What can employers do to make sure their financial benefits attract and serve a truly diverse workforce?
It’s a question that has become increasingly relevant since the Covid-19 pandemic shed a harsh light on the pervasive economic inequalities embedded in society and the workplace. While there have been gains in the average wealth of all demographic groups since 2019, the racial wealth gap remains stubbornly wide.
According to Federal Reserve data from the second quarter of 2023, Black families had about $986,000 less wealth, on average, compared with white families, while Hispanic families had about $992,000 less wealth, on average, than white families. Put more starkly: Black and Hispanic families had 24 cents for every $1 of white family wealth.
Even when they attend and graduate from college, minorities still face an uphill financial climb. According to the Education Data Initiative, Black college graduates owe an average of $25,000 more in student loan debt than white college graduates. Four years after graduation, black students owe an average of 188% more than white students borrowed.
And while women have increased their presence in higher-paying jobs traditionally dominated by men, the gender pay gap hasn’t gone away: On average, women are paid 83.7 percent as much as men, which amounts to a difference of $10,000 per year. The gaps are even larger for many women of color, according to the U.S. Department of Labor.
Given these realities, it’s important that diversity, equity, and inclusion (DE&I) programs and financial wellness initiatives are effectively combined to help address the problems of economic inequality throughout every segment of your workforce.
By helping underrepresented employees turn wages into long-term wealth, companies can play a pivotal role in driving financial success that impacts future generations and results in systemic change.
Where Do Financial Wellness and Diversity, Equity, and Inclusion Intersect?
These days, many employers of all sizes have a DE&I strategy or program in place to increase inclusion and remove bias and discrimination in the workplace. Financial wellness benefits are also growing in popularity as a way to attract, retain, and add value to employees.
While companies may actively promote both financial wellness and DE&I, they often overlook the potential synergy between the two. Understanding how these two human resource pillars work together can help amplify the relevance, effectiveness, and success of both programs throughout your workforce.
Traditionally, financial well-being programs have focused on long-term savings and investing for retirement. But it’s becoming increasingly apparent that this approach doesn’t meet all the needs of an increasingly diverse workforce.
Depending on the individual, financial success can come in many forms, not just having enough for retirement. Success might also include paying off debt, saving for emergencies, or buying a first home. Understanding your workforce and its diverse needs — as well as understanding the importance of a broad-based definition of financial well-being — helps put you at the nexus of your DE&I and financial wellness goals.
Recommended: How to Support Your Low-Wage Workforce
Can Financial Well-Being Initiatives Enhance Diversity, Equity, and Inclusion in Your Workforce?
The answer is an overwhelming yes — as long as your financial well-being programs are designed to be customizable for employees on different financial footings with a range of financial goals and stresses. Here are some steps you can take to integrate your financial well-being and DE&I programs.
Ensure Fair Pay for All Employees
This may seem like a basic concept, but it still needs plenty of attention. Doing everything you can to close the race and gender pay gaps in your organization shows your commitment to both DE&I and financial well-being — and to making them work together.
Recommended: How Employers Can Help Close the Racial Wealth Gap
Embrace Flexible Financial Contribution Programs
Personalized, relevant financial benefits can help you meet your employees where they are in terms of financial challenges and goals. When you offer a range of financial well-being benefits, you give employees the power to choose the financial programs that can help them the most.
The pandemic highlighted for many people the need for short-term, goal-oriented savings as well as long-term investing. Programs that can resonate strongly with today’s diverse workforce and its many needs include: emergency savings accounts; student loan repayment programs, including 401(k) matches for employees paying off student loans; budget counseling, and debt management tools. Established college tuition reimbursement and retirement savings programs are also vital parts of a holistic financial wellness program.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Get Creative
Don’t be afraid to think out of the box when it comes to expanding financial well-being programs so that you can include all employees. Many employers are reimagining traditional approaches to leaves and paid time off — for example, allowing employees to transfer unused PTO balances into accounts like emergency savings or 529 tuition savings plans.
Creativity is also important when it comes to education efforts. Simply offering new programs is not enough. Education efforts should be accessible, interactive, and customized so that each employee can find the information they need and act on it.
SoFi at Work has noticed that some employers are adopting a “learning journey” approach that allows workers to choose their own paths depending on where they are on their journey towards their individual financial goals and aspirations.
Recommended: Are Your Benefits Helping Women — Especially Moms — Achieve Financial Wellness?
Choose Credible Partners for a Sustainable Program
To provide this extra support and guidance across a broad spectrum of financial needs, you’ll need to choose credible partners that can provide expertise, platforms, and cost-effective services in specific areas. Good partners can help you launch personalized and sustainable programs that are accessible in the short-term, but also build the foundation for your department’s long-term goals.
The Takeaway
Employers can play a key role in ensuring that all employees have the same opportunities for financial success and control of their own financial futures. Democratizing financial well-being can not only create a more diverse and inclusive workplace, but ultimately a more equitable future for all of us.
SoFi at Work can help. We provide the benefits platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/pixdeluxe
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
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.
When it comes to their kids, many of your employees may be willing to put their retirement on the line.
As HR pros focus on workforce planning, understanding the burden that college costs impose on most employees is a key component for successful financial wellness programs.
Paying for college is a daunting challenge, and even financially savvy parents can become overwhelmed and confused by the college financing process. That’s where employer-sponsored education efforts can help. Employers who understand the following common college financing traps can better plan programs to alleviate the stress of paying for college and improve financial wellness overall.
Trap One: Prioritizing Their Children’s Education Over Their Own Retirement
By now, it’s become a financial wellness mantra: Parents should prioritize their retirement savings before saving for or paying for a child’s college education. After all, the thinking goes, students can borrow for education costs, but parents can’t borrow money to pay for retirement. And if parents don’t properly prepare for retirement, their children may end up supporting them in their later years, jeopardizing their future finances.
But with ever-rising tuition costs and the increasing burden of student debt, it may be harder for your employees to follow that tried-and-true advice. The cost of college has more than doubled over the past four decades — and student loan borrowing has risen along with it. Americans collectively owe more than 1.7 trillion in student loan debt, according to the Federal Reserve .
Trying to ease the burden on their children, your employees may be raiding their future. Among people aged 25 to 80 who are saving for both retirement and future college expenses, 58% say they are delaying retirement, and 41% say they have withdrawn money from their own retirement funds to pay for a child’s (or other relative’s) tuition, according to a July 2023 survey by the Society of Actuaries .
When an employee delays retirement to catch up on missed retirement savings or pay off education loans, it can be costly to an organization. What’s more, if paying for college forces an employee to work longer than they want to, the result may be a less productive, less engaged worker.
Recommended: SoFi Survey: The Future of Financial Well-Being at Work
Trap Two: Mismanaging PLUS loans
Parent Loans for Undergraduate Students (PLUS loans) are underwritten by the federal government and allow families to borrow without the same credit checks and other limits imposed on other types of lending. Because these loans are in a parent’s name, your employees may naturally gravitate to them as a way to help their children avoid debt.
But there are drawbacks. Unlike federal student loans, there are no limits on the amount parents can borrow as long as it doesn’t exceed education costs. To qualify for a PLUS loan, parents need only pass a check for an “adverse event” such as a recent bankruptcy filing or foreclosure. There is no consideration of the borrower’s ability to repay the loan. Given the often astronomical costs of attending a four-year college, your employees may quickly find they have taken on more debt than they can comfortably handle.
In addition, PLUS loan interest rates, set by the government each year, are usually significantly higher than student-held federal loans (8.05% for 2023-2024 versus 5.50%) and sometimes higher than some private college loans.
If parents default or consolidate their PLUS loans, or if they receive a forbearance or a deferment, the interest that continues to accrue is capitalized. That means that principal and payments can become even more unaffordable for employees. In addition, if the loans go into default, the government can garnish wages, Social Security checks, and tax refunds.
Recommended: Preparing for College Resource Guide for Parents
Trap Three: Avoiding College Financing at All Costs
Another common mistake lurks on the opposite side of the spectrum. In an effort to avoid college debt of any kind, parents who have some, but not enough, college savings may decide to forego saving for retirement, dip into retirement savings, or use home equity to pay tuition bills as they come.
Withdrawing 401(k) savings can result in significant penalties, taxes, and, importantly, lost principal and earnings. Cash-out home refinancing can lead to higher and perhaps unaffordable mortgage payments. Even putting retirement savings on hold when the year’s tuition is due can translate into large gaps in savings goals, depending on the number and ages of children attending college.
These are all understandable mistakes. As we saw above, an overreliance on debt to pay college bills can seriously jeopardize financial well-being. But so, too, can dismissing the strategic use of financial aid and loans to finance college costs.
For instance, your employees may neglect filling out the Free Application for Federal Student Aid (FAFSA), figuring that they earn too much to qualify for federal financial aid. According to Sallie Mae’s How America Pays for College 2023 report, 71% of families filed the FAFSA for the 2022-2023 academic year, down from 86% in 2016-2017.
These parents may not realize that without the FAFSA, the student will not be awarded federal subsidized and unsubsidized loans, which can be attractive for their low rates and, in the case of subsidized loan, help from the government in paying interest.
More importantly, many schools require students to submit a FAFSA to be eligible for merit-based scholarships and grants, even though these funds are awarded according to the student’s academic record and other achievements, not financial need. Merit-based aid does not have to be repaid and is usually awarded to undergraduates for the full four years.
While too much debt is never smart, a prudent and affordable mix of well-structured student debt can help parents avoid sacrificing retirement savings, home equity, and other long-term savings to pay for college now.
Employer-sponsored college financing education and one-on-one college counseling can help ensure parents understand the complexities of financial aid and student borrowing so they can balance long-term and current financial needs and goals.
The Takeaway
Employers who help parents avoid these common college financing traps may help alleviate what is fast becoming one of the largest sources of financial stress in your workforce.
SoFi at Work can help with student loan repayment platforms, extensive education efforts, plus a lending suite of student, graduate student, MBA, and parent loans. For organizations that are looking to help their employees get ahead on their education financing goals, SoFi at Work also offers a 529 College Savings Program, which can be integrated into any payroll system.
Photo credit: iStock/Orbon Alija
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
Amidst a backdrop of inflation, rising borrowing costs, and growing debt levels, employee financial wellness has been on the decline in recent years. According to PwC’s 2023 Employee Financial Wellness Survey, a full 60% of full-time employees are stressed about their finances. Indeed, employees are even more concerned about their finances today than during the height of the pandemic.
Given that money worries can take a toll on employee health and well-being, as well as productivity at work, it makes sense that a growing number of employers are enhancing support for financial wellness. Bank of America’s 2023 Workplace Benefits Report found that 97% of employers now feel responsible for employee financial wellness (up from 95% in 2021, and from 41% in 2013).
Regardless of how well-compensated your staff may be, this type of resource can help workers feel more financially confident and prepared for the future. Here’s a look at 10 reasons why adding this benefit is so important.
1. Decreases Distractions and Increases Productivity
According to PwC’s Survey (which included 3,638 full-time employed adults across a variety of industries), financially stressed employees tend to be more distracted and less engaged while at work. The study found that financial stress and money worries had a negative impact on the respondents’ sleep, mental health, self-esteem, physical health, and personal relationships. Nearly one-third of employees surveyed admitted that financial insecurity has negatively impacted their productivity at work.
When employees are able to easily get answers to their financial questions and access on-site support when dealing with money problems, there’s a good chance they’ll be less stressed about their finances and more able to focus on their jobs. That’s a win for both employees and employers.
2. Improves Employee Physical Health
Financial stressors have been found to correlate directly with not only mental health challenges but also with poor physical well-being. As the American Psychological Association points out in their Stress in America 2023 report, stress and anxiety put the body on high alert and ongoing stress can accumulate, causing inflammation, wearing on the immune system, and increasing the risk of a number of different ailments, including digestive issues, heart disease, weight gain, and stroke.
Providing your employees with the support they need now can go a long way toward staving off physical health challenges down the line.
3. Builds Loyalty
By offering financial wellness programs, employers demonstrate a commitment to their employees’ well-being, which can help foster employee loyalty and increase retention rates.
The PwC study found that just 54% of financially stressed employees felt there was a promising future for them at their employer, and they were twice as likely to be looking for a new job than employees who were less stressed about their personal finances. What’s more, 73% of financially stressed employees said they would be attracted to another employer that cares more about their financial well-being compared to just 54% of non-financially stressed employees.
Recommended: 3 Ways to Support Your Employees During Times of Uncertainty
4. Can Help Reduce the Burden of Student Debt
Employees struggling to pay down student debt often have difficulty contributing to 401(k) plans and achieving other financial goals, such as buying a house or car. By offering student loan repayment benefits and education, employers can reduce this burden and help employees plan for the future.
The good news is that these programs recently became more affordable. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, employers can now provide $5,250 tax-exempt annually for an employee’s student loan repayment through 2025. That means employees won’t pay income tax on contributions made by their employers toward educational assistance programs, yet the employer also gets a payroll tax exclusion on these funds.
A growing number of employers are offering some form of loan repayment support. In 2021, only 17% of companies offered any of these benefits. In October 2023, 34% of employers offered student loan benefits.
Recommended: How Student Loan Benefits Can Help Retain Employees
5. Employees Want It
According to the PwC study, the vast majority of employees want help with their finances. Not only that, the stigma around getting help with finances appears to be lifting. In 2023, employees overall were less likely to be embarrassed to ask for guidance or advice about their finances than they’ve been in the past: Just 33% said they find it embarrassing, compared to 42% in PwC’s 2019 survey.
In Bank of America’s Workplace Benefits Report (which surveyed more than 1,300 employees and nearly 800 employers), 76% of employees said they felt that employers are responsible for their financial wellness.
6. Can Help Parents Save for Future College Expenses
In a June 2023 survey of 1,000 parents of teenagers by Discover Student Loans, 70% of subjects said they were worried about financing their kids’ college expenses. In addition, 68% of parents were concerned about the amount of debt their kids will be saddled with even after the parents offer up their own financial assistance.
Providing employees with much-needed information about 529 college savings plans and giving them a convenient way to contribute directly from their pay, can go a long way in helping to relieve the stress associated with one of their top financial concerns.
While in the past, the options for using unspent 529 funds were limited (and often meant facing tax and penalty consequences), the SECURE 2.0 Act allows savers to roll unused 529 funds — to a lifetime limit of $35,000 — into the beneficiary’s Roth IRA, without incurring the usual 10% penalty for nonqualified withdrawals or generating any taxable income. The new rule went into effect January 1, 2024 and might come as a relief to any employees who worry about having excess funds stuck in a 529 should their child end up not needing the money.
Recommended: The Importance of Offering 529 Plan Contributions in an Employee Benefits Package
7. Helps to Clarify Confusing Financial Topics
Many young professionals want to buy their first home, but they don’t know how to save for a down payment or secure a mortgage. New to the workforce, they also struggle to understand financial topics they weren’t taught in school, such as income tax deductions (especially as they get married and have children), the necessity of life insurance, and wealth management and investing.
At the same time, older employees might feel overwhelmed by the financial options available to them. With educational resources and access to experts through a financial wellness program, employees can find the information they need from vetted and trusted sources. In PwC’s survey, 68% of employees said they use their employer’s financial wellness services such as coaching, workshops or online tools.
8. Protects Employees
Sometimes healthcare benefits just aren’t enough. In the event of a health emergency, employees need to be prepared for insurance deductibles and other unexpected costs. Solid financial preparations can prevent them from dipping into savings or making hardship withdrawals from 401(k) plans. Those withdrawals can not only damage their prospects for long-term financial stability, but also create administrative headaches for HR.
Providing an automated emergency savings program is fast becoming a way for employers to help provide a foundation for financial well-being for workers. These plans allow employees to make paycheck contributions to a dedicated account (possibly with a company match), and can help make your workforce more financially resilient in the face of life’s “What Ifs.”
Recommended: How Much Should Your Employees Have in Emergency Savings?
9. Enhances Your Organization’s DEI Efforts
These days, many employers of all sizes have a diversity, equity and inclusion (DEI) strategy or program in place to increase inclusion in the workplace. Offering financial wellness benefits to employees is yet another way to foster a more equitable company culture.
The reason is that financial wellness benefits can help level the playing field by helping to empower minorities and underrepresented groups, who may have more financial stress and encounter more barriers to economic opportunities. Giving all employee populations access to programs that can help them buy their first homes, pay down student debt, save for emergencies, and invest for the future allows them to build wealth for generations to come.
Recommended: How to Support Your Low-Wage Workforce
10. Helps Employees Plan for Retirement
Employer-sponsored retirement plans can help to ease the financial stress that stems from retirement planning. In addition to offering a retirement plan, you might also provide education programs on planning for retirement, understanding different types of accounts available, and best places to get started based on age and goals.
In addition, you might consider instituting a 401(k) match for their student loan payments. Thanks to a provision in Secure Act 2.0 (that went into effect at the start of 2024), companies can match employees’ qualified student loan payments with contributions to their retirement accounts, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans. With this benefit, employees won’t need to make the decision regarding whether to contribute to their 401(k)s or make student loan payments.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
The Takeaway
Financial stress is a major concern for today’s employees, and something a growing number of workers want their employers to help with. Providing support for financial wellness can help boost employee engagement and retention, stave off mental and physical health concerns, help your company recruit top talent, and even lead to a more inclusive and equitable workplace.
SoFi at Work can help. We provide the benefit platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/Inside Creative House
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Do you find yourself dreaming about what you would do if you were a millionaire? Maybe you fantasize about retiring early and traveling the world. Or perhaps what excites you is the thought of being able to donate to causes you care about.
But, you might be wondering, how to become a millionaire? You may suspect the only way you’ll ever be that rich is if you win the lottery.
Fortunately, the road to wealth isn’t that narrow — there are many ways to become a millionaire. For instance, some individuals retire with over a million dollars in savings because they made good financial decisions.
Others may have started businesses that brought them success, advanced their careers so that they made enough to save seven figures, or made smart investments.
Read on to learn more about how to become a millionaire, and strategies that could help get you there.
Introduction to the Millionaire Mindset and Goals
You may have a certain image of a millionaire in your mind. Maybe it’s a jetsetter or a celebrity. But many millionaires are not born into wealthy families or individuals who suddenly struck it rich. In fact, many millionaires are people who work for a living every day. In general, what tends to set them apart is that they have a millionaire mindset. They are smart and disciplined when it comes to their money. And they stay focused on their financial goals.
Defining What it Means to be a Millionaire
The true definition of a millionaire is someone with a net worth of at least $1 million. That means that their assets, minus any debt, is $1 million or more.
So, if you have $500,000 in savings and investments, plus a house that’s worth at least $500,000, are you a millionaire? Yes, if you own the house outright and don’t have a lot of debt such as car loans, student loans, or credit cards to pay off. But if you still owe money on your house and you’ve got a fair amount of debt to repay, you probably aren’t a millionaire. At least, not yet.
To do the math for your situation, total up your assets. Then subtract your debts from that amount. This will show you how close you are to reaching millionaire status, and possibly give you a sense of what you might have to do to get there.
Following these eight strategies can help when it comes to how to become a millionaire. 💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
Step 1: Stay Away From Debt
As we just saw in the example above, one thing that could be holding you back from becoming a millionaire is debt — especially if that debt is “bad debt,” a term often used for high-interest debt. Eliminating your debt is key because it’s difficult to build wealth if you’re paying a significant portion of your income toward interest.
Paying off debt could help free up money to invest and build wealth. One way to repay debt is to use the debt avalanche method. With this technique, you pay off your debts with the highest interest rates first and then focus on debts with the next highest interest rates (while still making minimum payments on all of your debt, of course).
Eliminating debt isn’t just about paying off existing debt, though, it’s also about avoiding the chances of going into debt in the future. Part of a debt payoff strategy could involve spending less so that you don’t need to rely on credit. You can also set a strict budget and pay with cash whenever possible.
In addition, you may want to create an emergency fund by setting aside a certain amount of money every month. That way, if you have a financial setback, you don’t have to go into credit card debt.
Step 2: Invest Early and Consistently
Investing successfully doesn’t happen overnight. It takes time. That’s why you need to start early. There are a few rules to know that could help you improve your chances of becoming a millionaire.
Benefits of Compounding Returns
First, compounding returns can make all the difference. They can help your money grow, as long as the returns are reinvested.
Here’s how they work: Compounding returns depend on how much an investment gains or loses over time, which is known as the rate of return. The longer your money is invested, the more compounding it can do. That’s why some individuals start saving aggressively when they’re young.
Saving $100,000 by the time you’re 30 might not be possible for everyone, but the more you save early on, the greater impact it could have on your net worth.
And here’s the thing: Even if you’re in your 30s, 40s, or 50s now, it’s never too late to start saving. The important thing is that you start, period. And that you keep saving.
There are other investing strategies that could help as you work on how to become a millionaire. For instance, you could reduce the amount you spend on investment fees. High investment fees can have a big impact on your returns, so you might want to look into low-fee investments.
Also, you should make sure that you invest in a way that’s right for you throughout your life. That may mean investing more aggressively when you’re younger and gradually becoming more conservative in your investments as you get older and closer to retirement.
Step 3: Make Saving a Priority
Your savings is the amount of money you have left after paying taxes and spending money.
Many Americans aren’t saving enough to become a millionaire — in October 2023, the average personal savings rate was 3.8%, according to the Bureau of Economic Analysis. You’ll likely need to save more than three times that amount to become a millionaire.
Effective Saving Strategies for Long-term Wealth
To save for your goals, start by investing in your company’s 401(k). Max out your 401(k) if you can. At the very least, invest at least enough to earn the employer match, if there is one. That way your employer is contributing to your savings.
In addition, consider opening a traditional IRA or a Roth IRA and contribute as much as possible — up to the limit set by the IRS. These IRAs are tax-advantaged, so they’ll help with your tax bill, too.
And investigate other savings options as well. For instance, you could open a high-yield savings account rather than a regular savings account for a higher return.
Step 4: Increase Your Income
You can’t join the ranks of millionaires if you’re not bringing in more money than you need for your basic necessities. The more money you make, the more you can save and invest.
Tips for Boosting Earnings and Maximizing Income
Some ways to boost your income include asking for a raise or looking for a new higher-paying job. You could also go back to school to earn an advanced degree that could lead to a position with a higher income. Your current employer might even help you cover the cost; check with your HR department.
Another one of the ways to earn extra money is to take on a side hustle. You could tutor students on evenings or weekends, do freelance writing, or dog sit. And those are just some of the options to consider.
Step 5: Cut Unnecessary Expenses
Getting control of your spending is critical to building wealth. That doesn’t mean you have to cut back on everything that gives you pleasure, but you could consider the happiness return on investment you get from the money that you spend. How big of an apartment or home do you truly need to be content? What kind of car do you need? Do you have to buy lunch out every day or could you bring your own lunch from home?
Identifying and Eliminating Non-Essential Spending
You could find ways to cut back on the things that don’t matter so much, but not skimping to the point that you miss out on things you love. For example, maybe you need your gym sessions (and there are plenty of low-cost gyms out there), but you can do without a $5 latte every morning.
Also, you could focus on cutting back on big expenses instead of those that won’t have a huge impact on your budget. For example, dining out only once a month, adjusting your thermostat higher or lower depending on the season, or finding a less expensive, smaller home could help you save a significant amount of money over time. 💡 Quick Tip: Distributing your money across a range of assets — also known as diversification — can be beneficial for long-term investors. When you put your eggs in many baskets, it may be beneficial if a single asset class goes down.
Step 6: Keep Your Financial Goals in Focus
To become a millionaire, you’ll need to stay laser-focused on your financial goals. When everyone else around you is spending money, going on fancy vacations, and buying expensive cars, remind yourself what’s truly important to you. Keep your spending in check, continue to save and invest, and avoid taking on debt.
It takes discipline. But instead of thinking about the stuff you don’t have, appreciate all the good things in your life, like your family and friends. Remember that you’re saving for your future. You’ll be able to enjoy yourself then if you have the money you need to live comfortably and happily.
Think of it this way: You’re making yourself and your financial security the priority. Make that your mantra.
Step 7: Consult with Investment Professionals
Investing can be complicated because there are so many options to choose from. If you need help figuring out what investments are right for you, consider working with a qualified financial advisor.
Leveraging Advice for Wealth Building
A good financial advisor could help you select the right investments and the best investing strategies for your situation. They can also help you plan and budget to reach your goals. But be sure to be an active participant in the process. Ask questions, be involved. Why are they suggesting a specific investment? And if you don’t feel comfortable with something, say so.
Finally, be sure to check your investment performance regularly. Know what you are investing in, how much, and why.
Recommended: How to Find the Best Investment Advisor For You
Step 8: Repeat and Refine Your Financial Plan
The final step to becoming a millionaire is to stay committed to your goal and your plan. Keep saving and investing your money. Stay out of debt. Let time and the power of compounding returns kick in. Be patient.
But also, don’t be afraid to refine or change your plan if need be. For instance, as you get closer to retirement, you will likely want to choose safer, less aggressive investments. You can keep saving and growing money throughout different ages and stages, but your method for doing so can evolve to make sense for where you are in your life.
Additional Tips for Wealth Building
In addition to all of the strategies above, there are a few other techniques that may help you reach millionaire status.
Lifestyle Considerations and Spending Habits
As you work your way up the ladder and earn more money throughout your career, you may be tempted to increase your lifestyle spending, too. After all, you have more money now, so you may feel the urge to spend it.
But here’s the thing: Giving in to these temptations can be a slippery slope. It might start with a bigger house in a nice neighborhood, and then grow to taking extravagant vacations and driving a luxury car. Before you know it, you could be spending way more than you’re saving.
Try to avoid lifestyle splurging if you want to be a millionaire. Instead, take the extra money and save and invest it. That way, you’ll be able to reach your goal even faster.
The Takeaway
Becoming a millionaire is possible if you take the right approach. It involves saving and investing your money, spending wisely, and avoiding debt. You need to be disciplined and focused, and it won’t always be easy. But staying committed to your goals can reward you with financial security and success.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
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Whether you’re funding your first savings account or growing an existing rainy day fund, actually depositing money into your savings should be the easiest part. But if you’re still taking cash or checks to your local bank branch, you might find putting money in your savings to be inconvenient and even time-consuming.
If you’re considering opening an online bank account, especially if that bank doesn’t have a local brick-and-mortar branch, you might wonder how to deposit money into savings accounts that are online. Here’s a look at how to regularly add to an online savings account without ever needing to leave your couch.
Automated deposits from an existing account
Automation is one of the best tools to help you reach your savings goals. By removing the hands-on element of the savings process, you save time and energy and eliminate one of the most common savings hurdles: getting in your own way.
Call it a sunny day fund—online savings with no monthly fees
Discover Bank, Member FDIC
With an online account, such as the Discover® Online Savings Account, you can set up automatic transfers from a linked account (such as your checking account). Once your accounts are linked, you can move money back and forth whenever you want to contribute to savings or withdraw for a special expense.
First, decide how often you want to contribute to your savings account. This decision might be based on a personal savings goal you’ve set or could depend upon your paycheck schedule. Next, think about how much you can afford to save. Keep your account’s cash flow in mind, like when you get paid and when bills are due. Lastly, plan to revisit your automatic savings plan occasionally to make sure you’re saving the right amount and at the right intervals.
Direct deposits
Many employers today offer direct deposit, which electronically puts your paycheck in your bank account. But did you know that you can usually route a portion of your pay into a savings account, too?
With direct deposit, you can allocate a flat dollar amount or even a percentage of your pay into a dedicated online savings account. This often involves speaking with your employer’s HR or payroll department, then filling out a direct deposit form with your savings account information.
Next, choose the dollar amount (or percentage). You’ll get the rest of your paycheck as usual—and grow your savings.
ATM deposits
You may have a regular influx of cash to deposit into your savings account, but visiting a local branch during banking hours may not be possible or convenient. In this case, you might be able to add cash to your account through a network ATM.
Some network ATMs allow you to insert cash using the debit card connected to your checking account. Assuming you maintain checking and savings accounts at the same institution, the machine will ask which account you want to deposit the funds into, then will count your cash and provide a receipt.
The benefits of making ATM deposits to your savings account are that you don’t need to wait in a long line, speak with a teller, or plan your visit around the bank’s business hours. Not all banks or accounts offer this service, though, so check whether your online savings account supports ATM cash deposits.
Can you deposit a check into a savings account?
With mobile check deposits, you can use your phone, web browser, or other connected device to deposit paper checks from anywhere. There’s no need to visit a bank branch or mail your check, and funds can sometimes be available in just minutes.
This process applies to both checking and savings accounts. You can make a mobile check deposit from your phone or other connected device to initially fund your account or add money. Just sign the back of your check, use the bank’s mobile app to take pictures of both sides, confirm the amount, and click “deposit.”
Transfers between accounts
Once you’ve linked another account—whether a Discover checking account or one at another banking institution—you can easily initiate transfers between your accounts. If you have multiple eligible Discover bank accounts, transferring between them is easy and can be done through the mobile app or online.
If you want to transfer from an external bank account into your savings, you should request to link the accounts. This process might take a few days to complete and is typically done through a series of small automated clearing house (ACH) deposits that you’ll confirm. Future transfers between financial institutions might take anywhere from a few hours to a couple of business days, depending on the accounts.
Another option is to make a wire transfer to your savings account from another bank account. Discover doesn’t charge for incoming wire transfers, but a service charge may be associated with domestic or international wires from your outgoing account.
Start adding to your online savings account regularly
Gone are the days of visiting a bank branch to fund your savings account. With a Discover Online Savings Account, you can set up automatic transfers, deposit checks from your mobile phone, arrange transfers from linked accounts, or even accept direct deposits from your employer. And if you’re wondering how to check your savings account online, that’s as simple as logging in on your device. It’s now easier than ever to manage your savings and meet your financial goals in the process.
Want to learn more? Visit the Discover Online Savings Account page to see how an online account can make planning for the future even easier.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
Inside: Explore top high income skills that don’t require a degree. From AI to Cybersecurity to copywriting, learn how to earn big and without a traditional education.
In today’s rapidly changing economy, traditional educational paths such as acquiring a master’s degree are no longer the sole route to a lucrative career.
In my own journey, I discovered that mastering certain high-income skills (stock trading) can lead to financial success that outpaces even those with advanced degrees. This revelation underscores the value of investing time and effort into developing marketable abilities that align with industry demands.
These high-paying skills, often honed through online platforms, specialized training, and real-world experience, provide a level of flexibility. Plus an earning potential that can exceed the prospects of conventional academic education.
As such, they represent a powerful, alternate paradigm for career advancement and personal growth that you may want to check out.
Quick Answer
Typically, these are based on online jobs that include expertise in certain fields. These roles leverage the digital space to generate significant income and careers are in demand into the foreseeable future.
You can learn and develop these skills through online educational platforms, which can open up a plethora of high-paying job opportunities without the need for traditional college credentials.
High Income Skills for Tech and Digital Domination
In case you haven’t heard, AI and the tech world are the focus of most high paying jobs.
In fact, Microsoft, Google, and Apple recently stated they will take certification over a college degree.1
Now, let’s explore the various high-income skills that are currently shaping the technology sector and will move to making over six figures.
AI and machine learning
AI and machine learning are not just buzzwords! These fields represent some of the most lucrative areas in tech. As businesses seek ways to make sense of big data, professionals who can design intelligent systems and algorithms are in high regard.
The beauty is that many resources exist to self-educate in this domain, such as online courses, bootcamps, and certifications, making the path accessible for those without a formal business degree.
Best for: This field is ideal for individuals who have a strong aptitude for mathematics, statistics, and programming, and who are passionate about tech and innovation.
Mastering SEO
Search Engine Optimization (SEO) has become a coveted skill in the arsenal of every digital strategist. Why is it so invaluable? Because it acts as the linchpin for visibility in the digital space.
SEO isn’t just about playing with keywords; it’s about understanding the user’s intent, the algorithms of search engines, and the technical makeup of websites to ensure they’re discoverable.
Mastering SEO involves a cocktail of abilities: from understanding meta tags and crafting content that resonates with both humans and search engines, to building a robust backlink portfolio.
Best for: SEO is suited for those who enjoy both the analytical and creative sides of digital marketing and are interested in a dynamic, ever-evolving field.
Cybersecurity
In the digital age, cybersecurity is not just important—it’s essential. Protecting sensitive data and maintaining the integrity of computer systems against threats can be the difference between a thriving business and one that’s exposed to potentially catastrophic breaches.
Notably, cybersecurity proficiency can often be achieved through specialized certifications, bootcamps, or practical experience rather than a traditional degree. Those who commit to ongoing education and remain vigilant of the industry’s pulse become indispensable assets in any organization.
Best for: Perfect for individuals who have a knack for problem-solving, are detail-oriented, and enjoy learning about technology’s cutting edge.
Software Development
As the pillars of our increasingly digital world, software developers write the code that powers everything from mobile applications to global banking systems. The lure of software development as a high-paying skill is evident.
It’s foundational to virtually every industry, offers diverse opportunities for specialization, and provides the satisfaction of building something tangible.
With abundant online resources like coding bootcamps and tutorials, passionate learners can bypass the traditional degree route and directly jump into this lucrative and fulfilling career.
Best for: Individuals who are logical, detail-oriented, and have a strong interest in technology and its potential applications will find a career in software development both rewarding and profitable.
Mobile app development
Mobile App Development is your ticket into the heart of the booming app economy. As smartphone ubiquity grows, so does the need for innovative apps that simplify life—whether that’s for banking, shopping, or entertainment.
Given the high demand for mobile experiences, companies are willing to pay top dollar for developers who can craft intuitive and effective mobile applications. The best part is that this skill can be honed through free courses or even app-building software for those with limited coding knowledge.
Best for: Perfect for those who are not only passionate about coding but also keen on understanding and improving how users interact with technology.
Blockchain Expertise
The field of blockchain has transcended its association purely with cryptocurrencies to become a high-value asset in various sectors. Businesses seek talented individuals who can leverage this technology for secure, decentralized solutions.
Unlike many traditional roles, the burgeoning blockchain field offers the chance for self-taught experts to demonstrate their value based on their skills, portfolio, and understanding of blockchain’s practical applications.
Best for: Blockchain expertise is a high-income skill ideal for individuals who have a strong foundation in technology and an interest in how it can be used to innovate traditional business practices.
Creativity Pays Off with These High Income Skills
Graphic Design
Embarking on a career in graphic design could very well be your gateway to a creatively fulfilling and financially rewarding job market. By marrying aesthetics with functionality, you bring concepts to life, whether it’s through website visuals, logos, or digital media.
The journey to mastering graphic design can be self-directed—you can learn the principles online, through software tutorials, and practice them into existence.
Best for: Individuals with a flair for the arts who enjoy thinking creatively to solve visual challenges and like the aspect of using technology.
Video Production & Editing
In a content-driven era, where video is king, mastery in this field could land you lucrative gigs across various platforms and industries.
Whether it’s for digital marketing, entertainment, or online education, the demand is high, and the barrier to entry is lower than ever—thanks to a plethora of self-teaching resources and accessible technology.
Best for: Those who have a keen eye for detail and a passion for creating engaging, high-quality video content that tells a story.
Professional Photography
Photography captures more than images; it encapsulates emotions, stories, and moments. With the advent of high-quality smartphone cameras and affordable DSLRs, the skill of professional photography is more accessible than ever.
Whether for stock photography, events, or branding, your keen eye for composition and lighting can open doors to a rewarding career without the need for a degree.
Best for: Individuals with a passion for visual arts, a creative mindset, and a strong sense of detail are often the best fit for a high-income career in professional photography.
Copywriting
The pen (or keyboard) can indeed be mightier than the sword in today’s digital-driven world through copywriting.
Articulating compelling narratives that resonate with audiences can catapult brands to new heights, making this skill a valuable asset. The best part? You can cultivate your copywriting prowess from anywhere, thanks to online courses, ebooks, and practice platforms.
All you need is a sharp mind, a clear writing style, and a grasp of persuasive techniques.
Best for: Copywriting is a top choice for those who love writing and are curious about a multitude of topics, with an interest in marketing principles and audience engagement.
Voiceover Artistry or Podcast Production
Unlock the power of your voice and make money – a skill set that’s becoming increasingly profitable. Whether you’re voicing animated characters or hosting a thought-provoking podcast series, the audio medium is a bustling marketplace.
Podcasting, it’s about creating a compelling narrative that listeners can’t resist. While for voiceovers, it’s about bringing scripts to life. Both can be learned through online tutorials, training programs, and practice.
Best for: Individuals with a strong, versatile voice and passion for storytelling will find voiceover work and podcast production both lucrative and rewarding, even without formal training.
Marketing High Income Skills Know-How
Content Creation
Content Creation has become the cornerstone of the digital marketing world, attracting not just audiences but also significant revenue streams. As a content creator, you can weave words, videos, or images to capture attention, inspire, and inform—whether it’s through social media, websites, or other digital platforms.
My path to becoming a content creator was primarily through hands-on experience as well as through consistent practice and staying up-to-date knowledge of digital trends.
Best for: Content Creation is especially suited for those with a creative mindset, who enjoy storytelling and are adept at using digital tools to craft content for an online audience.
Social Media Marketing
This is a brilliant intersection of creativity, strategy, and communication. As a social media marketer, you’ll help brands navigate the bustling social landscape, where billions of users engage daily.
You’ll be tasked with crafting campaigns, analyzing data, and connecting with audiences in a way that drives not just likes, but also leads and loyalty—all of which you can master through free online resources and real-world practice.
Best for: Those who enjoy fast-paced, dynamic environments and have a knack for engaging with people and understanding modern communicative trends.
Affiliate Marketing
Becoming an influencer and tapping into the world of affiliate marketing seems so easy but truly it is a strategy where your persuasion skills can translate into earnings—all without a formal degree.
By promoting products or services via unique affiliate links, you earn commissions on sales. Flourishing in this domain stems from understanding your audience and aligning the products you endorse with their interests.
Best for: Those who have a passion for sales and marketing, are comfortable with self-promotion, and are interested in monetizing their digital presence.
Sales Strategies
The key to unlocking staggering profit margins and business growth is sales and this doesn’t require formal education. This high-income skill revolves around understanding consumer psychology, building relationships, and convincingly presenting products or services.
Many times, those in sales have a knack for the industry. Whether refining your approach through online courses, books, or hands-on experience, excellence in sales comes down to a blend of empathy, insight, and adaptability.
Best for: Excellent fit for outgoing individuals who thrive in competitive environments and derive satisfaction from meeting and exceeding targets.
High Income Skills That Work With People
Language translation and interpretation
This is not only about converting words from one language to another; it’s about bridging cultural divides and facilitating communication. With the globalization of business and the rise of remote work, fluent speakers in multiple languages can capitalize on a multitude of high-paying roles.
And the best part? You can often get started with just bilingual proficiency, some formal certification, and a deep understanding of cultural nuances.
Best for: Ideal for multilingual individuals passionate about language and communication, with a desire to facilitate dialogue in an increasingly connected world.
Freelance consulting in various niches
These are seasoned professionals with an avenue to monetize their wealth of experience and expertise. This thriving field allows you to empower clients with your knowledge, whether it’s in marketing, finance, HR, or any other domain.
What’s more, you can kickstart this lucrative journey with minimal prerequisites—a strong track record, a portfolio of successful projects, and perhaps some industry-recognized certifications.
Best for: Experts in their respective fields who are adept at problem-solving, enjoy sharing their insights and are looking for flexible, high-income opportunities.
Coaching
This is a skill that transforms lives and careers, catapulting you into roles where you guide and motivate others to achieve their personal and professional goals.
As a coach, whether it’s in life, business, career transition, or personal development, you can create a substantial income stream. What’s particularly enticing about coaching as a high-income skill is that it often requires no formal degree—many coaches are self-taught, certified through various programs, and most importantly, driven by a passion to help others succeed.
Best for: Coaching is perfect for individuals with a strong desire to help others, who can cultivate trust, and who possess both the self-discipline and initiative to build their own coaching business.
Public Speaking
Often touted as a soft skill, public speaking has immense potential as a high-paying expertise. The ability to captivate, engage, and influence an audience is invaluable in various professional settings—from corporate presentations to motivational speaking circuits.
The good news is that you can develop this skill through local workshops, online courses, and ample practice. Perhaps even more compelling, is how public speaking bolsters other aspects of personal development, such as confidence and clarity of thought.
Best for: Individuals who enjoy expressing their ideas, exhibit strong interpersonal abilities and derive satisfaction from influencing and inspiring others.
Real Estate
A dynamic field where you can significantly profit from the buying, selling, and leasing of property.
With the right approach and knowledge, personalized by your unique sales flair, you can achieve notable success without the prerequisites of a higher degree. It’s all about your ability to network, negotiate, and understand market trends, guided by state-specific licensing requirements.
Best for: Suited to go-getters with an entrepreneurial spirit, a passion for property, and the perseverance to cultivate a strong portfolio of clients and sales.
High Income Skills for Introverts
Stock Trading
My personal gateway to the exhilarating world of finance, where the potential for high earnings exists for those with the knack and nerve for it.
This high-stress skill—often considered one of the most lucrative skills without a degree—entails buying and selling stocks or options to capitalize on daily market fluctuations. While challenging, with diligent self-education, a cool head for numbers, and a calculated risk approach, you can make stock trading a profitable venture.
Best for: Stock Trading is particularly fitting for those who exhibit patience, enjoy learning about economics and finance, and can handle significant levels of stress without clouding their judgment. Highly recommended to take an investing course.
UX/UI Design
Focusing on crafting meaningful interactions between users and products, UX/UI designers are the architects behind the intuitive use of websites and applications.
The plethora of free resources and communities available online means you can build a portfolio and learn this sought-after skill without a degree.
Best for: Creative minds who have an affinity for technology and user psychology and who enjoy the iterative process of improving product usability and appeal.
Web development and coding
Building and maintaining the structural foundation of websites offers a variety of high-income opportunities without necessarily requiring a four-year degree. Armed with the knowledge of HTML, CSS, and JavaScript, which can be self-taught through platforms like Codecademy, you can create and innovate on the internet’s exciting canvas.
Best for: Analytical thinkers who also appreciate creative expression, and those willing to evolve with the digital landscape constantly.
Data Analysis
Transforming raw numbers into actionable insights, data analysts contribute significantly to strategic decision-making. Fascinatingly, this skill is achievable without a degree, thanks to a plethora of online tools and courses in Excel, SQL, and Python that are freely available.
With a logical mindset and an eagerness to decipher data stories, you could secure a high-income position in businesses of all stripes, from tech startups to major corporations.
Best for: Suitable for those who enjoy crunching numbers, identifying patterns, and have a deep curiosity about how information can influence business strategies.
Bookkeeping
A critical yet often understated skill that plays a foundational role in businesses both big and small. As a bookkeeper, you steward financial accuracy, track transactions, and ensure the book balance.
What may come as a surprise is that modern bookkeeping doesn’t always require a degree—there are online courses that can pave the way for a high-income career for detail-oriented and number-savvy individuals.
Best for: Those who appreciate routine, enjoy working with numbers and take satisfaction in playing a key support role in a business’s financial health.
Must Need High Income Soft Skills
In today’s competitive job market, possessing high-income soft skills can significantly enhance your career trajectory and boost your earning potential.
These soft skills not only complement your technical abilities but also ensure you are a valuable asset to any team, fostering seamless collaboration and leadership. As the workplace evolves, employers increasingly seek candidates who exhibit a rich blend of interpersonal and strategic skills that drive business success.
Problem-solving skills for critical situations are invaluable, and the best news? Whether it’s through active listening, analytical reasoning, assessing risks, or critical thinking, being adept at navigating complex problems can set you apart in the workforce.
Communication skills in professional environments are the linchpin of a thriving career. Being able to articulate your thoughts and listen to others effectively means smoother collaborations and clearer negotiations.
Time Management for efficient productivity is a transformative skill that can make or break professional success. Mastering time management means accomplishing more in less time, leading to greater productivity without the need for a formal degree.
Leadership and Team Management capabilities signal an upgrade in your professional toolkit. Great leaders can marshal a group towards common goals, fostering teamwork, and eliciting the strengths of each member.
Negotiation Skills for Maximizing Value are a powerhouse in the world of commerce, crucial for deal-making and advancing business interests. Learning the art of negotiation is possible without formal education; it’s about understanding human psychology, effective communication techniques, and strategic planning.
Creative Thinking for Innovative Solutions is a valued asset in any business context, prized for driving forward unique and effective problem-solving. This type of thinking allows you to step outside traditional boundaries and generate fresh ideas.
Stepping into the entrepreneurial arena can be your ticket to independence and potential high earnings. Entrepreneurs are the trailblazers of the business world, initiating new ventures, and driving economic growth. While there’s no fixed educational path to entrepreneurship, the journey is fueled by a diverse skill set including innovation, perseverance, management, and the ability to pivot strategies as needed.
FAQs
A skill is considered ‘high-paying’ in 2024 if it is in high demand, offers significant value to employers or clients, and requires a level of expertise that’s not easily found.
These skills typically address current market needs, technological advancements, or specialized knowledge that can drive revenue, increase efficiency, or create competitive advantages. Essentially, the rarer and more necessary the skill, the higher the potential earning power becomes.
Yes, self-taught skills can compete with a traditional degree, especially in industries that prioritize practical experience and proven ability over formal education.
Personally, I can attest to this as I learned many of these high income skills long after I completed my degree.
In fields like technology, digital marketing, or creative arts, a portfolio showcasing your work often carries more weight than a degree. Furthermore, many companies adopt skills-based hiring practices, valuing competency and initiative as key indicators of a candidate’s potential.
Which High Paid Skill to Learn Will You Focus on?
In conclusion, acquiring high-income skills is a powerful strategy for advancing your career and unlocking new professional opportunities or even side hustles. In fact, many are ways to make money online.
This is a simple way to increase the amount of money you make each month.
By embracing continuous learning to hone these in-demand abilities, you can significantly enhance your earning potential and job market desirability.
Investing in the development of high-income skills will pave the way for a brighter, more prosperous future. Just like finding a low stress jobs that pay well without a degree.
Don’t just read. Now, is the time to take action!
Source
Business Insider. “Microsoft doesn’t require a college degree for entry-level jobs.” https://www.businessinsider.com/microsoft-execs-no-college-degree-for-entry-level-positions-2020-2#ping-look-who-leads-microsofts-cybersecurity-detection-and-response-team-added-that-candidates-who-apply-to-jobs-without-a-college-degree-already-signal-a-level-of-determination-that-she-respects-3. Accessed February 18, 2024.
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Inside: Explore the right ways to quit a job without notice. Learn the best excuses, how to resign gracefully with a sample resignation letter, and tactics for maintaining professionalism when quitting.
Resigning from a job without notice can be a highly discomforting experience, as it breaks the standard professional protocol and can leave an employer in a difficult position.
Such an abrupt departure might lead to awkward conversations with superiors or colleagues who may be blindsided by the sudden lack of manpower and the hastiness of the exit.
This is something you know must be done.
I know the embarrassment stems from the awareness that this action could tarnish my professional reputation and relationships within the industry. Moreover, exiting without notice may invoke anxiety about the possibility of negative references or the implications it could have on future job prospects.
Yes indeed, this uncomfortable decision carries with it a heavy weight of potential judgment and professional repercussions.
So, what do you need to do when it’s time to quit?
How do you politely resign without notice?
To resign without notice politely, it’s essential to write a succinct and professional letter to your direct supervisor or HR manager, stating your immediate departure.
Express regret for any inconvenience caused and, if feasible, offer to assist in transitioning your duties. Deliver the letter personally if possible, or via email if necessary, maintaining a courteous and composed demeanor throughout the process.
It’s crucial to keep communications respectful and to retain professionalism to ensure a positive lasting impression.
Quitting Without Burning Bridges
Resigning from a job is a significant decision, and it’s generally expected that employees provide notice, traditionally two weeks, when they decide to leave.
However, in certain situations, giving notice may not be feasible, and you may need to resign immediately. Even so, it is possible to part ways amicably and without causing undue tension.
Make sure you do the following items:
1. Formalize the Resignation
Submit a formal resignation letter and discuss with HR any final procedures you may need to follow, such as filling out exit paperwork or partaking in an exit interview.
This is the first step that must be taken care of with kindness.
2. Making Sure to Tie up Loose Ends
Leaving a job without notice certainly poses challenges, but it’s critical to make sure you tie up as many loose ends as possible. Doing so demonstrates your professionalism and reduces the potential for negative repercussions.
It is super helpful if you can document your work to show your current responsibilities and projects. Include deadlines, key contacts, and any necessary instructions to help the next person take over your tasks.
3. Offer Assistance with Transition
Be willing to help the company prepare for your departure. This can involve creating thorough handover notes, compiling a list of important contacts, or outlining the status of ongoing projects.
If possible, offer to train a replacement or the person taking over your responsibilities. This may not be feasible if you’re leaving immediately, but you could suggest remaining available for a set period to answer questions via phone or email.
4. Return Company Property
Ensure you return any company property, such as laptops, mobile devices, keycards, or other equipment or materials. Do this before your departure to avoid any misunderstandings or trust issues.
Best Excuse to Quit a Job without Notice
As you know, multiple factors may prompt a professional to resign abruptly and it is never easy. It is rarely taken lightly and often stems from compelling, unavoidable circumstances.
Here are some of the most common reasons.
#1 – Personal or Family Emergency as a Valid Excuse
Personal or family emergencies stand as one of the most understandable and widely accepted reasons for quitting a job without notice. When hardship strikes, employers often recognize the need for immediate attention and the impossibility of predicting these crises.
Here’s why a family emergency can be a valid family emergency excuse:
Unpredictable Nature: Emergencies, almost by definition, are sudden and unexpected, leaving little room for the luxury of planning.
Moral and Social Norms: There’s a broad acknowledgment in society of the priority of family and personal well-being over occupational obligations.
Legal Considerations: Some jurisdictions have laws that protect employees who must leave work due to family emergencies.
Human Understanding: Colleagues and superiors are often sympathetic to family emergencies since such situations can happen to anyone, at any time, fostering an environment of understanding.
The gravity of a family emergency that might compel one to quit abruptly could range from a serious illness or accident to a sudden need for care for a family member.
#2 – Sudden Health Issues that Require Immediate Attention
When an individual’s health or life is at stake, it invariably takes precedence over job responsibilities. However, many people should opt for short-term disability to keep their health coverage as well as a smaller paycheck.
Recovery from a health crisis isn’t always quick and can necessitate an extended period away from work that cannot be predicted at the outset.
Physical and Mental Limitations: Health issues might limit the physical or mental capacity to perform job duties effectively or safely.
Quality of Life: Severe health problems can drastically alter one’s quality of life, making job concerns secondary to finding a path to wellness.
Workplace Accommodations: Sometimes, current workplace accommodations may not be sufficient to support an employee’s health needs.
Legal Protections: In many regions, employment law provides protections for workers who must leave their jobs due to health concerns.
It’s worth noting that particulars around personal health are private, and sharing details is at the discretion of the individual. Moreover, a discussion with human resources may provide options such as a leave of absence or disability leave, which could offer an alternative to resigning.
#3 – An Irresistible Job Offer That Can’t Be Delayed
At times, a career opportunity arises that is so compelling it warrants immediate action, with a start date that doesn’t accommodate a notice period.
In such cases, the opportunity cost of staying may be too high to ignore. Especially if you can make over $10k a month.
Unique Opportunities: The offer might represent a unique or rare advancement in one’s career that is unlikely to come around again, making it a now-or-never decision.
Significant Benefits: An offer that significantly improves financial standing, work-life balance, benefits, or professional growth can merit a swift transition.
While quitting a job without notice is far from ideal, certain career moves justify this approach. In these situations, one must weigh the professional norms against the career-defining potential of the new opportunity.
#4 – Immediate Relocation Due to Spouse or Partner’s Job
Unfortunately, relocations are often dictated by the partner’s employer or business needs, leaving little choice or room for negotiation regarding timelines.
Tackling this conversation as soon as possible allows your employer to start considering replacements and preparing for the transition, while also demonstrating your goodwill and integrity despite the abrupt notice.
If possible, see if you can transition to a remote position and keep your job.
#5 – Encountering a Toxic Work Environment for Mental Health
A toxic work environment can significantly impact an employee’s mental health.
When these negative aspects of the workplace become overwhelming, resigning without notice can be a necessary step to preserve well-being. This could be from unreasonable pressure, harassment or bullying, excessive workload, or a persistently high-stress environment that can all contribute to an unhealthy workplace.
Document the Environment: Keep records of incidents that contribute to the toxic environment, especially if they are egregious or repetitive, as these may be necessary for explaining your abrupt departure if questioned by future employers or legal entities.
Consult with HR: Ideally, concerns should be reported to human resources or appropriate management before deciding to leave, but if the situation does not improve or worsens, this may reinforce your decision to resign.
In such environments, taking immediate steps to leave may be the best course of action for personal health.
#6 – Safety Concerns in the Workplace Demanding Prompt Exit
When an employee feels that their physical well-being is at risk, it becomes necessary to prioritize personal safety over professional obligations.
Here’s why safety concerns justify a prompt exit:
Legitimate Fear: If the work environment poses a genuine risk to physical health or life — due to hazardous conditions or failing to meet safety regulations — immediate resignation is warranted.
Unresolved Issues: Continued employment might not be tenable if you’ve reported safety concerns and they have not been addressed in a timely or effective manner by management.
Legal Compliance: Employers are legally obliged to provide a safe working environment. Non-compliance with this fundamental requirement creates a justifiable reason for employees to leave without notice.
When resigning due to safety concerns, clearly explain that your primary reason for leaving is the need to ensure personal safety. It’s important to have a record of safety concerns reported to the appropriate parties within the organization, even if those concerns were not adequately addressed.
#7 – Legal Issues That Hinder Continuation of Employment
Legal issues can be sensitive and complex, thus it is important to maintain confidentiality and professionalism throughout the resignation process. When legal constraints interfere with employment, here’s why they necessitate an urgent departure:
Binding Legal Obligations: Court orders, such as those related to family or criminal law matters, may impose restrictions on an individual’s movements or activities that are incompatible with their current employment.
Visa or Work Authorization Changes: For employees working in a country under specific visas or work authorizations, any changes or revocations in legal status can demand an immediate resignation.
Conflict of Interest: Discoveries of conflict of interest that might have legal repercussions for the employee or employer can justify instant resignation to prevent further complications.
Mandated Reporting: Certain legal issues could force an employee to stop working immediately, such as those involving mandated reporting of unethical or illegal activities.
Ensuring clarity and integrity in communication can help in maintaining a positive relationship with former employers and colleagues.
#8 – Ethical Conflicts
Ethical conflicts at work, such as being asked to engage in dishonesty or illegal activities, justify resigning immediately to preserve one’s integrity and avoid potential personal and professional repercussions.
Professionals who feel their personal values strongly clash with the practices or culture of the company may decide that an immediate exit is the only course of action that aligns with their integrity.
For many, this is a valid excuse to leave a job. One of the main reasons for working hard to become financially independent is important.
#9 – Significant Lifestyle Changes
Major life changes, such as getting married, having a child, or needing to care for a loved one, can result in the need for immediate resignation.
Also, choosing to further one’s education is a compelling reason to quit a job without notice, as enrollment opportunities and class schedules often necessitate quick transitions that may not align with traditional notice periods.
Regardless of the significant change happening in your life, you do not have to share all of the details with your employer. You just have to state the bare minimum information.
#10 – Lack of Job Security
Rumors of downsizing or concerns about job stability might provoke an employee to preemptively quit and seek a more secure position elsewhere.
This is not something that should be overlooked. Having a stable job is one of the foundations of being financially sound.
This can serve as a solid justification for resigning without notice. This decision underscores the importance of ensuring your financial and professional security in an unpredictable job market.
What are the best excuses to quit a job you just started without notice?
Quitting a job shortly after starting can be challenging, but certain circumstances can serve as valid reasons for making such a decision.
Here are some of the best excuses for leaving a new job without notice:
Misrepresented Job Role: Discovering that the actual job significantly differs from what was described during the interview process can be grounds for immediate resignation.
Unexpected Life Changes: Sudden personal changes, such as a family emergency or a significant other’s job relocation, may necessitate a quick move that isn’t conducive to employment continuation.
Health Concerns: Onset or discovery of a health condition that precludes one from fulfilling job duties is a compelling reason to leave abruptly.
Hostile Work Environment: Encountering a toxic or hostile work culture, if intense enough, is reason enough to depart without protracted notice.
Superseding Job Offers: Sometimes, a more fitting job offer with immediate start requirements might present itself unexpectedly after beginning a new position.
Ethical or Moral Discomfort: If the organization’s practices conflict with your personal ethics or beliefs to an unresolvable degree, this may justify the quick termination of the employment.
Choosing to quit a job without notice is significant, but when necessary, the above reasons coupled with a tactful approach can mitigate the potential negative impact on your career.
This is something my husband had to decide when a second offer came in after he accepted another position.
Template and Guidelines for Your no Notice Resignation Letter
A no-notice resignation letter should remain professional and succinct, addressing the essential points with respect and clarity. Here are the key components a letter of this nature should include:
Subject Line: If the resignation letter is sent by email, include a clear subject line, such as “Immediate Resignation – [Your Full Name].”
Salutation: Begin the letter with a polite greeting directed at your manager or the appropriate party, like “Dear [Manager’s Name].”
Statement of Resignation: Convey the intent to resign clearly and assertively, stating your position and last day, which will be immediate or as soon as possible.
Reason for Immediate Departure: Briefly explain the reason for leaving without notice. The language should be direct but need not go into personal detail.
Expression of Thanks: Thank the employer for the opportunity to work at the company, and acknowledge the experience and skills gained, regardless of the length of employment.
Offer to Assist: If viable, offer assistance in wrapping up your duties or helping with the transition. Proposals can include preparing handover notes or availing yourself of follow-up queries after departure.
Contact Information: Provide your personal contact details for any future correspondence, including your phone number and personal email address.
Closing and Signature: Close the letter with a professional sign-off, such as “Sincerely,” followed by your typed name and handwritten signature for a printed letter.
Drafting a no-notice resignation letter with these elements allows you to articulate your need to leave promptly while maintaining professionalism and respect toward your employer and colleagues. The objective is to facilitate the transition with as much grace and tact as the circumstances allow.
Sample Resignation Letters for Different Scenarios
Here are sample resignation letters for different scenarios that call for leaving without notice.
Due to Personal or Family Emergency:
Subject: Immediate Resignation – [Your Name]
Dear [Manager’s Name],
I am writing to inform you of my immediate resignation from my position as [Your Position] at [Company Name] due to an unforeseen personal/family emergency that requires my full attention. Please accept my regret that I cannot provide a traditional notice period, and I sincerely apologize for the abrupt timing.
I would like to express my gratitude for the opportunities and support provided to me during my time at [Company Name]. I have learned a great deal and have valued working alongside my colleagues.
Please now, I am available to assist in any way possible to ensure a smooth transition. Let me know if there are specific matters you would like me to address before my departure.
Thank you for your understanding during this difficult time.
It is with regret that I must submit my immediate resignation from my role as [Your Position] at [Company Name], effective [Today’s Date]. Unfortunately, due to recent and unexpected health issues that require urgent and extensive attention, I am unable to continue my duties and provide adequate notice.
I have genuinely enjoyed working at [Company Name], and I am very grateful for the supportive work environment and the professional development I have received.
I will do everything within my ability to assist in the handover process. Please inform me of any priorities that need to be addressed.
Thank you for your consideration, and I hope to remain in touch in the future.
Please accept this letter as formal notification of my resignation from [Company Name] as a [Your Position], effective immediately.
I have recently received a job offer that presents a substantial career opportunity for me and requires an immediate start. After careful consideration, I have decided to accept this offer. I understand that my sudden resignation may cause inconvenience, and for that, I deeply apologize.
I am grateful for the valuable experience and the professional growth provided to me at [Company Name]. It has been an honor to work with such a talented team and contribute to the company’s goals.
To assist in the transition, I am prepared to provide concise documentation and notes on current projects. Please inform me if you require any additional help.
Thank you for your understanding. I wish [Company Name] and my colleagues continued success.
These templates should be adapted to fit your particular situation and to reflect the tone and professional relationship you have with your employer.
Is it OK to resign effective immediately?
Resigning with immediate effect is generally not the preferred protocol and can be a challenging decision to make due to its potential impact on your employer, your team, and your professional reputation.
The common practice is to give your employer two weeks’ notice.
However, it is acceptable under certain circumstances, especially when continuing to work is not possible due to pressing personal reasons, safety concerns, health issues, or other severe conditions.
In the end, while resigning with immediate effect can be OK, it should be regarded as a last resort, utilized when circumstances are such that other options are not feasible.
Now, make sure you have other ways to make money to pay your bills.
If not, check out this list of low stress jobs that pay well!
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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!
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When it comes to racial inequity, a recent report from the Brookings Institution highlights some good news along with a concerning trend: Black wealth is increasing, but so is the racial wealth gap.
The report analyzed data from the Federal Reserve’s October 2023 Survey for Consumer Finances , a comprehensive survey on household wealth in the U.S. that is updated every three years. Household wealth measures the total value of assets a family owns (such as housing and business equity) minus their debts (such as student loans and credit card bills). Let’s take a closer look at the numbers.
Between 2019 and 2022, total wealth increased for all racial and ethnic groups, including Blacks. Median Black wealth increased from $27,970 to $44,890 but continued to lag behind other racial groups. In 2022, median wealth was approximately $62,000 for non-white Latino or Hispanic households and $285,000 for white households.
This means that in 2022, for every $100 in wealth held by white households, Black households held only $15.
Even more concerning: The nation’s racial wealth gap increased between 2019 and 2022. During that time, median wealth increased by $51,800, but the racial wealth gap increased by $49,950, resulting in a total difference of $240,120 in wealth between the median white household and the median Black household.
This gap has existed for a long time. Since 2010, the wealth disparity between Black and white families has continually expanded, the Brookings Institution notes, peaking in 2022. The divide largely stems from decades of systemic biases and structural barriers that have adversely impacted Blacks. Racial inequality in the housing, investment, debt, and credit markets has disadvantaged Black Americans’ ability to build, maintain, and pass on wealth. This has held true even as a healthy job market and rising home values have helped to boost Black wealth in recent years.
What Employers Can Do
While there is no magic bullet to end the racial wealth disparity, employers can use financial wellness programs to effectively narrow the gap. Offering the right tools and perks can give Black employees the opportunity to get a foothold in the housing market, accumulate savings, reduce their student debt, and build wealth over time.
Here’s a look at four programs that can help make your employees of color (along with all your employees) more financially resilient.
Promote Black Home Ownership
Owning versus renting a home contributes to wealth creation, but decades of discrimination in housing and credit markets have limited Black families’ access to homeownership. Only 44% of Black individuals own a home, according to the Brookings report, compared to nearly 73% of white individuals.
Offering benefits that promote employee home ownership can help bridge this gap and contribute to Black employee’s overall financial well-being.
Many employers are offering direct down payment assistance, such as paying a percentage of an employee’s down payment up to a maximum, or offering a loan that may be forgiven over a period of employment. This type of benefit is ever more appreciated in today’s inflated housing market, where mortgage rate hikes and limited inventory have caused down payment costs to swell.
Another way to help first-time Black home buyers is to offer counseling on accessing government-sponsored grants and low-interest loans designed to help first-time buyers cover down payments and closing costs. You might consider teaming up with local mortgage experts, financial counselors, and real estate pros (ideally from the Black community). They may offer free seminars and reduced fees and commissions for their services in return for a large pool of potential clients.
Recommended: Considering Housing Assistance Benefits? You Can Fight Discrimination Too
Provide Emergency Savings Support
On balance, Black households have a fraction of the wealth of white households, leaving them in a much more precarious financial situation when a crisis strikes. Wealth allows households to weather a financial emergency such as a loss of income or a family member’s illness.
A growing number of employers now offer ways to help employees bolster their backup savings so they’re able to meet unexpected expenses without racking up high-interest debt. This can provide all employees, and especially workers of color, increased financial stability and a foundation from which they can build long-term wealth. Having an emergency savings account can help employees feel more comfortable saving for retirement since they have funds set aside in case of emergency.
To encourage employees to prioritize emergency savings, consider offering an automated emergency savings program that allows them to make paycheck contributions to a dedicated account — possibly with a company match. You may also want to explore the new workplace emergency savings program linked to retirement accounts called PLESA (pension-linked emergency savings accounts) that went into effect on January 1 as part of the SECURE 2.0 Act.
PLESAs are designed to help employees increase their emergency savings while simultaneously saving for retirement. How it works: Employers can now offer non-highly compensated employees an option to link their retirement plan to an emergency savings account. Employees may make Roth (after-tax) contributions until the account maxes out at $2,500 (or a lesser limit established by the employer). After that, additional contributions can be directed to the employee’s defined contribution plan or put on hold until the balance falls below the limit, at which point the employee can start contributing again.
Balances in an emergency savings account are eligible for distribution at least once per month and the first four distributions in a year must be free from any distribution fees.
Recommended: How Much Should Your Employees Have in Emergency Savings?
Help Close the Investment Gap
Investing in the financial markets, and especially the stock market, has historically been a major way to build wealth, and many Americans today invest this way through defined contribution retirement savings plans such as 401(k)s. However, stock equity was the area with the largest disparity in wealth growth among races, according to the Brookings report. Indeed, stock equity makes up nearly 30% of white wealth but only 4% of Black wealth.
Targeted and effective financial planning and investing counseling can help Black employees more easily access the equity markets. To incentivize Black (as well as all) employees to start investing sooner rather than later, consider offering a 401(k) match — that free money can prompt workers to enroll and boost their contributions. You might also use a default opt-out feature, which automatically enrolls workers in your retirement plan unless they choose not to participate by actively opting out. Additionally, think about offering retirement benefits to more employees (including new and part-time employees). Not imposing a lengthy qualifying work period encourages more workers to save for retirement and consider their financial futures.
Recommended: How to Support Your Low-Wage Workforce
Offer Student Loan Repayment Benefits
A college degree can be critically important to building a financially successful career, but student loan debt can delay the lifelong process of building wealth just as people are starting out in their careers. This is particularly true for Black college graduates, who owe an average of $25,000 more in student loan debt than white college graduates. Indeed, four years after graduation, black students owe an average of 188% more on their student loans than white students.
Racial disparities in student loan debt are a big part of the Black-white wealth gap. The student debt burden impedes the ability of Black graduates to build wealth in the same way as their white counterparts.
Employer-sponsored student loan repayment benefits can help bridge this gap, especially when they are targeted to employees who need them most. Two important benefits to consider:
• Student Loan Repayment Assistance Under the CARES Act, employers can now contribute $5,250 annually per employee toward tuition reimbursement or student loan payments on a tax-exempt basis through 2025. Employers can make the payments directly to their employees’ student loan servicers or lenders, or they can provide them to the employees themselves, who can then put them toward their student debt.
• Matching 401(k) Loan Payment Contributions Starting in 2024, the Secure Act 2.0 formally authorizes matching contributions for student loan repayment. This allows companies to match employees’ qualified student loan payments with contributions to their qualified retirement accounts. Employees can pay down student debt while still participating in retirement savings, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans. This program can be a particular boon for Black employees, allowing them to pay down student debt while still participating in retirement savings, hopefully starting at an early age.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
The Takeaway
Employers can do their share to help bridge the racial wealth gap by offering the benefits and services that help Black employees in becoming investors as well as homeowners and reduce their student debt. This makes employers part of the solution to one of our nation’s most pressing and persistent challenges. SoFi at Work can help. We provide the benefit platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/kate_sept2004
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While it can be a challenge to keep up with both work and school, getting a part-time job while in college can help you cover your expenses and gain valuable work experience at the same time. In addition, some employers may even offer to pay a portion of your college tuition as a part of their benefits package.
There are all kinds of jobs for college students — from on-campus jobs with regular hours to side gigs you can do in your spare time. While students often find work in the retail and service industry, it’s also worth exploring other avenues for employment, including office work and even jobs related to your field of study. Read on for a basic guide to finding a job that can help you pay for college.
Table of Contents
Part-Time Jobs That Help Pay for College
Working part-time while you’re in college can help you pay for tuition and other expenses. These jobs typically offer flexible hours, allowing you to work around your class schedule.
You might start your search for jobs that help pay for college with businesses you already know and love. For example, you could see if your favorite cafe is hiring or ask about opportunities at the yoga studio you love. Even if they don’t have a paying position, some small businesses offer “service swaps” where you might be able to score free coffee, meals, or exercise classes for some light work. It pays to ask!
Here’s a look at other job opportunities that can help students earn money for college. 💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.
On-Campus Jobs
Colleges and universities hire students for a variety of jobs on campus. Part-time on-campus jobs are not only convenient but typically provide flexibility so you can work around your class schedule. Plus, a lot of on-campus jobs can help you build relevant skills that will serve you after graduation.
The career center at your school will likely have lots of resources that can help you find employment on campus, including an online job board. Your school can also help you find a job campus through the federal work-study program. To see out if you’re eligible for work-study, which is a needs-based program, you need to fill out the Free Application for Federal Student Aid, or FAFSA.
Below is just a sampling of on-campus job options you might consider, plus what they pay, on average, per hour:
• Administrative Assistant: $16.80 per hour
• Teaching Assistant: $17.56 per hour
• Research Assistant: $20.62 per hour
• Fitness or Recreation Center Attendant: $14.10 per hour
• Lifeguard: $16 per hour
• Peer Tutor: $12.73 per hour
• Library Assistant: $14.49 per hour
• Campus tour guide: $14.81 per hour
Paid Internships
Your school’s career center may also be able to provide information about internship opportunities in your field of study. Some college internships provide college credits, which can help you pay for college by reducing your tuition bill. In other cases, internships are paid. On average, college interns in the U.S. earn $24.63 per hour.
Don’t want to work during the school year? Summer can be a great time to focus on a career-boosting internship without distracting you from your coursework. According to a 2023 Glassdoor report , some summer internships are paying as much as $9,064 a month.
Securing a paid internship tends to be competitive, so it can be wise to apply early and make sure your application materials are compelling and complete. Internships can provide valuable learning opportunities and some of the top-rated internships even offer the opportunity for future full-time employment.
Serving, Bartending, or other Service jobs
Many college students work part time in the service industry because the hours are flexible and you can often earn tips in addition to an hourly pay. This can be especially helpful during peak hours and holidays because your income could be higher than usual. Here’s a look at some service jobs and their average hourly pay and tips:
• Barista: $14.86 per hour (plus $20 in tips per day)
• Restaurant server: $16.06 per hour (plus $100 in tips per day)
• Restaurant host: $14.79 per hour (plus $35.00 in tips per day)
• Bartender: $15.97 per hour (plus $150 in tips per day)
Recommended: Guide to Paying for College
Retail jobs
If you’re looking for a part-time job that will help pay for college, you might consider working in a local boutique or other type of retail store. These jobs also provide you with valuable human and workplace skills that can be used later in your professional career.
A retail sales associate is typically required to set up store merchandise and assist customers with their shopping needs. You also might even be able to get employee discounts or earn a commission. The average retail sales associate salary in the U.S. is $14.90 an hour.
Tutoring
You’ve been hitting the books and now it’s time to put all of that newfound knowledge to good use. You may be paying for your education, but there are also people out there willing to pay you to share what you’ve learned, which can help make college more affordable. Consider tutoring other college students or younger students in your area of expertise. Rates will vary based on location, subject matter, and your experience level. On average, private tutors earn $25.12 an hour.
Virtual Assistant
Sometimes small businesses and entrepreneurs need someone who can answer their emails, perform odd jobs online, and otherwise provide administrative support virtually. You might look for these gigs online or through your school’s career development office. Before you take on a role, it’s important to know what’s expected: Are they looking for someone to be available during specific hours or could you get everything done on your own time?
On average, a virtual assistant makes $19.19 an hour.
Recommended: 3 Summer Jobs Ideas for College Students
Babysitting or Caregiving
Babysitting can be another job option to help pay for college if you’re looking for flexibility. You can schedule jobs for weekends or nights if you’re worried about work conflicting with your school schedule. As a bonus, you may be able to squeeze in some studying while the little ones are asleep. On average, part-time college nanny jobs pay $25 an hour.
Keep in mind that caregiving isn’t just limited to little kids. You may find meaningful roles working with elderly or ill people who need help, either with day-to-day tasks or with errand running, housekeeping, or even just keeping someone company while they shop. On average, a part-time caregiver earns $15 an hour.
Dog Walking
Having flexibility during the day can mean everything for people who work 9 to 5 and need someone to care for Fido. Consider working for a walking service rather than striking it out on your own: It may provide guaranteed hours or jobs, so you can get to know the pooches you work with. The average salary for a dog walker in the U.S. earns $17 per hour.
Ridesharing or Delivery Driving
Driving for a ride-sharing or delivery service can be a good option during college, since you can generally set your own hours and fit the job into your schedule. How much you could make will depend on your location and the times you’re available to drive. Many Uber drivers make between $15 and $25 per hour, while the average hourly wage for food delivery drivers nationwide is $19/hour.
It can also be helpful to talk to locals to get the lay of the land — national earnings surveys may be very different from your local area, and it can be helpful to anticipate just how much demand there might be before you sign on.
Recommended: 11 Ways to Make Money While You Drive
Freelance or Start a Side Hustle
If you have a sought-after skill or talent, such as writing, website design, photography, or coding, you might consider starting your own freelance business or side hustle. You can advertise your skills on a freelance platform like Fiverr or Upwork. Or, you could solicit clients in your community. For example, you might be able to build a website for a local small business or get hired to manage an off-campus store’s online brand and marketing.
Consider Companies That Help Pay Your Tuition
Part-time jobs can be one option to help you pay for college, but what if you can find a job that not only pays you a salary but also pays for tuition? There are some major companies that offer stipends or reimbursements toward college tuition or expenses like books, even for part-time employees.
Employers generally offer tuition assistance in one of three ways:
• Tuition reimbursement Here, the company reimburses you for tuition you’ve paid. There may be a tuition cap and/or a requirement to work a certain number of hours or months before the benefit kicks in.
• Direct payment Some employers will pay eligible college costs directly to the school. In some cases, they only partner with certain schools.
• Scholarships Some employers offer education scholarships to employees for a set amount of money. As with other types of scholarships, you typically need to submit an application for the award and may also be required to maintain a certain GPA.
Here are some national companies that have well-publicized tuition assistance policies:
Chipotle
At Chipotle , tuition reimbursement (up to $5,250 each year) is available for both part-time and full-time employees. They also offer a Debt-Free Degree program, which covers the full cost of a four-year degree at one of 10 universities. Typically, employees must work at least 15 hours a week for four months to qualify for tuition benefits.
Smuckers
Smucker’s helps employees further their knowledge and skills by reimbursing them for some of the costs of qualifying continued and/or higher education. The company also offers a scholarship program for children of employees.
Publix
At Publix , associates with 90 days of continuous service who work an average of 10 hours a week are eligible to participate in the company’s tuition reimbursement program. The program covers graduate and undergraduate degree coursework, as well as some individual courses, online programs, and technical training.
Starbucks
Starbucks is often featured on these lists for a reason: They partnered with Arizona State University (ASU) to create the Starbucks College Achievement Plan which offers 100% tuition coverage for a first-time bachelor’s degree through Arizona State University’s online program. All employees eligible for benefits (this includes part-time employees) may take advantage of this program.
If an employee doesn’t qualify for admission to ASU, they can take part in the Pathway to Admission program, which will help them qualify for admission, tuition-free.
UPS
UPS offers a tuition assistance program at most locations in the U.S. Through their “Earn and Learn” program, you can receive up to $5,250 per calendar year, with a lifetime maximum of $25,000. There are no course or subject restrictions.
Walmart
Walmart will pay 100% of tuition and books for an associate or bachelor’s degree program through several online accredited universities. This benefit is available to hourly part-time and full-time associates without a prior bachelor’s degree starting on day one.
Amazon
Amazon offers tuition assistance for employees seeking a Bachelor’s degree, a high school GED, or English-as-a-Second-Language (ESL) proficiency certification. You’re eligible for the program after 90 days of employment for as many years as you work in a regular, full-time role at Amazon.
Recommended: Finding Jobs That Pay Off Student Loans
Think About Your First Job Out Of School
Another benefit of finding a job that helps pay for college: You can figure out what you do (and don’t) want to do for a living. It can also be helpful to assess certain job paths, including how much they may pay entry-level employees. While there are always lists of most and least lucrative majors, the reality is that your major doesn’t necessarily determine your career. Talk to alums and people a few years out of school and have them give you the lowdown on their job path.
When looking for your first full-time job out of college, it’s also important to consider not just your salary, but what benefits may come into play. For example, many companies now offer employees assistance in paying off student loans. How it works varies by company, but the typical plan offers matching funds or a predetermined recurring monthly payment towards your loan. Usually, there’s a maximum dollar amount you can receive and some employers require a minimum amount of time on the job. 💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.
The Takeaway
The combination of scholarships, student loans, and a part-time job can help you cover the cost of going to college for four (or more) years. A part-time job will not only help you earn some money, but it could also help boost your resume. In addition, some companies offer tuition reimbursement or assistance programs for part- or full-time employees pursuing higher education. These programs may have specific requirements, such as attending a certain school or working a set number of hours per week, so be sure you understand the requirements.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
How do you ask a company if they offer tuition reimbursement?
To find out if a company offers education benefits like tuition assistance, you can talk to your manager or HR representative (if you already work there). If you’re in the interviewing process, you can ask the recruiter or hiring manager. Or, you can check the company’s website (often they will describe their benefits, including who is eligible and any other stipulations).
What are the disadvantages of tuition reimbursement?
One disadvantage of tuition reimbursement is that you typically need to pay for your classes upfront, then submit the bill to your company for reimbursement. Some tuition reimbursement programs also have strict requirements and limitations, such as a cap on the amount of money that can be reimbursed, or only covering certain types of courses or degrees.
Also keep in mind that balancing work and courses can also be challenging for some employees to manage successfully.
Why would a company offer generous tuition reimbursement?
Many companies offer generous tuition assistance programs in order to attract, develop, and retain high-performing employees.
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The Mortgage Banker’s Association is again arguing that the proposed legislation to allow bankruptcy judges to alter the terms of a mortgage loan will result in mortgages rates one and a half to two points higher.
On December 12th, 2007, the House Judiciary Committee passed HR 3609, the so-called “Emergency Home Ownership and Mortgage Equity Protection Act of 2007.”
The proposed legislation ends a 110-year old federal protection that prevents bankruptcy judges from altering the terms of mortgage loans tied to primary residences.
“If this proposal becomes law, it will amount to a new tax on homeowners, costing them hundreds of dollars more per month and thousands of dollars more per year,” said MBA Chairman-Elect David Kittle in a statement. “The last thing potential homeowners, and those looking to refinance into new loans, need in this market is higher mortgage payments.”
The MBA believes that such a law would make it more difficult for mortgage lenders to accurately appraise property, leading to higher down payment requirements, higher closing costs, and steeper interest rates to offset risk.
“Congress is, quite laudably, attempting to help consumers who face difficulties paying their mortgages,” Kittle said. “But this law will, ironically, create future difficulties by increasing mortgage costs.”
“To help consumers, Congress should finish work on modernizing the FHA and pass a predatory lending bill that provides uniform protections for all consumers. Congress should not change the bankruptcy laws to help the few at the expense of increasing costs on every borrower seeking a new mortgage.”
The MBA has also launched the “Stop the Bankruptcy Cram Down Resource Center”, which provides state and county-level data explicitly indicating the potential costs to the average homeowner.
In California, assuming you hold a loan amount of $331,926 at a rate of 6% on a 30-year fixed mortgage, the new interest rate could be 7.5%, resulting in a monthly payment increase of $331, and an annual increase of $3,970.
Take a look at your state to see what the possible implications could be.