down payment. Find out how much you should budget using a home loan affordability calculator and figure out how to save the amount you need. After all, the best way to save for a house is to formulate a budget that helps you work towards your house saving goals step by step. Soon enough, you’ll be turning the key and stepping into a home you love.
Step 1: Calculate Your Down Payment and Timeline
When figuring out how to save for a house, you may already have a savings goal and deadline in mind. For instance, you may want to save 20 percent of your home loan cost by the end of the year. If you haven’t given this much thought, sit down and crunch the numbers. Ask yourself the following questions:
What is your ideal home cost?
What percentage would you like to contribute as a down payment?
What are your ideal monthly payments?
When would you like to purchase your home?
How long would you like your term mortgage to be?
Asking yourself these questions will reveal a realistic budget, timeline, and savings goal to work towards. For instance, say you want to buy a $250,000 house with a 20 percent down payment at a 30-year loan term length. You would need to save $50,000 as a down payment; at a 3.5 percent interest rate, your monthly payments would come out to be $898.
Step 2: Budget for the Extra Expenses
Just like a new rental, your home will have fees, taxes, and utilities that need to be budgeted for. Homeowners insurance, closing costs, and property taxes are a few examples of cash expenses. Not to mention, the cost of utilities, repairs, renovation work, and furniture. Here are a few more expenses you may have to save for:
Appraisal costs: Appraisals assess the home’s value and are usually ordered by your mortgage lender. They can cost anywhere from $312 to $405 for a single-family home.
Home inspection: A home inspection typically costs $279 to $399 for a single-family home. Prices vary depending on what you need inspected and how thorough you want the report to be. For instance, if you want an expert to look at your foundation, there will likely be an additional cost.
Realtor fees: In some states, the realtor fee is 5.45 percent of the home’s purchase price. Depending on the market, the seller might pay for your realtor fee. In other places, it might be more common to contract a lawyer to look over your purchase agreement, which is usually cheaper than a realtor.
Appraisal and closing costs: Appraisals assess the home’s value and are usually ordered by your mortgage lender. They can cost anywhere between $300 and $400 for a single-family home.
Step 3: Maximize Your Savings Contributions
Saving for a new home is easier said than done. To stay on track, first create a savings account that has a high yield if possible. Then, check in on your monthly savings goal to set up automatic contributions. By setting up automatic savings payments, you may treat this payment as a regular monthly expense.
In addition to saving more, spend less. Evaluate your budget to see what areas you could cut down or live without. For instance, creating your own workout studio at home could save you $200 a month on a gym class membership.
Step 4: Work Hard for a Raise
One of the best ways to boost your savings is to increase your earnings. If you already have a job you love, put in the extra time and effort to earn a raise. Learning new skills by attending in-person or virtual training seminars or learning a new language could increase your earning potential. Not only could you land a raise, but you could add these skills to your resume.
Sometimes, putting in the extra effort doesn’t always land you a raise, and that’s okay! When getting a raise is out of the question, consider looking at other opportunities. Figure out which industry suits you and your skillset and start applying. You may end up finding your dream job, along with your desired pay.
Step 5: Create More Streams of Income
Establishing different income streams could help your house savings budget. If one source of income unexpectedly goes dry, having other sources to cut the slack is helpful. You won’t have to worry about the sudden income change when paying your monthly mortgage.
For example, creating an online course as a passive income project may earn you only $5 this month. As traffic picks up, your monthly earnings could surpass your monthly income. To create an abundant financial portfolio, there are a few different ways to do so:
Create an online course: Write about something you’re passionate about and share your skills online. Sell your digital products on Etsy or Shopify to earn supplemental income.
Grow a YouTube channel: Start a YouTube channel and share your skills to help others within your industry of expertise. For instance, “How to start a YouTube channel” could be its own hit.
Invest in low-risk investments: From CD’s to money market funds, there are a few types of investments that could grow your cash with low risk.
Step 6: Pay Off Your Biggest Debts
Before taking on more debt like a mortgage, it’s important to free up your credit usage. Credit utilization is the percentage of available credit you have open compared to what you have used. If you have $200 in debt, but $1,000 available on your credit card, you’re only using 20 percent of your credit utilization. A higher credit utilization could potentially hinder your credit score over time. Not only can paying off debts feel satisfying, but it could also increase your credit score and prepare you for this next big purchase.
To pay off your debts, create an action plan. Write out all your debt accounts, how much you still owe, and their payment due dates. From there, start increasing your payments on your smallest debt. Once you pay off your smallest debt in full, you may feel more motivated to pay off your next debt account. Keep up with these good habits as you take on your mortgage account.
Step 7: Don’t Be Afraid to Ask For Help
Whether your touring homes or want help adjusting your budget, don’t hesitate to ask for help. If you’re trying to figure out what your budget should look like, research budgeting apps like Mint to build a successful financial plan.
If you’re curious about additional mortgage expenses, your budget, or investment opportunities, reach out to a trusted professional or utilize government resources. Not only are they able to help you prepare for your next big step, but they could also help you and your finances in the long term.
Step 8: Store Your Savings in a High Yield Saving Account
While you may have a perfect budget and a home savings goal, it’s time to make every dollar count. Before you add to your account, research different savings accounts and their monthly yields. The higher the yield, the more your savings could grow as long as your account is open.
In September of 2020, the national average interest rate on savings accounts was capped at 0.8 percent. If you were to deposit only $100 into a high yield savings account with an APY of 0.8 percent, you could earn $80 off your investment over the year. This helps you save extra money by just putting your money into a savings account.
In Summary
First, set a savings goal to match your estimated down payment and mortgage monthly payments. Then add your contributions to a high yield savings account to grow your money overtime.
Don’t forget to budget for extra mortgage expenses like appraisal costs, home inspections, realtor fees, or closing costs. Keep in mind, your monthly utilities and fees may also be more expensive than your current living situation.
Prepare for the additional costs by increasing your earning potential and optimizing additional income stream opportunities.
Free up your credit utilization by paying off as much debt as possible before buying a house. Keep up these good habits throughout the length of your mortgage term.
When you purchase a home, you’re building a piggy bank for your future. Every month you pay your mortgage, you pay part of it to yourself because you own the home. Instead of paying rent to someone else, you reap your own investment when you sell. Most importantly, though, you’ll have a place that’s truly your own.
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A cash-out refinance is one of the best tools an investor can use to take money out of their rental properties. A refinance is when you replace the current loan on your home with a new loan, and when you complete a cash-out refinance, you get cash back after getting the loan. One of the biggest roadblocks an investor runs into is finding the cash for down payments on new rental properties. A cash-out refinance is a great way to get cash to buy more properties. When I purchased my first long-term rental, I was able to buy the property from proceeds that came from a cash-out refinance on my personal residence. I was able to take out $40,000 in equity from my personal house, only one year after I bought the home. I have also refinanced multiple rental properties, which has allowed to buy more rentals and I now have 16 rental properties total.
How can you take a cash-out refinance?
Most people get loans on their homes when they buy them. At some point, you may want to consider refinancing that loan for a number of reasons:
Interest rates
If interest rates are much lower now than when you got the loan it may make sense to refinance your current loan into a mortgage with a lower interest rate.
Cash-out
There are many cases where you can get cashback after refinancing. A house could go up in value, you could get a different type of loan, you could make repairs, or make an improvement to a house to increase its value.
The video below goes over a refinance I did on one of my rentals.
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How much does a refinance cost?
The downside to refinancing your home is it costs money. You are getting a brand new loan that will cost about as much as the first loan you got on the home. That can be from 2% to 3% of the loan amount. You have to pay for an appraisal, origination fee, processing fees, flood certificate, and some other fees as well. The good news is that you will most likely skip a mortgage payment after the refinance, but don’t think you are getting an amazing deal because of that as the interest is still charged to you, just upfront in those loan costs.
How can houses increase in value?
Values are going up across the country, and that has created an opportunity for homeowners to do a cash-out refinance. Most banks are using stricter guidelines for qualifications and lower loan to value ratios than before the crash. However, if you bought your home at a great price or have owned it for a while, you still may be able to get cash out.
I do not like to depend on prices to go up. I buy all my properties below market value. I try to buy all my properties at least 20% below what they are currently worth. If they need work, I buy them for much less than 20% below market value. The BRRRR method is a great way to refinance properties and get cash back out by getting great deals and repairing them.
How much money can you take out?
Many banks will require an 80% or lower loan to value ratio when refinancing a rental property and they will use an appraisal to determine that value. It is imperative that you have a lot of equity in your property if you want to complete a cash-out refinance with an investment property. If you are refinancing an owner-occupied home, you may be able to refinance up to 95 percent or more of the value of the home. You must live in the house for a year after refinancing in most cases to get an owner-occupied loan.
What are the risks?
A cash-out refinance will increase the amount of the loan you have on your rental property. For some people who are averse to risk, paying off their home is a great option and they may not want more debt. However, I am not averse to risk and I want to maximize my returns. Debt can be a very bad thing if it is used for the wrong things, but if you use debt to buy cash producing investments it can be a great thing!
In my market, I can get a cash on cash return of 15 percent or higher on rental properties, while interest rates are below 5 percent. It makes more sense to me to refinance for 5 percent and use that money to buy properties that will give me over a 15 percent cash on cash return! That 15 percent return does not even include possible appreciation, tax benefits or mortgage pay down.
Yes, it is possible that values could go down and a cash-out refinance would reduce the equity in your home. If you don’t need to sell your home, then it will not matter how much equity you have in your home. However, if you are pushing how much you can afford with a monthly payment it may not be wise to refinance if it increases your payment. If you have a lot of cash flow and are comfortable with a higher payment, use that money to make more money.
If you increase your debt with a refinance, then you may be decreasing the amount you can qualify for on future homes. If you max out the amount of money a lender will loan to you with a refinance, then you won’t be able to get a loan on a new rental property. Before you refinance, make sure you know how much you will be able to qualify for.
How does a refi work on a rental property?
I recently did a cash-out refinance on one of my rental properties and I was able to pull out about $26,000 with my payment only increasing $136 a month. The terms are usually more restrictive and it can be difficult to refinance if you have more than four mortgaged properties. I was able to do a cash-out refinance with more than four mortgages because I used a portfolio lender. They are a local bank and are much more flexible than big banks.
When I did a cash out refinance on my investment property, the max they would lend was 75 percent of the value of the home. I also could only do a 5 or 7 year ARM or a 15 year fixed loan. I chose the 7 year ARM because I plan to pay off my homes quicker than the 7 year fixed term and the rates and payments are lower than the 15-year loan.
On the property, I paid $92,000 and put about $18,000 into it for repairs. I was able to turn it into a 5 bed, 2 bath and rented it for $1,100 (low because it is rented to my brother-in-law). I had to wait a year to do a cash-out refinance and the current value was determined by an appraisal. The appraisal came in at $140,000 which I thought was low, but I had to go with it. After all the lender fees, interest and miscellaneous costs of the cash out refinance, I was able to cash out over $26,000. My payment went up, but I am still able to cash flow every month and I took out more than enough money for a down payment on another rental property.
What about seasoning periods?
One restriction to completing a cash-out refinance is the seasoning period. Most banks, will not complete a cash-out refi right after you buy the home. They will complete a refinance but loan the lower of the appraised value or what you paid for the home in the last year or 6 months. If you bought the home for $100,000 three months ago, and it appraised for $150,000 last week, the bank will still only lend on the $100,000 purchase price if they have a seasoning period longer than three months.
If they will lend 75% of the value, that means they will only lend $75,00 on the home. Some banks have 6 month seasoning periods, some a year, and some will have none. Make sure you know what your bank will do before you make plans.
Is a HELOC better?
A HELOC (home equity line of credit) is much different from a refinance, because you may not have to pay off your current loan. If you have a $100,000 loan on your house, but your home is worth $200,000 you may be able to get an $80,000 line of credit and keep the $100,000 loan in place. When you take out a line of credit you do not have to use the money right away or ever. You can use as much of the money as you want and pay it back when you like. You can borrow the money again after you pay back the line. A refinance is a mortgage where once you pay off the loan or pay extra money into it, you cannot borrow it again.
A HELOC will have closing costs like a cash-out refinance, but many times they will be less. Depending on if you are getting a line on an investment property or a personal residence the terms and fees will differ. The term of the HELOC could be two years, five years or longer, but not 30 years like a refinance could be. The rates on a HELOC are also usually higher and can go up or down as interest rates go up or down.
It may be tough to get a line of credit on a rental as most banks only want to give lines of credit on primary residences.
Do you pay taxes?
One of the best things about a refinance is you do not pay taxes on it. You can buy a house for $100,000, and refinance it for $150,000 a few months later and the money you take out is almost always tax-free. You are not making any money, you are borrowing it so there is no income tax.
Conclusion
The more properties you can buy, the more cash flow builds up and the more wealth you can create. A cash-out refinance can help you purchase more properties and increase your wealth. Make sure the houses you purchase are bought below market value, and it will make a future cash-out refinance much easier. Make sure your payments are not so much that you are no longer seeing positive cash flow every month.
Last Updated on February 25, 2022 by Mark Ferguson
I have flipped over 210 homes in the last 17 years and although it is not easy to flip houses, it is a lot of fun. You can make a lot of money flipping once you have developed a system and learned the business. I average about $30,000 in profit on each flip I do and I flip 20-30 houses a year. I love flipping houses, but fix and flipping is only part of my real estate business. I also have 186k sqft of long-term rentals, I own my own brokerage, and I created this blog. While you can make a lot of money flipping homes, it takes hard work, and help. The television shows can make flipping look easy, but they leave out many of the most important parts of the business.
How much can you make on one flip?
How much money you make on a fix and flip varies with each deal and how much the house is worth. I have lost $10,000 on a flip and have made up to $180,000 on a flip. My goal on each fix and flip is to make at least $25,000 in profit. I have hit some home runs and had some huge mishaps when flipping. There are many risks involved when you fix and flip a home. If I do not have at least $25,000 in profit potential, I usually will not make the deal. The more expensive a house is, the more money I hope to make because of the increased risk and cost.
I also base how much profit I need in regards to the work that is needed. On houses that need massive remodels I want to make more than $30,000 in profit because there is so much that can go wrong. On houses that only need paint and carpet, I am willing to accept a smaller margin because the work is simple and fast.
I had 19 flips going as of the writing of this article.
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Do you need to make more on expensive houses?
The more the houses cost, the more you should make on each fix and flip because all of the costs increase. The more expensive a house, the more interest you must pay, the more repairs you must make, the more holding costs you have, and the more commissions you pay. Because of the increased risk of a more expensive house, you need to be rewarded with a larger profit. It can also take longer to sell a more expensive house because there are fewer buyers. If prices are to decrease in the future, the more expensive homes are also more volatile with their prices.
It also takes more capital to buy and repair a more expensive house. I want to make at least $25,000 if I am flipping a $100,000 house. If I am flipping a $200,000 house, I will want to make at least $35,000 because I have more money tied up. Since I am buying a more expensive house at $200,000 and I am using more cash for down payments and repairs and I will not be able to buy as many properties. Since I am buying fewer properties, I want to make sure that the houses I am buying will make more money.
Here is a review I did on the Rehab Valuator, a great tool for figuring the costs and profits on flips.
How much have I made flipping houses?
In 2017 I made over $600,000 flipping houses. I sold 26 flips in 2017, 18 in 2016, 8 flips in 2015, 12 in 2014, and 10 in 2013. I will have a few flips that will profit from $20,000 to $30,000, and I will have a few that will profit around $50,000. Twice in the ten years, I have made close to $100,000 on a single flip. For me, the big money in fix and flipping is volume, not in one extremely profitable property.
How do you calculate the profits?
When I am talking about profit, I mean the money I make after paying for repairs, carrying costs, financing, and selling costs. The shows on HGTV do not include many of these costs, which can make the business look much more glamorous than it really is. Here are what the costs could look like on a flip I hold for 6 months:
Purchase price $100,000 with a private money loan
$5,000 in financing costs
$2,000 in closing costs
$2,000 for utilities and maintenance while owning the property
$2,000 for taxes and insurance while owning the property
$7,000 for selling costs (agent commissions, etc)
The costs to own and sell this flip are over $18,000 and we did not even consider the repairs yet. I also have a project manager who helps with my flips and other team members that help with my business. I do not count the money I pay them against the profits because they are also real estate agents, and help the business in other ways. I also do not take income taxes out as some suggest I should since everyone pays taxes and that is part of life!
The 70 percent rule is one way to calculate how much you should buy a flip for.
Can you average $30,000 on each flip?
Like much of the country our market is hot, which makes it difficult to find deals. However, I am still finding deals and I have 20 flips being repaired or for sale right now (middle of 2018). You can flip in any market if you know the numbers, and if you know how to find a great deal. I am a real estate agent, which gives me a huge advantage when it comes to finding deals. I also buy primarily off MLS, which means I save commissions and I am able to write offers quickly. Making $30,000 on a flip all comes down to the numbers. While it is not easy to find deals that make that much money, it is possible. I also buy flips through auctions, wholesalers, and direct marketing.
Is there money in just doing one?
I would love to make $100,000 on each flip, but that is not possible for me. I do not always know which homes will work out great as flips and which will not. I have had unforeseen circumstances that caused me to hold a property for a year before I could sell it. That killed my profits and was one of the homes I lost money on. I have accepted that some flips will be great and others will not. If I continue to purchase great deals, the averages will be in my favor. My strategy is to buy as many flips as I can that meet my criteria and continue to average about $30,000 in profit on each property. If you are looking for that one house that will make $100,000, you may be looking for a long time.
How to get financing
One of the most difficult aspects of flipping homes is being able to find the money to buy the properties. Most lenders do not like to lend on flips because the loan is short-term and the lender will not make much money on it. In most cases, in order to get a short-term loan, you must use hard money, a portfolio lender, or private money. Hard money is very expensive with rates from eight to sixteen percent and origination fees from two to five percent. Portfolio lenders will have much less expensive money, but you will have to have an established relationship with them (I use portfolio lenders for most of my flips). Private money is a great option if you have family, friends, or other people with extra money to invest.
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How to avoid losing money
Here are a few tips on how to avoid losing money on flips:
Be very careful at foreclosure auctions. I used to buy 90 percent of my properties at the foreclosure auction. You have to pay cash without a title policy and sometimes you cannot see the interior of the home. If you buy at the foreclosure sale, make sure you have a lot of money for repairs, title issues, and possible evictions.
Always estimate more for repairs then you think. Repairs always cost more and more repairs always show up when fixing a house. I always assume there will be 20 percent more in costs than I calculate on each deal.
Account for financing and selling costs. When you sell a fix and flip, you have to pay a real estate commission, title insurance, financing interest, insurance, taxes, utilities, and more.
Be conservative when you estimate value; price the home right! Some of the biggest losses for fix and flippers are due to overpricing homes and then not lowering the price quickly to get them sold.
Conclusion
Fix and flipping is not easy. It takes patience to find properties, money to fix them up, and market knowledge to sell them. If you can master fix and flipping, it can create an awesome income and be a lot of fun as well. Becoming a successful fix and flipper does not happen overnight.
Pay Private Mortgage Insurance (PMI) or play the wait-and-save game? That’s the dilemma for a majority of would-be homebuyers. It’s rarely an easy (or fun) choice.
The Dilemma
Coming up with a 20% down payment can take years. With home prices increasing 5-10% annually, the home of your dreams is sure to cost quite a bit more in 2026. Rather than save, some homebuyers opt to pay PMI instead. Most future homeowners don’t know what PMI is and how much it may cost them.
What’s the Purpose of PMI?
Usually you purchase insurance to protect yourself. PMI works differently: basically you pay to protect the mortgage lender in the event you can’t pay the mortgage. It’s basically a mortgage lender’s insurance to protect themselves if a borrower stops making payments.
In general, mortgage lenders consider buyers who put at least 20% down to have enough skin in the game that they’re low risk. That makes everyone that puts down less than 20% a riskier investment, so they require them to pay PMI.
The Upside of PMI
The good news about PMI is that it’s not too expensive and you don’t pay it forever. Your lender typically requires you to pay PMI until you get to a Loan-to-Value (LTV) ratio of 80% loan to 20% equity. Once you do, you can request your PMI be cancelled, unless you’ve taken out a FHA loan (PMI never falls off when you choose this loan type). PMI also doesn’t cost too much, although the amount you pay can vary. Below are a few ways to lower your payment.
Commonly Asked PMI Questions
How much will I pay in PMI?
Homebuyers required to pay PMI typically pay around 0.5% annually of the total amount borrowed, with the cost split across all 12 months. Here’s some examples:
$180,000 loan ($200,000 with 10% down), PMI $75/mo
$285,000 loan ($300,000 loan with 5% down), PMI $125/mo
When will I be done paying PMI?
This depends on what type of loan you take out. Here’s a quick guide:
FHA: If you take out an FHA loan, mortgage insurance continues for the life of the loan. Ouch. You’d have to refinance your loan to get rid of it.
Conventional: On a conventional loan you only pay PMI until your equity reaches 20%.
How can I avoid paying PMI entirely?
Your house is probably your biggest expense, and the thought of spending extra money each month is as appealing as week-old sushi. Do you have to pay PMI? No, not if you do any of the following:
Put 20% down. Call the parents, check in with Grandma, collect every debt from your former roommates. When you put 20% down, you don’t pay PMI at all.
Opt for an 80-20 piggyback loan. 80-20 mortgage is paid through two loans, a first and a second mortgage. The 80 first mortgage covers the home loan; the 20 second mortgage is the down payment. The second loan in a piggyback loan usually has a higher interest rate.
Look for owner financing. In some situations, owner financing works like rent-to-own, in which case you probably won’t be required to pay 20% down or PMI.
Shop for homes at a lower price point. Consider the difference in down payment for a $250,000 home versus a $300,000 home: (we’ll save you the math: it’s $10,000). Lower price homes may fit your savings account better—and you can trade up or add on later.
Check out Homie Loans™. Homie Loans™ can look at your personal financial situation and tell how you can lower your PMI. Homie Loans™ may be able to help you with a new loan.
To Pay or Not to Pay? The Decision is Yours
No one wants to pay extra each month for their home, but if paying PMI means you can buy a $300,000 home now vs. waiting five years while you save, paying a few thousand in PMI over that same period can make a lot of financial sense. Plus, the $300,000 home you purchase now starts building equity ASAP and will likely increase in value each year you live there.
We’re Here to Help
There’s a lot to consider when choosing to pay PMI vs. wait and save for a 20% down payment, but we hope we’ve given some helpful tips to guide you in the right direction. If you have any additional questions, or would like to begin the home buying process, click here to learn more about how to get started. We’d be happy to help you start your search for your dream home!
Have you heard about Fetch Rewards? My Fetch Rewards Review will show you how to earn free gift cards by simply snapping a picture of your receipts with your phone. That’s it – Fetch is really that easy!
Fetch Rewards is a cash back and gift card cell phone app that rewards you for purchases that you’ve already made.
With this app, you can scan your grocery receipts (from any grocery store or wholesale club, any time) and earn free gift cards.
Plus, Fetch Rewards is free. You don’t have to pay money to sign up or to use the app.
I will explain more in my Fetch rewards app review, but with Fetch, you earn points when you submit your receipts to the Fetch Rewards app from any grocery store, clothing store, restaurant, gas station, and more. Yes, ANY!
Then, you redeem your points for gift cards (to places such as Target, Amazon, or Apple) and other rewards.
All you have to do is take a picture of your receipt with your cell phone and easily earn points.
Here’s how Fetch Rewards works:
Shop like you normally would
Scan your receipt after you’re done
Earn points on Fetch Rewards
You can sign up for Fetch Rewards here.
Content related to my Fetch Rewards review:
Fetch Rewards Review
What is Fetch Rewards?
I want to start my Fetch Rewards review with some basic information about the company and app. Fetch Rewards is based out of Madison, Wisconsin, and this shopping app has helped millions of people save money with the tap of a button as you simply scan physical and digital receipts.
Every month, over 11,000,000 people use Fetch Rewards. It is super easy to use Fetch and receive free gift cards.
I keep saying it’s simple because it really is! Every time you shop or dine out, you can scan your receipt into the Fetch Rewards app.
You can scan receipts from any grocery store, clothing store, pet store, home improvement store, club store, restaurant, gas station, and more. Basically, anywhere you shop, you can snap a picture of the receipt and scan it into Fetch.
You can even use your digital receipts from online purchases such as Amazon, Target, Instacart, and more by connecting your online accounts.
If you have a receipt, then you can scan it!
You earn points when you submit your receipts, and Fetch pays you in points that you can redeem for gift cards.
There are many redemption options. Here are some of the places you can receive gift cards from:
Starbucks
Dunkin Donuts
Amazon
Target
Visa gift cards
Airbnb
Old Navy
Ulta
Barnes & Noble
Bass Pro Shops
Instacart
Sam’s
BJ’s
Best Buy
Lowe’s
And so many more!
You can also decide to put your points towards charitable organizations, such as The Red Cross or the Clean Water Fund. You can even use your points to enter sweepstakes in the Fetch app.
Don’t worry, I’ll explain more about how to redeem your points further down in my Fetch Rewards review.
How does Fetch Rewards work?
Here’s how Fetch Rewards works:
Sign up and download Fetch Rewards by creating an account or connecting a Google or Facebook account account, and then make a password for your account.
Go shopping like you normally do.
Scan your first receipt and earn points. To do this, you simply go to your Fetch Rewards app and click on the orange circle at the bottom of your screen that says “Snap.” You then take a picture of your receipt. If you have a digital receipt, you can just tap on the blue circle instead.
Redeem your points for gift cards, make charitable donations, enter sweepstakes, and more.
I have personally used Fetch to prepare for my Fetch Rewards review, and I can promise you it’s just that simple!
How much can you earn with Fetch Rewards?
The amount you can earn on Fetch Rewards really depends on your spending, whether you are completing the Fetch Special Offers, and so on.
Because I am writing this Fetch Rewards review, I wanted to use the app for a while to give you the best review possible, and I was able to earn around $56 in free gift cards in 2-3 months by simply spending how I normally do. I didn’t put any additional effort in the app other than just scanning my shopping receipts.
As you can see, Fetch Rewards clearly won’t make you rich, but you can easily make a little extra money shopping like you normally do.
I also don’t think that I spent more than 20 minutes total in the Fetch app. It’s easy to use and only takes like 10 seconds to scan a receipt. You don’t have to do anything else.
What stores can I use for Fetch Rewards?
The great thing about Fetch Rewards is that you can use any retailer or store where you buy groceries, from big box stores, to mom and pop stores, to drug stores, convenience stores, hardware stores, liquor stores, gas stations, club stores (such as Costco), and more.
With any receipt I get, I scan it into the Fetch Rewards app. It takes less than a minute, and you earn points with every scan – so easy!
Plus, you don’t have to jump through any hoops to get points. You don’t need to pre-select the offers in the Fetch Rewards app or scan barcodes, plus there are no surveys or ads. Simply go shopping at your favorite retailers just like usual.
You simply scan your receipt after you are done shopping and earn points.
How many receipts can I scan on Fetch a day?
Fetch Rewards allows you to submit 35 receipts within a 7-day period. Electronic receipts that are processed on your account do not count toward the 35 receipt limit.
Other things to know about using Fetch Rewards:
Fetch Rewards works for stores located in the United States and Puerto Rico.
You have 14 days to scan your receipts to earn points.
When you scan your receipts, your receipt must include the store name, the items that you bought, the date of your purchase, the store’s address, and the total amount that you spent. All of that information is included on your receipt.
If you scan a receipt with a participating item from the Special Offers tab, then you will get bonus points.
If you have a long receipt, you simply just snap more pictures to make sure that your whole receipt is included.
You should never make fake receipts or scan the same receipt twice in order to try and get more points. This violates Fetch’s terms of service. Always be honest!
Does Fetch Rewards take gas receipts?
Yes, you can scan your gas receipts with Fetch Rewards.
If you’re looking to earn even more from your gas station purchases, then I recommend Upside.
Upside is an app that helps you find gas stations, groceries, and restaurants where you can earn cash back. You simply sign up for a free account, and then look at the Upside app to find places near you.
You can earn up to $0.25/gallon cash back at gas stations, up to 30% back on grocery purchases, and up to 45% back at restaurants.
You can check out Upside here to learn more.
Fetch Rewards Special Offers
What receipts give you the most points on Fetch?
There are several main ways that you can earn points on Fetch Rewards, such as:
Scanning receipts. When you purchase something, whether it be online or in-person, you can take a picture of your receipt with your cell phone and earn points. Every time you scan a receipt in the app, you will receive a minimum of 25 points.
Complete special offers. When you are logged into your Fetch Rewards account, you can see what products will give you the most points. As you can see in the image above, you simply just go to the Fetch Rewards App and go to the Discover tab. There, you will see what items will earn you the most points and extra points. Special offers can give you anywhere from 250 points to even over 5,000 points. New special offers are added almost every day too, so even if you don’t see something today, there may be something that interests you tomorrow. Now, you don’t have to look at the Discover page if you don’t want to – it’s simply just another way to earn more points. You can just use Fetch Rewards and scan your receipts without ever doing anything else in the Fetch Rewards app.
Refer friends and family. Sometimes, you can receive around 2,000 to 4,000 points by referring a new user. You can simply head to the Refer A Friend tab in the Fetch Rewards app to find your referral code.
Joining the Huggies Rewards+ Club.If you use Huggies diapers, you can earn up to 50,000 points by simply purchasing certain Huggies items, such as Huggies Diapers or Huggies Little Movers. Plus, you can get Huggies special offers points as well which are quite high as well.
Save on prescriptions. With Fetch, you can also save on your prescriptions. GoodRx is a free prescription price comparison tool that anyone can use. Simply head to your “Me” tab and click on GoodRx. You can then show this card when paying for prescriptions. You’ll get 10,000 points on your first prescription purchase, and then 1,500 points for future purchases and refills.
For me, I mainly just scan my receipts and refer others to Fetch Rewards. But if I wanted to earn more, there are several other great ways to increase the amount of rewards points that I can earn.
How many points equal a dollar on Fetch?
On average, 1,000 points equals $1 in rewards.
10,000 points is equivalent to around $10.
How do I redeem a free gift card from Fetch Rewards?
To redeem a Fetch reward, you will simply go to your Fetch account, and look at the bottom of the app. Look for the Rewards tab and tap on that.
Here, you will see what you can use your points on, such as:
Gift cards up to $50
Sweepstakes entries
Charitable organizations
Fetch merchandise, such as t-shirts
Then, you click on the button that shows how many points you want to use.
Next, you click on the orange button that says “Get My Reward” at the bottom.
You will then be asked to confirm that this is what you would like to do. It typically takes around three days to process your redemption request.
Once your reward is ready, you will get a notification. You can then go to your Rewards tab, then click on “My Rewards” to find your reward. Here, you will see your gift card code so that you can redeem your gift card at the company that you have chosen.
What’s the Fetch bonus code?
Fetch Rewards does not currently have an active bonus code. But, once they do, I will update this and let you know.
What is the catch with Fetch Rewards? How does Fetch Rewards make money? What does Fetch Rewards do with your receipts?
These are all great questions, and they are definitely things I want to cover in this Fetch Rewards review.
Fetch Rewards is so easy to use, but what’s in it for them? Why do they give out rewards and free gift cards just for scanning your receipts?
Fetch Rewards is paying you for the data they get from your receipt. They don’t see your name or other private or personal information. Instead, they are observing trends in shopper behavior. They then use this information to help their partners better understand their customer’s shopping habits.
Fetch Rewards also makes money by finding good deals for those who are signed up for Fetch Rewards. The Special Offers section in the Fetch Rewards app is an area where companies pay to be featured in this list, sort of like an advertisement. Companies know that they can get a lot of people looking at their company in the Fetch Rewards app, so they pay Fetch Rewards for this advertisement.
Is Fetch Rewards safe?
Yes, Fetch Rewards is safe to use.
They go through many steps to protect your personal information, and all of the data that they collect is anonymized and aggregated with everyone else’s, so your personal information is never shown.
Also, your receipts only show the last five digits of your credit card number, so you don’t have to worry about that being shared either because Fetch can’t see it.
Do my Fetch Rewards points expire?
If your Fetch Rewards account is not used for 90 days, then your points will expire. Your account will receive inactive status if you haven’t submitted any receipts or redeemed any rewards in a 90-day period.
This means that you just simply need to scan a receipt or redeem your Fetch points so your points never expire. If you get in the habit of scanning your receipts every time you shop, you shouldn’t have a problem with expiring points.
It’s very easy to stay active as pretty much everyone spends money in a 90-day period.
Is Ibotta or Fetch better?
Fetch Rewards and Ibotta are very similar.
Fetch Rewards is a little easier to use than Ibotta because all you need to do is scan your receipt into the Fetch Rewards app, and then you are done. With Ibotta, it’s more like clipping coupons and takes a little more time, but you may be able to earn a little more with Ibotta.
The great thing is that you can use the same exact grocery receipt for both Fetch and Ibotta. So if you have the time, you can try using both to earn even more rewards and free gift cards. This will allow you to increase your earnings by doing very little extra work.
Here’s how Ibotta works:
With Ibotta, you simply create an Ibotta account, unlock rebates and rewards, go shopping, verify your purchases, and then get cash.
You can redeem rebates from over hundreds of stores, such as Walmart, Target, Kroger, Publix, Walgreens, Home Depot, Old Navy, Chewy, and more.
You can also earn cash back online and in-store with Ibotta.
Ibotta is one of the easiest money making apps because you’re making money shopping like you normally do. They pay in cash or gift cards to Amazon, Starbucks, and other stores.
Is Fetch legit? – Fetch Rewards Reviews
Yes, Fetch Rewards is legitimate.
I looked through other online Fetch app reviews and found it’s rated 4.8/5 in the App Store with over 2,600,000 ratings.
In the Google Play store, the average Fetch app review is 4.6/5 stars with over 475,000 reviews on Fetch rewards and over 10,000,000 downloads.
You can see even more Fetch Rewards reviews on Trustpilot.
How do I contact Fetch Rewards?
If you have any questions or concerns with Fetch Rewards, you can contact them at [email protected].
You can also go to your app, click on the “Me” tab on the bottom, then click on “Help Center,” then “Contact Us.”
Here’s a screenshot of my Fetch Rewards Account. In 2 months, I have earned 55,566 points, which is equal to a little over $50 in free gift cards.
My Fetch Rewards Review
I hope you enjoyed my Fetch Rewards review. I have been using it for several months now and it is very easy to use.
Fetch Rewards rewards shoppers for shopping at their local supermarket and other popular retailers.
With Fetch Rewards, you can start earnings points by submitting both physical receipts and e-receipts so that you can turn your points into Amazon gift cards, Visa gift cards, and more. There’s no coupon clipping and it is very easy to use.
Simply just upload receipts that you have and earn Fetch Rewards points.
You can upload receipts from retailers such as Target, Walmart, Costco, Publix, Kroger, Walgreens, Home Depot, and more. Small stores, big stores, and everything in between.
This is a must-have shopping app that will help you to save more money, without spending a lot of extra time or effort on your end.
You can sign up for Fetch Rewards here.
Do you use Fetch Rewards? What other questions do you have for this Fetch Rewards review?
Budgets are a vital part of balancing your spending and making progress towards your goals. We all know they are important — but that doesn’t mean making them is a breeze. Now that we’re nearing the close of 2020, it’s time to start your budget for next year.
If we’re being honest, your 2020 goals were likely derailed by the pandemic. You likely made some adjustments and might have taken on some extra debt in the process. But the fact is, you can’t create an effective budget without first identifying your roadblocks. Use these steps to create your 2021 budget.
1. Calculate your income
To start things off, you need to know your total income (gross income from all your sources). If you freelance or have a variable income, admittedly, this might not be easy. In this case, you can use an average. But, you might want to create a tighter budget to account for this gray area. If you have additional forms of income from a side hustle or source like child support, make sure you include it here. It’s worth emphasizing that your gross income will typically be a larger number, compared to your net income — which accounts for funds left after deductions or withholdings.
2. Look at your bills and balances
After calculating exactly how much money you make, you’ll need to lay out all of your bills and balances. We know this is probably the last thing you want to do, especially after 2020. Unfortunately, it’s probably the most important part of creating your budget. Collect your bank statements and bills to evaluate your balances and due dates. It doesn’t matter if you use the latest budgeting software, an excel sheet or a pad and paper, whatever it takes.
[ Read: The Best Savings Accounts in 2021 ]
When making a list of your monthly expenses, it might help to break them down by fixed or variable expenses.
Fixed: These expenses are the same amount each time, like your mortgage, rent or student loan payments.
Variable: This is where it gets tricky — variable expenses can change from month to month — entertainment, food and travel expenses.
3. Find opportunities to cut spending
Now that you’ve laid it all out and you know what percentage of your income is promised to bills, you’ll be able to find the spots you can pull back. You’ll need to be both realistic and a little harsh at this stage. Planning an inflated budget won’t help you manage your spending or achieve the goals you set for yourself.
[ From Trent: How to Create and Customize Your 2021 Financial Goals ]
For example, take-out is easy and sometimes a better option than going to the grocery store during the pandemic. But it’s not good for your wallet. The amount of money people spend on food has increased since 2019, so consider cheap-and-easy meals that save you time if you have a bloated budget.
Another pitfall many see in their spending is their subscriptions. Did you sign up for any free trials and forget to cancel last year? Evaluate your monthly subscriptions and see which ones you aren’t using. Charges like this can sneak by, sometimes without you even noticing –– but it adds up pretty quickly. After eliminating frivolous spending, you can redirect that money directly into your savings.
4. Don’t forget your emergency fund
So you have the bare bones of your budget laid out. You have found the areas you can cut back on and know how much extra money you’ll have each month. Now you need to decide what to do with it.
If 2020 has taught us anything, it is the necessity of building an emergency fund. This is not an area you want to overlook. If you’ve taken a detailed look at your expenses and what you spend, you’ll have an easier time finding the money to put in your emergency fund each month. You never know what could come up over the next year. It’s better to prepare now rather than scramble later. A little planning now will help you avoid predatory options like payday loans or cash advances.
In this article
5. Plan for your taxes
Taxes will be a little more complicated this year, especially for the millions of Americans who received unemployment benefits. Unless you opted into having taxes being withheld from your payments, you’ll see a larger tax bill for 2020. Not all states will tax these benefits, though federal taxes will be due.
[ Read: Income Tax Guide for 2020 ]
You’ll also need to look at your 401(k) or IRA contributions for the year. Contributing to these accounts will lower your taxable income. Any charitable donations you have made will also need to be accounted for, as they often mean additional deductions on your taxes. A little math now and a quick could help you maximize your write-offs.
Too long, didn’t read?
As you think about budget adjustments to welcome 2021, remember that there’s no wrong way to maintain a budget as long as you’re tackling your spending and keeping track of where your dollars go. It sounds like a simple idea, but it might seem difficult to pull off when you start. Use this list to organize your priorities when working on your budget. Hint: To ease step number one, write down every single monthly expense you can find. Here’s a quick and easy budget model to get you started and a detailed list of budgeting strategies. From there, our list will be easier to follow. Good luck, and let us know if you have any other methods that work for you.
We welcome your feedback on this article. Contact us at [email protected] with comments or questions.
Inside: Do you have a passion for something, but don’t know what to do with it? This guide will help you find a career that is perfect for you and match your interests and values.
This is something all of us wonder, right?
What should I do for a living?
Am I doing what I should do as a career?
Did I make the right decision with my career?
Or is it time to switch gears and find something that I love to do and make money at the same time?
I have been asking this question so many times, I finally decided to make a list of answers.
This is not just for those who want to know what they should do with their lives; it’s also for anybody looking for some new ideas on how they can fit into a career that will bring them satisfaction and happiness.
Recently, my middle schooler was asked, what do you want to do beyond high school? And he looked at me shell shocked.
Remarkably, this question of what should I do for a living is a doozy to answer. So, don’t feel alone if you cannot answer it… yet.
How do I find out what I should do for a living?
The first step to finding out what you should do for a living is to identify your skills and interests.
What are you good at?
What do you enjoy doing?
Once you have a better idea of your strengths and passions, you can start researching your options.
The bottom line…you must be happy to spend the next decades doing what you picked.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Tips for finding a career you love
When you’re looking for work, it’s important to remember that there are many different ways of making a living. You can be an artist or designer in your own home studio, or run your own business. The key is to figure out what your interests are, and then find a way to use those skills in the work you love doing.
The goal of this article is not just to help you find a job that pays the bills, but to help you find work that is satisfying, meaningful, and fun.
Here are some tips to keep in mind as you go through the process of figuring out what you want to do with your life.
#1 – Focus on You
Don’t listen to people who tell you that you should do one thing. If your parents want to see you be a doctor, or if your friends think it’s important for you to have a “real” job, you might be tempted to listen to them.
Don’t let anyone else tell you what your passion is, or how you should spend your life.
Determine what’s important for YOU!
As you go through the process of figuring out what to do with your life, keep in mind that there are many different ways to live a happy and fulfilling life. You don’t have to be a doctor to help other people. You don’t have to work in an office all day, every day.
Do what you love and the money will follow.
If you do something that you love, you will never have to work a day in your life. If you do what you love, and are good at it, people will pay for that service or product.
Do what makes YOU happy. If you’re not happy, no one else will be either.
Don’t let anyone tell you what to do with your life. You should never have to justify your decisions or choices to anyone. You are the only one who has to live with your decisions and choices.
Do what you want, not what other people want for you or think that you should do. Period.
#2 – Identify What Interests You & Makes You Tick
There are a variety of ways you can go about finding out what interests you. You can read books and articles on different topics, talk to people with various careers, or take online quizzes and assessments – like this what should I do for a living quiz.
The first step to finding the right career for you is to identify what interests you intellectually.
What fascinates you?
What makes you feel like you are not working?
How do you want to spend your free time?
Once you know what fascinates you, the next step is to figure out how you can turn this into a career. Then, pursue your career interests relentlessly so you can reach your full potential.
#3 – Uncover your Strengths
Identifying your strengths is the key to finding opportunities that will be a good fit for you and enable you to reach your full potential.
Here are some things to take note of:
Pay attention to what you enjoy doing.
Notice when you feel most energized and engaged.
Consider what you do well naturally.
Reflect on feedback you’ve received from others.
Ask yourself how you can use your strengths more often in your current role or situation.
Once you know what they are, make sure to pursue opportunities that are based on them. This will help you stay focused and motivated in your work and life.
#4 – Match Your Values With Your Interests
Your values are the things that are most important to you in life. They guide your decisions and actions. They direct you to live a life that is meaningful to you.
There are many ways to identify your values. One way is to think about what is most important to you in different areas of your life, such as your relationships, work, leisure activities, and so on. Another way is to think about what you would like people to say about you when you are no longer here. What do you want them to remember about you?
Once you have identified your values, it can be helpful to write them down or share them with someone who will support and encourage you in living according to them.
When you link your values and interests together, it creates a powerful combination that can help you to live a more fulfilling and meaningful life.
When you know what is important to you (values) and what makes you happy and excited (interests), it becomes much easier to make decisions about how to spend your time and energy.
For example, let’s say one of your values is “family” and one of your interests is “cooking”. You could combine these by cooking meals for your family members or friends. Not only would this be enjoyable for you (because it aligns with your interest in cooking), but it would also be meaningful because it would be an act of love and care for those closest to you (which aligns with the value of family).
#5 – Consider your Lifestyle
Are you okay living below your means? Or do you prefer to flash your cash?
If you tend to spend money frivolously or struggle with saving money, then you need to be a high-worth earner. If you are okay living stingy, then a modest salary will probably work for you.
Keep in mind your lifestyle and what would be the best fit for you.
Consider if the hours are flexible, if you’d have time for hobbies and other interests, and how the commute looks. Sometimes rethinking your opportunities can give you a better perspective on what’s truly important to you.
Other Questions to Ponder:
Do you want a job that will consume most of your time?
Do you want a job where you can have a good work-life balance?
Are you okay with being tied to one location or have the flexibility to move around?
Are you willing to travel for work? If so, how often and how far?
What are your salary expectations? Are you looking for health benefits, paid vacation, or other perks?
Ultimately, there are many factors going into your decision. When considering a new potential career opportunity, it’s important to think about more than just the paper qualifications and the salary.
#6 – Spend Time Doing your Research
The best way to find a career you love is to first figure out what it is that you’re passionate about. What are the things that make you excited to get out of bed in the morning? Once you know what your passions are, research careers that align with those interests.
This just doesn’t happen overnight.
In fact, I recently went back to something of interest to me years ago because it would provide the time freedom I desired.
Spend time doing your research and following all the steps we cover in this post.
#7 – Find a career that matches your skills and interests
It can be difficult to identify what you want to do with your life, especially if you’re feeling lost or uncertain.
However, once you’ve identified what areas of interest might suit your skillset, try to link these interests with some type of career options.
Consider how your interests would fit into potential careers before choosing one.
It’s important to consider how your unique passions would fit into certain occupations or fields of work before choosing one. This will help you find a career that is satisfying and fulfilling. Consider the skills and interests you have and search for job openings that match them.
Start by researching the field you’re interested in.
# 8 – Talk to people in the field
There are a few ways to find people to talk to about your career interests. You can start by talking to friends and family members who might know someone in the field you’re interested in. You can also look for professional organizations related to your field of interest, or search for networking events in your area.
When you’re talking to someone about their career, it’s important to ask questions that will help you learn more about the field and whether it’s a good fit for you. Some questions you might want to ask include:
What does a typical day look like?
What is the most challenging part of the job?
What are the biggest rewards of the job?
These people will have better insights than what you can find searching the internet.
#9 – Get experience in the field
Oh, I cannot tell you how important this step is!
You have heard a similar story… my son dreamed of being an engineer and we planned to send him to engineering school. After his internship, the thought of being an engineer sucked the life out of him. Glad we learned this lesson before we spend money on his college education.
That is why I believe schools like this are so important to get real-life experience doing what you think you want to do for a living.
Consider internships or volunteer work to get your foot in the door.
Gaining experience can help you learn more about a particular field or company, and whether or not it’s the right fit for you.
#10 – Be open to change
Here are some things to keep in mind with change.
1. Change can lead to new opportunities: When you’re open to change, you’re also open to new opportunities. Embracing change can help you find a new job, start a business, or even move to a new city.
2. Change can help you grow: Personal growth is important for a fulfilling life. Change can challenge you and push you out of your comfort zone, leading to personal growth.
3. Change can be exciting: If you’re bored with your current situation, change can be exciting. It’s a chance to start fresh and experience something new.
4. Change can be positive: Even if it’s difficult, change can ultimately be positive. It can lead to improved relationships, increased happiness, and a better life overall.”
15 Most Popular Working for a Living Jobs
Many people want to know what they should do for a living.
For some, it’s not as easy as just “doing what you love.” There are definitely jobs out there that allow you to do what you love and make a living.
But first, we need to talk about the types of work available.
All salary estimates from Salary.com.
Registered Nurses
Registered nurses are in high demand and make a good living. They work with patients to assess their health, provide treatments, and help them recover.
Average Pay: $65k-70k per year
Education Needed: You need to have a nursing degree from an accredited school. You will also need to pass the National Council Licensure Examination for Registered Nurses (NCLEX-RN)
Police Officers
Police officers are responsible for upholding the law and maintaining public safety. A successful career in law enforcement requires strong communication skills and the ability to stay calm under pressure.
Average Pay: $54k-72k per year
Education Needed: Requires a college degree
Security Officer
More people are looking for security officer jobs as the world becomes increasingly dangerous. Security officers are in high demand and are usually the first responders in an emergency situation. It’s a challenging and rewarding career that can make a difference in people’s lives.
Average Pay: $32k-53k per year
Education Needed: Depends on their background and previous experience.
Real Estate Agents
If you’re looking for a job that’s in high demand, consider becoming a real estate agent. With the right education and licensing, you could be helping people buy and sell homes in no time. You must be comfortable marketing yourself and closing sales.
Average Pay: $38k-140k per year
Education Needed: Real estate agents need to be licensed in order to work. The real estate agent licensure test has a written and practical exam that must both be passed. In order to pass, you will need to know about contracts, financing, legal issues, and more.
Nursing Assistant
One of the most popular jobs in America is nursing assistant. It requires little training and pays relatively well. The work can be demanding, but it is also rewarding, and many nursing assistants feel a sense of satisfaction from their work.
Average Pay: $29k-41k per year
Education Needed: The Nursing Assistant job requires a high school diploma or equivalent, on-the-job training, and certification.
Delivery Driver
One of the most popular jobs in America is being a delivery driver. There are many positions for delivery drivers with different companies. Popular companies to work for include UPS, FedEx, and Amazon.
Average Pay: $39k-54k per year
Education Needed: Minimal. To become a delivery driver, you need to have a valid driver’s license and be able to lift heavy objects.
Firefighter
The most popular jobs in the United States vary from year to year, but there are always a few constants. Among these are firefighters, who protect lives and property from fires and other emergencies. They undergo rigorous training and must be physically fit to do the job.
Average Pay: $54k-94k per year
Education Needed: To become a firefighter, you need to have completed high school and be at least 18 years old. You will also need to pass a physical test and complete a training program.
Customer Service Representative
A customer service representative is the front line of a company and often the first interaction a customer has with the brand. The customer service representative’s job is to handle customer complaints, provide product information, and handle other inquiries. In order to be a successful customer service representative, one must have excellent communication skills and be able to stay calm under pressure.
Average Pay: $28k-44k per year
Education Needed: Minimal. Most require on-the-job training.
Dental Assistants
Dental Assistants are needed in every dental office. They help the dentist chair-side and perform a variety of tasks such as: take X-rays, prepare patients for treatment, sterilize instruments, and more. The Bureau of Labor Statistics projects that the number of jobs for Dental Assistants will grow by 18% from 2016 to 2026.
Average Pay: $32k-50k per year
Education Needed: To become a dental assistant, you will need to complete an accredited program and pass certification exams.
Nanny
One of the most popular jobs, and one that is likely to continue being in high demand, is nannying. To become a nanny, it is important to have experience with children and to be comfortable caring for them.
Average Pay: $37k-51k per year
Education Needed: You should also be CPR certified and have a clean background check.
Medical Assistants
A medical assistant is responsible for a variety of tasks in a doctor’s office, such as handling insurance claims, scheduling appointments, and helping the doctor with examinations.
Average Pay: $33k-44k per year
Education Needed: The job requires certification from an accredited program and on-the-job training.
Home Health Aides
Being a home health aide can be a rewarding career. Home health aides assist people who are unable to care for themselves in their own homes. They may provide basic needs such as bathing and dressing, or they may provide more specialized help, such as caring for someone who has Alzheimer’s disease.
Average Pay: $23k-33k per year
Education Needed: In order to be a home health aide, you need to have a high school diploma or equivalent, be at least 18 years old and have a driver’s license.
Personal Assistants
Being a personal assistant is a profession that helps people with various tasks. These tasks can include things like preparing meals, cleaning, and running errands. There are many different types of personal assistants, but all of them must have good communication skills and be able to multi-task.
Average Pay: $50k-83k per year
Education Needed: None
Graphic Designer
A graphic designer creates visual concepts, using computer software or by hand, to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for advertisements, brochures, magazines, and corporate reports.
Average Pay: $39k-65k per year
Education Needed: Many hold a bachelor’s degree in graphic design or related fine arts field.
Marketing Manager
A marketing manager is responsible for planning and executing marketing campaigns that promote a company’s products or services. They must have a strong understanding of marketing principles and be able to develop creative strategies that will engage consumers
Average Pay: $47k-94k per year
Education Needed: Usually need a least a bachelor’s degree, but the experience is more important.
High Paying Career Opportunities that Pay Over $100k a Year
There are many popular career choices that people will argue about. For example, which is the best job? This section covers jobs that pay over $100000 a year.
These jobs typically have six-figure salaries and require years of schooling and training.
Software Engineer
A software engineer is someone who designs, creates, tests, and maintains the software that makes computers work. They design, develop, test, and maintain the software that makes our lives easier. As technology advances, the job of a software engineer becomes more and more important. Writes code, tests, and debugs programs and perform a variety of complicated tasks.
There is a high demand for software engineers in the airline industry. Pilots need software engineers to design, develop, and maintain the software that controls the aircraft. They also need software engineers to help with the maintenance and troubleshooting of the software.
Average Pay: $65k-130k per year
Education Needed: Requires a college degree. Many have master’s degrees as well. To become a software engineer, one must have a strong foundation in mathematics and computer science.
Database Administrator
A database administrator is responsible for designing, implementing, maintaining databases, and troubleshooting databases while ensuring their availability 24/7/365. They work with clients to understand their needs and create databases that meet those needs. Database administrators need strong technical skills, as well as good communication and problem-solving skills.
Average Pay: $97k-150k per year
Education Needed: May require a bachelor’s degree in area of specialty or require certification.
Investment Banker:
A career as an investment banker can be quite fulfilling, as you will be responsible for helping companies raise money by issuing and selling securities. You will need to have a good working knowledge of financial markets, as well as excellent communication and organizational skills. As well as provides analysis of opportunities and potential investments, assists clients with the formulation of investment proposals, and provides guidance on the structuring and negotiation of transactions.
Average Pay: $56k-110k per year
Education Needed: College degree is typical and may require an advanced degree.
Air Traffic Controller
Air Traffic Controllers work in airports to ensure safe and efficient air travel. They monitor aircraft and make sure they follow all the necessary safety procedures. They also direct the movement of flights and keep an eye on traffic congestion. An air traffic controller is key for the safety of the pilots and passengers.
Average Pay: $54k-120k per year
Education Needed: Requires certification from the Federal Aviation Administration (FAA).
Petroleum Engineer:
There is an increasing demand for Petroleum Engineers. They are responsible for the exploration and production of oil and gas and work in a variety of industries, including energy, mining, and transportation. They develop plans to extract oil and gas from deposits below the earth’s surface and new ways to extract oil and gas from old wells.
Average Pay: $82k-120k per year
Education Needed: Requires a bachelor’s degree in engineering. May specialize in reservoir engineering, drilling engineering, or production engineering.
Anesthesiologists
Anesthesiologists are responsible for the care of patients during and after surgery. They monitor patients to make sure they are safe, help them breathe, and make sure they are comfortable.
Average Pay: $310k-520k per year (most anesthesiology assistants make well over $100k)
Education Needed: Requires a bachelor’s degree. Then, medical schools are offering anesthesiology education.
Airline Pilots
Being an airplane pilot is a very demanding job. Pilots need to be able to stay focused for long periods of time while flying. They also need to be able to make quick decisions while flying. Pilots also need to be able to multitask while flying. With travel demand constantly growing, there will be a growing need for pilots.
The airline pilot profession is a very demanding one that requires a great deal of education and training. It takes many years of dedicated study to become a qualified airline pilot.
Average Pay: $125k-163k per year
Education Needed: In order to become a certified pilot, pilots must first complete an accredited undergraduate program. After that, they must complete a professional pilot training program that can last anywhere from 1 to 4 years. Finally, they must pass a certification.
Psychiatrists
There are many different types of psychiatrists and their job duties vary. Psychiatrists are typically employed as full-time employees in hospitals, clinics, or private practices. A psychiatrist’s job duties may include diagnosing mental disorders and providing treatment.
Average Pay: $190k-300k per year
Education Needed: Usually required to have a graduate degree in psychiatry and pass a psychiatric board examination.
Orthodontists
Orthodontists are a type of doctor who specializes in the treatment of teeth and jaws. They use orthodontic appliances (braces and retainer devices) and other treatments to correct problems with teeth and jaws. Orthodontists typically work in private clinics and hospitals.
Average Pay: $100k-210k per year
Education Needed: Required to have a four-year undergraduate degree in dental hygiene, dental medicine, or dental technology. After completing an orthodontic residency, they must pass the American Board of Orthodontics (ABO) license examination.
Day Trader
A day trader is someone who makes a living by trading stocks, commodities, or currencies. They do this by buying and selling stocks, commodities, or currencies at the right time, and making a profit. This means that they are constantly on the lookout for opportunities to make money. A day trader typically works from home and may use a computer, telephone, or other electronic devices to trade.
Average Pay: $65k-120k per year
Education Needed: Required None required. However, many have a background in finance or economics.
Hedge Fund Manager
A hedge fund manager is a person who manages hedge funds. Hedge funds are investment pools that are used to protect investors from losses. Hedge fund managers make money by investing money in different types of securities.
Being a hedge fund manager is a very demanding job. It requires a lot of skill, knowledge, and experience. A hedge fun manager must be able to analyze financial data and make decisions quickly. He or she must also be able to communicate with clients and other employees of the hedge fund.
Average Pay: $87k-131k per year
Education Needed: Hedge fund managers must have a strong educational background. Studying finance or economics is usually necessary.
Web Developer:
A web developer is responsible for creating and maintaining websites. They work with clients to understand their needs and create a website that meets those needs. Web developers need strong technical skills, as well as good communication and problem-solving skills.
Average Pay: $97k-140k per year
Education Needed: College degree required. Must have certifications as well.
Network Engineer
A network engineer is responsible for designing, implementing, and maintaining networks. They work with clients to understand their needs and create networks that meet those needs. Network engineers need strong technical skills, as well as good communication and problem-solving skills
Average Pay: $73k-120k per year
Education Needed: College degree required. Must have certifications as well.
Trade Jobs that Pay A lot More than Minimum Wage
Trade jobs often come with good pay. This is because they require specialized skills and training. Some of these jobs include welders, plumbers, and electricians. Many trade jobs also come with good benefits packages. This includes things like health insurance and retirement plans. Some even offer the choice to join a union.
For example, welders and power plant operators can make an average of $23 an hour. Plumbers and electricians can make an average of $30 an hour.
Power Plant Operator
Aircraft Technician
Welders
Plumber
Construction Manager
Electricians
Real Estate Appraiser
HVAC Technician
Elevator Mechanic
Radiation Therapists
Boilermakers
Most Needed Job Opportunities
There are a number of jobs that are on-demand and in high demand right now. These jobs may have different requirements or be in higher demand in certain areas, but they all offer the potential to make a good living doing something you love.
There are many trade jobs that are in high demand right now. This means that there are more job openings than there are people to fill them.
This list of the top five jobs in demand right now was formed with the help of Best Colleges.
Nurse Practitioner
A Nurse Practitioner is a type of doctor who helps patients with a wide range of health problems. They work in a team with other doctors and nurses to care for patients.
Nurse Practitioners are trained to diagnose and treat a wide range of health problems, which can include everything from common colds to more serious diseases.
Average Pay: $100k-140k per year
Education Needed: Medical training is beyond what a registered nurse needs. A Master’s in nursing is required as well as state licensure.
Genetic Counselor
A genetic counselor is a healthcare professional who helps individuals and families understand and adapt to the medical, psychological, and social implications of genetic disorders. They work with patients to provide risk assessment, education, and support for inherited conditions.
Genetic counselors are poised for rapid growth and long-lasting job security due to advancements in genomics and genetic testing.
Average Pay: $67k-99k per year
Education Needed: Master’s degree in genetics and board certification.
Occupational Therapy Assistant
An occupational therapy assistant (OTA) is a healthcare professional who helps people regain and improve the skills they need to live and work independently. They provide rehabilitative services to patients who have sustained an injury, have a disability, or are experiencing physical and/or cognitive changes.
This may include helping individuals improve their mobility, balance, and coordination through exercise programs; improving the social skills of children with developmental challenges; working with people who have mental health conditions to help them participate in daily activities; or providing support to elderly patients who want to remain independent.
Average Pay: $52k-76k per year
Education Needed: Associate’s degree and field experience.
Physical Therapist Aides
Physical therapists aides help patients who have physical problems such as bed sores, fractures, and paralysis. They work with the physical therapist to help the patient move and perform activities of daily living. Typically duties include helping patients with exercises, massages, and other treatments.
Average Pay: $30k-38k per year
Education Needed: Physical therapist aides must have a high school diploma or GED and pass a criminal background check.
Information Security Analyst
The information security analyst job market is projected to grow by 33% over the next three years, making it one of the fastest-growing job markets. Information security analysts are vital to the protection of data and are responsible for the protection of computer systems and networks from cyberattacks and data breaches. They work to protect an organization’s most valuable assets- its data.
Average Pay: $70k-103k per year
Education Needed: Most have a Bachelor’s degree in software engineering or computer science. Also, many have certifications.
Thinking to Follow Your Passion – Cool Jobs to Do
There are a variety of jobs that you may not have considered that can be a great fit for you.
If you’re looking for a career change or just want to try something new, here are a few jobs you may want to consider. These jobs offer great opportunities and allow you to do what you love every day.
Video Game Programmer or Designer
If you love playing video games and have some creativity, you may want to consider becoming a videogame designer. This job allows you to use your imagination and creativity to create new and innovative gaming experiences for players all over the world.
Average Pay: $53k-185k per year
Education Needed: A college degree in computer programming is preferred. However, you can program get a certification and start working sooner.
Virtual Assistants (VA)
Being a virtual assistant can be a great way to make some extra money. It can be a lot of work, but with the right skills and equipment, it can be a lot of fun. Virtual assistants work with people all over the world, so there is always something new to learn. A VA has very flexible hours and can set its own schedule.
Average Pay: $39k-52k per year (depending on how much you hustle). Very common to make more.
Education Needed: None. But, this virtual assistant training is highly recommended.
Video Producer
There are a variety of video production jobs that are in high demand. If you have the skills and are passionate about video, there are plenty of opportunities out there. You could work as a video producer for a news organization, create video content for a website, or work for a company that produces video content for marketing purposes.
Average Pay: $47k-100k per year
Education Needed: Most have a college degree in design and video production. But, experience is preferred.
Tour Guide
If you are good at giving information tours, you may want to consider becoming a tour guide. Tour guides give visitors an overview of a particular place or attraction. They must be knowledgeable about the history and culture of the area they are touring, and be able to answer visitor questions.
Average Pay: $22k-44k per year
Education Needed: None.
Fashion Stylist
Detail-oriented people who have a passion for fashion and design can make a great living as a stylist. Stylists are in high demand, especially in the fashion industry. They typically work with clients to help them choose outfits or styles that will suit them, as well as style photo shoots and provide consultation on current trends.
Average Pay: $47k-64k per year
Education Needed: This is a job where you get popular by your experience and referrals.
Translators
Being a translator can be a very rewarding and challenging career. The most popular jobs for translators are in the legal, medical, business, and technical fields.
Translating is a very versatile job that can be done in many settings. Learning about the different types of translation and which language pairs are the most popular can help you get a better understanding of the field.
Average Pay: $43k-72k per year
Education Needed: Typically hold a bachelor’s degree. Must be proficient in at least two languages.
Social Media Manager
If you are able to communicate well, have strong writing and communication skills, and have some marketing experience, you may want to consider becoming a social media manager. A social media manager is responsible for developing and executing a social media strategy for their employer or client.
A social media manager is responsible for creating and managing a company’s social media presence. This includes creating content, monitoring activity, and engaging with followers.
Average Pay: $49k-75k per year
Education Needed: A college degree in marketing is preferred.
Event Planner
Event planners are in charge of organizing and managing events. They come up with ideas for events, coordinate with various departments to make them a reality, and keep things running smoothly. Event planners can work for businesses of all sizes, from small businesses to multinationals. There are many different types of event planners, so if you’re interested in a career in events, you should explore this avenue.
Average Pay: $47k-70k per year
Education Needed: Many have a college degree, but that is not mandatory. Strong organizational skills, attention to detail, and ability to work under pressure. Experience is best.
Florist
There are many cool jobs that you can consider if you are interested in the floral industry. A florist can work in a variety of settings, such as a grocery store, a restaurant, or a ballroom. A florist can also work as a freelance artist, creating floral arrangements for special events. This is a creative outlet for many and comes with flexible hours. However, work can be seasonal and require working on weekends and holidays.
Average Pay: $35k-76k per year
Education Needed: Nothing special. Just have an eye for creativity and a love of flowers.
Work Opportunities to Make Real Money
How do you want to make money? There are many ways. You could choose a career in medicine, law enforcement, or any other occupation that ultimately benefits society and helps people thrive.
Many people believe a business degree is worth it, but may not be the best choice for you.
Here are real jobs to make real money at work.
Teacher
One of the most popular jobs in America is teaching. Teachers are needed in every state, and the profession offers great stability and benefits. We need our teachers to teach the next generation.
Average Pay: $39k-80k per year
Education Needed: In order to become a teacher, you need to have at least a bachelor’s degree and be certified in your state. Many pursue a master’s degree in order to receive higher pay.
Veterinarian / Veterinary Tech
There are a lot of different jobs in the veterinary field, and if you love animals, chances are you would enjoy working with them. Veterinarians work with all types of animals, from pets to livestock. Veterinary technicians work with animals in veterinary hospitals, performing tasks such as recordkeeping and taking care of furry patients.
Average Pay: $60k-150k per year / $25k-55k per year
Education Needed: Becoming a veterinarian is much like going to college to become a doctor requiring specialty degrees. However, a vet tech only needs a high school diploma.
Construction Worker
Being a construction worker can be a challenging, but rewarding experience. It can be a great way to meet new people and build some amazing structures. The job requires a lot of physical labor, but it can also be very rewarding to see a project come to life. If you are interested in becoming a construction worker, be sure to research the profession and prepare yourself for the challenges that will come with the job.
Average Pay: $26k-47k per year
Education Needed: Starting out no experience is needed. To become a project manager, you will need a college degree.
Marketing Assistant
A marketing assistant helps with a variety of tasks in marketing. They may be responsible for monitoring and managing budgets, creating and distributing marketing materials, or working with customers to improve their experience with a company. If you have a strong interest in marketing and are comfortable working in a collaborative environment, a marketing assistant role may be a good fit for you.
Average Pay: $34k-57k per year
Education Needed: A college degree in marketing is preferred.
Truck Driver
One of the most popular jobs in America is a truck driver and a heavily needed position. The Bureau of Labor Statistics reports that there are 1,187,500 truck drivers employed in the United States.
Average Pay: $45k-58k per year
Education Needed: A high school diploma or equivalent is typically required to become a truck driver.
Administrative Assistant or Office Manager
The Administrative Assistant position is one of the most popular jobs in America. The role generally entails providing support to managers and employees, handling office operations, and managing schedules. In order to be successful in this career, you’ll need strong organizational skills and proficiency in Microsoft Office.
Average Pay: $35k-55k per year
Education Needed: None
What Should I Do for a Living FAQs
You enjoy going to work,
Your work makes you feel fulfilled.
Your skills are utilized and challenged.
You feel like you are making a difference.
This is why it is important to spend time making a decision on what to do for a living.
You’re not passionate about your work
You’re always stressed out
You dread going to work
You’re not challenged by your work
You don’t feel like you’re making a difference
It is better to make a decision to move out of the wrong career to maintain your happiness in life.
Research other careers that might be a better fit for you and consider making a switch.
Your interests can give you clues about the types of careers that might suit you. Your skills can help point you towards careers that will make use of your strengths.
Passions:
What are you passionate about?
What topics can you talk about for hours without getting bored?
Skills:
What natural talents do you have?
Are you good at working with your hands, or do you prefer working with your mind?
Do people often come to you for advice or help with problems?
Values:
What is important to you in a job?
Do you want to feel like your work makes a difference in the world, or do you just want a steady paycheck?
Do you prefer working independently or as part of a team?
Personality:
Are you an extrovert or an introvert?
Do people describe you as spontaneous or cautious?
Work environment:
Do you prefer working indoors or outdoors?
In an office or from home?
With animals or with people?
When it comes to choosing a career, it’s important to consider what kind of personality traits will make someone successful in their chosen field. Also, knowing your values can help narrow down your career options.
How can you create a career you love?
Your career is one of the most important aspects of your life. It’s what you spend the majority of your time doing, and it can have a huge impact on your overall happiness and satisfaction with life. That’s why it’s so important to find a career that you love.
When you have a career that you’re passionate about, it doesn’t feel like work. You’re more likely to be engaged and motivated, and you’ll be more likely to stick with it even when things get tough. Plus, pursuing a career that you love can lead to all sorts of other benefits, like increased success and earning potential.
There is no reason why you can’t create a career that brings joy into your life every single day!
How can you make a living doing what you love?
What are you good at? What do you enjoy doing? Which things are you naturally drawn to?
Those are the areas you need to focus on.
Once you have a plan, it’s time to start making money. There are a number of ways to do this, but the most important thing is to get started and keep moving forward.
Remember, it takes time and effort to build a successful business or find an enjoyable career.
What Should I Do Now?
There’s no single answer to the question “what should I do for a living?”
Everyone has a different idea of what they would like to pursue.
There is no right or wrong answer when answering this question, but if you are struggling with the decision-making process, take note of these most popular jobs and the skills you need to get them.
But by exploring your interests and values, you can find a career that is a perfect match for you.
No matter what your interests or skills may be, there is sure to be a cool job out there that is perfect for you.
You could also become an environmental scientist, web developer, or event planner. There are many exciting and rewarding careers out there – you just need to find the one that’s right for you.
Then, at the next social event, you can be proud to answer “what do you do for a living?”
So what are you waiting for? Start your search today!
More Ideas for You:
Know someone else that needs this, too? Then, please share!!
Veterans have access to the three different types of loans: the purchase loan, the VA cash-out refinance and the VA streamline refinance (IRRRL). When looking to buy a home, only one of these can be used for purchasing.
The VA purchase loan has a lot of different rules, though. Depending on what the veteran is looking for, they can take advantage of some of these benefits, or ignore others entirely.
For the most part, veterans will take advantage of the same benefits offered through the VA loan: 100% financing, low mortgage rates and low credit score requirements, to name a few.
Purchase loans are mostly the same, although little changes can give you a different type of VA loan.
Click to begin the home buying process.
Regular VA purchase loan
By “regular,” this means that it’s a standard VA purchase loan. In addition to the biggest benefits offered by the VA loan, home buyers will also be able to prepay without penalty and avoid paying mortgage insurance, regardless of the size of their downpayment.
There are other requirements to consider, though. The VA has required fees at closing, including the VA funding fee. This fee helps keep the VA program running. Even when including the funding fee in the total costs, though, the VA loan is usually still the best option for home buyers – if they’re eligible.
Also, the home that you choose will have to pass the VA appraisal. The VA has stricter standards than other organizations, and some problems like lead paint can prevent the mortgage from going through entirely. but most available homes (and nearly all new homes) will pass this with ease.
VA renovation loan
Not all homes are up to the VA’s standard, and some have a little work that needs to be done. This is where the VA renovation loan comes in.
The VA renovation loan is still technically a VA purchase loan, only the total size of the mortgage is going to be a little larger. Veterans can use this extra money – up to $35,000 – to make important renovations or repairs to homes.
There is a limit to where the money can be used, though. The extra funding can go toward repairing the roof or floors, improving the energy efficiency of the home and removing lead paint and getting the home repainted, among other uses.
You can learn more about VA renovation loans and their restrictions here.
VA construction loan
Beyond renovating a home, the VA loan can be used to build a new home.
A VA construction loan allows home buyers to become home builders, financing the construction of their future home with a VA loan. This can be an affordable way to build a home, if you have the time to wait until the construction is complete.
The biggest downside to this type of loan is that it can be difficult to find a lender willing to issue one, especially if the veteran is looking for 100% financing. These are rare loans – but the VA guarantees them, and some veterans do manage to find a lender willing to issue them.
Click to get connected to multiple VA lenders.
Native American Direct Loans
Native American Direct Loans (NADL) are VA loans specifically for Native American veterans and their spouses. These have all the same benefits of the VA loan, including the renovation benefits, but with fewer restrictions.
The biggest benefit of this VA loan is that the Native American veteran can use the loan to purchase property on Federal trust land. The regular VA loan cannot be used for this.
Differences when reusing a VA loan
You’re allowed to use VA loans multiple times, although the loan will change slightly after the first purchase.
The VA funding fee increases after you buy you first home with the VA loan. However, it won’t continue to increase if you use the VA loan to buy your third home and on.
As of January 1, 2020, VA-eligible borrowers can get any size loan with no down payment. There are no official limits. But remember, you’ll still have to qualify for the mortgage.
When buying a house, buyers are given a certain amount of time to complete a home inspection. Most people complete some type of inspection when purchasing a home, but is a home inspection always necessary? I have been a Realtor since 2001 and I am also a real estate investor. In my opinion, 95 percent of house buyers should always get a home inspection. There are a few cases when a home inspection is not needed and some cases when not getting a home inspection will actually give you a better chance at getting a great deal on a house. I have not asked for a home inspection for over a year on my own investments.
How does a home inspection work when buying a house?
When buying a home, most buyers are given a chance to get an inspection done on the house before they buy the home. In most states, it is typical for the inspection to occur right after the home goes under contract. Buyers are given a specific amount of time to either inspect the house themselves, have a friend inspect it, a contractor or a professional home inspector check out the home.
Buyers should be allowed to check out everything in a home including the major systems, utilities, and minor cosmetic issues. In some cases like with HUD homes or some REO sellers, the utilities cannot all be turned on. If the pipes on a HUD home do not hold pressure when HUD inspects a house, the buyer will not be allowed to turn on the water for inspections or appraisals (will discuss HUD rules later in the article). In some cases, houses that are in really bad shape may not have the electric or gas turned on if it is not safe to do so. The buyers are usually responsible for ordering and paying for the home inspection and it gives them a chance to ensure the house is in satisfactory condition before they buy the home.
I also made a video on this subject below:
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How much does a home inspection cost?
The cost of a home inspection can vary greatly. Smaller houses are cheaper to inspect and larger houses are more expensive. Costs vary depending on the region of the country you are in and living costs. Different inspectors have different rates as well.
For a rental property, I would buy that is about 2,000 square feet total I can get an inspection done for about $300. On my personal house which is close to 6,000 square feet, the inspection was $600 and the inspector did not even get a chance to look at everything in the home (after 5 hours). I am able to get slightly lower rates because I am a Realtor and there is a chance I might send business to inspectors. As a regular buyer expect to pay a little more than I do.
Besides using an inspector you can also use a contractor to look at home for you. I would be cautious when using contractors because they might tend to underestimate the seriousness of some repairs. If they convince you not to buy a home and they know you will use them to fix it up, they just cost themselves a job. I had a local roofing contractor look at a flip for me last year where there were major structural problems in the roof. He said it looked like an easy fix and not to worry about it. After he got started on the job, the easy fix turned into almost a complete rebuild of the roof!
What happens to the earnest money if a contract is canceled due to a home inspection?
When you write a contract to buy a home or your real estate agent writes a contract for you, you usually include earnest money. A typical amount for earnest money is one percent of the purchase price, but it can vary depending on your location and the seller. The earnest money is a good faith deposit showing the buyer is serious about buying the home. However, that does not mean the earnest money is nonrefundable if the buyer backs out.
Most contracts are written so that the buyer can cancel the contract and get their earnest money back if certain things happen. If a buyer has an inspection contingency written into the contract, they have a certain amount of time to complete an inspection. If the buyers cancel their contract because of the inspection and they notify the seller before their inspection contingency expires, they will receive their earnest money back most of the time (HUD is an exception I will go into more detail later).
If a buyer is not able to get a loan, there is a title problem or another contingency allows the buyers to cancel (title, appraisal, survey, etc.), they can cancel the contract and get their earnest money back as well. You just have to make sure the seller is notified before the dates on the contract expire for those contingencies. It is actually pretty rare that a buyer will lose their earnest money unless their agent misses a date or the buyers decide to cancel the contract very late in the process after their contingencies have passed.
Does a contract automatically get canceled after a failed home inspection?
If you find major problems after a home inspection you do not automatically lose the house. There are many options for the seller and buyer to save the deal. The outcome will depend on how serious the problems are with the house and how motivated the sellers and buyers are. The buyer can ask the seller to renegotiate the contract terms or to cancel the contract. Here are a few ways home inspection issues can be resolved.
Buyer agrees to purchase the home as-is. In some case,s the buyer will decide to proceed with the purchase of a home, even if there are major problems. In some case,s the buyer will have no choice because the seller will not make repairs or change the contract (HUD).
Seller agrees to make repairs to a home. Many times a seller will agree to make repairs to a house after an inspection is done. The seller may agree to make all the repairs the buyer asks for or negotiate to make some of the repairs.
Seller agrees to lower the price or renegotiate other terms. The buyer may ask the seller to lower the price, or the seller may offer to lower the price after the buyer requests repairs to be made. The seller can also agree to lower the price and make some repairs.
The buyers can ask the seller to repair whatever they want or lower the price to whatever they want, but the seller does not have to agree to anything. If the seller and buyer cannot come to an agreement on what to fix or how much to renegotiate, then the contract will fail.
Why would a buyer not want a home inspection?
In most circumstances, it makes sense to get an inspection done. Most homebuyers do not have the expertise to know what problems they may encounter when buying a house. A professional contractor or inspector can discover what problems a house has and how serious they are. A home inspection also gives a buyer the chance to ask for repairs or renegotiate the contract. I recommend almost all buyers get a home inspection done.
Having said that, I have not gotten an inspection or asked for an inspection contingency in a contract on the last ten houses I have bought. When you waive your inspection contingency it makes your offer much more attractive to the seller and gives you a better chance to get your offer accepted. This is a great tactic to use in a very competitive market when there are few deals to be had. It is also a great tactic to use in a multiple offer situation.
Do not waive a home inspection if you are not very experienced in buying homes, knowing what repairs are possible to come up and how much they will cost!
Why do I feel comfortable buying houses without an inspection?
I have been a Realtor since 2001, I have more than 20 rental properties and have flipped over 180 houses. I have a lot of experience with repairs on properties and what to look for. I have repaired an entire flip myself back a few years ago, which did not go as planned, but sure taught me a lot! There are many things that can cause a lot of problems on houses and you have to know what to look out for.
Foundations
Roofs
Plumbing
Electrical
HVAC (heating and cooling)
Mold
asbestos
Siding
Wood rot
These are just some of the things you must be aware of and know what to look for if there is a serious problem. These issues do not include cosmetic items or things you can see are wrong like:
Kitchens
Baths
Fixtures
Paint
Carpet
Doors
Windows
Not only do you have to be able to see when there is a problem, but you also have to know how much it will cost to repair these items if there is a problem. When I buy flips or rental properties I am buying them at a huge discount. When I make my cost estimates for repairs on a home, I always budget in extra money for things I may miss or discover during the rehab. I never assume a house only needs the work I can see, which is another reason I feel comfortable buying houses without an inspection.
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Why are HUD inspections different from traditional sale inspections?
HUD homes and some REO sales have many different guidelines than traditional sales. HUD homes are government-owned foreclosures and you can find much more information on them here. For owner-occupants, HUD allows the buyer a 15 day inspection period. The buyer must pay for the utilities to be turned on for the inspection and in some cases, HUD will not allow the water to be turned on. HUD has all of their homes pre-inspected and they do a pressure test on the plumbing system. If the plumbing system does not hold water, HUD will not allow the water to be turned on for the inspection or appraisal.
The inspection HUD does before they list a home provides some information to a buyer, but many times the utilities are not on when that inspection is done. I would never rely on the HUD inspection only; I would get my own inspection on HUD homes as well (if I were a normal buyer). HUD publishes the findings of that inspection (it is called the PCR) on hudhomestore.com under addendums. This is important to know because if HUD lists something that needs to be repaired on the PCR the buyer cannot use that as a reason to get their earnest money back. If the buyer of a HUD home finds an inspection problem and they want to cancel it has to be a new problem that HUD did not find.
HUD will also not make any repairs or lower the price based on the inspection and investors are treated differently than owner-occupants. An investor will not get their earnest money back due to inspection problems period on a HUD home.
Is it safe to waive an inspection if a home is pre-inspected?
HUD homes have an inspection done before they are listed. I have already talked about why you should not trust a HUD inspection and you should have your own done. Some traditional listings will advertise they are pre-inspected. I think it is a good sign that a home is pre-inspected, but again it is best to get your own inspection done. Inspections are relatively cheap compared to the cost of the problems they might find. Even if a house is pre-inspected I would have your own inspection done to confirm nothing was missed.
Is it wise to use an inspection contingency as a negotiating tool?
If you find major problems with a house that you did not know about, it makes sense to ask for repairs to be done or the price to be reduced. Some buyers will make an offer with the intention of asking for a price reduction from the inspection results, no matter how the inspection turns out. I never do this and I find it to be dishonest and unethical. For investors who buy many houses, it can also hurt your chances to get a great deal.
I have seen a few deals fall apart because buyers tried to use this tactic and it made the sellers and real estate agents very unhappy. When investors buy a lot of homes they will make offers to the same agents over and over again. I am a HUD and REO listing broker and list many houses. If I see a buyer who always asks for ridiculous inspections items or price reductions I will let my seller know before they accept their offer. If a buyer or real estate agent gets a reputation for renegotiating every offer on inspections, it will make it harder for them to get offers accepted.
One reason I am able to get so many deals from the MLS, is other agents know I do not play games, I do not renegotiate and if I say I will close, I will close.
How to find a great home inspector
When you use a real estate agent they should have suggestions for inspectors in your area. There are also inspectors you can find online, but I would use the recommendation of a professional in the business. There are many home inspectors and in some states, they need no training or licenses to be a home inspector.
I would interview any inspector before you use them and make sure you are comfortable with their knowledge and services. Some inspectors will nitpick a house over minor issues and some inspectors will not be very thorough and could miss major issues.
I would interview any inspector before you use them, and make sure you are comfortable with their knowledge and services. Some inspectors will nitpick a house over minor issues and some inspectors will not be very thorough and could miss major issues. A good real estate agent can help you choose the right inspector, as well as help you go over the report.
Conclusion
Home inspections are very important for most buyers who are not buying a lot of houses. Even if you buy a lot of homes, you have to be very comfortable judging repair costs and what will need to be repaired if you are thinking of waiving your inspection. If you do waive your inspection, you can get out of a contract but may lose your earnest money in the process. My advice to most is to always get an inspection done.
There’s no easy answer to the question “Should I rent or buy a house?” It depends on so many factors: your age, your finances, your neighborhood, your future plans, the current real estate landscape, and the mortgage market, to name just a few.
Being a landlord requires a lot of responsibility and quite the investment. But it also comes with a great set of benefits, including becoming your own boss and gaining more control over your time — and earning.
If you’ve ever wondered if it would be worth it to become a landlord (and what exactly that entails), keep reading.
Entire books have been written about finding a good rental property. So much text has been dedicated to the topic because of its critical importance. Buy too expensive a place, and you’ll never make money. But trying to snag a bargain can be troublesome too.
Buying a fixer-upper requires that you have the skills, time, tools, and cash to make the necessary repairs and renovations. But here are some of the biggest concerns you should have before embarking on the journey to becoming a landlord:
Do you have enough in savings?
Let’s just say that your tenants can’t make the rent, but they are not going to move out without a fight.
Before you buy a rental, you need to amass an economic cushion amounting to at least six months of housing expenses, plus a few thousand dollars to pay attorneys. That gives you the staying power required to manage most worst-case scenarios.
Are you handy?
If you’re a handy person who likes doing your own work around the house, light plumbing, perhaps some construction, yard work, and so on, you might be a good candidate for becoming a landlord.
If you’re just starting out, it may be too expensive to handle outside contractors if you expect to turn your rental income into profit. Doing the work yourself saves money.
Are you available for 24-hour responsibility?
Hiring a company to manage your properties is an expense that cuts into your profit. Depending on the location, you may be able to afford this from just your rental income. If that’s the case, work with a professional property management company who will answer the phone at any hour to fix any household problems that arise.
Otherwise, be prepared for calls in the middle of the night. If you’re starting your adventure with rental properties while working at another job, you will find yourself with competing priorities often. Usually, a good idea is to start out small, and see whether being a landlord truly is a good fit for you — before embarking on bigger projects, with many units.
Another question you need to answer is: Are you old enough? You can legally buy a house as young as 18. But bear in mind that, on top of the financial responsibility that comes with a purchase, you will also have to account for the property in the eyes of your renters.
Can you keep tenants happy?
Of all the costs associated with being a landlord, the biggest one is a vacancy.
Every time a tenant moves out, you’re going to spend money, probably quite a bit of it. That means finding and keeping good tenants is the heart of successfully investing long-term in real estate.
Happy tenants are critically important. They’re your customers. And the way you keep them happy is by keeping the property in good shape and treating them with respect.
This means being a landlord also comes with a great deal of hospitality and marketing tasks that you probably haven’t factored in before, but that are crucial to your long-term success.
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