Bonds Hold On to NFP-Driven Gains Despite Some Push-Back
By:
Matthew Graham
Fri, May 3 2024, 5:18 PM
Bonds Hold On to NFP-Driven Gains Despite Some Push-Back
Whether you view it as a perfectly logical reaction to NFP coming in at 175k vs 243k or a bit too much of a rally relative to the motivation, no one could argue that bond yields were destined to drop after seeing this morning’s jobs report. But employment data is only worth so much these days. The main event continues to be inflation and we were reminded of that with the 10am ISM Services data. The ISM headline was actually rate friendly, but the inflation component was the bigger mover, and it was not friendly. Bonds lost almost all of their post-NFP gains in response, but managed to level off in the PM hours. Combined with the 2 previous days of green, the net effect is the best closing levels since April 9th.
Nonfarm Payrolls
175k vs 243k f’cast, 315k prev
Unemployment Rate
3.9 vs 3.8 f’cast/prev
Wages
0.2 vs 0.3 f’cast, 0.3 prev
ISM Non Manufacturing
49.4 vs 52.0 f’cast, 51.4 prev
ISM Prices
59.2 vs 55.0 f’cast, 53.4 prev
08:43 AM
Modestly stronger overnight with additional gains after NFP data. 10yr down 8bps at 4.50, and MBS up 3/8ths
10:15 AM
losing some ground after ISM. MBS still up 11 ticks (.34) and 10yr down 5.3bps at 4.526
02:16 PM
gradually bouncing back and now sideways in the middle of the post-NFP range. MBS up 3/8ths. 10yr down 7.3bps at 4.507
04:49 PM
Very flat since noon with MBS up 11 ticks (.34) and 10yr yields down 8bps at 4.499.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication.
Key takeaways
A no-down payment mortgage allows you to buy a home without putting any money down upfront at closing.
USDA and VA mortgages are two types of loans that don’t usually require a down payment.
Some alternatives to no-down payment mortgages include low-down payment loans, such as a conventional or FHA loan, or getting gift money from family or friends.
Buying a home doesn’t necessarily require a large down payment. The conventional wisdom is that you need 20 percent down, but in reality, you don’t have to save that much. In fact, there are no-down payment mortgage options. Here’s what you need to know about these types of loans.
What is a no-down payment mortgage?
A no-down payment mortgage is a home loan that allows you to finance 100 percent of the home’s purchase price without having to put any money down at closing. Zero-down mortgages can be particularly beneficial for those buying a home for the first time or with limited savings.
How to get a mortgage with no money down
The easiest way to avoid a down payment is to qualify for one of the two no-down payment mortgage programs backed by the government: a USDA or a VA loan.
USDA loans
The U.S. Department of Agriculture (USDA) backs USDA home loans, a mortgage guarantee program for those buying a home in designated rural areas. There are many areas you might not consider “rural” that do qualify under USDA guidelines, so be sure to check your eligibility on the USDA website. USDA loans don’t require a down payment, but borrowers must meet credit and income requirements to qualify.
Although there’s no down payment with a USDA loan, there is an upfront guarantee fee of 1 percent of the principal loan amount, as well as an annual fee of 0.35 percent, which borrowers can roll into the cost of the mortgage. While you won’t pay any money initially if you choose to roll these fees into the loan, keep in mind that it adds to the total balance and will accrue interest over the loan term, which means you’ll pay more overall.
VA loans
If you’re a military service member, veteran or surviving spouse, you could be eligible for a VA loan guaranteed by the U.S. Department of Veterans Affairs (VA) with no money down. There is no mortgage insurance requirement with this loan. However, like a USDA loan, you do have to pay an upfront funding fee, which can be rolled into the mortgage. The funding fee ranges from 1.25 percent to 3.3 percent of the loan amount. You can reduce the funding fee by making a down payment.
Another perk: VA loan lenders often offer more competitive rates for these products, which helps you save money over the life of the loan.
Compare: Current VA loan rates
Alternative zero-down mortgage options
In addition to government-backed loans, you might be able to explore:
A low-income loan – These are often geared toward first-time or low-income borrowers, or those in specific areas. For example, Bank of America’s zero-down program aims to help buyers in minority neighborhoods.
A zero-down mortgage through a local credit union – This might be an option especially if the credit union is based on membership in a professional organization. For example, Sunmark Credit Union offers a no-down-payment mortgage option. While these can be relatively rare, it’s still worth looking into.
Gift money from family or friends – If available, you can use gift funds for your down payment. You’ll need to provide your lender with a gift letter that shows you don’t need to pay back the money gifted.
Low-down payment mortgage options
If you don’t qualify for one of the no-money-down home loan options, you might still be able to buy a home with the next best thing: a low-down payment mortgage.
FHA loans
Insured by the Federal Housing Administration (FHA), an FHA loan requires only 3.5 percent down with a credit score as low as 580. (If you have a credit score between 500 and 579, you might be able to qualify with a higher down payment of 10 percent.) It’s a popular option for homebuyers with less-than-perfect credit and not a lot of savings. Like other government-insured programs, FHA loans are offered by private mortgage lenders, so you might also have to meet a lender’s criteria to qualify. Additionally, you’ll have to pay for FHA mortgage insurance, which adds to your monthly payment and the cost of the loan. You’ll pay these premiums for as long as you have the mortgage, in most cases.
Compare: Current FHA loan rates
HomeReady mortgage
Available through many mortgage lenders, the HomeReady program is a conventional loan backed by Fannie Mae. The down payment requirement on a HomeReady loan is just 3 percent. While you’ll have to pay mortgage insurance to compensate for the low down payment, it’s often at a lower price tag compared to other conventional loans.
Home Possible mortgage
Backed by Freddie Mac, Home Possible is a similar mortgage program to HomeReady, with a 3 percent down payment and mortgage insurance requirements.
HomeOne mortgage
Freddie Mac also offers a 3 percent down mortgage option for first-time homebuyers who qualify through its HomeOne program. The main difference between this loan program and Freddie’s Home Possible mortgage is that a HomeOne mortgage does not impose income limits.
1 percent down mortgage programs
Some lenders are now offering mortgage programs for borrowers who qualify that only require a 1 percent down payment. Some examples include Rocket Mortgage’s ONE+ program and United Wholesale Mortgage’s Conventional 1% Down program. For these programs, the lender pays 2 percent of the required 3 percent down payment for a HomeReady or Home Possible loan — or up to a maximum contribution that varies by lender and loan size — and you only need to provide the remaining 1 percent.
Conventional 97 mortgage
A Conventional 97 mortgage is another Fannie and Freddie program that only requires a 3 percent down payment. You might pay more for private mortgage insurance (PMI) with this type of loan, but your payment depends on your financial profile. You can also request to cancel PMI when you reach 20 percent equity in your home.
Good Neighbor Next Door
The Good Neighbor Next Door (GNND) program is for borrowers who work in select public service professions — teachers, firefighters, law enforcement and emergency medical technicians — and are planning to buy a home in a qualifying area.
The program, sponsored by the U.S. Department of Housing and Urban Development (HUD), provides a discount of up to 50 percent on a home with a down payment of just $100. The borrower must qualify for a first mortgage, and the discounted portion of the home comes in the form of another loan. If the borrower continues to meet program requirements, the second mortgage won’t have to be repaid.
Pros and cons of a no-down payment mortgage
The ability to buy a home with no or very little money down can be appealing, but there are drawbacks, too.
Pros of no-down payment mortgages
You can buy a home sooner. When you don’t have to come up with a substantial down payment, it’s easier to buy a home sooner. Alternatively, if you want to take advantage of a good deal or a dip in the market, you can move fast without having to wait for your savings to accumulate.
You can keep more cash on hand. Even if you have enough to make a sizable down payment, you might want to keep that money liquid for emergency savings, remodeling or investing. Whatever the motive, with a low- or no-down payment mortgage, that extra cash remains available to you — not tied up in real estate.
Cons of no-down payment mortgages
You’ll have no or little equity. Home equity is the portion of your home you own outright (not financed by a mortgage). When you start with a low- or zero-down loan, you’ll have little to no equity. If home values fall, you could end up owing more on the home than it’s worth, making it difficult to sell or refinance.
Your interest rate might be higher. You might pay a higher interest rate for a no- or low-money down loan. That’s because with less money tied up in the home, a mortgage lender might view you as more of a risk. Of course, the higher your interest rate, the more you’ll pay overall.
You’ll need a bigger mortgage, which translates to higher costs. The less you put down, the more you’ll need to borrow, which means you’ll pay more in interest over the life of the loan.
You’ll pay fees. Both VA and USDA loans come with fees, which add to the cost of the loan.
Your offer for a home might not look as compelling. The housing market is still competitive in most places around the country. If someone else makes an offer with a large down payment, that buyer might look like a better bet in the seller’s eyes.
Should you get a no-down payment mortgage?
Deciding whether to go for a no-down payment mortgage depends largely on your financial circumstances and goals. Here are a couple of scenarios when a zero-down mortgage might be a good idea:
If you don’t have a lot of cash: Not having to make a large initial payment leaves more in your pocket, obviously, to cover closing costs or living expenses.
If you can afford to pay higher monthly payments: With a smaller down payment comes a bigger loan, which means higher monthly payments. But you might be able to manage a few hundred more month-to-month, even if you couldn’t scrape together a five-figure down payment.
If you plan to stay in the home long-term: When you take out a no-down payment mortgage, you’ll still need to pay closing costs and fees. If you decide to sell your home after a few years for a new one, you’ll have to pay these costs again. Weigh whether it makes financial sense to buy now or save up a little longer.
FAQ on no-down-payment mortgages
The Department of Veteran Affairs and the U.S. Department of Agriculture DA don’t set a minimum credit score requirement for, respectively, their no-money-down VA and USDA loans. However, most lenders offering these loans do, and they’d want them to be at least in the “fair” range: 620 for VA loans, 640 for USDA loans. Because you’re not bringing any cash to the table, and financing virtually all of your mortgage, the lender has to be extra-reassured that you pay your debts fully and on time.
You can explore down payment assistance programs that offer either grants or second mortgages that often become forgivable after several years. You can also solicit gift funds from family or friends. If neither of these is feasible, you may have to put your homeownership dream on hold for a while, while you save up and/or strengthen your credit score.
While mortgage rates remain higher than they were during the housing market’s booming pandemic years, Moody’s Ratings has predicted them to finally start declining over the next few years in a new report.
Exactly a week ago, the Federal Home Loan Mortgage Corporation, better known as Freddie Mac, reported that the average rate for a 30-year-fixed mortgage—the most popular among U.S. borrowers—had reached 7.1 percent, a record high for this year so far.
Read more: How to Find the Right Mortgage for You
Moody’s Ratings’ experts believe mortgage rates will come down—just not as quickly as homebuyers might wish for. The financial research company is currently estimating that mortgage rates will remain higher “than the extremely low levels during the decade of aggressive central bank stimulus that preceded the past two years” in the coming months, but will likely reach around 6 percent or somewhat less by the end of 2025.
This is good news for aspiring homebuyers who have been squeezed out of the market by skyrocketing home prices and high mortgage rates, which climbed as a direct consequence of the Federal Reserve’s aggressive rate-hiking campaign to combat the rise of inflation last year.
An aerial view shows a subdivision that has replaced the once rural landscape on July 19, 2023 in Hawthorn Woods, Illinois. Mortgage rates are likely to come down to 6% by next year, Moody’s Ratings… An aerial view shows a subdivision that has replaced the once rural landscape on July 19, 2023 in Hawthorn Woods, Illinois. Mortgage rates are likely to come down to 6% by next year, Moody’s Ratings experts predict.
Scott Olson/Getty Images
While most analysts expect the central bank to lower interest rates this year, the Federal Reserve has so far failed to do so, as the latest data on the cost of living show that inflation remains higher than expected at 3.48 percent in March. The Federal Reserve does not directly set mortgage rates, but any rise in interest rates impacts new mortgage lending.
Read more: Compare Low Rates With the Best Mortgage Lenders
Higher mortgage rates led to a drop in demand in late summer 2022 due to the unaffordability of buying a home for many Americans; but the price correction that followed this slide in demand was rather modest. In spring 2023, prices started climbing back up across the country, as the supply of homes remained low.
While the historic shortage of homes in the U.S. can primarily be traced back to the fact that the country has under-built following the bursting of the housing bubble and the financial crisis of 2007-2008, high mortgage rates have also caused many homeowners to hold on to their homes instead of putting them on the market.
“Many U.S. homeowners have low fixed-rate mortgages that they are reticent to give up, which is constraining existing property listings and sales,” Moody’s wrote in the report.
Faced with a growing demand for new constructions and mortgage interest rate buydowns, the company’s experts expect home prices to avoid significant decline in the coming months, sliding by a moderate 5 percent this year after falling 6.6 percent in 2023.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Mortgage rates rose for the fifth consecutive week, but so far it has had limited influence on this year’s spring home purchase season, Freddie Mac commented.
The 30-year fixed rate mortgage increased by 5 basis points this week to 7.22%, tying a level last seen at the end of November, the Freddie Mac Primary Mortgage Market Survey found.
For April 25, the 30-year FRM was at 7.17%, while for the same week in 2023, it averaged 6.39%.
For the 15-year FRM, the average rose three basis points, to 6.47%, from 6.44% and a year ago at this time, the 15-year it averaged 5.76%.
“With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “However, many seem to have acclimated to these higher rates, as demonstrated by the recently released pending home sales data coming in at the highest level in a year.”
According to LenderPrice data posted late morning on Thursday on the National Mortgage News website, the 30-year FRM was at 7.36%, nearly 10 basis points lower than it was at the same time last week, 7.457%.
One of the elements in pricing mortgages, the 10-year Treasury yield, has remained elevated, even though it was down from one week ago, when on April 25, it peaked at 4.74%. By April 29, it closed at 4.61%.
This reflects market conditions following the Federal Open Market Committee’s decision at its April/May meeting not to change short-term rates. Investors, who once thought a June cut was likely, have backed off that position.
Rates are likely to remain in the 7% range in the future, said Richard Martin, director, real estate lending solutions for analytics firm Curinos, which also tracks mortgage rate data. He added that while he expects rates to fall a bit by the end of the year, he is a little more bearish than Fannie Mae’s latest outlook.
In terms of the impact on mortgage rates, the Fed’s decision was anticipated and already priced in.
“I like to characterize it as no one predicted the level and pace of increases no one’s going to predict the level and paces of decreases,” Martin said. If the FOMC was to cut rates, it would likely be closer to the end of the year.
On April 30, the first day of the FOMC meeting, the yield moved higher again, by a little over 7 basis points to just shy of 4.68%. However, the next day, it went down to 4.60%.
As of mid-morning on Thursday, the 10-year yield was almost 4 basis points higher.
Where mortgage rates currently are makes the environment tough for mortgage originators and title underwriters, but is good for companies that are “servicing-heavy,” said Bose George in a commentary issued after the FOMC meeting.
“Despite the headwinds around mortgage volumes, stable home price appreciation should remain a positive for mortgage credit,” George said.
Martin expects rates to hold in the current range, as does Redfin’s economic research lead Chen Zhao.
“The Fed meeting is unlikely to push mortgage rates down — but the good news is that it won’t push them up, either, which could have happened if the Fed took 2024 rate cuts off the table,” Zhao said in a press release. “Even though housing costs shouldn’t climb much more, they will remain elevated for the foreseeable future, which could push more buyers away.”
Martin is leaning towards a mild recession occurring in the future, noting the U.S. economy is not yet out of the woods.
The 10-year Treasury is just one influence on mortgage pricing; the other is the primary-secondary market spreads related to securitization activity.
Federal Reserve Chairman Jerome Powell noted that the Fed will reinvest any proceeds from mortgage-backed securities run-off over $35 billion into Treasuries. That translates into lower purchase activity
“While this is in line with market expectations, we think this will continue to be negative technical for agency MBS,” George said.
It is not just those spreads that could influence pricing, Martin said, noting the record per-loan production losses originators suffered last year.
Homebuyers are still suffering from interest rate shock, said Jeremy Sicklick, CEO of real estate firm HouseCanary. “With mortgage rates creeping over 7%, many buyers and sellers alike seem to be holding out for rate cuts in the months ahead before jumping into the housing market,” Sicklick said in a press release.
HouseCanary data found the median price of all single-family listings rose 3.2% over a year ago, while closed listings rose 8%.
“With high mortgage rates and surging home prices tamping down market activity, we expect to see a subdued spring buying season continue throughout May, despite inventory increases,” Sicklick declared.
But besides higher rates, the problems around inventory and affordability remain.
“I think we’ve got to solve for those in concert,” Martin said. “Lower rates will help but I don’t think it’s enough to really materially move that needle.”
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90k salary is a good hourly wage when you think about it.
When you get a job and you are making about $24 an hour, making over $90,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
Obviously, $90k is well above the average and median incomes; yet, most people feel like they can barely make ends meet with this higher than average salary.
But, the question remains can you truly live off 90,000 per year in today’s society. The question you want to ask all of your friends is $90000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $90000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $90k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$90000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 90k a year hourly. That way you can decide whether or not the job is worthwhile for you.
90000 salary / 2080 hours = $43.27 per hour
$90000 a year is $43.27 per hour
Let’s breakdown how that 90000 salary to hourly number is calculated.
For our calculations to figure out how much is 90K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $90000 by 2,080 working hours and the result is $43.27 per hour.
Just above $40 an hour.
That number is the gross hourly income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $5K, it would increase your hourly wage by $2.40 per hour.
To break it down – 95k a year is how much an hour = $45.67
That isn’t a huge amount of money, but every dollar adds up to over $45 an hour.
How Much is $90K salary Per Month?
On average, the monthly amount would be $7,500.
Annual Salary of $90,000 ÷ 12 months = $7,500 per month
This is how much you make a month if you get paid 90000 a year.
$90k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $90k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$90000/52 weeks = $1,731 per week.
$90000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1,731 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x 52 weeks = 260 working days
Annual Salary of$90000 / 260 working days = $346 per day
If you work a 10 hour day on 208 days throughout the year, you make $433 per day.
$90000 Salary is…
$90000 Salary – Full Time
Total Income
Yearly Salary (52 weeks)
$90,000
Monthly Salary
$7,500
Weekly Wage (40 Hours)
$1,731
Bi-Weekly Salary (80 Hours)
$3,462
Daily Wage (8 Hours)
$346
Daily Wage (10 Hours)
$433
Hourly Wage
$43.27
Net Estimated Monthly Income
$5,726
Net Estimated Hourly Income
$33.04
**These are assumptions based on simple scenarios.
90k A Year Is How Much An Hour After Taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 90000 a year after taxes?
Gross Annual Salary: $90,000
Federal Taxes of 12%: $10,800
State Taxes of 4%: $3,600
Social Security and Medicare of 7.65%: $6,885
$90k Per Year After Taxes is $68,715.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$68,715 ÷ 2,080 hours = $33.04 per hour
After estimated taxes and FICA, you are netting $68715 per year, which is a whopping $21,285 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
Taxes Based On Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $90000 income can range from $61,515 to $72,315 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $90,000 income.
We calculated how much $90,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
How Much is $90k Salary To Hourly Calculator
So, here is a handy calculator to figure out your exact hourly salary wage.
In fact, a real estate investment trusts may be a good career path to make this salary higher.
90k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $90,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower-cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $90,000 a year is just above the median income of $30000 that you would find in the United States. Thus, you are able to live an above-average lifestyle here in America.
What a $90,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to afford a home in a great neighborhood in MCOL city.
You should be able easily meet your expenses each and every month.
Saving at least 20% of your income each month.
Working to increase your savings percentage every year.
Able to afford vacations on a fairly regular basis; of course by using your vacation fund.
When A $90,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 90k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending until that happens.
Break the paycheck to paycheck cycle.
Live a lifestyle that you can afford.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$90K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 90k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $90000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$750
Savings
15-25%
$1500
Housing
20-30%
$1800
Utilities
4-7%
$188
Groceries
5-12%
$506
Clothing
1-4%
$38
Transportation
4-10%
$225
Medical
5-12%
$375
Life Insurance
1%
$19
Education
1-4%
$26
Personal
2-7%
$113
Recreation / Entertainment
3-8%
$188
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1744
Total Gross Income
$7,500
**In this budget, prioritization was given to savings, basic expenses, and no debt.
Is $90,000 a year a Good Salary?
As we stated earlier if you are able to make $90,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.
You shouldn’t be questioning yourself if 90000 is a good salary.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $90k salary would be considered a upper-middle class salary. This salary is something that you can live on very comfortably.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).
The question you need to ask yourself with your 90k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in some expensive cities, 90000 dollars a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 90,000 per year.
If you are looking for a career change, you want to find jobs paying over six figures.
Is 90k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $90000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 90k a good salary for a family?
Many of the same principles apply above on whether $90000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The cost of raising a child is expensive! Any of us can relate to that!
Did you know raising a child born in 2015 is $233,610 (source). That is from birth to the age of 17 and this does not include college.
Each child can put a dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $90,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything you want.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 90,000 per year, then the combined income for the household would be $180,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $90000 Per Year?
As we outlined earlier in the post, $90,000 a year:
$43.27 Per Hour
$346-433 Per Day (depending on length of day worked)
$1731 Per Week
$3462 Per Biweekly
$7500 Per Month
Next up is making $100000 a year! Time for six figures!!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 55,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $90K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
When getting your first credit card, consider factors such as the card’s annual fees, interest rates, rewards or benefits, and credit limit. Choose a card that aligns with your financial goals and spending habits, and make sure to understand the terms and conditions, including the consequences of late payments or carrying a balance. Additionally, aim to use the card responsibly to build positive credit history while avoiding overspending and accumulating debt.
With so many credit cards on the market, getting your first card can be overwhelming. What type of card do you need? How often should you use the card? Is it possible to have a credit card without racking up large amounts of debt you can’t repay?
Keep reading for answers to these frequently asked questions about getting and using a credit card for the first time.
What Is a Credit Card?
A credit card is a type of revolving account that allows you to spend up to a preset limit. Every month, the issuer calculates your minimum payment due based on your recent activity.
One of the main differences between a credit card and a loan is that loans have a fixed number of payments. With a credit card, you can keep making purchases until you reach your preset spending limit, and each time you make a payment, it frees up some of your available credit. This allows you to keep using the line of credit over to purchase goods and services over and over.
Types of Credit Cards
Before you apply for your first credit card, make sure you understand the differences between secured and unsecured credit. If you want to open a secured credit card, you’ll have to make a deposit. The issuer uses that deposit to set your credit limit. For example, if you deposit $500, you should start out with a limit of $500.
One of the biggest advantages of opening a secured credit card is that you can’t overspend. If you don’t pay back the money you borrowed, the issuer can close your account and keep the deposit.
An unsecured credit card doesn’t require a deposit, so the issuer sets your spending limit based on your income and credit history. If you don’t repay what you borrowed, the company can send your account to collections or do a charge-off, both of which would have a negative impact on your credit health.
Pros and Cons of Getting a Credit Card
Like any financial product, credit cards have several pros and cons. Review them carefully before you decide to apply for your first credit card.
Advantages of Credit Cards
The main advantage of having a credit card is that it gives you extra purchasing power. For example, if you don’t have quite enough money saved for your auto insurance premium, you can use a credit card to make your payment.
Having a credit card also helps build a strong credit profile, provided you use the card wisely. Your credit score is based on several factors, such as your payment history and the number of credit accounts you have open. When you open a credit card, you have an opportunity to demonstrate responsible financial behavior, which could improve your credit.
Credit cards also have these benefits:
Fraud protection. Credit cards have several features designed to guard against fraud. Additionally, it’s easier to deal with fraudulent transactions on a credit card than on a debit card. If you use a debit card, the fraudulent transaction ties up some of your money until you can convince the bank to issue a provisional credit. When you use credit cards, you’re using the bank’s money, so none of your money is ever at risk.
Rewards. Many companies offer credit cards that give you points, miles, cash back, and other perks. Rewards credit cards let you earn valuable benefits based on your everyday spending habits. For example, if you enjoy dining out, you may want to look for a credit card that offers extra cash back on restaurant purchases.
Wide acceptance. Thousands of merchants accept credit cards, so you don’t have to worry about carrying cash or coming up with another form of payment. Carrying a credit card may even help you avoid having a hold put on your funds when you rent a car or book a hotel room.
Disadvantages of Credit Cards
One of the biggest disadvantages of using a credit card is that it’s easy to overspend, especially if you have a high limit. To reap the benefits of using a credit card without the stress of worrying about your minimum payment, charge only what you can afford to pay in full each month.
Many credit cards also have high interest rates. If you don’t pay your balance in full every month, you’ll have to pay interest on all purchases, cash advances, and balance transfers. Interest charges add up quickly, making it difficult to pay off your balance.
Although credit cards can be very beneficial, you need to use them responsibly. Late payments, missed payments, and other credit mishaps can hurt your credit for many years to come.
How to Choose Your First Credit Card
Before you apply for your first credit card, take time to check your credit score and report. If you know your credit, it will be easier to find a credit card company willing to issue a card to someone with your credit profile. If you have poor credit, you may need to open a secured card or accept a credit card with a low limit before you can qualify for better cards.
When you’re ready to apply, look for a card that fits your needs. If your goal is to build credit, search for a card with automatic credit line reviews or other features designed to help users improve their financial situations. If you travel frequently, consider getting a rewards credit card to help you earn cash back or bonus points.
Now you’re ready to apply for a card. When you fill out the application, you’ll need to provide your name, contact details, and information about your financial situation. If you aren’t approved, you’ll receive a letter explaining the reason for denial.
Tips for Using Your Credit Card Wisely
To avoid the drawbacks associated with credit cards, follow these tips:
Make on-time payments. Payment history has a big impact on your credit health. To build a strong credit profile, pay your bill on time each month.
Pay more than the minimum. If you only pay the minimum amount due, it may take several years to pay your balance in full. Avoid high interest charges by paying more than the minimum due each month.
Don’t go over your limit. Going over your limit increases your credit utilization ratio, which is a red flag to lenders. Many companies also charge over-limit fees that make exceeding your limit expensive, so try to avoid doing this.
Limit your applications: Every time you apply for a credit card, the issuer checks your credit report, resulting in a hard inquiry. Lenders see many hard inquiries in a short amount of time as a sign that you may be in financial trouble, so it’s best to limit the number of inquiries on your record.
You can visit Credit.com today to get started on your credit card journey by comparing different cards, checking your credit score and credit report card, and learning more about how to manage your finances responsibly.
Wednesday brought a full schedule of events and data for the bond market to digest and bonds dictate day to day changes in mortgage rates. The morning’s data was perfectly palatable, resulting in modest strength heading into the afternoon’s Fed announcement.
Contrary to impression given by many news headlines on Fed day, there is rarely any significance to the Fed’s actual decision to hike/cut/hold steady at any given meeting by the time the meeting actually happens. Markets will have long since priced in the likely outcome based on economic data and Fed policy transparency.
In other words, it was a surprise to no one that the Fed held rates steady at this meeting. Bond traders tuned in for other reasons–mainly to hear what Powell had to say at the 2:30pm ET press conference.
There were a few ways Powell could have framed the recent set-backs seen in inflation data. Some analysts thought he might say more to entertain the possibility of rate hike instead of a rate cut. Powell (and, indeed, the Fed announcement itself) definitely acknowledged that inflation data meant a delay for the Fed’s next move, but in the press conference, Powell reiterated that the next move was much more likely to be a cut, based on the trajectory of the data.
Bonds improved and many mortgage lenders were able to re-issue slightly lower rates compared to the morning levels. The average 30yr fixed rate is still elevated by 2024’s standards, but nicely lower compared to yesterday’s latest levels.
95% of Parents Saving for Kids’ College Expenses Expect to Cover Over Half the Costs, According to Northwestern Mutual Planning & Progress Study 2 in 3 parents who are helping their kids cover college costs expect their children to pay for part of the educational expenses; 1 in 3 say the parents will pay for … [Read more…]
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I love Ikea, Target and Wayfair as much as the next girl, but is anyone else getting seriously annoyed by how often you find the “perfect” lamp, rug or planter, only to find out that three of your friends have the exact same one? I feel like I’m living the episode of Friends where Phoebe finds out Rachel has made their apartment a carbon copy of the Pottery Barn catalog in real life (unbeknownst to Phoebe, who hates things that aren’t as unique as she is). These big box stores are certainly convenient, but sometimes, just like Phoebe, I want something a little more unique for my home. That’s when I turn to Etsy.
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Stunning Dresses From Rag & Bone, Ted Baker & Vince Camuto Are on Bonkers Clearance (Up to 80% Off) at Nordstrom Rack
With its collection of quirky and unique independently run shops, Etsy is where I go when I’m searching for items that will bring a wow-factor to my home. And even though I’m buying unique things, there are still a ton of shops that are affordable.
These are some of our favorite Etsy shops selling modern home decor even for those of us on a budget — proof positive your home can be unique and chic without depleting your savings account.
A version of this article was originally published in September 2017.
Let it Wrinkle Studio’s linen waffle hand towels, bath towels, and blankets. They sell linen tea towels, aprons, and scrunchies, too!
Let it Wrinkle Linen Waffle Washcloth
$13
Terrazzo-style stone accessories are the building blocks of your dream home, then check out Beauty of Stone Crafts. They offer accessories like soap dishes, serving trays, terrazzo vanity trays, jewelry catch-alls, and more.
Mustard Yellow Terrazzo Oval Tray and Coaster
$35
knick knack shelves can make all the difference. The modern, squiggly, functional art from Dreamy Home Creations is one inspired direction you could go in with your space.
Dreamy Home Creations Wavy Shelf
$54
modern options from LetterCut.
LetterCut Thin Modern House Numbers
$16
Inspiration Abstracts can give your home a high-end look for less.
Inspiration Abstracts Ochre Accent Wallpaper
$7+
this shop are surprisingly affordable, considering how pricey the material usually is. Even if you can’t afford a set of copper pots, this copper pot and pan rack will add a glow to your kitchen.
Copper Pot and Pan Ceiling Rack
$232
affordable knobs, pulls and legs from this shop. Choose from brass, copper, nickel, black, and more.
Cabinet Knob ‘Geo’ in Flat Black
$12
ingenious vinyl record shelves from PaintsForYouBySarah that can hold quite a bit, including picture frames, flowers, and more.
PaintsForYouBySarah Vinyl Record Shelf
$20
Woodentoysandclocks Kids Sherpa Chair is the perfect, cozy addition to your kids’ playroom. It comes in an array of colors to fit any style of the playroom, and c’mon, it’s the perfect amount of modern and luxe.
Woodentoysandclocks Kids Sherpa Chair
$84+
wall shelves. Not only can you personalize them, but they’re easy to set up and your cats have so many ways to explore them.
You can get a personal loan from many banks, online lenders, and credit unions. A type of unsecured loan, personal loans can be used to pay for just about any large expense.
You might use it to pay off credit card debt, an unexpected medical bill, or the cost of home renovations. Some people use these loans to fund a wedding or big vacation. Given the many ways these versatile loans can be spent, it’s no surprise that personal loans are a popular choice. Currently, 23.5 million Americans have unsecured personal loans, totaling about $245 billion.
If you’re thinking of getting a personal loan, read on to learn more about where you can get one and the pros and cons of each option.
Where Can You Get a Personal Loan?
In terms of where to get a personal loan, these loans are generally available through three main markets: banks, credit unions, and online lenders. (There are other types of personal loans available through physical storefronts and online, such as payday loans and pawnshop loans, but it’s wise to avoid these options. You’ll learn why in a minute.)
Banks
National and regional banks often offer personal loans, which you can typically apply for online or in person. A bank may be the first choice for consumers who are already account holders at that institution, especially since the loan amount can usually be deposited quickly and directly into their checking account.
Credit Unions
Credit unions are another popular option for where to source a personal loan — though generally, these loans are only available to those who are already credit union members.
Each credit union has its own eligibility requirements to open an account or otherwise do business with it, which may be based on where you live or what industry you work in. However, if you do have access to a credit union, you may find lower interest rates and more favorable terms there than at other financial institutions.
Recommended: Is It Hard to Get a Personal Loan?
Online Lenders
Online lenders have proliferated over the years. These days, a personal loan can be easy to find from one of these sources with just a few clicks.
Online lenders may offer instant or near-instant loan decisions. They also don’t require you to be a member of or an account-holder at any specific financial institution. That said, it may take longer to receive your check or transfer than it would if you were borrowing from a bank or credit union where you already hold an account.
Of course, you will want to carefully review the personal loan interest rates and fees you are offered. 💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.
Where Can You Get a Personal Loan With Bad Credit?
You can get a personal loan with bad credit from a few lenders, such as online ones and payday lenders, but it’s important to proceed with caution.
First, a little important background intel:
• A personal loan with no collateral, also known as an unsecured personal loan, can be tough to qualify for if your credit history is less than perfect.
• Since there’s no collateral, like a house or a car, for the lender to take if you fail to repay the loan, unsecured personal loans often come with steeper qualification requirements than other types of loans.
• They may also have higher interest rates, especially for those whose credit could use some improvement. There are some lenders out there who specifically market their products to folks with lower credit scores — but beware. Sometimes these loans come with predatorily high interest rates and other drawbacks.
Online Private Lenders
The convenience and ubiquity of the online personal loan market is a mixed blessing. Sure, it’s easy to find a loan when you need one, but it’s also easy to fall into a bad deal.
Some online lenders specialize in offering loans for poor or no credit, but be sure to read all the fine print before you hit “submit” on your application. The loans may come with soaring interest rates, high origination fees, or hidden costs. Do your homework and vet the business you are borrowing from to make sure it’s legitimate. You may want to check with the Better Business Bureau to search for any complaints on file and for reliable, verified reviews.
Payday Lenders
Payday loans have been around for a long time, but that doesn’t mean they’re a good option.
Designed to be repaid quickly (i.e., at the borrower’s next payday), these short-term cash loans may be for small amounts, but often come with astronomical interest rates. According to the Consumer Financial Protection Bureau, it’s not uncommon for these quick-turnaround loans to have APRs as high as 400%!
In almost every instance, when comparing payday loans vs. personal loans, payday loans are worth avoiding. Other forms of unsecured loans will likely come with lower interest rates and more favorable repayment terms. Fortunately, it is possible to find loans from reliable lenders — even with imperfect credit.
Banks and Credit Unions
You can get a personal loan with bad credit from a few lenders, such as online ones and payday lenders, but it’s important to proceed with caution.
First, a little important background intel:
• A personal loan with no collateral, also known as an unsecured personal loan, can be tough to qualify for if your credit history is less than perfect.
• Since there’s no collateral like a house or a car, for the lender to take if you fail to repay the loan, unsecured personal loans often come with steeper qualification requirements than other types of loans.
• They may also have higher interest rates, especially for those whose credit could use some improvement. There are some lenders out there who specifically market their products to folks with lower credit scores—but beware. Sometimes these loans come with predatorily high interest rates and other drawbacks.
Another place where you can go to get a personal loan of this sort is a bank or credit union. Each financial institution sets their own qualification requirements for their unsecured personal loans, so it’s worth shopping around to find the best fit for your financial needs. Additionally, they may have other products that could work for you, like secured credit cards or share-secured loans. 💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.
What Are Some Pros and Cons of Different Types of Lenders?
Now that you’ve learned about the main options for personal loan shopping, you can figure out which kind of lender is right for you. Each alternative comes with its own pros and cons. Here are some things to consider while you’re browsing.
Personal Loans From Banks
Pros of Personal Loans From Banks
Cons of Personal Loans From Banks
You may get a discounted rate if you’re already a member.
You may need to be an existing customer or have good credit to qualify.
Funds may show up more quickly if you have an existing account there.
You may have to go to the physical bank to apply.
Personal Loans From Credit Unions
Pros of Personal Loans From Credit Unions
Cons of Personal Loans From Credit Unions
Loans may come with lower interest rates and fees than other financial institutions.
You’ll need to meet whatever eligibility requirements are necessary to be a credit union member in the first place.
Qualification requirements may be minimal.
You may have to go to the physical credit union to apply.
Personal Loans From Online Lenders
Pros of Personal Loans From Online Lenders
Cons of Personal Loans From Online Lenders
Online lenders make it convenient and easy to apply for a personal loan from the comfort of your home.
It can be difficult to know for sure if you’re borrowing from a reliable, legitimate source.
A wide variety of lenders can be shopped for and compared easily through an online search.
Some online lenders may charge high interest rates and other fees.
Choosing a Personal Loan Lender
No matter where you choose to apply for a personal loan, the best way to determine whether it’s the right loan for you is to look at the fine print. The lender matters less than the loan, and knowing what you’re agreeing to ahead of time is key to avoiding an unpleasant financial surprise.
Here are the most important factors to look for when shopping around for a personal loan:
• Fees, such as origination fees, early repayment penalties, and late fees, can increase the total amount you’ll spend on your loan in no time. Ideally, you’ll want to look for a lender that charges few fees — or none at all.
• Interest rates can vary widely with unsecured personal loans, from as low as 4% to as high as 30% or more. While your specific options will vary based on your credit history and other financial information, it’s good to shop around for the lowest possible interest rate.
• Loan amount caps may be relatively small (e.g., $1,000) or very large ($100,000 or more). Whatever your financial need, you want to ensure your lender will offer enough for you to cover whatever expense you’re paying for.
Recommended: Personal Loan Calculator
The Takeaway
There are many personal loan lenders to choose from, including banks, credit unions, and online lenders. Whether you need money to pay for an unexpected expense, such as a car repair, or you’re planning the ultimate 40th birthday party, it’s wise to shop around and compare interest rates, fees, and speed of funding.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Where is the best place to get a personal loan?
In terms of where to get a personal loan, there isn’t one “best” place. When comparing banks, credit unions, and online lenders, look at interest rates, fees, customer reviews, and how quickly the loan would fund to determine the option that suits you best.
Where is the best place to get a small personal loan?
Where to go to get a personal loan depends on a variety of factors. Would you be more comfortable working with a large lender or a small, community-based lender for your small loan? Do you already have an account at a financial institution that also makes personal loans? It might also depend on how much you want to borrow because different lenders have different borrowing ranges.
Where is the easiest place to get a personal loan?
If you’re looking for where you can go for a personal loan, it might be best to start at a financial institution where you already have an account. In that case, your financial information will be on record, making the process faster and easier. Although online lenders may promise super-fast funding, be sure to research options carefully and make sure the business is legitimate and interest rates are affordable.
Photo credit: iStock/solidcolours
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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