How Much Money Do You Lose to Taxes, and Do You Care?
About half of Americans would rather get a bigger tax refund than an extra $115 per paycheck, according to a recent survey Credit.com conducted. But a bigger tax refund isn’t always a good thing. Learn more about what you can do with a larger paycheck.
Methodology
Note: This survey was conducted for Credit.com using Suzy.com. The sample consisted of a total of 1,028 responses per question and is not statistically representative of the general population. This survey was conducted in October 2022.
In This Piece
More Than Half of Americans Prefer a Larger Tax Refund
What Can You Do with a Bigger Paycheck Instead?
How Can You Earn More Money Throughout the Year?
Ways to Get a Bigger Tax Refund
More Than Half of Americans Prefer a Larger Tax Refund
We asked more than 1,000 people aged 18 to 99 whether they’d like a $3,000 tax refund or $115 more in take-home pay on each paycheck. Surprisingly, 52% of the respondents in our tax refund survey said they’d take the bigger tax refund.
Men were more likely to choose the bigger tax refund, at 54.2%, and millennials aged 25 to 34 were the most likely age group to choose the bigger tax refund. People aged 18 to 24 were least likely to say they’d take the bigger tax refund.
It’s important to note that in many cases, getting a tax refund means you overpaid the IRS throughout the year. You could’ve kept the money yourself and put it to work for all those months instead of letting the government earn interest on it. If you’re not sure what your tax refund might look like, see how you can maximize your tax refund so you can plan ahead.
What Can You Do With a Bigger Paycheck Instead?
To find out how much money you lose to taxes, learn how to read a pay stub so you can add up your tax payments. If you’re paying too much and getting a refund every year, you can adjust your withholdings to get more out of your paycheck every payday. Here are a few things you can do with a bigger paycheck:
Invest more in retirement. When you’re paying less to the federal or state government every pay period, you have more money to invest in retirement. If you were already getting along without this extra money every pay period, it might be a good idea to contribute it to a 401(k) or other tax-deferred accounts. If your employer offers a contribution match, this is a great way to maximize retirement savings.
Pay off more debt. Alternatively, funnel that extra money every paycheck into paying off debt. Every little extra bit you can pay off each month cuts down on long-term interest expenses, so you may be able to save yourself a lot in the long term.
Invest in savings accounts. Sock the money away in savings accounts with high-interestyields for an easy, safe way to earn a little money on your cash. Savings accounts also ensure your money is readily available if you need it.
How Can You Earn More Money Throughout the Year?
What if you’ve already adjusted your tax withholdings so you’re not losing money every pay period to taxes unnecessarily? If you want more take-home income every month, you may have to look for other ways of earning money, including:
Side hustles. Join the gig economy to make extra money delivering groceries or food, writing content for others, doing surveys or market research, babysitting, walking dogs or any number of other tasks. Remember that, as a freelancer, you’ll be responsible for paying taxes on anything you earn via a side hustle.
Investments. Make investments so your money is working for you. You might invest in stocks and bonds, more conservative options like CDs or property you can rent or flip for a profit.
Asking for a raise. Boost your paycheck by asking for a raise if you think you’ve earned it, your current job duties have grown and aren’t in line with your pay or you haven’t had a cost-of-living adjustment in some time.
Getting help with finances. Get help managing your finances so you can reduce your debt or interest payments. If you can lower how much you need to pay on debt every month, you have a lot more discretionary income to work with.
Ways to Get a Bigger Tax Refund
If after everything above you still agree with the 52% of respondents in our survey who said they’d rather have a bigger tax refund, there are some things you can do to get one. They include:
Adjusting your withholdings so more is taken out in taxes each paycheck. Note that this will reduce how much you take home out of each paycheck.
Maximizing your tax refund. While you can do your taxes for free, you may find paid tax filing software has more options for increasing your refund via credits and deductions.
Get expert help with taxes. Work with professionals who can help you learn more about your tax situation and how you can maximize your refund. Start with information on Credit.com to get help with your taxes.
This article originally appeared on The Financially Independent Millennial and was republished with permission.
In the US, REIT stands for Real Estate Investment Trusts. The real estate industry is booming, which is great news for real estate investment trusts as they grow further. Anyone seeking a career opportunity with a REIT company can enjoy hearing the news that there are plenty of jobs available. How many jobs are available in real estate investment trusts? What kind of roles are available in the REIT industry?
This guide will explain how many jobs are available, how these real estate investment trusts work, and much more.
What Are Real Estate Investment Trusts?
In the United States, there are more than 225 REITs with a combined market capitalization of over $1 Trillion. A real estate investment trust (REIT) is a public investment vehicle and listed on the Stock Exchange. Furthermore, investors can even buy REIT ETFs to spread their investments among many real estate asset classes.
A REIT owns and runs income-generating real estate and related assets. The REIT could own buildings including offices, hotels, resorts, and more. However, real estate bought by the REIT isn’t for future resale. Instead, the property owned by the REIT is for development. Then, the property gets used as part of the investment portfolio to generate income.
Investors can buy and sell these assets easily and at a low cost. REITs also have much better liquidity than traditional real estate investments. Listings for REITs are on the New York Stock Exchange, American Stock Exchange, and the NASDAQ.
Investing in REITs allows groups of investors to make real estate scale investments that otherwise wouldn’t be possible. Smaller real estate investors can get access to larger real estate investments by investing in a REIT.
As the REIT sector continues to grow and diversify, analysts predict that many more jobs will become available in the industry.
How Do REITs Work?
In 1960, Congress created real estate investment trusts. The aim was to give everyone the chance to benefit from investing in income-producing real estate. Investing in a REIT is the same as investing in any other industry. Investors buy stock and shareholders with real estate investment trusts pay the shareholders a share of the income.
When REITs were first created by Congress, there were a set of rules established that REITs must follow. All REITs must be modeled after mutual funds, treated by the Internal Revenue Code as a corporation, and widely held by shareholders.
In addition, REITs must primarily own or finance real estate, and own real estate with a long-term investment horizon.
The Internal Revenue Code stipulates that at least 75% of the corporation’s income is either from rent from real estate, real estate interest, or the sale of real estate assets. The corporation must have at least 75% of its assets in real estate and 95% of the corporation’s income must be passive.
Are REITs a Good Investment?
Anyone wanting to diversify their investment portfolio without increasing the risk too much should consider investing in a REIT. There is still some risk as no investment is perfect. However, there are some good benefits of growing wealth by investing in a real estate investment trust.
The way a REIT works means it doesn’t pay corporate tax. Dividend stocks often face double taxation at the corporate and individual levels. The good news is that REITs are not taxed at the corporate level which means they enjoy a huge tax advantage.
REITs must pay 90% of taxable income to shareholders. Many REITs often have a dividend yield of over 5%, but average stocks have a yield of less than 2%. This makes investing in a REIT ideal for anyone looking for income or more to reinvest.
Real estate values tend to keep growing over time. Thanks to this, many REITs can capitalize by selling valuable properties and using the capital elsewhere. Many REITs provide returns far exceeding the market thanks to these strategies.
REITs Are Ideal for Smaller Investors
Small real estate investors can invest in commercial real estate that would otherwise be inaccessible. Most people can’t buy an office tower or shopping center themselves. Thanks to the creation of REITs by Congress, now anyone can invest in these types of buildings and enjoy receiving a return from them.
A sound financial plan means having a diverse investment portfolio. REITs work just like investing in the stock market, but instead of equities, it’s real estate. Investment advisors recommend owning real estate in an investment portfolio as real estate usually keeps its value even in an economic crisis. Investing in a REIT often means having a steady income.
If someone owns real estate, then it can take a while to sell. However, a REIT investment is easy to buy or sell at the click of a button. Having this level of liquidity makes REIT an attractive proposition.
Real Estate Industry Job Statistics
According to the United States Department of Labor, the need for real estate brokers and sales agents continues to grow. Average wages in the industry are $51, 220 per year with hundreds of thousands of people employed in the industry across the US.
In the REIT sector, average wages far exceed that of real estate brokers. The average analyst earns $106,412 per year which is more than double the amount of real estate brokers and sales agents.
There are 274,000 employees employed on a full-time basis by REIT organizations. An estimated 2.6 million full-time jobs get created indirectly by the real estate investment trust industry.
The good news for anyone seeking a career working for a REIT company is that growth is happening. This means plenty of employment opportunities and the ability to command a significantly higher wage than other parts of the real estate industry.
Types of Jobs Involved with REIT’s
There’s a wide range of jobs available in the REIT industry. To understand this better, here are the job descriptions of the main roles that are available.
Development Roles
Development is responsible for building new projects. Working in this role is ideal for anyone that is looking for project management work. As well as developing new projects this role also involves working with others to finance the development.
Jobs in development are highly sought after as they pay well, are challenging, and highly respected.
Acquisition Roles
An acquisition job is a role that involves sourcing new investment opportunities. And, these roles make sure that deals get done. Further, these roles are in REITs and pay well. The work is heavily finance-related and suits anyone with a degree or background in finance, marketing, business, or capital markets.
Property Management Roles
Property managers are responsible for overseeing the operation of a property–leasing, maintenance, collections, and anything else as required.
There are no minimum requirements to becoming a property manager. Ideal candidates include those that can handle a variety of situations and have good project management skills.
Starting as a property manager in a REIT company is often a great opportunity. This is because when other roles become available within the organization, there’s a good chance for career progression.
Asset Management Roles
Asset Management looks after the operational and financial health of the real estate investment portfolio. An asset manager needs to manage the client assets in line with the investment goals and agreed preferences. Asset managers develop, organize and maintain client portfolios.
A good asset manager will need to be capable of working with a variety of other teams. Acquisitions, accounting, development, and finance all interact with asset managers to work together on achieving results. At the same time, the asset manager must ensure compliance with the SEC, REIT regulations, and Sarbanes-Oxley.
It’s not unusual to start out working in acquisitions or property management, then move up to become an asset manager. Alternatively, anyone with the skills should be able to land an asset management role straight away.
Investor Relationship Roles
Investor Relations are responsible for coordinating and handling all communication with REIT shareholders. The role pays well and is ideal for anyone coming from a finance or accounting background.
The investor relations team will organize the annual meeting and meeting documents which include the annual report and proxy statement. And, all this must get done in accordance with SEC regulations.
Anyone with a background in accounting or finance would make a good candidate to apply for this role.
How Many Real Estate Investment Trust Jobs Are Being Created?
Data from LinkedIn shows that there are currently over 1000 jobs available in the REIT industry. That’s just one site and a great indicator there is lots of opportunity in the field.
The REIT industry is a sector that is growing fast. As well as needing investors, many other support roles need filling regularly.
Conclusion
The real estate investment trust industry is already sizable and continuing to grow. Working for a REIT company means following strict protocols for reporting and regulations. Many of the real estate investment trust jobs available require the applicant to have a background in accounting or finance.
However, other roles are available that don’t have these restrictions. Once working in a REIT organization, it’s then possible to move up to other roles should one become available.
You may have watched a movie in which a character pulls out a fancy black credit card and brags about how he has access to unlimited money. The reality is that there is no such credit card. Some credit cards do come with “no preset spending limit,” but even those cards have some sort of controls and restrictions.
When you have a credit card with no preset spending limit, each purchase is evaluated on a case-by-case basis for approval. As long as you are using the card responsibly and regularly paying down your balance, you shouldn’t have any problems with purchases being declined.
Do No-Limit Credit Cards Exist?
While most credit cards do come with specific credit limits, there are cards that intentionally have no preset spending limit. Those card holders never have to worry about managing their available credit. Instead, the issuer will evaluate each purchase as it’s made to determine whether to approve it. The issuer may also provide a tool where you can check beforehand to see if a purchase will be approved.
💡 Quick Tip: A SoFi Credit Card provides access to a line of credit. It’s essentially a short-term loan that you repay each month.
Unlimited 2% cash back rewards*
Earn 3% cash back on up to $12,000 in purchases your first year when you set up direct deposit through SoFi.** After that, earn 2% unlimited cash back on everything.*
Where Does the Idea of No Limit Cards Come From?
To “average” people who stick to a budget and pay their bills each month, there is something aspirational about a magical no-limit credit card. If you have an average credit limit, you might wonder what it is like to not be encumbered with one. Pop culture plays into this common desire to know what it would be like to be obscenely rich and not have to worry about money.
The Myth of the Black Credit Card With No Limit
In pop culture, the no-limit credit card always seems to be black, and there are ultra-luxury black credit cards. For example, American Express has the Centurion Card, which is a black credit card that is only available by invitation. But while the Centurion card (and other similar cards) don’t come with a preset spending limit, that doesn’t mean there is no limit at all.
Recommended: What Is a Luxury Good?
Pros and Cons of Cards With High Spending Limits
Here’s a quick overview of some pros and cons of high limit credit cards:
Pros
Cons
More convenient to pay for larger expenses
It may be tempting to spend beyond your means
Harder to go over your credit limit
If your card is stolen, you may be at a higher risk before you notice
A high credit limit can help your credit utilization ratio, when used responsibly
A higher credit limit could mean more debt to pay down
A higher spending limit may allow you to earn rewards like unlimited cash back
💡 Quick Tip: A SoFi cash-back credit card is a great way to earn rewards without a complicated redemption process. Even better, SoFi doesn’t place limits on the amount of cash-back rewards you can earn.
What Does It Take to Have a High Limit Credit Card?
Most credit card issuers use a variety of factors when deciding both whether to approve you for a credit card and what credit limit to extend. Here are a few factors that may come into play:
A Good Credit Score
Most cards that come with no preset spending limit are considered premium or luxury credit cards. That means that you will likely need good or excellent credit to be approved.
Recommended: 8 Tips for Maintaining a Good Credit Score
A High Income
Another factor that can help you to get a high limit on a credit card is a relatively high income. Banks generally use an applicant’s income as one factor in determining a credit limit for a card. If you have a low annual income, a bank may be hesitant to issue you a credit card with a high spending limit.
An Existing Relationship With the Bank
Many banks are interested in building a relationship with their customers, especially ones they consider to be high-value. Showing that you are a loyal customer can encourage a bank to extend you additional credit. Ways to build your relationship with a bank might include opening checking or savings accounts, taking advantage of their credit card rewards program, or responsibly using existing accounts with them.
The Takeaway
While some credit cards come without a preset spending limit, all credit cards have some limitations in place. There is no publicly available credit card that will allow you to spend and spend with no consequences. If you have a card with no preset spending limit, the issuer will decide on a case-by-case basis whether to approve each purchase.
Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.
The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1 Take advantage of this offer by applying for a SoFi credit card today.
FAQ
Is there a credit card that has no limit?
There aren’t really credit cards with no limit at all (like you might see in the movies). But there are credit cards that don’t have a preset spending limit. Instead, the credit card issuer will evaluate your overall financial information to determine whether to approve any purchases. This might include your income, net worth, relationship to the bank, and previous spending and payment history.
How do people get no limit credit cards?
Most cards that come with no preset spending limit are luxury credit cards, which means that you’ll need to have good or excellent credit. Having a high income is another factor that can improve your odds of being approved. You might also consider strengthening your relationship with the issuing bank, like opening a checking account or other credit cards.
What does no limit credit card mean?
A no-limit credit card generally does not mean a credit card with absolutely no limit at all. Instead, many times people are referring to a credit card with no preset spending limit. When you have a card with no preset spending limit, you won’t have a specific available credit or credit limit — instead, the bank will determine whether to approve each transaction based on your overall financial information and/or past spending history.
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The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1 1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
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.
A number of investors trade stocks and bonds through an investment broker. What is a broker? A broker — or brokerage firm — is the middleman between the buyer and seller and can help make a transaction go smoothly.
But an investment broker is not strictly necessary. Some companies offer a direct stock plan, allowing investors to purchase shares straight from the company without a broker.
In order to decide if you need an investment broker, it’s essential to know how a broker works, what exactly they do, and how to shop around for one that fits your needs.
What Is an Investment Broker?
Investment brokers enable individuals to buy and sell financial securities, like stocks or bonds, on an exchange market.
What does a broker do? Reputable brokers act as a boon to both buyers and sellers: They ensure that each party actually has the money to buy assets or the assets to sell.
Brokers settle trades by delivering securities and payments to each party, while also taking care of all the bookkeeping and tax-related documentation required. In many cases, going through a brokerage firm is the easiest and most accessible way for individuals to get started with investing. 💡 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.
Pros and Cons of Using an Investment Broker
As with any financial service, there are both benefits and drawbacks to using a brokerage firm to facilitate your trades.
Pros of Using a Broker
Accessibility
Thanks to the internet, you can open a brokerage account in minutes and start trading stocks as soon as your account is funded. That means employing a financial broker is one of the easiest ways to start an investment journey as quickly as possible.
Simplicity
When you buy and sell through a broker, a lot of the tedious footwork — like keeping tabs on your interest earnings for tax purposes — is taken care of for you. Depending on the type of brokerage firm you go with, you may also have access to professional financial advice and other advisory services that could help you make the most of your portfolio.
Cons of Using a Broker
Fees and Commissions
Although they’ll vary based on the specifics you choose and the type of account you open, some brokers charge maintenance fees and trade fees — also known as commissions — which can eat away at your nest egg. In fact, the average stock broker commission charged by brokerage firms is usually 1% to 2% of the value of the total transaction.
That said, you can minimize your investment fees, or even eliminate them, by shopping around for brokers with the lowest costs. For example, many online brokers offer no commission trading.
Required Portfolio Minimums
Although it’s not true of every brokerage firm, some require you to keep a minimum amount of money in your account to use their services. These minimums might be $1,000 or more, which can be a barrier to entry for some beginner investors.
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Two Types of Brokerage Accounts
If you’re still asking yourself, what does a broker do?, it’s important to understand that not all brokers are created equal. There are many kinds of brokerage accounts to choose from. For instance, you may want to choose between a brokerage account vs. a cash management account, both of which are offered by brokerages.
The best product for you will depend on your individual financial goals and your budget. Here’s what you need to know to help make an informed decision.
1. Full-service Brokerage Accounts
Along with the ability to buy and sell assets, a full-service brokerage account might also include advice from human financial planners and portfolio management to help you make the best investment decisions possible.
However, these perks don’t come cheap. Full-service brokerage accounts and wealth-management companies usually calculate their charges as a percentage of your total portfolio, and may have account minimums as high as $250,000. They may also collect trade commissions and annual management fees.
2. Discount Brokerages
Discount brokers offer less consultation and guidance, allowing you to DIY your investment portfolio cheaply. Many have $0 account minimums and may charge less than $10 per trade — or even offer commission-free assets trading.
Both full-service and discount brokerages typically offer both cash and margin accounts. In a cash account, you’ll need the actual cash to buy your assets. In contrast, in a margin account, the broker will lend you some capital to make purchases, using the securities you already own as collateral. 💡 Quick Tip: If you’re opening a brokerage account for the first time, consider starting with an amount of money you’re prepared to lose. Investing always includes the risk of loss, and until you’ve gained some experience, it’s probably wise to start small.
Regulations for Investment Brokers
Investment brokers are regulated by the Financial Industry Regulatory Authority (FINRA). Brokers must register with FINRA, and they are required to follow a standard of conduct known as the suitability rule. Under this rule, brokers need to have suitable grounds for recommending particular investments to clients.
The rule also encompasses something called “know your customer,” which spells out the various steps brokers need to use to identify clients and their goals for savings, including making a reasonable effort to ascertain a client’s financial and tax situation when recommending investments.
Different Types of Investment Accounts
Aside from deciding what type of brokerage you’d like to do business with (and how much you’re willing to pay for financial services), you’ll also need to decide what type of investment account works best for your goals.
Maybe you’re investing for a shorter-term objective, like purchasing a house — or perhaps you’re trying to ensure you’ll have a comfortable retirement. Either way, specific investment account types, or “vehicles,” are designed to help you get there.
Recommended: Understanding a Taxable Brokerage Account vs an IRA
Taxable Brokerage Account
Think of this as a default investment vehicle. It may be a good choice if you’re looking to grow wealth and want to be able to add or withdraw funds on your own terms without waiting to reach a certain age or life circumstance. However, you pay taxes on earnings, so there are no tax advantages to this type of account. If you don’t make any specific investment vehicle choices when you open your brokerage account, this is most likely the one you’re getting.
Individual Retirement Account (IRA)
An individual retirement account, or IRA, is a type of investment account designed specifically for retirement goals and is available to self-employed people and those working for a company. IRAs carry specific tax incentives; for example, contributions to traditional IRAs are deductible, while Roth IRAs allow for tax-free distributions. However, you can’t access the funds without paying a penalty until you reach age 59 ½ or meet certain circumstantial requirements, such as purchasing your first home.
A broker may offer other savings or investment vehicles, such as a 529 college savings plan, a tax-incentivized plan to help people save for educational costs. For full details on the type of accounts available, it makes sense to check with your broker directly.
Alternatives to Investing With a Broker
Although using a broker to invest in the stock market might be a smart money move for some, there are other ways to get started with investing, including the following options.
Recommended: Buying Stocks Without a Broker
Automated Investing
Automated investment products, or robo-advisors, are platforms that utilize a combination of computer algorithms and human financial planners to create and manage diversified portfolios at low costs to users.
Your funds will be invested in a diversified portfolio, and the platform typically offers goal-planning tools and rebalancing services to help keep your funds moving in the right direction.
If you don’t want to pay the high prices for a full-service broker, but self-managing your portfolio makes you more than a little nervous, a robo-advisor may be right for you.
Buying Stocks and Fractional Shares Directly
Depending on whose stocks you’re interested in purchasing, you may be able to buy them directly from the issuer without needing to go through a brokerage firm.
It pays to read the fine print, however: Buying stocks directly may save you money on trade commissions, but you may also be subject to proprietary fees from the company or minimum purchase amounts. And if you’re buying fractional shares (fractions of shares of stock), you need to have an investment account, such as one with an online broker or robo-adviser.
Diversifying your assets can still be helpful for investors who buy stocks directly. If all of your investments are tied up in a single company, you may not be in a great position if that company begins to falter. In contrast, if you’ve invested in several different firms and other asset classes, you will likely have a wider margin for error.
Choosing Alternative Investments
Although the stock market is one of the most popular and generally low-effort ways to invest, there are plenty of other ways to try turning your money into more money.
You might consider exploring alternative investments. For example, you could invest in real estate and sell the property at a profit or turn a condo into a passive income source by putting it up for rent. Or you might invest in art; the value of paintings is not necessarily correlated with the behavior of the stock market, giving it the potential to rise even during a stock market crash.
That said, many alternative investments require significantly more time, work, and know-how than crafting a diversified portfolio of stock market assets. And as always, every investment involves risk. There’s no such thing as a sure thing.
Controlling Your Investments With SoFi
If you’ve decided stock market investments are the right move for you and your money, going through a broker can be a relatively simple and low-cost way to gain access to the market. However, if you’d rather avoid potential downsides, like fees or required account minimums, you may want to consider the option to invest directly. The choice is yours.
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), 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.
FAQ
What is the role of a stock broker?
A stock broker is a financial professional who buys and sells stocks on behalf of clients. A broker generally earns a fee or commission for their services.
How do brokers make money?
Brokers typically work on commission. The average stock broker commission is usually 1% to 2% of the value of the total transaction.
Why do people use brokers?
People use brokers to help them buy and sell stocks and bonds. Brokers also handle the necessary bookkeeping and tax-related documentation. For many individuals, using a broker is the easiest way to start investing.
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.
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.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
If you’re like most people, credit card interest and taxes are two things you don’t want to pay. Luckily, paying one may help you pay less for the other. Credit card interest and fees are tax-deductible in some cases. That means every dollar you pay in credit card interest might reduce a dollar of your taxable income.
If that sounds too good to be true, there is a catch — credit card interest and fees are typically only considered tax-deductible if they are legitimate business expenses. If you don’t run a business, or the interest and fees were not incurred in the operation of a business, you generally won’t be able to deduct them on your tax return.
How Credit Card Interest Works
When you make a purchase with a credit card, you don’t have to pay for it right away. Instead, you are borrowing the money for the duration of your statement (usually one month). At the end of your statement balance, you must make at least a minimum payment. But if you don’t pay the full statement amount, you will be charged credit card interest on any outstanding balance. Charging this interest is one way that issuers fund credit card perks and benefits like credit card rewards.
💡 Quick Tip: When choosing a credit card, look for one that aligns with your existing spending habits. For example, some cards offer rewards on airline purchases for frequent travelers, while others, like the SoFi Credit Card, offer cash-back rewards on all purchases.
Unlimited 2% cash back rewards*
Earn 3% cash back on up to $12,000 in purchases your first year when you set up direct deposit through SoFi.** After that, earn 2% unlimited cash back on everything.*
Is Credit Card Interest Tax Deductible?
Whether or not credit card purchase interest charges are tax-deductible depends mostly on whether it is personal or business credit card interest.
Business Credit Card Interest
Business credit card interest may be tax-deductible in certain situations. Generally speaking, in order to deduct any expenses, they must be incurred in the regular operation of the business. The IRS does not have requirements about what type of credit card is used, as long as the interest is incurred on business expenses.
You may be able to deduct credit card interest on a personal credit card used for business purchases. However, most credit card agreements prohibit the use of personal credit cards for business purposes on a regular basis.
Not surprisingly, you cannot typically deduct credit card interest on personal expenses charged to a business credit card. And if you pay for personal and business expenses with the same credit card, you may not be able to deduct the full amount of interest. Consult with your accountant or tax advisor if you have questions about what can and cannot be deducted.
Personal Credit Card Interest
Personal credit card interest is not tax-deductible under any circumstances. You cannot deduct interest that you pay for personal expenses on a credit card. That’s one more reason to always pay your credit card statement in full, each and every month. That way you aren’t charged any credit card interest.
Recommended: How to Do Taxes as a Freelancer
Are Credit Card Fees Tax Deductible?
Just like credit card interest, the deductibility of credit card fees largely depends on whether they are for business expenses.
Business Credit Card Fees
Credit card fees that are incurred as business expenses are generally considered deductible. This includes credit card annual fees, overdraft fees, foreign transaction fees, late fees, and balance transfer fees. As long as the credit card is used for business purposes, any fees charged by the credit card issuer will be tax-deductible.
💡 Quick Tip: When using your credit card, make sure you’re spending within your means. Ideally, you won’t charge more to your card in any given month than you can afford to pay off that month.
Personal Credit Card Fees
In contrast, personal credit card fees are not generally considered deductible. Any fees that you are charged by your credit card issuer that are not business expenses cannot be deducted from your taxable income.
Recommended: Can You Use a Personal Checking Account for Business?
Avoiding Interest and Fees vs Tax Deductions
While it’s important to understand that you may be able to deduct credit card interest and fees if they are business expenses, avoiding credit card interest may be the more prudent thing to do. If you are in a 30% tax bracket, that means deducting one dollar of interest will save you 30 cents. But if you pay your balance in full, you won’t be charged any interest and save the full dollar.
The Takeaway
Some credit card fees and interest is deductible on your annual tax return. Generally speaking, you cannot deduct personal credit card interest or fees. You may be able to deduct them if they are legitimate business expenses. Keeping your business and personal expenses separate can help you determine which fees and interest you may be able to deduct.
Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.
The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1 Take advantage of this offer by applying for a SoFi credit card today.
FAQ
Can you deduct credit card interest as business expense?
As credit card interest rates rise, the amount of interest that you’re charged each month on any unpaid balances also rises. So you may be wondering if you can deduct credit card interest from your taxable income. The good news is that as long as the interest is a legitimate business expense, you can generally deduct the interest.
Are credit card fees tax deductible?
It’s important to understand how different credit card-related items affect your taxes. Credit card rewards are generally not considered taxable, while some credit card fees may be tax-deductible. You may be able to deduct most credit card fees as long as they are considered legitimate business expenses. Personal credit card fees are not generally considered deductible.
Can you write off personal credit card annual fees?
No, in nearly all cases, you cannot take a tax deduction for personal credit card fees. Only credit card fees that are legitimate business expenses are tax-deductible. However, it’s important to understand that the IRS does not make any distinction between what might be marketed as a “personal” card or a “business” credit card.
Photo credit: iStock/Cameron Prins
The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1 1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
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.
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.
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
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Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
Know someone else that needs this, too? Then, please share!!
In the wake of the Covid-19 pandemic, the world of retail investing has experienced a growing number of new arrivals looking to place their money in the stocks and shares that they believe in.
Emotional investments and allowing fear or greed to control decisions can lead to clouded judgement in the investing landscape. In these cases, it’s vital to look at the bigger picture–stock market returns may debate significantly in short-term waves. However, the historical returns for large-cap stocks can average 10% over longer-term scales.
(Image: Financial Times)
As the data above shows, increasing volumes of retail investors have led to unprecedented levels of option trading–with over 40 million contract calls being taken out in February 2021 alone.
(Image: Financial Times)
Despite more retail investors entering the market in the wake of the pandemic, the fluctuating trading themes in the chart above shows that many are still struggling to settle on a place where their money is best invested. Although ETFs have seen the largest volume of net purchases taking place over time, meme stocks, ESG stocks and growth stocks have all risen to the fore in recent months respectively.
The world of investing is a tremendously rich and diverse place, with countless opportunities for individuals to grow their wealth.
1. Avoid Falling in Love with a Company
One of the most significant issues that retail investors can face stems from allowing their emotions to control their decisions. They can make investments in a company with healthy fundamentals, experience impressive growth, and build too much of an emotional connection with their stock to pay attention when the fundamentals change and their holdings start to decline.
Keeping vigilant, and regularly zooming out to see the bigger picture can pay dividends when it comes to investing – particularly in companies that you feel yourself developing a rapport with.
2. Lack of Patience
On the flip side, it’s also vital to avoid falling out of love with your investments early, too. This can cause you to miss out on excellent opportunities simply by believing that you’ve arrived too late, or by getting fed up with waiting for the stock to move.
By adopting a more slow and steady approach to building your portfolio, it’s possible to yield greater returns over the long term. However, expecting a portfolio to do something that it isn’t prepared for is a path to disappointment. Remember to maintain realistic expectations for your portfolio growth and prospective returns.
3. “Over-trading”
As we saw in the above chart regarding the rather erratic investment patterns of retail investors, newcomers to the space may well be indulging in ‘over-trading.’
In February, Bloomberg ran an article warning about how ‘bored lockdown traders are a danger to themselves.’ Repetitive position shifting, or hopping from one position to another, is another sure-fire way to kill your profits. Significantly, transaction costs can significantly impact your bottom line – as well as the opportunities for sustainable growth you avoid through jumping out of the long term returns of your investments.
4. Choosing to Stay Loyal to a Losing Bet
The definition of insanity may be the act of doing the same thing over and over again and expecting different results, but in the world of investing, this can more appropriately refer to sitting by and watching your stock shed its value further and further whilst expecting it to eventually move back up.
“Behavioural finance calls this ‘cognitive error,’” explains Maxim Manturov, head of investment research at Freedom Finance Europe. “By not realising a loss, investors lose in two ways. First, they avoid selling the loser, which may continue to fall until it becomes worthless. Secondly, it is a missed opportunity to make better use of investment funds.”
“So, before you invest in a company, you should research the company and know how it operates,” Manturov adds. “You should also adhere to the principle of diversification to reduce the risks of individual sectors or companies and not allocate more than 5-10% of the portfolio to one company.”
As painful as it may be, sometimes, it’s a good move to sell your stocks in a company that’s continually falling. By cashing in your losses, you may be able to free up enough liquidity to invest in a stock with far better fundamentals.
5. Lack of Rebalancing
Rebalancing refers to the process of returning your portfolio to the target asset allocation as specified in your investment plan. Rebalancing isn’t an easy process because it can force you to sell an outperforming asset class and buy more from the asset class with the worst performance.
Because of this, rebalancing can seem like a counterintuitive move for newcomer investors. However, a portfolio that is allowed to drift with market returns ensures that asset classes can become overweight at market peaks and undervalued at market lows – resulting in poor performance.
The lack of rebalancing can hurt your portfolio in a similar way to sitting on losses whilst hoping for a change of fortune. By having the strength to sell your high performing asset class and to spend it on fresh, relevant investments, you can help to ensure the long-term sustainability of your portfolio.
6. Ignoring risk tolerance
Sadly, for many investors, it may be difficult to understand their risk tolerance prior to making their first investments. However, it can be extremely beneficial to listen to what your head is telling you during periods of severe volatility and building your portfolio around the level of risk you can cope with being exposed to.
(Image: Medium)
Some markets are more volatile than others by nature, and this is particularly true of cryptocurrency investing – where the price of assets like Bitcoin have been known to rise and fall by as much as 50% over a matter of weeks.
With this in mind, it may be worth beginning your investment journey piece by piece, measuring how well you can respond to volatile stocks before placing larger volumes of your portfolio in them.
7. Practice patience
Finally, it’s imperative that new investors practice patience when making their first investments. With this in mind, it’s important to avoid letting greed control your decisions – and this can extend to buying stocks in which you’re expecting quick growth.
Markets can move in unpredictable ways, and external news events can cause market turbulence where none could’ve been anticipated. With this in mind, it’s important to remain patient with stocks that display good fundamentals but aren’t moving in an affirmative manner.
At its best, investing can be a wholly rewarding and engaging experience for individuals to grow their wealth through hard work and market insights. With these seven tips, it’s possible for you to begin your investment journey whilst giving yourself the best chance of finding your feet in the market as soon as possible.
If you’re wondering whether you can lower your rent, the answer may be, surprisingly, yes in some situations.
The prospect of bargaining down your rent may sound futile or intimidating. But, thanks to a little research and a well-planned approach, it may be possible to land a better deal.
The odds of successfully lowering your rent will probably depend on a few factors, including how much comparable rentals in your area cost, the value you represent to your landlord, and the general state of the economy and the rental market.
To decrease the awkwardness of haggling and increase your ability to sweeten your deal, you may want to try one or more of these clever and effective negotiating techniques.
The Benefits of Negotiating Rent
The obvious payoff of reducing your rent is more cash left over at the end of the month.
But you may also want to consider the longer term benefits. Let’s say you’ve successfully negotiated your monthly rent down by $100.
It’s nice to have that extra $100, of course. But over the course of a year, that monthly savings adds up to $1,200.
Let’s say you applied that $1,200 yearly savings to paying down credit cards or a student loan debt (rather than paying the minimum).
You might be able to save significantly on interest payments and also boost your credit score (which could help you save money in the future by helping you to get loans and credit cards with better terms).
Recommended: What Credit Score is Needed to Rent an Apartment in 2023?
Or, you could funnel that monthly $100 saved into a high yield savings account and start building a downpayment on a home (if you’d prefer to own vs. rent) or an emergency fund, or working towards another savings goal.
If you were to invest an extra $100 into your 401(k) retirement fund or other retirement savings each month, it could yield a significant income stream decades from now. (If you’re already contributing to these accounts, be aware of the annual limits.)
In addition, by learning how to negotiate, you’re also developing a lifelong skill of standing up for yourself and cutting better deals as an experienced negotiator, which could pay off in other areas of your life.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Timing it Right
As eager as you may want to cut a good deal and do so as quickly as possible, it can be wise to time your approach to maximize your chances of success.
That means negotiating at the right moments, when your landlord may be more amenable to cutting a deal.
Those times might include:
• The end of the month, when other tenants may have vacated the property and your landlord may enjoy the stability of a long-term tenant.
• 90 days or so before your current lease expires. That’s enough time to offer to sign another lease, but only at terms favorable to you. If you’ve been a good tenant, and the market is soft for new tenants, your odds of renegotiating a lower rent may be stronger.
• At the beginning of the calendar year. Typically, winter is a slow time for property rentals, especially in the colder climates when moving is more difficult, and it may be harder for landlords to find new tenants. Stepping into the vacuum with an offer to stay another year–at a lower monthly rental price– might give you some new-found leverage.
💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.
Knowing What the Competition is Charging
To help build your case when approaching your property owner about a rental reduction, it can help to know the lay of the land.
If you can prove that you could live more inexpensively in a nearby rental based on local housing trends, your landlord may be more inclined to grant a discount, rather than lose your business to the competition.
For that reason, it’s a good idea to do a little digging, consider the cost of living, and comb through online listings to find out the rents of comparable units or properties in the area.
Perhaps a similar one-bedroom apartment for rent has an amenity that’s not offered at the apartment you’re currently in or considering. You might point out how these factors make the landlord’s current rental terms somewhat higher than the going market rate.
When you speak to the landlord, it may help to have a printout of comparable apartments that are slightly lower in rent and, if the unit has been unoccupied, have this information on hand as well.
You may also want to check what other apartments in the same complex or rented out elsewhere by the same landlord currently cost. This can help keep you from overpaying for an apartment and may also help you negotiate a lower rent.
Recommended: Reasons to Switch Banks
Offering a Lump Sum
If you can afford it, adding a lump-sum payment (say, three months of rent upfront) may strengthen your bargaining power and boost your odds of reducing your overall rent payment.
That’s because many landlords prefer having rent in hand and not having to worry about late or no rental payment from tenants.
What’s more, offering an upfront, lump-sum payment is one way to show a landlord that you’re serious about being a solid tenant.
A landlord may be more amenable to doing business with a tenant who is willing to go the extra mile.
Considering a Longer Lease
If you particularly like the house or apartment you’re renting, you might consider offering the landlord a longer lease in exchange for lower rent payments.
If, for example, a landlord is offering a 12-month lease to a new tenant, at a fixed monthly rental price, and you agree to extend that lease to 18 or 24 months, you might be in a stronger position to ask for a rental discount.
All things being equal, landlords tend to favor tenants who’ll be around for the long haul, and may be more likely to green-light a lower rent for a longer lease arrangement.
Recommended: Can You Pay Rent with a Credit Card?
Cashing in on a Referral
Landlords typically loathe empty apartments, so if you can help fill a rental unit with a referral or two, it might put you in a better negotiating position to ask for a rental price deduction for helping out.
Rental unit owners usually have to pay for classified ads to lease their open units. In addition, landlords often have to put some sweat equity into showing units, chasing down tenant leads, and vetting potential lease applicants.
By bringing your landlord good, qualified, and stable tenants, you may be able to become a valuable asset for your landlord, and help build a more robust case for a rental deduction in the process.
Not Just Focusing on Price
Yes, the primary goal in a rental negotiation is to bring the price down.
But in case that conversation proves fruitless, you may also want to consider some other perks or benefits you could ask for in lieu or a rent reduction.
Some ideas:
• A prime parking space (especially in urban areas)
• New appliances and/or fixtures in your home or apartment
• New or larger storage space
• “First dibs” on better apartments or homes in your complex, once they free up
• A waiver of fees and charges on things like gym memberships, parking privileges, community rooms, water or trash removal, or other services and amenities
• Extra parking passes for guests
• Allowing you sublet for the summer (if you plan to be away)
• One or two months free
Recommended: Passive Income Ideas to Build Wealth
Giving your Landlord a Heads-Up and Being Polite
Nobody likes to be ambushed on financial matters. That’s why you might have more success if you call your landlord well ahead of when you need to sign the lease and politely let them know that you’d like to discuss the terms of the lease, and are wondering if they would be open to a price reduction.
You might then suggest having a meeting (in person tends to be best, since it can be harder to say “no” to someone when you’re sitting face-to-face) some time in the next week or two.
This gives your landlord some time to consider the situation while also giving you some time to build your case.
In addition, giving your landlord some lead time shows you’ve put some thought into the matter. It also shows you respect your landlord’s time and schedule.
Keep in mind that you have a right as a renter to negotiate rent, but being diplomatic and respectful to your landlord will likely yield a better result than being aggressive.
💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.
Highlighting Your Value as a Tenant
When you do meet with your landlord to negotiate the terms of your lease, it can be helpful to make a good case for keeping you on (or bringing you in) as a tenant.
For example, you might want to have a record of all your on-time payments or any history of providing referrals for this landlord.
You may also want to mention your willingness to extend your lease, that you’re courteous to other tenants, keep the property in good shape, and any other points in your favor.
Any and all of these factors could help persuade your landlord to give you a better deal.
Getting Your New Rental Agreement in Writing
Once you’ve successfully negotiated your rent downward or otherwise improved the terms of your lease and have a verbal agreement, it’s a good idea to get the deal in writing.
Having both parties sign off on the new rental agreement provides you with document proof that you have a new deal in place, in the event there is any misunderstanding down the road.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt; rates have recently been climbing into the double-digit range, so try to eliminate that ASAP.
The Takeaway
While rental leases may appear set in stone, they’re more flexible than many tenants think, especially if the rental market is soft in your area (meaning more rentals than renters).
Whether you’re applying to rent a new apartment or signing a new lease on your current rental, you may be able to negotiate a better price if you’re able to show two things: that the rent is higher than similar units in the area, and that you are a model tenant who pays rent on time.
It’s also a good idea to come to the table with some alternatives to a rent reduction (in case your landlord is firm on price), such as a better or free parking space or new appliances.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
If you’re wondering whether you can lower your rent, the answer may be, surprisingly, yes in some situations.
The prospect of bargaining down your rent may sound futile or intimidating. But, thanks to a little research and a well-planned approach, it may be possible to land a better deal.
The odds of successfully lowering your rent will probably depend on a few factors, including how much comparable rentals in your area cost, the value you represent to your landlord, and the general state of the economy and the rental market.
To decrease the awkwardness of haggling and increase your ability to sweeten your deal, you may want to try one or more of these clever and effective negotiating techniques.
The Benefits of Negotiating Rent
The obvious payoff of reducing your rent is more cash left over at the end of the month.
But you may also want to consider the longer term benefits. Let’s say you’ve successfully negotiated your monthly rent down by $100.
It’s nice to have that extra $100, of course. But over the course of a year, that monthly savings adds up to $1,200.
Let’s say you applied that $1,200 yearly savings to paying down credit cards or a student loan debt (rather than paying the minimum).
You might be able to save significantly on interest payments and also boost your credit score (which could help you save money in the future by helping you to get loans and credit cards with better terms).
Recommended: What Credit Score is Needed to Rent an Apartment in 2023?
Or, you could funnel that monthly $100 saved into a high yield savings account and start building a downpayment on a home (if you’d prefer to own vs. rent) or an emergency fund, or working towards another savings goal.
If you were to invest an extra $100 into your 401(k) retirement fund or other retirement savings each month, it could yield a significant income stream decades from now. (If you’re already contributing to these accounts, be aware of the annual limits.)
In addition, by learning how to negotiate, you’re also developing a lifelong skill of standing up for yourself and cutting better deals as an experienced negotiator, which could pay off in other areas of your life.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Timing it Right
As eager as you may want to cut a good deal and do so as quickly as possible, it can be wise to time your approach to maximize your chances of success.
That means negotiating at the right moments, when your landlord may be more amenable to cutting a deal.
Those times might include:
• The end of the month, when other tenants may have vacated the property and your landlord may enjoy the stability of a long-term tenant.
• 90 days or so before your current lease expires. That’s enough time to offer to sign another lease, but only at terms favorable to you. If you’ve been a good tenant, and the market is soft for new tenants, your odds of renegotiating a lower rent may be stronger.
• At the beginning of the calendar year. Typically, winter is a slow time for property rentals, especially in the colder climates when moving is more difficult, and it may be harder for landlords to find new tenants. Stepping into the vacuum with an offer to stay another year–at a lower monthly rental price– might give you some new-found leverage.
💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.
Knowing What the Competition is Charging
To help build your case when approaching your property owner about a rental reduction, it can help to know the lay of the land.
If you can prove that you could live more inexpensively in a nearby rental based on local housing trends, your landlord may be more inclined to grant a discount, rather than lose your business to the competition.
For that reason, it’s a good idea to do a little digging, consider the cost of living, and comb through online listings to find out the rents of comparable units or properties in the area.
Perhaps a similar one-bedroom apartment for rent has an amenity that’s not offered at the apartment you’re currently in or considering. You might point out how these factors make the landlord’s current rental terms somewhat higher than the going market rate.
When you speak to the landlord, it may help to have a printout of comparable apartments that are slightly lower in rent and, if the unit has been unoccupied, have this information on hand as well.
You may also want to check what other apartments in the same complex or rented out elsewhere by the same landlord currently cost. This can help keep you from overpaying for an apartment and may also help you negotiate a lower rent.
Recommended: Reasons to Switch Banks
Offering a Lump Sum
If you can afford it, adding a lump-sum payment (say, three months of rent upfront) may strengthen your bargaining power and boost your odds of reducing your overall rent payment.
That’s because many landlords prefer having rent in hand and not having to worry about late or no rental payment from tenants.
What’s more, offering an upfront, lump-sum payment is one way to show a landlord that you’re serious about being a solid tenant.
A landlord may be more amenable to doing business with a tenant who is willing to go the extra mile.
Considering a Longer Lease
If you particularly like the house or apartment you’re renting, you might consider offering the landlord a longer lease in exchange for lower rent payments.
If, for example, a landlord is offering a 12-month lease to a new tenant, at a fixed monthly rental price, and you agree to extend that lease to 18 or 24 months, you might be in a stronger position to ask for a rental discount.
All things being equal, landlords tend to favor tenants who’ll be around for the long haul, and may be more likely to green-light a lower rent for a longer lease arrangement.
Recommended: Can You Pay Rent with a Credit Card?
Cashing in on a Referral
Landlords typically loathe empty apartments, so if you can help fill a rental unit with a referral or two, it might put you in a better negotiating position to ask for a rental price deduction for helping out.
Rental unit owners usually have to pay for classified ads to lease their open units. In addition, landlords often have to put some sweat equity into showing units, chasing down tenant leads, and vetting potential lease applicants.
By bringing your landlord good, qualified, and stable tenants, you may be able to become a valuable asset for your landlord, and help build a more robust case for a rental deduction in the process.
Not Just Focusing on Price
Yes, the primary goal in a rental negotiation is to bring the price down.
But in case that conversation proves fruitless, you may also want to consider some other perks or benefits you could ask for in lieu or a rent reduction.
Some ideas:
• A prime parking space (especially in urban areas)
• New appliances and/or fixtures in your home or apartment
• New or larger storage space
• “First dibs” on better apartments or homes in your complex, once they free up
• A waiver of fees and charges on things like gym memberships, parking privileges, community rooms, water or trash removal, or other services and amenities
• Extra parking passes for guests
• Allowing you sublet for the summer (if you plan to be away)
• One or two months free
Recommended: Passive Income Ideas to Build Wealth
Giving your Landlord a Heads-Up and Being Polite
Nobody likes to be ambushed on financial matters. That’s why you might have more success if you call your landlord well ahead of when you need to sign the lease and politely let them know that you’d like to discuss the terms of the lease, and are wondering if they would be open to a price reduction.
You might then suggest having a meeting (in person tends to be best, since it can be harder to say “no” to someone when you’re sitting face-to-face) some time in the next week or two.
This gives your landlord some time to consider the situation while also giving you some time to build your case.
In addition, giving your landlord some lead time shows you’ve put some thought into the matter. It also shows you respect your landlord’s time and schedule.
Keep in mind that you have a right as a renter to negotiate rent, but being diplomatic and respectful to your landlord will likely yield a better result than being aggressive.
💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.
Highlighting Your Value as a Tenant
When you do meet with your landlord to negotiate the terms of your lease, it can be helpful to make a good case for keeping you on (or bringing you in) as a tenant.
For example, you might want to have a record of all your on-time payments or any history of providing referrals for this landlord.
You may also want to mention your willingness to extend your lease, that you’re courteous to other tenants, keep the property in good shape, and any other points in your favor.
Any and all of these factors could help persuade your landlord to give you a better deal.
Getting Your New Rental Agreement in Writing
Once you’ve successfully negotiated your rent downward or otherwise improved the terms of your lease and have a verbal agreement, it’s a good idea to get the deal in writing.
Having both parties sign off on the new rental agreement provides you with document proof that you have a new deal in place, in the event there is any misunderstanding down the road.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt; rates have recently been climbing into the double-digit range, so try to eliminate that ASAP.
The Takeaway
While rental leases may appear set in stone, they’re more flexible than many tenants think, especially if the rental market is soft in your area (meaning more rentals than renters).
Whether you’re applying to rent a new apartment or signing a new lease on your current rental, you may be able to negotiate a better price if you’re able to show two things: that the rent is higher than similar units in the area, and that you are a model tenant who pays rent on time.
It’s also a good idea to come to the table with some alternatives to a rent reduction (in case your landlord is firm on price), such as a better or free parking space or new appliances.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
The numbers to know about the world’s biggest cryptocurrency.
This article originally appeared on Finder.com and has been republished here with permission.
The first digital currency and the largest, Bitcoin makes up 39% of the total value of the biggest 250 cryptocurrency coins as of September 2022.
Bitcoin’s founding is the stuff of legend: It was created in 2009 under the alias Satoshi Nakamoto – an unknown entity who believes future currencies shouldn’t be controlled by a central government or agency.
The first Bitcoin hit the market in July 2010 at a cost of under $0.01. It took three years for the currency to reach more than $1,000. Since 2013, Bitcoin has smashed all records. It peaked at $69,045 back in November 2021. The current price of Bitcoin is around $22,259 — or 8.8% lower than what it was just one month ago. All prices are quoted in US dollars.
The price of Bitcoin has changed by -$1,963 over the past day, with yesterday’s price of about $31,818 and today’s price of $29,855. The number of Bitcoin currently in circulation is 19,055,843. While there can only be 21 million Bitcoin created, it’s estimated that this maximum won’t be reached within the next 100 years.
Bitcoin is by far the biggest cryptocurrency in terms of market capitalization — or total value in existence. Currently, $424 billion worth of Bitcoin is out in the wild. Bitcoin surpassed a market cap of $1 trillion for the first time in February 2021. Ethereum, the second most popular currency, has a market cap of $210 billion.
Some $36 billion worth of Bitcoin has been traded over the past 24 hours. The graph below depicts the volume of Bitcoin traded daily. This figure can be somewhat volatile, with $12 billion traded on one of its worst days and $72 billion traded on one of its best.
The price of Bitcoin can also be volatile. Elon Musk announced in February 2021 that Tesla had purchased $1.5 billion worth of Bitcoin and would be accepting the currency as payment, paving the way for larger companies to adopt Bitcoin and sending the price soaring. Musk reversed that announcement in May and declared that Tesla would no longer accept Bitcoin due to its high carbon footprint, leading to an immediate crash of the Bitcoin price to roughly where it was before his first tweet.
While you’ll find excellent guides covering how to invest in Bitcoin, as with any cryptocurrency, it’s wise to invest with caution.