonus just for signing up today!
Try Digital Voice. Another one you may be interested in related to Swagbucks is Nielsen Digital Voice. Digital Voice is a part of Nielsen, which I’m sure you’ve heard of. All you have to do is surf the web and you may be able to start earning money.
Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!
Find a part-time job. There are many part-time jobs that you may be able to find. You can find a job on sites such as Snagajob, Craigslist (yes, I’ve found a legitimate job through there before), Monster, and so on.
A house is the most expensive thing most of us ever will purchase. If you plan to stay put for some time, you could be paying on your mortgage for the next 15 to 20 years. But as any homeowner knows, expenses don’t stop at the purchase price and mortgage interest. You’ll also pay a small fortune in insurance, upkeep, and repairs over the years.
This is what makes it so important to fully understand the process of buying a home, especially when it comes to property inspection. With so many features and systems, there are any number of things that can break or malfunction in your house. Unlike a faulty appliance that you can take back to the store for replacement or refund, once you sign a contract on a home, there’s little recourse should something go wrong.
According to the National Association of Realtors, April through July typically outpace the balance of the year in home sales as people try to get settled before the new school year begins. If you plan to purchase a home soon, make sure you pay careful attention to the property inspection process to save both money and headaches.
The Purpose of a Property Inspection
A property inspection report is a list of issues with the property, such as roof damage or a crack in the foundation. After inspection the buyer has the opportunity to negotiate with the seller and reach an agreement to either repair the property or to lower the sales price to compensate the buyer for the cost of the repairs. Alternatively, the seller can decide to sell the home as-is, in which case he or she is declining to make repairs or lower the sales price, and the buyer must decide whether or not to buy the home at the original agreed-upon sales price.
You may have decided that the property is your dream home, but the property inspection is a much-needed reality check that will point out flaws of which you might not be aware.
Important Note
New houses still need an inspection!
You might think a new house is perfect, but that’s far from the truth. In fact, new homes can be even more dicey because they haven’t undergone a few inspections like the typical resale house.
When I was in real estate, I mentored with an incredibly knowledgeable agent who would try to talk her clients out of new homes (which often pay agents exponentially more because of builder bonuses). If they still wanted a new house, she would recommend additional inspections at various points in the construction process, and she’d show up for every single one.
During one inspection, she walked into the master bathroom. She noticed something was missing, and asked the builders to come in and see if they could figure it out. No one had a clue. Turns out they hadn’t put in plumbing for the toilet.
Review the Seller’s Disclosure Notice
The first step in the property inspection process is to review the seller’s disclosure notice, a form filled out by the property owner that outlines their knowledge of the properties present condition. If you’re working with a real estate agent, he or she can get the disclosure statement from the seller’s agent. Otherwise, you can contact the seller’s agent, or if the property is for sale by owner, you’ll get the notice from the seller directly.
Sellers are required to include everything they know about their property. If, for example, the home was previously under contract, but the potential buyer walked away because a property inspection found major structural damage, the seller is required to include that in the seller’s disclosure notice.
As the buyer it’s particularly helpful because if the house will require major structural repairs, and you’d rather pass, you can walk away from the property without having to shell out cash for your own property inspection to reveal the same issues.
Hiring an Inspector
If you carefully reviewed the sellers disclosure and you’re ready to move forward, the next step is to find an inspector.
Rather than firing up your Internet browser and doing a Google search, contact people in your network to get referrals. Who has purchased a house in the past several years? Do you know anybody in the real estate industry? If you have a buyer’s agent, he or she also should have at least three names of inspectors for you to consider.
After you’ve collected a small list of names, interview each candidate, asking questions including the following:
Are you licensed (not required in all states)?
Are you a member of a professional organization, such as the American Society of Home Inspectors?
Do you have errors and omission insurance?
What kind of ongoing training and education do you receive?
Do you specialize in certain types of properties? (For example, new homes and certain beachfront properties might need a specialist.)
What will the inspection cost?
If hired, how soon can you give me a property inspection report?
Finally, ask for a sample inspection report and see if it includes detailed descriptions of features and flaws in the home, which give more information about the property than a basic checklist.
It’s important that you make time to attend the inspection of the home. Besides learning more about your AC and where the fuse box is located, believe it or not, you might find issues that the inspector would normally miss. For example, an inspector won’t check underneath every rug in the house, but you can, and you might discover a major crack in the concrete floors.
Tip: Though the property inspection report will be invaluable after you purchase a home — it can serve as an agenda for which maintenance and repairs are highest priority — you can make it even more useful by filming the inspection. Don’t make yourself a nuisance, but tag along and film as the inspector goes from room to room. (You’ll probably want to let her crawl under the house on her own, though.)
Negotiations
Once the property report is finished, carefully read it. Many people don’t.
It can be disheartening to see so many things wrong with your “dream” home, but every home will have issues. Some are easy and inexpensive to fix, and it’s not reasonable to ask a seller to get a property in perfect condition. Typically buyers will ask that a seller take care of any health and safety concerns; structural damage; deferred maintenance, such as having the air-conditioning system serviced; or problems that require opening the wall, which often reveal much larger and more expensive problems.
Remember that should negotiations go downhill and you want to walk away from the property, the inspection contingency will allow you to do so.
If there are only minor issues with the house, however, typically buyers continue with the original contract. After the contract is finalized, it’s fairly certain the buyers are about to become the new owners.
As you can see, the process of a house inspection can have a major affect on a buyer’s finances for years to come. If you’re in the market for a new home, don’t gloss over the inspection report or assume that your agent will show up for you on inspection day and handle any issues. Stay involved in the process, even if you have to ask a million questions along the way. As J.D. often says, nobody cares more about your money than you do.