A judgment is an order issued by a judge or jury to settle a lawsuit. This decision details the rights, responsibilities, and obligations of each party. For example, if you fail to pay a debt, the lender can take you to court. In this case, the judge may order you to pay the other party as part of the court’s final judgment.
The order can be issued in one of two forms:
A monetary judgment: A judgment that orders one party to pay the other party a specific amount of money.
A nonmonetary judgment: A judgment that involves a nonmonetary type of resolution, such as the exchange of property or services. For example, a contractor may be ordered to complete a service for a client.
There are several classifications for judgments, including:
In personam: This is the most common civil judgment classification. It occurs when one party is liable to another.
In rem: Rather than involving personal liability, in rem judgments hold liability over a specific item, such as property.
Quasi in rem: Quasi in rem judgments consider the legal rights of individuals and not necessarily all parties involved.
Ultimately, if you don’t pay a debt, the lender or bill collector can file a lawsuit against you to recoup the money. The judge or jury determines if and how much money you owe. These terms are laid out in the final judgment.
What Is a Judgment on Property?
Your property includes both physical items and money. That means judgment creditors can seek debt payment from more than your wages and bank accounts. They may also take back a car you financed or other personal property. Another option is placing a lien on some of your property, such as your home.
What Property Can Be Taken to Settle a Judgment?
Creditors must follow the law when applying a judgment to take, or seize, your property. Some things are exempt—which means they can’t touch those items or properties. Some examples include the home you live in, the furnishings inside it, and your clothes. State laws identify these items and set limits based on their value.
Non-exempt property can be taken to help meet a judgment debt. Your creditor can take or leverage these possessions in the following ways:
Wage attachments. This is known as wage garnishment. When your employer receives the proper legal notice, they must withhold a percentage of your wages. These payments are sent to the judgment creditor until your debt is paid. The Consumer Credit Protection Act caps these types of garnishments. The limit is 25% of your disposable weekly wages or the amount you earn that’s above 30 times the minimum wage. The lessor of these two amounts applies. Some states set the cap even lower.
Nonwage garnishment. If you’re retired, unemployed, or self-employed, your bank account may be garnished instead. Here, too, there are exemptions. Veterans payments, social security, and disability benefits are not eligible for nonwage garnishment. Some states add even more restrictions to the garnishment of bank funds.
Property liens. If you own real estate, your judgment creditor may file a legal claim against it. These liens notify lenders of the creditor’s rights to your property. That way, if you sell your real property, the debt must be paid out of the proceeds. In many states, liens are placed automatically when a judgment is entered.
Property levies. Judgments may also allow some of your non-exempt personal property to be taken through a levy. Law enforcement may seize things like valuable collections or jewelry to be sold at auction. Sales proceeds are applied to your debt.
What Are the Types of Judgments?
Judgments come in many forms. Below is a look at the five types of judgments.
Satisfied judgment: A satisfied judgment means the debt is settled. This doesn’t necessarily mean you have paid the debt in full. It could mean there’s a new payment arrangement and you’re making regular payments.
Unsatisfied Judgment: An unsatisfied judgment means the debt is not settled yet. You’re expected to follow the court order and make payments on the outstanding debt. Until you make your final payment or come to another agreement with the other party, it will remain an unsatisfied judgment.
Vacated Judgment: If you don’t agree with the court’s initial judgment, you have the right to appeal that decision. If the judge decides to dismiss the case, the initial order becomes a vacated judgment.
Summary Judgment: If both parties agree to the basic facts of the case, either party may request to skip the trial and go straight to a summary judgment. The judge issues this final judgment without going through the process of holding a trial.
Renewed Judgment: Some states allow creditors to seek a new judgment for specific reasons. If this happens, the judge may issue a renewed judgment. This judgment may void the initial judgment or serve as an additional order.
Three Ways of Getting a Judgment
There are several ways a civil judgment can be determined.
1. Judgment After Trial
As the name suggests, a judgment after trial is a decision that occurs only after a trial. Once the judge or jury hears all the evidence and makes a final decision, the judge issues a formal judgment in the case.
2. Consent Judgment
A consent judgment occurs when both parties negotiate a final settlement. The judge must approve this final agreement, which is done by issuing a formal consent judgment.
3. Default Judgment
A default judgment occurs when the defendant fails to respond to a summons and complaint. In this case, the judge issues a default judgment in favor of the plaintiff without hearing any evidence from the defendant.
Can Judgments Affect Your Credit?
Judgments can’t directly impact your credit because the details of these orders aren’t part of your credit report. However, it’s likely that issues leading up to the final judgment could affect your credit. For example, your payment history can remain on your credit report for up to seven years. If you have any missing or late payments that led to the judgment, this history can impact your credit score.
A judgment could also have a positive effect on your credit. For example, once the debt is paid, the account balance should change to zero on your credit report. This could help lower the amount of debt you owe, which could impact your credit utilization rate.
Once the judge issues a judgment, you can use Credit.com’s Free Credit Score service to see if it had any effect on your score. As you work to rebuild your credit, you can enroll in Credit.com’s ExtraCredit® program to monitor your credit score over time.
What Is a Judgment on a Credit Report?
Judgments aren’t reported on your credit report and don’t directly impact your credit score. However, judgments are public records, so lenders could still have access to this information. This could affect your ability to secure credit in the future.
What Happens After a Judgment Is Entered Against You?
Once the judge enters a judgment, both parties must abide by the order. For example, you must pay the amount of money ordered by the judge, and the creditor must mark the account paid in full once payment is made. If you can’t pay the amount all at once, you may be able to set up a payment arrangement. You’re legally obligated to make these payments.
What Happens After a Judgment Is Entered Against You?
The court enters a judgment against you if your creditor wins their claim or you fail to show up to court. You should receive a notice of the judgment entry in the mail. The judgment creditor can then use that court judgment to try to collect money from you. Common methods include wage garnishment, property attachments, and property liens.
State laws determine how much money and what types of property a judgment creditor can collect from you. These laws vary. So, you need to look to your own state for the rules that apply. A consumer law attorney can help you understand your state’s laws on judgment collections.
What Is the Difference Between a Civil Judgment and a Criminal Judgment?
There’s a major difference between civil court and criminal court.
A civil court typically involves disputes between two parties. For instance, it could involve a case between two individuals, two organizations, or one organization and one individual. These cases often pertain to a breach of contract, an unsettled debt or a lack of services.
Unless both parties agree to the facts of the case, the judge gives each party the opportunity to present evidence. For example, if a debt collector takes you to civil court for an unpaid bill, you can provide evidence of any payments you made. After hearing the evidence, the judge issues a final judgment, known as a civil judgment.
On the other hand, criminal court involves someone accused of breaking the law. The federal, state, or local government charges the accused party. If, after holding a trial, the defendant is found guilty or the defendant pleads guilty prior to the trial, the judge issues a criminal judgment. A sentence is issued later, which could include jail time or some other form of punishment.
What Can You Do to Avoid a Judgment?
Heading off a lawsuit is the best way to avoid a judgment. To do so, don’t ignore calls and correspondence from your creditor. Reach out to learn if they’ll accept suitable payment arrangements. Educate yourself on smart ways to pay debt collectors, and consider using the services of a debt management agency.
What if the loan company or debt collector has already started the lawsuit? Don’t skip court. Show up and fight. You may win if the statute of limitations has expired.
If you haven’t made a payment on an old debt for many years, you may have a successful legal defense. Most states set the time frame between four to six years. Collectors often still file suit because they win by default if you don’t show up. So, it’s important that you go to court with proof of your last date of payment.
If you successfully defeat or avoid a judgment, don’t stop there. Take some sensible steps to help you get out of and stay out of debt. Adopting these smart financial habits can also help prevent future judgment actions.
Additional FAQs about Judgments
How Long Can the Judgment Creditor Pursue Payment?
The answer depends on where you live, since state laws differ. Some states limit collection efforts to five to seven years. Others allow creditors to pursue repayment for more than 20 years. With the right to renew a judgment over and over in many states, it may last indefinitely.
Judgment renewals may be repeated as often as desired or limited to two or three times. This is another state-specific issue. Judgments can also lapse or become dormant. The creditor must then act within a specific time frame to revive it.
What Happens When You Can’t Pay a Judgment Filed Against You?
If you own a limited amount of property, it may all be exempt from judgment collection efforts. Also, you may not work or only work part-time. With the CCPA cap, that may mean you don’t earn enough for garnishment.
This inability to pay your debt is called being judgment proof, collection proof, or execution proof. While these circumstances exist, the judgment creditor has no legal way to collect on the debt. It’s not a permanent solution. The creditor may revisit collection efforts periodically for many years.
For a more permanent solution, you may want to consider filing bankruptcy. This process can discharge or eliminate most civil judgments for unpaid debt. Exceptions apply for things like child support, spousal support, student loans, and some property liens. Speak with a bankruptcy lawyer to learn whether this will help your situation.
Can You Settle a Judgment?
If you can afford to pay a decent lump sum, you may be able to negotiate a settlement. The judgment creditor may be willing to settle if they fear you will otherwise file bankruptcy. Get the terms and settlement amount you agree upon in writing. Be sure the creditor agrees to file a satisfaction of judgment with the court after they receive your pay off.
Can a Judgment Be Challenged or Reversed?
Challenging and overturning a judgment is difficult but not always impossible. This is the case if there were errors. Perhaps you weren’t notified of the suit or it was never your debt to begin with. Consult with an attorney to find out whether you have grounds to challenge the decision.
If you want to challenge a judgment, act fast. If you received prior notice of the case, you may have up to six months to reopen it. If you weren’t notified, you likely have up to two years to appeal. By reopening the case, you have the opportunity to fight the claim anew.
Do Credit Reports Still Include Judgments?
For many years, credit reports included judgment information. But that changed in 2017. The National Consumer Assistance Plan is responsible for creating more accurate credit data requirements. These changes resulted in the removal of civil debt judgments from credit reports.
Judgments are still a matter of public record. But the NCAP now requires that there be identifying information on these records for more accuracy. That data includes a social security number or date of birth along with the consumer’s name and address.
Public records cannot include this type of identifying information. It would violate privacy laws. This is the reason these judgments are no longer reported on credit files.
How Do You Find Out if You Have Any Judgments Against You?
You should receive a summons when you’re being sued. So, you can expect a default judgment will follow if you don’t show up in court. You can also expect a notification when a judgment is entered against you.
Mistakes happen, though. You may have missed the notice or moved to a new address. If that happens, you may not learn of the judgment until collection actions start.
What if You Find a Judgment on Your Credit Report?
Take action if you learn that judgments are still being reported by Equifax, Experian, or Trans Union. The NCAP eliminated this practice, so if there’s a judgment on your report, this is definitely something that you should dispute. Credit repair services, like Lexington Law Firm*, can help you challenge the errors on your behalf with the credit bureaus and request that they correct your report.
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Disclosure: Credit.com and CreditRepair.com are both owned by the same company, Progrexion Holdings Inc. John C Heath, Attorney at Law, PC, d/b/a Lexington Law Firm is an independent law firm that uses Progrexion as a provider of business and administrative services.
Shopping for your first home is an exciting time. You are choosing a place to plant yourself and bloom for many years to come.
However, home shopping is not all fun and games. Not only do you have to find the perfect home, but also the right financing terms for your new mortgage. If you have bad credit, you are likely worried about your mortgage options.
As a first-time homebuyer, the process of buying a home can be overwhelming. Before you lose hope, it is entirely possible to secure a home loan with bad credit. Many mortgage lenders offer subprime home loans that work specifically with borrowers with poor credit. We will dive into the details to help you get through the first-time home-buying process more easily.
How Bad Credit Can Affect Your Home Loan
Typically, lenders that approve loans to borrowers with bad credit offer less than favorable terms. In most cases, you can expect to pay a higher interest rate.
A slightly higher interest rate might not seem like a big deal. However, even a slight increase in your interest rate could result in thousands of dollars in interest payments over the course of your loan.
When you sort through your loan offers, make sure to run the numbers. You might not be willing to pay the premium rates for the opportunity to buy a home right now.
Other Factors that Mortgage Lenders Consider
As a borrower, your credit score is not the only factor lenders consider. Before a mortgage lender approves a large loan, it will look at various other factors, including:
The amount of money in your savings account. If you have a healthy savings account, that may offset your bad credit.
Income. The higher your income, the more likely you are to be approved.
Employment history. If you just landed a high paying job, then the lender might be less willing to work with you. However, consistently earning a high income for many years will strengthen your application.
Debt-to-income ratio. If you already have a high debt burden, then lenders may be less willing to work with you.
Current expenses. If your current rent payment is similar to the mortgage payment, then a lender may see that you are able to easily handle that expense.
When you go through the home buying process, expect to provide a lot of paperwork to verify this information. In many cases, you will be required to provide tax statements, paychecks, and more. However, if you stay organized throughout the process, your sanity will thank you later.
How to Secure Home Financing with Bad Credit
To qualify for a bad credit home loan, you will need to be willing to put in the time. Finding the best option for your situation may require some patience. Not all options will work for everyone, but it is likely that at least one option will work for everyone.
See Where You Stand
Before you start looking for homes, take a closer look at your financial health.
Start by checking your credit score. A free way to do this is through Credit Karma. Once you know where your credit score is, take the time to find your credit report. Once you have your credit report, read through for any errors. A mistake on your credit report may be dragging your score down. If you find any mistakes, you can dispute them.
After digging into your credit score, take a step back. Assess your savings. Have you grown it steadily? Either way, it is crucial to understand exactly how much house you can afford.
Consider Saving for a Larger Down Payment
One way to secure a mortgage loan with more favorable terms with bad credit is to provide a larger down payment. Bigger down payments give the mortgage lender reassurance that you are able to repay the loan.
For conventional loans, banks typically require a down payment of at least 20%, but there are many options for a lower down payment. But you can usually secure better terms if you wait until you’ve saved a sizable down payment.
Find A Lender that Will Work with You
Not every lender is willing to work with bad credit borrowers. Although, you may not be able to secure a conventional loan from a well-known bank, it is entirely possible to find a lender.
If you have bad credit, you’ll need to find a lender that offers subprime home loans or that works with government-backed programs.
Luckily, many mortgage lenders are likely willing to work with you. The tricky part can be finding your choices. Check out our top mortgage lenders to get started.
Financing Options for First Time Homebuyers with Bad Credit
The federal government offers several assistance programs for buying your first home. Take a minute to find out if you qualify for any of these programs.
FHA Loans
If you have bad credit, an FHA loan might be your best option. The minimum credit score to qualify for an FHA loan is just 500! Of course, some mortgage lenders may require a slightly higher score to approve you. But you can shop around to find a lender willing to work with you.
If your credit score is between 500 and 579, the Federal Housing Administration (FHA) requires a minimum down payment of at least 10%. However, if you have a minimum credit score of 580, you’ll only be required to put down 3.5%.
With FHA loans, a mortgage insurance premium (MIP) is required along with an upfront MIP fee of 1.75% of the loan amount.
As a first-time homebuyer with bad credit, the benefits of this program can help your home purchase go smoothly.
USDA Loans
If you are willing to live in a rural community, a USDA loan could be a suitable option. These loans are guaranteed by the United States Department of Agriculture, and don’t private mortgage insurance (PMI).
Typically, you’ll need a minimum credit score of 640 to score a USDA loan. However, a lower credit score does not automatically disqualify you.
If you have a low credit score, then the lender will look more closely at other contributing factors before deciding on your loan application. You may need to prove that your credit was damaged by something outside your control or provide credit references like utility statements to prove your creditworthiness.
VA Loans
A VA home loan is guaranteed by the Department of Veteran Affairs. If you meet the requirements of service, then you could qualify for a no down payment option to secure the home of your dreams.
In contrast to traditional lenders, the VA home loan program has less strict requirements when it comes to their loans. The goal of the program is to get the bravest in our nation into a safe home. With that, lenders that provide VA-backed loans can offer loans to borrowers with lower credit scores.
Almost every member or veteran of the military, reserve, or National Guard is eligible to apply for these loans. The first step you should take is to secure your Certificate of Eligibility. With that, you’ll be able to apply for a VA loan with an approved lender.
See also: How to Get a VA Loan with Bad Credit
Research State Assistance Programs
The U.S. Department of Housing and Urban Development works to provide affordable homeownership options throughout the country. In many states, they offer first-time homebuyers assistance.
Depending on your area and income, the type of assistance may vary. For example, in some areas, you may qualify for a down payment grant that will help you secure your home purchase. With a higher down payment, you may be able to offset the negative effects of your poor credit score.
Compare Mortgage Rates
Once you have determined the best path for you, it is time to compare lenders. If you take the time to shop around for the best loan terms, you stand to save thousands of dollars over the course of your loan.
Shopping around for the right lender might be the most important part of your entire home buying process. Find a lender that you are comfortable with and that is willing to work with your poor credit score.
Work on Your Credit Score
A surefire way to secure better mortgage terms is to improve your credit score. If you can wait on your home purchase, then you might have a stronger loan application.
Improving your credit score will take time. But if you put in the effort the long-term benefits are worth it. Not only will you be more likely to be approved for loans, but also will likely pay less in interest payments.
To start improving your credit score make sure to pay bills on time and work towards paying off your debt.
First-Time Home Buyer with Bad Credit FAQs
Can I buy a house with bad credit?
Yes, it is possible to get a home loan with bad credit. However, the interest rate and other loan terms may be more expensive than if you had good credit.
You may also need to have a bigger down payment and show proof of income. However, there are also lenders who specialize in offering mortgages to people with low credit scores.
What are the requirements for getting a mortgage with bad credit?
Have a steady income: Lenders want to know that you have a consistent income, so they will want to see evidence of your income such as pay stubs or W2s.
Have enough money saved for a down payment: With poor credit, most lenders will require a down payment of at least 5-10% of the purchase price.
Accept higher interest rates and fees: With a weak credit history, you may be required to pay higher interest rates and fees.
Find a cosigner: Having a cosigner can help you get approved for a mortgage with bad credit. The cosigner will be held responsible for the loan if you are unable to make your monthly mortgage payments.
What do mortgage lenders consider a bad credit score?
Lenders generally consider a credit score below 580 to be bad credit. Lenders may also consider scores between 580 and 669 to be fair credit. Credit scores of 670 or higher are typically considered good credit.
What is the minimum credit score needed for a mortgage?
Minimum credit scores needed for a mortgage varies by lender, but typically a score of 620 or higher is required for conventional loans, and a score of 500 or higher is required for FHA loans.
The minimum credit score needed for USDA loans is typically 640, and the minimum credit score needed for VA loans is typically 620.
What type of mortgage loan is best for someone with bad credit?
The best type of loan for someone with bad credit is usually an FHA loan. These loans are typically easier to qualify for than other types of loans, as they have more lenient credit score minimums and down payment requirements.
What other factors do lenders consider when evaluating my loan application?
Lenders will typically look at your credit score and credit report to assess your creditworthiness. They may also consider your down payment, debt-to-income ratio (DTI), income, employment history, and assets when evaluating your loan application.
Your down payment can show lenders that you are committed to the loan, and can also help to reduce the amount of the loan. Your DTI ratio is a measure of how much of your income is going towards paying off your existing debts. A higher DTI ratio can indicate to lenders that you may not be able to afford a loan.
Your income, employment history, and assets provide further evidence that you are a reliable borrower, and can help to establish your ability to repay the loan.
What is a conventional loan?
A conventional loan is a type of loan that is issued by private lenders and purchased by government-sponsored enterprises such as Fannie Mae and Freddie Mac.
How can I improve my credit scores?
Pay your bills on time: Payment history is the most important factor in your credit score, so be sure to make payments on all your bills on time.
Keep credit card balances low: Your credit utilization ratio, or the amount of available credit you are using, makes up 30% of your credit score. Try to keep your credit card balances low by using no more than 30% of your credit limit.
Don’t open too many new accounts: Opening too many accounts in a short period of time can be a red flag for lenders and can hurt your credit score.
Check your credit report: Make sure to regularly check your credit report for errors or other negative information that can hurt your score.
Consider a credit builder loan: Credit builder loans are designed to help people with no or low credit build a payment history and improve their credit score over time.
Bottom Line
Purchasing the home of your dreams with bad credit is not impossible. You will need to put in the time to figure out which path is the right one for you.
Once you see your financial path to your home, make steps towards that goal every single day. Your new home is not as far away as you think!
Interior designer shares 4 things to avoid while decorating your new home. Pic Credit: Canva
You have bought a new home and congratulations are now in order, but now is the time to add more depth and beauty to your humble abode by decorating it in a manner that maintains the aesthetic of the room. From choosing the right lighting to the colour palette of the furniture, what you install can go a long way in making your house look like home.
While people sometimes choose to go with their instincts and choices while designing their homes, a little help from experts can help find the middle ground between making the right choices without having to compromise on your preferences. So, if you are wondering how to go about decorating your home, interior designer Sonika Khurana Sethi, founder of Coloraza Design Studio shares 4 things homeowners should avoid while making their home.
1) Mounting water purifiers on the wall
For those who already have purifiers installed on the wall, you can admit that the setup looks a bit messy, especially the pipes that run along the purifier and cover the walls, giving it an untidy look. Not to forget, the gradual dampening of the walls or the salt deposits on the counter and fungus on the pipes from the dripping water droplets further ruin the material and look of the overall kitchen.
To avoid this mistake, get your water purifiers installed inside the cabinet beneath the kitchen sink which will not only make space to install a tap on the countertop to fill water but also keep the pipes hidden to beautify the space. You can also choose to fit a modern purifier on the upper cabinets to make it easier to drink and fill water into the bottles.
2) Installing tube lights in the room
Gone are the days when tube lights used to brighten almost every home in India. While they serve an important purpose, replacing them with modern methods, such as ambient and accented lighting can greatly change the outlook of your home. Install ceiling lighting, gorgeous lamp fixtures or decor items with tinted lighting available in different shapes and sizes to make your home look modern and chic.
3) Keeping matching sofa sets
Matching sofa sets have adorned our homes for a long time, but now is the time to cast them aside and introduce sofas with contrasting palettes to add more colour to your living room. Having a sofa set with the same colour not only loses its appeal, making them blend and fade easily into the background but gives it a dull appearance. Get hold of the colour scheme and choose colours for your sofa that will complement each other. Or if you wish to keep the colours the same, you can add some variety by introducing patterns and prints into the room by keeping a vibrant ottoman or a coloured chair beside the sofas.
4) Visible AC pipes
Just like water purifiers, an air conditioner comes with a bunch of pipes that run along the walls to assist in its functioning. While it is an essential component, keeping them inside the house ruins the overall look of the room, not to mention, that the holes drilled to fit the pipes can sometimes attract ants and other insects as well.
To avoid this, you can either paint the pies to match the wall or use some decorative pipe covers to make them look beautiful. You can also measure the length of the pipes along the wall and construct and wooden shelf around them which can then be used to store items, decorate with small potted plants etc.
Keep these 4 things in mind while decorating your home to make it look like a paradise.
Utilizing your 401(k) retirement account can seem daunting to beginner investors, but there are numerous strategies and tactics you can use to improve returns. Before any of that happens, though, investors will want to be sure to sign up for a 401(k) retirement account through your employer, which is often as simple as filling out a form.
As for the rest? Investing in your 401(k) doesn’t have to be complicated. From understanding your investment options and choosing your portfolio, to common mistakes to avoid, read on to get into the nitty-gritty.
How to Invest Your 401(k)
Investing in your 401(k) can often be as simple as making some basic investment choices. But it’s also good to know exactly how the account works.
As a refresher, a 401(k) is a type of tax-deferred retirement account sponsored by your employer. If you work for a non-profit, a school district, or the government instead of a company, your retirement plan might be a 403(b) or a 457(b) plan. All of these plans are employer-sponsored, meaning they pick the plan — and most of the information here applies to all three types of accounts.
You and your employer can both contribute to a 401(k). Many employers match employee contributions to some degree, and some may even contribute a portion of company profits to employees’ accounts (that’s known as a 401(k) profit-sharing plan).
Contributions are capped by the IRS: For the 2024 tax year, the maximum amount an individual might contribute to a 401(k) is $23,000, with an additional $7,500 in catch-up contributions allowed for people over age 50. The total amount that might be contributed to a 401(k), including matching funds and other contributions from an employer, is $69,000 (or $76,500 for people over age 50).
For the 2023 tax year, the maximum amount an individual could contribute to a 401(k) is $22,500, with an additional $7,500 in catch-up contributions allowed for people over age 50. The total amount that might be contributed to a 401(k), including matching funds and other contributions from an employer, is $66,000 (or $73,500 for people over age 50).
With all of that in mind, here are some things to remember as you start to invest in your 401(k), or look for ways to improve your returns. 💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.
Assess Your Goals
Investors should really take the time to assess their overall investment goals, and think about how their 401(k) fits into achieving those goals. Each investor will have different goals, and that means they’ll be willing to take different risks and be on different timelines as to when they want to reach those goals.
Again, this will vary from investor to investor, but before making any moves, it can be helpful to think more deeply about goals. Talking to a financial professional may be helpful, too.
Determine Your Risk Tolerance
Every investment comes with risk. The key is assessing your comfort level with risk now, and going forward. Whether you’re picking a target date fund or making your own mix of investments, you’ll want to allocate your money based on your needs and risk tolerance.
One rule of thumb when it comes to retirement investments is that the younger you are, the more risk you might be able to handle. The thinking goes that you will have more time to recover from market drops to allow riskier investments to pay off.
On the other hand, people closer to retirement may choose to adjust their investments. There, the goal would be to minimize risk, so that the savings they will soon need would not be overly impacted by a market downturn.
Look at Diversification
Diversification is critical when building a portfolio, so investors should keep an eye on what’s in their portfolio. An individual employee may not have a whole lot of say as to what exactly is going into their 401(k) investment mix, but you’ll want to keep an eye on things and stay abreast of the way that your portfolio manager is diversifying for you.
Target-Date Funds
A target-date fund is a mutual fund with a passive mix of investments aimed at a “target” retirement date. The mix of assets (stocks and bonds) typically becomes more conservative as your target retirement date nears. For people who prefer a hands-off approach, these funds might be a good investment option.
Something to keep in mind is that you don’t necessarily have to pick the target date based on when you actually plan to retire. If you feel the mix of assets is too aggressive, you might choose to select an earlier retirement year to take less risk.
Factors to Consider
Additionally, there are many factors investors will need to consider as it relates to their 401(k), such as their time horizon, expenses, and contribution levels.
• Time horizon: How long do you plan to invest? Investors will want to keep long-term returns in mind, and their investment mix and other choices can have an impact on their returns.
• Expenses: Investments often have expense ratios or other fees that can eat into returns, which is another thing to keep in mind.
• Contribution levels: The more you save for retirement and the earlier you start saving, the better off you’ll likely be in retirement. If you’re lucky enough to have an employer that matches your contributions, at a minimum you’ll probably want to take full advantage of your employer match.
Remember: Maximizing your 401(k) tends to benefit you in the long run. 401(k) employer contributions vary, so it makes sense to find out how matching works at your company, and then contribute at least enough to get that “free money.”
Get a 2% IRA match. Tax season is now match season.
Get a 2% match on all your SoFi IRA contributions* through Tax Day (up to the annual contribution limits). Plus, funding your IRA may reduce taxes.
*Offer lasts through Tax Day, 4/15/24. Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.
401(k) Investing: Things to Keep In Mind
There are a couple of other things that investors may want to try and keep in mind in regard to their 401(k), such as leaving old accounts open, and over-investing in specific funds.
Putting Everything into a Money Market Fund
A money market fund is a mutual fund made up of relatively low-risk, short-term securities. It’s a tempting move, because it feels like you don’t risk losing money. You’ll want to gauge whether your investing returns are outpacing inflation, accordingly. That may be the case if your money is only being invested in a money market fund — in fact, that may be the default if employees don’t make investment selections for their portfolio. You’ll need to check with your plan provider to find out.
Leaving Old 401(k)s Open
When you leave your current employer, it’s often a good idea to roll over your 401(k) into a traditional or Roth IRA. Most 401(k) accounts have fees associated with them. While typically an employer will pay those fees while you work for them, once you’re no longer with the company, many will stop paying them for you.
By moving your money into an account of your choosing, you have more control over the fees you pay. You’ll also generally have a broader range of investment choices. 💡 Quick Tip: How much does it cost to set up an IRA? Often there are no fees to open an IRA, but you typically pay investment costs for the securities in your portfolio.
The Takeaway
Investing in a 401(k) retirement savings account is fairly simple, especially since you can set it up through your employer. Whether you are typically a hands-on investor or prefer a hands-off approach, you can get your 401(k) contributions up and running — and start saving money for your future.
If you have an old 401(k), as noted above, you might want to consider doing a rollover to an IRA account so you can better manage your savings in one place.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
FAQ
Can I invest my 401(k) on my own?
It may be possible to invest in your 401(k) on your own, as some employers offer a self-directed plan option, which gives investors more choice and say over their portfolio.
Is it possible to make my 401(k) grow faster?
To make your 401(k) grow faster, you can look at increasing your contributions (up to a specified limit), or changing your investment mix. But note that many investments with higher growth potential tend to have higher associated risks.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SoFi Invest® INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit 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.
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.
Looking for the best summer jobs for teachers? Teachers, just like students, really enjoy the summer break. It’s a great time for them to relax and feel refreshed. But, this break can also be a chance for teachers to make extra money and even start a new business. I know many, many teachers who have…
Looking for the best summer jobs for teachers?
Teachers, just like students, really enjoy the summer break. It’s a great time for them to relax and feel refreshed. But, this break can also be a chance for teachers to make extra money and even start a new business.
I know many, many teachers who have side hustles in the summer. From part-time gigs to full-time summer businesses, there are many side jobs for teachers that you may want to try out.
Best Summer Jobs for Teachers
There are many summer jobs for teachers listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
Flexible way to freelance – Proofreading
Side job for teachers from home – Blogging
How to make passive income as a teacher – Sell printables
Work as much or as little as you want – Flea market flipping
Creative job idea – Dog treat baker
Side job for teachers in summer – Grocery shopper
Camp counselor – If you love the outdoors, being a camp educator can be both rewarding and enjoyable, combining teaching with adventure activities.
Summer school teacher – Many schools have summer classes where you can continue teaching.
1. Teach summer school
One clear way for teachers to earn extra money in the summer is by teaching summer school.
It’s a good way to use your teaching abilities and make some additional income. The best part is that summer school happens during your summer break (big surprise, right?!), so it fits well with your schedule when you’re already off from regular school.
To start, check with your local school districts. A lot of them have summer school programs, and they usually share job opportunities on their websites or local education job boards.
2. Sell educational printables
Selling educational printables is a way for teachers to earn extra money. It’s especially good for those who want to make passive income as a teacher.
Your materials, like worksheets, lesson plans, and activities, are helpful to other teachers and parents looking for high-quality educational content.
Some places to sell your educational printables include:
Teachers Pay Teachers(TPT) – This is a popular site where millions of teachers buy and sell original educational resources.
Etsy – This site is known for handmade items, but also is a great place for selling educational materials and printables.
Educational printables include things like math problems, vocabulary cards, and science experiments. They’re useful for different grades, age groups, and learning goals, making it simple to improve regular teaching or homeschooling. You can share these resources online or print them for in-person classes too.
Recommended reading: How I Make $400,000 Per Year Selling Educational Printables.
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.
3. Flip used items for resale
Trying your hand at flipping items from flea markets and thrift shops can be a fun and money-making summer job for you as a teacher.
Flippers are people who find items at flea markets, yard sales, and thrift stores that are priced lower than their actual value. They then sell these items for a profit.
The summer is a great time to do this because there are typically a lot of yard sales, flea markets, and people just in general decluttering more (so you may find more things that people are giving away), where you can find items to resell.
Some items that you can buy and resell include clothing, antique furniture, collectible toys, sports equipment, electronics, rare books, jewelry, and more.
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
4. Tutor
During the summer, your teaching skills are still needed. Tutoring can be a flexible and fulfilling summer job that lets you work with students one-on-one either online or in person.
You may be able to tutor on subjects like math, foreign language, science, and more. You also may be tutoring kids, teenagers, or even adults.
To begin, you can look for tutoring jobs on online tutoring sites like Tutor.com. You can also sell in-person local tutoring sessions by reaching out to tutoring companies nearby or advertising your services on social media or in local Facebook parent groups for your area.
5. Camp counselor
Becoming a camp counselor could be a rewarding experience for you in the summer. In this job, you’d guide groups of children through indoor and outdoor activities, as well as educational programs at summer camps.
Your daily tasks would include keeping campers safe, organizing games, and giving both educational and emotional support.
Summer camps come in different types, ranging from general adventure camps to specialized ones focusing on sports, arts, or science.
6. Freelance bookkeeping gigs
If you like numbers and you’re a teacher, online bookkeeping can be a way to spend your summer.
A bookkeeper is someone who assists in managing and tracking the financial aspects of a business. They usually keep records of sales, track expenses, and generate financial reports.
People with virtual bookkeeping jobs work from home, handling their responsibilities remotely. Virtual bookkeeping is a great choice for remote work as all tasks can be completed online or with computer software, eliminating the need to go into an office physically.
Recommended reading: How To Find Online Bookkeeping Jobs
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
7. Swim instructor
If you’re a teacher who loves the water, becoming a swim instructor for the summer could be the perfect seasonal job for you. Your educational background gives you the ability to communicate and manage classes, which are important skills for teaching swimming.
To find swim instructor jobs:
Look on websites like Craigslist or Facebook for listings, including summer-specific roles.
Check out local community centers, pools, and summer camps.
Networking can help, so let friends and professional contacts know you’re looking.
Another job similar to this would be to become a lifeguard at a local pool.
8. Tour guide for local attractions
As a teacher, your ability to tell stories and lead can be very useful for a summer job as a tour guide. Your skill in explaining things well makes you a great choice to share history and local stories with visitors.
Check out jobs at museums, historical places, or become an ambassador for your city by guiding people to discover hidden treasures.
9. Pet care jobs
If you’re a teacher who loves animals, you may want to look into summer jobs in pet care, like being a dog walker or pet sitter. Your caring skills can easily transition to taking good care of furry friends while students are on break.
Rover is a website that connects pet owners with pet sitters and dog walkers. You can choose to do this job on weekends throughout the year or only open your schedule during the summer months – it’s your choice.
Starting on Rover is simple – you create a profile sharing your experience with pets and the services you can offer, such as dog walking, pet sitting, and house sitting.
After that, customers will send you requests, and you can discuss pricing. Rover handles the payment process, and you’ll get paid directly into your account.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
10. Test prep instructor
As a teacher, your knowledge of academic subjects is very helpful, especially in the summer. Becoming a test prep instructor can be a great chance to help students in getting ready for their exams and earn extra money.
Test prep instructor jobs include subjects like math and English, and they cater to different education levels, from elementary school to college.
11. Sell your lesson plans
Teachers Pay Teachers (TPT) is a website made just for educators to buy and sell educational items, and it’s a well-liked side hustle for teachers. If you’ve created lesson plans, worksheets, or other teaching tools for your class, you can share them on TPT and make some extra income.
The school year may be over for you, but that doesn’t mean that you can’t create and sell lesson plans – these are bought year-round!
You can sell:
Lesson plans and unit studies
Worksheets and printable activities
PowerPoint presentations and interactive notebooks
Posters, charts, and visual aids
On Teachers Pay Teachers, the typical teacher can earn around an extra $300 to $500. However, some teachers make hundreds of thousands of dollars extra each year.
12. Coach a school sport
If you love sports and you’re a teacher, coaching a school sport during the summer might be a great match for your skills and interests.
Coaching a school sport is a great option within your own school district, as many schools need help with their sports teams. You can try coaching sports like soccer, basketball, volleyball, and track and field. Additionally, there are opportunities with after-school clubs such as yearbook, chess, choir, and more that can be a teacher’s side hustle.
13. Run a dog bakery
Beginning a dog bakery can be an enjoyable side job for teachers who adore both dogs and baking. By creating treats for dogs such as cupcakes, cookies, cakes, and more, you can earn an additional $500 to $1,000, or even more, each month.
Recommended reading: How I Make $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
14. Sell handmade goods on Etsy
Etsy is a popular online marketplace that connects makers and shoppers looking for unique handmade goods. If you’re a teacher with a creative side, this could be a great site for you to showcase and sell your crafts during the summer months.
Some examples of what you can sell on Etsy that are related to school include:
Educational games and activities
Educational materials like lesson planners and printable worksheets
Handcrafted classroom decorations or educational games
Personalized items such as bookmarks, nameplates, or tote bags
But, you don’t have to only sell teaching-related items. You can sell many other things such as furniture, clothing, jewelry, soap, home decor, and more.
15. Work at a restaurant
Many teachers work part-time or full-time at a restaurant during the summer as servers, hosts, bartenders, and kitchen staff.
Working in restaurants can fit teachers well since they have flexible hours that can match your open summer schedule, and you can leave the job easily once school resumes in the fall.
I know many, many people who have done this, and I would say this is one of the top summer jobs for teachers.
16. Proofread
As a teacher, you likely excel at proofreading and can easily catch mistakes. Using these skills, proofreading can be a fantastic side job. By proofreading, you can help authors, website owners, students, and others in their writing while earning extra income.
Even the best writers can overlook errors in grammar, punctuation, and spelling. That’s why having a proofreader can be helpful for nearly everyone.
You can usually set your own hours, which is perfect for the irregular schedules you might have.
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
17. House sit
House sitting is a good option for teachers looking to make extra income during the summer months because a lot of people take vacations in the summer. As a house sitter, you are typically responsible for maintaining someone’s home while they are away. This can include watering plants, collecting mail, and making sure the house remains secure.
People hire house sitters to make sure their homes aren’t left empty, as a visible presence can discourage potential thefts.
To begin house sitting, you can join house-sitting websites to find gigs in your area or ask for referrals from friends and family. Starting with people you know for house-sitting and then using their references can expand your job search.
18. Blog
Blogging can be an enjoyable way for you, as a teacher, to earn extra money from home. Many teachers run blogs, and it makes sense – you can blog when you have free time, without sticking to a strict schedule.
To start your blog, first, pick a topic you’re passionate about, maybe something related to your teaching field or a hobby you enjoy. There are plenty of different niche ideas such as personal finance, travel, food, home, pets, and so much more.
You can earn money as a blogger through ways like:
Affiliate marketing – Share links to products or services related to your blog topic and earn a commission for sales made through your referral links.
Advertising – Add display ads or sponsored posts on your blog.
Courses and ebooks – Create courses or ebooks in your expertise area and sell them through your blog.
Learn more at How To Start A Blog FREE Course.
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
19. Freelance writing
If you’re looking for remote summer jobs for teachers, then becoming a freelance writer can be a great option.
Freelance writers create content for blogs, websites, magazines, newspapers, advertising companies, and more. You can find writing jobs on platforms like Upwork and Fiverr. Also, you can find clients independently by reaching out to websites you are interested in writing for.
I have been a freelance writer for years, and it all started as a side hustle. This is a great side hustle because you can choose to work as much or as little as you want, such as if you are only looking to do freelance writing in the summer months when you are not teaching at a school.
Recommended reading: 14 Places To Find Beginner Freelance Writing Jobs
20. Transcribe
An online transcriptionist’s role involves listening to video or audio files and typing out the content they hear. Various types of transcriptionists exist, including legal, general, and medical transcriptionists.
This job demands solid typing and listening skills, and the flexibility to work from home on your schedule. Transcriptionists typically earn an average of $15 to $30 per hour.
This is another great side hustle because you can choose to work as much or as little as you want, such as if you are only looking to make extra money during the summer months.
I recommend signing up for FREE Workshop: Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.
Recommended reading: 18 Best Beginner Online Transcription Jobs 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.
21. Rent out an unused room in your home
If you have a spare room in your house, you might want to try renting it out over the summer. Platforms such as Airbnb or Vrbo make it easy for you.
I have rented out rooms to others in the past, and it has been a great way to make extra money. If you live in a touristy area, this could even be a gig that you only do in the summers and earn enough to cover your bills or at least pay for some of them.
22. Rent your garage space
If you have available storage space like a garage, driveway, closet, basement, or attic, you might consider renting it out to make extra money. This can be a profitable side hustle without requiring much of your spare time.
Neighbor is a platform where you can list your extra space for rent and potentially earn up to $15,000 per year.
This is a gig that may take up more than just your summer because typically people may store their stuff more long-term. But, you may find some people who only need to store things a few months at a time or perhaps you can also try to turn this into a year-round side hustle.
Recommended reading: Neighbor Review: Make Money Renting Your Storage Space
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You can use this website to list your unused space for rent and make up to $15,000 per year by doing so. With Neighbor, you can rent out your garage, driveway, basement, parking lot, shed, warehouse, carport, attic, street parking, or even a closet.
23. Teach English as a second language
If you’re a teacher looking for a seasonal opportunity, teaching English as a second language (ESL) during the summer can be a rewarding experience.
Many institutions are looking to hire for ESL teaching jobs, ranging from local schools to international language camps and online platforms. Here’s how you can get started and what you might expect:
Typically, ESL teachers need a bachelor’s degree and a teaching credential like TEFL (teaching English as a foreign language) certification. Some positions abroad might have additional requirements.
24. Answer online surveys
If you’re looking for a flexible way to earn extra cash during the summer, answering online surveys could be a great fit. Companies are always in search of genuine feedback to improve their products or services, and your opinions are valuable.
Now, this won’t be a full-time job, but you share your thoughts and can make extra money or free gift cards on your own schedule.
The survey companies I recommend are:
Swagbucks
User Interviews – These are the highest paying surveys with the average being around $60 for an hour of your time.
Branded Surveys
American Consumer Opinion
Pinecone Research
PrizeRebel
InboxDollars
Recommended reading: 18 Best Paid Survey Sites To Make $100+ Per Month
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User Interviews pays very well for market research studies and these are some of the highest paying online surveys, with each paying $50 to $100 or more. The average pays over $60.
25. Mystery shop
Companies hire mystery shoppers to gain insights into their customers’ experiences. They seek genuine opinions on products, feedback on customer treatment, evaluations of phone call interactions, and more. Mystery shoppers play a key role in providing valuable feedback to companies.
This is a great summer side hustle for teachers because you can simply pick up mystery shopping jobs when you need them. So, it’s completely okay and normal to only accept jobs during the summer.
Here’s what mystery shoppers do:
Visit businesses anonymously.
Complete specific tasks, such as purchasing a product or asking questions.
Record your observations.
Provide a detailed report on your experience.
I have done many secret shopping jobs over the years, and I often got mystery shops that provided me with $100 to cover a free dinner.
Recommended reading: How To Become A Mystery Shopper
26. Find gigs on Craigslist
Craigslist can be a goldmine for finding great summer jobs for teachers. It’s a site where individuals and businesses post quick jobs to make extra money.
You can find these gigs by going to the Craigslist website for your city or area. Right on the home page, you’ll spot a section labeled “Gigs.” This is where short-term job offers are posted, ranging from labor-intensive tasks to more skill-specific roles.
Here are some jobs I have found in the past on Craigslist:
Moving boxes to a new house
Deep cleaning a home
Putting together new furniture out of a box
Taking down a shed in a backyard
Handyman
Movie extra
Event parking help
27. Deliver groceries with Instacart
If you’re a teacher looking for flexible summer jobs for teachers, try delivering groceries with Instacart.
Grocery delivery services, like Instacart, are in demand as more people prefer having someone else do their grocery shopping.
Becoming a personal grocery shopper with services like Instacart can earn you an average of $15 to $20 per hour for delivering groceries. You’re paid per order, and you get to keep 100% of your tips. The flexibility allows teachers to choose their schedules, working in the evenings, on weekends, or even exclusively during the summer.
Recommended reading: Instacart Shopper Review: How much do Instacart Shoppers earn?
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Instacart is a popular website for people looking to earn extra money shopping for and delivering groceries. Instacart gives you the option to turn your free time into a chance to make some extra money.
28. Real estate agent
If you’re a teacher looking for a productive way to spend your summer months, you may consider becoming a real estate agent.
Some teachers work as real estate agents alongside their full-time teaching jobs. This is possible because you can list and sell homes during weekends, breaks, evenings, and over the summer.
However, selling homes may have some challenges, as clients may occasionally require your full attention during the day, and you might be occupied with teaching. This is something to consider before getting into real estate as a side job.
29. Virtual assistant
If you’re a teacher looking for a flexible summer job that pays well, becoming a virtual assistant (VA) could be a perfect fit. As a VA, you can use your organizational skills and attention to detail to help businesses and entrepreneurs from the comfort of your home.
Some examples of what a VA does include:
Email management – Keep inboxes organized and respond to emails on behalf of your clients.
Scheduling – Manage calendars, arrange meetings, and send reminders.
File organization – Keep digital files in order using online tools like Google Drive or Dropbox.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
30. Drive for Uber or Lyft
Driving for Uber or Lyft can give you a flexible way to earn money during your summer break.
You get to set your own hours and work as much or as little as you desire, meaning you can align this job with your summer plans.
31. Library assistant
As a teacher, your skills are a natural fit for a summer position as a library assistant. Libraries often seek additional staff during the summer months, providing a great opportunity for you to engage in a role that supports literacy and learning in a calm environment.
Your job may include doing things such as:
Organizing books – Keeping the library orderly and materials easy to access
Circulation desk duties – Checking books in and out for people
Helping library users – Helping visitors find books and resources, and answering inquiries
You can simply contact libraries near you to see if they are hiring.
32. Driver’s ed teacher
Teaching driving lessons to teenagers and adults is a popular side hustle for teachers. If you’re interested, you can check if the high school near you needs a teacher for this subject. Alternatively, reach out to a local driving school to inquire about potential teaching opportunities.
Driving instructors make around $20 an hour more or less, depending on where you live.
Back when I was in high school, I actually took my driver’s ed course at my high school in the summer. It was an easy summer credit, and I also got a discount on my car insurance. One of the teachers taught this course and it seemed fairly easy (other than having to deal with a bunch of us high school students over the summer who were wanting to learn how to drive, ha!).
33. Babysitting
Babysitting can be a side job for teachers, and depending on your location, you might earn around $15 to $25 per hour. Parents tend to prefer hiring teachers as babysitters due to their extensive experience with children.
Becoming a babysitter can be a great way to make extra money in the summer as well, as you can choose to sign up for babysitting jobs that are only during this time.
Plus, many families need extra help during the summer because school is not in session, but the parents still have to work. That is where you come in!
Another job similar to this would be elderly companion care.
Frequently Asked Questions
Below are answers to common questions about finding summer jobs for teachers.
Do teachers still make money during the summer?
Yes, many teachers do receive income during the summer, especially if their annual salary is distributed over 12 months. However, if you’re paid only for the months you work, looking for summer employment can supplement your income during this period. Not all teachers have summer gigs, but those who want to make income in addition to their teacher salaries may try to find something in the summer.
What is the best summer job for a teacher?
The best summer job for a teacher often capitalizes on their skill set. Positions like tutoring, educational program coordination, or teaching summer school are highly relevant options. Teachers might also consider roles in curriculum development or educational content creation.
What jobs exist for substitute teachers looking for summer employment?
Substitute teachers can find summer jobs in other educational roles, such as tutoring, mentoring, or working in summer camps. Many community centers and educational institutions also look for qualified professionals to lead summer workshops or help with childcare programs.
What are some summer jobs for teachers from home?
Teachers looking for summer jobs from home can find opportunities such as online tutoring or virtual summer school teaching. Other side gig ideas include writing content for websites, blogging, transcribing, and more.
Best Summer Jobs for Teachers – Summary
I hope you enjoyed this article on the best summer jobs for teachers.
As you can see, there are many ways to make extra money over your summer vacation.
Teachers have lots of options during the summer. They can stick with education by teaching summer school or tutoring. Or, they can try something new like being a camp counselor or giving local tours.
Teachers who like trying out new things might sell educational printables, sell things for profit, or sell services like pet care or freelance writing.
What do you think are the best jobs for teachers in the summer?
In the current mortgage landscape, ensuring the highest standards of loan quality is paramount not only during the origination process but also over the life of the loan. As the mortgage industry grapples with a changing market and regulatory complexities, we sat down with Amanda Phillips, Executive Vice President of Compliance at ACES Quality Management, to discuss how lenders can foster long-term success through a robust servicing QC process.
HousingWire:What were some of the challenges faced by lenders in 2023, and what is the outlook for 2024?
Amanda Phillips: 2023 was a year of trials and tribulations for financial institutions. Mortgage applications hit their lowest level since 1996, and lenders were faced with the compounding challenges of dwindling origination volume, soaring home prices, rising interest rates and inadequate housing inventory.
Thankfully, the tune of the housing industry has changed over the last few weeks. Analysts predict 2024 will bring a rise in mortgage origination volume and, potentially, several cuts to interest rate. While the challenge of low housing inventory persists across the country, I have a feeling loan officers will be busier. While the industry basks in the much-needed optimism for 2024, one thing is for certain, quality control (QC) and compliance are still important and worthy of lenders’ attention. An uptick in origination volume tends to bring an uptick in QC defects.
HW:Why is quality control (QC) crucial for lenders in the mortgage industry, and how can lenders maintain QC effectively?
AP: QC is crucial for lenders to ensure loan quality and mitigate risk. A well-rounded QC program can catch loan defects before regulators arrive for exam or investors send loans back for re-purchase. Operational capacity and the staggering cost to originate are challenges lenders will continue to face, leading many lenders to offset this hurdle by maintaining mortgage servicing rights (MSR). To maintain profitability through MSR, lenders also needa robust servicing QC program.
Maintaining QC begins with regularly assessing the integrity of both servicing portfolios and staff to ensure they adhere to all relevant servicing rules, guidelines and regulations. Fortunately, QC is a crucial area where lenders can see immediate returns from easy-to-implement audit and compliance technology. Lenders are advised to regularly review and update operational/compliance procedures and quality control frameworks, conduct self-assessments to test those updates, and, of course, remediate findings.
To mitigate and manage inherent servicing risks, your risk management team must identify your institution’s specific risk areas. From there, your internal audit team should ensure the proper processes and procedures are in place to address those risks. Subsequently, the QC team is responsible for verifying, from a transactional perspective, that your organization aligns its actions with its declarations and takes necessary measures regarding associated risks. Traditional methods, such as manual tracking and spreadsheets, make this process all the more prone to mistakes. This is why utilizing audit technology is so powerful; mistakes are significantly reduced, and efficiencies gained through less manual entry needed from the QC team.
The CFPB’s priorities signal the importance of self-assessment and remediation. Dot your I’s and cross your T’s with a paper trail. Lenders should review their in-house practices to ensure they meet the standard and compare with the recommendations from regulators.
HW:What role does the Consumer Financial Protection Bureau (CFPB) play in the mortgage servicing landscape, especially concerning compliance with the CARES Act and servicing regulations?
AP: The CFPB continues to emphasize compliance with the CARES Act and other servicing regulations, particularly in areas like fair lending, fair servicing, and forbearance. Over the last several years, they have clearly stated the priorities of fair lending and achieving equitable and fair housing programs. The CFPB has actively stated that strictly relying on artificial intelligence (AI) and automated complex credit models will not be tolerated. If a borrower was denied, the lender needs to be able to accurately speak to and explain why and how the decision was made.
This is just another area of how implementing a robust QC process can help lenders avoid these regulatory pitfalls. With audit technology, lenders will have this process documented and ready to pull up in the event of a regulatory audit or discrepancy.
HW:What steps should servicers take to identify and manage inherent servicing risks?
AP: Servicers should identify specific risk areas, establish proper processes, and conduct audits against policies and procedures. An example of a process improvement could be a Call Monitoring program. Consumer telephone interactions are an essential aspect of servicing that is easy to overlook from a quality perspective. No matter how many controls are in place, the need for human interaction, especially as it relates to collections and loss mitigation efforts, can result in an increased risk of non-compliance. Lenders can leverage a robust Call Monitoring program to identify where improvements are needed to protect the organization from regulatory and reputational risk. ACES Quality Management has a pre-built, configurable Call Monitoring audit pack that enables servicers to establish an additional layer of protection quickly and seamlessly within your QC program.
As financial institutions navigate the intricate web of compliance requirements and market fluctuations, ACES not only enables adherence to regulatory standards but it elevates the entire loan quality paradigm. By fostering a culture of continuous improvement while equipping professionals with powerful data-driven insights, ACES becomes an invaluable ally in mitigating risks and enhancing operational efficiency.
The significance of robust quality control and management in the mortgage sector cannot be overstated. In an environment where precision and compliance are non-negotiable, ACES stands as a testament to innovation and adaptability. For more tactical ways to improve QC, download ACES’ free playbook: Three Lines of Defense for Maintaining Servicing Loan Quality.
I’ve been in the real estate world since 2002 as an investor, agent, broker, and even author. Real estate has changed over the years but I still love it and still invest today. Over the years, I have learned many things and evolved from trying to rent and screen tenants based on gut feelings to developing systems that work much better!
Being a landlord can be rewarding, but navigating the world of rentals also comes with its share of challenges. To be successful and avoid unnecessary headaches, it’s crucial to avoid these common pitfalls.
Table of Contents – Top 5 Mistakes Landlords Make
1. Skipping Thorough Tenant Screening
Rushing to fill a vacancy almost always backfires. A proper screening process, including checking references, credit reports, and employment history, helps identify responsible tenants who are likely to pay rent on time and respect your property. Gut feelings are not the best way to choose tenants, even if they are friends or family, especially if they are friends or family! Don’t rush to rent a place to the first people who apply because you don’t have the time. If you don’t have the time, you should not be the one leasing the property.
I use DoorLoop for all of my tenant applications and screening. It makes managing background checks very easy.
You can read more about how I screen for tenants.
2. Neglecting the Lease Agreement
A clear, detailed lease agreement is what protects you when a dispute arises, including evictions. If you don’t have a lease or the right lease, it can make eviction take much longer and cost much more money. We try to avoid evictions but that is not always possible even with proper screening.
It must outline expectations, responsibilities, and procedures for rent payment, repairs, maintenance, and dispute resolution. Vague agreements lead to confusion and potential legal issues.
Either get a lease from a local attorney or use a high-quality online legal document generation tool. I use Legaltemplates.com. Using a local real estate attorney will be helpful in case a dispute arises later.
See my tips for the best ways to manage rental properties.
3. Ignoring Maintenance Issues
Ignoring leaky faucets, malfunctioning appliances, or minor repairs can snowball into bigger problems down the line. Prompt maintenance not only keeps tenants happy but also prevents costly damage and potential legal action. You cannot rely on your tenants to tell you about every issue. It is also important to schedule regular inspections to see if there are any major issues in the property and that the tenants are taking care of it.
See my article on how to find contractors for house flips and rentals.
4. Setting Unrealistic Rent Prices
Overpricing your property can lead to long vacancies and lost income. Research fair market rents in your area and consider factors like amenities, location, and condition before setting a price. Remember that asking price for other rentals is not always the best way to gauge market value. Those properties could be for rent for months and overpriced. Pay attention to the market to see which ones are being rented and which ones are sitting.
Zillow provides fairly accurate rent estimates (rent is easier to estimate than value).
Once you have an idea of market rent, you can use my Rental Property Cash Flow Calculator to understand your financials.
5. Failing to Communicate Effectively
Communication is key to a healthy landlord-tenant relationship. Be professional, responsive, and address concerns promptly. Ignoring tenant issues or being dismissive can create frustration and escalate into bigger problems. Ignoring tenants can also get you in trouble with the city or county where you reside.
I don’t personally deal directly with issues. I instead chose a great property manager to ensure communication is open and issues are handled promptly. They typically charge a percentage fee, which I simply build into my expenses.
Read my article on how to find a great property manager.
Conclusion
By avoiding these common mistakes, you can create a positive rental experience for both yourself and your tenants, leading to a smoother, more profitable investment.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Master self-employment taxes and avoid common tax mistakes with expert strategies for managing your finances year-round.
How do self-employed taxes work? What are some common tax mistakes self-employed people make? And can you really write off payments on a luxury vehicle if you use it for work purposes? Hosts Sean Pyles and Elizabeth Ayoola discuss the intricacies of self-employment taxes and strategies for financial success and IRS compliance to help you understand how to navigate tax season as an independent worker.
CPA and financial strategist Krystal Todd joins them to delve further into the details of self-employment taxes, with tips and tricks on budgeting for personal and professional life, the importance of making quarterly tax payments, and whether to DIY taxes or hire a professional. They also discuss strategies like depreciating assets, the benefits of hiring family members, and navigating the complexities of tax deductions.
Plus: financial strategies for handling unexpected income and managing self-employment taxes, the importance of setting aside funds for unexpected expenses, and the advantages of timing revenue recognition and prepaying expenses for tax benefits.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
As Ben Franklin himself said, in this world, nothing is certain except death and taxes. Taxes, as we all know, can be wildly confusing, and that goes double when an employer isn’t there to help.
Krystal Todd:
We need quarterly payments just of you estimating how much you think you’ll be paying in taxes, and then at the end of the year when you actually file your taxes, they’ll make adjustments based on whatever credits and deductions you’re eligible for, what you’ve already paid, and then you’ll see what you net.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Elizabeth Ayoola:
And I’m Elizabeth Ayoola.
Sean Pyles:
Today we bring you episode two of our nerdy deep dive into self-employment. In our last episode, we talked about the importance of budgeting when you’re working for yourself. Obviously here at Smart Money we think it’s a good idea for everyone to budget, but especially if you’re self-employed, you’re going to need to budget for both your personal life and your professional life.
So in this episode, we’re going to answer the most important tax questions self-employed people have, like how do self-employed taxes even work? Is it better to DIY your taxes or hire a pro? And can you really write off payments on a luxury vehicle if you use it for work purposes? Welcome to tax season.
Elizabeth Ayoola:
Womp womp. My favorite part of tax season is when it’s over. Thankfully, I’m getting better at taxes every year and I’m also learning to outsource. Shout out to my tax person. Anyways, yes, it’s February and it’s tax time for all of us. And if you’re a gig worker, freelancer, contractor, or other solo entrepreneur, you need to make sure that you’re doing all the heavy lifting an employer would usually do for you. And you have to do that to avoid mistakes and IRS penalties. Hopefully those who aren’t new to self-employment have withheld enough quarterly taxes throughout the year so they’re not hit with an IRS penalty. New listeners who are about to dip their toes into self-employment are about to learn about how self-employed taxes work.
Sean Pyles:
Yeah, that is no bueno. I know people who, when they started freelancing, had no idea that they were supposed to be paying taxes all year long quarterly instead of saving up for a big payment at the end of the year. The IRS does not look kindly on that, even if it ends up that you overpaid. And by people here, I am absolutely referring to myself because I once found myself in a world of tax hurt back when I was a contractor, and that is a lesson I shall not soon forget.
Elizabeth Ayoola:
It’s good to know I’m not alone, Sean, because I’ve been there too and it wasn’t fine.
Sean Pyles:
Elizabeth Ayoola:
It hurts. It’s a heartbreak.
Sean Pyles:
All right, well, we want to hear what you think too, listeners. To share your ideas and questions around self-employment with us, leave us a voicemail or text the Nerd Hotline at 901-730-6373. That’s 901-730-NERD. Or email a voice memo to [email protected].
So Elizabeth, who are we hearing from today?
Elizabeth Ayoola:
Today we’re going to be chatting with Krystal Todd. She happens to be a certified public accountant, a financial strategist, a money mentor and an entrepreneur. Her resume puts her in a good position to give us the juicy details we need on self-employed taxes.
Sean Pyles:
That’s coming up in a moment. Stay with us.
Elizabeth Ayoola:
Hi Krystal. Thank you for coming onto the podcast.
Krystal Todd:
Yes, thank you so much for having me. Really excited to talk taxes. This is my bread and butter. I love talking about anything money, really.
Elizabeth Ayoola:
No, I’m with you. I’m not going to lie, I do not love taxes, but I do love to understand taxes because I don’t want to pay the IRS more than I have to pay them.
Krystal Todd:
Oh, no. That’s why I’m here.
Elizabeth Ayoola:
Another tax year is upon us, and I think this information is going to be super helpful. So with that said, I’m going to jump straight into the first question I have for you, which is how do self-employed taxes work? And I know this is a big question, but I know I learned the hard way about self-employed taxes and I learned that they’re higher than what you pay when you’re working a traditional job with an employer.
So I want you to tell us why self-employed taxes are higher, especially when the government seems to provide so many incentives for small business owners.
Krystal Todd:
So it’s a double whammy because not only is it higher because we’re paying both sides of the employer tax, but we also have to pay it ourselves. So if you’re coming from a W-2 world into self-employment world, normally in W-2 world, it’s all handled for you. The biggest difference is that you’re having to have full control over paying your taxes, paying quarterly, whereas a W-2, you’re paying every paycheck. It doesn’t feel like that, but that’s what’s going on. And then the self-employment tax. So typically with your W-2 employee, you’ll pay half that piece and then your employer pays half of it, but because you’re self-employed, you are the employee and the employer, so you’re paying 15% in taxes.
Elizabeth Ayoola:
That 15%, I remember the first time I saw it and whipped out my calculator and I was like, “Wait, what? This was a chunk of money.” So I was a little unpleasantly shocked by that number.
Krystal Todd:
Yeah, there is a way to get around it.
Elizabeth Ayoola:
Tell me, tell me.
Krystal Todd:
If you’re just starting out, maybe it wouldn’t be most beneficial. It does depend, and of course you have to always throw a disclaimer out there. Everyone’s situation is different. I’m a CPA, but not your personal CPA, so take everything I’m saying as little seeds of wisdom to go research.
When you’re first starting out, maybe you don’t have your EIN, which is just basically your social security for your business, employee identification number. So it’s like your social security number but for your business, because businesses are their own entity. But when you’re first starting out, maybe you’re not doing all of that. So if you’re in the sole proprietor category, which means you’re just working for yourself, you hired yourself, maybe the next level up is LLC, limited liability company. So you’ve gone ahead and filed for that LLC so you have some protection, but you’re still going to be paying a lot of taxes.
It’s not until you get into the S Corp. And of course there’s a couple of qualifications there, but once you get into S Corp, you can actually pay yourself as a W-2 employee in your business. And then that’s how you circumvent that self-employed tax because even though it’s your business, you’re an employee of the business so it looks like a W-2. And the benefit of that too is especially if you’re self-employed, and I know some people have felt me on this, if you’re trying to get a loan for a car, once they see you’re self-employed, guns are blazing, right? They’re ready to ask you all types of questions. You have to provide so much information. As an S Corp, if you’re paying yourself, you’re going to receive a W-2 from your business so they don’t have to know it’s your business. They just see W-2 and no questions asked. There are some benefits to having an S Corp for sure.
Elizabeth Ayoola:
By the way, for everyone listening, we’re going to go a lot deeper into the different business structures in a subsequent episode, so don’t worry. We’re going to touch on that some more.
So now back to taxes. I know estimated taxes are something that I now do. Didn’t do before, but I remember when I was first researching self-employment taxes, that came up a lot. But I thought, “Hey, I can just pay it in one lump sum,” and I didn’t really dig deeper to read all of the fine details. Can you explain to us what estimated taxes are and how exactly it worked?
Krystal Todd:
Of course. So as I mentioned previously, as a W-2 employee, you’re paying taxes every single pay period. So you don’t necessarily have to worry about that, but as a self-employed individual, you’re not paying any taxes. So what the government has said is, “You’re not off the hook.” You’re not going to pay just one time at the end of the year. We need quarterly payments just of you estimating how much you think you’ll be paying in taxes, and then at the end of the year when you actually file your taxes, they’ll make adjustments based on whatever credits and deductions you’re eligible for, what you’ve already paid, and then you’ll see what you net.
So it’s crucial to pay quarterly taxes, and you can use things out there that help you track your expenses and your income and can even help you calculate that too, so you don’t have to necessarily do it all on your own.
Elizabeth Ayoola:
Absolutely. So tell us, when are the self-employed taxes due and what happens if you don’t pay them?
Krystal Todd:
Yes, they’re quarterly. If you don’t pay them quarterly or they realize that you haven’t paid enough, you will get fined. You don’t have to end up in jail if it was a legitimate accident, so you’ll be fine, but you will get penalized and it can be a little costly. So definitely make sure that you are just getting that done ahead of time. It’s a fresh new year, so new opportunities to make sure we’re staying on target.
Elizabeth Ayoola:
Yes. And for those who maybe are listening and unfortunately missed out on paying quarterly taxes and maybe in April are going to end up being hit with a bill, are there any options in terms of how they can pay it if they don’t have that lump sum cash?
Krystal Todd:
It depends on your situation. Sometimes the IRS will say, “No, you need to make this payment,” and sometimes they’ll work with you depending on the amount. So it does depend on your circumstances.
Elizabeth Ayoola:
What was this I heard about that you can sometimes do a payment plan with the IRS. So is this true?
Krystal Todd:
Yeah, no, it’s true. It’s true. I think it just depends on, like I said, your circumstances. Maybe there’s situations where if you had issues before, they’re a little bit more strict on you, but you can make payments.
Elizabeth Ayoola:
So now we want to get into the mistakes so other people can learn from those mistakes. So what are some common mistakes that you see clients make when it comes to paying their self-employed taxes? So for me, for example, I just wasn’t good at bookkeeping initially. I had my money in too many different accounts, so it was overwhelming when tax season came around to see what my deductions were and just basically my income. So as a CPA, tell us maybe two or three common mistakes you see people make.
Krystal Todd:
The common mistake by far is not making sure that they’re taking all the deductions and credits that they’re actually eligible for. So ultimately, a lot of people will think about taxes as a January through April situation, but it’s a year-round thing. Tax planning is almost more important than actually tax preparation. You want to think about the whole year and ways you can save money, different things you could probably invest in to bring your taxes down. So missing out on tax planning and then trying to just rush everything towards the end of the year is by far the biggest mistake. I’ll see people scrambling for receipts, looking back, and a lot of times if you’re just starting out, typically maybe they won’t have a separate business account as well.
Depreciation is the biggest one that I think people miss out on, not only for things like Airbnb in your home, but also your car. If you’re doing Uber or Lyft, you can get credit for the wear and tear on your car. If you have a computer or any devices that you have, those things are also depreciable or you can actually fully deduct them in certain cases. I definitely think that you should be empowered and doing it yourself, but if your taxes are getting complicated, you’d want to make sure that you’re leaning on a tax professional who will catch those expenses because a lot of people are paying too much.
Elizabeth Ayoola:
Thanks for sharing all of those incredible ways that people can reduce their taxes. Can you tell me about some other deductions or ways that people can reduce their self-employed taxes?
Krystal Todd:
Yeah, so a really neat one is making sure you hire your family in any capacity that you can. Now, of course, there’s some caveats here. You have to make sure you’re paying them a reasonable wage. So if they’re just an administrator, you can’t pay them multiple six figures. It has to be reasonable, but to the extent that it’s reasonable, you can actually hire them on. And I especially love this with kids.
So as an example of my own life, I hire my daughter and she’ll help me with my videos, she’ll help me with setup. She helps me with product development, and she’s been featured in a few of my videos online. So I will pay her. She’s a 1099 worker, so it’s not a W-2, so it’s simple. I just have to give her a check, and what I love about that is that I get to reduce my taxes, and this is more like W-2, but either way, we all get a standard deduction.
If I pay my child up to the standard deduction amount, which was just a little over $13,000 for 2023. If I pay her $13,000, I get to reduce my taxable income by that same $13,000. She pays no taxes on it because of the standard deduction, which basically is the IRS giving you some credits for having a kid or just whatever else is happening in life. They say, “Here’s just one flat rate. You just take that.” So she doesn’t pay taxes on that, and then I can put it into a custodial IRA for her and it’ll grow tax-free because it’s Roth. You’re saving money, they’re not paying any taxes, I mean, that’s a really good tax loophole there.
Elizabeth Ayoola:
For sure, for sure. And speaking of which, since we’re on the topic of deductions, I know sometimes people go a little over the top with these deductions, forgetting that the IRS does audit people. I know recently I’ve seen something floating around on social media about being able to buy a Mercedes Benz, also known as G-Wagon, and write it off using your taxes. And the rules for this are really complicated, so make sure to work with the CPA if you’re thinking about doing it. So is this true? And if it is, what is the catch?
Krystal Todd:
There are some caveats. It must be used in business. You can’t just buy a G-Wagon, you never drive in it. If you’re a realtor, for example, that might make sense. You have an image. If you’re a realtor, you’re selling million-dollar homes, you want to look the part. That might make sense. But if you’re a content creator working at home, you never go in the car to do anything, you cannot do that. In the eyes of the IRS that is illegal, so you have to make sure that it’s being used for business use. It doesn’t have to be exclusively, but if it is half business, half personal, you’ll have to adjust your taxes to account for that.
Elizabeth Ayoola:
So sorry to get into the nitty-gritty, but when you say business use, someone might say, “Oh, I have a meeting, I don’t know, once a month, and I’m driving it to my meeting.” A content creator. Does the IRS get into the details of how frequently you’re using the car?
Krystal Todd:
Yes, and the location. So if you’re driving from your home to a meeting, that doesn’t count. It’s only if you’re going from, let’s say, your primary job to your second job. Then that could actually be considered a deductible expense. So yeah, they’re very particular about what you’re using it for, where you’re driving from, and if you get audited, you better be prepared.
Elizabeth Ayoola:
So can you tell us, on that note, some major red flags or even myths that you hear of when it comes to tax deductions?
Krystal Todd:
Yes. I think that people think they could just deduct anything because it’s eligible. The government makes you go through hoops, especially after the Tax Cuts and Jobs Act where the standard deduction was doubled. They’re really trying hard to make you just take the standard deduction and just take that and go.
If you’re saying, “No, I’ve had more than $13,000 worth of expenses,” you might have. That doesn’t mean they’re all going to be eligible. So for example, for health costs that you’ve spent, maybe you spent $10,000 in health expenses for this year, but the government does not give you dollar for dollar, and if you take that, it has to be itemized. So you might do all this work trying to itemize your deductions and you were better off taking the standard deduction because they make you go through a lot of different hoops. There’s percentages, there’s phase-outs if you’re making a certain amount of money. So it’s super, super nuanced, and just circling back to what we talked about earlier as far as DIY goes, if you’re in that situation, unless you’re going to really put the effort into research, you probably are better off just getting someone who already has done this before and they’re comfortable with it because of all those different nuanced requirements that they have.
Elizabeth Ayoola:
So in the spirit of… Well, I don’t want to say in the spirit of getting audited because I don’t think anyone wants to get audited, but just in case, give us some bookkeeping tips. I’m still refining my bookkeeping because it’s just not my strong area, but what are some bookkeeping tips so that if the IRS comes knocking, people are ready?
Krystal Todd:
I strongly suggest getting software. If you have a software, you’re able to attach receipts directly to it. They’ll organize it for you. If you’re not someone who’s too familiar with income statements and cash flows and all of that, they prepare those documents for you. That by far has dramatically changed my business. And also having separate accounts. You can’t even imagine how many people will dig through their personal account looking for business expenses. Even if you’re just starting out, from the decision you’ve made to take this business seriously, please get your EIN so you can open up your business bank account, and that way everything is just flowing through one account. Lean on these different tools that will organize it for you and just be sure to keep receipts.
I would say you should be at least monthly. All these billion-dollar corporations, I mean, they’re doing things very frequently, but every single month we are balancing the books, we are going over our expenses and then we’re tax planning. So many people wait until the end of the year and then it just becomes a hassle. So to the extent that you can, get it done monthly. That is the best advice I have so you’re not stressing yourself out during these times.
Elizabeth Ayoola:
We’re in a very tech-savvy age, so how are digital receipts? So every time maybe you make a purchase or whatever, just keeping a digital file of your stuff.
Krystal Todd:
Yes, absolutely. And let’s say maybe you’re not ready for the software. That’s what I was doing when I first started out and I wasn’t too sure. Just a simple folder in your computer would work. Document everything in the moment as it happens, that way nothing is slipping through the cracks and you should be in good shape.
Elizabeth Ayoola:
So the last question I have, because in this series we’re trying to cover people who also have how they can manage your finances when they have inconsistent income. So for someone who has inconsistent income throughout the year, maybe they don’t make as much during the beginning of the year, but let’s say halfway through the year they land a huge contract.
How do they budget then for self-employed taxes or estimated taxes, rather? Because I know that’s based on how much you think you’re going to make, but you don’t always know. So maybe you’ve been underpaying for the first half of the year and then the end of the year comes. How do you manage that?
Krystal Todd:
I always say be as conservative as possible. It’s kind of like a dual opinion I have here because on one end, you don’t want to give the government an interest-free loan. That’s essentially what you’re doing when you get a tax refund. But on the other end, you also don’t want to deal with owing money, maybe being penalized and then having to pay that next year. So to the extent that you can, I would say be as conservative as possible when it comes to paying your taxes. Again, there’s different software that’ll help you establish what you should be paying. When you get that windfall, you weren’t really expecting it, right? So I like to live off of my most conservative amount of money.
So let’s say maybe it’s $10,000 a month. If I made $20,000 a month, I will ignore that $10,000 and put it to the side just because you’ll have that extra cushion to keep you protected in the event that you have a windfall you don’t expect. That happened to me last year, actually. I had quite the windfall and I wasn’t expecting it, but I had practiced what I preach and I had some money to the side, so it was okay. So whenever you get those large sums of money, pretend like you didn’t. Just live conservatively and then once a year is done, once you calculate your taxes and you pay it, then you can enjoy the rest. So it’s delayed gratification.
Elizabeth Ayoola:
Oh, I like that as a way of looking at it. And one day when I was complaining about my taxes, I remember someone saying, “The brighter side of that is that you made more money.” So we welcome a windfall, we just have to prepare for those windfalls.
Krystal Todd:
This is a little bit more technical, but something that I love because this again happened to me last year. Let’s say seasonality is something that your company is affected by. Maybe you get a big windfall of purchases or something at the end of the year. In certain circumstances, it might be best to ask them to pay you next year, right?
If you are a cash-basis type of accounting, you won’t get taxed unless you actually receive the money. So maybe you did make that revenue, but if you can have it pushed off to the next year because you didn’t expect that windfall and you don’t want to necessarily deal with the influx of the money you have to pay for those taxes, maybe you can have your customers pay you January 1st or January 2nd. That way you’re not going to be affected by that surprise, and that’s 100% legal. You can delay that or you can bring forward some expenses too.
This only works if, again, you are a cash basis, but if you want to pay something off for the whole year, you’ll be able to deduct that even if the whole year hasn’t actually happened yet. So there’s different ways towards the end of the year to try to get some last minute things in just to further insulate yourself.
Elizabeth Ayoola:
Love that. Those are some really, really good tips and a reminder of why it’s good to talk to CPAs. Do you have any final words of wisdom or anything that people might not be thinking about relating to self-employed taxes that you want to share?
Krystal Todd:
Yes. You are the driver. A lot of times people will shy away from it because it is intimidating, but in the age of information that we’re in right now, there is an influx of free information online. This is an example of one of them. Don’t be paralyzed by fear. Really lean into it because the difference between small business, and I really don’t use that word lightly because no matter if you’re small or big, you have to do the same exact stuff. So why even identify with your revenue or the size of your company? But a business is a business, and these larger companies become larger because they are hands-on and they’re very proactive with how they’re managing their money.
So I suggest that you do so too and do not be afraid of delegation. I, in other areas of life, have not delegated, and that is what comes back to haunt you. So you don’t have to do it all on your own. There are free resources, there are paid resources. Definitely make sure you’re just taking advantage of what you can take advantage of and you’re planning so that you can not be surprised with tax bills at the end of the year.
Elizabeth Ayoola:
Yes, absolutely. Echoing what Krystal said, you do not have to do it alone, and that is something that has made taxes a lot less daunting for me. Thank you, thank you, thank you, Krystal. This was so informative. I have learned so many new things that I’m going to apply when it comes time to do my self-employed taxes, so thank you. Thank you for coming.
Krystal Todd:
You’re so welcome. Thank you for having me, and good luck everybody in this tax season.
Sean Pyles:
Elizabeth, I never thought I’d say this, but that was actually a super interesting conversation about taxes. I am someone who was a planner in all aspects of my life, and like Krystal said, planning ahead with your taxes is so key whether you’re finding deductions, hiring your family, or making quarterly tax payments, but also there is a big difference between planning and scheming. I’m so glad that you guys talked about that viral G-Wagon tax hack because I have seen that so many times on TikTok. I have been really worried about people getting themselves into a world of trouble with their taxes.
Elizabeth Ayoola:
I’m telling you, on the journey of self-employment, I have realized that there are some things that are not too good to be true, but other things are too good to be true, and I think that’s one of them.
So while taxes can be a snooze fest, I think learning about ways to save and avoid penalties will always grab my attention. I love all the tax saving strategies that Krystal shared, and also the deduction red flags to look out for. I mean, for me, this episode was also a reminder about how important it is to talk to a tax professional who has extensive knowledge, and that’s even if you’re a DIY type person.
I feel more confident about filing my self-employed taxes now because of all the information we just got. But Sean, before we go, I do want to mention one development that we didn’t address with Krystal.
Sean Pyles:
What is that?
Elizabeth Ayoola:
Well, starting this year, there’s a new law called the Corporate Transparency Act. And what that says is that anyone with an official business designation, especially a one or two-person LLC, is going to want to be aware of.
This is an effort to stem money laundering and tax evasion in the small business category, and basically you have to file some extra paperwork with the Treasury Department called a Beneficial Ownership Information Report. If you don’t do that, you could be fined $500 and possibly get up to two years jail time, and don’t nobody want two years jail time.
Sean Pyles:
Elizabeth Ayoola:
Nobody. So definitely talk to your tax accountant and or your business attorney about that.
Sean Pyles:
Yourself included, Elizabeth. I do not want you to go to jail, so please get this done.
Well, thanks for that information. Elizabeth, please tell us what’s coming up in episode three of this series.
Elizabeth Ayoola:
Sean, we are all about getting to retirement here on Smart Money, but saving for it can often be an extra challenge when you are self-employed. We’re going to walk listeners through their options and how to make sure you’re planning for the future, even while you’re going into business for yourself.
Ayesha Selden:
If I can get to 10%, a double-digit percentage of my pay, of my gross pay, my pre-tax pay, I’m in the right ballpark. If you are self-employed, then the onus is on you, of course, to put in everything into your own personal retirement plan.
Elizabeth Ayoola:
For now, that’s all we have for this episode. Do you have a money question of your own? If you do, turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. You can also visit nerdwallet.com/podcast for more information on this particular episode. And remember to follow, rate, and review us wherever you’re getting this podcast.
Sean Pyles:
This episode was produced by Tess Vigeland. I helped with editing, Courtney Neidel helped with fact checking, Sara Brink mixed our audio, and a big thank you to NerdWallet’s editors for all their help.
Elizabeth Ayoola:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes, and it may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Are you thinking about downsizing your home? Whether you’re an empty nester looking for a more manageable lifestyle or starting a family and seeking a change, transitioning from owning a house to renting an apartment can offer a ton of benefits. In this guide, we’ll answer the question of how to downsize your home, from decluttering and preparing for the move to finding the perfect apartment and making it feel like home.
Know your why: understanding the motivation behind downsizing
Before setting off on the downsizing journey, it’s important to understand why you want to make this change. There are plenty of reasons why homeowners choose to downsize, like retiring, embracing a minimalist lifestyle, saving money or moving to a smaller house in a new city. By keeping your motivation in mind, you’ll be better equipped to navigate the challenges that come with figuring out how to downsize your home.
Embracing the positives of downsizing
Downsizing your home doesn’t have to be viewed as a loss. Instead, focus on the positives that come with this transition. Consider the financial benefits, like lower mortgage payments, property taxes and maintenance costs. Downsizing can also offer newfound freedom and flexibility, allowing you to pursue other interests and experiences. By shifting your mindset and embracing the advantages, you’ll be more prepared to downsize successfully.
Planning the move in advance
To make the moving process easier, make sure downsizing your belongings ahead of time is on your to do list. This includes not only getting rid of unnecessary items but also evaluating your furniture and larger possessions. Determine what will fit into your new apartment and what you can live without. By downsizing your stuff before the move, you’ll have a clearer idea of what to expect and can make the transition to a smaller area more seamless by finding ways to save space while you save money.
Buying vs. renting: determining the best option for you
Once you’ve decluttered and prepared for the move, it’s essential to decide whether buying or renting an apartment is the right choice for you. Owning a home offers long-term stability, but it also comes with additional costs like mortgages, insurance and maintenance. On the other hand, renting provides flexibility and fewer responsibilities. Consider your financial situation, lifestyle preferences, and long-term plans to make an informed decision.
Hidden costs
When downsizing from a house to an apartment, it’s crucial to be aware of the hidden costs that might not be immediately apparent. Moving expenses, like hiring movers, purchasing packing supplies and potentially paying for a storage unit, can add up quickly.
While the apartment’s rent might seem more affordable compared to a mortgage, you have to consider the security deposit, pet fees, parking fees and any amenity fees that apartments often charge for extras like a personal on-site storage unit. These costs can significantly impact your budget, making it important to thoroughly research and factor these expenses into your financial planning.
If your new apartment requires any furnishings or renovations to make the space work for you, these are additional costs that need to be considered ahead of the move.
Utility bills
Utility bills in an apartment can differ significantly from those in a house, often leading to significant savings. Apartments typically have small rooms and less square footage than houses, which can result in lower heating and cooling costs. Many apartments offer utilities included in the rent, like water and trash services, which can simplify monthly budgeting and potentially save money.
It’s important to understand exactly what utilities are covered and what you’re responsible for paying. Some buildings may have less efficient HVAC systems or lack individual unit controls, leading to higher electricity or gas bills than expected. Researching and asking for average utility costs from the apartment management can provide a clearer picture of your monthly expenses.
Finding the perfect apartment
When searching for an apartment, it’s important to consider your specific requirements and preferences. Think about the location, amenities and size that will best suit your needs. If outdoor spaces or certain amenities are essential to you, prioritize only those things first in your search.
Consider potential future needs, like extra storage space, square footage for expanding your family or large windows for natural light. By carefully evaluating these factors, you’ll find an apartment that aligns with your downsizing goals.
Multipurpose rooms
Adapting to small rooms when moving from a house to an apartment requires creative use of space, making a multipurpose room not just a great idea, but often a necessity. A living room or guest room can double as a home office or a dining area with the right furniture and layout.
Investing in versatile furniture pieces, like a sofa bed, floating shelves, extendable dining tables or a functional storage unit, can maximize versatility without sacrificing style or comfort. Using room dividers or open shelving units for storage areas can help delineate spaces for different uses while keeping the apartment feeling open and airy. The key is to prioritize what functions are most important and design the new space around those needs, ensuring that every inch of your apartment works hard for your lifestyle.
Reviewing lease agreements and moving in
Before finalizing the lease agreement, thoroughly review all the terms and conditions. Pay attention to the rent price, security deposit, utilities and any maintenance policies.
Ensure that everything is as agreed upon and ask any necessary questions. Once you’re ready to move into your current home, you may choose to hire professional movers or handle the move yourself. Whichever option you choose, make sure you’re well-prepared and organized for a smooth transition.
Making your apartment feel like home
Once you’ve moved into your new apartment, it’s time to make it feel like home. Furnishing and decorating a smaller space requires careful consideration. Focus on selecting furniture that fits the apartment’s dimensions and serves multiple purposes in one room. Measure the rooms and furniture to ensure a proper fit. Personalize your space with colors, textures and accessories that reflect your style and create a warm and inviting atmosphere.
Decluttering
Decluttering is a critical step in downsizing from a house to an apartment. It involves carefully evaluating your possessions to decide what truly adds value to your life. Luckily, it also results in less stuff and, often, extra cash. This process not only makes the move easier and potentially cheaper but also helps in adapting to a smaller home.
Start by categorizing items into what to keep, sell at a garage sale, donate, get rid of or discard. Be realistic about the space limitations of your new apartment and prioritize items that are necessary or hold significant emotional value. Decluttering can be an emotional process, but a yard sale also offers an opportunity to refresh and simplify your lifestyle, making your new apartment feel spacious and organized.
Professional organizers
Hiring a professional organizer can be a worthwhile investment when downsizing to an apartment. These experts can offer invaluable advice and tips on how to efficiently use your new, smaller space, suggest ways to reduce clutter, and help you decide what to keep, donate or dispose of. They can also assist with the physical aspects of decluttering and organizing before the move, making the transition to a smaller home smoother and less stressful.
While the cost of hiring a professional organizer may seem like an unnecessary additional expense, their expertise can save you time and money in the long run by helping you avoid mistakes and make the most out of your new living situation. Their services can be particularly beneficial for those who are overwhelmed by the downsizing process or unsure where to start.
Embracing a minimalist lifestyle
Downsizing your home provides an opportunity to embrace a minimalist lifestyle. Prioritize what truly matters to you and let go of excess possessions. Adopting minimalist principles will not only help you maintain a clutter-free environment but also promote a sense of peace and simplicity. By using storage spaces, focusing on quality over quantity and reducing material possessions, you can create a space that feels spacious and organized.
Managing the transition and settling in
Transitioning from owning a house to renting an apartment may come with some emotional challenges. It’s important to be patient with yourself and allow time to adjust to the new space.
Take advantage of the amenities and community offered by your apartment complex to connect with neighbors and feel a sense of belonging. As you settle into your new, smaller home together, you’ll discover the benefits of downsizing and enjoy the freedom it brings.
You can live large with fewer square feet
Downsizing to a smaller home can be a transformative experience. By understanding your motivation, decluttering your belongings and carefully considering your options for your new small space, you can successfully navigate this transition.
Embrace the positives of downsizing, find the perfect apartment and create a space that reflects your style and values. With the right mindset and preparation, downsizing can lead to a simpler, more fulfilling lifestyle.
Looking for the best fun jobs that pay well? Many people dream of having a job they love that also pays well. I completely get it – you don’t want to hate working a job that you’ll be at 40 hours a week! I’m very grateful to have a job that I love. I don’t…
Looking for the best fun jobs that pay well?
Many people dream of having a job they love that also pays well. I completely get it – you don’t want to hate working a job that you’ll be at 40 hours a week!
I’m very grateful to have a job that I love. I don’t dread any day of the week, and I genuinely love what I do. Due to that, I hope everyone gets to feel the same about their job as well.
Thankfully, it’s easy to find a job that lets you do what you enjoy and still pays you a good paycheck. Whether you love working online or driving fast cars, there are many job options that let you have fun while also making good money.
Whether you want to make extra income or find a full-time job, there are many fun jobs that pay well that may interest you.
Fun Jobs That Pay Well
When you’re looking for a job, it’s great to find one that you find fun and that also pays well. Here are some top choices to start with:
Bloggers work from anywhere and write about topics such as family, recipes, personal finance, travel, and more. This is what I do, and I think it’s a ton of fun. Plus, it pays very well!
Art therapists use creativity to help others. They draw or paint as a way to support people’s emotional health. This job requires a master’s degree, but it combines art with helping people, which can be very rewarding.
A Ferrari driving instructor teaches others how to drive a luxury sports car. It’s not just exciting; it can also pay between $90,000 and $120,000 a year.
If you like spotting mistakes in content, then finding a proofreading job may be perfect for you. Proofreaders act like an extra set of eyes to read articles, papers, books, ads, and other written content.
Below are over 40 other fun jobs that pay well that I recommend learning more about.
1. Blogger
If you want to find a fun job that pays well, my favorite way is to start a blog. That’s exactly what I do for a living!
A blog is content written on a website. It usually includes articles like what you’re reading here.
You can blog about something you’re passionate about or something you know a lot about. Or even a topic you want to learn more about (people love following others’ firsthand journeys!).
I began Making Sense of Cents in 2011, and since then, my blog has earned me over $5,000,000 over the years.
I started my blog on a whim to share my own money journey. At first, I didn’t even know people could earn money from blogs or how to make a successful one. And now, it’s my full-time job!
There are many ways to make money blogging such as:
Advertising revenue (banner ads that you see in blog posts)
Sponsored blog posts (when a blogger partners with a company to promote a specific item or company)
Affiliate marketing (when a blogger receives income for referring readers to a product)
Selling digital products or services (such as courses, clothing, books, and more)
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Printables designer
Making and selling printables can be a fun way to earn money. When you create printables on Etsy, you only need to make one digital file for each product. After that, you can sell it many times to make more money.
Printables are things you can find online and print at home.
These can be things like a planner, coloring pages, wall art prints, greeting cards, gift tags, and so much more.
I buy printables frequently, and so do others all the time. Recently, I bought a printable for my daughter and it was a useful tool to help teach her the alphabet. I love that I can easily search what I’m looking for and get exactly what I want – plus I can print it right at home quickly!
Recommended reading: 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.
3. Voice actor
A voice-over actor is someone you hear but don’t usually see in things like videos on YouTube, documentaries, radio ads, TV ads, corporate talks, online courses, audiobooks, video games, movies, and cartoons.
Voice actors don’t necessarily need experience for this job (although it can be helpful later on). What’s important is having a voice that matches what the company is searching for.
Recommended reading: How To Become A Voice Over Actor
4. Photographer
As a photographer, you get a special chance to capture moments and tell stories with your camera. Photography has many different areas where you can focus, and they can be both satisfying and financially rewarding.
Here are some examples:
Photojournalist – You document events for media outlets, such as National Geographic.
Wedding Photographer – Your role would be capturing wedding moments in couples’ lives.
Stock photo photographer – Photographers can sell their pictures on stock image sites, which are really popular. These sites let customers purchase pictures for things like websites, TV shows, books, and social media.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
5. Buy and sell flipper
Being a buy-and-sell flipper means you’re into flipping items for profit.
This includes getting undervalued things from flea markets, garage sales, or online places and then selling them for more money.
This could be things like clothing, electronics, furniture, cars, and so much more. Basically, anything and everything!
Your success depends on how good you are at finding good deals, knowing the values in the market, and selling things again for a profit.
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
6. Proofreader
As a proofreader, your careful attention to detail can become a rewarding career. Proofreading means going through texts to fix grammar, spelling, and punctuation mistakes before they get published. This job is important to make sure written content is clear and doesn’t have errors.
Many people, like authors, website owners, and students often hire proofreaders to make their work better. There’s a big need for proofreaders, and you can find jobs on various platforms.
Even the best writers can make mistakes in grammar, punctuation, and spelling. That’s why getting a proofreader can be really helpful for almost everyone.
In fact, although I have written over 2,000 articles, I have a proofreader who will have proofread this very blog post.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year)
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
7. Freelance writer
Freelance writers create content for clients, like blog posts and advertising. Freelance writing usually involves working independently. Clients give you a topic, you write about it, and then you might receive feedback, like suggestions to improve or add paragraphs.
You can write about any topic that you want to – such as travel, money, home, and so on.
How much you make as a freelance writer depends on your experience and the topics you write about. When you start, you might earn around $50 to $75 for a 500-word article. As you get better, you can charge more. For a 1,000-word article, you could make between $100 and $150. If you do well over time, you can ask for even higher rates.
I was a freelance writer for many years before transitioning to full-time writing here on Making Sense of Cents. It’s a great career where you can mostly work from home on your own.
Recommended reading: 14 Places To Find Freelance Writing Jobs
8. Graphic designer
A graphic designer is someone who makes designs for people and businesses. As a digital designer, you might create images, social media graphics, printables, T-shirt designs, business cards, stickers, logos, and more.
As a graphic designer, your main job is to communicate through visuals. You use a mix of typography, images, color, and layout to convey messages and brand identities. This field gives you the freedom to express your creativity in different ways, whether it’s through digital designs or print materials.
Recommended reading: How To Make Money As A Digital Designer
9. Social media manager
Being a social media manager is an exciting career choice and your main job is to take care of how a company or person appears online on different platforms. Your tasks include interacting with followers, selecting content, and planning social media posts.
Here are the key areas you typically need to focus on:
Content creation – Create fresh, original posts tailored to each platform.
Engagement – Interact with the audience by responding to comments and direct messages.
Strategy planning – Use data analytics to drive social media strategies, aiming for increased engagement and reach.
The salary can vary, and you can choose to do this job either part-time or full-time.
10. Social media influencer
Related to the above, you can make money with your own social media accounts as well.
Have you ever followed someone on Instagram or TikTok and thought to yourself that it would be fun if you could do something similar?
Social media influencers use different online platforms to create, share, and connect with content that their audience likes. Your success depends on growing a big group of followers and establishing yourself as a trusted voice in your specific area.
As an influencer, you’ll create your brand by sharing your interests, pictures, and opinions on social media platforms such as Instagram, TikTok, Facebook, and others.
You can earn money through sponsored posts (when brands pay you to promote their products or services in your Instagram posts), affiliate marketing (earning commissions from sales through your referral links), and by creating digital products like ebooks or online courses.
I’ve been a social media influencer for years, monetizing my Instagram and Facebook accounts. It’s a great experience as I get to collaborate with companies I love and promote products I already use.
11. Veterinarian
If you have a passion for animals, then becoming a veterinarian may be a great fit for you.
Veterinarians have a skilled and fulfilling role dedicated to animal health and welfare. The main responsibility is to provide medical care to animals, diagnose health problems, and perform surgeries.
Vets work in private clinics, animal hospitals, research facilities, zoos, and more.
The veterinarian career path is rewarding as it lets you blend a love for animals with the chance to make a positive impact on their lives.
To become a veterinarian, you must complete a Doctor of Veterinary Medicine (DVM) program and obtain a state license to practice. This usually involves:
A bachelor’s degree
A four-year veterinary program
The national average salary for veterinarians is around $100,000 per year.
12. Marine biologist
One job that I dreamed of as a kid was to become a marine biologist. It always sounded like so much fun to work with water and sea animals.
Marine biologists study marine organisms and how they behave and interact with the environment. Your work might take you from coastal wetlands to the deepest parts of the ocean.
Here are some of the things they do:
Conduct research on marine wildlife and ecosystems
Monitor the health of marine habitats
Develop conservation plans
Educate the public and policymakers
Marine biologists are important for understanding marine life and contributing to ocean conservation efforts.
13. Mystery shopper
Retailers, restaurants, and financial institutions need mystery shoppers for detailed feedback to improve their customer service and products.
This might not be a full-time job, but it can provide you with some extra money each month.
I remember when I first learned about mystery shoppers. I was working at a clothing store, and we would have mystery shoppers come in to see how we were doing. We never knew who the mystery shopper was, but we would get to read their report afterward and see what they thought of us.
After learning about mystery shopping, I found a website where I could become one as well. It sounded like fun to get paid to shop.
I would make about $150 to $200 per month through mystery shopping, and I also got free items and services, like $100 to spend at restaurants (where I had to provide feedback while I was there), makeup, and more.
Recommended reading: How To Become A Mystery Shopper
14. Architect
Architects have a special mix of creativity and technical skills, allowing them to design buildings that are not just attractive but also functional and safe.
Their role includes making detailed plans, and considering factors like sustainability, budget, and client needs.
To become an architect, you typically need a bachelor’s or master’s degree in architecture and you’ll need state licensure, which is obtained by passing the Architect Registration Examination (ARE).
15. Stunt person
A stunt person is a cool job where you use your physical skills to create exciting action scenes for movies, TV, and live shows. It’s a big part of making the action look real and thrilling.
To do this job, you might need lots of training in things like martial arts, gymnastics, or extreme sports. You also have to be good at handling pressure and follow safety rules closely.
16. Professional video gamer
Yes, if you like video games, you may actually be able to make money as a professional video gamer.
While the amount of money you can make will definitely vary, top gamers have the potential to earn from tournament prizes, sponsorships, and streaming content for fans:
Tournaments: Prize pools can be large, reaching into the millions for top-ranking competitions.
Streaming: Platforms like Twitch and YouTube pay through ads, subscriptions, and donations.
Sponsorships: Companies may endorse you and pay you with sponsorships or free items.
You could maybe even find a job working for a video game designer, testing out video games so that companies can improve their video game design.
Recommended reading: How Much Do Twitch Streamers Make?
17. Chocolatier
Many people at some point in their lives want to become the person who makes chocolate and candy – sounds amazing after all, right?
A chocolatier is someone who uses cooking and art skills to make chocolates. It’s a job that needs creativity, precision, and a good sense of taste.
You might work for yourself, making chocolates, or you may even work for a large chocolate company. I know people who do both!
18. Personal trainer
If you want to find a job that you’ll love, becoming a personal trainer may be it.
Personal trainers play an active role by combining fitness with motivational skills to help people reach their health and fitness goals. This job includes:
Assessing clients’ fitness levels and health conditions
Developing personalized workout and nutrition plans
Demonstrating exercises and routines to clients
Tracking clients’ progress and adjusting plans as needed
How much you earn as a personal trainer can change a lot based on where you work, your qualifications, and the clients you get. Personal trainers usually make an average of $40,000 to $70,000 per year.
19. Supercar driving instructor
Supercar driving instructors have an exciting job where they help people learn how to drive fast cars on racetracks.
The role includes teaching safety and giving an exciting experience as well as explaining how to handle the vehicles, follow track rules, and use advanced driving techniques.
You can usually earn a high income doing this, plus you get to drive some of the world’s most exotic supercars.
20. Toy designer
Being a toy designer is probably most children’s dream career. After all, who hasn’t loved toys at one point in their life?
The toy industry is always looking for creative designers to make new toys that will grab kids’ attention and imagination.
Toy designers have a cool job where they mix creativity with making things work well. The main aim is to create toys that are fun and help kids learn and grow. This special job combines artistic skills with knowing about how children think and learn.
21. Restaurant critic
Restaurant critics evaluate dining establishments and share their experiences through written reviews. Their main responsibility is to provide an unbiased review of the food quality, service, ambiance, and overall dining experience.
To gain experience and get started, begin by developing your taste buds and learning about different cuisines. This can involve:
Going to cooking workshops
Exploring different food places when you travel
Creating your own blog or starting an Instagram dedicated to food
22. Brewmaster
If you love craft beers and enjoy understanding how fermentation works, becoming a brewmaster could be a fun and rewarding career.
Brewmasters manage the brewing process, such as creating recipes, choosing ingredients, and making sure the quality is top-notch during production.
To start, you might need formal education, such as a degree in brewing science or a related field. However, some brewmasters climb the ladder from roles like brewing assistants, gaining experience through on-the-job learning.
23. Fashion designer
Fashion designers make clothing, accessories, and shoes, and they draw designs, pick fabrics and patterns, and guide how the products designed should be made.
Fashion designing can be a fulfilling career if you love fashion and enjoy creating. It gives you a chance to express yourself personally and can even lead to getting noticed in the industry.
24. Food stylist
Food stylists combine culinary art with aesthetics, making sure that dishes not only taste good but also look delicious and perfect for photographs.
Their duties include choosing ingredients thoughtfully, preparing the food, and presenting it in a way that’s visually attractive. This is important for different media like advertising, packaging, cookbooks, and film.
25. Event planner
Event planners organize events, from big corporate conferences to small weddings. Their main job is to make sure every part of the event matches the client’s vision, fits the budget, and meets the goals.
According to Glassdoor, the average pay for an event planner is around $50,000 per year. Your salary can change based on things like your experience, where you work, and the size and type of events you handle.
26. Animator
If you’re looking for fun jobs that pay well, then becoming an animator may be it!
Animators make visual creations, and their main focus is on designing characters, environments, and entire worlds in 2D or 3D formats.
Here’s what you may work on:
Character design: Create and develop characters for various media.
Story development: Collaborate on storyboards to plan out visual narratives.
Animation: Work with digital tools to animate drawings and models.
The animation industry values creativity and technical skills and also pays competitive salaries with the opportunity to contribute to exciting storytelling processes. Whether you’re involved in creating animated TV shows, movies, or video games, being an animator can be both enjoyable and financially rewarding.
27. Real estate agent
Real estate agents are professionals who help people buy and sell properties, such as houses and commercial buildings.
I know a few real estate agents, and they all seem to love their jobs. They get to see beautiful new homes and properties and help their clients find their dream property.
Plus, they usually set their own schedule, which can help you create a better work-life balance.
28. Private investigator
Private investigators conduct investigations on various matters, including legal, financial, and personal issues.
This may include doing things like surveilling someone to get information, interviewing people to get details, researching public and legal documents, as well as gathering evidence for cases.
Here are some steps to becoming a private investigator:
Have a high school diploma or equivalent. Perhaps even get a degree or certification in criminal justice or a related field.
Gain experience in a related field such as law enforcement or the military.
Acquire a private investigator license, as required by your state.
29. Romance novelist
Starting a career as a romance novelist can bring both fulfillment and income. If you love storytelling and especially romance, this can be a fun one to think about.
Recommended reading: How to Make Money Self-Publishing Short Romance Novels
30. Interior designer
Interior designers mix creativity with practicality to decorate the insides of properties. Their job is to design and put in place the aesthetic and functional aspects of residential or commercial spaces.
Your job would be to create an environment that looks good and is comfortable for your clients.
31. Airline pilot
Airline pilots have a career that is both exciting and has the potential to make a lot of money. Their main job is to pilot commercial aircraft, flying from one place to another, and making sure everyone on board, including passengers and crew, stays safe.
Some of their daily duties include:
Conduct pre-flight inspections
Navigate the aircraft
Communicate with air traffic control
Monitor weather conditions and aircraft systems
Lead the crew and manage any in-flight issues
32. Drone pilot
Drones have gained popularity lately, not just for recreational use but also for jobs requiring aerial photos and videos. This creates a growing opportunity for individuals to start small businesses and make money with their drones.
Your job as a drone pilot may be to:
Take high-quality images and videos from unique perspectives, such as for real estate, construction, or events.
Perform inspections, surveys, and mapping for various industries like mining or agriculture.
Analyze data and images to give insights to clients.
Recommended reading: How To Make Money With A Drone
33. Sommelier
Sommeliers have a lot of knowledge of wine and can share it in a fun way.
This job is usually found in upscale restaurants, and this role involves suggesting wines that go well with customers’ meals, conducting wine tastings, managing wine service, and taking care of the wine cellar.
34. Chef
Chefs, of course, play an extremely important role in a restaurant kitchen, crafting menus and overlooking meal execution. Their primary responsibilities include tasks like:
Menu Design: They create food menus for a restaurant.
Food Preparation: They oversee and sometimes partake in the detailed preparation of ingredients.
Cooking: They cook the restaurant meals and oversee other cooks in the kitchen.
35. Cruise director
Cruise directors make sure passengers have an unforgettable experience aboard a cruise ship. This job requires a fun personality and excellent skills in managing both entertainment programs and a team of staff members.
Their responsibilities include planning and supervising all onboard entertainment, such as shows, events, and activities.
We went on an around the world cruise recently and had an amazing cruise director. It looked like such a fun job, and they got to travel everywhere that we did (of course!).
Recommended reading: How To Get Paid To Travel The World (18 Realistic Ideas!)
36. Astronomer
Astronomy is a field that combines the excitement of exploring the cosmos with the satisfaction of solving complex problems. As an astronomer, you enter a world dedicated to understanding celestial phenomena and the principles of the universe.
Usually, a Ph.D. in astronomy or a closely related field is needed to conduct independent research or work at a university. However, with a bachelor’s or master’s degree, you might find opportunities at planetariums, observatories, or assisting with research.
37. Netflix tagger
If you’re seeking a fun yet rewarding job, becoming a Netflix tagger could be an interesting option. In this job, you watch Netflix content and assign specific labels to shows and movies, influencing the platform’s recommendation algorithm.
To get started, you will need to apply through the Netflix jobs portal, where available positions are listed. Experience in film and media studies, while not mandatory, can give you an advantage.
Recommended reading: 7 Best Ways To Get Paid To Watch Netflix
37. Geologist
Geologists explore and study the earth’s composition, processes, and history.
Their job can lead to finding valuable resources like minerals, oil, and gas, and they also have an important part in environmental conservation and predicting natural disasters.
38. Dog walker
If you love pets, then this is the fun paying job for you!
Dog walkers do exactly that – walk dogs while their owners are busy, such as at work or on vacation. If you like dogs, then this can be a fun way to spend time with animals and get paid for it.
To become a sought-after dog walker, you should be reliable, good with animals, and you should have excellent customer service skills to build connections with clients. Dog walking allows you to enjoy the fresh air, bond with different dogs, and make money doing something you love.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
39. Ethical hacker
Ethical hackers think and operate like malicious hackers but with a specific goal: identifying and fixing security vulnerabilities before they can be exploited.
They act as safeguards, testing and securing systems to prevent potential breaches for companies.
This job involves a lot of problem-solving skills, as you are looking for possible security problems.
40. Travel agent
If you like planning trips, then becoming a travel agent may be a great way to have a fun high-paying job.
Travel agents craft and sell travel experiences. They help advise clients on different travel destinations and arrange transportation, hotels, tours, and more. It’s a job that not only pays well but allows you to help others travel.
You may help people plan their honeymoon, a trip to Disney World, an around-the-world cruise, and so much more. There are travel planners for every kind of trip that you can think of.
Your knowledge and skill in handling the challenges of travel planning make you a very important help to travelers who want their experiences to be stress free.
The average annual salary can vary by a lot, and this can be either a part-time or full-time job. There is a lot of job growth too, as more and more people are going on vacations!
41. Personal shopper
Personal shoppers give a shopping service for clients who either lack the time or the style to select their own stuff. As a personal shopper, your job may range from picking clothing to finding the perfect gift.
You may work at a high-end retail store, or you may be a freelance personal shopper – there are many jobs in this field!
42. Park ranger
Have you ever been to a beautiful place like Yosemite National Park and wondered what it would be like to work there?
Park rangers work in places like beautiful national parks and get to enjoy the scenery every single day. Their responsibilities include protecting and managing parks, wildlife, and historical sites and making sure that both the natural resources and the visitors exploring them are safe.
To become a park ranger, you usually need a combination of education in fields related to conservation, environmental science, or wildlife management, and relevant work experience.
Recommended reading: 15 Outdoor Jobs For People Who Love Being Outside
43. Tour guide
Being a tour guide gives you a chance to share your love for travel or history with others, all while making a living. You’ll get to be in different places like historical sites, museums, or outdoor adventures.
This can be a low-stress job with a big fun factor – as you get to explore places that you probably already love and are an expert at.
Recommended reading: How to Make Money as an Airbnb Experience Host
44. Yacht crew
Working on a yacht can be a thrilling job that mixes travel, adventure, and the chance to meet new people, along with the possibility of earning good money.
If you work on a yacht, your job could be as a captain, mechanic, server, cleaner, chef, and more. If you’re on a smaller boat, you might even handle all these tasks.
Jobs on a yacht or big sailing boat are usually hard work, but the perk is that you get to travel with most expenses covered, while also earning a high income.
45. Flight attendant
Being a flight attendant is important for making sure passengers are comfortable and safe. You’re like the friendly face of the airline during flights, taking care of different needs and keeping service standards high.
Plus, you get to enjoy the unique perk of discounted or free travel, which is a big perk of becoming a flight attendant.
Flight attendants can earn a good income, and the benefits are excellent. They usually make between $50,000 to over $100,000 a year. The training to become a flight attendant usually takes around 1 to 2 months.
Recommended reading: How To Become A Flight Attendant And Make $61,640 Each Year
46. Art therapist
Art therapists combine the creative process with psychological healing to provide a unique kind of mental health therapy. They conduct one-on-one or group therapy sessions, and being an art therapist can be very fulfilling as you help people discover their voice and heal through art.
Art therapists work at schools, psychiatric hospitals, veterans associations, and more. Usually, you need a master’s degree to enter this field.
They use art therapy to assist people in expressing their emotions, dealing with complex feelings, and enhancing self-awareness. Their job isn’t just about being artistic; it’s deeply connected to therapeutic practices that help a variety of clients.
Another job similar to this is becoming a music therapist.
Frequently Asked Questions
Below are answers to common questions about how to find fun jobs that pay well.
What is the most high-paying fun job?
The most high-paying fun job can vary based on your skills and interests. Some high-paying fun jobs include being a blogger, pilot, stunt person, and romance book author.
What are random jobs that pay well?
There are many unique jobs, such as a private island caretaker, yacht captain, or a voice-over artist.
Which is the most exciting and highest paying job in this world?
This will depend on who you ask! Maybe it’s being a pilot, a stunt person, an actor, or something else.
What are some fun jobs that pay six figures?
Some fun jobs that pay over $100,000 may include becoming a blogger, selling printables, photographer, architect, and more.
What are some low-stress fun jobs that pay well?
Jobs like a yoga instructor or a massage therapist can be low stress and fun, and they provide a good income, especially when experienced or working in more affluent areas.
What are some fun jobs that pay well without a degree?
You can pursue jobs such as a social media influencer, a real estate agent, or a personal trainer, which can pay well and be rewarding without requiring a traditional four-year degree.
Best Fun Jobs That Pay Well – Summary
I hope you enjoyed this article on the best fun jobs that pay well.
There are many fun careers that pay a part-time or full-time income.
Careers like voice acting, managing social media, and ethical hacking not only pay well but also let you have a good balance between work and life. The key is to know your talents and find the right fit in these exciting jobs.
I have been working a fun job for many years now, and I really really love it. It makes each day enjoyable and I actually look forward to work. I hope that you get to one day say the same as well.
What do you think are the best fun jobs that pay well?