Do you have a Spending Identity? You do, whether you know it or not. It’s as real as the data on your driver’s license, but if you’re like most people, you’ve probably never given it much thought. Your Spending Identity dictates who you are as a consumer:
Are you frugal or extravagant?
Do you impulse shop?
Do you clip coupons?
These are all part of your profile.
A budget, by any other name… I’m currently reading The Money Book for Freelancers, which I’ll review here soon. It’s a great book with a lot of juicy info, including the concept of the Spending Identity. The authors ask you to write out a Spending Identity for yourself to get a picture of who you are and what you can spend. It’s a step between learning to track your income & expenses and developing a fully realized spending plan to manage your money.
The authors fully acknowledge that their Spending Identity concept is a sneaky way to start readers budgeting. It’s just a less scary word. But it also contains an important concept.
The Spending Identity is a lot less specific than a budget. Its goal isn’t to get you to commit to spending $170 a week on groceries; its goal is to turn you into a person who knows about how much money you can reasonably spend when you walk out the door each day. Not your bank balance to the penny, just the overall reality of your cash flow. Are you in the Gucci tax bracket or the Gap one? Being realistic about this can save you a lot of financial headaches.
This feels like an essential skill to develop, and one I’m still shaky on. I’ve learned to track my spending, and I’m pretty good about sticking to my spending plan. If I’m not sure whether or not I can afford $40 for hair dye or $90 for cat flea treatments (two unusual expenses that cropped up this week), I can check the Mint app on my cell phone and get the answer in seconds.
But my core sense of what I can afford is all over the map. Sometimes I’m incredibly frugal, and other times I’m prone to impulse shopping. One week, I’ll meticulously pare down our grocery list to keep it under $100; the next, I’ll drop that much cash on thermal curtains or bike parts without a second thought.
Outsmarting myself My Spending Identity hasn’t changed much since college: I always live right at the edge of my means, spending everything in my checking account — and a little more. I often hit the end of the month juggling grocery expenses against a financial surprise like a parking ticket or an invitation to a kid’s to which I’m expected to bring a gift.
As I’ve grown more financially savvy, I’ve learned ways to fool that Spending Identity into doing the right thing. Most of my money gets swept into an ING account where I put it into automatic savings plans and pay bills. In those accounts, my savings are piling up and I’m paying off debt. In my local checking account, I’m still juggling my cash flow problems like I always have.
I learned to work around my innate personality as a spender, but I didn’t really change it.
Now, I’m kind of inspired to do so. I’d like to be the kind of person who has a consistent, accurate sense of what I can spend money on, how much I can afford, and how it relates to my priorities. Not just the sense that comes from meticulous record-keeping &mdsah; what I’m looking for is better instincts.
I know about how far I can run, how often I need to eat, and how much I can write in a day. I keep records of my diet, exercise, and writing habits, but I don’t need to consult them for a broad sense. I just use them to track details. Sometimes those details show me shifting trends that surprise me, but I don’t look at my running log when I’m mid-run to find out if I’m tired. I just know.
I’d like to have a similar built-in sense for what I can spend, and what I’d like to spend it on. I can use the data I’ve collected over two years of tracking my spending to help with that. A few minutes spent journaling can also help me understand myself better:
What do I like to spend money on?
Where are the weak spots in my budget?
What are my strengths as a frugal shopper?
After answering questions like these, I should be able to have a pretty clear profile for myself, with stats to reflect my superpowers and my flaws. (What’s my financial kryptonite?) For the geeks out there, this might be like a character sheet for financial planning.
A license to spend I think it’s time I not only explored my Spending Identity, but created a Spending License. I love little visual reminders of my goals. I’m imagining a small card in my wallet that says, “Sierra Black, licensed to spend about $20 this week on personal fun, $150 on groceries, and up to $100 on other household expenses.” Or whatever those ballpark numbers turn out to really be.
My spending records will tell me what numbers to put on my license. Having that license should help me with the vague middle step between knowing exactly what I spend and reconciling it exactly with what I do spend. That vague step that has for me been the hardest: just knowing what I can afford, without doing all of the math while standing in line at the drugstore.
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43k salary is a solid hourly wage when you think about it.
When you get your first job and you are making just above minimum wage making over $43,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 43,000 per year in today’s society since it is below both the average and median household incomes. The question you want to ask all of your friends is $43000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $43000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $43k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$43000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 43k a year hourly. That way you can decide whether or not the job is worthwhile for you.
$43000 a year is $20.67 per hour
Breakdown Of How Much Is 43k A Year Hourly
Let’s breakdown, how that 43000 salary to hourly number is calculated.
For our calculations to figure out how much is 43K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $43000 by 2,080 working hours and the result is $20.67 per hour.
43000 salary / 2080 hours = $20.67 per hour
Just above $20 an hour.
Key Points….
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
Just an interesting note… if you were to increase your annual salary by $5K to $48k per year, it would increase your hourly wage to over $23 an hour – a difference of $2.41 per hour.
To break it down – 48000 salary / 2080 hours = $23.08 per hour
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $43K salary Per Month?
On average, the monthly amount would be $3,583.
Annual Salary of $43,000 ÷ 12 months = $3,583 per month
This is how much you make a month if you get paid 43000 a year.
$43k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $43k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$43000/52 weeks = $827 per week.
$43000 a year is how much biweekly?
For this calculation, take the average weekly pay of $827 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$43000 / 260 working days = $165 per day
If you work a 10 hour day on 208 days throughout the year, you make $206 per day.
$43000 Salary is…
$43000 – Full Time
Total Income
Yearly Salary (52 weeks)
$43,000
Monthly Wage
$3,583
Weekly Pay (40 Hours)
$827
Bi-Weekly Pay (80 Hours)
$1,654
Daily Wage (8 Hours)
$165
Daily Wage (10 Hours)
$206
Hourly Wage
$20.67
Net Estimated Monthly Income
$2,735
Net Estimated Hourly Income
$15.78
**These are assumptions based on simple scenarios.
43k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 43000 a year after taxes?
Gross Annual Salary: $43,000
Federal Taxes of 12%: $5,160
State Taxes of 4%: $1,720
Social Security and Medicare of 7.65%: $3,290
$43k Per Year After Taxes is $32,830
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$32830 ÷ 2,080 hours = $15.78 per hour
After estimated taxes and FICA, you are netting $32,830 per year, which is $10,170 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $43000 income can range from $29390 to $34550 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $43,000 income.
43k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $43,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live cheap and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $43,000 a year is below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $43,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL and maybe a MCOL city.
You should be able to meet your expenses each and every month.
Participate in the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $3000 in 52 weeks.
When A $43,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 40k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$43k Salary to Hourly
We calculated how much $43,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
$43K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 40k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $43000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$251
Savings
15-25%
$645
Housing
20-30%
$932
Utilities
4-7%
$143
Groceries
5-12%
$287
Clothing
1-4%
$22
Transportation
4-10%
$143
Medical
5-12%
$179
Life Insurance
1%
$11
Education
1-4%
$11
Personal
2-7%
$32
Recreation / Entertainment
3-8%
$81
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$847
Total Gross Monthly Income
$3583
**In this budget, prioritization was given to basic expenses and no debt.
Is $43,000 a year a Good Salary?
As we stated earlier if you are able to make $43,000 a year, that is a decent salary. You are making more money than the minimum wage and close to double in many cities.
While 43000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. It is okay to be driving around a beater car while you work on increasing your salary.
This $43k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 43k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, many modest cities a 43,000 a year will not a good salary because the cost of living is so high, whereas these are some of the cities that you can make a comfortable living at 43,000 per year.
If you are looking for a career change, you want to find jobs paying at least $65000 a year.
Is 43k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $43000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 43k a good salary for a family?
Many of the same principles apply above on whether $43000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $43,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 43000 per year, then the combined income for the household would be $86,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $43000 Per Year?
As we outlined earlier in the post, $43,000 a year:
$20.67 Per Hour
$165-206 Per Day (depending on length of day worked)
$827 Per Week
$1654 Per Biweekly
$3583 Per Month
Next up is making $45000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 34,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and still making $43k, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
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If you owe federal income tax and can’t pay in full, the IRS Fresh Start program can help you get caught up. Fresh Start was established by the federal government in 2011 to offer some relief to taxpayers and curb predatory practices by the IRS. Under the Fresh Start Initiative, eligible taxpayers can enroll in a payment plan to clear their tax debt or negotiate an agreement to pay less than what’s owed. Either one could help you get back on track financially if you have an outstanding tax bill. You can also talk to a financial advisor about how to manage your tax liability going forward.
Understanding IRS Fresh Start
The IRS Fresh Start program or Fresh Start initiative was established in 2011 to help eligible taxpayers manage past-due tax debts. The program is designed to aid people who don’t have a prior history of unpaid taxes and aren’t subject to a federal tax lien.
Fresh Start offers help in one of four ways:
Payment plans
Offers in compromise
Currently not collectible status
Penalty abatements
The main goal of the Fresh Start program is to help individuals and business owners resolve their federal tax debt, without being unfairly penalized by the IRS. That includes allowing taxpayers who might otherwise be subject to a tax lien to avoid that scenario.
IRS Fresh Start Tax Relief Options
As mentioned, there are four avenues taxpayers can use to get tax relief through the Fresh Start initiative. Each one is designed to meet a different type of need.
If you’re interested in seeking tax relief through Fresh Start, here’s how the options compare.
Payment plans: The IRS offers short- and long-term payment plans, also referred to as installment agreements, to eligible taxpayers. Short-term plans must be paid in full within 180 days while long-term plans may allow you up to 84 months to repay tax debt, depending on how much you owe.
Offer in compromise: An offer in compromise allows you to repay tax debt for less than what you owe. You must be able to prove a financial hardship that prevents you from paying what you owe in full. If approved, you’d need to be able to pay the IRS an agreed-upon amount to settle your tax debt in a series of periodic payments.
Currently not collectible status: Currently not collectible status allows you to claim financial hardship and temporarily pause your obligations to repay your tax debt. While your account is marked as currently not collectible, the IRS cannot take any collection actions against you and must halt any levies, including bank account levies and tax refund offsets.
Penalty abatement: When you fail to pay taxes on time, penalties and interest can accrue. Penalty abatement allows you to get some relief from penalties if you owe a significant amount of tax debt.
Who Qualifies for IRS Fresh Start Relief?
Generally speaking, you may qualify for help through the Fresh Start program if you:
Owe federal income tax
Don’t have a history of unpaid taxes
Are not yet subject to a federal tax lien
Cannot pay your tax bill in full
If you’re specifically interested in a payment plan, your ability to qualify can depend on how much you owe. You may qualify to apply online for a long-term payment plan if you owe $50,000 or less in combined tax, penalties and interest, or for a short-term plan if you owe $100,000 or less. Business owners can apply online for a long-term payment plan if they’ve filed their tax return and owe $25,000 or less in combined tax, penalties and interest.
The IRS approves Offers in Compromise on a case-by-case basis. To apply, you’ll need to have filed all required tax returns and made the required estimated payments. You can’t be in a bankruptcy proceeding and you must have filed a valid tax extension. Approval is based on your:
Ability to pay
Income
Expenses
Asset equity
The IRS encourages taxpayers to explore payment plan options before applying for an Offer in Compromise.
You’ll need to contact the IRS to apply for currently not collectible status if you’re experiencing a significant financial hardship. The IRS may ask you to file any past-due tax returns if you haven’t done so and you’ll likely need to provide documentation proving your hardship situation. Late payment penalties and interest will continue to accrue on your account.
If you receive an IRS notice for back taxes, the notice may include instructions on how to apply for penalty abatement. You’ll need to call the IRS and provide some information to the IRS about your taxes and financial situation. You can also submit Form 843, Claim for Refund and Request for Abatement if you’re not able to call.
IRS Fresh Start Advantages and Disadvantages
The Fresh Start program is designed to offer some benefits to people who are dealing with unpaid tax debt. Specifically, this program can help you to avoid:
IRS levies
Federal tax liens
Wage garnishments
Criminal penalties
Once you qualify for Fresh Start relief through a payment plan or Offer in Compromise, you’re automatically sheltered from those types of outcomes since you’re making an effort to resolve your debt with the IRS.
Claiming currently not collectible status can also create some breathing room financially if you’re experiencing an extreme hardship that leaves you unable to pay what you owe. Penalty abatement, meanwhile, can reduce some of what you owe in penalties to the IRS.
Fresh Start is not a perfect solution, however. If you enroll in a payment plan, then penalties and interest will continue to accrue until the balance is paid in full. So, the total paid can exceed more than your actual tax balance due.
If you’re interested in an Offer in Compromise, it’s also important to keep in mind that getting approved can be challenging. The IRS wants to collect as much of your unpaid tax debt as possible. If you’re unable to provide sufficient proof of a hardship that keeps you from paying in full, you may be denied. In that case, you’d have to reconsider a short- or long-term payment plan.
The Bottom Line
IRS Fresh Start can help you get out of a tax debt hole if you owe money to the federal government. If you also owe state income tax, you’d need to reach out to your state tax authority to discuss repayment options. The most important thing to remember if you owe taxes is that some action is better than none since your obligation to pay won’t go away.
Tax Planning Tips
Staying on top of your tax situation can help you avoid being hit with a surprise bill when it’s time to file your return. Talking to a financial advisor about how to minimize your tax liability can ensure that you’re paying enough to stay in favor with the IRS, without paying more than you need to. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The simplest way to avoid IRS tax penalties and interest is to pay what you owe by the filing deadline. If you don’t have cash readily available to pay, you might consider getting a personal loan to pay instead.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
Conditions for first-time home buyers looked different in the first quarter of 2023 compared with one year before, but they hadn’t necessarily improved.
Across the country, while active listings in the first quarter fell from the previous quarter, they remained significantly higher than a year ago, and asking prices held relatively steady. However, homes were listed at 5.5 times the typical income of a first-time buyer — still above what’s deemed affordable according to an long-standing rule of thumb that suggests shopping for homes listed at three times your income. And a few new challenges have further complicated things: Higher mortgage rates and tightened lending standards mean getting a favorable mortgage (or getting a mortgage at all) has become more difficult.
This quarterly analysis has examined home affordability for first-time buyers across the nation and in the most populous metro areas for the past three years. At any given time, these ambitious shoppers face unique constraints, including less robust credit histories and generally lower incomes than repeat buyers. For new prospective homeowners, understanding the challenges they might face can help inform a successful buying strategy.
Affordability remains steady
Overall affordability changed little in the first quarter of the year for first-time home buyers. Across the nation as a whole, homes were listed at 5.5 times first-time buyer income. In the nation’s 50 largest metros, they were priced 5.6 times typical first-time buyer income — up from 5.5 in the fourth quarter of last year.
Metro areas in California have historically been the least affordable in the nation. This most recent quarter had some familiar faces among the costliest: Los Angeles, where homes were listed at 11.1 times the typical first-time buyer income, San Diego (9.6) and San Jose (8.7). These were joined by Miami (8.6) and New York City (7.3). This is the first time in this analysis that the NYC metro area was among the five least affordable locations.
As for where first-time buyer money can go the furthest, just two metros had homes listed at less than three times the typical first-time buyer income. This is the second quarter in a row that Pittsburgh (where homes were listed at 2.5 times first-time buyer income) and Cleveland (2.9) had the “affordable” designation. Other close contenders included Detroit (3.2), Buffalo, New York (3.3), and St. Louis and Baltimore, both at 3.6.
Click here to see a table with affordability metrics for all locations analyzed.
First-time buyer guidance: It may be possible to find homes listed at three times your income in rural areas, small towns and a few large metros. Elsewhere, it seems quaint. Barring the ability to relocate and buy in a low-cost market, you may be shopping for homes listed for far more. An online home affordability calculator can help you set a realistic initial price range given your personal circumstances as you begin shopping. Minimizing other debt and expenses is one way to allow housing costs to comfortably take up more of your monthly budget.
Prices stall in first quarter
Prices didn’t move much in the first quarter, after adjusting for inflation. Inflation-adjusted list prices give buyers a sense of how far their money will go when they begin shopping for a home, compared with how far it would have gone in previous periods.
Across the nation’s biggest metro areas, prices stalled compared to the previous quarter, and rose very slightly (+1%) when compared with the same period last year.
The biggest quarterly price increases were seen in midwestern areas, including a 10% increase in list prices in Kansas City, and 7% increases in Cincinnati and Columbus, Ohio and Minneapolis. Just two metro areas saw prices come down more than 5% when compared with the previous quarter: Pittsburgh and Detroit, which both saw 6% decreases.
First-time buyer guidance: The list price, also known as the asking price, may not be the price you pay for a home. In 2021 and into 2022, competition meant that sellers were receiving offers well above asking price. That competition has cooled and, in some markets, an offer at or even below list price could now be accepted. The best way to know for certain what type of competition you’ll face is to talk to a few real estate agents in the area where you hope to buy. Because conditions can vary from city to city, and even from one neighborhood to the next, chatting with someone who has local expertise will give you the best idea of what to expect.
Borrowing gets more difficult in Q1 and beyond
Few first-time buyers can purchase a home outright, with cash. Most take out a mortgage. And in the most recent quarter, that got a little more difficult. Not only are buyers still trying to adjust to consistently higher interest rates, some banks reported tightening lending standards during the first quarter.
Citing the “uncertain economic outlook” and reduced risk tolerance, among other reasons, lenders across bank sizes made it more difficult to obtain residential real estate loans, according to the Senior Loan Officer Opinion Survey from the Federal Reserve. They expect the trend to continue throughout the year.
First-time buyers, who may be more likely to have less robust credit histories, could feel the brunt of this tightening.
First-time buyer guidance: Whether your goal is to qualify for the lowest mortgage rate possible or simply qualify for a mortgage, your credit score is a good place to start. Keep your score high by making payments on time, every time. Also, if possible, avoid opening new accounts in the months leading up to your house hunting — it will drag down your average account age, another important factor in your credit score. In addition to your score, lenders will look closely at your debt-to-income ratio, so paying down debt before you shop for a home loan can make your application even more attractive.
Inventory dips, but still a major improvement over 2022
Inventory is often lower in the first quarter of the year — the weather is cold and we haven’t hit the seasonal swing into homebuying season. This year, the number of active listings fell 26% in Q1 in the largest metro areas. This seasonal dip was likely exacerbated by higher mortgage rates — would-be sellers may be less likely to trade their old rate for a new one, knowing rates will remain elevated well above where they were during the buying frenzy of 2021.
That said, the number of active listings is a significant improvement over what was available last year at the same time.
Click here for a table displaying quarterly and yearly changes in available homes, by metro area.
First-time buyer guidance: The number of homes available for sale directly impacts how likely it is you’ll find a home that checks all of your boxes. And in a sparse market, if the “perfect” home is listed, there’s a good chance you’re not the only interested buyer. Before you begin shopping, prioritize the items on your wishlist according to what you cannot live without and what you may be willing to compromise on. There’s little doubt you’ll need to make some compromises; going into the process with this in mind can save you some disappointment.
METHODOLOGY
Monthly median list price and list count figures are from monthly inventory data from the Realtor.com residential listings database as of May 2, 2023. All nominal list prices were adjusted to March 2023 dollars using the U.S. Bureau of Labor Statistics’ Consumer Price Index. All monthly median figures were compiled into quarterly averages.
Changes to the Realtor.com inventory data methodology occurred with the release of the website’s February 2023 data. These changes make the current data not directly comparable with previous data releases. This means NerdWallet’s analysis of first-quarter data cannot be directly compared with our analyses of previous quarters’ data.
The median age of first-time home buyers is 36, according to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers. Estimated income for first-time home buyers was derived from the U.S. Census Bureau’s 2021 American Community Survey metro-level median household income for householders ages 25-44 — the range likely to include most first-time home buyers — and adjusted to March 2023 dollars using the Bureau of Labor Statistics’ Employment Cost Index.
Interpret metro rankings with caution. Due to margins of error in income data and rounding, there may be overlap in affordability ratios.
San Juan, Puerto Rico, is among the 50 most populous metros but was excluded from the analysis due to insufficient inventory data.
Reaching financial independence is like the holy grail of financial goals. After all, the ability to no longer need to work for money to live on is incredibly enticing.
Just imagine what you could do with that newfound freedom!
But the path to financial independence (or FI for short)is usually not glamorous. It requires hard work and dedication to make steady progress towards your ultimate goal of FI. But there are some strategies that can help you achieve your goal of financial independence.
Let’s take a look at these expert tips from people who have actually reached FI, or are seriously dedicated to the path of achieving it. You might find a tip that helps to transform your financial trajectory.
What’s Ahead:
1. Identify your “FI number”
Financial independence happens once you have enough money saved and invested to never need to work another day in your life. Although you might decide to work at a job you love, there is great freedom in knowing that you’ll never have to work another day in your life.
A big part of the financial independence journey is determining just how much money you’ll actually need to make this dream a reality. That number is your FI number, the goal that you should strive for when you decide to seriously pursue FI.
Although there are a few different schools of thought about how to calculate your FI number, this general rule of thumb is a great place to start:
Your annual expenses x 25 = your FI number
Personally, I am at the beginning of my journey to FIRE (Financial independence/retire early). I’m only a small part of the way to achieving the FI number that I have in mind.
But having mine in mind has helped me stay motivated to save extra diligently. I highly recommend nailing down what your FI number is, too. You might be surprised by how much having a concrete goal in mind keeps you focused on the savings goal — at least that has helped me so far!
2. Pay down debts that stand in your way
Net worth is a big part of achieving financial independence. When you check out your net worth, the debts you have will drag this number down.
With that in mind, David Alyor, recommends paying off your debts as soon as possible. As a lawyer in the final stretches of his financial independence, he says,
“After almost a decade of post-secondary studies, paying off student debts was painful, but I stayed the course and paid as aggressively as I could to get rid of my debts as quickly as possible.”
Alyor says the key to his success with debt repayment was to make a written repayment plan. Additionally, he regularly checked in with his shrinking loan balances to stay motivated along the way. He expands,
“If you’re finding it tough to make as much progress as you’d like, it’s time to look for a side hustle to increase your income earning potential and drop your debt even faster.”
3. Avoid lifestyle inflation
Lifestyle inflation is easy to justify. After all, shouldn’t you take advantage of the best that your paycheck can buy as it increases? If you are trying to achieve financial independence, then saying no to lifestyle inflation is critical.
James Diel, CEO of Textel, achieved FI several years ago. Diel says:
“Saying no to keeping up with the Jones’ helped me stick to a moderate budget that included saving 30% of my monthly income toward retirement and avoiding unnecessary big purchases that get in the way of saving.”
He recommends putting this into practice by:
“making some smart money moves early on in your career and keeping your budget low without severely depriving yourself of the things you want helps you maximize your investment profits, so you can save less now and still end up with an ample nest egg.”
4. Prioritize savings
Saving for a big goal is easier said than done. This is especially true when life throws expenses your way.
But it is possible to boost your savings by making those savings a priority. Or in other words, making it a point to pay yourself first.
Minesh Patel, CEO of thePatel Firm, is so close to FI that he hopes to achieve this big goal within the year. But when he was just starting his journey to FI, he says,
“The most critical way I could save for financial freedom, even as a young graduate with a tight budget, was to pay myself first.”
Paying yourself first sounds like a great idea. But what does it actually look like in practice? For Patel, the journey began by automatically investing some of his earnings into retirement savings every month. With that, he knew that savings weren’t being compromised. Patel says:
“Somehow, being aggressive with savings up-front and seeing less in your checking account during the month makes you feel like you don’t have the money to spend frivolously.”
5. Spend on what matters to you
Kara Metcalf and her husband reached FI in their mid-thirties and left corporate jobs to RV full-time. One of her tips is to spend with purpose.
“Every dollar you spend is a dollar that you’ll never get back.”
She encourages those on the path to FI to consider every purchase as a choice to exchange time being FI in the future so that you can have that item now. She says:
“That perspective helped me adopt a minimalist lifestyle and reduced my consumerism greatly. I really didn’t need another pair of jeans when there was nothing wrong with all of the others in my closet.”
Before you make a purchase, make sure that the item is worth it to you. You’ll have to decide for yourself what is ‘worth it.’ But taking the time to think through your purchases could lead to a decrease in spending.
6. Boost your income
The savings you create must come from the difference between your spending and your investing. Unfortunately, frugality will only get you so far.
At some point, you may need to look at the other side of the equation and boost your income to increase your savings.
Sam Zelinka, the creator of Government Worker FI, is 86% of the way to his FI goal. For his family, increasing their income was a big part of working towards financial independence.
“We’ve primarily raised our income by earning promotions in our traditional job. At the same time, we both have some small side hustles that we have used to help pay off our mortgage more rapidly.”
7. Take care of yourself along the way
It is easy to let your determination to achieve FI push you beyond your limits. But pushing yourself too hard could lead to premature burnout.
Avner Brodsky achieved financial independence through entrepreneurship. He recommends taking the time to understand your limits and learning how to play within these limits. Brodsky says:
“Understanding your limitations and being okay with admitting weakness will only benefit you in your journey of learning. Taking care of your mental health is essential when working toward FI because if you are struggling, your work will struggle.”
Take whatever actions you need to take care of yourself along the way. Remember, it is absolutely okay to slow down on your journey. Don’t push yourself beyond a healthy limit.
8. Invest for the future
Adam Garcia, the founder of the Stock Dork, is well on his way to financial independence. His tip is to consider a smart investment strategy that goes beyond savings. Garcia says:
“The idea of financial independence can easily turn on its head if you follow it blindly. For most people, the most intuitive way to start is by scrimping and saving as much as they possibly can – some even manage to set aside half of their earnings every month!”
But simply saving won’t supercharge your path to financial independence. Garcia expands:
“If you want an efficient FI strategy, you need to complement your saving efforts with investment. In other words, for every penny you save, it’s good to invest another penny so that it could eventually turn into two pennies.”
For Garcia, this concept is what he calls:
“having your cake and nibbling at it, too. It’s only possible and viable if the cake is growing at a sufficient rate that your nibbling will never cause it to disappear.”
9. Don’t try to sprint to the finish line
Financial independence is a major money goal. In most cases, it will take years (or maybe even decades) to achieve.
Anthony from The Investor Handbook wants to remind us that:
“personal finance is not a sprint, it’s a marathon.”
When you are just getting started, the difference might not be noticeable. But over time, you’ll see real progress.
As you approach your journey to financial independence, Anthony recommends thinking about the journey like working out.
“A single session working on your abs won’t give you a flat stomach, but keep at it for ten years, and you’ll definitely be rocking that six-pack.”
Imagine where you could be in ten years by choosing to make progress towards your FI goals with every paycheck. The commitment to FI could transform your life through small efforts over time.
10. Focus on your own journey
Throughout every facet of our lives, it is easy to get caught up in comparisons. That holds true for personal finances, as well.
Kara Metcalf (waiting on link) recommends focusing on your own journey. She says:
“If you compare your life to your friends, family, or coworkers, you’ll usually feel deprived or lacking because you will be saving money rather than going on extravagant vacations, buying a new wardrobe each season, or eating out every day.”
For Kara, she also says that:
“In my 20s, I hated eating my packed lunch every day while my coworkers were going out to lunch. But in my 40s, those friends still get up before the sun rises every day to commute to full-time, oftentimes soul-sucking jobs. I wake up naturally (without an alarm) and spend my days exploring beautiful new places every day.”
Remember that everyone’s journey is different. Make it a priority to focus on your own goals, and stop comparing your life to others.
Summary
The path to financial independence will look different for everyone. As you navigate the journey, tailor your spending patterns to strike a balance between your current needs and your future desires.
What steps are you taking to achieve financial independence? Let us know in the comments!
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.
I have recently become fascinated by the idea of Billionaire Morning Routines.
The premise is that if you want to be successful in life, then you must wake up at an early hour and dedicate time or energy towards your goals. I am still not sure how this translates into a morning routine for me, but what I do know is:
You don’t need much money to become wealthy.
Your mindset can drastically change the trajectory of your day and life.
Sometimes it can feel like the odds are stacked against you. But there’s always hope.
Personally, I have found success by following this simple morning routine that will help get me through each day and set my path for success.
Successful millionaires have certain habits that can help you be more productive each and every day! While not everyone aspires to be a millionaire, these habits can still be useful for anyone looking to increase their productivity levels.
In this post, we are going to dig into billionaire morning routines and look at some millionaire morning routines as well.
Is a cup of strong coffee enough? Or do you need to layer some more key habits of billionaires on top?
So, if you’re looking for some tips on how to be more productive, following in the footsteps of some successful millionaires is a great place to start!
Remember these are the people making 10 figures…
What is a Billionaire Morning Routine?
A Billionaire Morning Routine is a set of habits that wealthy individuals use to start their day in order to increase their chances of success. This usually involves waking up early, exercising, eating a healthy breakfast, and spending time on personal development.
These routines are a set of designated activities that can help you stay on track. A millionaire or billionaire morning routine helps you organize your day from the moment you wake up until the time you leave for work. The difference between what you’re doing and a millionaire morning routine is the way you manage your time.
Every day is different for billionaires, but their morning routine should always be prioritized by their lifestyle needs first.
A billionaire morning routine should focus on managing your time in a way that allows for consistency with priorities of lifestyle needs and productivity goals.
Why is a Millionaires Morning Routine or even a Billionaires Important?
The reason a Millionaire’s Morning Routine is important is that it sets the tone for the rest of the day. If you start your day by working on your goals and taking care of yourself, you’re more likely to have a successful day.
Don’t you want to maximize your time and get the most out of your day?
These are the key benefits of following a billionaires morning routine:
Stay focused on the important tasks at hand each morning.
Help you better prioritize your time in the morning and throughout your day.
Increase your productivity all day long.
Reduce the stress you feel each morning.
Boost your energy levels throughout the day.
In addition, a millionaire or billionaire’s lifestyle is associated with a number of benefits, including increased happiness, improved focus, and more time to accomplish goals.
There are many reasons why having a billionaires morning routine, or even a millionaires morning routine, is so important.
A millionaire morning routine is empowering because it gives you control over your life–and who doesn’t want that?
Billionaire Morning Routines
There are a lot of different opinions on how to achieve success in life, but one thing is for sure: you have to get up early if you want to be a millionaire.
You have heard the saying, “the early bird gets the worm.”
They use these routines to set themselves up for success and make the most of their time. Plus there are a few key things that all millionaire morning routines have in common.
This allows them to get centered and focus on what they want to achieve.
The billionaires’ morning routines are a good place to start when trying to improve your own routine.
Billionaire morning routines are the first place to start when trying to change your daily habits for the better. These practices provide a foundation that you can build off of as you work towards reaching your goals.
#1 – Wake up early
Wake up early to get more done in the morning.
Go to bed at a reasonable time so you can sleep well and be refreshed for the day.
Here are some tips to make waking up easier:
Have a wind-down process before bedtime.
Switch off screens an hour or two before you plan to go to bed so you sleep easily when the sun rises at 5 am.
Wake up five minutes earlier than you do now and work your way up until you wake up an hour earlier.
Waking up early is a simple change that anyone can make!
To get up early, go to bed earlier. The key to getting up early is going to bed early and having a wind-down routine so you sleep easily when you get into bed.
#2 – Meditate
Meditation can aid in concentration, creativity and reduce stress.
There are a variety of ways to meditate, including sitting quietly and focusing on your breathing.
When it comes to improving productivity, many people think that meditation is a waste of time. However, this could not be further from the truth.
In fact, there are a number of reasons why you should meditate every day:
Lowers your stress levels
Helps you focus
Improves creativity
Provides answers to unexpected problems
Helps make decision making easier
Keeps you less distracted throughout the day.
The hardest part of meditation is getting started, but it’s worth it if you have the discipline to stick with it for even 5 minutes a day or do some other form of relaxation therapy before falling asleep at night.
It doesn’t matter how long you do it, as long as you’re getting the benefits from it.
#3 – Glass of Water
Drinking water in the morning can improve general health and well-being.
Celebrities including Kim Kardashian, Beyoncé, and Cameron Diaz have touted the benefits of drinking water regularly.
Water is essential for life. In fact, our body is composed of about 60% water. We lose water every day through sweating, breathing, and urination, so it’s important to replenish our fluid intake. Drinking a glass of water in the morning can reduce calorie intake and improve mental performance.
Drinking water in the morning can help you stay alert, make you more energetic, and provide the necessary fuel for your brain. It’s important to drink water first thing in the morning because it hydrates quickly and fuels your body. Drinking water is also a great way to hydrate for a long day of work or play later on that day.
#4 – Exercise
The wealthiest people in the world begin their days with some exercise. They choose to perform this activity in the morning so that it doesn’t get forgotten among all their other daily responsibilities.
Richard Branson, a British billionaire, exercises every morning without fail.
Exercising boosts your confidence, has positive effects on your mood, and helps them focus throughout the day.
The key is to find a way to incorporate exercise into your routine each day. Find an exercise that works for you and stick with it.
Wake up early and exercise. Exercise is a great way to start your day off on the right foot. It gets your blood flowing and helps you wake up mentally and physically. Plus, it’s a great way to get in some extra fitness goals for the day!
#6 – Read a book
Reading can boost cognitive activity in the brain. This means that you’ll be more alert and prepared for whatever challenges the day throws your way!
Also, reading before bed can help calm the mind and prepare the body for sleep.
# 7 – Eat a healthy breakfast
Many successful people have made breakfast a key part of their morning routine.
Starting your day off with a filling meal can help you stay focused, give you more energy, and help you concentrate on the work you need to accomplish later in the day.
Breakfast is the most important meal of the day, and it’s especially important to eat a healthy breakfast. Eating breakfast helps your body and mind function at their best. It can give you energy for the day ahead, help you focus, and provide necessary nutrients for your brain.
There are many different types of healthy breakfasts that you can try. Some people like to have eggs, others prefer yogurt or granola. Kelly Ripa has coffee, yogurt, and granola as a breakfast routine; Barack Obama has eggs, potatoes, and wheat toast. Reese Witherspoon’s go-to green smoothie recipe has been her breakfast routine for the last nine years. Idris Elba keeps it simple with toast during his morning routine.
No matter what you choose to eat for breakfast, make sure you drink plenty of water as well.
On the flip side of the coin is fasting during breakfast and maybe even lunch.
#8 – Plan your day the night before
Plan out your day ahead of time. One of the best ways to ensure that you make the most of your time is by planning out your day ahead of time. This will help keep you organized and focused on what’s important.
Determining when during the day is the best time to tackle your toughest jobs can help reduce stress and increase performance.
Journal your thoughts, plan your day, and focus on what you want in life.
Goals don’t happen unless they are written down and acted upon.
One way to make sure you start your day off on the right foot is by planning your day the night before. This way, you can wake up knowing what you need to do and have a plan in place for how you’re going to get it done.
Reflecting in the evening about what you want for yourself can help solidify your intentions and give them power by writing them down for review each day.
#9 – Plan the day ahead
Others prefer to plan their day in the morning.
Getting out of bed and putting your best foot forward EVERY SINGLE DAY is important for having a successful morning routine.
By planning out your tasks, you will be better prepared to face any challenges that come your way during the day.
To help with this, try creating a morning routine that fosters a healthy mind, body, and spirit. This will get you ready to operate at peak performance.
In order to be successful, you have to know your schedule so you can plan time blocks for specific activities. There are only so many hours in a day – you must make sure they are well spent.
#10 – Create your routine
Creating a routine for your morning will help you accomplish more with your time, starting your day off on the right foot, and it will also give you a chance to start your day off with joy before any hustle or stress begins.
Some of the benefits of a millionaire morning routine include stress-free, accomplished things, and increased levels of happiness.
However, remember that the Millionaire Morning Routine is not the only one out there! You can start your day by hitting the ground running but don’t copy and paste a billionaire’s exact routine. Billionaires set their days apart with goals, so try our goal-setting worksheet to get a head start!
There are many factors to consider when deciding if a millionaire morning routine is for you, such as the goals you want to achieve and your schedule.
However, you need to create a routine that works for you. Below, you will see some samples from billionaires, but at the end of the day, it has to work for you.
When you have something to look forward to at the beginning of each day, it helps reduce stress and makes you happier. It’s also a way to get your day started on the right foot.
What time does the average billionaire wake up?
There is no average billionaire wake up time because there is no average billionaire.
However, it is well known that most millionaires and top executives wake up early in the morning. Some may be up by 4 am while others start their days between 6-7 am.
This gives them plenty of time to get ready for their day and start working on their goals.
Waking up early is a great way to start your day. You have more time to get things done, and you’re less likely to be stressed out. In addition, it’s a good opportunity to meditate and clear your mind before getting started on your work.
Billionaire Morning Routine Examples
There’s no one right way to have a successful morning routine, but many millionaires and billionaires have habits that they credit with helping them achieve their goals.
Others include setting priorities for the day and planning ahead.
There are many different morning routines that billionaires follow in order to achieve success. Some of these routines include waking up early, exercising, and reading. Others involve spending time with family and friends or networking.
No matter what a billionaire’s routine may be… the most important thing is that they stick to it and make sure they are taking steps each day to move closer to their goals.
These billionaires have different workdays, but all follow a similar daily routine to keep their minds and bodies in check.
Elon Musk Morning Routine
Elon Musk is a well-known entrepreneur and investor. He is the founder, CEO, and CTO of SpaceX, co-founder of Tesla Motors, and chairman of SolarCity. He also has a keen interest in artificial intelligence.
First of all, sleep for Musk is minimal with him going to bed around 1 am and back working by 7 am.
Musk has a routine that includes 5 minute blocks. In each block, he does one thing that is important to him. This could be making calls, sending emails, or working on a project. By doing this, he is able to focus on one task at a time and avoid distractions.
Musk’s routine also includes planning out how long it will take him to complete tasks throughout the day so that he can be sure not to waste time on tasks that are unnecessary or take too much time. This prevents him from feeling rushed and allows him to focus on the most important tasks. He makes a solid plan for his day in order to prioritize what he needs to accomplish – even though it may not go as he planned.
Kylie Jenner Morning Routine
Jenner wakes up early which is credited to her mom as setting an example for rising early. This self-made billionaire is not sleeping in at all, especially with her daughter.
The most intensive part of her morning routine is getting herself glammed up for the day. She will not eat breakfast without her makeup on. Workouts? She is known to work out 1-2 times a day depending on her schedule.
Finally, she eats breakfast and starts working on her business.
Waking up early and exercising sets the tone for the rest of her day and allows her to get things done efficiently.
Jack Dorsey Morning Routine
Jack Dorsey is the founder of Twitter and Square. He has a very unique morning routine that some people might find inspiring.
He wakes up at 5:00 am and spends his early hours on personal care.
First, Dorsey starts off by taking an ice bath to shock his system. This supposedly boosts mental confidence, which is necessary for running two major tech companies.
After the ice bath, he spends 60 minutes meditating in silence. This prepares him for his five-mile walk or jog to work. He skips breakfast, which many people find controversial.
He wraps up his day by journaling and reflecting on what went well and what could be improved.
Warren Buffet Morning Routine
Let’s be honest… many people look at Warren Buffet for inspiration and guidance. He is a wealth of knowledge that has lived throughout many of the toughest points in our nation’s history.
Billionaire Warren Buffet reportedly wakes up at 6:45 am and drinks a can of Coke. Then, he heads to the local McDonald’s for breakfast.
Very opposite of what most people would assume. But this morning routine has served Buffet well for years.
Warren gets down to business. He explains that most days, he just sits in his office and reads finance-related materials all day – specifically related to company financials, market materials, financial journals, and investor reports.
After leaving the office, Buffet goes home and might pick up fast food from time to time, but typically eats at home later in the day. A little reading before bed around 10 pm.
Oprah Winfrey Morning Routine
Oprah Winfrey is a famous American talk show host and actress. She wakes up at around 8:00 AM every day, brushes her teeth, lets the dogs out, and then starts her morning routine.
She places importance on reading at least five cards from her 365 Gathered Truths box each morning. More than likely she started with saying any of these money affirmations before she found her fame.
Oprah has a routine that includes a couple of hours spent on spiritual exercises, followed by an hour of low-impact strength-training program. She also spends time with her family and friends before finally starting work in the afternoon.
Jeff Bezos Morning Routine
Jeff Bezos has a very strict daily routine that he follows. He wakes up early (somewhere between 5:00 am -6:30 am) and begins by reading the news. After that, he spends time with family, eats breakfast, and does various activities that are not work-related.
His first business meeting starts at 10 am normally working on Amazon business matters. He has business meetings and visits fulfillment centers in the afternoon, but avoids important decisions late due to fatigue.
Sleep is important to this entrepreneur and goes to bed earlier than most.
What is the most successful morning routine?
The most successful morning routine for many people includes a mix of habits that help them start their day off on the right foot. This may include waking up early, drinking a glass of water, eating a healthy breakfast, and spending some time in prayer or meditation.
In order to be successful, it’s important to have a morning routine that incorporates good habits.
If you struggle with habits, then I highly recommend you read the book Atomic Habits. These habits are easy to incorporate into your own life and will help you accomplish more tasks and live like a billionaire.
How long does the 1 billion dollar morning routine take?
The 1 billion dollar morning routine was created by Jim Kwik, a YouTube creator.
It takes at least one hour to work through his 1 billion dollar morning routine.
Here are the key principles for Jim Kwik’s 1 billion dollar routine (source):
Recall your dreams
Make your bead
Drink water and take supplements
Focus on breathing
Meditate for 15-20 minutes
Move the body for 1-2 minutes
Take a cold shower
Enjoy a cup of tea
Journal
Create 3 lists: to-do list, to-be list, and to-feel list
Read for 20-30 minutes
Make a brain smoothie
Participate in brain training.
Start with the most difficult (and important) task
Self-care, self-love, and setting a vision and direction for the day are essential components of this routine. And don’t forget about hydration! A glass of water is a great way to start your day off on the right foot.
Journaling is another important part of this routine. It allows you to check-in with yourself about your stressors and how to navigate them. Consider implementing a few of these steps into your routine to see how they make you feel.
The 1 billion dollar morning routine may not be feasible for everyone, but some of the steps included are still worth considering (particularly the one about having a plan). Or moving some of the activities to other parts of the day.
What are the habits of a billionaire life?
In order to achieve success in life, it is important to emulate the habits of a billionaire. This may seem daunting at first, but if you take a closer look at what these individuals do on a daily basis, you will find that many of their habits are actually quite attainable.
For example, many billionaires are avid readers and they make sure to read something every day. They also have a strong focus on personal finance and know how to manage their money well. Additionally, they understand the importance of taking care of themselves both physically and mentally. All of these habits are important for anyone looking to achieve success in life!
These types of people are the opposite of I don’t want to work anymore.
What will your productive morning routines look like?
There’s no “right” way to have a productive morning routine – as long as you’re committed to it and conforms to the same principles.
For example, many successful people have different routines but they all commit to following them. This may include things like personal commitment, engagement, team building, and productive motion.
It’s also key to be flexible with your routine so that you can adjust when necessary. For instance, if something comes up or there’s a change in your schedule, you’ll be able to adapt without too much trouble.
The important thing is that you make time for the things that are important to you and that help you achieve your goals.
This might include exercise, breakfast preparation, or “mindful living.”
Whatever it is, make sure it works for you and that you’re actually going to stick with it!
What will go on your Billionaire Morning Routine List?
Most morning routines of millionaires and billionaires weren’t created overnight; they’re crafted over time. Same with buying their mansion.
So don’t worry if you don’t get everything right the first time around–just keep working at it and you’ll see results soon enough!
Get out of bed and put your best foot forward EVERY. SINGLE. DAY.
Each person’s journey to greatness will be unique, but by following the examples set by these successful individuals, you’ll be on your way to achieving anything you want!
Having a millionaire morning routine means that you start your day stress-free. It also helps you achieve your goals. The benefits of the millionaire morning routine vary depending on the schedule and personality of each individual.
But, in general, incorporating a project into your morning routine can help you feel more in control of your life, boost energy levels throughout the day, and make healthier choices.
In fact, check out these millionaire quotes.
The habits of successful millionaires can be applied to any area of your life for increased success.
Finding your own productive morning routine is better than leaving your luck up to left hand itching.
Know someone else that needs this, too? Then, please share!!
You want to started investing but aren’t sure what steps to take. No worries. Let me walk you through the basics and you’ll soon be on your way.
Before we start, you should know that the stock market offers a great way to grow your wealth. However, with the reward of earning 5%, 8%, or even 12% per year on your investments comes with the risk of losing money.
That means the value of your investments may drop one year. It may also take several years to recover from that loss. If you aren’t ready for the risks, then investing is not for you.
Think about These Issues Before You Start Investing
Investors are urged to invest for long term gain. This is due to changes in the market (those gains and losses you will see).
If you will not need your money for a minimum of 5 – 7 years, then you are the perfect candidate for investing. The between now and when you need your money is called the time horizon. For example, if you are investing toward buying a small cabin on the lake in 15 years, then your time horizon is 15 years. However, if your child will be heading off to college in 4 years, your time horizon would be 4 years.
Your time horizon is not the only thing you should know. Ask yourself a few other questions as well:
Am I investing for retirement, education, or another purpose?
How much do I have to invest, and is that money available in a lump sum, a regular monthly amount, or both?
Am I wanting to spend my time managing these investments?
How much money do I want to spend in investment fees?
What amount of fluctuation from the U.S. stock market performance am I willing to accept?
Your responses will guide your investing decisions, not only for the types of investments but also the brokerage firm you choose.
Consider Investing for Retirement with Low-Cost Index Funds
Let’s say you are investing for retirement, have an initial investment of $3,000. The plan is to add $100 each month to your account. You goal is to spend little time managing your investment. In addition, you would like to closely match U.S. stock performance (either the S&P 500 or the entire market). What should you do?
You can open an IRA with an online brokerage firm such as E*Trade, Fidelity, Schwab, TD Ameritrade, or Vanguard. To get started investing, you will need to fund your account. Funding is how the money moves from your account to your investment accounts.
In most cases, funding is arranged by setting up a link between your checking account and the brokerage account, and making transfers. The initial process can take a few days but after the connection is established, you can move funds to purchase shares of stocks, mutual funds, or ETFs.
Next, purchase either commission-free, market-index exchange-traded funds (ETFs) or no-load, no-transaction-fee market-index mutual funds. For example, you can buy shares in Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) for a minimum initial investment of $3,000 and additional investments of at least $1. You will want to make sure you sign up for paperless statements so you can get the $20 account fee waived.
Or, you could purchase shares in commission-free Schwab U.S. Broad Market ETF (SCHB) for $1,000 (or any multiple of its market price, which is about $50 at this writing); and make additional minimum purchases that equal the fund’s share price.
Buy Individual Stocks If You Are Comfortable with Greater Risk
Alternatively, you may be interested in growing your wealth more aggressively and are willing to accept risks (and losses) associated with potentially greater rewards. You have plenty of time to spend evaluating and selecting individual stocks plus you don’t mind paying transaction fees associated with the purchase and sale of stocks (or sector or specialty mutual funds or ETFs).
Again, you could open a regular brokerage account with any of the online brokerage firms. You might look at investing with Acorns, E*Trade, Schwab, or Fidelity. Keep in mind that each on-line firm has minimum investment thresholds that you will need to meet. You could choose stocks on your own or find ones using screening tools available on each firm’s website.
After determining what you’d like to buy and the approximate quantity, you’ll want to set a price to indicate how much you are willing to pay for shares and then place your order. Fees to place orders typically run about $9.99 or less.
Decide Whether Innovative Brokerage Firms Are Right for You
You might also consider investing with a newer firm, such as Betterment, Motif Investing, or Loyal3; these companies all have unique approaches to serving customers that may or may not meet your needs.
Betterment makes investment decisions on your behalf and charges an account management fee rather than individual transaction fees; you may like this approach if you don’t have time to invest on your own. Motif Investing offers fee-free investing through its Horizon Motifs, which are comprised primarily of market index ETFs, along with its specialty motifs that trade for a flat $9.95 fee. Loyal3 has a totally fee-free platform in which you can buy shares (or even fractional shares) of certain stocks with an investment of as little as $10.
If you are ready, now is the time to get started in investing, regardless of whether the market is up or down today. The sooner you start, the more your money can grow.
Julie Rains is a freelance writer specializing in personal finance, mortgages, and investing. She writes for her own blogInvesting to Thrive as well as other media outlets including Wise Bread and Loans101.
Julie holds a Bachelor of Science in Business Administration with a concentration in Finance from The University of North Carolina at Chapel Hill. Julie started investing soon after graduation and has continued to invest and learn over the past 20+ years. In her free time, she enjoys cycling with friends and spending time with her husband and nearly grown sons.
A Coverdell savings account, or a Coverdell Education Savings Account (ESA), is an investment account that is tax-free when used for qualified higher-education expenses.
Assets in Coverdell accounts can be transferred to other family members if the beneficiary doesn’t need the money (whether because of scholarships or other circumstances) and many find the main benefit is that these funds can also be used for K-12 school-related expenses. The biggest drawback is that you cannot contribute more than $2,000 per year, even across multiple accounts.
Here’s more:
Coverdell ESA Basics
How to open: The Coverdell ESA is opened with a brokerage or mutual fund company and its assets are owned by either the parents or the student.
Limits: Contributions are phased out at incomes between $95,000 and $110,000 for single tax filers, $190,000 to $220,000 for married filers (though there are some ways around these limits). Contributions can be made until the student turns 18 and must be withdrawn by age 30. The deadline to open a Coverdell ESA: April 15.
Related: What the IRS says about Coverdell accounts
Investment choices: Whatever is offered by the company with which you’ve opened the account.
Impact on financial aid: Depends on the account owner. Assets owned by a student have a greater negative impact on aid eligibility than assets owned by the parents, though this impact is lessened if the student is still a dependent of the parents.
Related: the savings calculator at Savingforcollege.com. It estimates the total cost of college based on your child’s age and tells you how much you need to save each month to reach that goal. The calculator has plenty of flexibility that allows users to fiddle with the assumptions, and it can even help look up the costs of specific colleges.
Why choose the Coverdell: If you want maximum control over your investments in terms of what you can buy and how often you transact, this is the education savings account for you. Also, unlike with 529 plans, Coverdell assets can be used for elementary- and high-school expenses. However, given the low contribution limits, saving only in a Coverdell will likely not be enough.
Now what? The good news is you don’t have to choose just one of these accounts. You can contribute to each, if you have the resources and it makes sense for your situation. For example, you might participate in a prepaid plan to manage the future costs of tuition, then max out the Coverdell (because you enjoy picking individual stocks, an investment choice not available in 529 plans) to help cover room and board, and contribute to a 529 savings plan for additional savings. Of course, such a strategy would require a lot of cash; for those seeking a place to contribute a few hundred dollars a month, the 529 savings plan is the most popular choice.
Finally, attempt to persuade your kids to choose a degree that has greater chances of paying off (unlike these degrees). Yes, choosing a career you enjoy is important, nearly crucial. But college is an investment, and like every investment, there should be a cost-benefit analysis. Going into a huge amount of debt for a low-paying career makes paying for a car, paying for a home, raising a family, and taking vacations — also important factors in life satisfaction — much more difficult.
Save more, spend smarter, and make your money go further
Whether you know it as a snowpocalypse, a snowmageddon, or the ever-popular “oh no, not this again,” there’s no denying that giant snowstorms are a pain for just about everybody who has to deal with them.
And it’s not just because snow is cold. It’s also because a snowpocalypse can cost you a good deal of money.
If you live in the Northeast, Central North, or anywhere else that snow is prevalent, here’s what you spend each winter, on average … and how to deal with snow more cheaply.
Snow Shovels
Here’s an investment few Floridians need to worry about. Everybody who gets snowed upon has held many a shovel in their life, and has likely purchased many over the years.
No one shovel is terribly expensive, mostly running between $15 to $30.
Unfortunately, even the best shovels don’t last forever, especially if you’re dealt the “heavy slushy snow” card, so you’re likely buying at least one new shovel every winter.
After all, if all you have is an old bent shovel, you might as well scoop away the snow with your bare hands.
Scrapers
No northern vehicle is complete without at least one brush/scraper combo floating around the backseat just waiting for its inevitable use.
Most run between $5 and $20, but you always need to prepare for having to buy a new one.
Brushes bristle, scrapers lose their teeth, and suddenly you can’t get to work on time because you didn’t spend five bucks on a new scraper.
Nobody likes that, least of all your boss.
Snowblowers
If you don’t want to deal with the back-breaking work of shoveling, you can always purchase a snowblower.
Unfortunately, a decent one can run you about $800, which is the price you pay for convenience.
Luckily, you can also purchase a power shovel for far less, around $100.
They don’t chuck the snow as far away from you as a snowblower will, but if your only goal is to clear a small driveway, it might be worth the purchase.
Accidents
Though towns do their best to clear the roads during a snowmageddon, sometimes they’re just plain icy and slippery.
And that’s when bad things happen.
If you’re driving along and suddenly start sliding every which way, only stopping once you crash into a heavy snow bank, your day has just been ruined, as has your bank account.
Even a small bit of bumper damage can run you $1000, while a totaled vehicle could cost you $15,000, especially if the insurance company invents a brand-new excuse to not help out.
Heating Costs
Unless you’re fine with shivering violently until April, chances are you’re going to turn the heat up during a snowpocalypse.
Doing so will keep you toasty, but also leave your wallet empty.
Even with a multitude of ways to save on heat and lower your bill, you should still expect to pony up just under $1000 come wintertime.
Though it’s a rough estimate, and everybody’s mileage can vary, the average cost of dealing with a snowy winter is about $2500. You can cut this number down by preparing your home, reducing heating costs, and taking advantage of other wintertime hacks.
As you can see, a snowpocalypse isn’t just a simple matter of “shovel, salt, and go.” There’s a lot to think about, especially once the falling white stuff compromises your bank account.
Do you have your own Snowpocalypse savings tip? Share it with the community below.
Mary Hiers is a personal finance writer who helps people earn more and spend less.
Save more, spend smarter, and make your money go further
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Today, I have an inspiring story from a blogger. Cassie paid off $10,000 in debt in 10 weeks and shows how you can make this a reality too. Enjoy!
In September of 2015, my wife and I officially tied the knot and, as perfect as it all was, when we returned to our home after our honeymoon we had to take a serious look at our finances. What we found shocked us.
We had known from the get-go that we both had student debt. We both attended a private, Christian college where we met and we both continued on to receive our master’s degrees. While we knew we had student debt, we had always assumed that we would simply pay the minimum until it was gone and that would be that.
What did we find when we did the math? It turns out that my wife and I owe a grand total of almost $200,000 in debt (OUCH!). Even worse? The minimum payments don’t even begin to cover the interest which means that no matter how many payments we make, we will never escape from this debt’s grasp.
Unless…
One of my favorite Dr. Seuss quotes comes from the Lorax, “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”
Related posts:
Now, I know that this quote is referring to saving the world, but I think it’s applicable to paying off debt too. Debt can be all-consuming and debilitating, but unless you care about fixing it, it’s not going to get any better.
The thing with debt is that unless you truly work toward eliminating the problem, the problem is not going to go away. It’s certainly not an easy-fix sort of thing. Unless you truly care about getting the weight of debt off your shoulders, you’ll be trapped.
My wife and I do care about paying off our debt because we realize how much it is holding us back – we are unable to afford a house, put money into retirement, or start a family.
That’s why we made the decision to begin aggressively paying off our debt. Do you know what happened when we made that decision? We began crushing the debt that had been, only recently, crushing us.
In our first ten weeks of debt repayment, we paid off a whopping total of almost $10,000! How did we do it? Well, it’s simple: create a budget and a plan, develop a side income, and learn how to live frugally.
Related tip: Check your credit score with Credit Sesame for free!
Creating a Budget & a Plan
Developing a budget was the first step. My wife and I spent an entire month simply monitoring our spending without changing our habits. Why did we do this? Well, we wanted to see where our money was going.
What we realized is that our money was going everywhere. We were spending outrageous amounts of money for things that we didn’t even realize we were getting! Sure, some of it was important (food, certain bills, etc.), but there was so much that was unnecessary. The couple of dollars here and there for snacks and beverages (when we have these at home), the fast food or restaurants in place of dinner at home, or the subscriptions that we had forgotten we had that were still charging us monthly.
Once we realized that our money was everywhere, we knew we needed to put it into place. We created an excel document to organize our income, budgets, and debts (I love organizing things). We determined what we needed to keep to survive, what the minimum payments for our debt were, and other costs we absolutely have to have.
We wrote it all down and made important decisions as to how much we would spend on food, how much we were willing to pay for gas, etc. This was our budget. If we followed our budget, we knew we could put a significant amount of extra cash toward our debt (which is exactly what we want to do).
The hardest part about developing a budget, though, is not actually the planning, but the sticking to it. The problem we have is that when we try to follow our budget with our debit cards, we somehow always end up off. This time, we knew that we had to do our budgeting right. We pulled out some business envelopes, withdrew some cash, and began using the cash envelope system for our budget.
Almost like magic we were able to stick to our budget – better than ever before. The reality is that plastic money is easy to overspend, but when you have cold, hard cash in your hands, it’s hard to not notice it leaving. When it’s gone, it’s gone.
Developing a Side Income
The second step we took toward aggressively paying off our student debt was to develop a source of income on the side. For me, that meant blogging. I worked as hard as I could to develop a blog that focused on my goals, that inspired people, and that helped people to reach their dreams of becoming financially free.
My wife and I both work with a caterer as we are able in order to earn a little extra money. Each event lasts around six-seven hours and pays us each $100, but we can only score around one to three events per month. Jobs such as dog walking, house / babysitting, and even renting out space are great ways to make a few extra bucks within your community.
We also have started freelancing and taking up positions in the virtual assistant world. My wife has started working longer hours and taking “on-call” shifts. We sell items from our home that we no longer need and we utilize companies that offer legitimate ways to make money online. I test them out and share them on my blog for my readers to see and utilize.
Basically, we are doing whatever it takes to earn an extra income and then ensuring that the entirety of that income goes straight toward our debt repayment goals.
Related tip: You can answer surveys and make extra money! The companies I recommend include: American Consumer Opinion, Swagbucks, Survey Junkie, Pinecone Research, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Learning How to Live Frugally
Earning an extra income can only get you so far if your spending is too high. Therefore, we also spent a lot of time learning how to live frugally and sharing it on the blog. We are learning new ways each and every day to reduce our spending and live our lives to the fullest on a frugal budget.
Some of our favorites in the kitchen include baking our own bread (which saves us over $250), making our own pasta (which saves us over $100), growing our own vegetables (which saves us hundreds), and learning how to can (which saves us tons)! While each of these individually may not seem like a lot, when added together the savings can be incredible.
The frugal living tips don’t have to end in the kitchen, though. My wife and I are learning great ways to save thousands per month by cutting the cord on cable and other subscriptions, reducing our cell phone bill, and even finding new ways to entertain ourselves that don’t cost money.
As Dave Ramsey so eloquently puts it: “Live like no one else, so later on you can live like no one else.”
Living a frugal lifestyle means making cleaning supplies and hygiene products instead of buying them, making food from scratch instead of eating out, and playing board games instead of going to the clubs. It’s a lot of cutting now, but by living like we are broke, we are putting money toward debt so that later we can live the way we want to live.
How We Paid Off Almost $10,000 in Debt in 10 Weeks
Ever since we started paying off our debt aggressively, we have been competing against ourselves. When we paid off $3,000 in one month, we knew that we could do better the next month and so we did.
It took ten weeks before we had paid off almost $10,000, but the next ten weeks will be even better, we can assure you of that. How? Because we are working as hard as we can to budget, to be frugal, and to earn extra money – no matter what it takes.
The ultimate goal here is to pay off our debt as quickly as possible and that’s exactly what we are doing. We are not putting a date on our debt repayment because we don’t want to limit ourselves to that date. We want to work to surpass any dates that could have been put down and by sticking to our budget, earning side incomes, and living frugally, we can do it.
Author bio: Cassie Jahn is the author of a DIY blog devoted to living life to the fullest on a frugal budget. DIY Jahn began to help Cassie to stick to her plan to aggressively pay off her student loans, in hopes to inspire others to do the same.
How much debt do you have? Are you trying to eliminate it?
If you are new to Making Sense of Cents, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:
Find ways to make extra money – Here are over 75 different ways to make extra money.
Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna (this is the one we have) and enjoy free TV for life.
Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $100,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.75 per month plus you get a free domain if you sign-up through my tutorial. Also, I have a free How To Start A Blog email course that I recommend signing up for.
You should know your credit score – Check your credit score with Credit Sesame for free!
Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, American Consumer Opinion, Pinecone Research, Opinion Outpost, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
You can save money and get cash back at the grocery store. Read my review and learn how to here.
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back too!
Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!