“The second-quarter profit report offers a mixed bag of plusses and minuses that added up to an overall picture of not much change for sellers,” ATTOM chief Rob Barber said in the report. “Prices jumped back upward, which was great news for owners. So did raw profits. Profit margins also remained historically elevated.” However, Barber … [Read more…]
Looking to learn how to make money without a car? It might seem hard to make money without a car, but there are actually many ways to do it. You don’t need a vehicle to find opportunities that can earn you extra cash or even a full-time income. Whether you want to work from home…
Looking to learn how to make money without a car?
It might seem hard to make money without a car, but there are actually many ways to do it. You don’t need a vehicle to find opportunities that can earn you extra cash or even a full-time income.
Whether you want to work from home or find gigs in your neighborhood, there are plenty of options available to you.
Best Ways To Make Money Without a Car
Below are the best ways to make money without a car.
Here’s a quick summary of my favorites:
Best way to make money without a car by freelancing – Proofreading
Best way to make money without a car to work by yourself – Blogging
Best way to make money without a car for passive income – Selling printables
Best way to make money without a car for people who like numbers – Bookkeeping
1. Blogging
Blogging is a great way to make money without needing a car. You can write about topics you love and share your knowledge with others. All you need is a computer and an internet connection.
I started Making Sense of Cents in 2011, and I’ve made over $5,000,000 with my blog. I began my blog just to share my own money journey. At first, I didn’t even know people could make money from blogging or how to create a successful blog! I didn’t plan to make money with Making Sense of Cents, but after six months, I started earning from it.
And, it all started from home, where I didn’t need a car (and I still don’t need a car to do this job).
Starting a blog takes time and effort, but it can be very rewarding. Plus, you can do it all from the comfort of your home.
Learn more in my How To Start A Blog FREE Course. In this free course, I show you how to create a blog, from the technical side to earning your first income and getting pageviews.
2. Proofreader
Being a proofreader is a great way to make money without a car. You can do this from the comfort of your home. Many companies and individuals need proofreaders for their articles, books, and websites.
To start, you need a strong grasp of the English language (or whatever language you are proofreading in). Good attention to detail is also important. You don’t need a degree to become a proofreader, but it helps to know common style guides.
Proofreaders can make good money, and according to Salary.com, the average proofreader salary is $58,284 a year.
Proofreading is flexible. You can choose your own hours and work as much or as little as you want. This makes it a great side hustle or even a full-time job.
Learn more at 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
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This free training teaches you how to start a proofreading side hustle (and how to earn $1,000+ per month!), even if you are brand new and don’t have any previous proofreading experience.
3. Sell printables on Etsy
Selling printables on Etsy is a great way to make money without needing a car. Printables are digital files like planners, calendars, art prints, and more.
Making printables on Etsy is a great idea because you only need to create one digital file per product. You can then sell that file as many times as you want.
Learn more at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
4. Dog walking
Dog walking is a fun way to make money without a car. You get to spend time with dogs and get some exercise too. Many people need help walking their dogs, especially if they have busy schedules.
There is a good chance that some of your neighbors within walking distance may need some help with their pets, and this is where you come in!
You can start by letting your neighbors know you are available. Put up flyers or post about your services in local online groups. Another great way to find clients is through dog walking apps like Rover and Wag that connect dog walkers with pet owners.
If you use an app like Rover, you can also offer pet sitting services. This can increase your earnings by taking care of pets overnight.
Dog walking usually pays between $15 and $25 per walk. If you walk several dogs in a day, it can add up quickly. For overnight stays, you might earn $25 to $70+ per day.
5. Freelance writing
Freelance writing is a great way to make money without a car. You can work from home or anywhere with an internet connection. All you need is a computer and some writing skills.
You can write blog posts, articles, or even social media content. Many companies need writers to create content for their websites and marketing materials.
Freelance writing lets you choose your own hours. You can work as much or as little as you want. This makes it a great option if you have other commitments like school or another job.
There are many websites where you can find freelance writing jobs. Examples include Upwork, Freelancer, and Fiverr. Some companies also hire writers directly through job postings on their websites.
I have been a freelance writer for years, and I think it’s a great way to earn income from home, without needing a car.
6. Virtual assistant
You can make good money by becoming a virtual assistant (VA). As a VA, you help clients with various tasks from your home.
Companies and busy professionals need help with things like managing emails and scheduling appointments. You can do this using just a computer and the internet.
Some VAs specialize in things like social media management. Others focus on tasks like data entry or customer service. You can choose what you want to do based on your strengths.
Working as a VA lets you set your own hours. You don’t need to commute anywhere since everything is done online, so this makes it perfect if you don’t have a car.
7. Online tutoring
Online tutoring is a great way to make money without needing a car. You can teach from the comfort of your own home and set your own schedule. There are many websites where you can sign up and start tutoring students in different subjects.
All you need is a computer and an internet connection. Tutor Me Education, for example, connects you with students looking for help in over 200 subjects. You create a profile, and students reach out to you.
If you enjoy teaching, this can be a fun and rewarding way to earn money. It’s also flexible, so you can work as much or as little as you want. This makes it easy to fit tutoring into your busy life.
Some tutoring platforms might require you to have some qualifications, but many are open to anyone with knowledge in a particular area. This means almost anyone can become a tutor and start making money.
8. Selling print-on-demand products
Selling print-on-demand products is a great way to make money without needing a car. You can create your own designs for T-shirts, mugs, and more. Once a customer orders, the product is made and shipped directly to them.
You don’t need to handle any physical inventory. This means you can work from home and all you need is an internet connection and some creative ideas.
Platforms like Etsy, Amazon, and Shopify make it easier to sell your print-on-demand products. They connect you to millions of potential buyers. You can also use services like Printify and Printful to help produce and ship your items.
Starting your own print-on-demand business involves little upfront cost. You only pay for the production of the item when a sale is made, so this reduces your financial risk significantly.
9. Graphic design
If you love art and design, graphic design can be a great way to make money. You don’t need a car for this job because you can do all your work from a computer at home.
Many businesses need logos, social media graphics, and other visual content.
You can find clients on platforms like Fiverr and Upwork, and you can start with small projects to build your portfolio. Once you have a few happy clients, you can charge more for your work.
10. Data entry
Data entry is a simple way to make money from home. You don’t need a car, and you can work in your pajamas (amazing, right?!).
Data entry workers type information into computer systems. Companies need people to enter data accurately and quickly, and this could be anything from names and addresses to inventory numbers.
These jobs can pay anywhere from $12 to $25+ per hour. The pay depends on the company and the complexity of the task.
Data entry is a flexible job. You can often set your own hours and work when it’s convenient for you.
While it may not be the most exciting job, it’s straightforward and doesn’t require a lot of training. This makes it a good option if you need to earn some extra cash.
11. Transcription services
Transcription work is a great way to earn money from home. You listen to audio files and type what you hear. Many companies hire beginners, so experience isn’t always necessary.
The pay varies, usually from $5 to $25 per audio hour.
Working as a transcriptionist can be flexible. You pick the hours you want to work, so this makes it easier to fit into your schedule.
Make sure you meet the typing speed requirements. Most companies look for accuracy and speed. Start practicing if you need to improve in these areas.
Learn more at 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly.
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
12. Dropshipping
Dropshipping is a great way to make money without a car. You don’t need to buy any stock up front. When a customer buys from your online store, you order the product from a supplier who ships it directly to them.
To start, find a popular product that people want. Use free tools like Google Trends to see what’s in demand. You could sell anything from phone accessories to pet supplies.
Dropshipping allows you to run a business from anywhere. All you need is a computer and internet. It’s perfect if you don’t have a car.
13. Affiliate marketing
Affiliate marketing is a great way to make money without a car. You can do it right from home or anywhere with an internet connection.
In affiliate marketing, you promote products or services for companies. When someone buys through your referral link, you earn a commission.
It does take time and effort to be successful. You’ll need to create content, like blog posts or social media posts, to share your affiliate links.
You could promote anything from clothes to electronics to digital products like ebooks or courses. Pick something you like and know about to make it easier.
For me, I have been doing affiliate marketing for years, and I think it’s a great way to make money at home without a car.
Learn more at Affiliate Marketing Tips For Bloggers – Free eBook.
14. Get roommates
Rent can be really expensive. If you want to save money or even make some extra, getting roommates can help.
When you share your place with others, you split the rent and utility bills. This makes living costs lower for everyone.
Finding roommates isn’t hard. You can ask friends or use sites like Facebook or Craigslist. Of course, you’ll want to make sure to choose people you get along with well.
15. Answer surveys
Answering surveys is an easy way to make some extra money without needing a car. Many market research companies want to know what you think about their products or services. They will pay you for your opinions in PayPal cash or free gift cards.
Each survey can take anywhere from a few minutes to half an hour. While you won’t become rich, it’s a simple and flexible way to make a small but steady income on the side. Even earning a few dollars here and there can add up.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
Pinecone Research
I have been answering surveys for years, and I have always liked how I can answer them at home without having to go anywhere. That makes it very easy!
16. Make money on YouTube
Starting a YouTube channel is a popular way to make money online, especially if you don’t have a car. You can record videos with your phone or camera, and you don’t need much else to get started.
You can make a YouTube channel about many different topics like money, home, travel, toys, pets, and more. There’s a YouTube channel for almost everything, and there’s still room for more!
In your YouTube videos, you can add links to products you recommend, earn money from ads that play during your videos, get paid by brands to show their products, and even sell your own items.
Recommended reading: How Much Do YouTubers Make?
17. Mow lawns in your neighborhood
Mowing lawns in your neighborhood can be a great way to make extra money without needing a car. Many people need help keeping their lawns neat, such as older adults or busy families.
To get started, you really only need basic lawn care equipment, like a mower and trimmer.
Next, spread the word about your lawn care services. Talk to your neighbors, put up flyers, or post on community boards online.
18. Deliver food on a bike
Not all food deliveries are by car – plenty can be done by bike, depending on where you live! Thanks to today’s gig economy, you have plenty of options depending on where you live.
If you live in a city, delivering food on a bike is a great way to make money part-time as a side gig or even full-time. You can work for companies like Uber Eats, Instacart (this is for grocery shopping delivery), or Postmates. These apps allow you to deliver by bike in many cities.
Biking means you don’t spend money on gas or car maintenance. Plus, it’s good exercise. You can even do food delivery by e-bike or scooter if you prefer.
Note: You do still have to do a background check, even though you won’t be driving and won’t have to use a driver’s license.
19. Babysit
Babysitting is a great way to make money if you don’t have a car. You can choose when you’re available, making it easy to fit around your schedule.
Lots of families need someone to watch their kids while they’re at work or out for the evening, such as your neighbors.
You can offer your help to neighbors, friends, and family members.
You might need to get CPR certified, but it’s worth it. Parents will feel better knowing their kids are in safe hands (plus, you’ll feel better too about watching someone else and feel more prepared).
20. Play game apps
You can make money by playing game apps on your phone. There are lots of apps out there that pay you to play games. Some popular choices include apps like Solitaire Cash and other game apps where you get paid for playing and watching ads.
These game apps can be fun and a good way to earn a little extra cash. You usually earn small amounts of money or rewards that you can cash out later. Still, it’s important to know that it’s not a way to get rich quickly.
Here’s a quick list of the top game apps that pay real cash:
KashKick
Swagbucks
InboxDollars
Freecash
21. Virtual bookkeeper
You can make money from home as a virtual bookkeeper. This job involves keeping track of finances for businesses.
All you need is a computer and internet access. You can work for one company or offer your services to multiple clients.
Before you skip this because you think you’re not qualified, you should know that you don’t need to be an accountant, have any previous experience, or even have a bachelor’s degree.
Virtual bookkeepers can earn a good hourly rate and often have the freedom to set their schedules. This can be a great option if you need flexibility in your work life.
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This free training will show you how to start a profitable bookkeeping side-hustle in the next 30 days—even if you have no prior experience!
22. Voice over acting
Voice-over acting is a fun way to make money from home. You use your voice to bring characters to life or narrate commercials and videos. It’s a great job if you’re good at reading aloud and can deliver lines clearly.
You don’t need a fancy setup to start. A decent microphone and free software can get you going. Many websites connect you with clients looking for voice talent.
You might work on video games, cartoons, audiobooks, or even ads. Each job can pay differently, so you can find ones that fit your schedule and skills.
Voice-over acting can be both fun and profitable. It’s a flexible way to make money without needing a car. Plus, you can do it all from the comfort of your home.
Learn more at How To Become A Voice Over Actor And Work From Anywhere.
23. Write book reviews
You can make extra money by writing book reviews from home. This is perfect if you love reading.
Authors and publishers appreciate your honest reviews because they help other readers decide what to read. These reviews are fun for readers and helpful for everyone.
Here are some websites where you can earn money by writing book reviews:
OnlineBookClub.org – They give you free books at first. After your first review, you can earn $5 to $60 per review.
Kirkus Media – They need reviewers for English and Spanish books. Reviews are about 350 words and due two weeks after you get the book.
The US Review of Books – They hire freelance writers for 250- to 300-word reviews that provide insights into the book. You need to submit a resume, writing samples, and references.
Reedsy Discovery – You can review books before they are published and earn tips from readers, usually $1 to $5 per review. This helps new books become more popular.
Learn more at 16 Best Ways To Get Paid To Read Books.
Frequently Asked Questions
You don’t need a car to make money. There are many ways to earn, whether from home, on foot, or on a bike. Here are some common questions and answers about how to make money without a car.
How can I make money if I don’t have a car?
You can make money by blogging, proofreading documents, or selling printables on Etsy. You can also offer services like dog walking. If you enjoy writing, freelance writing could be a good fit too. Many of these can be done from the comfort of your home or in your neighborhood within walking distance.
What kind of jobs can you do from home with no car or computer?
Without a computer, you can still find jobs like phone-based customer service or tutoring over the phone or by having your clients come to your home. Selling craft items or handmade goods can also be done from home. Some people even make money as virtual assistants using only their smartphones.
How can a college student make extra cash without having a vehicle?
Many college students don’t bring a car to college, and if that’s you, you may be wondering how you can make money. College students can babysit, tutor younger students, or work as a resident advisor at their college. Selling old textbooks and clothes can also bring in extra cash.
What are some delivery jobs with no car required?
For delivery jobs, you can use a bike or scooter. Platforms like DoorDash allow deliveries by bike in certain areas. Restaurants and local stores sometimes hire walkers or bikers to deliver goods too, but this is more common in big cities (like New York City or Chicago).
What to do with no money and no car?
If you have no money and no car, I recommend starting by looking for gigs that don’t require any investment, like babysitting or dog walking. Answering paid online surveys or signing up for cash back apps can also help you earn some spare cash. You can also offer to run errands or clean houses for neighbors for some quick cash, or even host a garage sale.
What to do if you need a job but have no transportation?
If you need a job but you have no transportation, then I recommend finding a work-from-home job like transcribing, virtual assisting, or data entry. If you want an in-person job but don’t have transportation, then you may need to look into your public transportation options, car sharing in your area, finding a shuttle service, using a rideshare app (like Uber or Lyft), or carpooling.
How To Make Money Without a Car – Summary
I hope you enjoyed this article on how to make money without a car.
There are many ways to make money without a car such as with online jobs like proofreading, blogging, selling printables, and bookkeeping. And, there are also ways to make money in person without a car, such as dog walking, tutoring, delivering food by bike, and mowing lawns.
What do you think is the best way to make money without a car?
Orlando, Florida, is a dynamic and exciting city with much to offer its residents. From world-famous theme parks and a thriving job market to a diverse culinary scene and ample outdoor activities, there’s something for everyone. However, it’s important to consider factors like the cost of living, traffic, and the need for a car when deciding if Orlando is the right place for you. Not sure if O town is for you? Read on to find out what to expect if you’re considering a move to the Orlando area in 2024.
You know it from: Sisters, Sharknado 3, The Florida Project
Average 1 bedroom rent: $1,779 | Orlando apartments for rent, Orlando houses for rent
Average home price: $409,000 | Orlando homes for sale
Average cost of full-service moving services: $112/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Hospitality and Tourism, Healthcare, Aviation and Aerospace, Information Technology
Move here for: Water sports/recreation, the food scene, the weather
Be sure to bring: A bathing suit and sunglasses
1. Theme parks galore
Orlando is home to some of the most famous theme parks in the world, including Walt Disney World, Universal Studios, and SeaWorld. These parks attract millions of tourists each year, which means residents often have easy access to world-class entertainment and attractions. However, it also means that certain areas can be crowded, especially during peak tourist seasons.
Moving Tip: Locals often take advantage of annual passes and visit during off-peak times to avoid the crowds.
2. Must love thunderstorms, heat, and humidity
Orlando’s climate is characterized by hot, humid summers and mild winters. Summer temperatures often soar into the 90s with high humidity, making air conditioning a necessity. Thunderstorms are frequent in the afternoons during the summer months. On the flip side, winters are pleasantly mild, with temperatures rarely dipping below 50°F. This makes Orlando an ideal place for those who enjoy warm weather year-round.
3. A serious culinary scene
Orlando offers diners an incredible culinary scene, featuring everything from food trucks to fine dining. The city is known for its variety of international cuisines, reflecting its diverse population. Areas like Winter Park and Thornton Park are popular dining destinations, offering everything from trendy cafes to high-end restaurants. The annual Epcot International Food & Wine Festival is a must-visit for food lovers.
4. Growing job market
Orlando’s job market is booming, particularly in the hospitality, healthcare, and technology sectors. Major employers include Walt Disney World, AdventHealth, and Lockheed Martin. The city has also become a hub for tech startups and innovation, with the University of Central Florida fostering a strong talent pool. This growth has led to a competitive job market, with numerous opportunities for career advancement.
5. Cost of living is average but housing can get pricey
The cost of living in Orlando is right around the national average, with housing about 5% higher than the average. Popular neighborhoods like Lake Nona and Baldwin Park can be quite pricey. However, there are more affordable options in areas like College Park and MetroWest. It’s important to budget accordingly and consider commuting options if you choose to live in a more affordable suburb.
6. You probably need a car
Orlando’s public transportation system is not as extensive as in other major cities. The primary mode of public transport is the Lynx bus system, which can be time-consuming and inconvenient for daily commutes. The SunRail commuter train offers limited service but is expanding. Most residents find that owning a car is essential for getting around efficiently.
7. Water sports are a big deal
Orlando offers plenty of opportunities for outdoor activities and sports. Lake Eola Park in downtown Orlando is a popular spot for walking, jogging, and paddle boating. The city’s numerous lakes and parks provide ample space for kayaking, fishing, and picnicking. For those who enjoy golf, Orlando boasts several world-class golf courses.
8. One of the largest universities in the nation is in Orlando
Orlando has a robust education system, with numerous public and private schools rated highly by parents and educational authorities. The University of Central Florida is one of the largest universities in the country and offers a wide range of programs. Valencia College is another well-regarded institution, providing affordable education and transfer pathways to universities.
9. Summer gridlock is a thing
Traffic congestion is a common complaint among Orlando residents, especially during rush hours and tourist seasons. The I-4 corridor is notorious for its traffic jams, and navigating around theme park areas can be frustrating. However, the city is continually working on infrastructure improvements to alleviate some of these issues.
10. Your pets will love it here
Orlando is very pet-friendly, with numerous parks, trails, and even restaurants that welcome pets. Areas like Lake Baldwin Park offer off-leash dog parks where pets can roam freely. Many apartment complexes and rental homes are also accommodating to pet owners, making it easy to find a suitable place for you and your furry friend.
11. The arts and culture scene is top-notch
The arts and culture scene in Orlando is thriving, with numerous theaters, galleries, and music venues. The Dr. Phillips Center for the Performing Arts hosts a variety of performances, from Broadway shows to concerts. The Orlando Museum of Art and the CityArts Factory are great places to explore local and international art. Festivals and events, such as the Orlando Fringe Festival, add to the city’s cultural richness.
Moving Tip: The Orlando Science Center, Gatorland, and the Crayola Experience offer fun and educational experiences for children.
12. So many (nearby) beaches, so little time
Orlando is centrally located, making it easy to access both the Atlantic and Gulf coasts. Popular beach destinations like Cocoa Beach and Clearwater Beach are about an hour’s drive away. This proximity allows residents to enjoy beach outings without the need for long travel times.
13. Quality healthcare is easy to access
Orlando is home to some top-notch healthcare facilities, including AdventHealth Orlando and Orlando Health. These institutions offer a wide range of medical services and are known for their quality care. The presence of these healthcare giants ensures that residents have access to excellent medical attention when needed.
14. Sports enthusiasts rejoice
Orlando is a great city for sports fans, with professional teams like Orlando Magic (NBA) and Orlando City SC (MLS). The city also hosts various sporting events, including the annual Citrus Bowl and PGA Tour events. Kia Center and Inter&Co Stadium are popular venues for catching live sports action.
Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from The Orlando Real.
I got active on Twitter over the past year and change and to my surprise (not sure why it’s surprising really), encountered lots of housing bears on the platform.
Many were/still are convinced that the next housing crash is right around the corner.
The reasons vary, whether it’s an Airbnbust, a high share of investor purchases, high mortgage rates, a lack of affordability, low home sales volume, rising inventory, etc. etc.
And the reasons seem to change as each year goes on, all without a housing crash…
So, now that we’re halfway through 2024, the obvious next question is will the housing market crash in 2025? Next year’s got to be the year, right?
But First, What Is a Housing Crash?
The phrase “housing crash” is a subjective one, with no real clear definition agreed to by all.
For some, it’s 2008 all over again. Cascading home price declines nationwide, millions of mortgage defaults, short sales, foreclosures, and so on.
For others, it might just be a sizable decline in home prices. But how much? And where?
Are we talking about national home prices or regional prices? A certain metro, state, or the nation at large?
Personally, I don’t think it’s a crash simply because home prices go down. Though it is a pretty uncommon occurrence to see nominal (non-inflation adjusted) prices fall.
Over the past few years, we’ve already experienced so-called home price corrections, where prices fell by 10%.
In 2022, we were apparently in a housing correction, defined as a drop in price of 10% or more, but not more than 20%.
Ostensibly, this means a drop of 20%+ is something much worse, perhaps a true housing crash.
But you have to look at the associated damage. If home prices fall 20% and there aren’t many distressed sales, is it still a crash?
Some might argue that there’s simply no other outcome if prices fall that much. And maybe they’d be right. The point is a crash needs to have major consequences.
If Homeowner Joe sells his home for $500,000 instead of $600,000, it’s not necessarily a disaster if he bought it for $300,000 a few years earlier.
He’s not happy about it, obviously, but it’s not a problem if he can still sell via traditional channels and even bank a tidy profit.
Of course, this means others who had to sell wouldn’t be so lucky, since their purchase price would likely be higher.
Still, this hinges on a major decline in prices, which historically is uncommon outside of the Global Financial Crisis (GFC).
Stop Comparing Now to 2008
One thing I see a lot is housing bears comparing today to 2008. It seems to be the go-to move in the doomer playbook.
I get it, it’s the most recent example and thus feels the most relevant. But if you weren’t there, and didn’t live it, you simply can’t understand it.
And if you weren’t, it’s hard to distinguish that time from now. But if you were, it’s clear as day.
There are myriad differences, even though they’re quick to mock those who say “this time is different.”
I could go on all day about it, but it’s best to focus on some main points.
At the moment, housing affordability is poor thanks to a combination of high home prices and equally high mortgage rates, as seen in the chart above from ICE.
Despite a big rise in prices over the past decade, the high mortgage rates have done little to slow down the party.
Yes, the rate of home price appreciation has slowed, but given the fact that mortgage rates rose from sub-3% to 8% in less than two years, you’d expect a lot worse.
It’s just that there’s really no correlation between home prices and mortgage rates. They can go up together, down together, or move in opposite directions.
Now, proponents of a housing crash often point to buying conditions right now. It’s a horrible time to buy a house from a payment-to-income perspective. I don’t necessarily disagree (it’s very expensive).
But that completely ignores the existing homeowner pool. And by doing so, it’s a totally different thesis.
You can say it’s a bad time to buy but that the average homeowner is in great shape. These statements can coexist, even though everyone wants you to take one side or the other.
Look at the Entire Homeowner Universe
To put this perspective, consider the many millions of existing homeowners coupled with prospective home buyers.
Your average homeowner today has a 30-year fixed-rate mortgage set somewhere between 2-4%.
In addition, most purchased their properties prior to 2022, when home prices were a lot lower.
So your typical homeowner has a rock-bottom interest rate and a relatively small loan amount, collectively a very attractive monthly payment.
To make matters even better for the foundation of the housing market, which is existing homeowners, most have very low loan-to-value ratios (LTVs).
They’ve also got boring old 30-year fixed-rate loans, not option ARMs or some other crazy loan program that wasn’t sustainable, as we found out quickly in 2008.
These homeowners also haven’t tapped their equity nearly as much as homeowners did in the early 2000s, despite home equity being at record high levels (see above).
This is partially because banks and mortgage lenders are a lot stricter today. And partially because of mortgage rate lock-in. They don’t want to give up their low mortgage rate.
In other words, the low mortgage rate not only makes their payment cheap, it also deters taking on more debt! And more of each payment pays down principal. So these loans (and their borrowers) become less and less risky.
Some have turned to home equity loans and HELOCs, but again, these loans are much more restrictive, typically maxing out at 80% combined loan-to-value (CLTV).
In 2006, your typical homeowner did a cash-out refinance to 100% CLTV (no equity left!) while new home buyers were coming in with zero down payment as home prices hit record highs.
Take a moment to think about that. If that’s not bad enough, consider the mortgage underwriting at that time. Stated income, no doc, you name it.
So you had virtually all homeowners fully levered along with a complete lack of sound underwriting.
Slumping Home Sales in the Face of Poor Affordability Is Actually Healthy
That brings us to home sales, which have slumped since the high mortgage rates took hold. This is normal because reduced affordability leads to fewer transactions.
The worry is when this happens supply could outpace demand, resulting in home price declines.
Instead, we’ve seen low demand meet low supply in most metros, resulting in rising home prices, albeit at a slower clip.
While housing bears might argue that falling volume signals a crash, it’s really just evidence that it’s hard to afford a home today.
And the same shenanigans seen in the early 2000s to stretch into a home you can’t afford don’t fly anymore. You actually need to be properly qualified for a mortgage in 2024!
If lenders had the same risk tolerance they had back in 2006, the home sales would keep flowing in spite of 7-8% mortgage rates. And prices would move ever higher.
That spike in home sales in the early 2000s, seen in the chart above from Trading Economics, shouldn’t have happened. Fortunately, it’s not happening now.
At the same time, existing homeowners would be pulling cash out in droves, adding even more risk to an already risky housing market.
Instead, sales have slowed and prices have moderated in many markets. Meanwhile, existing owners are sitting tight and paying down their boring 30-year fixed mortgages.
And with any luck, we’ll see more balance between buyers and sellers in the housing market in 2025 and beyond.
More for-sale inventory at prices people can afford, without a crash due to toxic financing like what we saw in the prior cycle.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Despite the overall slowdown, the data revealed a growing trend of first-time homebuyers entering the market for newly built homes. “The average loan size edged lower for the second consecutive month, and the share of FHA applications increased to 28.7%, as first-time buyers continue to account for a growing share of demand for newly built … [Read more…]
Atlanta, often referred to as “The ATL” or “Hotlanta,” is a vibrant city with a rich history and a dynamic cultural scene. With its diverse neighborhoods, thriving job market, and Southern charm, it’s no wonder that many people dream of calling Atlanta their home. However, life in this bustling metropolis comes with its own set of challenges. So whether you’re searching for a trendy apartment in Midtown or a cozy apartment in Buckhead, you’ve come to the right place.
In this ApartmentGuide article, we’ll explore the various pros and cons of living in Atlanta, helping you decide if this Southern gem is the right place for you.
Fast facts about living in Atlanta
Population: Approximately 500,000 residents
Average rent: $1,764 per month for a one-bedroom apartment
Median home sale price: $434,730
Public transit: Metropolitan Atlanta Rapid Transit Authority (MARTA) provides extensive bus and rail services
Public parks: Over 300 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 50 million visitors each year
Restaurants: Over 3,000, offering a wide variety of cuisines from around the world
1. Pro: Cultural and entertainment hub
Atlanta is a cultural mecca, offering unparalleled access to theaters, museums, and music venues. The Fox Theatre, High Museum of Art, and Atlanta Symphony Orchestra are just a few examples of the endless entertainment options. The city also hosts numerous cultural festivals and events, such as the Atlanta Film Festival, Music Midtown, and the National Black Arts Festival. Additionally, iconic landmarks like the Georgia Aquarium, World of Coca-Cola, and the Martin Luther King Jr. National Historical Park add to the rich tapestry of experiences available.
2. Con: Traffic congestion
Atlanta is notorious for its traffic congestion. The city’s sprawling layout and high number of vehicles on the road make commuting time-consuming and stressful. Residents often face long commute times, especially during peak hours, which can impact daily life and work schedules. While the city has made efforts to improve infrastructure and public transportation, many residents still find that driving is necessary for daily commutes.
3. Pro: Thriving job market
Atlanta has a robust and diverse job market, particularly in the technology, healthcare, and film industries. The city is home to numerous major companies, providing ample job opportunities and contributing to the city’s economic stability.
Top employers in Atlanta
The Coca-Cola Company
Delta Air Lines
Emory University and Emory Healthcare
Home Depot
UPS
4. Con: Limited public transportation
Despite efforts to improve, Atlanta’s public transportation system is still limited compared to other major cities. With a transit score of 44, a walk score of 48, and a bike score of 42, getting around without a car can be challenging. MARTA operates buses and rail services, but the coverage and frequency may not be convenient for all residents. The city’s spread-out nature and limited public transit options can make commuting difficult, leading many residents to rely on personal vehicles for daily transportation.
5. Pro: Relatively affordable cost of living
The cost of living in Atlanta offers a relatively affordable for a larger city. Overall, the cost of living in Atlanta is 2% less than the national average. Housing costs are particularly reasonable, with the median sale price for a home in Atlanta around $434,730 and the average rent for a one-bedroom apartment in Atlanta about $1,764 per month, which is 2% less than the national average. Additionally, utilities are 15% less expensive, transportation costs are 1% below average, and while groceries are 1% more expensive and healthcare costs are 8% more, these are manageable expenses.
6. Con: Weather extremes
Atlanta experiences a range of weather conditions, from hot and humid summers to mild winters. The city’s weather can be unpredictable, with sudden changes in temperature and frequent rain during the spring and summer. While some enjoy the variety, others may find the weather extremes challenging to handle. Summer heat waves can be uncomfortable, leading to increased energy costs for cooling, while occasional ice storms in winter can disrupt daily life.
7. Pro: Diverse neighborhoods
Atlanta is a melting pot of cultures, with each neighborhood in Atlanta offering unique character and charm. From the historic streets of Inman Park to the trendy vibes of East Atlanta Village, there’s a place for everyone. Explore the vibrant art scene in Castleberry Hill, enjoy the bustling markets in Ponce City Market, or relax in the upscale shops of Buckhead. This diversity also means a variety of cuisines, festivals, and cultural experiences are available year-round, ensuring there’s always something new to discover.
8. Con: High humidity
Atlanta’s climate, while generally pleasant, comes with high humidity levels, especially during the summer months. The humidity can be uncomfortable and make outdoor activities less enjoyable. High humidity can also affect indoor comfort and increase the reliance on air conditioning, leading to higher utility costs. Residents need to be prepared for the humid conditions and take measures to stay cool and hydrated.
9. Pro: Access to education and healthcare
Atlanta is home to several esteemed educational institutions, including Georgia Institute of Technology and Emory University. Additionally, the city has top-notch healthcare facilities, such as Emory Healthcare and Piedmont Healthcare. This access to quality education and healthcare is a significant advantage for residents. The abundance of specialized programs and advanced research centers attracts students and professionals from all over the globe.
10. Pro: Green spaces
Despite its urban nature, Atlanta offers numerous green spaces where residents can escape the concrete jungle. The city’s extensive park system provides residents with ample opportunities for relaxation, recreation, and outdoor activities. These green spaces serve as a much-needed respite from the city’s fast pace, offering walking trails, picnic areas, sports facilities, and beautiful natural scenery.
Popular parks in Atlanta
Piedmont Park
Centennial Olympic Park
Atlanta BeltLine
Grant Park
Chastain Park
11. Con: Competitive lifestyle
The competitive nature of Atlanta can be a double-edged sword. While it drives innovation and excellence, it can also lead to high-stress levels. The fast-paced lifestyle and constant pressure to succeed can be exhausting for some individuals. This environment often demands long working hours and a relentless pursuit of career advancement. Balancing work and personal life can be challenging, and the high cost of living adds to the pressure to excel.
12. Pro: Iconic landmarks
Living in Atlanta means having iconic landmarks that contribute to the city’s unique character and charm right at your doorstep. These sites are great for sightseeing, offering educational and recreational opportunities for residents and visitors alike. From historic sites to modern attractions, these landmarks reflect the rich history and vibrant culture of Atlanta, making it a fascinating place to live.
Iconic landmarks in Atlanta
Georgia Aquarium
World of Coca-Cola
Martin Luther King Jr. National Historical Park
CNN Center
The Fox Theatre
13. Pro: Rich cultural diversity
Known for its cultural mosaic, Atlanta is home to people from around the world, speaking numerous different languages. In neighborhoods like Buford Highway, residents can experience a wide array of cuisines and traditions from different cultures. This blend of backgrounds creates a unique environment where diverse perspectives and traditions thrive. Cultural institutions, festivals, and parades throughout the city highlight this diversity, from the Atlanta Greek Festival to the Atlanta Jazz Festival and the annual Dragon Con.
Solar net energy metering in California (NEM 3.0) is a billing mechanism through which utility companies compensate customers (via credits on their electric bill) for electricity their residential solar systems send to the grid. NEM can make solar more affordable, but some state NEM policies make it less beneficial.
California is one of those states; however, solar panels in California can still be worth it for homeowners. Understanding how net metering works in California can help you get the most out of your solar system.
How net metering has evolved in California
NEM in California has gone through three major versions:
NEM 1.0
California’s first NEM program was implemented in 1996. Under NEM 1.0, solar customers could sell their extra electricity back to the utility at the retail rate (the price at which the utility charged consumers for electricity), they could choose any electric rate plan the utility offered and they didn’t have to pay extra fees for connecting to the grid.
NEM 2.0
NEM 2.0 was introduced in 2016–2017. This version of NEM still compensated customers for excess power at the retail rate, though customers couldn’t offset 100% of the charges (some were “nonbypassable”). It also required solar customers to be on a time-of-use (TOU) rate plan in which the price of power depends on when it’s used, and it introduced an interconnection fee
.
NEM 3.0
Officially called the Net Billing Tariff (NBT), NEM 3.0 is the current version of NEM, adopted by the California Public Utilities Commission (CPUC) in December 2022 and implemented in April 2023. The NBT cut the rate utilities pay to buy excess solar power by about 75%
.
5 things to understand about net metering in California
These provisions affect many solar installations and related electric bills in California.
Low payment for your excess electricity. This is the biggest factor affecting NBT solar customers. Under the NBT, you are paid for the electricity you send back to the grid according to a complicated “avoided cost” formula that takes into account the value of that electricity to the grid at the time you send it to the grid. Your system will likely send excess electricity to the grid during the middle of the day, which is when lots of other people are also sending excess solar power to the grid. That means the utility will buy your electricity for a much lower rate than it would have under NEM 2.0.
Time-of-use (TOU) rate plan. Under TOU rates, what you pay for electricity depends on when you use it. The NBT requires solar customers to pay specific TOU rates that, compared with other TOU rates, are lower at off-peak use times and higher at peak times. That will further affect your electricity costs and solar savings.
Nonbypassable charges. As the name suggests, solar customers pay these charges even if they generate enough extra power to offset them. Under the NBT, nonbypassable charges are based on all electricity you pull from the grid.
Monthly billing, annual true-up. The utility keeps a running tally of whether the value of the power you’ve used from the grid is more than the value of the power you’ve sent to the grid. If you took more than you gave, you’ll get a bill from the utility; if you gave more than you took, the utility gives you a credit on your bill. This reconciliation exercise used to happen once a year; now it’s once a month. “Under NEM 2.0, residential customers of investor-owned utilities do not pay more than the roughly $10 minimum bill if they owe more than that at the end of a month. They pay the cumulative amount owed at their annual true-up date,” said Brad Heavner, policy director at the California Solar and Storage Association (CALSSA), in an email. “Under NBT, if customers owe an amount at the end of a month, they pay that full amount. This avoids surprise annual true-up bills.”
Solar system size limit. Under the NBT, customers can install enough solar to offset up to 150% of their electricity use. To do this, they must sign a statement acknowledging that they are getting more solar than they need to serve their rate of consumption, Heavner said. However, utilities have been inconsistent in implementing this, said Barry Cinnamon, CEO of California solar company Cinnamon Energy Systems, in an email. Be aware of size limits if you already have solar and want to add more, which might bump you from NEM 1.0 or NEM 2.0 to the NBT. “There are ways for customers to increase the size of their existing NEM 1.0 or NEM 2.0 system without triggering a change to the NBT,” Cinnamon said. “Contact your local installer for more information on these solar expansion possibilities.”
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How to make California net metering (NEM 3.0) work for you
Even with the drawbacks of the NBT, solar may still make sense for your California home. Here’s how you can make NEM 3.0 work for you.
Add a battery
A solar battery can make a big difference in the cost-effectiveness of your solar under the NBT. Instead of sending excess electricity back to the grid at a low rate, you can store it in your battery and use it later. You can also avoid high TOU rates by charging the battery when you’re generating the most electricity, then using that electricity during expensive peak TOU hours.
For these reasons, many new solar customers in California are turning to batteries. According to the Energy Information Administration, the number of California solar customers installing batteries with their solar panels jumped from just over 20% in October 2023 to well over 50% in April 2024
. A May 2024 study by the Lawrence Berkeley National Laboratory found that the percentage of California solar installations that were paired with energy storage rose from 10% to 60% .
Batteries are expensive, however. In California, the average cost is $7,706 after the 30% federal tax credit, according to EnergySage
.
Shift your energy use
If you can, use energy when you’re generating the most solar or when rates are low. For example, do laundry in the middle of the day or charge an electric car after peak evening hours. If you work from home, you may already use more electricity during the day, when your system is generating the most.
🤓Nerdy Tip
Solar leasing allows homeowners to rent solar panels. Instead of a big upfront investment, homeowners typically make monthly lease payments. However, the homeowners don’t own the panels, so they typically don’t qualify for tax incentives or rebates, and the lease contract may make it more challenging to sell their houses.
Go solar before export rates go down
Every two years, the CPUC updates the avoided cost calculator, which determines what the utility will pay consumers for their excess electricity.
“Customers lock in the currently calculated export rates for the next nine years,” Heavner said. “These numbers change each year, but you know what they are according to the current calculation of export rates. This lock-in will no longer be available to customers installing after 2028.”
Export rates have been coming down, Heavner said. They could also go up in the future, becoming more favorable to NBT customers, as the value of energy sent to the grid increases because of rising electricity demand.
“It is not clear how the utilities will change the NBT export rate,” Cinnamon said. “The original export rates were already effectively reduced by utilities, so I expect that these export rates will continue to change in the utilities’ favor.”
Look at the big savings picture
Solar panels usually last 20–30 years. Although the NBT lengthened the solar payback period (now nine years, by some estimates), you may still save money over time. In addition, rapidly rising electricity costs could shorten that payback period
.
Frequently asked questions
What’s the difference between net metering and net billing?
Under net metering, you sell solar-generated electricity to the grid at the retail rate. Under net billing programs, you sell your excess energy to the grid at a below-market rate.
In California, this lower rate is based on a calculated value of the electricity at the moment it’s sent to the grid. This is also known as the “avoided cost” rate because it reflects the costs the utility avoids by buying power from you instead of producing that power or purchasing it elsewhere.
Can I install solar now and add a battery later?
Yes. If energy storage isn’t right for you at the moment, you can still go solar now and add a battery later if costs come down.
Will there be a new version of the NBT in California?
NEM policies have been shifting across the nation, and it’s possible that the NBT in California will change.
Charlotte, North Carolina offers a unique blend of Southern charm, college town energy, and big city sophistication. Known for its thriving job market, mild weather, and growing food scene, Charlotte is an attractive destination for both renters and buyers. Not sure if the Queen City is for you? Read on to find out what to expect if you’re considering a move to the Charlotte area in 2024.
You know it from: Days of Thunder, The Color Purple, The Eyes of Tammy Faye
Average 1 bedroom rent: $1,527 | Charlotte apartments for rent, Charlotte houses for rent
Average home price: $445,000 | Charlotte homes for sale
Average cost of full-service moving services: $112/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Manufacturing, Finance, Tech
Move here for: The job market, big city amenities with a small town feel, outdoor recreation
Be sure to bring: Baseball hat and boat shoes
1. Southern hospitality is a real thing in Charlotte
Charlotte residents are famously friendly and welcoming. Whether you’re at a local brewery, a neighborhood festival, or just walking down Tryon Street, expect to be greeted with smiles and warm conversation. This sense of community extends to neighborhood gatherings and public events, making it easy for newcomers to feel at home quickly. The genuine friendliness of Charlotteans is often cited as one of the city’s most appealing qualities.
2. Mild winters and hot, humid summers
Charlotte enjoys four distinct seasons, with mild winters that rarely see snow and long, hot summers. Spring and fall are particularly pleasant, offering comfortable temperatures perfect for outdoor activities. However, the summer heat can be intense, with temperatures frequently soaring into the 90s and high humidity levels.
Moving Tip: Beat the summer heat by embracing the local custom of escaping to the mountains or nearby lakes. Check out Salem Lake near Winston-Salem or the quaint town of Sylva. If you’re feeling fancy, Highlands and Cashiers are also popular.
3. Rapidly growing job market
Charlotte is a major financial and banking hub, home to Bank of America and the east coast operations of Wells Fargo. The city’s economy is diverse, with opportunities in finance, tech, healthcare, and energy sectors. This growth has spurred a high demand for skilled professionals, making Charlotte an attractive destination for job seekers. The low unemployment rate and competitive salaries add to the city’s appeal for career-driven individuals.
4. Diverse neighborhoods with unique charm
From the historic charm of Dilworth to the urban vibe of Uptown, Charlotte’s neighborhoods offer something for everyone. NoDa (North Davidson) is known for its artsy feel and vibrant nightlife, while South End boasts trendy eateries and the popular Rail Trail. Each neighborhood has its own distinct personality, making it easy to find a community that fits your lifestyle. Exploring these areas is a great way to discover what makes Charlotte special.
5. The craft beer scene is booming
Charlotte has a thriving craft beer scene, with over 30 breweries scattered throughout the city. Popular spots like Olde Mecklenburg Brewery, NoDa Brewing Company, and Sycamore Brewing attract locals and visitors alike. Beer enthusiasts will enjoy the variety of local brews and the lively social scene at these breweries. Many offer tours, events, and food trucks, creating a perfect atmosphere for casual outings.
6. Excellent outdoor recreation opportunities
With the U.S. National Whitewater Center, Lake Norman, and numerous parks, Charlotte offers plenty of outdoor activities. The Whitewater Center provides everything from whitewater rafting to rock climbing and mountain biking. Freedom Park and Romare Bearden Park are ideal for picnics, sports, and community events. These green spaces are perfect for those who enjoy an active lifestyle and connecting with nature.
Moving Tip: One of the perks of living in Charlotte is its convenient location. The Blue Ridge Mountains are just a few hours to the west, perfect for weekend getaways and outdoor adventures. To the east, the Carolina coast offers beautiful beaches and seaside towns. This accessibility makes it easy to enjoy diverse landscapes without long travel times.
7. Traffic can be challenging
The city’s rapid growth has led to significant traffic congestion, especially during rush hours. Main arteries like I-77 and I-85 can become bottlenecks, making commutes longer than expected. Charlotteans often strategize their travel times to avoid peak congestion. While public transportation is available, it’s not as extensive as in larger cities, so having a car is often necessary.
8. From collard greens to fine cuisine
Charlotte’s culinary scene is diverse and delicious, offering everything from Southern comfort food to international cuisine. Popular dining spots include Kindred in Davidson, Optimist Hall, and Haberdish in NoDa. The city’s food truck culture is also thriving, with weekly events like Food Truck Friday showcasing a variety of options. Foodies will appreciate the constantly evolving restaurant landscape and the emphasis on local ingredients.
Moving Tip: If you’re new to the region, we urge you to try Cheerwine, the polarizing soda that is either beloved or bemoaned by NC denizens.
9. Cost of living is relatively affordable
Compared to other major cities, Charlotte’s cost of living is quite reasonable. Housing costs, while rising, are still 10% below the national average. Utilities, groceries, and healthcare also tend to be less expensive. This affordability makes it possible to enjoy a higher quality of life without breaking the bank.
10. Strong education options
Charlotte offers a range of educational opportunities, from highly-rated public schools to prestigious private institutions. The city is also home to several colleges and universities, including UNC Charlotte and Davidson College. These institutions provide quality education and contribute to the city’s vibrant intellectual community.
11. The arts are a big part Charlotte’s culture
The arts are alive in Charlotte, with numerous galleries, theaters, and museums. The Mint Museum, Bechtler Museum of Modern Art, and Blumenthal Performing Arts Center are just a few highlights. The city also hosts events like the Charlotte Film Festival and Charlotte Symphony performances. Culture enthusiasts will find plenty to explore and enjoy in Charlotte’s dynamic arts scene.
12. Sports fans will feel right at home
Charlotte is a sports town, home to the NFL’s Carolina Panthers, the NBA’s Charlotte Hornets, and the NASCAR Hall of Fame. Bank of America Stadium and Spectrum Center host exciting games and events throughout the year. Whether you’re a football, basketball, or motorsports fan, Charlotte offers plenty of opportunities to cheer on your favorite teams.
13. Vibrant nightlife and entertainment
From lively bars and clubs in Uptown to cozy music venues in NoDa, Charlotte’s nightlife has something for everyone. The Music Factory and Epicentre are popular destinations for concerts and entertainment. The city’s vibrant social scene ensures there’s always something happening, making it easy to find fun and excitement after the sun goes down.
14. A green city with plenty of parks
Charlotte boasts an abundance of green spaces and parks, perfect for outdoor enthusiasts. Freedom Park, Romare Bearden Park, and the U.S. National Whitewater Center offer a variety of recreational activities. These spaces provide a welcome respite from urban life and are popular spots for picnics, sports, and relaxation. The city’s commitment to green spaces makes it easy to enjoy nature without leaving the city.
Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from Charlotte Alliance.
If you’re on TikTok or Reddit, it’s likely you’ve come across a tenacious rumor: That it’s better to invest in life insurance than a 401(k) for retirement. So, is it true?
Life insurance vs. 401(k)
Life insurance isn’t an investment, while a 401(k) is a type of investment account offered through your employer. Permanent life insurance (which offers lifelong coverage) isn’t an investment, and its exorbitant fees erode the money you pay into your policy and any earnings you might make for the first decade.
“It was very strange to me that there were so many life insurance salespeople all over TikTok, basically soapboxing about life insurance, like it was the next big thing like it was the most amazing investment on Earth,” says Vivian Tu, founder of Your Rich Bff, a TikTok channel that focuses on financial education, based in Miami Beach, Florida.
Can life insurance grow like an investment account?
In some cases, yes. There are some types of life insurance, such as whole life insurance or universal life insurance, that have the ability to increase in cash value. But how do some of those policies earn money like an investment return? By tracking market indexes.
One of the features touted by TikTok influencers is that returns made on insurance policies aren’t affected by the overall stock market, but that isn’t necessarily true. The insurance companies may invest in the stock market with part of their portfolio, which is technically a portion of a policy owner’s premium. Though some policies provide fixed returns, some depend on current interest rates and investments. Some policies have you pick the stock or bond indexes for your policy to mirror, such as the S&P 500, and the insurance company pays you interest based on how those indexes perform.
Life insurance vs. 401(k): Fees
If life insurance can earn stock market interest in a way similar to that of a 401(k), what’s the issue?
The issue is that, depending on the policy, the staggering fees insurance policies charge often wipe out the amount you would get back from those premiums and any investment returns.
For example, if you pay the premium for seven to 10 years, most of those premiums go toward the cost of providing that insurance. In addition, there are administrative fees and the agent’s commission, though you may not see a commission listed on a statement and it may be difficult to figure out exactly how much those commissions are. Those commissions aren’t a one-time payment: You may continue to pay them for seven to 10 years, or as long as the policy is active.
The premiums you pay that cover fees don’t sit in an account waiting for you to cash them in. If you pay into a 401(k) for a decade, you get to keep all that money less any fees and investment losses. With an insurance product, it’s only after a decade (again, depending on your policy) of monthly payments that you actually start accruing premium money and interest in a cash value account the insurance company holds for you.
That interest percentage is less than you can get in a high-yield savings account and far less than the stock market’s long-term average of 10% (not accounting for inflation).
Insurance policies also have significant surrender charges, which are fees you have to pay if you withdraw money from your policy early. These charges are often so large that they can dramatically reduce the net value of your policy until the first few years pass.
For example, if you wanted to take money out of your policy after the first two years, your surrender charge would likely be so high that there would be little to no money to take out. These charges eventually reduce to zero, but it can take 10 to 16 years.
While 401(k)s do charge a 10% penalty if you want to take money out of your account before you’re 59½, that 10% is likely to be far less than a surrender charge. Plus, there are lots of exceptions to the 401(k)’s 10% penalty, including disabilities, the birth of a child, medical expenses and emergency personal expenses.
If you were to invest in the stock market through a 401(k), you wouldn’t lose 10 years’ worth of investment dollars to the cost of insurance, and your management fee would likely be less than 1%.
“The idea that 401(k) fees are higher than an insurance product that would be serving as an investment, I don’t even know how you support that idea,” says Georgia Lee Hussey, a certified financial planner and founder of Modernist Financial, a wealth management firm in Portland, Oregon.
Insurance fees are complex
In addition to paying commissions and exceptionally high fees, you may not even know how much you’re paying because insurance fee structures are so complicated.
“Whole life policies are basically called the black box of insurance policies. You can’t really see what’s happening inside them,” Hussey says. “You can understand the internal expense ratio sometimes but you usually have to go deep into the disclosure documents to understand what the insurance company is really getting paid.”
If you purchase insurance through an agent or broker (or a TikTok influencer), it’s possible that that person will be making a commission, and that’s on you to figure out.
“When you actually look into it, you realize that all of these people are, in fact, life insurance brokers. They don’t even work at life insurance companies that provide the policies,” Tu says. “The vast majority of them are not fiduciaries, so they are not legally obligated to do right by you financially.”
On the topic of using insurance to invest, it’s good to remember two cardinal rules of investing: If it sounds too good to be true, it probably is. And if you can’t explain it clearly to a friend, you probably don’t understand it, which could be a sign to steer clear.
As Tu says: “It’s insurance. It’s not an investment.”
Welcome to the vibrant city of Oakland, where the rich cultural diversity and stunning natural beauty come together to create a truly unique urban experience. From the bustling waterfront to the serene redwood forests, Oakland offers a little something for everyone. So whether you’re looking for an apartment in downtown Oakland or an apartment in Rockridge, you’ve come to the right place. In this ApartmentGuide article, we’ll cut to the chase, breaking down the pros and cons of living in Oakland. Let’s get started and see what awaits in this diverse city.
Fast facts about living in Oakland
Population: Approximately 430,000 residents
Average rent: $2,355 per month for a one-bedroom apartment
Median home sale price: $895,000
Public transit: Bay Area Rapid Transit (BART), AC Transit buses, and ferries
Public parks: Over 130 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 3.5 million visitors each year
Restaurants: Over 1,000, offering a variety of cuisines from around the world
1. Pro: Rich cultural scene
Oakland offers a vibrant cultural scene, with numerous museums, galleries, and theaters. The city is home to the Oakland Museum of California, which showcases the state’s art, history, and natural sciences. Additionally, the Fox Theater and the Paramount Theatre host a variety of concerts, performances, and events throughout the year. The city’s diverse population contributes to a rich tapestry of cultural festivals and events, such as Art + Soul Oakland and the Eat Real Festival, offering residents ample opportunities for artistic and cultural engagement.
2. Con: High cost of living
Housing costs in Oakland are relatively high, with the median sale price for a home in Oakland around $895,000 and the average rent for a one-bedroom apartment in Oakland about $2,355 per month. These housing costs are 87% higher than the national average, making it challenging for many people to afford living in the city.
The high cost of living extends beyond just housing. Overall, the cost of living in Oakland is about 40% higher than the national average. Utilities are 40% more expensive, groceries are 17% higher, transportation costs are 33% above average, and healthcare costs are 21% more. These increased expenses in multiple areas can significantly impact residents’ budgets, requiring careful financial planning to manage effectively.
3. Pro: Strong job market and innovation hub
Oakland has a robust and diverse job market, particularly in the technology, healthcare, and education sectors. The city’s proximity to Silicon Valley and San Francisco provides additional job opportunities, and its more affordable commercial real estate has attracted a growing number of tech companies and startups. This environment fosters a spirit of innovation and entrepreneurship, providing numerous opportunities for networking and career advancement in the tech industry.
Major employers in the area include Kaiser Permanente, Clorox, and the Port of Oakland. The presence of these companies, along with a thriving startup scene, contributes to the city’s economic stability and offers a wide range of career opportunities.
Top employers in Oakland
Blue Shield of California
Sutter Health
Pixar Animation Studios
Southwest Airlines
Alameda Health System
4. Pro: Outdoor recreational activities
Oakland offers a wide range of outdoor recreational activities, thanks to its extensive park system and proximity to natural attractions like the East Bay Hills and the San Francisco Bay. Residents can enjoy hiking, biking, kayaking, and picnicking in the numerous parks and natural areas. The city’s mild climate allows for year-round enjoyment of these activities.
Popular outdoor spots in Oakland
Lake Merritt
Joaquin Miller Park
Redwood Regional Park
Temescal Regional Recreation Area
Middle Harbor Shoreline Park
5. Con: Traffic and parking
Oakland, like many urban areas, experiences traffic congestion and limited parking options. The city’s layout and infrastructure can make driving challenging, and finding parking can be difficult and expensive, especially in popular neighborhoods and downtown. Public transportation, biking, and walking are popular alternatives, but residents who rely on cars may find the traffic and parking situation frustrating. Investing in a parking spot or using car-sharing services can help mitigate some of these challenges.
6. Pro: Culinary diversity
Oakland features a diverse culinary scene, with a wide range of restaurants offering cuisines from around the world. From high-end dining establishments and historic seafood restaurants to food trucks and ethnic eateries in neighborhoods like Chinatown and Fruitvale, the city has something to satisfy every palate. Food festivals, such as Eat Real Festival and Oakland Restaurant Week, showcase the city’s culinary creativity and provide opportunities for residents to explore new flavors.
Popular restaurants in Oakland
Commis
Brown Sugar Kitchen
Homeroom
Sobo Ramen
Drake’s Dealership
7. Con: Earthquake risk
Oakland is located near several major fault lines, making it prone to earthquakes. While the city has implemented stringent building codes and preparedness measures to mitigate the impact of seismic activity, the risk of earthquakes remains a significant concern for residents. Homeowners and renters are encouraged to have earthquake insurance and to be prepared with emergency kits and plans. This natural disaster risk is an important factor to consider when deciding to live in Oakland.
8. Pro: Public transportation
Oakland has a well-developed public transportation system, making it easy for residents to get around without a car. Bay Area Rapid Transit (BART) connects Oakland to San Francisco, Berkeley, and other parts of the Bay Area. AC Transit provides extensive bus services, and ferries offer a scenic commute across the bay. Ride-sharing services like Uber and Lyft are also widely available. Oakland has a transit score of 57, a walk score of 75, and a bike score of 65, reflecting the city’s good infrastructure for public transit, walking, and biking.
9. Pro: Strong sense of community
Oakland is known for its strong sense of community and civic engagement. Residents are often involved in neighborhood associations, community events, and local initiatives that promote a sense of belonging and collaboration. The city’s diverse neighborhoods, such as Rockridge, Montclair, and Fruitvale, each have their own unique character and charm, fostering tight-knit communities where residents support one another. This strong community spirit enhances the quality of life and makes Oakland a welcoming place to live.
10. Pro: Vibrant arts scene
Oakland features a vibrant arts scene, with numerous galleries, studios, and performance spaces. The city is home to the Oakland Art Murmur, a monthly event that showcases local artists and galleries, and the First Fridays street festival, which features live music, food vendors, and art installations. Additionally, Oakland’s cultural diversity is reflected in its many community arts programs and events, offering residents ample opportunities to engage with the arts and express their creativity.