Hello! Today, I have a debt payoff story from Alyssa Hunt. Alyssa is the creator of TheLifeHunt.com a blog that helps busy hustlers work towards business success and financial freedom all while managing full-time jobs. She is currently working towards a Master’s degree in English Literature and she teaches writing composition to university freshmen.
When I graduated college in 2014 with my undergraduate degree, I had racked up $30,000 in student loan debt. During my four years of college, I didn’t think much of taking out a loan here and there.
After all, I needed a way to pay for tuition.
Once the excitement and celebrations of graduation ended, I felt a mound of debt on my shoulders.
It was then that I decided to focus all my attention on paying off my debt as fast as I could. And by fast, I meant that I wanted to have all $30,000 paid off in exactly 2 years after receiving my first bill.
Setting my goal of 2 years felt entirely achievable to me, but to everyone else, it was crazy and impossible. I don’t believe a single person thought it could be done. So many people tried to convince me that student loan debt is “good debt” and that it’s “normal” to have debt.
While this might be true, I hated the thought of owing that much money to anyone and I wanted to get rid of that burden immediately. So, I developed “Operation Debt Payoff” and gave myself a 2-year time frame.
Many people questioned me as to why I decided on only 2 years. The truth is, I wanted the financial freedom to travel, plan my dream wedding, get a master’s degree, start a business, and live comfortably without the burden of debt. Since I was able to pay my debt off at such a young age, I’ve been able to succeed at all the things on my list.
Within 2 years after receiving my student loan bill, I made my final payment and became debt free by the age of 23.
Related content on paying off your debt:
Here are the exact steps I took to achieve my goals!
Loan Audit and Professional Help
The truth is I set my goal of 2 years before I even knew much about my loans. All I knew was that they totaled $30,000. That meant the first thing I needed to do was conduct a loan audit to figure out all the nitty, gritty, logistics.
I learned that there are two types of student loans: federal and private. During my four years, I took out 8 federal loans. That meant that my monthly payment was over $500 and my interest rates varied from 3.4% to over 6% per loan.
This is from my FedLoan Servicing account, which shows the date that I took out the loan, the type of loan, and the status (which they are all paid in full by now).
This was extremely overwhelming.
To help me out, my parents took me to our families’ financial advisor. I came prepared with a print out of each loan so that I could be transparent with the advisor. After I told him that I would have all my debt paid off in only 2 years, he chuckled and told me that it was impossible and unrealistic.
He then told me that everyone needs a little debt in their lives because the payments help with your credit score. Maybe this is true, but I still had no interest in paying $500 a month for the next 10 years, even if that meant a tiny bump on my credit score. And besides, debt is debt and I hate owing anyone anything.
Once he saw that I was determined to stick to my plan, he told me to come back in 2 years if I succeeded. And, guess what? In 2 years, I popped into his office and announced that I was debt free.
The look on his face: Priceless!
The Method Behind my Success
This method specifically works for federal loans that are unconsolidated.
I owe my success to two major decisions:
The decision not to consolidate my loans.
The decision to pay only the monthly minimum.
The reason I chose not to consolidate my loans into 1 giant loan was because I chose to focus on paying off one loan at a time.
My entire game plan was to pay off one individual loan in full at a time, starting at the loan with the highest interest rate, while still making my monthly minimum payments.
These are some screenshots of the payments I made on three of my loans with the starting principal and the interest the loan accrued.
Let me break this down for you.
I put my loans in order from the loan with the highest interest rate, which was over 6% all the way down to the lowest, which was 3.4%. Then, I focused on saving enough money to pay off an entire loan in the order of highest to the lowest interest rate.
While it was a simple and straightforward plan, it took some willpower to not jump ahead. What I mean by this is that it was tempting to pay off the loans out of order.
For example, one loan was only $2,000 at a 3.61% interest rate while another loan was $4,500 at 4.5%. Since the $4,500 loan had a higher interest rate, I needed to pay that one off first to save me money in the long run.
The temptation came once I had $2,000 saved and sitting in the bank because I wanted to just pay off that loan. However, I stuck to paying off the loans in the order of interest rate and it absolutely worked.I can’t stress enough how wildly successful this plan was.
Why Paying the Minimum Balance Worked So Well
While paying more than the minimum monthly balance might seem like a faster way to pay down debt, it’s important to know that your money doesn’t always go to your overall principal balance.
Part of your monthly payments goes straight toward your accumulated interest and then the money that is left over goes to the principal balance. That is why it takes approximately 10 years to pay off student loans because they are calculating in all the interest you will accumulate over the years.
By using the method of focusing on saving for one loan at a time while paying the minimum balance, you ultimately cut down on thousands of dollars of interest. Also, when you pay in full for an individual loan, you don’t have to worry about whether or not that money goes to the principal or your interest because you are completely wiping out a loan from your bill.
Additionally, by focusing on one individual loan, it helps to break down the overwhelming idea of paying $30,000. For me, I was able to focus on a $5,500 loan, or a $3,500 loan, which felt way more doable than trying to pay off $30,000. It’s easier to see progress when money is going towards individual loans rather than putting money towards a giant principal balance and feeling like nothing is happening.
This method also allowed me to set tangible short-term savings goals. Based on the money I was making with my full-time job, I knew exactly when I would have enough to pay off an entire loan so I was able to plan accordingly.
My ultimate suggestion is to stick to the monthly minimum and save up to pay off an entire loan. Doing that is the only reason I was able to pay off my bill in 2 years.
Other debt payoff stories:
Saving Aggressively
Believe it or not, I came up with “Operation Debt Payoff” within one week of graduating college. I knew that if I was going to be successful, I only needed to do one thing: save money.
That’s exactly what I did. I started to save, and I mean aggressively.
In fact, by the time my first bill came in the mail, I had enough money set aside to pay off my 3 highest loans immediately. That meant that my $500 monthly payment dropped to $300 within the first month.
By the time I had only one loan left to pay, my minimum payment was around $30 a month. That’s a huge drop from the $500 I started out paying. Talk about success!
However, to save that much money came with a list of sacrifices.
After doing some calculations, I learned that I needed to save approximately 70% – 80% of each paycheck to meet my goal of 2 years. To save that much, it meant that I had to make some serious cuts and adjustments to how I lived.
The first big adjustment was that I moved back home after college so I could save on rent. This was such a great decision (and I loved living with my parents!). Next came all the things I needed to cut: Starbucks, eating out, manicures, getting my hair done, shopping, trips, etc. Basically, I became the most frugal 21-year-old ever.
And let me tell you, people were quick to call me prude, stingy, uptight, no-fun, and so much more. Did I care? Well, honestly, a little bit. But, did I see the bigger picture? Absolutely. And by the way, those same people who called me prude back then are now asking me how to save money so they can be debt free.
Making such a huge adjustment to how I saved money, and ultimately becoming a frugal person, ended up being something that stuck with me. While I do take trips now and spend money on the occasional luxury, I learned that giving up Starbucks and manicures for 2 years didn’t harm me at all. Those two years of aggressive saving taught me discipline, focus, and the difference between the things I wanted and the things I needed.
If you think aggressive saving sounds difficult, I assure you that it’s not. After you make the necessary adjustments, it becomes second nature. For me, once I saved up enough money to pay off a loan, I was so excited to start my saving process all over again.
By the time I paid off all $30,000, I decided to continue with my aggressive saving methods (with a little more flexibility), in order to build up a solid savings account.
The Reality of it All
This method of paying off student loan debt takes a lot of discipline. Just because I was paying off a large amount of debt didn’t mean that the world around me stopped.
I still had bills such as car insurance, phone bill, health insurance, gas, groceries, retirement, tithing, etc. I also had emergencies come up that required me to spend money I was planning on saving. On top of all of that, I had to travel across the country to a family reunion for a week that resulted in me spending even more money.
Despite all of this, I still found as many ways possible to make my plan work given my circumstances. Here are some things I did:
Started saving before my bill came. This helped make a huge dent right away.
Set a budget. I listed all my bills and then worked in my 70% – 80% savings from my paycheck.
I found ways to make extra money through freelance writing gigs.
I didn’t upgrade any technology, like my phone, in those two years.
I got hand me down clothes from friends instead of shopping.
I learned how to meal prep.
I worked extra hours at my job when I could.
Reactions Then vs. Now
When I first announced my goal to everyone, many people didn’t take me seriously. I was told that it couldn’t be done, that I was being foolish, that I didn’t understand how debt worked, and that I would lose my friends. But, I stuck to my plan. And guess what happened?
Everyone quickly learned that I was very determined and they eventually adapted to my new lifestyle.
Since I knew I couldn’t spend much money on socializing, I learned how to enjoy hanging out with friends without spending. I took advantage of window-shopping, I didn’t order food at restaurants, I made DIY gifts for birthdays, my friends and I had many fun nights in, and we did plenty of free outings such as the beach, farmer’s markets, and museums.
During this time I didn’t lose a single friend.
Yes, they joked and called me stingy, but the truth is, I was being stingy, and it was completely worth it.
Nowadays, the same people who told me I couldn’t do it ask me how I managed to pay off that much debt in such a short amount of time. I have even received random emails from a friend of a friend because they need help crafting their repayment plan.
Most of the time when I tell people how I succeeded, they think it’s some miracle that only I could have pulled off. That’s not true at all!
Everyone’s debt situation is unique, which means everyone needs to craft their own “Operation Debt Payoff” plan. Maybe you want to pay your debt off faster than I did, or maybe you need to take a little more time.
Whatever you decide to do, just know that regardless of what everyone says, you can absolutely do it. I believe in you! You totally got this!
What are your tips about paying off student loan debt?
This is the first of a planned series in which I interview friends and family about their attitudes toward money. Most of these will be anonymized (and much shorter). Some will not. This first interview is with Scott Durbin, a member of Imagination Movers, a rock band for kids. This band is an entrepreneurial venture that required a huge leap of faith.
Scott, what made you and the other Movers decide to form a band? And why a band for kids?
Once you get into your 30s, you begin to feel opportunities to be creative evaporating. This time in our lives is often devoted to starting families, working for the company, paying bills to stay above the proverbial water, or working on our various relationships (wife-husband, boyfriend-girlfriend, other). I could get philosophical about the conflict and guilt of doing something seemingly self-indulgent versus being a good father/husband/worker, but let’s save that for another day. Luckily I have an amazing wife!
Several forces led to the founding of the Imagination Movers.
1. First, the guys in the group are very creative fellows. Creativity bubbles to the top given an opportunity.
2. Strangely enough, having families created an environment that allowed us to pool our creativity. That and proximity. When the Movers started, we lived within walking distance from one another. We all started having kids at the same time (minus Smitty who is the Mover without children). Kids have birthday parties. Parents gather. A ritual is established, and instead of going to bars or wherever to hang out with your mates, you’re left with your two-year-old’s birthday party as a means of convening. But it’s all good. These gatherings became the second peice of the puzzle.
3. When you have kids, you are immediately introduced into a foreign culture. You acclimate yourself as best you can, discovering the latest coolest educational toys, kids’ music, enrichment opportunities, places to play or visit, restaurants where kids eat free, any video/audio that might make your kids smarter — the whole kit-n-kaboodle. You discover your children want to listen to something over and over and over and over and over again, so as a survival parent, you want to make sure you can tolerate whatever that music is. This was the third key to development of the Imagination Movers.
4. Meanwhile, my wife has a friend who works at the local PBS affiliate. My wife’s friend often asks me to participate in commercials or promos they do. So there I am dancing for a commercial advertising the station’s fundraiser, a Beer Tasting Fest. The commercial is a hit, so I am receiving a lot of local affiliate PBS love which I put on the shelf for later use. This is a fourth thread. (All these threads will come together, so stay with me.)
5. Finally, I am a huge fan of Mister Rogers and Captain Kangaroo — people who possess a sincere desire to better the lives of their audiences and an almost palpable integrity that assures you they are not full of crap. And on top of that, they are REAL and not cartoons. I love cartoons just as much as the next guy, but heck, you know live action children’s entertainment is needed. A cartoon can only model so far or translate so much. It’s two-dimensional. So when Fred Rogers passed away, I felt called to take his place. Sounds crazy, but that become this nagging gut thing for me. I wanted to create a local kids’ show that treated kids like people and not consumers. This was the last factor in the band’s creation.
So here’s where the threads start coming together:
I mention that I want to start a local kid’s show to my wife’s friend at the local PBS affiliate.
I talk about the idea with my friends (and future Movers) at parties or the local grocery (the neighborhood essentially).
As I begin waxing, I arrive at a name for the show — “Imagination Movers” — and a broad concept that Movers work in the other-worldy land of imagination, and it’s the job of a Mover to bring people good ideas when they have idea emergencies.
I pitch the initial notion to the guys at a party. They’re in. We start writing a treatment/script in the attic of Dave’s house that we plan to pitch to the local PBS station. As we work on the show, music becomes a cornerstone. Rich and Smitty whip out the guitars and jam. Since the first script is about ‘healthy snacks’, most of the songs are in that vein. Well, we start writing songs and sometimes play them at get-togethers. People love the songs. Really love the songs.
We pitch the show to the local PBS affiliate and they love it, but with PBS-type entities, they have NO money. We are disappointed, but everyone loves the songs. So Rich decides to invest in a home studio and we begin recording the music we wrote for the show.
The rest is Mover history.
So why did we become a kids’ band? For the most part, our children/families were where we were, and what we were about, so our songs became part observations of our lives, part honoring our wee ones (and hopefully creating something meaningful for other wee ones), and a sincere desire to be the new Mr. Rogers. But in our case, Mr. Rogers has been divided into four parts, and instead of wearing a cardigan … wears blue coveralls.
What was your family’s financial situation at the time you started the Imagination Movers?
At the time the Movers started, I was entering my sixth year of teaching. Picture if you will, being the ‘bread winner’ on a teacher’s salary. Ahhh, the luxury of it all. My better half worked full time-ish as an office manager for a web firm and was earning a little less than me. Our income, however, was supplemented by a rental property. Even so, we rented to friends and consequently asked for $150 month lower than market value for the area.
Having two wee ones, we were quite honestly living paycheck to paycheck. We had some credit card debt but nothing crazy.
Our biggest financial problem — and this sounds strange — was vacations. Here’s the recurring scenario: we would finally get ourselves into some kind of financial stability and then boom, we would go on a family vacation and put ourselves right back into a mini-hole. Not trying to shift blame from self, but ‘we’ were not as frugal when it came to vacations as we should have been. My wife having been raised in a close knit family that always took summer vacations, was pretty adamant that we take similar family vacations. The problem with vacations is that you’re more apt to splurge thus obliterating your vacation budget. It’s the mentality of saying to yourself, “Hey, we’re on vacation! We won’t be able to do this for awhile or eat this good or whatever.” And soon enough, your food budget no longer exists and you’re stuffing your face with $20 crab cakes. Viva la vacation!
How did starting the Imagination Movers affect your personal finances?
For a while, everything we did was out of personal pocket. As the organic nature of our project began to take root and blossom, it was clear that some kind of real investment needed to be made so our Big Ideas could be realized. That investment was a gut check: it meant we needed to use more of our own money. So began the Movers. Honestly, everything we did — from purchasing blue suits to buying equipment (such as a PA and wireless mics) to investing in a home studio — came from the pockets and sacrifices of Rich, Scott, Dave and Smitty. The great part is that we so believed in what we were doing that money, time and energy aligned themselves and we went into overdrive.
Rich and I were the initial big investors. Dave and Smitty pitched in when possible. Rich took the burden of financing a home studio, which led to the biggest collective cost we faced early on: the creation of our first audio release, Good Ideas. Taking into account the manufacturing of the CDs, paying someone to master them, and PR, we were looking at a few thousand dollars head-on. We didn’t have much disposable income, but we found the money. (I think Smitty sold plasma. I sold balloon animals. Dave panhandeled and Rich washed cars.)
All in all, to get the Movers started, we had to get out the shovel and dig into savings so the machine could begin to turn. Our first big hope was that sales from the CD and early shows would allow us to reap what we sowed. Either we’d get back what we paid into the project, or allow the money we made to lead us to other opportunities. The latter became the yellow brick road.
So to answer your question: my personal savings was hit, parts of my home were converted (putting up shelves for inventory, setting up a network system, getting filing cabinets), and little costs (mailers, paper, postage) sometimes cut to the bone. Instead of buying a six pack or going to a movie, my disposable income went to buying CDs and labels to burn early demo copies for people.
How did you and the other guys feel about this? It sounds to me exactly as if you’ve been starting a business. Do you feel this way too?
We had big ambitions from the start. Although it seemed like a great side project, we secretly treated it as an opportunity to become self-employed and as such worked it like it was a small business. I took on the role as visionary, aspiring to some very lofty goals.
When our demos turned into real products, the fire was lit and we added more goals: creating a coloring book based on one of the songs, printing t-shirts, looking to establish distribution for our burgeoning product line. You name it, and we were plotting it. We even financed a trip to Toy Fair in New York in an attempt to introduce the world to the Movers.
I will say we were smart about resisting investment from outside of the group. Some financial advice we received led us to just say no to third party investors. I remember something about us selling securities in the group if we did so; in other words, we’d be opening ourselves up to a very complicated financial and legal world.
We also had some great friends who encouraged us to form a business plan. Sounds incredible impetuous, but we formed an LLC, met with local business leaders (Idea Village, a business incubator in New Orleans), and started working on goals.
Naturally, guys in the group participated in the project as best they could. Some did much more than others, but we were aware of the sweat equity certain people were giving early on. Rich and I were in working situations that allowed us to devote more time to the project than Dave and Smitty. Dave was working hard as an architect and Smitty as a fireman. We were — and still are — doing something that we loved, so turning it into a business simply allowed us to keep everything on the up and up, as well as kept us organized.
Scott, how did Hurricane Katrina affect the Imagination Movers? How did it affect your personal financial situation?
Katrina, without question, was a reminder of just of fragile we are; how life can turn on a dime with very little warning. Its effects were truly devastating, but with destruction there comes new life and so it was with my family personally and the Movers professionally. First off, Katrina destroyed three Mover homes and most (if not all) possessions. Here is a picture taken near our home a few days after the levees broke.
Keep in mind, most of this water stayed around for days. Sadly enough, photographs, videos of a child’s birth — you name it — met a watery and moldy grave. Actually, it went further than that — it destroyed the neighborhood. The places you went to have coffee, ‘make’ groceries, the church you attended or the school you dropped your kids off were gone. In the blink of a wink, everything you saw for miles became ghost-like. Even today — more than a year plus after — empty houses, lonely streets, lost neighborhoods now whisper for anyone, anything to bring them back to their former selves.
The Mover office was also trashed. Countless CDs, coloring books, musical instruments were ruined. And guess what? The Movers didn’t have insurance. We had liability insurance, but we were so small and Mom-and-Pop-ish that we hadn’t needed more insurance — or so we thought.
Luckily Smitty lived on the West Bank, so although his home experienced minor wind damage, it escaped the destruction. The material things naturally hold memories, but not life and our thoughts focused on the well being of him and others like him soon after Kat hit.
Right after the disaster, everyone was reeling from the new reality we were forced into and for all intent and purpose had not processed the extent to which our lives would change, but we knew at the very least we did have the Movers. In particular, the Movers had two shows booked in Texas, one in Dallas on the Labor Day weekend and another in Plano. With the exception of Smitty (who was knee deep in search and rescue), we all rallied and went to Texas to fulfill our obligation. Quite honestly, no one knew about their jobs or future income or anything. All we could see in front of us was a small payday and so we went with quite honestly the clothes on our back. We had no instruments, no Mover suits — nothing, but we went. And we played. Here is a picture of the Mover suits we used in place of our trademark royal blue ones. Note: Kyle is our ancillary Mover and plays drums for live shows with us.
Life afterwards was surreal. We no longer had a place to live. My family lived with my parents and my brother and his girlfriend in a tiny house with one bathroom in Lafayette, Louisiana (about two hours west of New Orleans). My job as a teacher was in limbo. I spent time in line for food stamps and wondered what queer curiosity tomorrow would bring. All the while I was still a dad and husband and the well-being of my family was paramount to everything I did. I’m sure the rest of the Movers felt the same way.
Personally speaking, my family received help from people we knew and didn’t know. Friends sent us giftcards for bookstores so we could buy the kids books as our wee ones love to read. Other friends and people we didn’t even know sent assistance of clothing and toys and hope. Churches helped. Companies helped. People helped us restore the basics. The Movers too received emails of support and even a guitar was sent. The emails, for the Movers sake, really kept the project going. The simple act of someone somewhere taking the time to share with us how important what we did — musically speaking — meant in the lives of their children (many whom were going through the same situation as us) humbled us. Buckled our knees. We knew. We knew we had to continue despite the overwhelming sense of powerlessness we all felt.
All in all, looking back, I am a better person. Though I wouldn’t wish the ordeal on anyone — the goodwill (and Godwill) of so many showed taught me about selflessness and how truly to give of the heart. As for my personal financial situation, well I was unceremoniously dumped from my position as a teacher in an independent school in New Orleans. I hold no grudges but wished they would have done it with a little more humanity and compassion. It was a phone call and a FedEx package. Either way, no job meant no income and no health insurance. My wife had to go to work full time so we could have health insurance. Our situation was so transformed that we were unaware of what might happen next (food stamps, unemployment, ect). Lots of ‘what ifs’ came along. Lots of ‘how did we get here.’
On the good side, the reality of our immediate financial situation was: we forced ourselves to save, to tore up those proverbial nuts for winter. Some pluses included no longer having to pay some of our bills: electric, cable, water, etc. We did receive some emergency funds from Red Cross, FEMA and some monies from of our insurance companies. All in all, our financial situation was made very clear to us: the ins and outs of our money was front-and-center and we were forced to deal with our financial situation head on. Credit card debt — what to do about mortgage payments on a home we no longer lived in — paying rent, too — you name it. We dealt with how we were going to handle it, especially having lost my salary.
Since I had no job, the Movers became a full time gig. As it did with Rich and then later with Dave. Any reason we had not to jump headfirst into this venture disappeared and so we signed with Disney. What a crazy juxtaposition that is — you sign a deal with Disney and you still are having difficulty making ends meet. Most people believed we were rich once the Disney deal came — biggest misnomer you could ever imagine. Hopefully our financial situation will improve, but the fact is: reality and perception are clearly two different things. Our main source of income is not Disney. Instead it was and is playing live. It’s our favorite thing to do and so we do it — right now to survive financially and emotionally. As a sidebar: Major props to Music Rising as it was a Godsend. Without it, the Movers would be instrument-less.
It’s now been a year since Katrina. How are things now with the band? With your financial situation?
A year plus removed from Katrina, it seems everyone yearns for routine and normality. My life now is spent in a city two hours west of New Orleans. I am the only Mover who has not returned to NOLA. My family sold our house after having sat on it, hoping the city and state would give us reason to reinvest and rebuild. Translation: a plan of some kind or another. Unfortunately, they have failed miserably in my humble opinion. The local leadership has become invisible and crime has riddled a city in desperate need of hope.
The world wonders why the Saints meant so much to the city of New Orleans. The inside scoop: a simple football team allowed the city to be one, regardless of color or creed or financial state. It allowed all people to smile and be hopeful because the city itself didn’t offer those commodities.
Back to the Movers — We’ve been fortunate to have videos rolling on Playhouse Disney so it does raise our profile. We’ve been working our tales off to make half of what we were making as professionals: architect, journalist and teacher — so we could make this dream come true. Sidebar: Smitty still works as a fireman in New Orleans. Shows you our true reality. Even with that said, we have opportunity and that is all we can ask for. We finished a pilot presentation (we felt was incredible) and five new videos which will hopefully air soon. All of the filming was shot in LaPlace (which can be considered Greater New Orleans to some). We felt humbled to know that an idea we created was now employing 75-ish people, most of whom were from the local area. Good story. Gives you lumps in your throat.
As I type this, I really have no idea what the future holds — financial or otherwise. I just hope I can make my next payment! Money is, after all, like all the things lost in Katrina: it comes and goes. A person defined by money gets short-changed by life. Family and friends are what make life special.
Thanks to Scott for sharing his story. Look for more money interviews with other real people in the coming months.
To date, the Imagination Movers have released the following:
Compact Discs Good Ideas (2003), Calling All Movers (2004), Eight Feet (2005) DVDs Stir it Up (2005)
Want to hear what the Movers sound like? Here’s a song called “My Favorite Snack”. This song is popular among both the kids and parents we hang out with. You can find more mp3s for download at the Imagination Movers site.
Scott reports that the group has a brand new CD coming out on a major label in March. Want to hear what the Movers sound like? Here’s a song called “Clean My Room” that — among other things — reminds me of Aerosmith’s “Sweet Emotion”. You can find more mp3s for download at the Imagination Movers site.
Thanks to Scott for sharing his story. It’s a great example of the need for emergency funds and the realities of entrepreneurship (and making money from hobbies). I hope to do more money interviews in the future. I’m exploring the idea of making these podcast-based. If you have any thoughts on this, drop me a line.
Michelle’s quick note: Today, I have a great blog post on how to save money for a large deposit from Rachael, who is a long-time reader of Making Sense of Cents. Rachael purchased her first investment property at the age of 20 by saving for a deposit and found many great ways to save for the 20% deposit. Below is her blog post. Enjoy!
I bought my first investment property with a 20% deposit when I was 20 years old (admittedly I was 2 weeks shy of turning 21!). I accomplished saving for a deposit with my own money, my parents never gave me a cent. So how did I do it?
1. The first thing I did was start applying for jobs as soon as I turned old enough to get a job. I started working when I was 15 as a checkout chick at Woolworths. Not very glamorous, a bit boring and repetitive but I was earning money! I worked about 10 hours a week during my last 2 years of high school, and worked around 20 hours per week during the school holidays. I worked at Woolworths for 3 and a half years and saved a good chunk of the money I earned.
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2. When I worked during high school the only time I would ever say no to a shift is if I was sick or had an exam the next day. It didn’t matter if I didn’t want to go to work (does anyone ever actually want to go to work?) I hated that job but I wanted a property so I went to work.
Sometimes I’d get home from school, get changed into my work uniform then go straight to work until 9:30 then come home and study until midnight to get homework and assignments done, then go to school the next day. I know some people don’t agree with kids working while studying but it was really helpful for time management as it didn’t leave me with any time to procrastinate!
3. The main contributor to earning enough money for the deposit was opening an Etsy shopI’d been designing printables to help keep me organized for a while and decided to start an Etsy shop to save up some money for a trip to the USA (I live in Australia). I ended up making enough money to cover most of the cost of the holiday. The intention when I got back from vacation was to close up shop and focus on my university studies. But I came back to tons of messages from people asking when my shop would be reopening because they wanted to buy my printables. I thought I may as well leave the shop open and make some extra money to supplement the income I was earning as a checkout chick (which was not much!)
About 6 months later my sales kept growing even though I wasn’t creating many new printables – I was earning more than I was scanning groceries (and having a lot more fun!) so I decided to turn my Etsy shop into a business. It also made me realise that I’ll never earn an above-average or life changing money working for someone else.
When I started my 3rd year of my university course, I got a job in my field. For 3 months I worked 10 hours a week scanning groceries, 25 hours a week at my day job, juggled my 2 Etsy shops, a blog, and maintained a high GPA at my university studies. I say this not to brag, but to point out that the money wasn’t just handed to me on a silver platter – if you want something you have to work for it. Needless to say I was burnt out. I quit being a checkout chick (that was a wonderful day!) and sought other ways to save the money I was no longer making from working those 10 hours a week. If you’re looking for ways to make extra money, Michelle has dozens of posts with side hustle ideas.
My biggest advice when it comes to saving money is not to increase your standard of living when you start earning a higher wage.
Aside from starting an online business, I saved money in numerous other ways:
4. I don’t have a car. When I did the math it was cheaper for me to pay higher rent and live closer to the city and use public transport (plus it’s more convenient). I share an apartment with my sister which also helped me save money as bills are split in 2, and it’s cheaper to rent an apartment with someone than it is to live by yourself
5. I buy stuff when it’s on sale & stock up. Yep, I’m one of those crazy people that buys 30 rolls of toilet paper when they’re on sale. When a sale does come around, I’m organized and have a list of everything I need to buy – the key is that you only buy what you need not just stuff that you want.
6. I bring my own lunch. I see so many of my work colleagues wasting their money on donuts, coffee and buying lunch every day. Then they whinge and seem confused that they don’t have any money by the end of the month when they’re screaming out for payday. One of the reasons I work as much as I do is because I never want to live paycheck to paycheck
7. When I was saving up I put most of my money into a term deposit. Not only did this prevent me from spending it, it also earned a higher interest rate than an everyday savings account. When the term deposit expired and I still didn’t have enough for the deposit, I went to my bank every couple of months and opened a new savings account so I could get their 3 month introductory bonus interest rate (by the 3rd time of doing it the bank knew me by name and just reset the interest rate rather than making me open a new account!)
8. I track where all of my money is spent using my budget binder printables – no joke, every single dollar gets accounted for. I do the same with my business income and expenses using these spreadsheets.
9. I set a maximum amount I would pay per piece of clothing and stuck to it (still stick to it!) no matter what ($20 for shirts, $40 for a pair of shorts in case you were wondering – keeping in mind that clothes are more expensive here in Australia). If I find a piece of clothing that I like I also buy it in multiples when it’s on sale. I have an ‘around the house’ wardrobe which consists of cheap clothes I wouldn’t wear in public but are perfect for blogging!
10. I utilise credit cards. A lot of people have a misconception that credit cards are bad but they’re not if you use them to correctly i.e. not to buy stuff you couldn’t otherwise afford. Not only do I not have to carry cash but when I makes purchases on my credit card I accumulate points that can be converted to cash.
Plus most credit cards will give you a signup bonus (such as cash or frequent flyer points) – just make sure you check that the bonus is more than the annual fee. You can always cancel the card before the end of the year then sign up for a new card the next year to get a new signup bonus.
By purchasing on credit card, you can keep money in your savings account for longer meaning YOUearn interest on your money, not your bank. I use my budget plannerto keep track of when money needs to be transferred so I’m not hit with a late fee.
Related: How To Take A 10 Day Trip To Hawaii For $22.40
11. I’m on the lowest phone plan with the smallest amount of data and I still never reach the limit because I utilise free wifi. I always make sure my phone is set to wifi when at home, and if I need directions somewhere I’ll look it up and take screenshots before I go so it doesn’t use up data.
12. I try and travel during off-peak season. And if I do travel during peak season I travel with others so the cost of accommodation and airport transfers can be split.
13. Comparison shopping research. I always compare the cost of basically everything before purchasing. Each week I go through the grocery catalogues and see which shops have the same item for the cheapest price. If I’m buying electronics I make sure I take advantage of price matching.
14. Before I buy anything I ask myself: ‘do I really NEED this?’ We all have that one thing that we can’t resist. For me, it’s stationery. I’m a massive stationery addict and the number of times I’ve had to tell myself no when I see a cute notebook or another pen sucks, but if I don’t actually need it then I don’t need to buy it.
15. I use ATM’s that don’t charge me transaction fees. Make sure you check with your bank if there are any banks they partner with i.e. won’t charge you fees, or at least look at which ATM’s charge the lowest fees if you withdraw money and aren’t a customer with that bank.
16.I never buy stuff from convenience stores – they charge double the price for a chocolate bar, a bottle of water etc. as the supermarket. I was with a work collage at lunch and she spend 4x the cost on 2 items that she could’ve got for way cheap if she walked 100m up the road to the supermarket. She didn’t even bat an eyelid and all I could think was you just spend a third of your hourly wage on stuff that’s going to be consumed in 5 minutes!
17. I’ve never ordered dessert at a restaurant. Ever. Why pay $12 for a bowl of ice cream when I can buy 3 tubs for the same price?!
18.I never buy scatchies, lottery tickets or participate in sweepstakes at work. I believe you’ve got to make your own luck!
19.When I catch up with friends I do so over lunch or afternoon tea rather than dinner as meals are usually cheaper.
20. I walk around my neighbourhood rather than paying for an expensive gym membership.
Related: The Busy Person’s Guide On How To Be Healthy
The 20% deposit on my first investment property
All in all it took me about 5 years to save the deposit. I’m not going to sugar coat it. It was hard. Really hard. ‘Training’ myself to say no, to really ask myself if I actually need something as opposed to just wanting it was not fun.
And just because I have the property now, doesn’t mean I’m going to suddenly stop being ruthless about saving money. My mentality is now ‘I could buy this for $100, or I could put that towards an extra mortgage repayment.’ I tracked my savings and spending (no joke, I account for where every dollar goes) using my budget binder printables(which I still use to track my spending).
Related: Home Buying Tips You Need To Know Before You Buy
As for whether I’d buy a property at 20 again, I’ll admit there have been times when I’ve regretted my decision. I could’ve done a LOT of travelling with the money I’ve poured into my mortgage (as well as all the other ongoing costs such as property management fees, body corporate, maintenance etc.).
I’ll admit I do get jealous of my carefree 20-something friends’ holiday photos, and that they have no qualms about dropping a couple of hundred dollars on a concert ticket. I also wouldn’t have to awkwardly ask friends to pick me up if we go out since I can’t afford a car (I do pay them money for fuel!) If interest rates weren’t at historically low rates at the time, then I also probably wouldn’t have been able to purchase the property.
But whenever I feel ‘depressed’ looking at how much money I’ve poured into the mortgage and how much interest is added to the balance each month, I remind myself that I’m on track to paying off my mortgage by the time I turn 30 and I feel a whole lot better! ☺
What have you done so that you can save a large amount of money such as saving for a deposit?
Looking for the best money saving apps and websites?
When it comes to using technology to save money, there are a variety of money saving apps and websites to choose from. I’ve sifted through the best personal finance apps to find which ones will help you save the most money, and I’m sharing a list and summary of your best options.
What I love about these kinds of apps is that you can easily keep track of your savings. You can simply pull out your phone and see what’s happening with your finances.
Whether they make managing your money easier, allow you to make or save more money, simplify financial tasks, cut your expenses, or something else, there are many benefits to the apps I’m sharing today.
Saving money is so important, but it can be difficult to do with the rising cost of things. That’s why every little bit counts when it comes to saving money!
The money saving apps and websites below will help you:
Save money from your phone
Save/earn money when shopping online
Manage your money online
Side hustle online
Save when you grocery shop
Set and reaching savings goals
Invest for your future
Improve your spending habits
Cut your expenses
And more.
The apps I’m sharing will work on Apple iOS, Android, laptop, and/or tablet. You should be able to sign up for them through your phone’s app store or by visiting the company’s website.
In today’s article, I am going to explain the top money saving apps and answer frequently asked questions, such as if money saving apps are safe, why these apps are willing to pay you cash, and more.
Related content:
20 Best Money Saving Apps
Before we begin, I want to quickly list out all of the best money saving apps below:
Personal Capital
Capital One Shopping
Upside
Fetch Rewards
Ibotta
Qapital
Yotta Savings
Swagbucks
Rakuten
Acorns
American Consumer Opinion
Neighbor
Survey Junkie
InboxDollars
Decluttr
Bestmark
RVshare
Get Jerry
Chime®
Albert
1. Personal Capital
Personal Capital is a very popular personal finance and investment portfolio tool.
With Personal Capital, you can see your net worth, see if you’re saving enough for retirement, set a monthly spending target (and organize your spending and savings), analyze your cash flow, check up on your investments, and more.
There’s even a feature that analyzes your investment fees. It helps you identify places you can save on fees, which will help you put more of your money to work for you.
Personal Capital also has a high-interest rate savings account. This is a fee-free, FDIC-insured account, and it currently offers a savings APY of 3.35%!
Plus, it’s a free personal finance app that you can access right from your phone.
You can learn more about Personal Capital here.
2. Capital One Shopping – Automatically apply coupon codes
Capital One Shopping is one of the best money saving apps because it automatically applies coupon codes when you’re shopping online. That means you don’t have to search for coupon codes, which can save you time and money.
This is one of the best automatic savings apps because you don’t have to do anything extra. The Capital One Shopping app does the work for you by running through a variety of coupon codes as you check out, and then it automatically applies the best digital coupons for you and your purchase.
It’s free to use Capital One Shopping, and it is a browser extension that works with all major browsers.
You simply just shop as you normally do, and the Capital One Shopping app works in the background. I have it installed on my laptop, it works great, and I am always able to find the best deals with no extra time spent on my end.
You can sign up for Capital One Shopping here.
3. Upside – Save at gas stations
Upside helps you find gas stations, groceries, and restaurants where you can earn cash back on your purchases. You simply sign up for a free account, and then look at the Upside app to find places near you.
You can earn up to $0.25/gallon cash back at gas stations, up to 30% back on grocery purchases, and up to 45% back at restaurants. This app can help you offset the cost of inflation by helping you save money on everyday purchases.
App users can earn cash back at more than 50,000 locations nationwide, such as Shell gas station, Phillips 66, Burger King, Dunkin Donuts, Piggly Wiggly, and so much more.
One of my favorite Upside features is the map that tells you how much each gas station in your area is charging for a tank of gas. This helps you find the lowest price possible, while also giving you cash back.
You can check out Upside here to learn more.
4. Fetch Rewards – Scan your grocery receipts
If you’re looking for the best money saving app for groceries, I’ve been using Fetch Rewards the last few months, and it is so easy to save on groceries and other daily purchases!
Fetch Rewards is a cashback and gift card app that rewards you for purchases that you’ve already made.
With Fetch Rewards, you can earn points by submitting your receipts to the Fetch Rewards app from any grocery store, clothing store, restaurant, gas station, and more. Yes, ANY!
Then, you can redeem the points that you have earned for gift cards (to places such as Target or Amazon) and other rewards.
All you have to do is take a picture of your receipt with your cell phone, and you can easily earn points. I scan any and all receipts into my Fetch Rewards app and can easily earn rewards.
Here’s how Fetch Rewards works:
Shop like you normally would
Scan your receipt after you’re done
Earn points on Fetch Rewards
You can sign up for Fetch Rewards here.
5. Ibotta – Submit your receipts on your everyday purchases
With Ibotta, you simply create an Ibotta account, unlock rebates and rewards, go shopping, verify your purchases, and then get cash.
This is a great daily savings app. You can redeem rebates from over hundreds of stores, such as The Home Depot, Walmart, Chewy, and Best Buy.
You can earn cash back online as well as in-store, which is where Ibotta really stands apart from other companies. Plus, you can connect your favorite loyalty cards to your Ibotta account as well, and then Ibotta automatically applies loyalty discounts.
Ibotta is one of the easiest and best money saving apps because you’re making money shopping like you normally do. Ibotta then pays you in cash or gift cards to Amazon, Starbucks, and other stores.
6. Qapital – Save with minimal effort
Qapital is an app that can help you to save, invest, and spend with money better. This award-winning savings app has over 2 million users who have saved over $3 billion!
You can set triggers for saving, like when you post a status update to Facebook, every time you go for a run, when the space station flies over your house, etc. You can also set automatic deposits, do round-ups, and more. This can be a great way to get into automatic savings.
Qapital also has goal-based savings features, making it a great app for saving money for a trip, your wedding, emergency fund, and more. You simply set a savings goal, and Qapital automatically moves money into that account to help you realize your goal by your deadline.
There is a small monthly fee to use Qapital, but you can get a 30-day free trial. After that, they have three pricing tiers from $3 a month to $12 a month.
You can sign up for Qapital by clicking here.
7. Yotta Savings – Win up to $10 million weekly
The Yotta Savings app gives you the chance to win up to $10,000,000 weekly.
Yotta Savings uses the psychology that drives Americans to play the lottery to instead motivate Americans to save money.
For every $25 that you save with Yotta, you have the chance to win $0.10 all the way up to $10,000,000, every week.
If you don’t win, the cash you’ve saved still has a 0.20% savings rate, which is twice as high as the national average.
I personally signed up for Yotta Savings, and I think it’s a fun way to get people into saving more money. So many people enjoy playing the lottery, and this can be a great way to motivate people to save their hard-earned income.
There is even a Yotta debit card where you can earn 10% back and the chance to get any item you buy for free with the Yotta Debit Card. Plus, your savings accounts with Yotta are FDIC insured.
You can click here to download the Yotta Savings app. You can also learn more in my Yotta Savings Review.
8. Swagbucks – Complete simple tasks online
I started using Swagbucks years ago, and it has helped me easily earn extra cash on the side, and all you need is an internet connection.
There are many ways you can earn money on Swagbucks, such as:
Watching videos on their website
Playing free games online
Scanning your receipts
Installing the Swagbutton
Printing coupons
Answering daily polls
Searching the web and using their search engine
And much more.
Here’s how Swagbucks works:
You can join Swagbucks through my referral link, and receive a $10 bonus.
You can then earn points by taking online surveys, searching the web like you normally do, watching videos on Swagbucks, and shopping online.
Then, you can redeem your points for PayPal cash or gift cards (such as to Amazon or Walmart).
As you can see, Swagbucks is very easy to use!
9. Rakuten – Get cash back at online retailers
Rakuten (used to be called Ebates) is one of the best apps for saving money, and it allows you to earn free money for spending how you normally would online.
All you do is click on a store that you want to shop through (they have tons of stores such as Walmart, Target, Old Navy, etc.) and shop just like how you normally would shop online.
Rakuten makes a commission for referring you to the store you just shopped at, and they give you some of that money back as a reward. This can help you to trim your expenses and put a little more money back in your pocket. Who doesn’t love putting their money to work?
When you sign up through my link, you’ll receive a free $10 cash sign-up bonus.
10. Acorns – Invest your spare change
Is there an app that saves your spare change? Yes, and it’s called Acorns!
Founded in 2012, Acorns is the original micro-investment app. Micro-investing means you’re investing in fractional shares of stocks. So instead of buying a full stock share, you can invest with smaller amounts of money, which makes investing more accessible than ever before.
Acorns allows users to link and round up transactions to the nearest dollar from both debit and credit cards and essentially invest their spare change. Acorns also does 2x, 3x, and 10x multipliers on round-ups so you can maximize your investments.
For example: If you use a linked card to buy a $4.58 coffee, Acorns will round it up (to the nearest dollar) to $5 and invest the $0.42 difference.
Acorns also has many other features within their app, such as the ability to earn money while you shop, find jobs, and more.
You can click here to sign up for Acorns.
11. American Consumer Opinion – Paid online surveys
American Consumer Opinion is a survey company that I recommend, and it is free to sign up.
You can earn anywhere from $1 to $50 per survey taken through American Consumer Opinion, but $50 for surveys is pretty rare. It all depends on the length of the survey, and I would say the average is probably more around $1 to $5 per survey taken.
American Consumer Opinion also sometimes gives you free items to test out and give your feedback on.
They have paid out over $35,000,000 to survey takers and have posted over 20 million surveys. There are also over 7,000,000 active members.
You can sign up for American Consumer Opinion here.
12. Neighbor – Rent out your garage
Do you have unused storage space? If so, you may be able to earn money with it.
Neighbor is the Airbnb of storage space.
You can use this website to list your unused space for rent and earn up to $15,000 per year. With Neighbor, you can rent out your garage, driveway, basement, or even an unused closet.
You can set your own prices and decide for yourself what storage reservations you want to approve. You can even talk with renters in advance before deciding if they’re a good fit.
You can sign up for Neighbor for free here.
13. Survey Junkie – Share your feedback
Survey Junkie is a top survey company that provides online surveys that pay cash. You simply build a profile with them, and they match you to paid online surveys that fit your information.
They pay either cash through PayPal or with gift cards to places such as Amazon, Target, and more.
Survey Junkie accepts members from the United States, Canada, and Australia.
You can take surveys for cash by signing up for Survey Junkie here.
14. Inbox Dollars – Play games online and use coupons
InboxDollars is an online rewards website that rewards its members for watching videos, taking surveys, redeeming grocery coupons, playing games online, and more.
It is free to sign up and free to become a member.
Most of the paid online surveys on Inbox Dollars pay from $0.50 to $5.00 and take 3 to 25 minutes to complete.
Sign up for InboxDollars here and receive a free $5.
15. Decluttr – Sell your old phone
Decluttr is a website where you can sell your old cell phones, CDs, DVDs, games, and books.
It is one of the most popular buy-and-sell electronic/tech websites, and for good reason: They pay well and quickly.
Here’s how to make money on Decluttr:
Open Decluttr’s app and get a free instant valuation for the items that you want to sell.
Tell them the make, model, and condition of your cell phone. If you’re selling CDs, DVDs, or games, then you just enter your barcode or take a picture of the barcode with the Decluttr cell phone app.
If you’re happy with the amount that they are offering you for your item, then you simply get a box (any box that you think will keep it safe while it’s in the mail) and pack it up safely to ship to Decluttr. Decluttr sends you a free shipping label, and all you have to do is print out and tape it to your mailing box.
Once your item arrives at Decluttr and it’s been looked over and verified, you will receive payment the next day by direct deposit to your bank account or PayPal.
As you can see, it is easy to use this website. If you have items around your home that you are no longer using, then this can be an easy way to make money. I also recommend shopping through Decluttr if you want to save money on electronics!
You can check out Decluttr here.
16. Bestmark – Mystery shopping
Companies hire mystery shoppers because they want to get a better idea of what the customer experience is actually like. This could be a clothing shop, a car dealership, a movie theater, and more. Basically, any business that’s selling something to customers can benefit from mystery shoppers because they want to see their business through their customers’ eyes.
Mystery shopping can be an interesting way to make extra money online, while shopping in-store, over the phone, and so on.
In the past, I have done mystery shops that paid me actual money, and others paid me in free items too, such as a nice dinner out and makeup. After using Bestmark for mystery shopping, I highly recommend them.
There is no monthly fee with Bestmark, and it is free to sign up!
You can learn more at Want To Make An Extra $100 A Month? Learn How To Become A Mystery Shopper.
17. RVshare – Rent out your RV
If you have an RV that you aren’t currently using, then you may be able to earn $100 to $300 a day or more by renting it out to others through RVShare.
Think of RVshare as Airbnb for RVs.
You can rent all kinds of RV on RVShare, such as:
Camper vans
Travel trailers
Pop-ups
Class C Motorhome
Class A Motorhome
Toy hauler
RVshare also securely handles all payments and releases funds to your bank account one business day after the start of each rental.
Related: Have an RV that you want to rent out? Check out How To Make Extra Money By Renting Out Your RV.
18. Get Jerry – Save money on car insurance
When was the last time you shopped around for car insurance?
Even though it’s very easy, shopping around for insurance is something that most people avoid because it takes time. The problem is that not shopping around can cost you tens of thousands of dollars over your lifetime.
Jerry is an insurance comparison company that will help you get the best value car insurance.
With Jerry:
You can sign up in just 45 seconds
Compare quotes from over 45 companies
Save an average of $879 per year
You can shop car insurance rates through Get Jerry here.
19. Chime® – Round-up savings app
Chime is an award winning financial app that will help you save money and make the most of your spending. One of their most exciting features are automatic round-ups when you make a purchase. Chime will automatically round up your purchase to the next dollar amount and save the rest for you.*
Here are even more Chime features:
Get paid up to two days early^ when you set up direct deposit
No monthly fees and fee-free overdraft
Send fee-free payments to friends and family
Higher-than-average APY*
You can sign up for Chime here.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
*Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
*The average national savings account interest rate of 2.00% is determined by FDIC as of November 17, 2022 based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Visit National Rates and Rate Caps to learn more.
^Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
20. Albert – Simple saving and investing app
Albert is an app designed to make it easier to save and invest all in one place. This app has features for saving, investing, and budgeting.
They even have a Genius feature, which is an in-app chat where you can ask one of their Geniuses anything related to money, from credit cards, buying a car, student loans, and more.
You can learn more about Albert here.
Do money saving apps actually work?
Yes, money saving apps and websites actually work. They exist for a reason!
Now, not every single one will work for everyone, but there are many options that you may be able to try out.
I have personally used many money saving apps and websites over the years, from online savings accounts, to cash back websites to paid online surveys, and more.
Are money saving apps safe?
The money saving apps and websites included in this article are safe and legitimate.
I did thorough research on each company, and I use many of them myself.
Where do money saving apps get money from? Why would they pay me?
Many of the money saving apps and websites listed above make money in ways such as:
They may get paid a commission when a customer buys something from one of the company’s partner sites.
Selling market research data, which is what survey sites pay you for.
Display advertising – which means getting eyeballs to their website, app, etc. – may earn them money through advertising on their website/platform/app.
Some of these apps make money because you are selling something to them, and then they resell it, such as with Decluttr.
Mystery shopping companies make money from the company that is hiring them to have the mystery shop done. For example, a clothing store may pay them to find mystery shoppers and conduct the mystery shop.
They all make money in some way, which is why they do what they do.
They are all legitimate, and many people earn money with each of the ways listed in this article.
What are the best money saving apps for iPhone? And what are the best money saving apps for Android?
Out of this list of apps, Acorns and Ibotta are two of the top-rated iPhone and Android apps. But that doesn’t mean those are the only ones you should check out. These companies all have very user-friendly and safe apps.
What are the best money saving apps?
To quickly recap the above, the best money saving apps include:
Personal Capital
Capital One Shopping
Upside
Fetch Rewards
Ibotta
Qapital
Yotta Savings
Swagbucks
Rakuten
Acorns
American Consumer Opinion
Neighbor
Survey Junkie
InboxDollars
Decluttr
Bestmark
RVshare
Get Jerry
Chime
Albert
The money saving apps above may help you to save money, cut your expenses, reduce your fees, build larger savings accounts, improve your spending habits, get rewards, make money, and more.
Free money sounds too good to be true, but there are actually a number of different ways to get your hands on money with no cost and very low effort on your part.
Here, we’ll take a look at more than 20 free money apps that will put some extra money in your pocket with minimal time or effort.
While you’re not going to get rich or generate a full-time income from these apps, you will be able to get a little bit of extra money that you can spend, save, or invest. And best of all, anyone can do it.
Best Free Money Apps
1. Swagbucks
Best for: Earning easy money in lots of different ways during your spare time.
If you’re looking to make some extra money in your down time, you’ll definitely want to check out Swagbucks. This popular website and app gives you several different ways to make money including:
Taking short surveys
Watching videos
Playing games
Downloading and installing apps
Taking advantage of special offers
Cashback for your online purchases
Using the Swagbucks search engine
Most people know Swagbucks as a survey app, and while that’s true, you can make more money with Swagbucks than most other survey apps because there are so many different ways to earn.
Each task or activity will earn you a specified number of points (referred to as “Swagbucks” or SB). After you’ve accumulated some SB, they can be redeemed for your choice of rewards, including cash via PayPal or a wide variety of gift cards.
The best way to earn significant amounts of money with Swagbucks is to take advantage of special offers. When you’re logged in to the dashboard, click on “Discover” to see the offers that are currently available. You might be able to earn Swagbucks by creating an account at a website, opening a bank account, starting a free trial, or any number of other things. The offers change frequently and if you take advantage of the highest-paying offers while they’re available, you can do pretty well with Swagbucks.
One of the many reasons to love Swagbucks is that you can redeem your rewards very quickly. While some sites/apps don’t allow you to cash out until you’ve earned $20 – $30 in rewards, Swagbucks allows you to redeem your rewards for as little as $3. They also run a lot of sales, which allows you to get a higher value gift card for your points.
Get Swagbucks here|Read our Swagbucks review
2. InboxDollars
Best for: Supplementing Swagbucks as another way to make money with easy tasks.
InboxDollars is very similar to Swagbucks. As an InboxDollars user, you’ll be able to make money by:
Taking surveys
Watching videos
Playing games
Printing coupons
Shopping online
Claiming special offers
Like Swagbucks, the best way to earn money quickly with InboxDollars is through the special offers. The available offers will change periodically, but as an example of what you’ll find, right now here are a few of the offers that I see in my dashboard:
$10 to get a free insurance quote
$2 to enter a competition/giveaway
$1.50 to download an app and create a free account
$2 to get a free credit score and credit report analysis
Those are just a few examples of what’s available. If you take advantage of these easy offers, you can earn a decent amount of money with very little effort.
Unlike Swagbucks and many other similar sites, InboxDollars doesn’t work on a point system. Instead of earning points that will be redeemed for prizes, you’ll earn real cash. Each task or offer has an assigned dollar amount that you’ll earn.
InboxDollars requires you to have a balance of at least $10 in order to redeem your cash.
Get InboxDollars here| Read our InboxDollars review
3. Survey Junkie
Best for: Making money with simple online surveys.
While you can make money by taking surveys with both Swagbucks and InboxDollars, Survey Junkie is a bit different. Instead of offering surveys plus several other ways to make money, Survey Junkie focuses exclusively on surveys.
If you want to earn cash through online surveys, the best approach is to use a few different websites and apps. If you’re really active, you may run out of available surveys from a particular app, until new surveys are added. Using a few different sites or apps gives you more possibilities. Plus, you can pick and choose the surveys you take since you’ll have more selection. You can opt to take only the surveys that allow you to earn the most money for your time.
Since Survey Junkie focuses exclusively on surveys, most people are able to make more at other sites like Swagbucks that have more options. However, if you’re looking specifically for surveys, there’s no better place to find them than Survey Junkie.
When you create an account and login to the dashboard, you’ll need to take a brief profile survey with some details about yourself so you can be matched up to the right surveys (you’ll also earn a little money for completing this intro survey).
Then you’ll see a list of the available surveys. Each one will list the amount that you’ll earn for completing it, as well as the estimated amount of time it will take to complete the survey.
Get Survey Junkie here.
4. Vindale Research
Best for: Supplementing Survey Junkie as a source of paid surveys.
Vindale Research is another survey website/app that allows you to earn money by:
Completing short surveys
Watching videos
Opening promotional emails
Referring your friends
Although Vindale offers a few different ways to make money, taking surveys is the primary offer here. You’ll earn real cash that can be redeemed by PayPal.
Vindale Research is a good option for anyone who wants to make money with online surveys. The income potential is not as high as Swagbucks or InboxDollars, but Vindale is worth including in your collection of sites/apps that you use for surveys.
Get Vindale Research here
5. Rakuten
Best for: Easy cashback for online purchases at thousands of websites.
Rakuten (formerly Ebates) is the most popular cashback website/app and you can save money on many of the purchases that you would be making anyway.
With a free Rakuten account, you’ll earn cash back at thousands of their partner stores and websites. While there are some options for cashback on in-store purchases, the majority of the offers are for online purchases.
Thankfully, using Rakuten is extremely simple. They offer a convenient browser extension you can install, and then whenever you visit a website that offers cashback through Rakuten, you’ll see a notice in your browser. All you need to do is click on that notification and Rakuten will track any purchases that you make and credit your count with the appropriate amount of cashback.
If you do any shopping online, using Rakuten is a no-brainer. It takes no extra effort and you can save money on a lot of the things you need to buy. The browser extension is awesome because you don’t even have to remember, it will notify you of opportunities. The browser extension will also automatically search for and apply coupon codes when you’re checking out, which will also save you a lot of money.
The amount of cashback you’ll earn will vary depending on the store and the specific purchase. It can range from 1% up to 50%.
One of my favorite things about Rakuten is the fact that you can stack these rewards on top of credit card rewards and other loyalty rewards to save even more.
Get Rakuten here | Read our Rakuten review
6. Ibotta
Best for: Cash back on grocery shopping.
Ibotta is another must-have cashback app. Unlike Rakuten, Ibotta is great for in-store purchase, as well as online shopping.
There are a few different ways you can use Ibotta:
Claim offers in the app and then scan your receipt after purchasing.
Link your store loyalty accounts from your favorite retailers to earn cashback faster.
Buy gift cards for your favorite stores and restaurants to earn cash back on the entire amount.
Earn cash back for online purchases that originate through the app or website.
With the help of Ibotta, you can save money on groceries, clothing, home goods, and more. Ibotta is easily one of the best ways to save money on groceries since they are partnered with many leading grocery stores and there are always a lot of offers available.
Before you go shopping, you’ll simply browse the current offers in the Ibotta app and claim the items that you want to purchase. After the purchase, you’ll scan the receipt using the Ibotta app and you’ll be credited for the offered items that you purchased. Alternatively, you can link your store loyalty account to Ibotta so you won’t need to scan receipts.
And just like Rakuten, Ibotta is great for stacking rewards on multiple levels. If you’re shopping for groceries, you can earn cashback through Ibotta, earn cashback or rewards through your credit card, and rack up loyalty points through the store’s program.
Get Ibotta here | Read our Ibotta review
7. Fetch Rewards
Best for: Supplementing Ibotta to save more money on groceries.
Fetch Rewards is another cashback app, but it was created specifically for grocery shopping. It works a little bit differently than Ibotta. You don’t need to claim offers ahead of time. You’ll simply do your shopping and then scan the receipt with your phone or submit the digital receipt for your online grocery shopping.
The best thing about Fetch Rewards is that it’s very easy to use since you don’t need to browse and claim offers before you go shopping. You’ll simply open the app and scan your receipts. At any time, you can browse the app to see the available offers and see what purchases will earn you money, but you don’t need to claim anything. The cashback will be automatically added when your receipt is scanned.
In general, most people earn more cashback with Ibotta, but Fetch Rewards is great to use in addition.
Once you’ve accumulated some rewards, you’ll be able redeem them for your choice of gift cards.
Get Fetch Rewards here | Read our Fetch Rewards review
8. MyPoints
Best for: Alternative to Rakuten, plus surveys and other ways to make money.
MyPoints has a cashback component that is similar to Rakuten. You’ll earn cashback for your purchases at all of their partner websites. MyPoints also has a browser extension you can install that will notify you of money-saving opportunities while you’re browsing.
In addition, you can also earn money in a few other ways like taking surveys, watching videos, playing games, and printing coupons. Like Swagbucks and InboxDollars, there are also special offers available through the dashboard that allow you to earn points quickly.
MyPoints uses a points system and then those points can be redeemed for gift cards or your choice of rewards. However, the conversion of points to dollars is not as straightforward as Swagbucks, so MyPoints can be a little confusing. For example, a $10 gift card might cost you 1,590 points. The fact that it’s not a round number makes it a little more challenging to know how much your points are worth.
If you’re looking to make money with surveys, special offers, or cashback, MyPoints is definitely and app that you should be using.
Get MyPoints here
9. TopCashback
Best for: Maximizing your cashback for online purchases (offers are sometimes better than Rakuten).
TopCashback is very similar to Rakuten and it’s one of the best ways to get easy cash back for your online purchases. They have a huge collection of more than 4,000 partner retailers offering cash back through their platform.
Rakuten is the most-well-known cashback program and probably the easiest to use, but TopCashback actually offers higher amounts of cashback in many cases. Of course, the details vary from one retailer to the next, but TopCashback has done a really great job of providing users with the best offers possible.
If you’re looking to maximize the cashback you earn, you should be using TopCashback in addition to Rakuten. Like Rakuten, TopCashback also offers a browser extension and mobile app that provide easy and convenient ways to save on many of the purchases you need to make anyway.
Get TopCashback here
10. Dosh
Best for: Automated cashback from participating merchants, including local retailers and restuarants.
Dosh is a cashback app that provides automatic cashback. When you download and install the app, you’ll link it to your credit cards or debit cards and then whenever you make a purchase at a participating retailer, you’ll automatically earn the cashback for your purchase.
When you’re in the Dosh app, you can view the offers from retailers and restaurants that are near you. You can also shop online through the app and earn cashback.
One of the nice things about Dosh is that you’ll find cashback offers from many smaller businesses and local restaurants, not just the major retailers and chains.
After you’ve earned some cashback, you can redeem it by having it transferred directly to your bank account.
Get Dosh here | Read our Dosh review
11. Pei
Best for: Automated cashback, plus savings through the app/website.
Pei is another cashback app that allows you to link a credit or debit card to earn automatic cashback. You’ll earn cashback automatically from purchases made in-store at participating retailers, and you can also browse the app or website to find offers for shopping online.
You can even use Pei as a search engine to search for merchants or products and see if there are any current offers.
Pei is a great app for earning cashback on in-store purchases because it’s so simple to use and there’s really nothing you need to do after linking your cards.
One of the most interesting things about Pei is that you can claim your rewards in Bitcoin instead of cash, if you prefer.
12. Lucktastic
Best for: A chance at winning large prizes by playing games.
Lucktastic is a free app that allows you to earn money and rewards by playing games. You can win expensive trips and huge cash prizes (up to $1 million) with Lucktastic.
If you’re not lucky enough to win one of the big prizes, you can still earn tokens as you play and redeem those tokens for your choice of gift cards.
While hitting it big with Lucktastic certainly isn’t something that everyone is going to do, it can still be a fun way to try and make some money while playing games in your spare time. If you’re looking for something that gives you a more predictable way to earn money, the options covered earlier in the article would be more appropriate for you.
Get Lucktastic here
13. Mistplay
Best for: Earning smaller rewards, like gift cards, for playing games.
Mistplay is another app (available only for Android) that pays users for playing games. You can find and discover new games, earn units based on how long you play, and redeem those units for your choice of rewards.
As you use the app, you’ll be able to unlock different achievement badges and earn more units.
To date, Mistplay has paid out more than $13 million in rewards. Try another app that pays you to game here: Gamehag
Get Mistplay here
14. Zap Surveys
Best for: A good source for surveys that actually pay out.
Zap Surveys is the #1 survey app, and by using the app you can get paid to share your opinion on a variety of topics. To date they’ve paid out over $30 million dollars in rewards to Zap Surveys members, and when you sign up with our link you’ll earn $6.25 on your first survey.
Types of surveys they have include:
High paying surveys where you will not only be rewarded, but we will also donate to child starvation every completed survey!
Logo polling – get paid to tell companies what design they should use for their next logo!
Surveys that appear based on your location!
There is no limit to the number of times you can cash out, but the minimum cash out is $25.00. Cash out with PayPal, Amazon gift cards or Visa gift cards!
Get Zap Surveys here
15. Nielsen Computer & Mobile Panel
Best for: A chance at monthly prizes, in exchange for your browsing data.
Nielsen is a data research company that’s willing to pay for your browsing data. Nielsen can be used on laptops in addition to mobile devices.
You’ll simply download it to your computer or device and let it run in the background. In exchange, you’ll be rewarded for leaving it active and have a chance to win the $10,000 that Nielsen gives away each month.
Get Nielsen Computer & Mobile Panel here
16. Embee Meter CX
Best for: Passive rewards for your mobile browsing data.
Embee Meter CX is another mobile data research app (Android only) that rewards you for providing access to your device. Simply install the app on your device and you’ll earn “meter points” for leaving it active.
You can redeem the meter points for cash through PayPal or your choice of gift cards. Like Nielsen and MobileXpression, Embee Meter CX is an easy way to earn a little something extra.
Get Embee Meter CX here
17. UpVoice
Best for: Passive rewards for visiting websites you probably already visit.
UpVoice is another easy way to earn something for the things you’re already doing. You probably already visit websites like Amazon, YouTube, LinkedIn, and Twitter on a daily basis, so why not get some rewards for it?
All you need to do is download UpVoice to your computer and let it run in the background. You’ll earn tokens whenever you visit these sites. After you’ve earned enough tokens, they can be redeemed for your choice of gift cards.
UpVoice obviously monitors your browsing, however, it’s anonymous and no personal data is tracked.
Get UpVoice here
18. Honeygain
Best for: Payment for sharing your internet access.
Honeygain is another option for earning money passively, but you don’t have to provide access to your data in order to do it. Instead, you’ll install Honeygain and it will allow users to access the internet from your location. There are a number of reasons why a business would want to do this, including testing to see what ads are being shown to a user at your location.
Other users don’t get any access to your data through Honeygain, and you’ll earn money for providing the internet access.
Like the other passive apps, you’re not going to get rich with Honeygain, but it does present an easy way to make a little bit of extra money.
Get Honeygain here
19. Rocket Money
Best for: Bill negotiation services to lower your monthly payments.
Rocket Money helps you to manage your finances in a few different ways, but the most significant is by reducing your monthly bills through negotiation. You can allow Rocket Money’s professional negotiators to work on your behalf to get you the best deal cable TV, internet access, mobile phone service, and more.
If Rocket Money isn’t able to save you any money, you’ll be charged nothing. If they are able to lower your bills, they’ll keep 40% of the savings.
Get Rocket Money here
20. Trim
Best for: Bill negotiation services to lower your monthly payments.
Trim is another bill negotiation service that’s similar to Rocket Money. Both companies offer some additional features and services as well, but the bill negotiation is the easiest way to save money.
Trim’s rates for bill negotiation are actually a little lower than Rocket Money. Just like Rocket Money, they won’t charge anything if they can’t save you any money, but they’ll take 33% of any savings.
Get Trim here
21. Paribus
Best for: Monitoring price changes for low-price guarantees and monitoring shipments from Amazon.
*Capital One Shopping compensates us when you sign up for Capital One Shopping using the links below.
Paribus from Capital One helps you to get easy money that is owed to you. You’ll sign up for free and link it to the email account you use for online shopping. Whenever Paribus sees a receipt it will automatically go to work.
After you’ve made a purchase, Paribus will monitor price changes and notifies you if the price has dropped on a purchase from a retailer with a price-match guarantee. They’ll tell you exactly what to do in order to get the refund that is owed to you.
Paribus also monitors shipments from retailers like Amazon and helps you to get compensation when a shipment is late.
Get Capital One’s other shopping tool, Capital One Shopping, to save money when you’re shopping online. The browser extenstion will tell you if you’re getting a good price, help you comparison shop and more. Read a full Capital One Shopping review here.
Get Paribus here | Get Capital One Shopping
22. Upside
Best for: Saving money on your gas.
Upside is a savings app that helps you to find the best prices on gas, and also get additional cash back savings once you find the best price.
Not only can you get cash back on gas, but many local restaurants, grocery stores and convenience stores have cash back offers available as well.
Upside works with major gas stations like Shell, BP, Exxon, Speedway, Holiday Stations and more. See gas prices near you at 9000+ stations and earn fuel rewards with real cash back every time you fuel up.
I’ve found that the stations near me typically advertise around $0.25 cents/gallon savings on their gas prices. You can also save additional money on the price by referring other users to the app.
We’ve been using the app quite a bit for Burger King and Wendy’s restaurants in our area as they give anywhere from 25-40% cash back on your order. That’s pretty awesome, and it usually stacks with cash back from other services like Dosh or Pei!
In checking our cash back history just now I realized we’ve earned over $1210 in cash back using Upside. I’ll take that!
You can cash out whenever you want in the app, and they pay cash back via PayPal, check, or gift card.
Sign up for the app through our link below, and use promo code: AFF25 to get an extra 0.25 cents/gal cash back on gas on your first fill-up.
Get Upside here
23. ReceiptPal
Best for: Making money on all of your receipts, no matter where they come from.
ReceiptPal is a receipt scanning app, similar to Fetch Rewards mentioned above. Often you can use multiple apps like this to earn rewards at more than one service. I personally use ReceiptPal and Fetch Rewards for most of my grocery receipts.
With ReceiptPal you earn rewards points simply for scanning all of your paper receipts, along with getting points for linked Amazon or email accounts where additional receipts can be counted.
For every 4 receipts you can you’ll get 100 points that you can use towards a reward. You can redeem your points with as little as 2200 points for a $5 Amazon gift card, or a Target, Lowe’s Best Buy or Visa gift card, among a few others. You can also refer other users and earn 250 points per user.
While it takes a while to earn rewards with ReceiptPal, I like it because it’s easy, and you’re taking something that wouldn’t otherwise earn rewards, scanning receipts, and monetizing it.
I just started using it a few months ago and so far I’ve been able to cash in my points for several $5 and $10 Amazon gift cards.
Get ReceiptPal here
Make Money With Apps In Your Free Time
While these apps may not make you rich, even a small amount of extra money is a good thing.
These free money apps work in various ways, but they all help you to make or save money with little-to-no effort needed.
Have your own favorite apps that you’ve used to make money? Tell us what they are in the comments!
Frequently Asked Questions
Are there apps that pay you cash?
Yes, there are countless apps that will pay you in cash, bitcoin and gift cards. I’ve earned thousands of dollars myself by using many of these apps, and you can too. Check out our full list of apps at Bible Money Matters for more information.
What apps pay you instantly?
Most apps allow you to earn points until you reach a certain payout threshold. Some secret shopper and gig apps like Field Agent, Gigwalk or Mobee will give you an instant payout. Uber and lyft will also allow you to do a same day cashout, although there are some limitations. Other services like DoorDash will offer an immediate payout once you’ve been with them for a while, but not before.
What cash back apps are the best?
My favorite cash back apps are Upside, Drop, Ibotta, Fetch Rewards and Dosh. Apps like Dosh, Drop, and Upside even work automatically with no receipt scanning or anything else, once you link a credit card. I use them the most becaause they’re the easiest to use.
What apps pay you money to play games?
There are a lot of apps and websites that pay you to play games. Some of the more popular ones include Swagbucks, Mistplay, Gamehag, Inbox Dollars, Lucktastic, MyPoints, and Bananatic.
Can you make money from apps?
Yes, you can make money from apps. Some apps will pay you for doing your online shopping using their app. Others will pay you to fill out surveys, or to scan your receipts from your in-store purchases. Others will pay you to perform small tasks, or to partake in the gig economy (dog walking, ridesharing, etc). Others you can use to sell your stuff, and then get a payout when it sells. It just comes down to deciding how much time you have to invest, and how much you want to make.
Which apps pay the most?
The highest paying apps are probably going to be the ones where you’re actually engaging in a side hustle to earn income. Apps like Uber, Lyft, Rover and other gig economy apps can help you to earn close to a full time income. Other apps will have good sign up bonuses that it pays to take advantage of. Empower has a $20 Amazon gift card to sign up, Ibotta has a $10 sign-up bonus. Otherwise, other apps may take a while to earn as much as you want.
Could you pay your mortgage, groceries, rent, insurance, medical expenses, and other bills on $2000/month? If you could, what kind of lifestyle might you lead?
Millions of retirees across America live it every day.
The Social Security Administration reports that 50% of elderly married beneficiaries and 70% of singles rely on Social Security for more than half of their monthly income. Considering that the average Social Security check is around $1361/month, this is a really tough place to be in for so many of these retirees.
And I’ve met them. Many of them.
Every year at my insurance agency, we meet thousands of baby boomers aging into Medicare at 65. We often see their shock, dismay, and confusion when they realize that the cost of their healthcare in retirement will easily eat up at least 20% to 30% of that Social Security check every month.
No matter how you slice it, even the best of the retiree budgeters out there are likely to have trouble making ends meet on Social Security income alone.
Sometimes when it comes to personal finance, budgeting isn’t the problem.
Sometimes income is the problem.
Fortunately, there’s good news on that front, because we live in an age where there are more opportunities to earn extra money than ever before. Our digital world has made this possible, and it couldn’t have come at a better time.
When you’re on a fixed income and struggling to make ends meet, a side hustle that pays you even a few hundred dollars a month can be a tremendous help.
At Boomer Benefits, we polled our Facebook fans – largely baby boomers and seniors – to ask what kind of side-hustles they are rocking out there in the real world. What we learned is that there’s a wide array of ways in which creative retirees are supplementing their Social Security income.
Today, I’ll share a few of their stories to give you some ideas for your own possible side-hustle that could potentially help to reduce financial worry and afford you a better lifestyle in retirement.
Teach From Home
Did you know that you can get paid to teach English without leaving your house? That’s right, and this is a perfect example of a retirement side hustle that exists today that would not have been possible ten years ago.
Valerie Heidel shared with us that she uses an online teaching platform called Cambly to teach English to students in Saudi Arabia, China, Japan, and even Brazil. She found this job opportunity by searching online for work from home part-time jobs. This work-from-home part was a must so that she could make her own schedule and work only when she feels like it.
What was also important to Valerie in finding a side hustle was the sense of purpose and productivity. And, because she has quite a few repeat weekly students, the job gives her spending cash. She earns $0.17 per minute that she is online with a student, which comes out to $10.20/hour.
Not bad for a job that doesn’t require her to leave her house. And this part-time gig doesn’t require a degree either. You can be approved for teaching gigs like this one in as little as two days (although for some applicants it can take up to two months).
Another retiree we spoke with shared how she used her part-time teaching income to transition into retirement. Our client Nancy was teaching full-time at one college while also teaching health courses part-time online as an adjunct instructor. When she was laid off from her full-time job unexpectedly, she was able to transition into semi-retirement by keeping the part-time health teaching.
J.D.’s note: When Kim’s father retired from teaching high-school English, he too picked up some extra cash by teaching college-level English classes online.
Nancy shared that she has a physical disability which would make it difficult for her to teach in a classroom or report to an office for work. The ability to teach right from her laptop through the school’s Learning Management System has even allowed her to work when she was hospitalized. Once the courses are created, her main duties are to respond to emails and grade assignments.
She loves that it keeps her active and says that she would be bored without this job, so she plans to continue teaching for as long as she possibly can.
Nancy shared that she and her spouse currently use her part-time income to supplement their Social Security income benefits so that they can avoid dipping into their retirement savings for as long as possible.
Takeaway: Nearly everyone has a skill that they could turn into a tutoring, teaching or mentorship position. In addition to Cambly, you can check for opportunities that fit your skills at sites like Tutor, Skooli, and Yup.
Turn Your Passion into Part-Time Income
Jeanine Handley has been a creative artist all her life and worked in graphic design. Now that she’s retired, she does remote graphic design work for clients out of her own home.
She’s also managed to turn this passion into a business right in her own neighborhood. Several years ago, when she relocated to Florida, she moved into a 55+ community. Many of the residents there are active seniors who want to learn and explore new things in their own retirement.
Jeanine noticed that many residents didn’t know how to use the camera and editing features on their smartphones. She helped one woman in her eighties with picking out a new smartphone and iPad and began weekly lessons to show her how to use both.
This blossomed into a course there in the community in which Jeanine helps to introduce other folks to smartphones and smartphone photography. She can communicate and teach these skills in a manner that other seniors understand and appreciate.
Jeanine charges a small fee for this and the money she earns helps to supplement her income and be able to afford some of the extra things like travel, entertainment, and dining out.
As an artist at heart, she doesn’t plan to ever retire this side hustle. Think about your own hobbies and passions. Could there be a way for you to turn that into an income-producing side gig?
Another side-hustler who plans to never retire is our client Billy who is a professional Santa Claus.
That’s right. Santa Claus! How cool is that for an income booster?
As a member of three professional Santa Claus organizations, Billy appears everywhere from schools and restaurants to big city events to spread the holiday cheer. He stresses that this side-hustle is one that really comes from your heart and not from the boots and suit that you wear.
He enjoys talking to children of all ages and listening to their needs. Sometimes the job can require emotional fortitude as the requests aren’t always about gifts or toys but sometimes may include a plea that Santa helps a child’s father find a job.
Yet even so, Billy admits that what he enjoys most is visiting homes of children who are either chronically ill or home-bound. These visits fulfill his heart while the side income he earns helps he and his wife to pay some of their expenses in retirement.
Being Santa can be a serious business both emotionally and professionally. Billy must pass a criminal background check each year and has regularly attended schools and seminars to perfect his craft. He’s also a member of three professional Santa Claus organizations.
Takeaway: Think about the things in your life that you absolutely love to do. Could your passion benefit someone else? How could you monetize that so that you can earn some income while performing activities that hardly feel like work at all?
Become a Contractor for Your Former Employer
When Roberta Baciak retired from working in a local school lunchroom, she felt so bad about leaving them that she volunteered to be a fill-in worker whenever they are short-staffed. They were quick to take her up on her offer, so now she works one day a week every week and sometimes gets called in on other days.
She also works from home 15 hours a week as an administrative assistance for a coffee shop and roasting company owned by her daughter and son-in-law. She takes care of their invoices, payroll, entering expenses into Quickbooks, sending statements and things like that.
Her side hustles have afforded her the ability to pay off some medical bills and to have some pocket cash to spend on little things her grandsons. She also loves the honor of helping her family with their growing business.
She plans on working as long as she can for her family and probably another year or so at the school lunchroom because she enjoys seeing her co-workers and the kids at school.
Roberta recommends that other retirees looking for side-income check with their local schools because lunchrooms are often looking for people who are willing to fill-in on an on-call basis.
Takeaway: Consider negotiating part-time employment with your last employer before retirement. You never know when they might agree! If that’s not an option, who do you know that has a business? Are there any part-time services that you could offer to them with your skills?
Get Financially Fit with Furballs
I honestly can’t think of a side gig I would enjoy more than getting paid to hang out with some fur kids. Busy working professionals are using pet sitting services more than ever – J.D. tells me he frequently uses Rover to book walks for his dog — and what’s great about this particular job is that you could work contract though a pet sitting service, or you could just post your services in neighborhood sites like Nextdoor.
This side hustle is really flexible because you can work only when you want to, and you can pet site in your own home or in someone else’s home for a little more cash.
I myself am a busy entrepreneur, working long hours at the office and frequently traveling for business. When I’m going to be gone overnight, I pay a friend’s mom, who is retired, to come and spend the night with my fur babies.
It helps me sleep at night to know that someone is caring for them, but I also know love that my pet sitter is a retiree who can really use the money to help her make ends meet. It’s a win-win for everyone.
Not sure about overnights? You could start with some day visits or dog-walking, both of which are other pet services that many working people willingly pay for.
Takeaway: This one is possibly the easiest side gig of all to get started in. Post on your favorite neighborhood app or sign up as a pet sitter or dog walker with sites live Rover or Wag.
What Will Your Next Side Hustle Be?
These are just a few of the fun and creative ways to earn extra retirement income that some of our own social media followers at Boomer Benefits have shared with us. No matter what type of work you used to do, there are endless opportunities for new things that you can do once you are retired to supplement your income from Social Security and investments.
If teaching or pet sitting aren’t your thing, check out our post on 50 Ingenius Ways to Earn Money in Retirement for additional inspiration. You might also check out Ryan Helms’ Hustle to Freedom podcast, which is one that I’ve referred dozens of people to when they’ve shared that they want to work part-time but aren’t quite sure doing what.
The key is understanding that our digital world really does make it easier than ever to put a few extra dollars in your pocket each month and sometimes just that little bit makes all the difference.
By Melissa2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 30, 2016.
No matter your political affiliation, you were probably irritated by this election season.
Most of America waited on bated breath to see who would become the next commander in chief. Democrats feared the worst if Trump became president, and Republicans feared a Clinton victory.
Now that we know Trump will become the next president, many people are contented, while others are either quietly grumbling, protesting, or pondering a move to Canada.
What’s done is done. Trump is elected, and it’s now time for all of us to take a step back and look at the fear that dominated this political election cycle. Each party worried about the repercussions, including financially, if the other candidate took office.
While politics can be frightening, I think part of our fear stems from how unprepared we as Americans now are to be self-sufficient. We spend all of our income and then some. We have no reserve to fall back on. That alone leads to fear.
Learning From Previous Generations
Generations of Americans have been much more self-sufficient than we are because they had to. There was no store to stop by to buy ingredients to make tonight’s dinner. There weren’t fresh vegetable shipped in from all around the world. People had to make their own meals and produce their own food. Money was not plentiful, so resourcefulness was required.
We can learn a great deal by learning from early generations.
Avoid Debt
Clara, who was the star of Cooking with Clara, said that she and her family were able to survive the Great Depression much better than their neighbors because her family owned their house outright and did not have debt.
By being resourceful and growing a very large garden, they were able to have enough food to eat. Because they owned their home and didn’t have debt, they could survive on very little. How many of us can say that today?
Have Ample Food Storage
Look in your refrigerator and freezer right now. If something happened and you were unable to buy groceries for two weeks, either because of a catastrophe or because you suddenly didn’t have the money, would you be able to survive? Previous generations routinely put up food to last them through the long winter months, but we no longer do that. Instead, we depend on going to the store every few days and buying what we need.
All it takes is one snowstorm for the shelves to clear. If you’re not prepared, you’ll have a much more difficult time. Our family likes to stock up during sales and fill the freezers and pantry. If worse came to worse, we have at least a week of food. After that, we’d still have food, but it wouldn’t be as well rounded as I’d like.
Savings
For much of the last half of the twentieth century, Americans saved their money. Now? Not so much.
“From the end of the Second World War until the early 1980s, the personal saving rate—personal saving expressed as a percentage of disposable income—gradually trended up. . .The picture was that of a fairly steady rise in the personal saving rate, from about 7-1/2 percent in the early 1950s to around 10-1/2 percent in the early 1980s. Since that time, however, the household saving rate has declined precipitously, and in the last couple of years, it has averaged only about 1-1/2 percent” (Federal Reserve).
If we want to feel more secure and better able to handle any political turbulence, we must look to our ancestors and begin to practice self-sufficiency again.
The idea that we can live on the edge financially without repercussions is a dangerous one. In many ways, it’s up to us to create our own financial security, regardless of which party assumes office.
How financially self-sufficient are you? What steps do you take to become self-sufficient?
Many people have dreams of living in a high-rise apartment in a bustling city, while others want a quiet life, unbothered by anything besides nature. But big city living and secluded country towns aren’t our only options. There’s a happy medium that’s quieter than the city, but more developed than the rural countryside — that’s where suburban neighborhoods come in.
The suburbs are often thought of as quiet, boring areas full of families with small children. While these areas are often filled with families, they aren’t always as uneventful and bland as you might think. Here’s what you should know about suburban neighborhoods and the life suburban residents live.
Suburban defined: What exactly is a suburb?
A suburban area is a cluster of properties, primarily residential, that are not densely compacted, yet located very near an urban area that is. Also referred to as “suburbs,” these areas are often located just outside of larger metro areas but can span even further, according to Pew Research Center.
Suburbs are not urban but still do not have any of the defining characteristics of a rural area like agriculture or open space. Suburban areas portrayed in popular culture often are familial and slow-paced.
The suburbs can suit everyone
Suburban areas are commonly associated with families, and not single people or young couples. However, this common association is really a misconception.
Especially with recent events leading to remote work environments, many young, single professionals are working from home. This has made living in a more mellow area in a spacious home more attractive since there’s room for a separate home office space —much more comfortable than working in a cramped, expensive apartment in the city.
Furthermore, as housing prices in urban areas skyrocket, younger folks are becoming unwilling or unable to pay rent. As a result, they’re moving out of the city and into more suburban areas.
What’s the difference between a suburban and an urban neighborhood?
It sometimes is difficult to distinguish what is a suburban neighborhood vs. an urban one or a rural area. In fact, depending on which definition you choose, the lines can blur. Suburban and urban neighborhoods differ in several key aspects.
Suburban neighborhoods are typically characterized by lower population density and a more spread-out layout. They often offer a quieter and more relaxed atmosphere with a focus on privacy and spaciousness. Suburbs tend to have more green spaces, parks and recreational areas.
On the other hand, urban neighborhoods are known for their high population density and compact living spaces. They offer a vibrant and bustling environment with close proximity to amenities, such as restaurants, theaters and museums.
Suburban neighborhoods
Suburban neighborhoods are typically located within a reasonable commute of an urban area. While they aren’t as densely populated as urban neighborhoods, they do have a fairly large population, although it’s more spread out over areas of single-family homes, rather than stacked-up apartment buildings.
Suburbs are primarily residential areas, although expect some commercial properties and businesses present. Housing is more affordable than in the main city centers and you’ll find larger homes with their own private yards, rather than smaller apartments or condos.
There aren’t as many amenities, such as restaurants or large shopping centers. However, there are grocery stores and usually a few restaurants and additional stores to provide for residents’ needs.
Urban neighborhoods
Urban neighborhoods are in the middle of all the action. They’re in the busy, downtown areas of a larger metro. With the location typically comes apartments and condos, rather than homes with their own yards.
Urban city centers are full of office buildings and commercial businesses. They also have lots of restaurants, shopping and entertainment options within close distance.
But being at the center of it all comes with a price — the cost of living is higher overall, with everything from rent to groceries costing more. Urban areas provide easy access to ample public transportation, which is almost necessary as owning a car is expensive since parking is often paid and spots often are far and few between.
Pros of living in a suburban neighborhood
Living in the suburbs has its benefits and many families choose to reside in such areas for various reasons.
Lower cost of living than in urban areas
Larger homes with bigger yards
Less crowded
Quieter and slower-paced environment
Many suburban areas cater to families specifically and will even have many parks and hiking trails surrounding them. Even if you don’t have a larger family with children, but you enjoy the outdoors or have a dog that likes to play outside, the suburbs better provide the amenities you’ll want.
Cons of living in a suburban neighborhood
While there are many pros to living in a suburban neighborhood, it does lack in some areas.
Less robust public transportation
A little uneventful at times
Fewer jobs available in the area (higher job competition)
Need to travel further for work and entertainment (restaurants, shopping, etc.)
With recent technology, some of these cons aren’t as applicable as they once were. Commuting to work is a major pain point for many living in the suburbs, but with so many companies becoming remote-first, it has eliminated that con for some.
Is suburban living right for you?
Living in the ‘burbs isn’t for everyone — but it is perfect for many folks who crave comfort and convenience. If you enjoy peace and quiet, want to live in a house instead of an apartment and don’t mind commuting to the office (which isn’t an issue if you work remotely), then a suburban neighborhood is a place for you. Find the right place for you today!
The student loan juggernaut, before it became a national scandal, was a way of life for many middle-class high school students like myself. Better known as a “necessary evil,” than a reason to be embarrassed or worried.
But you can’t change the past, so here is advice for students past and present — whether you’re about to make the leap and want a glimpse of your future or you are still recovering from the fall.
Prep for Success Student loans do not equal a free education, even if it seems like it at the time you sign on the dotted line. Put the math in terms you can accept: According to its 2012-2013 rates, one year at Princeton is like buying 109 iPads and paying for them for the next 30 years. Four years at Penn State is the same as buying a 1,867-year subscription to Forbes magazine. Talk about a legacy.
Many high schoolers just don’t think about what student loan debt means (not to discredit those who do, of course). But there’s a fine line between heading off to college because it’s what will benefit you the most and just doing what all of your classmates and peers are doing.
And remember: People will actually pay you to go to school. In the very rare case, a company you work for will foot the bill in exchange for years of your service. In other circumstances, nonprofits have money they need to get off their hands. They want to give it to you. You just have to prove that you aren’t a scammer and that you deserve it by responding to any and every essay scholarship you can find.
Minimizing Damage While Attending It seems like a common phenomenon for today’s college student to see attending college as a social outlet and not the investment in one’s future it really is. Newsflash: College ends. Friends move out of town, and the money stops coming in unless you get a competitive job.
By all means make the most of the social aspects of college, because networking is valuable too, but don’t over-network at the expense (literally) of your future financial happiness. Move off-campus and get your hands on some sub-$500 rent. Pick up an hourly job at Blockbusters (oh wait, they’re closed) or a super-sketchy gas station (oh wait, I regret that) and put that money not towards the bar tab, but towards your groceries. Then cook and pre-game at home to keep restaurant and alcohol costs down.
The very last thing you should be doing is rounding up when you calculate your expenses and using the “leftovers” as padding. Student loans don’t exist to make your life easier, they exist to help you get an education. Don’t take advantage because even if you skimp you’ll be paying for a long time.
Most importantly, major in something that will make money and leave your passions for your minor. You can read Hemingway and ponder 1700s French philosophy on your commute home from a high-paying corporate gig. You can even save for a few years while working there and then quit to do what you want while you pay your own way. The alternative is having some really cool ideas and then trying to make it in the freelancing world right out of college. The alternative isn’t that great.
Consolidating and Paying Off Maybe all of this information comes too late. Well, never fear, the US government is here.
If you have loans spread among different banks and all of the loans are in your name, you may be eligible to consolidate those loans into one big loan (and one big payment) by visiting Direct Consolidation Loan, a government website.
You’ll also have the option of choosing an Income-Based Repayment plan if you aren’t making very much, or even getting your loans forgiven after a period of time for working in a public service industry (check the website for more details).
For a more in-depth look at consolidating your student loan debt, look no further than the GRS archives.
Stay Motivated Loans can be paid, and the clutches of debt can be escaped. Use the resources here at Get Rich Slowly to manage your income — no matter how much or how little there is of it — to get out of debt. Even student loans, once considered “good debt,” are now an uncomfortable mark on your credit report… and more importantly, on your standard of living.
But make sure you’re informed, not afraid, and if you regret the choices you made, you can start saving for your kids early. After all, that’s the kind of legacy you want to leave.
A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Its purpose is to provide an easily accessible avenue for frequent transactions such as paying bills. As a tool in your money management kit, understanding how much money you should keep in your checking account is crucial for optimal financial health.
Factors to Consider When Determining How Much Money to Keep in Your Checking Account
Monthly Expenses
Your checking account balance should reflect your exact living expenses, plus a little extra for safety. Monthly expenses vary for everyone. They can be divided into fixed expenses (like rent and utilities) and variable expenses (like groceries, entertainment, seasonal and occasional expenses).
Income Frequency and Stability
If you have a regular income and know exactly how much money you’re getting every pay period, you can plan to keep just enough to cover a couple months worth of expenses plus your extra safety net. If your income fluctuates, it might be prudent to keep a bit more.
Personal Comfort Level and Financial Goals
Everyone’s financial situation and goals are different. Some might feel comfortable with a larger buffer in their checking accounts, while others might prefer to invest or move their excess into savings accounts to earn interest.
Emergency Expenses and Financial Buffer
Life is unpredictable. Having an emergency fund in your checking account for unexpected expenses such as medical emergencies or urgent car repairs can save you from financial distress. A rule of thumb is to have 3–6 months’ worth of living expenses set aside in your emergency savings.
General Rules of Thumb for Checking Account Balances
Covering Monthly Bills
The balance in your checking account should always be able to cover your monthly bills without resorting to overdrafts. Overdraft fees can add up and end up being a significant drain on your finances.
Overdraft Protection
It’s wise to keep a buffer against unanticipated expenses. This isn’t just an ATM transaction that went over your available balance, but also potentially a check that was cashed later than expected. An overdraft protection plan can prevent an empty or overstuffed checking account.
Extra Cushion
Even with all your expenses accounted for and a buffer for emergencies, it can be prudent to maintain an additional cushion. This can help cover seasonal and occasional expenses without the risk of an overdrawn account.
Benefits and Risks of Keeping Large Balances in Your Checking Account
Benefits
There’s convenience and flexibility in having a robust checking account. It serves as overdraft protection and ensures you have enough money for just about anything. Moreover, having that much money at hand can feel comforting.
Risks
Having too much money in your checking account comes with risks, such as missed investment opportunities. Money in a checking account typically doesn’t earn interest, or if it does, the interest rates are often significantly lower than savings or money market accounts.
There’s also the risk of exposure to fraud and theft. While financial institutions do their best to protect your checking account numbers and other data, no system is completely foolproof.
Strategies to Optimize Checking Account Use
Regular Monitoring and Rebalancing
Understanding how much cash you’re spending and keeping track of your available checking account balance is key. It allows you to adjust your balance based on your spending habits and helps keep your checking account well-funded without being overstuffed.
Use of Budgeting Tools and Apps
Budgeting tools can help you understand your monthly spending better. They can automate the tracking process and give you a clear picture of how much money you need in your checking account each month.
Automatic Transfers
Setting up automatic transfers to your savings account or emergency fund can help you grow those funds consistently. Just ensure that this doesn’t leave your checking account underfunded.
Splitting Direct Deposits
You can opt to split your direct deposit into different accounts. This can be a valuable tool for maintaining an adequate balance in your checking account while also ensuring your savings accounts and investment accounts are consistently growing.
Regularly Reviewing and Adjusting Based on Changing Financial Situations
Life changes can significantly affect how much money you need in your checking account. Regular reviews of your finances can help you adjust to changes like new monthly bills, increased living expenses, or changes in your income.
Alternatives to Keeping Excess Money in a Checking Account
Savings Accounts
Savings accounts typically offer higher interest rates than checking accounts. Transferring excess money into a savings account can help you earn more over time, making it a safer bet for your surplus funds.
Investments
Investing can offer higher returns than deposit accounts that pay interest at a bank, though it comes with more risk. If you find you have too much cash in your checking account regularly, it might be worth speaking with a financial advisor about investment opportunities.
Money Market Accounts and High-Yield Checking Accounts
Money market accounts and high-yield checking accounts can provide higher annual percentage yield than regular checking and savings accounts. These accounts can be a good place to keep excess money that’s still relatively accessible.
Bottom Line
While the average checking account balance varies by individual, a rule of thumb is to keep enough to cover a month or two of expenses. In addition, keep a cushion for emergencies and any potential bank failures.
Maintaining a balance that is too high means your money isn’t working for you, and could be better used in a high yield savings account or investment. On the flip side, you don’t want to risk overdraft fees from an empty or overdrawn account.
Ultimately, the best way to determine how much money to keep in your checking account is to monitor your finances closely. Understand your monthly expenses and personal comfort level, and regularly review your situation.
The key is balance. An overstuffed checking account means missed opportunities elsewhere, but a checking account well funded enough to cover your bills, a buffer for emergencies, and a bit extra for unexpected expenses will keep your financial life running smoothly.
No matter what, it’s your money. Understanding the ins and outs of bank accounts, especially your checking account, is key to ensuring your money works best for you.
Frequently Asked Questions
Can my bank account balance affect my credit score?
No, the amount of money in your checking or savings account doesn’t directly impact your credit score. However, good money management habits like avoiding overdrafts, paying bills on time, and maintaining a healthy balance can indirectly contribute to your overall financial health.
Is my money safe in a checking account?
Yes, your money is typically safe in a checking account. Most checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to a limit of $250,000. However, always verify that your bank is FDIC-insured.
What if my checking account balance goes negative?
If your account balance goes negative, you’ll likely face overdraft fees. Some banks offer overdraft protection programs that link your checking account to a savings account or credit card to cover the shortfall. However, these services often come with fees, so it’s better to avoid overdrawing your account whenever possible.
Should I have multiple checking accounts?
Having multiple checking accounts can be beneficial for managing different financial objectives or expenses. However, keep in mind that each account may have its own set of fees and minimum balance requirements.
What happens to the money in my checking account when I use my debit card?
When you use your debit card, the amount of the transaction is subtracted from your balance. So, it’s crucial to ensure that you have enough money in your account to cover any purchases made with your debit card.
What happens if I don’t meet the minimum balance requirement for my checking account?
If you don’t meet the required minimum balance, your bank may charge you a monthly maintenance fee. The specifics can vary widely from bank to bank, so it’s best to check with your financial institution about their policies.
How can I avoid monthly maintenance fees on my checking account?
Some ways to avoid monthly fees include meeting balance requirements, setting up direct deposit, or using your debit card a certain number of times per month. Each bank has different policies, so it’s important to understand what your bank requires to waive these fees.