PS LAX — originally called The Private Suite at LAX before the name was shortened in January 2020 — is a reservation-only passenger terminal that can be accessed before or after your flight. The lounge, which opened in May 2017, offers a luxurious experience, including chef-prepared food; a spa; 12 private suites; private TSA, customs and immigration; and a BMW that drives you directly to your plane. PS has locations in Los Angeles and Atlanta, with plans to expand to Dallas-Fort Worth and Miami.
PS LAX gave me free access to a private suite in the lounge, which would have otherwise run over $5,000. I stopped by before a trip where I was flying to Amsterdam for a few nights before a safari in Tanzania.
My take: The lounge is expensive — beginning at $1,095 per person to access The Salon (a communal area separate from the private suites) and $4,850 for up to four people to access the private suite — but it’s a remarkable experience for those who can afford it. Unlike with other lounges, there’s no easy way to get access through a premium credit card, although the lounge does offer complimentary annual membership to people with the AmEx Centurion Black Card, an invitation-only card for the wealthy (terms apply).
Getting to PS LAX
PS LAX is in its own private terminal, located at 6875 W. Imperial Highway, Los Angeles, CA 90045. There are a few options for getting to PS LAX:
Arranging for transport through PS LAX
You can book transit to LAX directly through PS LAX, with pricing dependent on the type of car you book and where you live. For a car from Hollywood Hills West in Los Angeles, I was quoted the following rates:
$173.07 for a sedan for up to three passengers.
$255.36 for a Mercedes-Benz S-Class for up to three passengers or an SUV for up to six passengers.
Uber, Lyft or other rideshare
You can also arrange an Uber, Lyft or other rideshare to take you to PS LAX. I decided to take a Lyft Black, which came out to $83.49. One thing to keep in mind is that if you use a rideshare, the driver may not know exactly where the PS LAX terminal is, so you may want to order your rideshare car five or 10 minutes earlier than you might otherwise as a buffer.
Driving your own car
You can drive to PS LAX, but note that you may need to pay for parking depending on your membership status and how many days you stay and whether you’re accessing the suite or The Salon (more on that below). Here’s the pricing for valet parking at PS LAX:
All Access membership. 30 nights complimentary for the suite, two nights complimentary for The Salon.
The Salon membership. Two nights complimentary for The Salon.
No membership. $90 per night.
One perk to parking your car at PS LAX is that it will be cleaned for you. That service comes at an additional cost if you do not have an annual membership.
PS LAX amenities
PS LAX offers guests several amenities, including:
Spa services, including a table massage or a chair massage.
Private, line-free Transportation Security Administration screening and customs before departure (including a beverage area after you go through screening where you can fill up your water bottle or pick up complimentary drinks to take on the flight with you).
Customs and immigration services upon arrival.
Chef-prepared food.
12 private suites, including a double suite and a suite that has a private outdoor area.
An outdoor garden area that includes top-shelf food and drinks, as well as games, water features and shaded areas.
BMW car service that takes you directly to the aircraft door.
Instant luggage delivery on arrival.
Each suite has its own bathroom (including amenities like toothbrushes, razors and other toiletries that you can take with you), a pantry with food, a minibar, a two-person daybed and views of aircraft taking off and landing.
There are so many amenities at PS LAX that you’d be hard-pressed to use them all before your flight.
Dining experience
Dining at PS LAX feels like you’re at a restaurant, with a menu and chef-prepared food. While the exact food offerings may differ depending on when you fly, below is a sample of the food offered on the menu during my visit. (Note that breakfast is available from 5 a.m. to 11 a.m., with all other food served from 11 a.m. to 11:30 p.m.)
Seasonal fruit plate.
Breakfast grain bowl.
French omelet.
PS breakfast sandwich.
Eggs any style.
Chilaquiles.
Vegan tacos.
Avocado toast.
Charcuterie and cheese.
Margherita and seasonal flatbread.
Sandwiches
PS burger.
Maitake mushroom sandwich.
Southeast Asian fried chicken sandwich.
PS turkey sandwich.
Hanger steak.
Blackened seasoned Scottish salmon.
Pan-seared scallops.
Spinach sorpresine.
Pasta primavera alla chitarra.
Strawberry mousse.
Sticky toffee pudding.
Chocolate torte.
Note that the menu does not have pricing on it, but you will need to pay for food if you order off the menu.
Bar
PS LAX includes a bar called The Salon, and you have the option to purchase access only to The Salon (meaning you won’t have a private suite).
The bar is chic with plenty of top-shelf liquor, wine, beer and cocktail options. There are also non-alcoholic beverages, including non-alcoholic wine, zero-proof cocktails, soft drinks and Icelandic still or sparkling water.
The spa at PS LAX
A major perk of PS LAX is that it includes a spa, which can really help to reduce pre- and post-travel stress. All Access and The Salon members in a private suite receive a complimentary spa service, and other visitors can purchase spa services at the following rates:
$120 for a manicure.
$150 for a table or chair massage.
$100 for a haircut or barber service.
Personalized touches
Something that made the PS LAX special was the personalized touches from the staff. I visited PS LAX on my way to Amsterdam and Tanzania for a safari, a trip that I planned for my birthday.
I was surprised when I walked into my private suite to find that the staff had included stroopwafel and other Dutch treats, flags from the Netherlands and Tanzania, a Lonely Planet guide to Tanzania, a PS LAX hat and a birthday present and card that included Kiehl’s products and a travel amenity kit.
How to access PS LAX
Memberships
Access to PS LAX and pricing depend on whether you’re a member and whether you want to access a private suite or have your visit include only The Salon. Below is an overview of PS LAX memberships and benefits:
Reservations
You’ll need to make a reservation to visit PS LAX, and access is on a space-available basis, with All Access members receiving priority access for the private suite and The Salon and The Salon members receiving priority access for The Salon.
If you have no membership, you’ll be put on a waitlist and receive notice generally 48 hours before your flight.
Known for its top-tier educational institutions, lively atmosphere, and its proximity to key East Coast cities, Massachusetts has a lot to offer you. But is Massachusetts a good place to live? In this article, we’ll explore the pros and cons of living in Massachusetts, helping you decide if the Bay State is right for you.
Is Massachusetts a good place to live?
Moving to Massachusetts, you’ll be immersed with coastal charm, and historical significance. The largest city, Boston, is a global hub for education, healthcare, and innovation, attracting people from around the world. Cities like Cambridge, Worcester, and Springfield each offer their own vibe, from university life to growing tech scenes. Massachusetts is also home to prestigious employers, including Massachusetts General Hospital, Harvard University, and biotech firms in the Boston area.
Culturally, Massachusetts is rich in history, with landmarks like Plymouth Rock and the Freedom Trail. The state’s arts scene thrives, particularly in Boston, where museums, theaters, and music venues abound. You will also find plenty to love in the outdoors, from the scenic beaches of Cape Cod to the hiking trails in the Berkshires. Whether you’re drawn to the state’s bustling cities or its tranquil countryside, Massachusetts offers a lifestyle to fit a variety of preferences.
Massachusetts state overview
Population
7,029,917
Biggest cities in Massachusetts
Boston, Cambridge, Quincy
Average rent in Boston
$4,061
Average rent in Cambridge
$3,579
Average rent in Quincy
$2,745
1. Pro: Well-known educational instituions
Massachusetts is home to some of the best schools and universities in the world. The state consistently ranks at the top for public education, and cities like Cambridge host elite institutions such as Harvard University and MIT. The emphasis on education extends to the public school system, which is known for its rigorous standards.
2. Con: High cost of living
The high cost of living in Massachusetts is a significant consideration for many residents, particularly in the state’s most popular cities. Boston, in particular, has one of the highest costs of living in the nation, with the average rent for a one-bedroom apartment around $4,061 per month. Nearby cities like Cambridge and Somerville are similarly expensive, with rents averaging $3,579–$2,885 for one-bedroom units. The high cost of housing drives up overall expenses, with utilities, groceries, and healthcare also reflecting the state’s above-average price levels. By comparison, more affordable options can be found in cities like Worcester and Springfield, where the cost of living is noticeably lower, and rental prices for one-bedroom apartments are closer to $1,929–$1,582.
3. Pro: Historical heritage
As one of the original 13 colonies, Massachusetts boasts a deep historical and cultural significance. From the Pilgrims’ landing at Plymouth Rock to Paul Revere’s midnight ride, the state is filled with landmarks that reflect its role in shaping America’s history. Residents can explore the Freedom Trail in Boston or enjoy the many historic homes and museums scattered throughout the state.
Insider tip: If you’re interested in history, consider getting a membership to the Trustees of Reservations. This organization manages over 100 historic and natural sites across Massachusetts, offering exclusive access and discounts to fascinating spots like Castle Hill on the Crane Estate and the Old Manse in Concord.
4. Con: The winters are frigid
Massachusetts winters can be long, cold, and brutal. From heavy snowfall to icy roads, winter conditions make commuting and daily life challenging for months. The snowfall often leads to traffic delays, school closures, and increased heating costs. For those unaccustomed to severe winters, adjusting to Massachusetts’ cold season can be difficult. While the state is prepared to deal with snow and ice, the persistent cold can be a major downside for residents.
Insider scoop: Make sure your apartment has good insulation and energy-efficient windows. These small features can drastically reduce heating costs and keep your space cozy during the harshest winter months.
5. Pro: Proximity to major cities
Living in Massachusetts means easy access to other key East Coast cities like New York City, Providence, and Hartford. Boston’s location makes it an ideal base for those who need to travel for work or enjoy weekend getaways. With Amtrak, bus services, and major highways, trips to nearby states are convenient and accessible. For those who want the benefits of living in a historic, compact city like Boston while still being able to visit larger metro areas, Massachusetts is a good place to live.
Travel tip: Consider taking the Amtrak Acela Express for a fast, comfortable trip between Boston and New York City. The Acela offers scenic views and eliminates the stress of traffic while providing Wi-Fi and spacious seating for the journey.
6. Con: The traffic is a nightmare
Despite the extensive public transportation network in Boston and surrounding areas, traffic congestion is a significant issue in Massachusetts. Boston consistently ranks among the worst cities in the U.S. for traffic delays, with rush hour often stretching for hours. This can make commuting frustrating, whether you’re driving into the city or navigating local roads. The state’s compact geography and dense population further exacerbate the problem, especially during peak travel times.
7. Pro: Massachusetts has a diverse job market
Massachusetts has a highly diverse job market, offering opportunities across a wide range of industries. The state is a global leader in education, healthcare, and biotechnology, with top-tier employers like Harvard University, Massachusetts General Hospital, and numerous biotech companies based in and around Boston. In addition to these sectors, Massachusetts also has a growing technology scene, particularly in Cambridge’s Kendall Square, often dubbed the “Silicon Valley of the East.” The finance and insurance industries thrive in Boston, while the state’s commitment to clean energy has spurred job growth in the renewable energy sector.
8. Con: Some of the highest tax rates in the country
Massachusetts is known for having some of the highest tax rates in the country, which can be a drawback for many residents. The state has a flat income tax rate of 5%, which may seem manageable compared to other states, but it’s compounded by high property taxes and sales taxes. Property tax rates vary depending on the city or town, with some areas like Newton and Brookline having rates well above the national average. Additionally, Massachusetts has a 6.25% sales tax, which, while not the highest in the U.S., can add up over time.
9. Pro: Beautiful natural scenery
Massachusetts may be known for its cities, but its natural beauty is equally impressive. From the rocky shores of Cape Ann to the rolling hills of the Berkshires, there’s no shortage of outdoor destinations to explore. Cape Cod offers stunning beaches, while the Berkshire Mountains are perfect for hiking, skiing, and fall foliage viewing. The state’s many parks and reserves provide plenty of opportunities for outdoor recreation, whether you’re into hiking, biking, or simply enjoying a picnic by the water.
Insider scoop: If you’re planning a visit to Cape Cod during the summer, avoid weekend traffic by leaving early in the morning or traveling midweek. This helps beat the rush and allows you to enjoy the scenic drive without the stress of congestion.
10. Con: Highly competitive rental market
Massachusetts has an extremely competitive rental market, particularly in and around the Greater Boston area. Due to the state’s booming job market, world-renowned universities, and vibrant culture, demand for housing is consistently high. In cities like Boston, Cambridge, and Somerville, rental prices can soar.
Pros and cons of living in Massachusetts: Overview
The best place to buy a used car — whether it’s a traditional car dealership, used-car website or private seller — depends on your priorities and needs. When you know the various options for buying a used car, along with the advantages and disadvantages of each, it can help you target those that are best for you.
Buying from a traditional used car dealership
If you want to browse a selection of used cars in person, take a test drive and negotiate price, a traditional car dealership may be a good option for you. You can get financing on site, although it’s always best to come with a preapproved auto loan for comparison. Also, the dealership will handle most of the paperwork for you.
On the downside, you can expect higher prices than you’ll find at other places and possible sales pressure from employees driven by quotas and commissions.
Before you visit a dealership, browse their online auto listings and read customer reviews. Also, be aware that different types of used-car dealerships exist, and one may be a better fit for you than another. Here’s a brief rundown:
Franchise dealerships
Franchise dealerships are affiliated with certain car manufacturers, and they sell both new and used vehicles. New cars in their inventory are limited to makes and models of the affiliated car maker, but used cars could be different brands, usually obtained from customer trade-ins. Franchise dealerships also sell certified pre-owned cars (CPO cars), which are used cars of that dealership’s brand. CPO cars have been inspected, reconditioned with factory parts and typically come with the best warranties, so they’re considered to be among the most reliable used cars.
If you have a specific make and model in mind, you’re likely to find a better selection at a franchise dealership.
Franchise dealerships with CPO cars are an opportunity to buy a used car in like-new condition.
This type of dealership usually has a larger network of lending partners to help you find a competitive rate on an auto loan.
If you’re looking for a range of makes and models, the used-car lot at a franchise dealership is less likely to offer that.
Franchise dealers often have the expense of bigger showrooms and employee teams, which can result in higher car prices.
If you buy a CPO car, expect it to have a higher price tag than a non-certified pre-owned car.
Independent dealerships
Independent dealerships aren’t affiliated with a certain car manufacturer and are usually owned and operated locally. They can be a single location on a corner lot or a full-sized dealership with multiple locations around town.
Independent dealerships have a mix of makes and models, since they aren’t affiliated with a specific car manufacturer.
Independent dealers usually don’t have as much overhead, so they’re able to sell used cars for less.
Smaller independent dealerships may have limited inventory.
Independent dealerships often have fewer financing connections and options, so you may be offered a higher loan rate than you could get elsewhere.
National used car dealerships
National dealerships have many locations across multiple states. They have a big online presence, with car listings searchable by area and an ability to handle the sales process remotely.
One national car dealer is AutoNation, which has more than 300 locations in 20 states and more than 18,000 used vehicles, including CPO cars, listed for sale online. Another is CarMax with 200-plus stores nationwide and an inventory of more than 45,000 cars listed online. If you aren’t near a national dealer’s location, you can pay to have the car you buy shipped to your home.
National dealerships, compared to other types of dealerships, have the largest inventories and variety of makes and models.
You can easily search their website listings and manage the entire buying process online.
National dealerships usually have no-haggle pricing.
Cars purchased from national chains often come with a limited money-back guarantee and warranty. For example, CarMax allows you to return a car within 10 days of its purchase, and cars come with 90-day or 4,000-mile warranty.
If the car you find is located across the country, test driving can be difficult. You might be able to pay to have the vehicle sent to a nearby location for a test drive, with no obligation to buy.
If you prefer negotiating on price, that isn’t likely to be an option.
Money-back guarantees may not apply for cars delivered to customers out of state, so check the fine print.
Car rental agencies
Car rental companies update their fleet of vehicles every year or two, and many of those cars are sold by their sales divisions. Rental companies have a limited number of used-car dealerships, with available cars also listed on their websites.
Used rental cars usually sell for competitive prices.
Rental cars have a strict maintenance schedule, which isn’t always the case for other used cars.
Rental cars are often sold with an extended warranty.
Rental cars may have higher mileage or more wear and tear than other used cars.
Inventory for used rental cars is limited, and you may not be able to find a specific make and model.
Buying from online-only used-car websites
Many car-buying websites are operated by companies that don’t have their own car lots or showrooms. These sites differ in how they operate and obtain vehicles, so the best websites to buy used cars won’t be the same for everyone. Here are a few examples:
Online-only used car retailers
Online auto retailers, like Carvana, operate much like a dealership but without traditional dealer locations. They have their own inventory to sell, and they may list cars from dealership partners.
Online car retailers have a large inventory and variety of makes and models.
The retailer can handle all or most of the car-buying process for you, including financing and title transfer/registration if allowed in your state.
Cars purchased from online retailers usually come with a limited money-back guarantee and warranty. For example, Carvana provides a seven-day money-back guarantee (with a limit of 400 miles) and a warranty covering 100 days or 4,189 miles.
Prices aren’t typically negotiable, so you can avoid the stress of haggling.
You may have to pay to have a car shipped or delivered to your home or other agreed location.
You probably won’t be able to test drive a car until it’s delivered.
If you like to negotiate on price, that may not be an option.
Online auto marketplaces
Websites like Autotrader and Cars.com aggregate listings for used cars from dealerships and private sellers. Online aggregators may include listings from sites like CarMax and Carvana.
Auto marketplaces provide an easy way to view cars for sale without having to visit multiple websites.
Because they pull listings from many sources, these sites can have millions of listings from across the country.
Aggregator sites enable you to connect directly with a seller to ask questions or set up a test drive. An identity check is done for private sellers.
Since you’re not purchasing from the aggregator, many details — like whether you can negotiate or receive a warranty — will depend on the seller.
If the car you find isn’t located nearby, it may be difficult to test drive it.
You may have to pay to have a car shipped or delivered to you.
Buying a car from a private seller
Also commonly referred to as a private-party sale, individual car owners are another source for buying a used car. “Cars for sale by owner” can be found through websites like Facebook Marketplace and Craigslist.
Negotiating with a private-party seller may be easier than negotiating with a trained salesperson at a dealership.
If you’re looking for an exact make and model, you may be able to cast a wide net online and find it for sale by owner.
Private sellers won’t push expensive add-ons, like paint protection packages.
Since you’ll be responsible for paperwork typically handled by a dealership, buying from a private party is more time-consuming.
You’ll need to be cautious to avoid potential scammers.
Your car won’t have warranty coverage, unless it’s still covered under the original manufacturer’s warranty.
Auto auctions are another place to buy a used car
Auto-auction businesses provide many used cars to dealerships that then resell them, but some auctions are public so anyone can participate. Auctions may be in person, online or a combination of both.
Buying a used car at an auction can be a way to get a good deal.
Auctions usually have a wide variety of used cars.
If the auction is nearby, you should be able to inspect the car before bidding.
Fast-paced bidding can run prices up and cause you to overspend.
Auctions usually sell cars “as-is,” so you have no recourse if the car is defective and in need of costly repairs.
You typically can’t test drive the vehicle before buying it.
How to find the best place to buy a used car
Ultimately, the best place to buy a used car is wherever you can find the best deal on a reliable vehicle. You can improve your chance of doing that if you follow these basic tips before buying a used car:
Look at the car’s vehicle history report, such as Carfax or AutoCheck, for information about the car’s past, such as major accidents, maintenance and title information. Most dealerships offer buyers a free vehicle history report, but you may have to pay for one yourself if you buy from an individual.
Enter the car’s vehicle identification number (VIN) on the National Highway Traffic Safety Administration website to find its recall history and see if any problems still need to be addressed.
Research the car’s current market value using online pricing guides like Kelley Blue Book or the National Automobile Dealers Association to ensure it’s listed at a fair price. If you’ll be trading in a car, research the trade-in amount you should expect too.
Test drive the car to see how it accelerates, handles and drives. Driving a car can alert you to potential problems that might not be evident any other way. Test driving is important, so if it isn’t an option at all — for example, if you buy at an auto auction — it could be a reason not to buy a car that way.
Get the car inspected by an independent mechanic that you trust. Used car inspections cost several hundred dollars, but they can prevent you from later paying thousands of dollars for car repairs. Note that CPO cars receive thorough inspections, so it isn’t necessary to have a separate one. Also, if you have a car shipped to you, make sure to have it inspected and test drive it before any money-back guarantee expires.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how presidential policies on tariffs, immigration, and prices can impact your everyday expenses like groceries and gas.
What can a president actually do to lower prices and fight inflation? Can campaign promises really impact your wallet, or are they just political hot air? Hosts Sean Pyles and Anna Helhoski discuss presidential policies and how they affect everything from the cost of gas to your grocery bill to help you understand the real impact of political decisions on your finances. They begin with a discussion of inflation, with tips and tricks on understanding how inflation is measured, what drives price hikes, and what role the president plays in influencing it.
Then, Anna talks to Derek Stimel, an associate professor of teaching economics at UC Davis, about the economic implications of tariffs and immigration policies. They discuss how tariffs raise the price of imported goods, how immigration impacts labor costs and wages, and what these political policies mean for your everyday purchases.
Check out this episode on your favorite podcast platform, including:
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
What’s the first thing you do when you go to the grocery store? Do you run to the produce aisle and look for the freshest broccoli, maybe? Or conversely, are you heading for the candy section? I don’t judge. But pretty soon after that, you’re probably starting to look at prices, right? The price of, well, everything is a daily question in our lives. So it’s not surprising that prices are playing a part in this year’s presidential election.
Derek Stimel:
I just find it interesting that both presidential candidates have focused on these highly volatile markets, which we often think they really can’t do that much about, and that are often driven by these global forces basically. But both of them have focused on those as their avenues to bringing inflation down.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Anna Helhoski:
And I’m Anna Helhoski.
Sean Pyles:
And this is episode two of our Nerdy deep dive into presidential policy and personal finances. Hey Anna, I don’t know if you’ve noticed, but we’ve got a presidential campaign underway.
Anna Helhoski:
Hard to miss it. Talk about drama. And every great drama has a storyline. One big part of this year’s storyline in the campaign has been prices, specifically inflation and what it’s done to our bottom lines.
Sean Pyles:
Yeah. Inflation hit a high of 9.1% back in 2022, and we’ve been paying a whole lot more for a lot of things over the last few years. And it’s not subtle, it’s very noticeable. Anna, is there anything specific that has popped up on your radar as more expensive than just a couple of years ago? Something where you said whoa, that is way more than I used to pay.
Anna Helhoski:
Yeah. So I have a bread place near me and a few years ago the prices were pretty reasonable for a big loaf of fresh bread, like $6 a loaf.
Sean Pyles:
Yeah, that’s like New York reasonable, I’ll say.
Anna Helhoski:
Yeah, exactly. No, that’s how I gauge everything. But then flour prices spiked and suddenly the price went up to nearly $10, which is way more than I’m willing to pay. What about you, Sean? Did gecko food get more expensive along with anything else?
Sean Pyles:
Since you mentioned it, crickets for my gecko Ozzy did go up about 12%. I now spend a whopping $2.25 a week for those creepy bugs for the old guy. Of course, it’s not just these one-off items, these are just the things that the two of us noticed in spades. Houses are more expensive, cars are more expensive, credit cards are more expensive. It just takes more out of your budget to buy stuff.
Anna Helhoski:
So what can a president do about it? As we heard in last week’s episode, the answer is not a lot by themselves. They often need Congress or the Fed or both, and sometimes a lot of luck to have an impact on the economy and specifically on prices. But that doesn’t stop them from making all kinds of promises about the changes they’d make if we sent them to or back to the White House. Let’s talk about what they can do in reality.
Sean Pyles:
And as we noted in the last episode, we’re not here to take sides or fan the flames of an already contentious political season. Our goal here is the same one we always have at NerdWallet, to help you, our listeners, make smart informed decisions about the stuff that impacts your finances. Sometimes that means choosing a new high-yield savings account. Other times that means voting for the candidate who you believe will help you achieve your life and financial goals.
All right, well, we want to hear what you think too, listeners. To share your thoughts around the election and your personal finances, leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-N-E-R-D. Or email a voice memo to [email protected]. So Anna, who are we hearing from today?
Anna Helhoski:
We’re talking with Derek Stimel. He’s an associate professor of teaching economics at the University of California, Davis. So not only is he an expert in macroeconomics, but he’s an expert in teaching it. He’ll help us parse what presidents can and can’t do to affect the price of all sorts of goods that we all buy. Derek Stimel, welcome to the show.
Derek Stimel:
Thanks for having me.
Anna Helhoski:
Presidential administrations tend to take the credit or get the blame for things that happen, at least when it comes to public perception. That means that the Biden-Harris administration has taken a lot of flak from the Republican Party and from many Americans for elevated prices that we’re seeing in the wake of the pandemic. And since we are just a few months away from a new administration, can you talk a little bit about how much influence presidents actually have on inflation and prices?
Derek Stimel:
Normally we don’t think of them as the major driver of inflation in the economy. Usually, it’s things like monetary policy, so interest rates, and the supply of money. Sometimes it can also be things outside of the economy, shocks as we sometimes say in economics. So things that happen globally, for example. Having said that, it’s not to say that there can’t be some causes that are driven by policy of the government. For example, in the current situation, some people do point to some government spending that took place in the aftermath of COVID and the policies surrounding that. That might’ve been some fuel for inflation. But it’s not usually the first thing we think of. In this particular situation of our recent inflation, I suspect it’s not the first number one thing causing the inflation.
Anna Helhoski:
Let’s get into some of the campaign promises that each candidate has made. Some of the promises might just be politicking, but some of it could become a reality. Start off with former President Donald Trump’s proposals. Thus far, there have been multiple reports and assessments from economists who say that his proposals, if enacted, would be inflationary. And one of the main drivers of that projected inflation is Trump’s promise to levy 10% across-the-board tariffs on all foreign goods. Can you explain how tariffs and prices interact?
Derek Stimel:
Tariffs are basically a tax on imported goods. For any tax, it’s going to have the following effects on the market, which is, the tax gets levied, let’s just say it’s the 10% just to have a number. And then the businesses basically have to, in a sense, make a decision about do we absorb this tax ourselves, do we pass it on to the customers, and if so, in what proportion? They may not pass on the full 10%, it’s unlikely they’re going to absorb the full 10% themselves. So there’s going to be a split. So in some loose setting, maybe they raise prices by 5% and they absorb 5% of it to get up to the 10, or maybe it’s 8 and 2, or 3 and 7, or what may be. But the point is that basically, it’s going to lead to higher prices on those products.
So in this particular situation, we’re talking about higher prices for imported goods. And I think as we’re all generally aware from our day-to-day shopping and if we ever look at the label of anything, we buy a lot of imported goods in the United States. So it’s not unreasonable to think that raising taxes essentially on imported goods would ultimately boost the prices of those imported goods and then on average raise our cost of living at least somewhat.
Anna Helhoski:
Now, Trump claims that his tariffs would spur American manufacturing and domestic competition for production. Is that something that does happen or would likely happen as a result of tariffs?
Derek Stimel:
So it definitely can happen that there could be some… you know, businesses have to make the best decisions based on the rules of the game as they are. Raising tariffs would definitely change the rules and businesses would likely respond to that. And so to the extent that they could and that the U.S. was a major market to them, at least some businesses would try to reallocate or relocate back into the U.S. in order to avoid this tariff, basically. But I think the question is: Would that be enough to counterbalance the effect of this higher tax across the board? I don’t have hard data on it, but the likely answer is it wouldn’t be enough. So we would still see higher prices as a result, and so we would have to deal with the consequences. But there could be some reallocation or relocation of businesses for sure.
Anna Helhoski:
Another promise Trump has made is to lower gas prices. Under his first administration, he increased oil production and then Biden went further still. So how much can a president impact gas prices?
Derek Stimel:
The gas market or the market for energy more broadly defined is very much a global market, but the U.S. is in a way in a unique position of being the center of that global market. You hear a lot about that the U.S. dollar is this global reserve currency. Oil for example is usually traded in dollars and that sort of thing. So we do have a little bit more power than some other countries. The answer would be maybe a bit different if it was us talking about Canada doing something or whatever. It is also probably true that gas prices or prices of energy in general are really often driven by these global shocks. So in this particular case, the disruptions that took place due to Russia’s invasion of Ukraine are really the prime mover probably of energy prices in the recent years. And it’s not clear that any president would be able to have done something about that directly. Obviously, it’s more of a geopolitical thing than an economic policy thing.
Anna Helhoski:
Switching gears again, I’m hoping you can talk a little about the connection between immigration and the prices that consumers pay for certain everyday goods and services. And note for listeners, as you may know, Trump has promised to use law enforcement and the National Guard to deport many millions of undocumented immigrants. Beyond the humanitarian implications and the logistical questions raised by this proposal, what are some of the economic implications?
Derek Stimel:
Kind of a classic way of thinking about it economically, especially when we’re talking about things like inflation, is that we think that business costs basically would drive a lot of inflation, or at least it could be a prime driver of inflation. And inside those business costs, labor costs are often a large portion of those costs. And of course, that has to do a lot with the supply of labor that’s available relative to the demand for that labor. And so we live in an aging society, the baby boomers are basically retiring. And of course, this is reducing our labor supply or at least likely to reduce our labor supply in the coming years. So what that would mean economically is that would tend to push up wages all else the same, which of course then could also push up prices. Businesses, when they face these increased labor costs, have to make a choice about how much to pass on to customers in terms of higher prices.
So with that all in mind, if you also cut off the amount of immigration into the economy, you would think that that’s likely to put further pressure on wages in the economy. It’s going to further, in a sense, reduce or at least not provide any extra slack for the supply of labor, and so that’s going to further push up wages and further push up prices overall. That’s not to say we shouldn’t think about reforming immigration in some way, shape, or form, but that’s just to say economically that if you reduce the supply of labor, the price of that labor, the wages, and all the other forms of compensation that come with it is going to go up and businesses are going to pass at least some of that on to customers in the form of higher prices.
Anna Helhoski:
And are there any specific areas of the economy that could be altered if you deport millions of people who were already in the workforce?
Derek Stimel:
There’s the initial disruption, uncertainty that would surround it, which could shake out in all sorts of ways, many of which are probably not positive. Imagine the local restaurant down the street suddenly loses half its staff. And what are they going to do? So we would expect a lot of service sector jobs to maybe be impacted by these sorts of things, a lot of things that we interact with daily. And then there’s also this issue about if you create shortages in one area, let’s say you create a shortage in one service sector, it could spill over to other unrelated service sectors as well. Maybe now the one sector has to basically go poach employees from the other one. And so maybe it starts to spill over into other areas where you wouldn’t think of, say, quote, unquote, “illegal immigrants” basically playing a role, but it actually could have this cascade to other markets.
Anna Helhoski:
More of our interview in a moment. Stay with us. I want to talk about Donald Trump’s proposal to weaken the power of the Federal Reserve by bringing the central bank under more direct control of the president. And listeners, we’ve said it before, but the Federal Reserve is nonpartisan and operates independently. That means that the president doesn’t tell the Fed what to do and the Fed doesn’t make its decisions based on politics. Derek, it seems like the separation is pretty crucial to ensuring public trust in the central bank’s ability to make decisions. But if Trump was successful in his plans to more directly influence the Fed’s activities, what are some of those economic implications?
Derek Stimel:
Stepping back for a second, we generally think that the Fed’s main role is to keep inflation, especially over the longer term, relatively low and stable. And one element that tends to be critical to that is their basically credibility to commit to that policy of keeping inflation low and doing what it takes. None of us liked in the recent years the interest rates going up, but it’s seen as this necessary thing to do to bring inflation back down to that longer-term goal. And so the concern basically is that a lot of that comes from the fact that the Fed is independent to some degree from the rest of the government. It’s important to understand that they’re not completely independent. The president plays a role in nominating people to serve in the Fed. Congress obviously has to approve these things. But this general separation of like, oh, you can’t tell us when to change interest rates or you can’t tell us we can’t do this policy and we have to do some other policy or whatever, that tends to be important as this inflation fighter credibility that the Fed has.
If that gets eroded, I think the concern would be basically that people in the economy start to not believe in the Fed as much as an inflation fighter. That lack of credibility starts to make people think, “Well, they say they want 2% inflation, but given that they’re tied to the rest of the government, I think it’s maybe going to be more like two and a half, 3%.” So expectations start to tick up on inflation. And one thing about inflation is that expectations really play an important role and they tend to be self-fulfilling. We all expect five, we’ll get five. And so basically the Fed’s independence is one of… There’s some others of course, but it’s one of the main things that’s tying down those expectations because it’s helping the Fed maintain its credibility to be there when we need them to fight inflation.
Anna Helhoski:
Well, those are the main things I want to talk about in terms of Donald Trump, but I want to switch gears and talk about Vice President Kamala Harris’s plans to battle inflation. She recently unveiled a plan to ban price gouging. So first off, what is price gouging and how have we seen it happen?
Derek Stimel:
So in economics, price gouging doesn’t really have a specific definition, to be honest with you, but the loose idea is that it’s taking, quote, unquote, for lack of a better term, “unfair advantage of a situation in order to raise prices.” Sometimes these situations are obvious, which are… There’s an earthquake that happens, let’s say, so suddenly the price of gas and water in the surrounding area is going to skyrocket. That kind of idea of taking advantage of other people’s misery and something that was really out of their control, a natural disaster, that’s really what we see as price gouging. So in this particular context, what we’re talking about with Vice President Harris is this view where, say, for example, grocery stores taking advantage of the circumstances to basically raise prices on their products in an unfair way. But it’s a bit nebulous once you start to get away from things that I think we all would agree are clearly things out of our control, like natural disasters.
Anna Helhoski:
And is there anything already in place to prevent price gouging?
Derek Stimel:
So states generally have laws that prevent price gouging in the situations we’re talking about like natural disasters, so hurricanes and floods and earthquakes, and so forth. What Vice President Harris is really talking about is basically a federal ban across the board on all forms of price gouging. At least that’s what I understand it to be. And we don’t have that. It’s not really clear what the criteria would be for that as well. So for example, if a company raises prices on its products by 5%, how do we decide if that’s just normal market forces or is it price gouging in some ways? In other words, how do we decide the fairness of it all? Generally speaking, in our economy, we let the markets work that out, and then everybody individually makes a decision about, nope, that’s too expensive, I’m not going to buy it, or I guess I’m willing to pay that price, that kind of thing.
Anna Helhoski:
So some critics of Harris’s proposal, including Donald Trump have said that this is a price control. So what is a price control? Why don’t economists like price controls and would Harris’s proposal to ban price gouging actually be a price control?
Derek Stimel:
Basically, a price control is essentially the government setting a maximum price in a marketplace. So sort of saying, “Hey, you can charge no more than X for this product.” And of course, we have price controls in the economy. The ones that people typically talk about classically are certain cities that have rent control. What people are basically saying is that this price gouging idea would in a way limit how much businesses can raise prices. And that would in a way be similar to what happens in a price control situation where the government often does cap how much a business can raise prices.
The good and bad of economics a lot of times is that there’s tradeoffs for everything. Concern would be basically that maybe grocery stores, because that’s the one that’s been central to all this argument, has really been the price of food, is that basically, maybe you wouldn’t see as many new grocery stores opening up, or at least in a lower frequency. Maybe you would start to see the quality of what’s on the shelves in the grocery stores start to decline a little bit. So on the one hand, you get the prices of the things you buy don’t go up as much maybe, but on the other hand, there’s less of them available and at least for some of them, maybe the quality of those products might go down a little bit.
Anna Helhoski:
So beyond preventing price gouging, Harris has also vowed to lower prescription drug prices and she wants to do this with price caps by allowing Medicare to negotiate prices, speeding up delivery of generic drugs, and cracking down on big pharma. So how impactful could some of these efforts be in terms of making prescription drug prices more affordable?
Derek Stimel:
Oh, it could. Not surprisingly, the federal government via Medicare is a huge consumer in this marketplace, which basically means they have a lot of power, market power we would call. In this particular case, the technical term is monopsony power. But basically, yeah, they would have a lot of power potentially to negotiate and there would be spillover effects for people who don’t have Medicare. In terms of being able to lower, say, prescription drug prices by allowing Medicare to do this giant negotiation basically with the big pharma companies, that honestly could have a big impact on those prices for sure, because Medicare is so huge.
Anna Helhoski:
Right. And you touched on housing earlier, but let’s talk a little bit about Harris’s big proposals with her plans to make housing more affordable. One that really stuck out to me is a plan to prevent corporate landlords from using price-fixing algorithms.
Derek Stimel:
This is a brave new world that we’re in, and there’s a lot of times where regulation is behind the technology, where basically a lot of these businesses… And it’s of course not just in real estate, it’s in a lot of other areas as well, in finance in particular, where they basically use these computerized algorithms to essentially search for the deals that they want to transact. Is it price-fixing or is it the fact that all of these algorithms basically tend to point in the same direction because they often use the same data in order to churn through all their calculations? It’s not clear to me, I guess, how that might be enacted and then also what the implications would be.
Anna Helhoski:
And Harris said she would support construction of 3 million new housing units in the next four years, among other plans. And fundamentally, in order to lower housing prices or rent or the supply of homes for purchase, we just need more housing. So could Harris’s proposals spur more construction? And also what can a president do to facilitate housing growth?
Derek Stimel:
So much of this is local. I mean, so much of this is red tape based on local housing boards and all these other types of things, the “not in my backyard” kind of stuff. And so it’s not really clear what anybody at a national level could really do about that kind of stuff because so much of it is all of the local political machines and so forth that basically drive all these policies. As a general idea, I think the basic point that, yes, the way you have to basically lower housing prices or at least keep them from going up as much is to supply more housing, is definitely the answer. Because the housing market in a sense is unique compared to other markets, in that the supply is basically fixed by the number of units and very, what we would say in economics, inelastic. You’re not going to really get around that unless you just simply build more.
Anna Helhoski:
Derek, are there any other proposals from either of the candidates that we’re overlooking that could contribute to lowering prices or to increasing inflation?
Derek Stimel:
I think the last thing I would mention, I guess. I know President Trump wants to increase the domestic production of natural gas and coal and all that sort of thing. And I do find it interesting that both Vice President Harris and President Trump have focused on these areas of inflation. In the case of former President Trump, it’s energy costs, and in the case of Vice President Harris, it’s basically food costs. And these are the things that are specifically excluded by the Fed when they’re looking at the longer-term measures of inflation. So I just find it interesting that both presidential candidates have focused on these highly volatile markets, which we often think they really can’t do that much about, and that are often driven by these global forces, basically. But both of them have focused on those as their avenues to bringing inflation down.
I think the very last thing I might add in, which is probably too big to really get into, is the extent that the deficit and the national debt might play in terms of inflation in other parts of the economy, especially going forward as it’s ballooned a lot. There are some theories out there, for example, that it does play a role in inflation and to the extent that the policies of the two candidates might add to the deficit, and of course, then by extension add to the debt. That could be in a way a hidden inflation factor that we tend to not focus so much on.
Anna Helhoski:
And one we’ll probably pay for in the future.
Derek Stimel:
Yeah, somebody will eventually.
Anna Helhoski:
Derek Stimel, thank you so much for joining us today.
Derek Stimel:
Yeah, absolutely. Thank you so much for having me.
Anna Helhoski:
Sean, there’s something else I want to point out that I didn’t get to in my conversation with Derek, but came from researching an article on this topic, and that’s price tolerance. Right now, people are still pretty price intolerant because so much is elevated from where we remember it being. But if prices actually did drop across the board, it would be a big problem. Economy-wide price drops really only happen when there’s a big recession. And I think Trump and Harris’s campaigns both know this. They can’t bring back pre-pandemic prices, so what they can do strategically is make promises that are most relevant to people.
Sean Pyles:
Right. And last week we talked about how one individual president can’t really transform the economy on their own. But your conversation with Derek Stimel illustrates how a president’s priorities can make a bigger impact on an issue-by-issue basis. Former President Trump is focused on lowering the price of gas. Vice President Harris wants to make housing more affordable. And we saw how President Biden was able to push for lower prices on certain drugs like insulin. Although we should note, of course, that Biden wasn’t able to do that without the help of Congress.
Anna Helhoski:
So Sean, one other thing. Maybe it’s obvious but it’s worth saying, is that while we have pointed to a lot of ways in which a president cannot really control things like pricing, the president is also the leader of his or her respective political party, and that often means that the party and its political leaders will coalesce around these policies, making them more viable.
Sean Pyles:
Yep. We’ve mentioned that the president often has to work with Congress to get bills passed that can fulfill their promises. And members of their party, while they don’t necessarily march in lockstep, they will frequently work with that president to pursue his or her economic agenda. So no, the president can’t wave a magic wand, but if their party also has control in Congress, that makes a world of difference in the ability to make those goals happen.
Anna Helhoski:
And that’s a case for making sure you’re paying attention to what candidates are saying up and down the ballot. The presidential candidates aren’t the only ones to make a difference. Do some research on your congressional candidates, and for that matter, city council and school district, because they all touch public money and that’s your money. It always helps to educate yourself on how they plan to spend it. You can find the latest money news updates in NerdWallet’s financial news hub, which we’ll link to in the show notes, or just search online for NerdWallet financial news.
Sean Pyles:
So Anna, tell us what’s coming up in episode three of the series.
Anna Helhoski:
Well, Sean, next time we’re using a word nobody likes but matters a lot to your finances: taxes. We’ll hear what the current candidates for the highest office in the land want to do with the money that comes out of your paycheck.
Amy Hanauer:
Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans. So to the richest 20% of Americans. So just for a sense of what that will cost, in 2026 alone, that will cost more than $280 billion.
Anna Helhoski:
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-N-E-R-D. 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.
Sean Pyles:
This episode was produced by Tess Vigeland and Anna. I helped with editing. Rick VanderKnyff and Amanda Derengowski helped with fact-checking. Megan Maurer mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Anna Helhoski:
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.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Achieving your financial goals in life isn’t just about how much you earn; it’s also about your money mindset. Some of our most deeply held beliefs are about money. What does financial success look like to you? Do you think of yourself as a spender or a saver? Do you avoid talking or thinking about money? The answers to these questions all reflect your money mindset. Changing these ideas can be challenging but worth it.
To create a solid financial future, it’s essential to have a strong, positive money mindset. So, if your financial habits need a little (or a lot of) work, here’s how to change your money mindset. Read on to learn:
• What is a money mindset?
• What is a negative money mindset?
• How can I change my money mindset?
• Why is reshaping my money mindset important?
What Is a Money Mindset?
Your money mindset is your approach to handling money. It determines your spending and saving habits as well as your motivations for your financial management.
Whether you are aware of it or not, everyone has a money mindset — a collection of beliefs starting from childhood that shape what you do with your money. (Your money mindset could even be, “I never think or talk about money.”)
Your money mindset can lead to both positive and negative financial decisions.
For example, have you automated your savings, or do you think saving isn’t something you need to or can focus on just yet? Do you use a budget? Can you treat yourself occasionally, or is buying a $5 coffee not a part of your financial plan? Your money mindset characterizes your relationship with money, and so it is essential to understand and possibly tweak it.
What Is a Negative Money Mindset?
A negative money mindset is a set of unhelpful financial beliefs that can lead to poor resource management. It often involves a constant feeling of stress or guilt regarding money or simply disorganization. It may also involve the belief that “if I just made more money, things would change or all my problems would be solved.” While a higher salary or inheritance might help you toward your financial goals, having more money won’t necessarily change your financial mindset.
While it may seem counterintuitive, your income level doesn’t automatically determine your sense of financial freedom. Additionally, it’s worth noting that your money mindset exists whether you’re conscious of how it influences your behavior or not.
Here are some examples of the ways in which a negative money mindset might have a bad influence on your life:
• You might spend too much money due to comparison with others. You see a friend or colleague renting a pricey apartment and think you should too. That can be an aspect of lifestyle creep, in which your spending increases as your income grows, preventing you from saving and acquiring assets.
• You might not save for long-term goals, like a house or retirement, because your parents never wanted to talk about money when you were growing up.
• Because money stresses you out, you might fail to set financial goals, like paying off your student loans on time.
If it feels like you’re in this negative zone when it comes to your finances, know that you are not saddled with it for life. We’ll explore how to develop a money mindset that’s more positive and productive later in this article.
How Your Beliefs on Money Affect Your Finances
Your primary, most powerful beliefs about money most likely come from your parents and your childhood. Children typically absorb financial beliefs from the most influential people in their life. Then, as they grow older and begin handling money, they live out those financial beliefs, for better or worse.
For example, if your parents modeled money as a way to pamper yourself, you may find that you impulse-shop when life becomes challenging. Your money mindset is that spending equals financial self-care.
On the other hand, you may have a reputation among your friends as “cheap” because you grew up in a penny-pinching household that considered luxuries a waste of money. In both cases, your money mindset puts your financial habits into motion.
These examples underscore that children tend to mimic the behaviors of their parents and adopt their money habits in their own adult life. But in some cases, it’s the opposite. Some people will go to great lengths to not be like their parents. For example, if your parents refused to buy anything that wasn’t on sale when you were growing up, you may make a point of never looking at price tags as an adult.
Why Reshaping Your Money Mindset Is Important
It’s crucial to address negative money mindsets. Otherwise, you’ll likely continue to act on the same faulty beliefs, which can keep you from building the balance in your savings account and reaching your financial goals.
Recognizing an unproductive facet of your money mindset gives you the power to change it. By asking yourself questions about how you currently treat your money and how you’d like to change, you can reorient yourself and create a long-term financial plan. In fact, reshaping your money mindset may include setting financial goals for the first time in your life.
By changing your money mindset you can take full control of your finances, break bad spending habits, and reach your goals.
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How to Change Your Money Mindset
While your upbringing and core experiences impact you in significant ways, you have the ability to recast your money mindset or create an all-new one. When reshaping your money mindset, the following tips can help you transform unhelpful financial behaviors into life-changing, literally enriching habits.
Success With Money Is a Possibility
One key to changing your money mindset is to increase your confidence in your abilities. Don’t count yourself out because of your background or financial circumstances — it’s possible to change these patterns.
Whether you’re working up the courage to sit down and make a beginner’s budget, tackle lingering debts, or give yourself permission to make a fun but totally unnecessary purchase, believing it’s possible is crucial for your success. Perhaps saying affirmations will help you, or maybe reading about others who have attained what you are dreaming of will work best. The right technique is a personal decision.
Understanding Why You Feel This Way
Money is emotional for everyone. Feeling anxious, worried, or excited about your money is normal. Our emotions are rooted in beliefs; therefore, you might feel elated or stressed on payday depending on the beliefs you’re associating with your money. You might crave the feeling of going shopping or you might wake up in the middle of the night worried about your car payments.
Delving into how much money you have coming in and going out can help you better manage your funds. If you have a financial plan that allows you to sock money away and also treat yourself a few times a month, getting paid might create feelings of satisfaction or confidence. Hence, your money mindset is creating positive emotions for you. However, if your paycheck reminds you of your mounting bills, it’s probably time to identify where these feelings are coming from. This way, you can start shifting your money mindset to elevate the stress and anxiety.
Additionally, the more you avoid money, the more intimidating it can feel. Even people with plenty of income might run from figuring out their living expenses because it sparks negative emotions.
Avoid Comparing Yourself to Peers or Social Media Standards
Parents aren’t the only ones who influence your money mindset. Peers and mainstream culture send messages about what success looks like or how to best manage your money.
But what others do or think is irrelevant to your money situation. Also, what works for someone else may or may not work for you, especially if you have different goals. Plenty of general financial principles are worth adhering to, but even those aren’t set in stone. For example, a common guide for budgeting is the 50/30/20 rule, which advises dividing up your take home income like so: 50% on necessities, 30% on wants, and 20% for savings and debt repayments beyond minimum. If you live in a high-cost area, however, earmarking 50% of your income for your needs may not be enough, since you may need to put a large portion of your income towards housing. So, you may need to adjust certain “rules” to fit your situation
Overcoming Your Financial Fears
Change can be scary, and so can money, so cut yourself some slack if you’re afraid of changing your money mindset. It can be comfortable to settle back into the familiar, even when it’s not working.
However, overcoming financial anxiety and developing a positive money mindset is possible. Forge ahead at your own pace, and explore your money mindset: What are the things that worry you about money? Where are your biggest fears coming from?
As you unpack that, remind yourself of your motivation to change. Keep your goals at the forefront, and encourage yourself to take a step in that direction. Taking a small but concrete action toward your goals is how to develop resilience, a key characteristic for succeeding in life.
Recommended: Should You Pay Off Student Loans or Invest?
Avoid Dwelling on the Past
As you attempt to change your money mindset, there may be errors from the past sticking in your mind, reinforcing the idea that you are bad at financial management. Dwelling on the past can stop you from creating a different future. The failures, mistakes, and traumas from the past are real — but they don’t have to define you. For example, if you’ve endured a romantic breakup, that doesn’t mean you can’t date again and find love. In the same way, just because you had too much credit debt recently doesn’t mean you can’t get that issue wrangled.
It’s a good idea to jettison this kind of looking-back viewpoint. Instead, try putting your efforts toward what you can change in the present and strive to achieve in the future.
The Takeaway
Your money mindset is the attitude and beliefs that form your relationship with your personal finances, and it drives your financial habits. Since most people pick up unhealthy financial habits along with healthy ones, it’s crucial to recognize the financial beliefs that aren’t serving you. Then you can set about changing your money mindset and shifting your behavior to better achieve your goals.
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FAQ
How do I get rid of a money scarcity mindset?
The belief that you never have and never will have enough money is part of your money mindset. To change that belief, identify where the mindset came from and make a positive change, such as setting a small savings goal and achieving it.
What is a poor money mindset?
A poor money mindset consists of unproductive beliefs about money that lead to negative financial decisions and habits. An unhealthy relationship with money when growing up or having made past financial mistakes can create a poor money mindset.
How is a money mindset formed?
You form your money mindset through the financial beliefs you hold as true. Your childhood, peers, and financial successes and failures help define your money mindset.
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SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/8/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
When thinking about moving to Kansas, there are several factors to consider, such as job opportunities, lifestyle, and the overall sense of community. With its blend of peaceful small towns and thriving cities, the question naturally comes up: is Kansas a good place to live? In this article, we’ll dive into what life in Kansas looks like and provide a balanced view of the pros and cons of settling in this state. If you’re drawn to its rural charm, we’ll help you decide if Kansas could be the right fit for you.
Is Kansas a good place to live?
Living in Kansas provides residents with a balance of quiet rural charm and accessible urban conveniences, with wide-open landscapes, and a relaxed pace of life. Larger cities like Wichita and Overland Park have diverse cultural scenes, featuring theaters, galleries, and local festivals that cater to many lifestyles. The arts community flourishes, supported by institutions like the Wichita Art Museum and the annual Tallgrass Film Festival.
Additionally, if you enjoy outdoor activities, Kansas has much to offer, with an extensive network of parks, trails, and lakes ideal for hiking, biking, and fishing. The scenic Flint Hills and expansive prairies provide breathtaking settings for weekend adventures. While life in Kansas offers a laid-back lifestyle, there are still challenges to keep in mind, such as extreme weather and limited entertainment options in rural areas.
Kansas state overview
Population
2,937,880
Biggest cities in Kansas
Wichita, Overland Park, Kansas City
Average rent in Wichita
$881
Average rent in Overland Park
$1,571
Average rent in Kansas City
$962
1. Pro: Kansas has affordable living
Kansas is known for its low cost of living, making it a great place to call home. With low rental prices and relatively affordable utilities, groceries, and healthcare, residents can enjoy a higher quality of life on a modest income. Cities like Wichita and Topeka provide a variety of housing options at reasonable prices, with the average rental rate in Wichita around $900 per month and Topeka’s average at approximately $800 per month. This affordability makes Kansas especially appealing for first-time homebuyers and those seeking financial stability.
2. Con: Extreme weather conditions can disrupt daily life
Kansas experiences a wide range of weather, from blistering hot summers to frigid winters, and is prone to severe storms, including tornadoes. The state lies in the heart of Tornado Alley, making tornado preparedness a necessity for residents. Additionally, the drastic temperature swings can be difficult to adjust to, with humid summers and icy winters creating challenges for daily life. Those who prefer mild, predictable weather might find Kansas’s climate to be a significant drawback.
Insider tip: When you’re moving to Kansas, it’s essential to familiarize yourself with local tornado sirens and emergency plans, so you are prepared.
3. Pro: Friendly communities
Kansas is known for its tight-knit communities, where neighbors look out for each other and local events. The state’s small-town charm and welcoming atmosphere make it easier for newcomers to build connections. Cities and towns often host community events, such as fairs, festivals, and parades, that bring people together and celebrate local culture. This emphasis on community can make Kansas a good place to live.
4. Con: Limited entertainment options
While Kansas offers outdoor activities and events in bigger cities, the state can feel lacking in terms of urban entertainment and nightlife. Major cities like Kansas City and Wichita have some options, but they don’t compare to the nightlife scenes in larger cities like New York or Los Angeles. Bars, clubs, and trendy dining spots are fewer and farther between, leaving some residents craving more excitement. Those looking for a vibrant cultural scene or diverse entertainment options might find Kansas less stimulating.
5. Pro: Prairies, rolling hills, and beautiful skies fill the state
Kansas may not have mountains or oceans, but the prairies, rolling hills, and expansive skies make up for it. The state is home to stunning sunsets, scenic byways, and parks like the Flint Hills, which showcase the beauty of the tallgrass prairie. You can enjoy activities like hiking, fishing, and birdwatching in the state’s various nature reserves and wildlife areas. Kansas’s natural beauty provides a peaceful backdrop for those who appreciate the tranquility of the outdoors.
Insider tip: One of the best places to experience the Flint Hills is the Konza Prairie, just outside Manhattan, where you can hike the trails and even spot bison grazing in their natural habitat.
6. Con: You could feel isolated
Kansas has many rural areas, and while this provides peace and quiet, it can also lead to feelings of isolation for those who prefer a more active or connected lifestyle. In more remote areas, access to services like healthcare, shopping, and entertainment can be limited, requiring long drives to nearby towns or cities. This isolation can also mean fewer opportunities for socializing or engaging in cultural activities.
7. Pro: Strong agricultural roots
As one of the leading agricultural states in the U.S., Kansas provides a sense of pride and opportunity for those connected to farming and ranching. The state’s robust agricultural industry fuels the economy and creates a community for those involved in farming. Local farmers’ markets, agricultural fairs, and festivals celebrating the state’s farming heritage are common, adding to the charm of rural life. For those interested in a slower-paced lifestyle and a deep connection to the land, Kansas’s agricultural roots are a major draw.
Insider tip: don’t miss the Lawrence Farmers Market, held every Saturday, where you can find fresh, locally grown produce, handmade goods, and delicious baked treats—all while enjoying live music.
8. Con: Limited job market diversity
While Kansas has a strong agricultural base and growing industries in aviation and manufacturing, its overall job market lacks the diversity seen in larger states. Opportunities in fields like tech, finance, and entertainment are fewer, which may be a challenge for professionals in those sectors. Many residents need to relocate to find specialized positions or remain in more traditional job roles available within the state.
9. Pro: Low traffic and easy commutes
Kansas’s relatively low population density and well-maintained roadways make for easy commutes with minimal traffic. Whether you’re living in a city like Wichita or a smaller town, you’ll likely find that getting to work, school, or other destinations is less stressful and time-consuming compared to more congested urban areas. The lack of gridlock allows residents to enjoy a better work-life balance and more time spent at home rather than stuck in traffic.
10. Con: You’ll have to get used to the strong winds
Kansas is notorious for its strong winds, especially in the central and western parts of the state, where open plains leave little to block gusts. These high winds can be a nuisance, making outdoor activities less enjoyable and causing problems like dust storms, property damage, and increased energy consumption due to drafty homes. The constant winds can also make winters feel colder and more biting, while making summer heat even more intense.
Do you want to learn how to become a photographer? Many photographers are making $50,000 and over each year. Today, I have a great interview to share with you. I interviewed my friend Sydney Hampton on how to become a photographer. I actually met her when I hired her to take my maternity photos, and…
Do you want to learn how to become a photographer?
Many photographers are making $50,000 and over each year.
Today, I have a great interview to share with you. I interviewed my friend Sydney Hampton on how to become a photographer. I actually met her when I hired her to take my maternity photos, and later on my newborn photos. We stayed in touch, and I recently asked her if I could interview her for this article.
Sydney is a photographer who focuses on family, couples, maternity, branding, and newborn photography.
The demand for this kind of photography is high, and many people are looking for quality photographers for these types of photos.
Are you wondering questions such as:
How much money can a professional photographer earn?
Is there room for new photographers?
What equipment does someone need to become a photographer?
How many hours does it take each week to run a photography business?
If so, these questions, plus more, will be answered in today’s interview about how to become a photographer.
Today’s interview will help you get started and perhaps even introduce you to a new way to work at home.
Recommended reading:
Tell me your story. Who are you and what do you do?
My name is Sydney Hampton and I am a wife, mom, and photographer. I am the face behind Sydney Hampton Photography. I love being a photographer and helping others figure out their path in the world of photography.
I am also the creator of The Mom Photographers, a group that helps moms who are photographers get more organized, manage their time better, and grow their businesses so that they can grow their business while balancing life as a Mom. The Mom Photographers is a community, educational hub, blog site, and we have a podcast on Spotify that features moms who are photographers and business owners.
What kind of photography do you do?
I do several types of photography, but currently I focus on family, couples, maternity, and newborn. Maternity and newborn have my heart, but I have also done many other types of photography including weddings, senior portraits, and business and branding photography.
This year, I am really focusing on family, maternity, couples beach photography and in-studio sessions such as newborn and business branding. As a photographer in a prime vacation destination, I tend to do a lot of beach mini sessions and have found that men and children are usually not up for full sessions. This has helped to truly launch my business to another level where I am able to do mini sessions weekly.
Why did you decide to become a photographer? How did you get started?
I have always loved photography and really started getting into it in about 2006 when I was in high school. I grew up with photography all around me; my Dad was a professional sports photographer. So from a young age, I learned how to shoot in manual and learned important key things like composition.
Like many though, I really thought of myself as an amateur, especially being around family members like my dad and his brother, my uncle, who also is a photographer but an amazing wildlife photographer. After the first 2 years of college, I put my camera down for a few years. When my father passed, I inherited his camera and really picked it back up as a way to connect with him.
To be honest, it was my husband who gave me the confidence to become a professional photographer. After watching me for 2 years continuously take photos of landscapes, our van, and dog on road trips and seeing the passion I had for it, he convinced me to take a leap and go for it.
I truly decided to become a photographer as a way to do what I love, and maybe make some money. With my husband’s support, we were prepared for it to make nothing, so the risks were low.
In the beginning, I attribute all of my success to the military community! As a military spouse, I was able to reach out to the military spouse community and have clients that I still service 5-plus years later and in different states! The support from that community has been ongoing. I was able to grow a following on Instagram and Facebook, which really helped create my business as a Florida Keys vacation photographer. Having followers and clients who shared my work regularly, allowed me to establish credibility and book new clients.
What do you like about having a photography business?
My favorite part about having a photography business is that I get to be with home with my kids all day every day. Having the freedom to create my schedule, be with my family, and to be creative is beyond any financial benefit. While this year has been my busiest and most financially beneficial year thus far, I have made sure to dedicate time to doing things with my kids where I can set my phone aside. I have found that the biggest blessing has been to step away from work and not be worried.
I love how diverse photography as a career is. For example, it can be very simple like just stock photography on the side, or just weddings or you can open a studio and become a portrait and newborn photographer… Or you can do it all! You can photograph events such as weddings for thousands per wedding, do family sessions, maternity, business advertising, even sell products like landscapes, start blogs and podcasts, create courses, write books, and more. Just like with many other opportunities, the sky is the limit – it’s a perfect career for someone creative and driven, yet also great as a side gig.
I have been fortunate to see many sides of photography from just word of mouth within a small community with a few clients to over 400 clients so far this year alone. I have loved that I get to meet new people with each shoot and that I am able to connect with people from all walks of life.
I believe in growing and learning from others, which is part of why I created a community called The Mom Photographers where I host a podcast/blog and talk with other moms who are photographers about all the topics we face. Things like how do you edit with kids, what does workflow look like when you have kids, and ways to get started. Through The Mom Photographers, I will also be releasing educational videos, courses, presets, and doing hands-on/virtual workshops.
How much money can a professional photographer earn?
Again, it’s all flexible. You can do it very part-time and only make a few thousand a year or you can make a million. It truly depends on a few key principles such as the amount of time and effort you want to put in, the quality/ consistency of your work, and the type of photography you choose to do.
On average, most photographers can expect to make about $50,000 in a small town or non-tourist destination.
In a tourist destination or bigger city it is easy for a photographer to make $75,000+ with the right tools in their pocket and a quality consistent product. Now, I’m not saying anyone who just buys a camera can walk out and expect to make $75,000. It takes professionalism, some business knowledge and having a quality product that people want to buy. It also takes time, but working with a mentor or shadowing a photographer are ways to speed that up. I have also found that those who do start with a mentor or who work under an established photographer their first year tend to make more money and be more successful in the end.
I am actually mentoring 5 photographers currently and just hosted a styled shoot with 12 other photographers. To me, connecting with others is key! So to be able to host a shoot that I create and make money is a blessing.
What equipment does someone need to become a photographer? Do they need to spend a lot of money to get started?
Someone looking to get started will need a camera, a lens, computer and a few programs to help make them successful such as Lightroom. To get started as a family, couples or wedding photographer I definitely suggest having a professional level camera/lens set up.
I always suggest shadowing and making sure it’s what you definitely want to do before you invest in equipment. Knowing that this is the right path for you is step one.
I actually have a free course called: Is Photography Right for you? My goal with this course was to lay out a realistic expectation of what all is involved to start and be successful in the photography industry.
Below is some more in-depth information on what equipment you need to become a photographer:
Camera – I highly suggest starting with a Professional camera. I suggest going with a mirrorless camera. I am a Nikon user, and I suggest getting the best camera you can within your budget. My top suggestion is the Nikon Z 6II which you can find lightly used for around $1300 or Nikon z6III $2500 which was just released in summer 2024. It’s good in low light, sharp, and easy to use. If it is out of your price range, then go for the Z50 would be my next suggestion (which is $1,000 brand new or used around $750). I currently have 2 cameras, a Nikon Z 6II and a Z8 which is my new camera, I went with the Z8 over the flagship Z9 for 3 reasons.
1. It’s smaller and lighter
2. It uses the same batteries as the Z 6II.
3. It was the same performance but less expensive.
Lens – I definitely recommend when you buy your camera to not purchase it with a kit lens. Buy a lens appropriate for the work you would like to do. Example: family, maternity, or portraits – go for a 35mm or 50mm lens with an f-stop of 1.8 or lower, then later add lenses such as 85mm, 50mm, 35mm, and 70-200mm. I like to shoot with a lower f-stop because I like the subject isolation and blurred background. For Family, Maternity and newborn I definitely suggest having a 50mm and a 35 mm. My favorite lens is my 50mm 1.2 this lens gives dreamy background and crisp images. The kit lens often does not hold value for resale well, and it’s better to just buy the camera body without it. Nikon just released a 35mm 1.4 lens which is $599.
Computer – I use an Apple MacBook to do all of my editing. I edit on Lightroom primarily and also on Photoshop. I also use several other programs to assist me in saving time that I go more in-depth with in a few of my Mom Photographer blog posts (Aftershoot, Portraiture, Imagen AI, and Topaz). For newborns and Portraits, I love Portraiture!
Website- You can actually start your website for free through Pixieset. I have been using them for 6 years and they are amazing, I love how everything is integrated. It is not only the host site I use now but how I book clients and deliver galleries. Pixieset also has a print store, and is always looking for ways to improve. Once you do get more involved and find yourself needing to upgrade the prices are still reasonable at $19/month and up. You will still need to get your own url from a site like GoDaddy and you can connect that to your Pixieset.
With those things, anyone can start. The list grows with what type of photography, so I suggest starting simple in one type of photography, like aiming for just family or just branding.
Note about the camera purchase: You can start with an older camera or with what ever camera you have. The goal with starting with an older camera would be to learn to shoot in manual, as well as to learn composition. Just definitely plan to set aside money to upgrade to a professional camera as soon as you can so that you can provide clients with a quality product. Also depending on the photography route you choose you could also start with a camera like a good drone! Think landscape, real estate, marketing, weddings or a way to earn income while saving up for your professional camera. Lots of professional photographers love to work with people who can provide drone video and photo images.
What is your typical work schedule? How many hours does it take each week to run a photography business?
My typical work week varies depending on the time of year. I have weeks where I maybe work 5 hours and other weeks where I work 30 plus. But in general, even at my busiest, I still have freedom to do things with my family that matter, like church 2x a week, dance class 2 days, or enjoy time with my family and our little farm.
Each morning, I spend the first 15 minutes checking all emails, scheduling social media posts, and responding to DMs. I often also find that my best editing hours are between 10 p.m. and 3 a.m. because I have a two- and four-year-old! Batching content is also a great way that I save some time.
Is there room for new photographers?
Many may say no, but I say Yes!
Lots of room, and there will be room for anyone new. In any industry, there is always someone who is burned out, not driven, not open to changes in the industry. There is always a new style, but even more so, there is simply just a huge range of customers and what they are looking for.
There’s someone who wants a $100 shoot or a $10,000 shoot. So it’s important to know where you want to fall in there and to aim for how to build your business and create the quality product worth what you want your target market to be.
For new photographers, you can be a second shooter or an associate shooter for a well established photographer. This is a great way to start while still working a regular job and never have to edit anything except what you want for your own personal use. This is something most photographers, including myself, don’t know before taking the plunge to be professional.
Looking back, this is the perfect approach for someone with a job or a busy life not wanting to ruin their name doing free shoots and never gaining repeat clients. It’s also a great way to learn and cash flow everything while not taking huge risks.
Also, I am a strong believer in being a business with insurance and everything you need to be legit. You can start as a luxury photographer without having to spend 10 years to get there, but you need to be able to create a luxury product consistently, and that does take some time and guidance from others such as mentors. You will need honest feedback from someone who knows photography well.
Can you list the steps to get started with a photography business?
First make sure its something you want to do, my suggestion is shadow someone, watch Youtube videos or take a course like my free course: Is Photography right for you?
Next is get a camera, or even rent one, to learn how to shoot in manual and to build a portfolio for Instagram and your website. You should have 50-200 unique edited images that you feel, and others honestly feel, show the quality of what you would like to charge for your website.
I have found that honest criticism is key to success, so being able to hear someone say, “No, I would not pay $350 for your work,” and why is important. All friends and family will always sing your praises, but you need to know what clients or potential clients think when they look at your website. Be open to criticism, and allow it to help you grow, don’t ever let it set you back!
What are your best tips for someone who wants to become a photographer?
Find a prominent photographer in your area to shadow, or mentor under. You can even shadow or mentor under me from anywhere in the world. I also can help you find a reputable photographer in your area. Shadowing is really a great way to start.
My biggest tip, keep learning. The industry is constantly changing, growing with it is key!
Always accept criticism and be open to seeing your work through the eyes of others even if its discouraging at first it will help you to grow in the long run and eventually you will become your harshest critic.
Figure out the style you want to portray and use a preset to create consistency in your work.
Build a website and social media following.
Shoot as much as you can, even if it’s your neighbor or kids.
I do offer a mentorship program with an in-person and a virtual mentorship option. You can find the mentorship program information by clicking here.
What are your goals for your photography business for the future?
My goals for this year, now that I have hit a 6-figure-income photography business, is to create passive income. I would also like to grow and spend more time with my family.
Knowing that our family would like to possibly add another little one in the future and that I tend to take off up to 6 months postpartum, having passive income or finding ways to keep my photography business moving while I am out has been my goal.
With this in mind I created a team this past year, started another blog and a podcast. I also created The Mom Photographers to not only achieve my goals but also to help other moms have a one-stop shop to learn, grow, vent, and connect with other moms who are photographers. The Mom Photographers is a Facebook group as well as a website, blog, podcast, community, and educational hub.
I will be releasing a few courses in the next 6 months:
Is Photography Right for You?
How To Get Started as a Professional Photographer While Being a Mom
The Mom Photographers Course for Established Professionals Looking To Grow and Dedicate More Time With Their Family
Kids- College guide to photography as a Job: with a focus on growing wealth at a young age and avoiding debt.
I will also be going more in-depth with the podcast and YouTube, adding free educational information, weekly tips, advice from experiences myself and others have learned, business trends, and ways to grow.
My financial expectation this year is to hit $175,000 and 3-5year goal is $1 million/year. I always aim to set realistic expectations and my goals are higher. Over the last few years my income has grown each year by 50-100 percent, so for me a competitive goal keeps me motivated.
I am fortunate to have my husband, a retired military warrant officer, to be my support system and help me in all aspects. My husband is my rock who not only homeschools our kids while I do shoots but also drives me to each shoot and helps me stay on task. Without him, I would be nowhere near as successful. It is imperative for anyone’s success that they have a good support system if they have kids or a family.
We are also fortunate to have zero debt including our home – our mini modern farm, as we call it! Complete with our 4 dogs, 2 cats, 10 ducks, and 13 chickens.
Photography has very much been a financially freeing stream of income that has allowed us to live in a million-dollar paid-for home on top of my husband’s retirement from the military. It also allows our children to grow up with the unique opportunity of having both parents with them every day. I am 34 and my husband is 45, we believe in being debt free and cash flowing everything. Making Sense of Cents often talks about the many benefits of financial freedom, and how to grow wealth. When I mentor photographers I also make sure to include how important it is to not build a business on debt, and that saving for three categories is imperative- taxes, emergency fund, and equipment upgrades.
Thinking about moving to California? From the stunning Pacific coastline to its lively cities and iconic cultural hotspots, California provides a lifestyle as diverse as its geography. Whether it’s the endless sunny weather in Los Angeles, the innovation buzz of Silicon Valley, or the natural splendor of the Sierra Nevada mountains, California has plenty to offer. But if you’re asking yourself, “Is California a good place to live?”, this guide will walk you through the pros and cons of living in California.
Is California a good place to live?
Living in California means immersing yourself in a state known for its innovation, cultural diversity, and striking landscapes. Whether you’re attracted to the energy of Los Angeles, the tech-centric pulse of San Francisco, or the peaceful charm of smaller cities like Santa Barbara or Napa, you’ll likely find somewhere you’ll love.
California also comes with its challenges, from a high cost of living to heavy traffic, particularly in metropolitan areas. But with a booming economy, top-notch education, and outdoor opportunities, it’s easy to see why so many choose to call California home.
California state overview
Population
331,449,281
Biggest cities in California
Los Angeles, San Diego, San Jose
Average rent in Los Angeles
$2,789
Average rent in San Diego
$2,830
Average rent in San Jose
$2,931
1. Pro: Abundance of job opportunities in diverse industries
One of the biggest perks of living in California is access to diverse and thriving industries. Whether you’re in tech, entertainment, agriculture, or tourism, California offers unparalleled job opportunities. Silicon Valley remains the global hub for tech innovation, Hollywood leads in media and entertainment, and the Central Valley is a key player in the nation’s agricultural production.
2. Con: Sky-high cost of living
While California boasts many benefits, it’s also one of the most expensive states to live in, especially when it comes to housing. Cities like San Francisco and Los Angeles consistently rank among the most costly places in the country. For example, in San Francisco, the average rent for a one-bedroom apartment is around $3,540 per month, while in Los Angeles, it’s approximately $2,789. In San Diego, rental prices hover around $2,830 for a one-bedroom, and even in smaller cities like Sacramento, the average rent is close to $2,107. Despite higher salaries in these regions, you’ll still need to budget carefully to cover housing, utilities, and groceries.
Insider scoop: For more affordable living in California, consider renting in less central areas such as Sacramento, Fresno, or Riverside, where prices are more reasonable but amenities are still close by.
3. Pro: Incredible natural beauty and outdoor recreation
California is a paradise for outdoor adventure. From the beaches of Southern California to the snowy peaks of the Sierra Nevada, and the breathtaking landscapes of Yosemite and Redwood National Parks, the state is home to some of the most iconic natural wonders in the world. Year-round sunshine makes outdoor activities like hiking, surfing, skiing, and wine-tasting accessible no matter where you live.
Local insight: For spectacular views and fewer crowds, check out Lake Tahoe in the fall for stunning foliage or Big Sur for some of the most scenic coastal drives in the nation.
4. Con: Traffic congestion and long commutes
Anyone who has lived in California can tell you that traffic is one of the state’s major drawbacks. Whether it’s the constant jams on LA’s freeways or the gridlock in the Bay Area, getting around can be a serious challenge. Public transportation in cities like San Francisco and Los Angeles exists but isn’t always the most reliable or efficient, leaving many Californians stuck in their cars for hours each day.
5. Pro: World-class dining
California has plenty of world-class dining, offering a mix of global cuisines. In Los Angeles, you’ll find authentic Mexican street tacos in the historic Olvera Street district, while San Francisco is renowned for its fresh seafood and Asian fusion dishes like dim sum in Chinatown or the trendy Korean barbecue spots in K-Town.
Insider scoop: Head to the lesser-known Cassia in Santa Monica, where Southeast Asian flavors meet California’s farm-to-table ethos in dishes like their spicy lamb curry.
6. Con: California has high taxes
California’s high cost of living is compounded by steep taxes. The state has one of the highest income tax rates in the country, with a top bracket that affects high-income earners the most. Additionally, sales taxes in many areas are above the national average, which can further increase the cost of living.
7. Pro: You’ll be able to enjoy Mediterranean climate
The state’s climate is one of its biggest pros of living in California. Most of California enjoys a Mediterranean climate, with mild, wet winters and hot, dry summers. This makes California perfect for those who enjoy warm weather year-round, particularly in Southern California, where temperatures rarely dip below the 60 degrees Fahrenheit, even in winter. Northern California sees more seasonal variation, with cooler temperatures and rainfall in the winter months.
Insider scoop: If you’re looking for cooler weather but still want to enjoy the California lifestyle, check out the coastal cities like Santa Cruz or Monterey for milder temperatures year-round.
8. Con: Risk of natural disasters
California’s sunny reputation comes with a downside: the state is prone to natural disasters. Earthquakes, wildfires, and drought are serious concerns. Earthquake preparedness is a must for anyone living along the coast, while residents in more rural or mountainous areas should be prepared for potential wildfire evacuations, especially during the summer and fall seasons.
9. Pro: Endless entertainment opportunities
California is a hub of endless entertainment opportunities, with something for everyone. You can catch world-class concerts and shows at venues like the Hollywood Bowl or the Greek Theatre in Los Angeles, or spend the day at theme parks like Disneyland or Universal Studios. San Diego offers everything from beach towns to the renowned San Diego Zoo, while the Bay Area is a cultural hotspot with its museums, art galleries, and tech-driven attractions.
Travel tip: Check out The Magic Castle in Hollywood—a private club that offers an unforgettable night of magic, mystery, and exclusive performances.
10. Con: Cities are crowded here
One downside to living in California is the crowded nature of its major cities. Places like Los Angeles, San Francisco, and San Diego are often bustling with people, leading to heavy traffic, long wait times, and packed public spaces. Navigating these cities can feel overwhelming, especially during peak hours or popular events.
When it comes to investing, there are certain rules of thumb that investors are often encouraged to follow. One of the most-repeated adages in investing is to try and “buy low, sell high.”
Buying low and selling high simply means purchasing securities at one price, then selling them later at a higher price. This bit of investing wisdom offers a relatively straightforward take on how to realize profits in the market. But figuring out how to buy low and sell high — and make this strategy work — is a bit more complicated. Timing the market is not a perfect science, and understanding that implementing a buy low, sell high strategy is more complicated than it sounds is critical to investor success.
Key Points
• Buy low, sell high is an investment strategy that involves purchasing securities at a lower price and selling them later at a higher price.
• Timing the market and implementing this strategy can be challenging, as market movements are unpredictable.
• Understanding stock market cycles and trends can help determine when to buy low and sell high.
• Technical indicators and moving averages can assist in identifying pricing trends and points of resistance.
• Investor biases and herd mentality can impact decision-making, so it’s important to make rational choices based on research and analysis.
What Does It Mean to “Buy Low, Sell High”?
“Buy low, sell high” is an investment philosophy that advocates buying stocks or other securities at one price, and then selling them later when they’ve (hopefully) gained value. This is the opposite of buying high and selling low, which effectively results in investors selling stocks at a loss.
When investors buy low and sell high, they may do so to maximize profits. For example, a day trader may purchase shares of XYZ stock at $10 in the morning, then turn around and sell them for $30 per share in the afternoon if the stock’s price increases. The result is a $20 profit per share, less trading fees or commissions. Of course, a price increase of that magnitude within a single day is highly unlikely.
Likewise, a buy and hold investor may purchase stocks, exchange-traded funds (ETFs), or mutual funds and hold onto them for years or even decades. The payoff comes if they sell those securities later for more than what they paid for them.
Recommended: How to Know When to Sell a Stock
4 Tips on How to Buy Low and Sell High
The following tips may help investors develop a buy low, sell high strategy (or avoid the buy high, sell low trap).
1. Investing with the Business Cycle
Understanding stock market cycles and their correlation to the business cycle can help when determining how to buy low and sell high.
The business cycle is the rise and fall in economic activity that an economy experiences over time. If the business cycle is in an expansion phase and the economy is growing, for instance, then stock prices may be on the upswing as well. On the other hand, if it’s become apparent that economic growth has peaked, that could be a signal for stock price drops to come as an economy slows or enters into a recession.
But like most strategies that aim to buy low and sell high, investing with the business cycle can be challenging.
It’s also important to remember that security prices typically don’t move in a straight line up or down in lockstep with a specific phase of the business cycle. Instead, most securities experience a level of volatility, where prices move up or down (or both) in the short term before reverting to the mean.
2. Look at Stock Pricing Trends
Investors who want to buy low may find it helpful to pay attention to pricing trends or technical indicators. Tracking trends for individual securities, for a particular stock market sector, or the market as a whole can help investors get a sense of what kind of momentum is driving prices.
For instance, an investor wondering how low a stock price can go can look at technical indicator trends to identify significant pricing dips or rises in the stock’s history. This could, potentially, help determine when a stock or security has reached its bottom, opening the door for buying opportunities. Conversely, investors may also use trends to evaluate when a stock has likely reached its high point, indicating that it’s prime time to sell.
3. Use Moving Averages
Moving averages are a commonly used indicator for technical analysis. A moving average represents the average price of a security over a set time period. So to find a simple moving average, for example, an investor would choose a time period to measure. Then they’d add up the stock’s closing price each day for that time period and divide it by the number of days.
The moving average formula can help compare stock pricing and determine points of resistance. In other words, they can tell investors where stock prices have topped out or bottomed out over time. Moving averages can smooth out occasional pricing blips that temporarily push stock prices up or down.
Comparing one moving average to another, such as the 50-day moving average to the 200-day moving average, can also help investors to spot sustainable up or down pricing trends. All this can help when deciding when to buy low or sell high.
4. Beware of Investor Bias
An investor bias is a pattern of behavior that influences reactions to a changing market. For example, noise trading happens when an investor makes a trade without considering the state of the market or timing. The investor may follow pricing trends but make trades without considering whether the time is right to buy or sell.
Investors who give in to biases may find themselves following a herd mentality when it comes to making trades. If news of a pending interest rate hike sparks fear in the markets, investors may start panic selling in droves. This can, in turn, cause stock prices to drop. On the other hand, irrational exuberance for a specific stock or type of security can push prices up, causing an unsustainable market bubble.
Investors who can refrain from being influenced by the crowd stand a better chance of making rational decisions about when to buy or when to sell to either maximize profits or minimize losses.
Pros and Cons of Buy Low, Sell High
A buy low, sell high strategy can work for investors, but while it’s a worthy goal, the implementation can be difficult. Investors who are too focused on timing the stock market can run into difficulties.
Benefits of Buy Low, Sell High
Buying low and selling high can yield these advantages to investors.
• Potential bargain-buying opportunities. If investor sentiment is causing fear and panic to take over the market and push stock prices down, that could open a door for buy low, sell high investors as they buy the dip. Individuals who ignore market panic could purchase stocks and other securities at a discount, only to benefit later once the market rebounds and prices begin to rise again.
• Potential for high returns. An investor skilled at spotting trendings and reading the market cycle could reap sizable profits using a buy low, sell high strategy. The wider the gap between a stock’s purchase and sale price, the higher the profit margin.
• Beat the market. A buy low, sell high approach could also help investors to beat the market if their portfolio performs better than expected. This might be preferable for active traders who forgo a passive or indexing approach to investing.
Disadvantages of Buy Low, Sell High
Attempting to buy low and sell high also holds some risks for investors.
• Timing the market is imperfect. There’s no way to time the market and which way stock prices will go at any given moment with 100% accuracy. So there’s still some risk for investors who jump the gun on when to buy or sell if stocks have yet to reach their respective lowest or highest points.
• Being left out of the market. Investors who want to buy low and sell high would not want to buy securities when the market is up. That practice, however, could lead to substantial time out of the market entirely, especially during bull markets.
• Biases can influence decision-making. Investment biases and herd mentality can wreak havoc in a portfolio if an investor allows it. Instead of buying low and selling at a profit later, investors may find themselves in a buy high, sell low cycle where they lose money on investments.
• Pricing doesn’t tell the whole story. While tracking stock pricing trends and moving averages can be useful, they don’t offer a complete picture of what drives pricing changes. For that reason, it’s important for investors also to consider other factors, such as consumer sentiment, the possibility of a merger, or geopolitical events, influencing stock prices.
Alternatives to Buy Low, Sell High
Buying low and selling high is not a foolproof way to match or beat the market’s performance. It’s easy to make mistakes and lose money when attempting to time the market unless, of course, you possess a crystal ball or psychic abilities.
There are, however, other ways to invest without trying to time the market. Take dollar-cost averaging, for example. This strategy involves staying invested in the market continuously through its changing cycles. Instead of trying to time when to buy or sell, investors continue making new investments. Over time, the highs and lows in stock pricing tend to average out.
A dividend reinvestment plan (DRIP) is another option. Investors who own dividend-paying stocks may have the opportunity to enroll in a DRIP. Instead of receiving dividend payouts as cash, they’re reinvesting into additional shares of the same stock. Similar to dollar-cost averaging, this approach could make it easier to ride out the ups and downs of the market over time and eliminate the stress of deciding when to buy or sell.
Investing with SoFi
A buy low, sell high investment strategy is fairly simple, in that it involves buying a security at one price, and selling it after, or if, it appreciates. Obviously, there’s no guarantee that any asset will appreciate, so it’s possible investors could lose money – but they could also see positive returns, too.
Further, the strategy can be challenging to implement. Executing a buy low, sell high plan successfully means researching and doing due diligence to understand how the market works.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
FAQ
Is buying low and selling high a good strategy?
Buying low and selling high can generally be a good strategy as it allows you to take advantage of price movements in the market. However, there is no guarantee that this strategy will always be successful, and you may end up losing money if the market conditions are not favorable.
Is it illegal to buy low and sell high?
There is no law against buying low and selling high. Most investors make money by buying a security at a low price and then selling it later at a higher price.
Why do you sell high and buy low?
Many investors sell high and buy low because they want to take advantage of market conditions to realize a positive return. When the market is high, investors may sell an investment they purchased at a lower price to make a profit.
Photo credit: iStock/katleho Seisa
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I know, I know, mortgage shopping is the worst. It’s not a fun thing to do.
It’s not like shopping for a new car or a new TV, or even a new house. But it’s a necessary evil unless you’ve got a boatload of cash.
The reason it’s not fun is because there’s lot of math, paperwork, and high-pressure salespeople involved.
Not to mention lots of mortgage lingo that will likely go over your head.
But there’s a silver lining to putting in all that time to shop; you’ll learn a lot about mortgages.
I Get It, Mortgages Aren’t Fun
Look, I’ll be the first person to tell you that mortgages are boring af. I’ve been writing about them for nearly 20 years now.
And before that, I was working on the frontlines with mortgage brokers and loan processors and underwriters.
None of it was fun, and it’s probably even less fun when you’re new to it and simply trying to get through it.
Conversely, you might have a blast shopping for a new car and doing test drives while checking out all the cool features.
The same goes for new clothes, a new TV, computer, etc. They call it retail therapy for a reason.
I’ve never heard anyone say mortgage shopping is therapeutic. In fact, it’s usually the exact opposite.
Typically, people say they’d rather go to the dentist than go through the mortgage process.
Okay, so what’s the point here? Well, as mentioned, you can learn a lot if you do shop around.
Learn About Mortgages as You Shop Your Rate
Most people don’t shop around for their home loan. They either just go with the lender their real estate recommended, or the first quote they come across.
Again, this is because mortgages are not at all fun. And not getting any funner.
Not only does this cost people (since studies prove multiple quotes leads to lower rates), it also means you won’t learn a whole lot.
Again, I understand. Most people are literally just trying to get through it so they can move into their new home. Or enjoy a new low rate on their existing mortgage in the case of a refinance.
But aside from potentially paying more, you’ll also learn less. And when you know less about something, the probability of a bad decision increases.
For example, you might pick the wrong mortgage product for your individual situation.
Or you might be told to pay discount points at closing, only to sell your home or refinance before the breakeven period.
You might even refinance even when it doesn’t make sense to do so. Or buy too much house and become house poor because the numbers were only presented to you one way.
Bringing it full circle, you might also get ripped off because you’ll be a novice and more easily taken advantage of.
If you actually make a few phone calls and speak to multiple loan officers, mortgage brokers, etc., you’ll learn more about the ins and outs of it all.
Each time you talk to someone new you’ll have a little bit more knowledge than the prior call.
And this will help you avoid the typical gotchas and perhaps allow you to come off more confident. That can lead to better mortgage rate negotiating and ultimately better odds of a lower rate.
Here Are Some Mortgage Shopping Tips to Make It Less Awful
If you’re stressed about it your credit scores, keep in mind that while mortgage inquiries can lower your credit score, it’s often not by much.
You also don’t need to let everyone run your credit. And FICO now combines multiple mortgage inquiries into one when made within a 14- to 45-day window.
Those who have heard of those annoying trigger leads can employ a strategy I laid out years ago.
Use a temporary phone number like Google Voice for free. Share that number with all the lenders, brokers, etc.
Then ditch it once you’ve found your match and carry on with your real number. Or just keep using the temporary one!
Even if you use a mortgage broker, take the time to compare mortgage brokers too. Because many of them just send all their business to one lender. So it’s not really shopping around.
In addition, they have varying compensation structures, meaning if you compare more than one you might land on the broker who earns less per loan and saves you money.
For example, one broker might earn 2% on each loan, while another is satisfied with just 1% loan origination fee in exchange for more volume. The broker earning less will likely have the lower rate and closing costs.
Lastly, if you already have average or poor credit, know that mortgage rates can vary even more, so shopping around is even more important!
Simply put, rates are priced in a tighter range for those with really high FICO scores. But even those folks should also gather more than one quote!
Read on: How to shop for a mortgage.
(photo: Alan Levine)
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.