Slowing job growth doesn’t mean a recession, but today’s jobs report tells me that the significant job gains we were accustomed to in the early part of the COVID-19 recovery period are ending, which ties nicely to how I thought labor would recover after COVID.
Even though the headline number on the report today beat estimates, we are entering a new phase of the economic cycle, which means you need to know where to look to get clues for a recession. The BLS jobs report data isn’t the best recession indicator, which we can all see since the recession of 2023 — forecast by so many — didn’t occur.
Here are my three key points on the labor market recovery since I retired my COVID-19 recovery model on Dec. 9, 2020:
1. Job openings should get to 10 million. (We eventually got to 12 million) We’re now down to 8.8 million. 2. We should get back all the jobs lost to COVID-19 by September of 2022. That checked off roughly on schedule, see here. And the third is the most important one at this stage of the cycle: 3. If we didn’t have COVID-19, the total employment in America would have been between 157 million-159 million today. We are there now, and since population growth is slowing down, we shouldn’t have big labor reports going out, which will be perfectly normal.
Let’s take a look at today’s jobs report.
From BLS:Total nonfarm payroll employment increased by 216,000 in December, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued growing in government, health care, social assistance, and construction, while transportation and warehousing lost jobs.
Here are the jobs that were created and lost in the previous month:
In this jobs report, the unemployment rate for education levels looks like this:
Less than a high school diploma: 6.0%
High school graduate and no college: 4.2%
Some college or associate degree: 3.1%
Bachelor’s degree or higher: 2.1%
It’s jobs week, so we had four total reports. The job openings data was interesting because the quits percentage and hires are now below COVID-19 levels, which means the Federal Reserve is too restrictive with their policy today since the growth rate of inflation has fallen more than they thought.
However, the labor market isn’t breaking: jobless claims data is almost below 200,000. I will not go into full recession mode until this data line breaks over 323,000 on the four-week moving average. Don’t make the same mistake so many Wall Street people did in 2022-2023 by thinking a slowing down is a job loss recession. We aren’t there yet.
Of course, the 10-year yield had a wild day today. It shot up toward 4.08%, then fell to 3.96% after the poor ISM service print, and ended the day 4.05%. Some people might not understand yet how bad the ISM service print was, which could be one reason bond yields header higher later in the data.
Here is the chart of the 10-year yield before jobs Friday. The trend was going lower, but we hit a critical resistance level of 3.80%:
So, what do we make of the labor market after jobs week? Yes, it’s getting softer as the job openings/quit percentage data has been telling us. The significant job gain reports are past us now, and we are starting to get back to our regular pre-COVID-19 trend of job growth data.
Does this mean the labor market is breaking? No, but we don’t want the Fed to wait for jobless claims to break above 323,000 on the four-week moving average to cut mortgage rates. So, hopefully, the Fed realizes they overhiked and should be doing cuts to land the plane since the inflation growth rate has fallen faster than they thought.
Do you have some big savings goals this year? Or maybe there are a few things you’d like to buy, but need to save up for first. Saving money isn’t impossible—but you do need to be smart.
Wondering how to save for big purchases? Honestly, it depends on a lot. You have your own unique and personal needs, budget, and financial situation. So what works for you might not work for someone else. But, no matter your savings goal, saving money is essentially the same process for everybody. You need to spend less than you bring in.
Psst—keep reading to learn how to jump-start your savings for a limited time with Fifth Third Bank! >>
How Do You Budget for Big Purchases?
If you’re looking for a place to start, we have a few suggestions that can help. Here are a few things you can do to save up:
Define what the upcoming big purchases are, including amounts.
Save by paying yourself first out of your income.
Set SMART goals you can actually meet.
Use the 50/20/30 rule to incorporate goals into your monthly budget.
Open a high-interest savings account to maximize potential savings.
Use microsavings/investing apps to make additional contributions to savings.
How to Save for Big Purchases in 2024 and Beyond: the Details
Following the list above can help you save money for big purchases this year without giving up your entire lifestyle. But you have to know how to put these tips into practice when saving for a big purchase. Get some more tips and details below.
1. Define Upcoming Big Purchases
Begin by determining what you’re going to save for and knowing that you can’t save for everything. Can you save $10,000 this year to put down on a house? Maybe, but you may not be able to save for the new car and a trip to Disneyland at the same time. How much you can save in a certain period of time depends on your resources and obligations, so this is a step that’s different for everybody.
Once you determine what you’re saving for, make it official. Write your goal on a whiteboard in the home office, put it on a piece of paper on the fridge, and tell a trustworthy friend or family member about it. Writing it down and sharing it actually makes it more likely you’ll work toward the goal. Research shows that writing down and imaging a completed goal makes you 1.2 to 1.4 times more likely to successfully reach that goal.
2. Pay Yourself First
Once you start saving, know that you need to put savings first. You definitely shouldn’t save so much out of every paycheck that you can’t cover your bills. But if you decide that your monthly budget allows you to save $150 every two weeks, the first thing you should do when you get paid is move that money into a savings account.
The main reason for doing this is that it makes the money less tempting to spend. If you wait until you’ve done all your spending for the week, you might find that your $150 in savings was eaten up by running to the coffee shop, splurging on a movie, and buying a new shirt you wanted but didn’t necessarily need.
You can help ensure you pay yourself first with a couple of tips:
Break up your direct deposit. If your employer offers direct deposit, you may be able to ask them to deposit a certain portion of each check into a savings account while the rest goes into checking.
Set up automated transfers. You can have a specific amount moved from checking to savings every week by automated bank transfer. That way, you don’t have to remember to take your savings out of the picture on paydays.
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3. Set SMART Goals
SMART stands for specific, measurable, attainable, relevant, and timely. This type of goal can be helpful when saving money over time for a large purchase.
Find out exactly how much you need to make the purchase. “Saving enough to buy a car” is a decent goal, but you’re more likely to achieve a more specific goal, such as “saving $20,000 to buy a car.”
When you’re specific, you can break the goal down in measurable bits. In the car example, if you want to buy the car in two years, you know you need to save an average of $834 a month.
You need to be realistic. If you make $4,000 a month and have $3,000 in debt to pay, saving $834 a month is not really attainable. That would leave you with $166 for food and living expenses for the entire month. In that case, you’d need to reduce your goal, reduce your debt, or increase your income.
Make sure your goal is relevant to what you really want and need in the future. Do you really want a new car, or are you saving up for one based on some societal pressure to have one?
Finally, set a deadline for your goal. That lets you break it down into smaller, more easily achievable chunks that lead up to that deadline.
4. Use the 50/20/30 Rule for Budgeting
The 50/20/30 rule of budgeting is a bit more flexible than the traditional line-item budget. In the line-item budget, you set the amount you want to spend on each area of your life, including options such as bills, gas, clothing, entertainment, and savings.
The 50/20/30 rule only breaks your budget into three major categories. Half of your income goes to “needs”, which includes food, rent, health care, and utilities.
Then, 30% of your income goes to wants. That includes options such as entertainment, travel, clothing that isn’t “necessary,” and dining out. The rest of the income—20%—goes toward savings.
So, if you make $4,000 a month, that would leave $800 for savings if you can align all your spending and debt with the numbers above. You might want $400 of that savings for general purposes and retirement. That leaves $400 to go toward your big-purchase goal.
One way to manage your budget is with an app. Find a budget app that works with the budget and savings style you choose.
5. Open a High-Interest Savings Account
Once you start saving, consider maximizing it with a savings account that generates the highest yield. Shop for a high-interest savings account that balances risk and reward in a way that works best for your goals.
6. Use Microsavings and Investing Apps
Another way to implement savings is to use microsavings apps or investment apps such as Acorns. These apps let you make investments with small dollar amounts—investments that might yield more interest than even a high-yield savings account.
Microsavings also makes it easy to save money every day. These apps often let you round up your purchases at registers and have the change transferred to your savings. It’s a few cents a day, but it can add up.
How Can I Save $1,000 Fast?
The steps above work well for saving almost any amount. But if you’re trying to save up $1,000 for a starter emergency fund or other expense quickly, here are a few other tips you might try:
Add a temporary income stream. Can you babysit kids in the neighborhood, mow lawns, make something to sell, or pick up a seasonal part-time job? Having a side gig can help you save money faster.
Dump some of your wants temporarily. You can temporarily move a portion of income from wants to savings by canceling cable for a few months or cutting down on dining out.
Don’t pay extra on debts. Paying off your debts is important and can be a good move if you want to save more money in the long run. But it’s also important to have some emergency savings to keep you from driving up debt any time something unplanned occurs. Reduce extra debt payments to save that money faster.
You Can Save Money—but You Have to Be Smart
There’s no magic answer for how to save for big purchases. It involves setting realistic goals, working to achieve them, and spending less than you bring in. Following the steps above can be a way to get started on that work, but don’t forget to create a safe place where those savings can be stored until you’re ready for the purchase. You can visit Credit.com to learn more ways you can master your finances.
For those who are at or getting close to retirement age and are looking for ways to rev up their cash flow, a reverse mortgage may seem like a wise move. After all, the TV ads make them look like a simple solution to pump up the money in one’s checking account.
A reverse mortgage can be a way to translate your home equity into cash, but, you guessed it: There are downsides along with the benefits. Whether or not to take out a reverse mortgage requires careful thought and research.
Here, you’ll learn the pros and cons to these loans, so you can decide if it’s the right move for you and your financial situation.
Reverse Mortgages 101
There are many different types of mortgages out there. Here are the basics of how reverse mortgages work.
• A reverse mortgage is a loan offered to people who are 62 or older and own their principal residence outright or have paid off a significant amount of their mortgage. You usually need to have at least 50% equity in your home, and typically can borrow up to 60% (or more, but not 100%) of the home’s appraised value.
• The lender uses your home as collateral in order to offer you the loan, although you retain the title. The loan and interest do not have to be repaid until the last surviving borrower moves out permanently or dies. A nonborrowing spouse may be able to remain in the home after the borrower moves into a health care facility for more than 12 consecutive months or dies.
• Here’s another aspect of how reverse mortgages work: Fees and interest on the loan mean that over time, the loan balance increases and home equity decreases.
• You may see reverse mortgages referred to as HECMs, which stands for Home Equity Conversion Mortgage. This is a popular, federally insured option.
💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you through the process.
Pros of Reverse Mortgages
A reverse mortgage offers older Americans the opportunity to turn what may be their largest asset — their home — into spendable cash. There are a variety of ways in which this can be attractive.
Securing Retirement
Many seniors find themselves with a fair amount of their net worth rolled up in their home but without many income streams. A reverse mortgage is a relatively accessible way to cover living expenses in retirement.
Paying Off the Existing Home Loan
While you have to have some of your home loan paid down in order to qualify for a reverse mortgage, any remaining mortgage balance is paid off with reverse mortgage proceeds. This, in turn, can free up more cash for other expenses.
No Need to Move
Those who take out reverse mortgages are allowed to remain in their homes and keep the title to their home the entire time. For established seniors who aren’t eager to pick up and move somewhere new — or downsize — to lower expenses, this feature can be a major benefit.
No Tax Liability
While most forms of retirement funding, like money from a traditional 401(k) or IRA, are considered income by the IRS, and are thus taxable, money you receive from a reverse mortgage is considered a loan advance, which means it’s not.
Heirs Have Options
Heirs can sell the home, buy the home, or turn the home over to the lender. If they choose to keep the home, under HECM rules, they will have to either repay the full loan balance or 95% of the home’s appraised value, whichever is less.
Thanks to FHA backing, if the home ends up being worth less than the remaining balance, heirs are not required to pay back the difference, though they’d lose the house unless they chose to pay off the reverse mortgage or refinance the home.
Recommended: Guide to Cost of Living by State
Cons of Reverse Mortgages
As attractive as all of that may sound, reverse mortgages carry risks, some of which are pretty serious.
Heirs Could Inherit a Loss
While heirs may not be forced to pay the shortfall of an upside-down reverse mortgage, inheriting a home in that scenario could come as an unpleasant surprise. Keeping a home in the family is an accessible way to build generational wealth and ensure that heirs have a home base for the future. Therefore, the potential for them to lose — or have to refinance — the house can be painful.
Losing Your Home to Foreclosure
Unfortunately, losing your house with a reverse mortgage is a possibility. You’ll still be required to pay property taxes, any HOA fees, homeowners insurance, and for all repairs, along with your regular living expenses, and if you can’t, even with the reverse mortgage proceeds, the house can go into foreclosure.
Reverse Mortgages Are Complicated
As you probably realize this far into an article explaining the pros and cons of reverse mortgages, these loans aren’t exactly simple. Even if you understand the basics, there may be caveats or exceptions written into the documentation.
Before applying for an HECM, you must meet with a counselor from a HUD-approved housing counseling agency. The counselor is required to explain the loan’s costs and options to an HECM, such as nonprofit programs, or a single-purpose reverse mortgage (whose proceeds fund a single, lender-approved purpose) or proprietary reverse mortgages (private loans, whose proceeds can be used for any purpose).
Impacts on Other Retirement Benefits
Although your reverse mortgage “income” stream isn’t taxable, it may affect Medicaid or Supplemental Security Income benefits, because those are needs-based programs. (Proceeds do not affect Social Security or Medicare, which are non-means-tested programs.)
Costs of Reverse Mortgages
Like just about every other loan product out there, reverse mortgages come at a cost. You’ll pay:
• A lender origination fee
• Closing costs
• An initial and annual mortgage insurance premium charged by your lender and paid to the FHA, guaranteeing that you will receive your expected loan advances.
These can be rolled into the loan, but doing so will lower the amount of money you’ll get in the reverse mortgage.
Reverse Mortgage Requirements
Not everyone is eligible to take out a reverse mortgage. While specific requirements vary by lender, generally speaking, you must meet the following:
• You must be 62 or older
• You must own your home outright (or have paid down a considerable amount of your primary mortgage)
• You must stay current on property expenses such as property taxes and homeowners insurance
• You must pass eligibility screening, including a credit check and other financial qualifications
Recommended: How Homeownership Can Help Build Generational Wealth
Is a Reverse Mortgage Right for You?
While everyone interested in a reverse mortgage needs to weigh the pros and cons for themselves, there are some instances when this type of loan might work well for you:
• The value of your home has increased significantly over time. If you’ve built a lot of equity in your home, you probably have more wiggle room than others to take out a reverse mortgage and still have some equity left over for heirs.
• You don’t plan to move. With the costs associated with initiating a reverse mortgage, it probably doesn’t make sense to take one out if you plan to leave your home in the next few years.
• You’re able to comfortably afford the rest of your required living expenses. As discussed, if you fall delinquent on your homeowners insurance, flood insurance, HOA fees, or property taxes, you could lose your home to foreclosure under a reverse mortgage.
There are options to consider. They include a cash-out refinance, home equity loan, home equity line of credit, and downsizing to pocket some cash.
The Takeaway
A reverse mortgage may be a way to turn your home equity into spendable cash if you’re a qualified older American, but there are important risks to consider before taking one out. While reverse mortgages can free up funds, they are complicated, can involve fees, and can wind up putting your home into foreclosure if you can’t keep up with payments.
Reverse mortgages are just one of many different mortgage types out there — all of which can be useful under the right circumstances. SoFi doesn’t offer reverse mortgages at this time but has an array of home loan products that may meet your needs.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
Photo credit: iStock/Prostock-Studio
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
A Medicare flex card is a preloaded debit card offered by some Medicare Advantage plans that members can use for certain expenses like over-the-counter health items, assistive devices and utilities.
Although flex cards for seniors are associated with Medicare, they’re not provided by the government. They’re a potential benefit from Medicare Advantage plans, which are a bundled alternative to Original Medicare plans and sold by private health insurance companies.
What do Medicare flex cards cover?
Costs you pay for with your Medicare flex card vary by plan, but some common categories include:
Groceries (such as healthy items like vegetables and fresh meats).
Utilities (such as gas, water and electricity).
Over-the-counter health items (such as toothpaste and vitamins).
Assistive devices (such as handrails, shower stools and temporary mobility ramps).
Allowance for health care costs (such as dental, vision or hearing care).
Fitness (such as fees for sports facilities or fitness classes).
Weight loss (hospital- or non-hospital-based programs).
Compare Medigap plans
How do you use a flex card for seniors?
Flex cards are typically preloaded at monthly, quarterly or annual intervals with an allowance you can use toward one or more categories. You might be able to choose the category you want to use your flex card for, or your plan may offer a flex card for a specific cost, such as dental or vision care expenses.
You can use your prepaid flex card like you’d use a debit card: Present it at checkout and the money will be deducted from your flex card balance. You might also be able to use it to buy things online.
How much money is on a flex card for seniors?
The amount of your benefit will depend on your plan. Common benefit amounts range from $250 to $1,500 per year. Your plan may offer different benefit amounts for different categories.
How do you get a Medicare flex card?
Medicare flex cards are available with certain Medicare Advantage plans. If you choose Medicare Advantage, you can compare plan benefits and look for a plan that offers a flex card.
However, don’t choose a plan solely for the flex card benefit. Make sure you carefully compare Original Medicare and Medicare Advantage and find the best plan for your needs overall, including making sure your doctors are in-network and your prescription drugs are covered.
Some Medicare Advantage providers only offer flex cards for members who meet certain requirements, such as having a certain chronic condition. And you may live in an area of the country where a plan with a flex card isn’t an option for you.
Another strong jobs report finished off a remarkably solid year for labor in 2023. Among the highlights:
Job growth continued. The Bureau of Labor Statistics data shows the U.S. economy once again beat expectations for jobs gains at 216,000 for December, the latest in a 36-month trend of growth. For 2023, job growth came in at 2.7 million, with an average monthly gain of 225,000. By comparison, 4.8 million jobs were added in 2022, with an average monthly gain of 399,000.
Unemployment remained low. The unemployment rate stayed steady at 3.7%, and rates are on a streak of 23 months below 4% — a stretch unseen since the late 1960s, Bureau of Labor Statistics data shows.
Wage growth remains elevated. Wage growth came in at 4.1% over the prior 12 months — that’s good news for workers, but higher than the Federal Reserve might like as it determines when it begins cutting rates in 2024.
A tight labor market, falling inflation and persisting economic growth all form a strong economic picture heading into 2024. But high interest rates remain, as do elevated prices. NerdWallet spoke with Jared Bernstein, chair of the White House Council of Economic Advisers to get his take on Friday’s jobs report, consumer sentiment and the economic look ahead.
The following interview has been edited for length and clarity.
NerdWallet: In 2023, inflation fell, the labor market steadily cooled, we saw higher-than-expected GDP growth and avoided a recession. Many economists seem surprised that the Fed was able to ease inflation without tanking the job market or tipping us into a recession. Are you surprised at where we stand right now?
Jared Bernstein: I wouldn’t say I’m particularly surprised. And in fact, we’ve long argued publicly that the goal was to maintain the tight labor market while easing inflationary pressures. I think President Biden views that as a key way to both empower workers with the maintenance of the tight job market while giving families some breathing room with easing inflation and even some lower prices. Substantively, an important piece of this is recognizing that supply chain normalization and the improvement of the economy’s supply side — whether it’s logistical supply chains or the increase in labor supply — have also helped in that regard. And that’s a good way to reduce inflationary pressures without dinging the demand side of the equation.
NerdWallet: Last year, job gains were mainly in three areas: health care, government, as well as leisure and hospitality. How much of the 2023 job growth can we attribute to a rebound from the pandemic, and how much can we attribute to underlying economic growth?
Jared Bernstein: I think by the time you’re in 2023 a chunk of the rebounding is behind you. Certainly the biggest numbers. One way to think about this is that in ’21 the average monthly job gain was 600,000 a month — so that’s huge and it has some rebounding clearly embedded in it. And in ’22 the analogous number that’s the average monthly job growth was about 400,000. And in ’23 it was around 200,000 and 225,000. So there’s kind of a stepladder there that gets you more into a steady, stable growth path.
I think by the time we got into ’23, we really executed on the president’s plan to maintain a tight job market and to get wages rising. That is such a key — real wages beating prices. Look, in an economy that’s 70% consumer spending like this one, if American consumers are facing a tailwind of a strong job market and easing prices, rising real pay, that’s a pretty good forward-motion machine. I think that’s a lot of what we saw in ’23.
NerdWallet: So is there some economic vulnerability in having growth concentrated in so few sectors? Some of the more interest-rate-dependent industries, for example, have shown little to no growth. And other areas like transportation and warehousing that boomed during the pandemic are now seeing some decline.
Jared Bernstein: Well, I get paid to worry about everything, so I’ll never say, ‘Oh, nothing to see there,’ but I think that caution has been somewhat overplayed. Lots of industries created jobs. I think 70% of the industries contributed in ’23, some more than others, as you say. If you think interest rates are more likely to be down than up next year, then that should be helpful to some of the interest rate-sensitive sectors that you mentioned, upwardly speaking.
If I look at the sectors that did create the most jobs, some of them are very large and significant sectors — private services, for example. We saw some great manufacturing numbers this year, more in the first half than in the second half of the year.
We also know that we had good construction numbers, and not so much in residential buildings, but more in nonresidential. And I think some of that really links up to factories that are being built. There’s hundreds of billions of capital that’s come in from the sidelines supported by the Inflation Reduction Act and the Chips Act. We’re actively building manufacturing facilities in this country to stand up the domestic industry of chips with electric vehicles, batteries and that should lead to more manufacturing jobs once those factories come online.
“ Executing on the president’s agenda has led to a situation where things are looking a lot better than people thought they would. And I think as time goes on, we’ll see more positive reporting when it comes to consumer sentiment.”
Jared Bernstein, chair of the Council of Economic Advisers
NerdWallet: I want to shift to consumer sentiment and approval of President Biden’s economic management — both slumped for most of the year, but at least one recent poll shows that the tide may be turning in that respect. How do you understand the disparity between the economy’s many objective strengths and consumer discontent?
Jared Bernstein: Well, I think it takes some time for the dynamics that you and I have been talking about to reach into people’s lives, and there’s a consciousness deep enough that it shows up in some of these indices of confidence and sentiment. And that’s why the December numbers, as you suggest, are a positive glimmer there. It’s one month, so it’s not a new trend, but the consumer confidence survey was up 10%; the University of Michigan sentiment survey was up a whopping 14%; there was some other polling that began to show this morphing in the way you suggested.
I think one of the things that’s going on there, again, has to do with this intersection of the very strong job market while inflation is easing. So we see real wage gains; wages are beating prices now for 10 months in a row for middle-wage workers. A lot of economists and I think it was 90% of CEOs a year ago said we would be in a recession. So executing on the president’s agenda has led to a situation where things are looking a lot better than people thought they would. And I think as time goes on, we’ll see more positive reporting when it comes to consumer sentiment.
NerdWallet: Interest rates are something that’s obviously on the mind of the market and consumers. Can you comment on the effect today’s jobs report might have on the timing of Fed’s rate cuts?
Jared Bernstein: Yeah, no I can’t. We have much respect for the independence of the Federal Reserve. So I’m certainly not going to talk about that. But I can talk to you a little bit about inflation because, of course, it’s relevant.
At the end of the day, inflation is going to drive a lot of the result of that kind of question. So we know that inflation is down two-thirds from its peak. We know that the six-month annualized rate of one of the inflation gauges the Fed watches most carefully, the core PCE, is growing at just below 2%. So that’s a good sign for them.
We also know that actual prices probably get more into sentiment than the Fed. And we know that actual prices — not lower inflation, actually lower prices — are in place whether we’re talking about gas or bread, milk, eggs, toys, TVs, airfares, used cars, a lot of things that really spiked in price have come down in price. So we’ve had some deflation there. That helps with breathing room and, of course, that helps on the inflation side as well.
NerdWallet: Can you talk a little bit about the populations that fueled labor force growth in the last year, specifically women?
Jared Bernstein: When President Biden talks about empowering workers — and that’s a key pillar of Bidenomics — one of the things he’s really thinking about is the benefit of running a tight labor market, and the way they cascade to groups that have historically been underserved or even left behind.
So here’s a number you haven’t probably heard too much today, but it comes out of the report: If you look at the average Black unemployment rate for 2023, it’s 5.5% — that’s the lowest Black unemployment rate on record for an annual average going back to 1972, when the Bureau of Labor Statistics started collecting that data. If you look at the employment results for disabled workers, they’re shooting up very nicely. And, of course, women, in what we call prime age: 25 to 54. If you look at folks in their prime working years, women’s labor force participation broke records in 2023.
This is just what happens when you have a persistently tight labor market with the unemployment rate below 4% for 23 months in a row, 14.3 million jobs, 36 months in a row of job creation. It’s a great labor market. And it’s reaching folks who too often are left behind under weaker conditions.
Photo by Kevin Dietsch/Getty Images News via Getty Images
Do you need health insurance? Did you know that there are many part-time jobs with health insurance that you may be able to apply for? These types of part-time jobs are great because they not only help you to make more income but they also give you benefits like health insurance. Health benefits are usually…
Do you need health insurance?
Did you know that there are many part-time jobs with health insurance that you may be able to apply for?
These types of part-time jobs are great because they not only help you to make more income but they also give you benefits like health insurance.
Health benefits are usually associated with full-time employment, but a growing number of companies give these perks to part-time employees as well. Companies know that in order to keep good employees, giving helpful benefits like health insurance helps them with this.
You may need a part-time job with health insurance for many different reasons, such as perhaps your full-time job doesn’t come with good health insurance, or maybe you are only looking for part-time hours to make extra money.
My husband worked at UPS for many years, mainly for the health insurance. And, so did many other people who worked there. The health insurance at UPS is one of the best I’ve ever seen, and it’s available to part-time workers.
And, you may be able to find a part-time job that comes with medical insurance like this too!
Key Takeaways
UPS is known for having many valuable benefits for their part-time workers, such as health insurance.
Starbucks is another place where you can get health insurance, even working part-time. After putting in an average of 20 hours a week over three months, you can get medical, dental, and vision plans.
There are many other jobs that give you health insurance as well and even other great benefits like tuition reimbursement and parental leave.
Best Part-Time Jobs With Health Insurance
Below are the best part-time jobs with health insurance coverage.
1. UPS
If you’re looking for a part-time job with health insurance, UPS can be a great choice. At UPS, even part-time employees can get health benefits.
This is probably one of the most popular jobs ever when it comes to getting great health insurance. UPS is a very popular choice for those who are looking for health insurance.
Like I said earlier, my husband worked at UPS for years, mainly for the health insurance. And, so did many other people that we know, such as many of our personal friends, his brother, our friend’s parents, and so many more people that we personally know.
Many of the part-time jobs at UPS are for package sorters and UPS truck loaders.
Part-time UPS workers get the same healthcare benefits as full-time workers. They don’t have to pay premiums, and there is low or no co-insurance and co-pays.
Plus, part-time employees at UPS earn an average of $20 per hour after 30 days. As a part-time employee at UPS, you’re promised at least 3.5 hours of work each day you’re scheduled.
There are also other benefits you can qualify for, such as you can get a pension when you retire, help paying for college, and paid time off for vacations and holidays.
Recommended reading: 26 Best Weekly Pay Jobs To Make Money Quick
2. Starbucks
If you’re looking for part-time work and need health insurance, Starbucks might be the place for you.
Starbucks gives health, dental, and vision insurance to all part-time workers who put in at least 20 hours per week on average after working 240 hours.
Starbucks also has a generous benefits package, such as dental care, a 401(k), vacation time, college tuition reimbursement, and more.
Another nice employee benefit is Starbucks’ parental leave – workers at Starbucks who are eligible and welcoming a new child can take time off and receive pay replacement through parental leave. Additionally, Starbucks gives Family Expansion Reimbursement, giving up to $10,000 for adoption, surrogacy, or intrauterine insemination for eligible partners.
3. REI
REI has a new medical plan called the REI Access Plan, which gives medical coverage to every employee who works at REI, even part-time employees.
The REI Access Plan gives medical coverage to employees after working for only three months, no matter how many hours they work (so, if you only work one day a week, you can qualify!). This plan is in addition to the existing health care options for employees who work an average of 20 or more hours per week over a 12-month period.
The health insurance coverage includes checkups for free with in-network doctors, mental health support, hospital care, and physical therapy. It also covers pharmacy costs and provides access to virtual healthcare through Teladoc.
4. National Guard
As a National Guard member, you get to serve your country and community, and you also have access to job benefits like health insurance.
You and your family can get low-cost health insurance through a plan called Tricare Reserve Select (TRS).
In 2023, the individual monthly health insurance plan cost $48.47, and family plans cost $239.69.
You’re also eligible for low-cost life insurance that pays up to $400,000.
National Guard members respond to emergencies (such as natural disasters), serve as law enforcement, and more. Guard members have about two days of drills each month and spend two weeks on annual training every year.
5. Costco
If you’re interested in a part-time job that includes health insurance, you might want to look into working at Costco.
There are many different kinds of jobs that you can find at Costco, such as cashier, baker, forklift driver, gas station attendant, member service assistant, stocker, and so much more.
Costco gives health insurance to part-time employees who work 23 or more hours each week.
Their health insurance comes with low out-of-pocket monthly premiums and co-pays. They provide medical, dental, and vision benefits that can be used for yourself and/or your family.
I know a few people who left their day job to work at Costco due to the good pay, nice benefits, and fun work environment. So, it can be a great one to look into!
Recommended reading: 20+ Best Jobs That Pay $20 An Hour Or More
6. Chipotle
At Chipotle, you can work part-time and still get health insurance. They understand that you might be studying, have another job, or need extra time for yourself. That’s why they offer flexible schedules.
If you join their team, even part-timers can sign up for health insurance. All Chipotle crew members are eligible for the Anthem Preventive Plus, Delta Dental PPO plan, and EyeMed PPO vision plan.
They also have 100% tuition coverage for select programs. You can learn about agriculture, technology, and business. If you’re into something else, they give up to $5,250 for other study areas.
Other helpful benefits from Chipotle include paid time off, 401(k) retirement savings plans, free meals, an annual bonus, a gym membership discount, and more.
7. Walmart
At Walmart, you can find part-time jobs that come with health insurance.
Part-time jobs with health insurance at Walmart include stocking shelves, unloading trucks, customer service, cashier, and more.
If you’re working at least 30 hours per week over a 60-day period, you can become eligible for coverage.
Once you meet the hours requirement, you can choose from different health plans. These plans are not just any plans; they include options for medical, dental, and vision coverage.
8. JPMorgan Chase
JPMorgan Chase gives health insurance to part-time employees, such as for entry-level jobs like being a bank teller or in customer service.
For example, as a part-time associate banker, you’ll be helping customers with their banking needs. You will be talking to them about their accounts and showing them how to use the bank’s products and services.
To get health insurance at JPMorgan Chase, you need to work at least 20 hours a week, and their benefits include medical, vision, and dental coverage.
9. Delta Airlines
If you’re looking for part-time work and need health insurance, you might want to find a job at Delta Airlines.
There are many different jobs at Delta Airlines that could fit your needs, even if you work part-time. These can include becoming a ticket agent, gate agent, customer service, and more.
They have multiple health plans that you may be interested in, plus dental and vision plans.
Delta also gives paid long-term disability coverage, optional short-term disability insurance, and company-paid basic life insurance.
10. Amazon
If you’re looking for a part-time job with health insurance, you may want to look for a job at Amazon.
Amazon is one of the largest companies in the world, so it makes sense that they would give good health insurance.
Amazon’s medical plans cover things like prescription drugs, emergency and hospital care, mental health, X-rays, and lab work.
There are no exclusions for pre-existing conditions in any of Amazon’s medical plans. They have many different plans, so it means that you can pick the one that fits you and your family the best. Plus, all plans cover 100% of preventive care.
The benefits available to you can vary based on how many hours you work each week and where you live. For example, if you are full-time or work 40 hours a week, you get one set of benefits. If you work between 30-39 hours or 20-29 hours, your benefits may be different. And if you’re in certain states, these standard benefits might not apply.
11. Lowes
At Lowe’s, you can find many jobs that could fit your schedule, and they offer both part-time and full-time positions.
Lowe’s gives affordable health insurance plans to both part-time and full-time workers. These plans cover medical, dental, and vision, and you can get low-cost prescription drugs after 30 days.
If you head to the Lowe’s worker’s benefits website here, you can actually see a preview of your different benefit options. I thought this was really handy. I clicked on “Prospective Lowe’s Associate” which then showed me their medical plan pricing. I typed in my zip code, and it showed me that there was one available medical plan in my area for a part-time Lowe’s Associate.
This plan started at $38.60 for Employee Only. For Employee + Children, the plan then costs $106.18. For Employee + Family, the cost is $152.52 each month. This medical plan includes an annual deductible of $0 and an out-of-pocket maximum of $9,100 for an individual plan or $18,200 for a family plan.
This platform also showed me pricing for their dental coverage, which is through Delta Dental. The pricing for this started at $9.60 per month for an Employee Only plan.
Other employee benefits from Lowe’s include off-the-job accident insurance, identity protection insurance, life insurance of $20,000, short-term disability insurance, 401(k), and an Employee Stock Purchase Plan (ESPP).
12. Ikea
If you’re considering a part-time job, Ikea is a place you might think about. Ikea gives health benefits to its part-time workers, and you get benefits if you work at least 20 hours a week.
IKEA’s health insurance is from Anthem, and many find the premiums reasonable. Besides health coverage, IKEA also offers dental, vision, and prescription coverage. Additionally, employees enjoy benefits like paid time off, parental leave, pet insurance, and income protection.
Some examples of part-time jobs with health insurance at Ikea include retail sales associate, customer service representative, forklift operator, and food service team member.
13. Whole Foods Market
If you’re looking for a part-time job that offers health insurance, Whole Foods Market might be a place to consider. To get health insurance at Whole Foods, part-time employees need to work at least 30 hours per week.
Examples of part-time jobs at Whole Foods include sales associate, customer service representative, cashier, and more.
14. Trader Joe’s
Trader Joe’s is a popular place to work, especially if you want a part-time job with health insurance.
Trader Joe’s has medical, dental, and vision plans for eligible crew members, and the company covers a big part of the cost, which starts as low as $25 per month.
They also have competitive pay, a retirement plan, up to a 20% store discount, paid time off, and more.
14. Staples
If you work part-time at Staples, you can get helpful health benefits. Staples provides medical, dental, and vision plans for both full-time and part-time employees.
You become eligible for these benefits if you work at least 15 hours a week.
All part-time associates are also eligible for other employee benefits like dental, vision, life, dependent life, accidental death, and short-term disability insurance coverage.
Some examples of part-time jobs at Staples include retail sales associate, cashier, stocker, and more.
15. Home Depot
Home Depot has a generous benefits package for its employees, which includes medical coverage, dental insurance, vision coverage, short-term disability, and more.
Part-time employees can qualify for benefits if they work an average of 16 hours per week or more during a 90-day period.
Some examples of part-time jobs at Home Depot include cashier, sales associate, customer service representative, stocker, and more.
Frequently Asked Questions About Part Time Jobs With Health Insurance
Below are answers to common questions about part-time jobs with health insurance.
Which jobs have the best health insurance? What companies have the best healthcare benefits?
Jobs at larger companies like UPS and Starbucks usually have better health insurance, even for part-time employees. They have good health insurance because they want to keep and attract good employees who will stay for a long time.
Remember to check if you need to maintain a certain number of working hours to keep your health insurance active as the requirements can change. Each company is different too, so make sure to look at the details for each job.
What companies give medical insurance to part-timers?
Companies such as UPS, Staples, and Chipotle are known for giving health insurance to part-time workers. Each company has its own criteria for eligibility, so you’ll need to check if you meet their requirements.
How can I find nearby jobs that give health benefits quickly?
You can start by seeing if any of the companies mentioned above have job openings near you.
Does Starbucks give health insurance to part time employees?
Yes, Starbucks gives part-time employees the option to enroll in health insurance plans, including medical, dental, and vision coverage, as long as they meet certain eligibility criteria (such as a minimum amount of hours worked each week).
Is health insurance through work worth it?
Yes, getting health insurance through your job can be a way to save money as well as get access to health insurance. My husband did this for years, and he had great health insurance that was extremely cheap.
Part-Time Jobs With Health Insurance – Summary
I hope you enjoyed this article about how to find part-time jobs with health insurance for medical care.
Health insurance isn’t only for full-time employees.
Yes, there are jobs that will give you medical insurance for working just part-time shifts!
Finding the right part-time job with health insurance and a nice benefits package is very possible across many different industries. Companies like UPS, Starbucks, and Costco are known for giving health and medical insurance to part-time workers.
This can be a game changer for you if you are balancing multiple jobs, attending school, or have family obligations that don’t allow for a full-time position.
What other part-time jobs come with health insurance? Leave a comment below and let me know!
If you spent your teenage years waiting anxiously for one of your siblings to get out of the shower, the idea of selling your spacious, multi-bathroom home and moving into a smaller house or condo may feel like a reversal of fortune.
Yet for many retirees, downsizing makes financial and practical sense. Younger baby boomers — those currently ranging in age from 57 to 66 — made up 17% of recent home buyers, while older boomers — ages 67 to 75 — accounted for 12%, according to a 2022 report from the National Association of Realtors Research Group. Boomers’ primary reasons for buying a home were to be closer to friends and family, as well as a desire to move into a smaller home, the report said. Both younger and older boomers were more likely than others to purchase a home in a small town, and younger boomers were the most likely to buy in a rural area.
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For retirees Fred and Shelby Bivins, selling their home in Green Valley, Ariz., will enable them to realize their dream of traveling in retirement. The Bivinses have put their 2,050-square-foot Arizona home on the market and plan to relocate to their 1,600-square-foot summer condo in Fish Creek, Wis., a small community about 50 miles from Green Bay. They plan to live in Wisconsin in the spring and summer and spend the winter months in a short-term rental in Arizona, where they have family.
Fred, 65, says the decision to downsize was precipitated by a two-month stay in Portugal last year, one of several countries they hope to visit while they’re still healthy enough to travel. “We’ve had Australia and New Zealand on our list for many years, even when we were working,” says Shelby, 68. The Bivinses are also considering a return visit to Portugal. Eliminating the cost of maintaining their Arizona home will free up funds for those trips.
With help from Chris Troseth, a certified financial planner based in Plano, Texas, the Bivinses plan to invest the proceeds from the sale of their home in a low-risk portfolio. Once they’re done traveling and are ready to settle down, they intend to use that money to buy a smaller home in Arizona. “Selling their primary home will generate significant funds that can be reinvested to support their lifestyle now and in the future,” Troseth says. “Downsizing for this couple will be a positive on all fronts.”
Challenges for downsizers
For all of its appeal, downsizing in today’s market is more complicated than it was in the past. With 30-year fixed interest rates on mortgages recently approaching 8%, many younger homeowners who might otherwise upgrade to a larger home are unwilling to sell, particularly if it means giving up a mortgage with a fixed rate of 3% or less. More than 80% of consumers surveyed in September by housing finance giant Fannie Mae said they believe this is a bad time to buy a home and cited mortgage rates as the top reason for their pessimism. “This indicates to us that many homeowners are probably not eager to give up their ‘locked-in’ lower mortgage rates anytime soon,” Fannie Mae said in a statement. As a result, buyers are competing for limited stock of smaller homes, says Hannah Jones, senior economic research analyst for Realtor.com.
Here, though, many retirees have an advantage, Jones says. Rising rates have priced many younger buyers out of the market and made it more difficult for others to obtain approval for a loan. That’s not an issue for retirees who can use proceeds from the sale of their primary home to make an all-cash offer, which is often more attractive to sellers.
Retirees also have the ability to cast a wider net than younger buyers, whose choice of homes is often dictated by their jobs or a desire to live in a well-rated school district. While the U.S. median home price has soared more than 40% since the beginning of the pandemic, prices have risen more slowly in parts of the Northeast and Midwest, Jones says. “We have seen the popularity of Midwest markets grow over the last few months because out of all of the regions, the Midwest tends to be the most affordable,” she says. “You can still find affordable homes in areas that offer a lot of amenities.”
Meanwhile, selling your home may be somewhat more challenging than it was during the height of the pandemic, when potential buyers made offers on homes that weren’t even on the market. The Mortgage Bankers Association reported in October that mortgage purchase applications slowed to the lowest level since 1995, as the rapid rise in mortgage rates has pushed many potential buyers out of the market. Sales of previously owned single-family homes fell a seasonably adjusted 2% in September from August and were down 15.4% from a year earlier, according to the National Association of Realtors. “As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” NAR chief economist Lawrence Yun said in a statement.
However, because of tight inventories, there’s still demand for homes of all sizes, Jones says, so if your home is well maintained and move-in ready, you shouldn’t have difficulty selling it. “The market isn’t as red-hot as it was during the pandemic, but there’s still a lot to be gained by selling now,” she says.
Other costs and considerations
If you live in an area where real estate values have soared, moving to a less expensive part of the country may seem like a logical way to lower your costs in retirement. While the median home price in the U.S. was $394,300 in September, there’s wide variation in individual markets, from $1.5 million in Santa Clara, Calif., to $237,000 in Davenport, Iowa. But before you up and move to a lower-cost locale, make sure you take inventory of your short- and long-term expenses, which could be higher than you expect.
Selling your current home, even at a significant profit, means you will incur costs, including those to update, repair and stage it, as well as a real estate agent’s commission (typically 5% to 6% of the sale price). In addition, ongoing costs for your new home will include homeowners insurance, property taxes, state and local taxes, and homeowners association or condo fees.
Nicholas Bunio, a certified financial planner in Berwyn, Pa., says one of his retired clients moved to Florida and purchased a home that was $100,000 less expensive than her home in New Jersey. Florida is also one of nine states without income tax, which makes it attractive to retirees looking to relocate. Once Bunio’s client got there, however, she discovered that she needed to spend $50,000 to install hurricane-proof windows. Worse, the only home-owners insurance she could find was through Citizens Property Insurance, the state-sponsored insurer of last resort, and she’ll pay about $8,000 a year for coverage. Her property taxes were higher than she expected, too. When it comes to lowering your cost of living after you downsize, “it’s not as simple as buying a cheaper house,” Bunio says
Before moving across the country, or even across the state, you should also research the availability of medical care. “Oftentimes, those considerations are secondary to things like proximity to family or leisure activities,” says John McGlothlin, a CFP in Austin, Texas. McGlothlin says one of his clients moved to a less expensive rural area that’s nowhere near a sizable medical facility. Although that’s not a problem now, he says, it could become a problem when they’re older.
If you use original Medicare, you won’t lose coverage if you move to another state. But if you’re enrolled in Medicare Advantage, which is offered by private insurers as an alternative to original Medicare, you may have to switch plans to avoid losing coverage. To research the availability of doctors, hospitals and nursing homes in a particular zip code, go to www.medicare.gov/care-compare.
At a time when many seniors suffer from loneliness and isolation, a sense of community matters, too. Bunio recounts the experience of a client who considered moving from Philadelphia to Phoenix after her daughter accepted a job there. The cost of living in Phoenix is lower, but the client changed her mind after visiting her daughter for a few months. “She has no friends in Phoenix,” he says. “She’s going on 61 and doesn’t want to restart life and make brand-new connections all over again.”
Time is on your side
Unlike younger home buyers, who may be under pressure to buy a place before starting a new job or enrolling their kids in school, downsizers usually have plenty of time to consider their options and research potential downsizing destinations. Once you’ve settled on a community, consider renting for a few months to get a feel for the area and a better idea of how much it will cost to live there. Bunio says some of his clients who are behind on saving for retirement or have high health care costs have sold their homes, invested the proceeds and become permanent renters. This strategy frees them from property taxes, homeowners insurance, homeowners association fees and other expenses associated with homeownership
The boom in housing values has boosted rental costs, as the shortage of affordable housing increased demand for rental properties. But thanks to the construction of new rental properties in several markets, the market has softened in recent months, according to Zumper, an online marketplace for renters and landlords. A Zumper survey conducted in October found that the median rent for a one-bedroom apartment fell 0.4% from September, the most significant monthly decline this year.
In 75 of the 100 cities Zumper surveyed, the median rent for a one-bedroom apartment was flat or down from the previous month. (For more on the advantages of renting in retirement, see “8 Great Places to Retire—for Renters,” Aug.)
Aging in place
Even if you opt to age in place, you can tap your home equity by taking out a home equity line of credit, a home equity loan or a reverse mortgage. At a time when interest rates on home equity lines of credit and loans average around 9%, a reverse mortgage may be a more appealing option for retirees. With a reverse mortgage, you can convert your home equity into a lump sum, monthly payments or a line of credit. You don’t have to make principal or interest payments on the loan for as long as you remain in the home.
To be eligible for a government-insured home equity conversion mortgage (HECM), you must be at least 62 years old and have at least 50% equity in your home, and the home must be your primary residence. The maximum payout for which you’ll qualify depends on your age (the older you are, the more you’ll be eligible to borrow), interest rates and the appraised value of your home. In 2024, the maximum you could borrow was $1,149,825.
There’s no restriction on how homeowners must spend funds from a reverse mortgage, so you can use the money for a variety of purposes, including making your home more accessible, generating additional retirement income or paying for long-term care. You can estimate the value of a reverse mortgage on your home at www.reversemortgage.org/about/reverse-mortgage-calculator.
Up-front costs for a reverse mortgage are high, including up to $6,000 in fees to the lender, 2% of the mortgage amount for mortgage insurance, and other fees. You can roll these costs into the loan, but that will reduce your proceeds. For that reason, if you’re considering a move within the next five years, it’s usually not a good idea to take out a reverse mortgage.
Another drawback: When interest rates rise, the amount of money available from a reverse mortgage declines. Unless you need the money now, it may make sense to postpone taking out a reverse mortgage until the Federal Reserve cuts short-term interest rates, which is unlikely to happen until late 2024 (unless the economy falls into recession before that). Even if interest rates decline, they aren’t expected to return to the rock-bottom levels seen over the past 15 years, according to a forecast by The Kiplinger Letter. And with inflation still a concern, big rate cuts such as those seen in response to recessions and financial crises over the past two decades are unlikely.
Note: This item first appeared in Kiplinger’s Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Dallas is a fast-growing and highly desirable city to live in. It’s ranked city No. 24 on U.S. News & World Report’s “Best Places to Live” list for a good reason. In Dallas, you can find big-city vibes as well as toned-down suburban-style living depending on where you settle down — making it suitable for any lifestyle.
The cost of living in Dallas is 7.7 percent higher than the national average, but it still costs less to live here than in cities like Los Angeles, Boston and Chicago. Within Dallas, the average rent is declining year-over-year, and if you have ever considered moving to Dallas, now is the time!
Before moving to Dallas, you should consider some basic expenses like housing, food and utilities. These are all common things to think about before making your move. The below sections will help you determine if living in Dallas makes sense for you.
Housing costs in Dallas
Experts predict the Dallas-Fort Worth metroplex to rank as the sixth-hottest housing market in the nation in 2021.
With that being said, you should know that the cost of living in Dallas for housing is 15.9 percent above the national average and properties do not sit on the market long. Don’t let that deter you from rolling your sleeves up and going after what you want. Just keep in mind that the market is pretty competitive.
Some of the most expensive neighborhoods to live in Dallas are Knox/Henderson, East Dallas, Main Street District and Vickery Place. To reside in one of these neighborhoods, you will find yourself paying $2,000 to $2,500 on average monthly rent for a one-bedroom apartment. Don’t worry though — you get your money’s worth. These neighborhoods are known for their walkability factor, unique restaurant options and upscale services.
On the other hand, you can live in neighborhoods like Highland Hills, Southeast Dallas or Riverway Estates and rent a one-bedroom for under $800. It depends on which amenities are important to you and the lifestyle you want to live within the city.
If you’re house hunting, you’ll also find a vast range of options. According to Redfin, the Dallas home market is up 17.1 percent since last year, and the median sale price is $410,000 — well above the national average of $353,000.
Food costs in Dallas
Food costs in Dallas are right around the national average, making it very reasonable to fill your belly and not break the bank. You can balance dining out at fancy rooftop restaurants with cost-effective home-cooked meals since groceries here remain fairly priced.
If you’re shopping for supermarket staples, you’ll see ground beef costs $4.42, a half-gallon of milk costs $1.97 and eggs are $1.15 for a dozen. There are also farmer’s markets on the weekends, specialty grocery stores for unique items or low-cost grocery stores for everyday essentials.
The foodie scene here is incredible, too. The benefit of living in Dallas means the meal options are endless — you can find something to fit any budget. You can score a food truck meal for under $5. Not into that? Scour the city for the best burger and pay $18 a pop.
Living in Dallas means getting used to having casual eateries, mid-priced options or five-star restaurants with highly accredited chefs right at your fingertips.
Utility costs in Dallas
What you pay for utilities will rely on usage, but you can expect them to run 8 percent above the national average. In case you haven’t heard, Texas summers are sizzling hot.
A monthly energy bill is close to $200, higher than in New York, Atlanta and even Los Angeles. Trying to stay cool in Dallas is no joke so just prepare to crank up that A/C.
The monthly cost of a phone bill is around $185, the internet is $45 and water bills are usually under $100. The cost of water is high in Texas due to the dry climate.
Transportation costs in Dallas
It’s very reasonably priced to get around Dallas, whether you own a car, take advantage of public transportation or use ride-booking services in the city. Dallas has a transit score of 45, a walk score of 57 and a bike score of 56.
There are newly built highways and toll roads that make getting from one side of Dallas to the other a breeze. If you own a Toll Tag, you get a special toll rate of 19 cents per mile — worth the initial $40 payment.
Dallas also has the DART (Dallas Area Rapid Transit) system, so if you don’t want to get behind the wheel, you buy a daily pass for $6 or a monthly pass for $96.
Transportation costs in Dallas are 6.8 percent under the national average. A gallon of regular unleaded gas costs $1.92 and is cheaper than in other large, popular Texas cities like Houston and Austin.
Healthcare costs in Dallas
Healthcare requirements vary so much from person to person, so it’s tough to come up with an average for overall healthcare. Just know that whether you are seeking a general family doctor, an emergency comes up or you need special medical attention, Dallas has elite healthcare providers, services, hospitals and facilities.
Medical City Dallas is an example of a leading health care provider. It’s one of the largest in the region and includes 16 hospitals employing over 17,000 employees.
Healthcare costs in Dallas remain steep — 13.8 percent higher than the national average. A doctor visit will run you $121, a trip to the dentist costs $134 and seeing the optometrist is $98.
Goods and services costs in Dallas
Aside from the essential bills, the goods and services category encompasses anything that is not consumable.
Dallas ranks 7.1 percent higher than the national average in this category. Examples include office pens, a new hairbrush, a movie ticket and services like dog grooming, landscaping and home repairs.
Dallas is a very pet and dog-friendly city but just know that a trip to the vet will set you back $64
A trip to a beauty salon averages $45, a movie ticket runs $11 and a yoga costs about $21 per class.
Taxes in Dallas
Fun little fact: There’s no state or local personal income tax in Texas. That means that there are no taxes at a state level for Social Security benefits, pensions, 401(k)s or any other type of retirement income. This helps save a bit of money and offsets the high property taxes, but you don’t have to worry about that if you’re renting.
Texas’ statewide sales tax is a modest 6.25 percent, but total sales taxes, including county and city taxes, sit at 8.25 percent. So, f you spend $100 in Dallas, you can expect to pay $8.25 in sales tax or less.
Dallas residents also benefit from three Texas tax-free weekends where the state and local taxes get waived for specific items.
How much do you need to earn in Dallas?
Experts suggest you not spend more than 30 percent of your annual income on housing.
If you take the average rent price for a one-bedroom in Dallas, which is $1,390, and multiply that by 12, you get what you need for housing for the year — $16,680.
So, to cover for housing that is 30 percent of your annual income, you need to earn at least $55,600 annually in Dallas. For more specific needs you can use our rent calculator.
Living in Dallas
While there are many things to consider before moving to Dallas, this vibrant city has a lot to offer. From budget-friendly living to lavish lifestyles and everything in between, Dallas is a great place to plant your roots and call home.
Cost of living information comes from The Council for Community and Economic Research.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments in April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
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Home loans for physicians
Home loans for physicians
Laurel Road
AMA members must apply through www.laurelroad.com/ama to access these benefits.
Laurel Road offers practicing physicians or residents who are AMA members custom digital mortgages with low rates, whether you’re looking to purchase a home or refinance your current mortgage.
Member benefit: As an AMA member, you get a 0.25% rate discount when getting a mortgage with Laurel Road.*
No processing/application fee, a value of $1,095.*
KeyCorp® All Rights Reserved. Laurel Road is a federally registered service mark of KeyCorp. 3 Corporate Drive, 4th fl, Shelton, CT 06484.
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Whether your vacation goals are big, small or somewhere in between, member benefits can help you plan your next adventure.
PhysicianLoans
Are you moving or planning to buy a new home? PhysicianLoans is the national leader in providing special home financing for physicians, and AMA members can access unique services and deals to help them achieve this milestone.
Physicians with high credit scores have a very low risk of default on residential mortgages even if they have high debt, few assets, or buy a home with little down. Normally, this can cause concern for underwriters who may approve the home loan but at higher rates. In contrast, PhysicianLoans focuses exclusively on serving the unique financial needs of doctors buying homes.
The PhysicianLoans program can offer financing with less money down than standard loans, plus no PMI and expanded underwriting guidelines. Additional benefits include:
Lower monthly payments: No PMI and avoid jumbo rates.
Less cash out of pocket: Less money down and even no money down available.
Portfolio loan: Special underwriting guidelines allow higher debt ratios and close up to 90 days before starting a new job. This means you can qualify based on your new income months before you even start working.
Expert guidance: Our loan officers stay with you throughout the home buying process, from early planning stages to pre-qualification, final approval and closing.
Flexible loan programs: Does not count your full student loans against you, and no pre-payment penalty. Not to mention flexibility is important during a resident’s life when schedules are constantly changing.
Free member bonus: Enjoy peace of mind with three months of home warranty coverage for AMA members who buy a home using either the physicians mortgage loan or the real estate agent matching services. Simply submit your form once you are under contract to ensure the free warranty is set up in time before closing on your new home.
Real estate agent match service
Real estate agent match service
DRS Agent Network
The DRS Agent Network connects you to real estate agents familiar with the special needs, timing and considerations of physicians and their families at each career stage.
Many physicians, especially those moving to a new city, have difficulties finding a trusted, reputable agent that helps them the way they need to be helped. DRS developed a pre-screening and vetting process to ensure that the agents helping physicians are among the best suited to work with physicians.
Save time and money: Complete a short form with your contact information, housing requirements, and any comments you would like to share with the agent. Quickly get matched with a trusted DRS Agent in the city you are interested in before you arrive there—even if you don’t plan to purchase for several months. Since there is no cost and obligation, it does not hurt to hear what the person you are matched with has to say.
Work with a pro: All full-time agents are vetted and specialize in serving the medical community. Each agent is highly knowledgeable about the local community and is the one best suited to meet a physician’s needs. Each agent is prepared to answer your questions about the neighborhood, schools, taxes and local housing trends to help narrow your search.
Free member bonus: Enjoy peace of mind with three months of home warranty coverage for AMA members who buy a home using either the physicians mortgage loan or the real estate agent matching services
The home buying and selling process shouldn’t be scary! A good relocation real estate agent will be able to provide you with all the information you need ahead of your move.
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If talking about money makes you uncomfortable, you might not like the next topic: estate planning.
Estate planning is about making sure your assets go where you want them to go in the event of your death. This may involve documents like a will, health care proxy, or power of attorney.
Important Conversations
Nobody likes talking about death. But having a conversation about estate planning is important to make sure everyone is on the same page, and the right paperwork is in place well ahead of time. It’s not just about leaving money behind. You can make a lot of decisions in your end-of-life planning that may help take care of your loved ones, and can also involve minimizing taxes on the assets left behind.
Writing a Will
There are four different types of wills that can help ensure your plans are carried out after death.
• A simple will, which lets you have control over what happens to your assets
• A joint will, which is created by two people
• A testamentary trust will, which involves creating a trust
• A living will, which specifies your wishes if you were medically incapacitated
If you die without a will you risk having your property go to people you didn’t intend it to go. There are online templates to create a simple will or you can work with an attorney to put your end-of-life wishes in writing, and take care of your loved ones.
Learn more about estate planning with SoFi here.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content. Communication of SoFi Wealth LLC an SEC Registered Investment Advisor SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.