When you apply for a new job, you know that you’ll need to submit a cover letter and resume. It’s the best way to show your past work experience and qualifications. But did you know that you can also create a renter resume and rental cover letter as you hunt for a new place to rent?
That’s right! A renter resume is a great way to highlight your past rental history, detail your income and occupation and help the landlord get to know you better. Renter resumes help you stand out from lots of applicants. They also show your future landlord just how serious you are about wanting to rent a home from them.
When you find yourself looking to rent a new home and you want to better your odds of securing that lease, check out this sample letter to rent a house and draft up your own renter resume.
When to create a renter resume
Once you’ve decided that it’s time to move and find a new place to live, you’ll start the house hunt to find some new locations to rent. When you go to rent a new place, you’ll have to fill out a rental application, which is standard practice.
While a renter resume isn’t required, it’s a nice added touch to help the landlord know you better. Here are a few scenarios when you should create a renter resume:
It’s a competitive market
Just like dream jobs, your dream apartment may go up on the market and quickly get snatched up. A renter resume is a great way to stand out from other potential tenants in a hot market.
Your rental or job history is spotty
Landlords look at your past job and rental history to predict what kind of tenant to expect. Property managers want to rent to people who have a consistent income, will pay the rent on time and will become a good edition to the neighborhood and other tenants.
If your history has gaps, a renter resume is a great way to explain the circumstances surrounding it. This is your chance to vouch for yourself, explain your history and convince the landlord that you’re a worthy candidate for the rental.
You don’t have a rental history yet
In some cases, people like students or newlyweds who have never rented before will lack rental history. In these situations, you won’t have a rental history to highlight and show that you would make an excellent tenant.
Use a renter resume to explain who you are and why you’d be a great tenant.
What to include in your renter resume
If you think a renter resume is a good option for you, here are the details you must include:
Contact information: Include your contact information like your email and phone number so the landlord can easily reach you
Objective: Include two to three sentences that clearly state what you’re hoping to achieve and why it’s important to you. Make this a short and concise paragraph that outlines why you want to rent a new home.
Background and personal information: Include details like hobbies, interests or how you spend your free time. While you don’t have to include details like race, gender, religion, familial status or age — absolutely include things that’ll humanize your application and show your personality.
Rental history: Talk about where you last lived, why you’re moving and what you’re hoping to get out of the new location. This is your opportunity to talk about what kind of neighbor you are and how you’ll be as a future tenant.
Work or student history: Another important thing to include in your renter resume is your work or student history. If you’re currently employed, you can provide information about your job status. This shows you’re a steadily employed person who will pay rent on time. If you’re a student, showcase your dedication to education. Talk about how those qualities will apply to you as a tenant, too. Landlords want to rent to dependable, stable people so use your work history and ethic clear.
References: While you can put lots of good things about yourself on paper, a personal reference is incredibly important to see what other people say about you. When you include references, avoid listing family members. Instead, put people like your manager, past neighbors or mentors. If your landlord calls them and asks about you, these people will advocate for you.
Renter resume template
We’ve included a renter resume template to use as a sample letter to rent a house. Simply fill in the blanks with your personal information. You can also download the word document template here.
Your name Email address Phone number Current address
OBJECTIVE: Write two to three sentences explaining your goals and motivations for wanting to move to this location.
(Example: I am interested in renting this home from you as I’m looking for a home in a location that is closer to work, has more space and is located in a neighborhood where I can walk and enjoy my neighbor’s company. This location seems like the perfect fit as it meets my needs and would be a great place to settle down long-term.)
BACKGROUND AND PERSONAL INFORMATION: Write two to three sentences about who you are, what you like to do and why you’re a good tenant.
(Example: I was born and raised in Salt Lake City and am now looking for a home of my own to rent. I went to school at the University of Utah and graduated with a degree in marketing. My husband and I are looking for a home where we can raise our two children. We like to go on walks, visit new parks, picnic as a family and explore new places. The location of this home is perfect for us as it’s close to work and good schools. We are a friendly, outgoing family who is eager to rent in a safe, clean neighborhood full of good people.)
RENTAL HISTORY: Include three to four sentences about where you’ve previously lived and why you’re moving. This section is very important because it’ll indicate what type of renter you are.
(Example: Before looking for a new place to live, I rented an apartment and resided there for X years. The reason I’m looking to move is that I want a place with more space and a backyard. I always paid the rent on time, kept the place clean and orderly and was a courteous neighbor at my previous location.)
WORK HISTORY: Draft three to four sentences detailing your work history, proof of income and employment record.
(Example: I’ve worked at the same company for five years. I’m dedicated to my work and company, which shows stability. I’m a hardworking person who values my job, hard work and a good work-life balance. When switch jobs, I make sure my finances are in order beforehand and have other work options lined up so I can stay consistent with an income.)
REFERENCES: Include a list of two to three references, your relationship to them, their phone numbers, email numbers and the best time to contact them. Make sure you let the references know that you’ve listed them so they are not caught off guard if the landlord reaches out to them.
Use your renter resume to impress future landlords
Once you’ve found the perfect place to rent, it’s time to write the perfect sample letter to rent a house. A one-page renter resume lets you stand out from other applicants and delight your future landlord.
Take a little extra time to write a renter resume using our template. You’ll find yourself moving into your dream home in no time.
Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.
If you spent your teenage years waiting anxiously for one of your siblings to get out of the shower, the idea of selling your spacious, multi-bathroom home and moving into a smaller house or condo may feel like a reversal of fortune.
Yet for many retirees, downsizing makes financial and practical sense. Younger baby boomers — those currently ranging in age from 57 to 66 — made up 17% of recent home buyers, while older boomers — ages 67 to 75 — accounted for 12%, according to a 2022 report from the National Association of Realtors Research Group. Boomers’ primary reasons for buying a home were to be closer to friends and family, as well as a desire to move into a smaller home, the report said. Both younger and older boomers were more likely than others to purchase a home in a small town, and younger boomers were the most likely to buy in a rural area.
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For retirees Fred and Shelby Bivins, selling their home in Green Valley, Ariz., will enable them to realize their dream of traveling in retirement. The Bivinses have put their 2,050-square-foot Arizona home on the market and plan to relocate to their 1,600-square-foot summer condo in Fish Creek, Wis., a small community about 50 miles from Green Bay. They plan to live in Wisconsin in the spring and summer and spend the winter months in a short-term rental in Arizona, where they have family.
Fred, 65, says the decision to downsize was precipitated by a two-month stay in Portugal last year, one of several countries they hope to visit while they’re still healthy enough to travel. “We’ve had Australia and New Zealand on our list for many years, even when we were working,” says Shelby, 68. The Bivinses are also considering a return visit to Portugal. Eliminating the cost of maintaining their Arizona home will free up funds for those trips.
With help from Chris Troseth, a certified financial planner based in Plano, Texas, the Bivinses plan to invest the proceeds from the sale of their home in a low-risk portfolio. Once they’re done traveling and are ready to settle down, they intend to use that money to buy a smaller home in Arizona. “Selling their primary home will generate significant funds that can be reinvested to support their lifestyle now and in the future,” Troseth says. “Downsizing for this couple will be a positive on all fronts.”
Challenges for downsizers
For all of its appeal, downsizing in today’s market is more complicated than it was in the past. With 30-year fixed interest rates on mortgages recently approaching 8%, many younger homeowners who might otherwise upgrade to a larger home are unwilling to sell, particularly if it means giving up a mortgage with a fixed rate of 3% or less. More than 80% of consumers surveyed in September by housing finance giant Fannie Mae said they believe this is a bad time to buy a home and cited mortgage rates as the top reason for their pessimism. “This indicates to us that many homeowners are probably not eager to give up their ‘locked-in’ lower mortgage rates anytime soon,” Fannie Mae said in a statement. As a result, buyers are competing for limited stock of smaller homes, says Hannah Jones, senior economic research analyst for Realtor.com.
Here, though, many retirees have an advantage, Jones says. Rising rates have priced many younger buyers out of the market and made it more difficult for others to obtain approval for a loan. That’s not an issue for retirees who can use proceeds from the sale of their primary home to make an all-cash offer, which is often more attractive to sellers.
Retirees also have the ability to cast a wider net than younger buyers, whose choice of homes is often dictated by their jobs or a desire to live in a well-rated school district. While the U.S. median home price has soared more than 40% since the beginning of the pandemic, prices have risen more slowly in parts of the Northeast and Midwest, Jones says. “We have seen the popularity of Midwest markets grow over the last few months because out of all of the regions, the Midwest tends to be the most affordable,” she says. “You can still find affordable homes in areas that offer a lot of amenities.”
Meanwhile, selling your home may be somewhat more challenging than it was during the height of the pandemic, when potential buyers made offers on homes that weren’t even on the market. The Mortgage Bankers Association reported in October that mortgage purchase applications slowed to the lowest level since 1995, as the rapid rise in mortgage rates has pushed many potential buyers out of the market. Sales of previously owned single-family homes fell a seasonably adjusted 2% in September from August and were down 15.4% from a year earlier, according to the National Association of Realtors. “As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” NAR chief economist Lawrence Yun said in a statement.
However, because of tight inventories, there’s still demand for homes of all sizes, Jones says, so if your home is well maintained and move-in ready, you shouldn’t have difficulty selling it. “The market isn’t as red-hot as it was during the pandemic, but there’s still a lot to be gained by selling now,” she says.
Other costs and considerations
If you live in an area where real estate values have soared, moving to a less expensive part of the country may seem like a logical way to lower your costs in retirement. While the median home price in the U.S. was $394,300 in September, there’s wide variation in individual markets, from $1.5 million in Santa Clara, Calif., to $237,000 in Davenport, Iowa. But before you up and move to a lower-cost locale, make sure you take inventory of your short- and long-term expenses, which could be higher than you expect.
Selling your current home, even at a significant profit, means you will incur costs, including those to update, repair and stage it, as well as a real estate agent’s commission (typically 5% to 6% of the sale price). In addition, ongoing costs for your new home will include homeowners insurance, property taxes, state and local taxes, and homeowners association or condo fees.
Nicholas Bunio, a certified financial planner in Berwyn, Pa., says one of his retired clients moved to Florida and purchased a home that was $100,000 less expensive than her home in New Jersey. Florida is also one of nine states without income tax, which makes it attractive to retirees looking to relocate. Once Bunio’s client got there, however, she discovered that she needed to spend $50,000 to install hurricane-proof windows. Worse, the only home-owners insurance she could find was through Citizens Property Insurance, the state-sponsored insurer of last resort, and she’ll pay about $8,000 a year for coverage. Her property taxes were higher than she expected, too. When it comes to lowering your cost of living after you downsize, “it’s not as simple as buying a cheaper house,” Bunio says
Before moving across the country, or even across the state, you should also research the availability of medical care. “Oftentimes, those considerations are secondary to things like proximity to family or leisure activities,” says John McGlothlin, a CFP in Austin, Texas. McGlothlin says one of his clients moved to a less expensive rural area that’s nowhere near a sizable medical facility. Although that’s not a problem now, he says, it could become a problem when they’re older.
If you use original Medicare, you won’t lose coverage if you move to another state. But if you’re enrolled in Medicare Advantage, which is offered by private insurers as an alternative to original Medicare, you may have to switch plans to avoid losing coverage. To research the availability of doctors, hospitals and nursing homes in a particular zip code, go to www.medicare.gov/care-compare.
At a time when many seniors suffer from loneliness and isolation, a sense of community matters, too. Bunio recounts the experience of a client who considered moving from Philadelphia to Phoenix after her daughter accepted a job there. The cost of living in Phoenix is lower, but the client changed her mind after visiting her daughter for a few months. “She has no friends in Phoenix,” he says. “She’s going on 61 and doesn’t want to restart life and make brand-new connections all over again.”
Time is on your side
Unlike younger home buyers, who may be under pressure to buy a place before starting a new job or enrolling their kids in school, downsizers usually have plenty of time to consider their options and research potential downsizing destinations. Once you’ve settled on a community, consider renting for a few months to get a feel for the area and a better idea of how much it will cost to live there. Bunio says some of his clients who are behind on saving for retirement or have high health care costs have sold their homes, invested the proceeds and become permanent renters. This strategy frees them from property taxes, homeowners insurance, homeowners association fees and other expenses associated with homeownership
The boom in housing values has boosted rental costs, as the shortage of affordable housing increased demand for rental properties. But thanks to the construction of new rental properties in several markets, the market has softened in recent months, according to Zumper, an online marketplace for renters and landlords. A Zumper survey conducted in October found that the median rent for a one-bedroom apartment fell 0.4% from September, the most significant monthly decline this year.
In 75 of the 100 cities Zumper surveyed, the median rent for a one-bedroom apartment was flat or down from the previous month. (For more on the advantages of renting in retirement, see “8 Great Places to Retire—for Renters,” Aug.)
Aging in place
Even if you opt to age in place, you can tap your home equity by taking out a home equity line of credit, a home equity loan or a reverse mortgage. At a time when interest rates on home equity lines of credit and loans average around 9%, a reverse mortgage may be a more appealing option for retirees. With a reverse mortgage, you can convert your home equity into a lump sum, monthly payments or a line of credit. You don’t have to make principal or interest payments on the loan for as long as you remain in the home.
To be eligible for a government-insured home equity conversion mortgage (HECM), you must be at least 62 years old and have at least 50% equity in your home, and the home must be your primary residence. The maximum payout for which you’ll qualify depends on your age (the older you are, the more you’ll be eligible to borrow), interest rates and the appraised value of your home. In 2024, the maximum you could borrow was $1,149,825.
There’s no restriction on how homeowners must spend funds from a reverse mortgage, so you can use the money for a variety of purposes, including making your home more accessible, generating additional retirement income or paying for long-term care. You can estimate the value of a reverse mortgage on your home at www.reversemortgage.org/about/reverse-mortgage-calculator.
Up-front costs for a reverse mortgage are high, including up to $6,000 in fees to the lender, 2% of the mortgage amount for mortgage insurance, and other fees. You can roll these costs into the loan, but that will reduce your proceeds. For that reason, if you’re considering a move within the next five years, it’s usually not a good idea to take out a reverse mortgage.
Another drawback: When interest rates rise, the amount of money available from a reverse mortgage declines. Unless you need the money now, it may make sense to postpone taking out a reverse mortgage until the Federal Reserve cuts short-term interest rates, which is unlikely to happen until late 2024 (unless the economy falls into recession before that). Even if interest rates decline, they aren’t expected to return to the rock-bottom levels seen over the past 15 years, according to a forecast by The Kiplinger Letter. And with inflation still a concern, big rate cuts such as those seen in response to recessions and financial crises over the past two decades are unlikely.
Note: This item first appeared in Kiplinger’s Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
In this episode of NerdWallet’s Smart Money Podcast, hosts Sean Pyles and Sara Rathner share the best money moves of 2023 as submitted by their fellow colleagues. Some of the highlights include saving aggressively to prepare for future expenses, getting rid of private mortgage insurance, automating finances for budgeting and planning, setting up 529 college savings plans for children, shopping around for the best mortgage rates, and understanding the difference between an emergency fund and a rainy day fund.
Check out this episode on your favorite podcast platform, including:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
If you’re a loyal fan of the show, it’s possible you stay until the very end of each episode and if you do, you always hear us say, “Until next time, turn to the Nerds.” Well, today, dear listener, we are turning the show over to the Nerds. We present the best money moves of 2023 by our fellow Nerds.
Amy Knight:
This year I learned how to explain the effect of compounding using a lovely seasonal analogy, snow. You think of your money like snow. When you spend it, it melts and runs away, but when you save it, any new snowfall sticks to the snow that’s already there.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Sara Rathner:
I’m Sara Rathner.
Sean Pyles:
This episode finishes off our Nerdy deep dive into the end of 2023. This is it, Sara, the finale of our last series of the year.
Sara Rathner:
The piece de resistance.
Sean Pyles:
Yes. We sent a notice out calling all Nerds, asking for the best things our colleagues did with their money in 2023, and I mean all Nerds, IT, HR, everybody, even the corner office, and today we’re going to share their money wins.
Sara Rathner:
I love this. Before we start, you and I are Nerds, too, right, Sean? Should we start with our money wins for 2023?
Sean Pyles:
I think we should. Sara, give us yours.
Sara Rathner:
Yeah. This sounds like a weird money win, but I have said, on the show before, one of the pieces of advice that I got when I was younger was to save as aggressively as you can for as long as you can because your life will get more complicated as you get older. Well, I have reached the point where my life is complicated and expensive, and I will say that because I had spent those years putting money away as best I could, I had money on hand to do the things that I needed to do this year.
There were some unexpected repairs to our house that we had to do. We ended up replacing our car because we had a baby, and that was probably one of the most expensive things I did in 2023 was pay all those hospital bills, and now I’m paying daycare bills, so this kid will cost me money until he’s 35 and then maybe he’ll be independent by then. We’ll know.
Sean Pyles:
They say you reap what you sow. You had been sowing savings for years and years, and now you are seeing the benefits of that, which is great.
Sara Rathner:
Yeah. What it has allowed us to do, and by us, I mean I say my husband and I, is say yes to the things we need and know that we have the money on hand. That’s really nice when something in your house breaks or there’s something that you want to do like travel or a night out with friends that’s going to cost a lot of money. We can say yes to the things that mean something to us because we spent so long just pocketing and putting money away, living as well below our means as we could. Now, I think we’re living at our means, which is nice.
Sean, what about you? What is your money win for 2023?
Sean Pyles:
Well, it’s a little Nerdy and a little in the weeds maybe, but I got rid of my private mortgage insurance on my house after going into war with the bank that owns my mortgage. It was not a fun process, but I came out the victor, and I’m so proud of myself for that because the bank that owns my mortgage is not very nice. That’s my money win for 2023.
Sara Rathner:
I’m surprised you had to go to war. Isn’t it just like, once you hit 20% equity, you have to refinance, or how does that work?
Sean Pyles:
Oh, yes, they barraged me with a mountain of paperwork and time delays and bureaucratic processes that I actually detailed in a Money Hot Takes episode of Smart Money. I think that you were out on maternity leave, Sara.
Sara Rathner:
Sean Pyles:
Will do. Okay. Great. Well, before we get into the Nerd’s best money moves of 2023, a reminder, dear listener, that we always love hearing from you. Leave us a voicemail or text the Nerd hotline at 901-730-6373, that’s 901-730 N-E-R-D, or email a voice memo to [email protected].
All right. Sara, are you ready to hear from our Nerdy colleagues about their best money moves of 2023?
Sara Rathner:
I am. Let’s see what they all learned this year and maybe we could take some of that advice and apply to our own finances.
Sean Pyles:
Yeah. I mean, that’s the idea, so let’s start with the boss. Tim Chen is the founder and CEO of NerdWallet, and he did an energy efficient move this year.
I switched from a Mercedes SUV to a Toyota Sienna. I’m getting twice the gas mileage. I’m using the cheap gas, and I’m paying about a 10th as much every time I service the car.
Sara Rathner:
Well, Sean, it is so true that you really save money on servicing when you don’t have a luxury car. Just getting a new battery or oil filter can be less expensive.
Sean Pyles:
Sara Rathner:
Yeah, new to me, and it’s a hybrid, so the mileage is pretty sweet.
Sean Pyles:
Nice. All right. Well, let’s hear from another Nerd. Skylar Damiano is an IT administrator here at NerdWallet.
Skylar Damiano:
My partner and I are accelerating our marriage to the end of this year because it’ll save us a ton of money in the long run via tax benefits. These are things that we just never thought about when we were single or, even in our case as queer people who never really thought about marriage beyond our domestic partnership, but I’ve also learned that I will never stop learning about the financial world around me. I can’t possibly know everything related to financial wellbeing, but the more I research and the more I practice good habits, the more likely I am to carry those good habits into the future.
One that stuck with me from last year is not spending beyond my means. I now wait until I have funds available before I make a purchase like a new smartphone or a new toy or a hobby that I want to get into. In this case, I want to become a DJ in the next year. I’m not spending any money on that equipment though until I for sure have enough to save on it, because if I have the option to not rely on credit, but instead use my credit card to my advantage via cashback, it’s far more rewarding for me down the line.
Sean Pyles:
Sara, waiting until you have enough money to actually purchase something you want is a timeless piece of financial advice, one of the most basic and most important.
Also, Skylar, I would love to hear a DJ set when you are up and running with your equipment.
Sara Rathner:
This is near and dear to my heart, but utilizing a credit card for points or cashback instead of carrying a balance, that is chef’s kiss. And Skylar wasn’t the only Nerd highlighting this idea. Here’s Tom Lehmann, an account executive for NerdWallet.
Tom Lehmann:
The best piece of financial advice I would have to say is live well below your means. What a lot of people do is, over the course of their career, they tend to make more money, and when that happens, they tend to buy more stuff. They buy a cooler car, bigger house, more clothes, everything. I call that the lifestyle tax. If you really want to take control of your finances, what you have to do is you have to increase the gap between how much you make and what your expenses are.
I think making more money will naturally happen to a lot of people as they progress in their career, so I think the real key is figuring out where you could cut costs and be minimalistic about everything in your life. Just getting rid of stuff and getting out of the habit of buying stupid stuff every time. Every time you buy one thing, you’ve got to get rid of two in your house. That’s a great way to start.
Sara Rathner:
Sean, I think a lot of us often take the opportunity at the end of the year or the start of a new one to get rid of stupid stuff. The harder part is Tom’s advice to get out of the habit of buying stupid stuff in the first place.
Sean Pyles:
Yeah, preaching to the choir, Sara, because I’m sure that I have some stupid stuff on the way to my front door as we speak. All right. Well, let’s hear now from Sally French. She’s a travel writer here, and she’s been on the show before. Here is her takeaway from 2023.
Sally French:
My biggest money lesson is to always ask if your travels go wrong. I was caught up in the United meltdown as well as I had a canceled Southwest flight, and even though I was able to get another flight, I was still delayed. While I wasn’t entitled to any compensation officially, I still asked the airline customer service and I asked nicely, and in both instances, I got either a flight credit or miles from the airline. Even if your travels are disrupted, even if you’re not entitled to compensation, it doesn’t hurt to ask, because like I did, I was able to get some money back.
Sara Rathner:
Love it. Always ask. What do you have to lose? All they can say is no and you’re on your way, or not and you’re stuck at the airport indefinitely, but you could still ask.
Sean Pyles:
Yeah. You’re hopefully on your way unless your flight is canceled twice, but yes, it’s always worth asking. Next up, we have Kevin Berry. He leads multimedia content here at NerdWallet and happens to be my direct boss. You’ve heard his name in the credits of this show as a fact-checker and editor.
Kevin Berry:
I think my big money takeaway from 2023 is that automation of your money can be really, really valuable and super helpful when it comes to budgeting and planning. I spend, whatever, an hour every January looking at everything and the money coming into my checking account, and I had set up all these automated like, “Send this money here. Send this money to an investment account. Send this money to a savings account,” and just set it and forgot about it and let it do its thing this year, and then that has really come back to help me.
For example, the property tax bill showed up, and I was like, “Whoa, it went up, it’s thousands and thousands of dollars,” but then I went to my account that I’d set up for automated savings for property taxes because I knew this bill was coming, right? Kevin in January knew Kevin in November had to pay this bill, and lo and behold, the math held up and there was the right amount of money there, and that just took a lot of stress out of it. Yeah, I think my money lesson is invest in automation for things that you know you’re going to need to pay for or want to pay for, even like a vacation. That’s just been a real stress reliever and time saver on my end in 2023.
Sara Rathner:
Oh, man, Sean, automation can absolutely save your sanity. I have quite a few automated contributions in my own finances. A big one, two big ones, is I automate contributions for my largest expenses, which are my mortgage and daycare, and that comes out of my checking account into a joint savings account. My husband also contributes, and then the money is whisked away by an automatic clearing house once a month or once every other week, depending on the bill.
Sean Pyles:
Lovely. You just need to make sure that the money is actually automatically going into that checking account so it can then be paid elsewhere.
Sara Rathner:
Then there’s automation, obviously, into my retirement account, my 401(k) that I set up at work. If you work for a place where you have to opt into the 401(k) when you first start your job, do it. Because the longer you wait to get that started, the less money you’re able to save up, and you might even be missing out on employer match. If you’re starting a new job or if you have been in your job for a while, but you just haven’t bothered to set up your retirement accounts yet through your employer, maybe make this the year you do that.
Sean Pyles:
Absolutely. Well, I think I’m going to take a page out of Kevin’s book and set up automated deposits into an account for my car’s annual registration, because every year, June Sean curses every-other-month-of-the-year Sean for not saving up for that in advance. Okay. Our next piece of advice is from Hannah Cho. She’s our Nerdy vice president of content.
Hanah Cho:
This year, I’m really proud of finally sending up 529 college saving plans for my two kids. I have three kids, and I have one set up for my oldest, and I finally got around to setting up two for my youngest. I’m really trying to lean into taking advantage of time. They’re still very young where I still have probably 10 to 12 years before they head off to college.
Sean Pyles:
Yes. All of those years of investing and compounding will work wonders. Sara, I know you just had your baby like five minutes ago, but have you set up a 529?
Sara Rathner:
I have, so by the time my kid is 18, he’ll either be well on his way to college or he’ll be fighting in the climate war of 2041.
Sean Pyles:
That’s grim, but probably not inaccurate.
Sara Rathner:
It’s grim, but I want to set him up for a realistic life.
Sean Pyles:
Right. He’ll be able to buy plenty of munitions on the battlefield.
Sara Rathner:
Sean Pyles:
Well, Sara, you weren’t the only Nerd to procreate this year. Adam Smith did as well, and he’s all over the 529 planning.
Adam Smith:
In 2023, my wife and I actually had twin boys, and the first thing that came up once I heard that was knowing that I’ve got to pay for potentially two college educations at the same time, so another thing that crossed my mind was what if one of them goes to college and the other one doesn’t, or what if neither of them go to college? What’s the best way to approach this? We actually found that there’s a change to the 529 plan, which is how a lot of people save for their child’s college education, and so should your child or if one of our twins or both of them decide not to go to college in the future, you can actually roll the 529 plan into a Roth IRA, and the beneficiary of the 529 plan now becomes the owner of that Roth IRA. Traditional Roth IRA rules apply when transferring ownership, but, that being said, it’s a great savings vehicle for college planning or setting up a nice little nest egg for my twins in the future.
Sean Pyles:
You know what, Sara? I love that Adam knows that there are options for his kids, college or no college.
Sara Rathner:
Yes, and this is a huge way to get your kids started on their financial lives regardless of what they do after high school.
Sean Pyles:
All right. Up next is Alison McCoy, VP of brand marketing at NerdWallet.
Alison McCoy:
My husband and I, we’ve officially begun our home-buying process, and one of the best things we did this year was shop around for the best mortgage. I was pretty surprised at the options out there even in this high interest rate environment and feel really confident that we found the right option for us, that makes sure we’re not leaving any money on the table.
Sara Rathner:
Yes, always shop around for just about anything, but especially mortgage rates especially now.
Sean Pyles:
As Alison knows, we have a lot of mortgage and home buying information all over NerdWallet. We have a whole team devoted to that subject matter, and Abby Badach Doyle is a member of that team. Here’s her best money move of 2023.
Abby Badach Doyle:
This year, I learned the difference between an emergency fund and a rainy day fund. People use those terms interchangeably. I know I sure did, so I never really thought about it, but they’re actually two pretty different things. An emergency fund is for big major surprise expenses like major unexpected car repairs, new carburetor, and a rainy day fund is to help you pay for those things that aren’t necessarily emergencies, but are still outside of the scope of your typical monthly budget, like “Wow, the car is dirty after this camping trip. Can we please pay someone to do a deep clean and a full detail?”
Anyway, in our savings account, we’ve always used named sub-accounts for goals like holiday shopping and travel, but then we had this amorphous blob of money that I always felt so weird and guilty tapping into. Even though we’re disciplined savers and there was always enough there, it always just felt weird. This year, I split the blob into separate rainy day and emergency fund accounts, and that took away all of the stress and weirdness. Mentally, it was so helpful to not feel bad about spending money that I knew that we needed to spend on stuff that we knew was coming and to know that we’re still on track with our emergency savings for the bigger, unexpected stuff.
If you haven’t tried naming sub-accounts yet, I highly recommend it, and review the names often to make sure that they’re still working for you. If you need to set a savings goal for your emergency fund, try using an online calculator. NerdWallet, of course, has a great one. And then name that and separate it from your rainy day fund and from the rest of your other savings goals. That might be a small thing, but it was super helpful to me this year, and I hope that it helps you, too.
Sean Pyles:
Sara Rathner:
Sean Pyles:
Sara Rathner:
Sean Pyles:
I feel like we should do a chest bump or a high five after that. Anyway, Sara, do you have an amorphous blob of money that you feel weird and guilty tapping into?
Sara Rathner:
Always with the guilt, but the blob of money is divided into several smaller sub-blobs in the form of a few accounts with different purposes, and that helps me stay organized when it comes to deciding which accounts to use when I need to fund something.
Sean Pyles:
Love it. I mean, it’s no secret to devoted Smart Money listeners that I have many sub-blob accounts that I use on a daily basis. Also, nice call out to our NerdWallet calculators. Okay. On to our final Nerdy piece of advice.
Sara Rathner:
Already? That was fast.
Sean Pyles:
I know. Well, the good news is, Sara, that we’re always here, all of us, all of us Nerds, and we are here for you and our listeners. Our final guest is Amy Knight. She is a spokesperson for NerdWallet UK, and she has a money lesson to share about compound interest and the beauty of snowfall.
Amy Knight:
I have a money lesson to share about compound interest. This year, I learned how to explain the effect of compounding using a lovely seasonal analogy, snow. I think this is a great way to think about saving, and it can be helpful when you’re trying to start taking a longer-term view of your finances.
The lesson is this. You think of your money like snow. When you spend it, it melts and runs away, but when you save it, any new snowfall sticks to the snow that’s already there. New snowfall is your wages, maybe a bonus or holiday gift, an inheritance, maybe you sold an asset. Importantly, snow falls as interest. If you’re not actively saving, new snowfall is not going to stick. It’s going to melt and run straight out of your account.
We see in real life that fresh snow sticks a lot more when there’s already snow on the ground. I’m going to give a shoutout here to my friend Kim in Wisconsin who will soon be shoveling her driveway every day. You start with a thin layer, and as more snow falls, it builds up, and this is very like compounding. Gradually, your snow pile of savings compounds, and the bigger it gets, the more interest sticks to your money. As you watch it grow, you may be less tempted to melt the whole lot on an impulse purchase.
I’d love to know what you think of this analogy, Sean? This winter, if you are able to leave just a little savings in your account after the holidays, think of it like leaving a thin layer of snow on the ground ready for 2024’s snowfall to stick to. Don’t forget the Nerds can help you understand more about saving and investing. To discover how different financial products could work for you, just head to the personal finance section on NerdWallet.com.
Sara Rathner:
Well, that was lovely and spoken like a true spokesperson.
Sean Pyles:
Gotta love the plug. She does that for a living. I also really like this idea of snow as a metaphor for saving and compounding. Not only is it accurate, it’s also very soothing.
Sara Rathner:
Well, I’m closing my eyes here in Virginia, waiting for maybe a snowfall this year that, within minutes, will turn all black and sooty, if we even get snow at all because last year we didn’t.
Sean Pyles:
I’m hoping we get at least a little bit here in the Pacific Northwest. And also, shoutout to Kim in Wisconsin.
All right, and that’s a wrap on our year-end special series for 2023, but never fear, we’ll be back next year. In the meantime, if you have a money question of your own, turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730 N-E-R-D. You can also email us at [email protected]. Visit nerdwallet.com/podcast for more info on this episode, and remember to follow, rate and review us wherever you’re getting this podcast.
Sara Rathner:
This episode was produced by Tess Vigeland. Sean helps with editing. Kaely Monahan mixed our audio, and a big thank you to NerdWallet editors for all of their help.
Sean Pyles:
Here’s our brief disclaimer. We are not financial or investment advisors. This Nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sara Rathner:
With that said, until next time, turn to the Nerds, and Happy New Year.
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Are you moving or planning to buy a new home? PhysicianLoans is the national leader in providing special home financing for physicians, and AMA members can access unique services and deals to help them achieve this milestone.
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The PhysicianLoans program can offer financing with less money down than standard loans, plus no PMI and expanded underwriting guidelines. Additional benefits include:
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Expert guidance: Our loan officers stay with you throughout the home buying process, from early planning stages to pre-qualification, final approval and closing.
Flexible loan programs: Does not count your full student loans against you, and no pre-payment penalty. Not to mention flexibility is important during a resident’s life when schedules are constantly changing.
Free member bonus: Enjoy peace of mind with three months of home warranty coverage for AMA members who buy a home using either the physicians mortgage loan or the real estate agent matching services. Simply submit your form once you are under contract to ensure the free warranty is set up in time before closing on your new home.
Real estate agent match service
Real estate agent match service
DRS Agent Network
The DRS Agent Network connects you to real estate agents familiar with the special needs, timing and considerations of physicians and their families at each career stage.
Many physicians, especially those moving to a new city, have difficulties finding a trusted, reputable agent that helps them the way they need to be helped. DRS developed a pre-screening and vetting process to ensure that the agents helping physicians are among the best suited to work with physicians.
Save time and money: Complete a short form with your contact information, housing requirements, and any comments you would like to share with the agent. Quickly get matched with a trusted DRS Agent in the city you are interested in before you arrive there—even if you don’t plan to purchase for several months. Since there is no cost and obligation, it does not hurt to hear what the person you are matched with has to say.
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Free member bonus: Enjoy peace of mind with three months of home warranty coverage for AMA members who buy a home using either the physicians mortgage loan or the real estate agent matching services
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It seems like just yesterday when you couldn’t turn on the news without hearing about sub-3% mortgage rates. But today, just a couple of years later, it’s difficult to find a mortgage with under 6.5% interest. That means mortgage rates have more than doubled in a very short period of time.
If you’re in the market for a new home, it may be challenging to find affordable options with today’s high rates. After all, higher rates equate to higher minimum payments. So, you may be wondering if, and when, mortgage rates might fall to 3% or lower again – and whether or not it’s worth waiting to buy a home until they do.
Although rates could fall to 3% again one day, it’s not likely to happen any time soon. Moreover, it may not be a good idea to wait for mortgage rates to fall before you buy your house.
See what mortgage interest rate you could qualify for here now.
Will mortgage rates ever fall to 3% again?
Interest rates are cyclical. That means they tend to move in upward and downward cycles – with the current cycle being an upward one. However, that cycle seems to be coming to an end. Many economists expect interest rates to start falling soon, but will they ever fall back to 3%?
It’s possible for mortgage rates to fall to 3% in the future, but here’s why not likely that they will fall that low any time soon:
Inflation is still well above the Federal Reserve’s target
The Federal Reserve typically increases its federal funds rate target when inflation is too high and reduces it when inflation is too low. Although inflation has been cooling, the most recent data suggests the current annual rate of price growth in the United States is about 3.1%. That’s above the Federal Reserve’s 2% target.
Slowing inflation means the Federal Reserve isn’t likely to increase its target federal funds rate any time soon. But the fact that price growth continues well ahead of the central bank’s target suggests that no significant rate reductions are on the horizon either. Yes, economists are predicting that rates could begin to fall in 2024, but most agree that the Federal Reserve isn’t likely to make any moves until the second half of the year. That means mortgage rates probably won’t see any meaningful drop for at least several months.
Learn more about your mortgage rate options here.
The Federal Reserve tends to move slowly
Even if the Federal Reserve does start to cut its federal funds rate target in the second half of 2024, the central bank is probably going to move pretty slowly. That’s for good reason, too. If the Federal Reserve cuts interest rates too quickly, it could spur inflation, erasing all the work the central bank has done to curb increasing prices over the past couple of years. So, any rate cuts in 2024 are likely to be minimal and unlikely to result in mortgage rates dropping to 3%.
Record mortgage rates don’t happen often
According to Federal Reserve data, the sub-3% 30-year mortgage rates of late 2020 and early 2021 were record rates. Record rates don’t usually happen often, but that could be a good thing, too. For example, buyers haven’t paid record high 18%-plus mortgage rates since 1981.
Why you shouldn’t wait for rates to fall to buy a house
Sure, mortgage rates are relatively high when compared to the rates you would have paid a couple of years ago, but that doesn’t necessarily mean you should wait to buy a home. Here’s why:
Mortgage rates have already fallen: “We have seen mortgage interest rates drop in the last few weeks, which is welcome news to potential buyers,” says Bill Banfield, EVP of Capital Markets for Rocket Mortgage.
Market timing doesn’t always line up with life timing: Banfield went on to argue that “it is impossible to time the market, but people will always need to buy homes – whether they are downsizing after children go off to college or they relocate for a new job.” The simple fact is that life isn’t going to wait for lower interest rates and you probably shouldn’t either.
Competition: The housing market is a competitive one, but it’s not as competitive now as it was when rates were lower. When rates fall, you’ll likely have even more buyers to contend with.
Renting doesn’t build long-term value: Every time you make a mortgage payment, you build equity in your home. But when you make a rent payment, you’re not creating any long-term value.
There are still affordable options: “If someone is in the market to purchase a home, the good news is there are many options to choose from that can help in a higher rate environment,” says Banfield.
You may be able to refinance later: It will likely take some time to see any significant drop in mortgage rates. So, it may be wise to buy your home now and refinance your mortgage later when rates fall.
Real estate values tend to grow: Home prices could grow as you wait. So, buying now means you may be able to lock in a more affordable price.
Don’t wait for prices to climb, lock in your mortgage now.
The bottom line
Sure, mortgage rates could fall to 3% at some point, but chances are that’s not going to happen anytime soon. Moreover, waiting for rates to drop before you buy your home could backfire. Instead, consider buying your house now and refinancing your mortgage when rates improve.
Joshua Rodriguez
Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, three dogs and 10 ducks.
While a college education can help prepare students for life, taking advantage of the professional network college offers can help launch your career. Whether trying to land a summer internship, get that first job out of college, or apply to graduate school, a letter of recommendation from a professor can be helpful.
Although requesting this is common practice, it can still feel nerve wracking to broach the subject. Keep reading to learn helpful tips to receive a glowing letter of recommendation from a professor.
1. Asking a Professor Who Knows You and Your Work
There are several factors to consider when deciding who you’ll ask for a letter of recommendation. Taking stock of which professors actually know your interests and goals, not just your name, is something to consider right away.
A strong letter of recommendation can involve praising a student’s personal character and highlighting their goals and ambitions. For this reason, choosing a professor you’ve personally interacted with, whether through class discussions or during office hours, could be beneficial.
If you’ve taken several courses with a professor, they may be able to showcase how you’ve grown throughout your time in college.
Since a professor will also be attesting to your academic merit, it can be helpful to start by identifying who has seen samples of your strongest work throughout college. For example, a personal essay or in-person presentation that earned a strong grade might indicate that a professor valued your work.
2. Choosing a Professor Who Specializes in Your Field
Although a letter of recommendation is foremost about your own skills and attributes, also of benefit can be a professor’s own credentials within an industry or academic field you are targeting.
A letter of recommendation from an esteemed and notable professor could help you stand out in a competitive group of applicants.
Many professors have built up extensive networks from academic conferences and working with faculty at other universities and in the private sector.
Though they may not have contacts at the company, organization, or university you’re applying to, their advice and connections in a specific sector or academic discipline could prove valuable as you begin your job search. As academic professionals, they may have insight on the return on education for different graduate degrees and careers.
Often, jobs or graduate school applications require submitting more than one letter of recommendation. Choosing a combination of references who can highlight your strengths and character and carry respect in your desired field could further enhance your candidacy.
3. Asking in Person, if Possible
Given the importance of the request, asking in person can show that you’re serious about your future and respectful of a professor’s time.
For students currently enrolled in school, finding time to ask a professor for a letter of recommendation may be as simple as making an appointment during their office hours.
If you’re studying abroad or have already graduated, reaching out via email may be your only feasible option for starting the conversation. To further demonstrate your commitment, you might ask to arrange a phone or video call.
4. Making a Personalized and Specific Request
The average college has a student to faculty ratio of 14-to-1, so it’s not uncommon for professors to have several students ask for letters of recommendation each year. Still, that doesn’t mean every request is guaranteed a response or agreement to receive a recommendation.
Out of consideration for a professor’s busy schedule, making a request that’s tailored to them and clearly outlines what you need may increase your chances of success.
To personalize the request, consider reminding them which of their courses you took, a key project or assignment, and how they influenced your academic and career goals. Next, providing a concise explanation of the position or program you’re applying for and what it means to you is an opportunity to convey your own professionalism and passion.
Since writing a letter of recommendation is a favor, sending a courteous request that allows a professor to opt out could help avoid a lukewarm reference. A well-crafted request makes it easy for the professor to quickly decide if they have enough knowledge about you and the position to write a letter of recommendation.
5. Providing Information to Write the Recommendation
Even if you have a strong relationship with a professor, the quality of the recommendation can benefit from supplemental information. For instance, providing a resume, college transcripts, personal statement, and a sample of work can help jog their memory and give them a blueprint of your experience and accomplishments to draw from.
It can be helpful to include a job description or, for a graduate program, admissions information. This could help a professor connect your academic knowledge and experience to the job or program’s desired qualifications and skills.
This is also the time to provide information and guidance for submitting a letter of recommendation. Some typical considerations to include are where to send the letter, any relevant deadlines, and to whom it should be addressed.
6. Giving Plenty of Notice
Asking your professor several weeks, if not months, before the recommendation is due can convey respect and appreciation for their time and effort and help ensure submission deadlines are met. Also, it can give you time to regroup and consider other options if a professor or two declines.
7. Keeping Them Updated Though the Process
Professors typically have busy schedules, so probably won’t keep thinking about your job search or grad school application after the letter of recommendation has been written and sent. Letting them know when you have interviews and other updates can help them be prepared should they receive a call from an employer or admissions office.
8. Saying Thanks and Staying in Touch
Besides creating good karma, thanking a professor is another opportunity to foster a good relationship with them. They might become a mentor to you, especially if you’re pursuing a job or education in the same field.
You might apply to another job or a graduate program in the not-so-distant future and want to ask for another recommendation from the same professor.
Instead of starting from scratch each time you apply for a new job, you may want to periodically update academic and professional references along your career path and as your goals change.
Not only can this make for an easier request and stronger recommendation next time around, it may lead to more professional opportunities and meaningful relationships.
The Takeaway
Keeping up with former professors can be a pleasant way to reminisce about college years. Another not-so-pleasant reminder can be student loans.
Like many students, you may have taken out loans to pay for college and/or graduate school. Refinancing your student loans may be an option to help with repayment.
Keep in mind, however, refinancing federal student loans with a private loan means the borrower forfeits all federal loan benefits, such as income-driven repayment plans, loan forgiveness programs, access to deferment or forbearance, and other forms of federal student loan debt relief.
On the flip side, refinancing federal student loans might offer lower interest rates or a shorter term.
With SoFi, student loan refinancing could reduce the overall cost of your student loans and get you out of debt sooner when refinancing to a shorter term. Applying online is free and can be done in a matter of minutes.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Renting after eviction may seem daunting, but it’s not impossible. Yes, getting evicted is a terrible experience to deal with and a frustrating process to handle afterward. It’s something everyone fears and when it happens, you’re left wondering what the process of renting after an eviction is like.
While starting to find a new apartment after getting an eviction notice is a daunting process, it’s not impossible. With the right knowledge and preparedness, renting after eviction will be much easier. Don’t let an eviction weigh you down — we’ve got you covered with useful information so you’ll be renting after an eviction in no time.
Things to do if you’ve been evicted
If you’ve been evicted and are now ready to begin searching for a new space to rent, there are some things you should consider that will help make the process easier. Here are 10 tips for renting after an eviction.
1. Work on your credit score before renting after eviction
Your credit and legal history are two separate records, but when applying for a new place to rent, they become intertwined. An eviction won’t show up on a credit report itself but it will show up on a background check. Almost all landlords or apartment complexes will require a background check as part of the rental application process. So, if you have a past eviction, the landlord will almost certainly see it on your background check.
So how does that impact your credit score? We mentioned an eviction won’t show up on the credit report, but, if a previous landlord sent unpaid rent information to a collection agency or if your landlord sued you in court and won, this will all negatively impact your credit score. If you’ve been evicted, you need to work to improve your credit score so you can use a high score to advocate for yourself when going to rent a new property.
Start by paying off outstanding debts and paying future bills on time. A good credit score can make or break your ability to rent an apartment in the future.
2. Be honest
When people say “honesty is the best policy,” they mean it. It’s always best to share upfront with a possible future landlord about your past eviction notice — honesty is the best policy. Renting after an eviction is already hard enough and you don’t want to make it harder by having your future landlord find out you lied or withheld the truth. If they ask about your previous eviction you can simply explain the situation that led to your eviction.
Sometimes, the landlord will be more willing to work with you after hearing your side of the story.
3. Look at renting from a private party
Renting from a private owner as opposed to an apartment complex is always an option for those with eviction notices on their records. Because they’re renting the space privately they don’t have to work within the guidelines and restrictions that a regular apartment complex does. Because of this, they might be more willing to work with you and your situation. As mentioned above, be as open and honest with them as possible so they can fully understand your situation.
4. Pay more upfront
There are two ways to really get a person to help you out — buy them food or give them money. When looking for a place to rent, try and offer more money upfront. If you have the means, offer to pay a higher security deposit or two months’ rent upfront. This way the landlord knows you’re serious about renting and paying on time.
5. Get a co-signer
Getting a co-signer is another idea to explore while trying to rent after an eviction. If you know someone who is willing to and has good credit, ask if they’ll co-sign. Doing this might make the landlord more inclined to rent to you. But, keep in mind that if you don’t pay, your co-signer will have to.
6. Try and clear your record
An eviction stays on your record for seven years. That being said, there are some ways to clear your record sooner. If you’ve paid off any outstanding rent debts, reach out to your previous landlord and ask them to remove the eviction from your record.
If you haven’t yet been able to pay off an outstanding rent debt, still talk to your previous landlord. Ask them if you are able to pay off your rent if they’ll consider removing your eviction.
7. Refine your search renting after eviction
When searching for an apartment, refine your search and filter for apartments that either don’t do background checks or that accept applicants with previous evictions. By doing this you won’t waste your time looking at places guaranteed to turn you down.
8. Find the right references
Because renting after eviction is a tough road, you should have a lot of references ready before applying to rent an apartment. Because evictions are sometimes seen as a character flaw, you’ll want a reference to point out your good character traits.
Get friends, employers or colleagues to write letters speaking to your character and what a great tenant you’ll make. Submit these letters along with your rental application so that the landlord can read them and get a better sense of who you are and how you’ll be as a potential tenant.
9. Get a letter of credit when renting after eviction
Your goal when renting after an eviction is to get the landlord to understand what happened and still rent to you. Writing a letter of credit is a great start on this process. Write up your previous credit history and how you’ve changed. Tell them if you’ve gotten a new job or how you’re planning on doing things differently this time around.
10. Make a good first impression
First impressions last for a long time. When meeting with the landlord, dress nice and wear something that says you’re a reliable renter. Be polite and positively engage with them whilst speaking. You want to leave with them thinking you’re the best person to rent to. By doing this, they might be more willing to work with you and your situation.
Home sweet home
Being evicted is an extremely difficult moment to go through. And then on top of that, renting after eviction is a hard task. It takes time, effort and energy, but fear not it can be done. Using the knowledge and tips listed above you’ll be able to better prepare yourself for this daunting task.
Make sure to gather all the appropriate documents and references with you when going to meet with your potential new landlord. Tell them your story and appeal to their hearts. While it may seem like your past is still haunting you, there is hope that you’ll be able to find a new place to call home.
Ashley Singleton is a writer who loves following and writing about current lifestyle, DIY and home improvement trends. You can read some of her other work on the Lady Spike Media website. In her spare time, she performs stand-up comedy in Los Angeles.
Do you want to become a proofreader? If so, you may be interested in learning about the most popular proofreading course out there – Proofread Anywhere. In this Proofread Anywhere Review, I will help you learn everything that you can about this course so that you can decide if you should take it or not….
Do you want to become a proofreader? If so, you may be interested in learning about the most popular proofreading course out there – Proofread Anywhere.
In this Proofread Anywhere Review, I will help you learn everything that you can about this course so that you can decide if you should take it or not.
Proofreading is an in-demand job where you only need a laptop or tablet, an internet connection, and the skills to get started.
It’s a job where you can work at home or while traveling, and you get to choose your hours.
Learning how to proofread is a valuable skill that can open doors to a successful work-from-home career. Due to the increasing demand for online content, now is a great time to improve your proofreading abilities.
One popular way for improving your skills and starting a proofreading career is by taking the Proofread Anywhere course. In this article, we’ll talk about Proofread Anywhere, looking at what’s in the course, how it’s organized, the support available, and feedback from actual students.
If you’re looking for a quick Proofread Anywhere Review – Yes, I highly recommend taking this course if you are interested in learning how to become a proofreader. This course teaches you everything you need to know – from how to proofread and find mistakes all the way to finding proofreading jobs and building a successful career. The course is continually updated and it comes with lifetime access, which is amazing as well.
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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.
Key Takeaways
Proofread Anywhere is a comprehensive course that teaches the skills needed to make money proofreading.
The course has an in-depth curriculum and a supportive community to help you succeed.
Many real students have shared positive reviews of their experiences with Proofread Anywhere.
Proofread Anywhere costs $697.
Proofread Anywhere Review
The below Proofread Anywhere Review will mainly be about their General Proofreading course – General Proofreading: Theory and Practice™ (GPTP).
What is proofreading?
Proofreading is the process of reviewing and checking a written document to find and correct errors in grammar, spelling, punctuation, and formatting.
As a proofreader, your job is to make sure a piece of text is clear, concise, and free from mistakes, making it easier for the reader to understand and enjoy.
If you often find yourself catching typos on restaurant menus, in books, on TV, or elsewhere, then this may be a great job to look into.
Recommended reading: 16 Best Ways To Get Paid To Read Books
What is General Proofreading?
General Proofreading is the core course sold by Proofread Anywhere. It focuses on teaching the theory and practice of proofreading various types of documents, from books and blog posts to academic papers.
General proofreaders are in demand across many different industries and can be hired by individuals or organizations. This versatility is what makes general proofreading a valuable skill applicable to a wide range of jobs.
The course aims to equip people with the skills and knowledge needed to start a freelance proofreading career.
What is Proofread Anywhere?
Proofread Anywhere is a company that has online, self-paced courses all about how to become a proofreader and how to start a proofreading business.
The goal is to teach you the skills to start a successful freelance proofreading business from your own home. The courses are made easy to understand, and you don’t need any prior proofreading experience (they will teach you the skills that you need in the course!).
When you enroll in a Proofread Anywhere course, you’ll have access to important resources like course materials and a helpful student Facebook group.
The company was started by Caitlyn Pyle, and Proofread Anywhere teaches people the ins and outs of the proofreading business while offering valuable resources and a supportive community. The goal is to give you the knowledge, skills, and confidence you need to start a rewarding and flexible career as a professional proofreader.
The General Proofreading: Theory and PracticeTM course comes with:
80+ lessons in 10+ modules
Bonus resource guides for all types of service-provider markets
40+ real-life example proofreading jobs
8 grammar-specific worksheets and workbook
Pep talk videos from the course creator
100-question in-depth vocabulary quiz
3 case studies
New and updated lessons
And more.
Who is Caitlin Pyle?
Caitlin Pyle is the founder of Proofread Anywhere. She’s an experienced proofreader who turned her skills into a successful freelance business.
Caitlin became a proofreader back in 2012 and made a great income with it. She was so passionate about proofreading that she started Proofread Anywhere as a blog back in 2014. It has since grown significantly!
She created Proofread Anywhere to share her expertise and help others find flexible, rewarding work-from-home opportunities. By providing accessible, high-quality training, Caitlin has already helped numerous students realize their freelance proofreading dreams.
You can read an interview that I did with Caitlin Pyle at How To Become A Proofreader And Work From Anywhere.
How much money do proofreaders make?
The amount of money you can make as a proofreader depends on things like your experience, speed, niche, and how much work you’re able to take on.
Proofreaders typically charge anywhere from $25 to $50 per hour, with some proofreaders earning even more. You can work part-time, work full-time, be self-employed, or be an employee for a business. So, the amount of money you can make will depend on that as well.
As you improve your proofreading skills and build your reputation in the industry, you can increase your rates and possibly earn a comfortable income working from home.
Many people and companies hire proofreaders and this can be a great way to grow your income and work from home.
Is Proofread Anywhere worth it?
If you are thinking about taking the Proofread Anywhere course, you’re probably wondering if it’s worth the time and money. I completely get it – you don’t want to waste your time or money after all.
I think that Proofread Anywhere is worth it, and I know several proofreaders who have gone through the course and now proofread.
Here are some reasons why taking the Proofread Anywhere course may be a great choice for you:
1. Helpful and educational lessons – Proofread Anywhere has two different courses: General Proofreading: Theory and Practice™ and Transcript Proofreading: Theory and Practice™. Both courses were created to give people the knowledge and skills they need in each of these proofreading areas. You will learn everything you need to know from start to finish, which is great!
2. Self-paced learning – You don’t have to worry about keeping up with a strict schedule, as the Proofread Anywhere courses are self-paced, which means that you can learn at your own comfort and convenience. This can be great if you have a busy lifestyle or if you simply prefer learning at your own pace. You can take the lessons at night, during the day, while watching your child, and so on.
3. Access to resources and support – Students of Proofread Anywhere receive resources like reference materials, quizzes, and practice worksheets (and these are amazing and so helpful!). There’s also a private Facebook group for students to share experiences, ask questions, find jobs, and more, which is very helpful.
4. Positive reviews – There are many positive reviews of Proofread Anywhere, and many students have said that the courses helped them improve their proofreading skills and even launch successful careers in the field.
5. Opportunities for growth – Completing a course from Proofread Anywhere not only improves your proofreading skills but can also open up new job opportunities. The skills you learn from these courses can be applied to many career paths, such as freelance proofreading, editing jobs, and more.
So, taking a Proofread Anywhere course can be a worthwhile decision for you if you’re looking to improve your proofreading skills and explore new career opportunities in this field.
How much does Proofread Anywhere cost?
Proofread Anywhere has two offerings – Ignite and Ignite Plus for the General Proofreading: Theory and PracticeTM course.
The Ignite package for Proofread Anywhere costs $697 and comes with lifetime access. This course teaches you how to become a proofreader and comes with all of the modules, a job board listing, bonuses, and more.
Ignite Plus costs $797 and includes everything in the Ignite package, plus a hand-graded exam (that will evaluate your aptitude and competence), certificate of completion, listing in the Self-Publishing School Preferred Outsourcer Rolodex, and membership in a separate marketing mastermind group for Proofread Anywhere general proofreaders.
Proofread Anywhere refund policy
Proofread Anywhere’s refund policy is 14 days long. If you are less than satisfied with your purchase, you can ask for a refund for any reason within 14 days of your purchase.
Pros and cons of Proofread Anywhere
Here are the pros and cons of the Proofread Anywhere General Proofreading Course:
Pros:
Thorough course content that covers proofreading basics and advanced techniques
Clear, easy-to-understand lessons designed for students with different levels of experience
Practical exercises and real-world examples that help you build your skills
Access to an online community where you can ask questions and receive support from fellow students and course instructors
Cons:
Some students may find the course price to be a little high, especially if they are just starting their proofreading career.
There might be a learning curve for those who are completely new to proofreading so that they can spot mistakes in content.
Proofread Anywhere has thorough courses for people interested in starting a proofreading career. The material is easy to understand, making it great for beginners to learn and grow their skills.
Proofread Anywhere course structure
The Proofread Anywhere course is organized and easy to follow, making it perfect for beginners looking to improve their proofreading skills.
Below, you will learn what is included in the Proofread Anywhere course as well as what you will learn.
This section will give you an overview of the course structure and a breakdown of the modules and lessons included.
Proofread Anywhere modules breakdown
The primary course offered by Proofread Anywhere is the General Proofreading: Theory and PracticeTM course.
This self-paced course comprises several modules, each containing lessons and video materials to help you grasp the concepts effectively. You’ll be able to learn at your own pace and make sure you thoroughly understand each topic before moving on to the next.
Module 1: Introduction To General Proofreading – In this module, you will learn what proofreading is, the skills that are needed, and an overview of what a proofreader does.
Module 2: Get into the Right Mindset – Here, you’ll learn about how to get into the success mindset, the different types of markets you can specialize in as a proofreader, and common terms used in the industry.
Module 3: Proofreading Basics – This module goes over the most common errors that you need to look for. There are also practice worksheets to test yourself.
Module 4: Proofreading Methods and Practice – This module will teach you the different types of proofreading methods.
Module 5: Turning Proofreading into a Business – This module is everything you need to know about how to turn your proofreading skills into a business. You’ll learn how to create a resume and website, how to set your rates, how to build your experience, and more.
Module 6: How To Find Clients – Here in this module, you will learn how to find clients.
Module 7: Your Workflow Once You Get the Job – This module teaches you all about your workflow once you have secured a proofreading job. From how to send the bill to sending over your completed work, this is a very helpful set of lessons.
Module 8: Getting the Most Out of the Freelancing Life – This lesson shows you how to structure your day, how to build confidence, and how to stay organized and productive as a freelance proofreader.
Module 9: Wrap-up Lesson – This is the final module in the Proofread Anywhere course, and it is a wrap-up of everything that you’ve learned.
Within the modules, you will also learn:
Grammar Refresher – This section covers grammar basics, including common myths and mistakes, parts of speech, pronouns, contractions, possessives, and verb forms. This equips you with the essential knowledge to become a professional proofreader.
Sentence Structure – In this crucial module, you’ll grasp sentence structure, subjects, predicates, sentence fragments, run-on sentences, subject-verb agreement, order of adjectives, adverbial clause vs. participial clause, and “which” vs. “that,” along with dangling modifiers. Strengthen your understanding and abilities with the comprehensive practice worksheets.
Spelling and Word Use for Proofreaders – You’ll be taught about different error types, typical typos, frequently misused words, handling numbers, American and British spelling differences, and capitalization – all important aspects for a proofreader. You’ll also get to practice with detailed worksheets and check your answers using provided keys.
Punctuation Principles – You’ll learn about common punctuation errors, including when and how to use apostrophes, hyphens and compound words, en dashes vs. em dashes, commas and semicolons, as well as quotation marks and italics. This section also covers American and British punctuation distinctions and includes a vocabulary quiz.
The course includes practice exercises in each module. These are meant to help you use your proofreading skills in real-world situations. The exercises range in difficulty, allowing you to progress and become more confident. By completing these exercises, you’ll get practical experience that will ready you for your future proofreading career.
Proofread Anywhere bonuses
There are also many bonuses offered in Proofread Anywhere’s General Proofreading course, such as:
“Look Better in Writing™ Handbook of Commonly Misused (and Abused!) Words” – This is a 57-page guide on words and terms that are easily mixed up and confused.
“The Ultimate Freelancer Tax Guide” – This is a 19-chapter guide all about accounting, tax preparation, deductions, and more.
“The Mindset Mastery Guide” – This is a guide on how to get over your fear of becoming a freelancer, how to see success, and more.
“5 Mindset Shifts for Goal-Crushing Confidence” – This is a resource that will teach you how to become more confident.
Proofread Anywhere support and community
When taking a course, it’s always nice to know what the community is like.
Facebook groups
As a Proofread Anywhere student, you will have access to a Facebook group dedicated to providing you a supportive and friendly community. These groups are designed for students to share their experiences, ask questions, and engage with others who are proofreaders.
Customer support
In addition to the Facebook group, Proofread Anywhere has great customer support to address any concerns or issues you might be facing. You can reach out to their team when you need help.
By participating in the community and utilizing the available support channels, you are not only reinforcing your learning journey but also building a strong network of fellow proofreaders. This will help you stay connected, motivated, and successful in your proofreading career.
Proofread Anywhere real reviews
Looking for real Proofread Anywhere reviews?
My proofreader’s real review of Proofread Anywhere
I have a proofreader for this website, Making Sense of Cents. Jill Klein has been proofreading for several years, and she personally took a Proofread Anywhere course back in 2016. I asked her two questions:
1. Do you think that Proofread Anywhere helped you become a proofreader?
“As a kid, I was a word nerd who won lots of spelling bees. Little did I know that this would lead to building a proofreading business later in my life.
But it wouldn’t have happened without Proofread Anywhere.
I had a good foundation, and then PA came along and helped me build up my business by adding walls, bricks, windows, a roof, and more. Through the PA course, I was able to improve my skills and expand my knowledge.
I am constantly learning new things about running an editing business, and the learning journey all began with Proofread Anywhere.”
2.Would you recommend the course?
“I always recommend Proofread Anywhere to anyone who asks!
Even now, seven years later, I remember the high quality of the instruction. It was a very good curriculum with top-notch teaching.
The course I took was Transcript Proofreading, and it has served me well in my nonfiction niche of proofreading content like web copy, advertising materials, and book manuscripts.
Plus, the PA Certificate of Completion provided credibility to clients who asked to see training documentation.”
Testimonials
Many students who have enrolled in and graduated from the Proofread Anywhere course find it well worth the money. They like the easy-to-follow course structure, self-paced learning, and lifetime course access. Most of the online testimonials are positive experiences with the course.
Proofread Anywhere Trustpilot reviews
Proofread Anywhere has excellent reviews on Trustpilot, with a 4.6-star rating out of 61 total reviews. The majority of customers have given the course a 5-star rating, while only 5% of Proofread Anywhere reviews are negative.
You can find the Proofread Anywhere reviews on Trustpilot here.
Proofread Anywhere Better Business Bureau
Proofread Anywhere is not listed on the BBB. This isn’t a bad thing, though, as most businesses aren’t listed on the BBB anyway.
Proofread Anywhere negative reviews
As with any product or service, there are bound to be some negative reviews. A very small percentage of customers have rated Proofread Anywhere with 1-star reviews. However, it’s important to remember that the majority of students are happy with the course, and the overall rating remains high. So, when looking for a proofreading course, Proofread Anywhere could be the right choice for you.
Transcript Proofreading course
Proofread Anywhere has another popular course – their Transcript Proofreading course.
Proofread Anywhere’s Transcript Proofreading course is a great course to take if you want to go into transcript proofreading.
Transcript proofreading is when you are proofreading for court reporters in the legal industry.
Here’s what’s in this course:
The Nuts & Bolts of Transcript Proofreading
Transcript Formatting, Moving Parts, and Processes
How to Use Technology and AI Tools to Proofread Transcripts
Practice With Real-Life Transcripts to Develop Your Skills
Effective Client Communication and Accounting
How to Find Clients
And more!
There is a free training workshop you can take on how to become a transcript proofreader here.
Recommended reading: How To Become a Court Transcript Proofreader
Frequently Asked Questions About Proofread Anywhere
Below are common questions about Proofread Anywhere.
Is proofreading a legit business?
Yes, proofreading is a legitimate business. Many people and companies rely on professional proofreaders to make sure their written content is free of errors and ready for publication. Proofreaders work with a variety of content such as books, articles, and websites. By taking courses like Proofread Anywhere, you can improve your skills and increase your chances of success in the proofreading industry.
Is Proofread Anywhere real? Is Proofread Anywhere a scam?
Proofread Anywhere is a real and legitimate online platform selling courses to improve your proofreading skills and establish a proofreading business. It was created by Caitlin Pyle, an experienced proofreader and entrepreneur. The overwhelmingly positive online reviews and the large student Facebook group show the program’s quality and legitimacy.
What does the Proofread Anywhere course offer?
Proofread Anywhere has comprehensive online courses that train you in the art of proofreading. The courses not only give you necessary proofreading skills but also guide you on how to set up a freelance proofreading business.
How long does it take to complete the Proofread Anywhere course?
The average time to complete the Proofread Anywhere General Proofreading course is under one month.
The time it takes to complete the Proofread Anywhere course will vary, though, depending on your individual learning pace and time commitment. The course is self-paced, so you can go as fast or slow as you would like. Some students may finish the course faster, while others may take more time to digest the material and practice the techniques.
Remember, you have lifetime access to the course as well!
Can you really make money proofreading? How much money can you make after taking Proofread Anywhere?
Yes, you can make money as a proofreader. However, like any freelancing work, your income will depend on various factors such as your experience, expertise, and the demand for your services. After completing the Proofread Anywhere course and gaining some experience in the field, you can potentially earn a steady income from proofreading work. The exact amount will depend on your personal success in finding clients and projects.
What kind of support can I expect after completing the Proofread Anywhere course?
After completing the course, students have access to several support resources, such as an online community for help and networking as well as finding proofreading job leads. Also, there is lifetime access to course updates.
Is there a Proofread Anywhere coupon code?
There might be Proofread Anywhere coupon codes or discounts available at certain periods. To get the latest information on promotions, it’s a good idea to keep an eye on the official Proofread Anywhere website and their social media channels. Also, if you sign up for the free training workshop, there is a very good chance that you will get a discount as well (highly recommend doing this as the free training is very helpful).
What is transcript proofreading?
Transcript proofreading is the process of reviewing and correcting written transcripts, which are records of spoken events such as interviews, speeches, or legal proceedings. A transcript proofreader checks accuracy and consistency, correcting errors in grammar, punctuation, spelling, and formatting. This specialized skill set usually requires extra training, and Proofread Anywhere offers a course focused specifically on transcript proofreading called Transcript Proofreading: Theory and Practice™, to help you develop these skills.
Proofread Anywhere Review – Summary
I hope you enjoyed this Proofread Anywhere review.
Proofread Anywhere is a very helpful online course designed to train you in the art of proofreading so you can transform this skill into a full-time or side income. Whether you want to make extra income or start a full-time business, this course aims to equip you with every necessary skill for spotting errors in documents and providing quality feedback.
Here’s a quick Proofread Anywhere review:
This is an in-depth course covering all aspects of how to become a proofreader.
There is a supportive community and there are resources for continuous learning.
The course helps in improving proofreading skills, in case you are new.
There are lots of practice questions so that you can spot mistakes once you start proofreading.
The course is extremely helpful and I think it’s a great choice for anyone who wants to become a proofreader.
Don’t forget, there is a free workshop where you can learn how to become a proofreader. You can sign up for free here.
What other questions do you have for my Proofread Anywhere Review? Are you interested in becoming a proofreader?
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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.
A recent Forbes article reported that the average American has $65,100 in their savings account, but averages are skewed by outliers. A better representation of how much money Americans have in their savings account is the midpoint value, also known as the median. The median savings amount for American households is only $5,300.
Setting financial goals is one of the best ways to improve your financial health and have a secure financial future. If you’re closer to the median savings amount or have far less in your savings account, it may be time to start setting financial goals.
We’re here to provide you with a five-step plan to set financial goals that can help you increase your savings, plan for your retirement, and provide you with some extra funds to treat yourself.
Key takeaways:
Financial goals are personal and professional goals designed to improve your financial well-being.
Financial goals can be short-term, medium-term, or long-term goals.
Financial goals can help you build wealth, but it’s also important to set aside money to treat yourself every now and then.
What Are Financial Goals?
Financial goals can vary depending on who you ask, but essentially, they’re personal and professional goals you set to improve your financial well-being. Good financial goals will allow you to work toward a life with less stress about your finances. These goals also allow you to spend money on the things you enjoy without feeling guilty.
5 Steps for Creating Financial Goals
Getting your financial goals in order can seem overwhelming, which is why it’s a good idea to map it out and have some structure. Below, we provide five steps to help you design financial goals that work for you. These steps allow you to focus on what matters most while also keeping you motivated to stay on the right track.
1. Discover What Inspires Your Financial Goals
Financial goals can take some time, so it’s helpful to find something that will help keep you motivated throughout the process. To start, make a list of what you want to achieve and details for why these items are important to you. For example, you may include:
“I want to save enough money to have my dream wedding.”
“I want to build an emergency fund to afford to pay my bills should I lose my job.”
“I want to start a retirement fund so I can enjoy my retirement by finally traveling the world.”
“I want to pay off all of my debt so I can experience less stress and spend without feeling guilty.”
Reminding yourself of your goals and what inspires you are actions that psychologists recommend while pursuing what matters most to you. While vision boards may seem like pseudoscience, Tchiki Davis, Ph.D., explains, “Initial research suggests [vision boards] can help us more easily reach our goals. This may be due to how vision boards help us gain self-awareness and self-reflect on what is important to us.”
2. Make a Plan for Your Situation
The second step is to make a plan that’s specific to you because everyone’s financial situation is different. Take a look at where you currently are with finances to start making a plan. This will allow you to create a plan that will allow you to reach your short-term financial goals and ones that may take a little longer.
The following are some financial goal examples, along with an idea of how to prioritize them.
Create a Budget
Learning how to create a budget and then implementing it is a great short-term financial goal. A budget is how you give your financial goals a strong foundation. Your budget will help you monitor how much you’re spending and decrease the likelihood of overspending. It will also let you know if you have extra money to spend on other things.
Plan for Retirement
Planning for your retirement is a long-term financial goal, but you get the most value out of it by starting sooner rather than later. Experts at Vanguard recommend that you start investing in your retirement funds in your 20s if possible. When you start investing earlier, your money has more time to compound, giving you more retirement funds. If you start your retirement later, don’t worry. By putting a little more into your retirement, you may have the ability to catch up for lost time.
Start an Emergency Fund
Unfortunately, we don’t know when an emergency will happen, so a good financial goal is to start an emergency fund. Many financial planners recommend[1] saving at least three to six months’ living expenses. This can take some time, but it can provide peace of mind should an emergency arise. As part of your budget, you can save a set amount every month to get closer to your emergency fund goal.
Some expenses to consider:
Rent or mortgage
Utility bills
Groceries
Car payments
Credit card and other debt payments
Pay Off Debts
Having debt can restrict your ability to achieve your financial goals. Your personal situation should determine how you prioritize this within your budget and other goals. When you get out of debt or decrease it significantly, you can save money on interest fees and improve your credit. This will free up additional funds and help you pursue more of your financial goals.
Begin Investing
Investing outside of your retirement fund is one way to generate passive income or have more money for your other financial goals. Your investments will ideally grow over time. If you invest in dividend stocks, these pay out money each quarter based on company profits. You can also continue investing and holding onto your investments to sell later for additional funds.
Get a Higher-Paying Job
Finding a higher-paying job is one financial goal many people may overlook. When you make more money, you have more resources to achieve your short- and long-term financial goals. It’s something to consider if your current job doesn’t allow you to budget properly, save for retirement, pay off your debts, or pursue your other goals.
Before searching for a new job, it’s also helpful to consider how happy you are at your current job. One benefit of financial goals is that they can help decrease stress and increase happiness. Leaving a job that makes you happy may counteract the benefits of making more money.
3. Map Out S.M.A.R.T. Financial Goals
It’s easy to get off track with your financial goals, so it’s helpful to organize your individual goals to improve your chances of success. A popular strategy for creating and managing goals of all types is to make S.M.A.R.T. goals. S.M.A.R.T. stands for:
Specific
Measurable
Achievable
Relevant
Time-bound
If your goals are vague and unrealistic with no time frame, they will be much harder to achieve. Using the S.M.A.R.T. goal strategy helps you make a plan relevant to what you want to accomplish within a realistic amount of time.
Let’s say you want an emergency fund with $5,000. An example of turning this into a S.M.A.R.T. goal would be, “By next year, I’ll have an emergency fund of $5,000 by saving $416.66 each month.”
If these numbers are unachievable for your financial situation, that’s OK. Make adjustments and see what works for your financial situation and your budget.
4. Keep Track of Your Goals
Keeping track of your financial goals can help you stay on the right track while also keeping you motivated. The S.M.A.R.T. model includes measuring your progress, and this is where the motivation comes from. Whether it’s paying down your debts, adding to your emergency fund, or saving for retirement, seeing the progress can inspire you to continue.
5. Don’t Overshoot Your Financial Goals
People commonly overshoot their financial goals and leave no room for spending on themselves. Treating yourself as you pursue your financial goals is important because it can feel like a chore. Sometimes, it’s also difficult to maintain motivation as you pursue your long-term goals. Part of setting financial goals is having extra spending money to do something fun occasionally.
Maybe you want to save money for a big purchase like a relaxing vacation or new furniture. Be sure to include these as you create your goals. When creating your monthly budget, you can also create space for extra spending money to make sure you take the time to enjoy yourself each month.
Improving Your Credit Is a Financial Goal Priority
If you don’t have a good credit score, it can be difficult to achieve your other financial goals. Lower credit leads to additional interest fees, higher deposits, and potentially more debt. Making your credit a priority will improve your ability to pursue all your other financial goals.
Credit.com has a variety of credit tools and services to assist you while you work on your financial goals. You can start by getting your free credit report card to see where your credit stands. We also offer our ExtraCredit® service, which includes credit monitoring, rent and utility reporting, and more.
Who doesn’t like a little something extra? While there are some benefits your employer is required to provide you, they may also give you additional perks in the form of what are known as “fringe benefits.”
Here’s a look at some examples of fringe benefits, how they work, and whether they’re taxable.
What Are Fringe Benefits?
Typically, employers compensate their employees with a traditional paycheck and some additional benefits that they must provide, such as workers’ compensation coverage or unemployment.
But in an effort to keep workers happy, loyal, and motivated — attract new talent — many organizations also offer fringe benefits such as health insurance, childcare assistance, and employee stock options. These extras are above and beyond a regular paycheck and are often included in a hiring package. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.
Common Fringe Benefits
Here’s a look at some common fringe benefits:
• Accident and health benefits: Provides help with health-related costs not covered by your traditional insurance plan.
• Athletic facilities: Provides access to on- and off-site athletic and gym facilities.
• Dependent care assistance: Helps you pay for some care-related expenses for qualifying dependents, including children, a disabled spouse or legally dependent parents.
• Adoption assistance: Provides payment and reimbursement for expenses related to adopting a child.
• Employee stock options: Gives employees the chance to buy a certain amount of company stock at a specified price and by a certain time.
• Group-term life insurance coverage: Allows employers to provide their employees with up to $50,000 in tax-free insurance. Coverage is traditionally 1-2x salary, where the first $50,000 is received tax-free, then any additional coverage is taxed.
• Health savings accounts (HSAs): Provides tax-advantaged savings accounts for employees enrolled in high-deductible health plans. These accounts may receive contributions by the employer or simply be funded on a pre-tax basis by the employee to help them pay for dental and health care costs.
• Transportation and commuting benefits: Helps employees get to and from work, such as through the use of a company vehicle. Employees may also be able to have qualified transportation costs taken from their pre-tax pay, which reduces their taxable income.
• Tuition reduction: Allows employers to chip in for the cost of tuition to educate an employee and sometimes their spouse or children.
• Meals: Provides employees with free on-site food and snacks.
For a more complete list of fringe benefits, check out IRS Publication 15-B .
Are Fringe Benefits Taxable?
Generally speaking, most fringe benefits are subject to employment taxes. The taxes are taken out of your paycheck and reported on your annual tax return. (If you’re a contractor, you’ll typically report fringe benefits on a Form 1099-MISC. If you’re a non-employee, fringe benefits are not subject to employment tax.)
That said, the IRS does consider some fringe benefits nontaxable. This means they’re not subject to federal income tax withholding, Social Security, Medicare, or federal unemployment tax, nor must they be reported on your tax return. Often, in order for a fringe benefit to avoid being taxed, certain qualifications must be met.
Here are some extra perks that are considered nontaxable (the full list is available on the IRS’ site:
• Retirement planning services
• Adoption assistance
• Meals and snacks (If certain conditions are met)
• Health insurance (up to a certain dollar amount)
• Group-term life insurance (up to a certain amount of coverage)
• Commuting or transportation benefits
• Dependent care assistance (up to a certain amount)
• Awards given for achievements
Tax-Advantaged Fringe Benefits
Some fringe benefits allow employees to direct a certain amount of funds pretax toward qualified accounts and expenses, which can lower their taxable income.
These tax-advantaged benefits are (somewhat oddly) known as “cafeteria plans,” because they allow employees to select the benefits they want. You must be permitted to choose from at least one taxable benefit, like cash, and one qualified benefit. Examples of qualified benefits include:
• 401(k) plans
• Accident and health benefits, excluding Archer medical savings accounts and long-term care insurance.
• Adoption assistance
• Dependent care assistance
• Group-term life insurance coverage
• HSAs (distributions from HSAs can be used to purchase long-term care coverage.)
There are, predictably, a few more nuanced rules about cafeteria plans and employee tax treatment. While most regular employees receive normal tax treatment, other employees or contractors may not be treated as such for cafeteria plans.
If you have tax-related questions about fringe benefits, it might be a good idea to consult your attorney or preferred tax specialist. 💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
Planning Around Fringe Benefits
Employers typically offer fringe benefits to make the work environment better for the people who currently work there and more desirable for prospective employees.
Some benefits may hold a lot of appeal. For example, 401(k)s are a powerful tool for saving for your retirement. But others may be less appealing. For instance, you may decide you don’t want to use FSAs, which often restrict how much you can contribute and when you have to spend the funds.
It’s common to choose which fringe benefits you want when you’re starting a new job and filling out your initial paperwork. However, many companies will allow you to go back and make changes if you decide later that some choices aren’t right for you.
The Takeaway
Fringe benefits can run the gamut from use of the company car to adoption assistance to employee stock options (to name just a few examples). These extra perks are in addition to your paycheck and can be a powerful way to keep workers happy and loyal while also attracting new talent.
Generally speaking, most fringe benefits are taxable, though some — like retirement planning assistance, athletic facilities, and on-site meals and snacks — are not. Some fringe benefits will even allow you to direct a portion of funds pretax toward qualified accounts and expenses, which can help lower your taxable income.
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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.
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