The chilly season is upon us. If you live in North America, you’ve probably had at least a few cold nights by now. Up in my neck of the woods — in the Boston area — we’ve had our central heat running for a few weeks. Which means we’re in full swing winterizing, with an eye to keeping the heating bills low.
Over the past few years, we’ve actually gotten pretty good at this. In New England, winter heat can eat up a big part of a family’s budget. Our heating bills used to run over $500 a month; last year, we had them down to $250 or less. This year, I’m hoping to go even lower.
No, we don’t live in a refrigerator. Our house is pretty comfortable all year round. Here’s how we keep the bills low.
Invest in Insulation and Efficiency
Small changes can have ripple effects, but big changes are worth even more. Last year, we had our walls insulated with blown cellulose insulation. We also replaced our 40-year-old oil burner with a high-efficiency natural gas system.
These home improvements aren’t cheap. Since they’re good for the environment as well as your budget, though, there are often government grants and loans available to help make them more affordable. We didn’t have the savings to do this, so we took out a 0% loan through our state’s energy-efficiency program. The loan payments are far less than the immediate savings on our heating bills. The upgrade is paying for itself already, and will continue to do so long after we’ve paid off this loan.
Of course, I used the savings from lower heating bills to accelerate paying off my higher-interest debt. I wouldn’t normally suggest taking out a loan as a step towards financial health, but in this case it clearly saved us money. It also helped shrink our whole household’s environmental footprint.
In addition to your heating system and your home insulation, you may want to think about upgrading your windows.
To find out what big-ticket investments will pay off, you can schedule a free energy audit through your utility company. They’ll send someone to your home who will walk through the house and give you a full report on ways to save energy and money. When we had ours done, the nice young man also replaced all our lightbulbs with compact fluorescents — free of charge.
Bundle Up
There’s no need to keep your house balmy enough for T-shirts all year. Make sure you and your family have good, comfortable warm clothing and don’t be afraid to use it.
When I was 21, I had a roommate who would turn the thermostat way down and walk around our chilly house wearing a winter hat and clutching a hot mug of tea. At the time, I mocked her with my friends as we lounged around their toasty living rooms. Now I’ve become that roommate. I’m always turning the thermostat down and telling the kids to put on a sweater.
I don’t want anyone here to feel cold — I hate being cold myself — but I’ve learned that wearing warm clothes is a cheap and easy way to stay cozy. Best of all, you can create your own personal heating zone. Don’t like it so warm? Take off a layer. There’s no fighting with your spouse about how warm to keep the living room.
Not that we keep it frigid. I set our thermostat in the mid-60s during the day, and turn it down at night when we’re all tucked into warm beds anyway.
If you don’t already have one, get a programmable thermostat. They make it easy to adjust the heat for different times of day automatically. You don’t have to worry about remembering to do it — it just happens.
Bundle the House Up, Too
Don’t just bundle yourself up. Adding layers to your house will make it feel warmer even if the thermostat stays at a modest temperature. I have a nice collection of Oriental rugs that I lay down this time of year, which keeps the hardwood floors warmer on little bare feet. This is essential because small kids lose their socks at an amazing rate, but it’s great just for giving the whole room a warmer feel, too.
I also put up window plastics and insulated curtains to cut down on drafts from the windows. If you haven’t done it already, spending a few hours going around your windows and doors with some draft-sealing putty or caulk will make a huge difference to how comfortable your home is in the winter.
Use Heating Zones
Chances are, you’re not using every part of your house all day long. If you live in a modern house, you probably already have several “heating zones” so you can program your thermostats to different temps in different areas.
If you live in an older house like mine, you probably have just one thermostat that controls the whole system. That means that if it’s 64 degrees in my living room, the heat kicks on. If it’s 65, the heat shuts off because it’s warm enough. Doesn’t matter what the temperature is in the rest of the house. There’s no way for the heating system to know that.
To solve this problem, I’ve created a bunch of “heat zones” in my house. By keeping the bedroom doors closed upstairs and hanging drapes in the hallway doors downstairs, I cut our drafty hallway and staircase out of the heating system entirely. Now the radiators in each room only have to heat those rooms, not those rooms plus several hundred square feet of largely unused hallway space.
I was shocked at the difference this made to how warm the house felt. Hanging the drapes to keep the heat in the rooms and out of the hallway is new this year: I just did it a few weeks ago. I won’t know for months yet whether it pays off in reduced heating bills or not. But the comfort factor was immediate and obvious.
The other heating zone change I made was to my workspace. I’m the only person home most of the day, and I spend most of the day in my office. Rather than keep the whole house toasty, I’ve lowered the temp on the main thermostat and set up a space heater in my office. This way, I can be as warm as I like without wasting a lot of energy warming up empty rooms.
What do you do to keep your heating bills low in the winter?
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I’m not really sure about this whole expensive holiday gift thing. I know it’s supposed to be a way of showing love and appreciation, but I think it is too much pressure. Why not give a cheap holiday gift that they will actually use?
Plus a lot of people struggle with finding a Christmas gift for their loved ones, regardless of price.
Some people say that the best gifts are homemade, but not always. I am going to show you 101+ of my favorite cheap but thoughtful Christmas gifts ideas for someone who is on a budget or does not want to spend too much money.
These cheap Christmas gift ideas are for everyone on your list, from the family member you don’t know what to get them to the coworkers who always complain about not getting anything.
You will find the best advice on how to find the perfect present without breaking your budget.
The holidays are right around the corner, and it is time to start thinking about those gift lists! The holidays are about spending time with those closest to you, for many Americans it can be exceedingly difficult to find a decent gift for those from your close circle.
Why Cheap Christmas Gift Ideas
I know that you’re looking for some great gift ideas this year and we have you covered: adults, teens, kids, fashionistas, athletes, teachers, plus so much more!
There are so many inexpensive Christmas gift ideas that it can be hard to know where to start. This article will help you find the perfect present for everyone this holiday season.
The price range will be cheap Christmas gifts under $10 or nice cheap gifts for Christmas under $20. Some items maybe a little bit more expensive, but well worth the extra cost based on the idea!
Find over 250 cheap last-minute Christmas gifts (delivered by Amazon) on this list that I know the recipient will love!
Cheap Christmas Gifts for Adults
Easy cheap Christmas gifts for adults are those that can be afforded by the budget-conscious and the best part is still are awesome gifts.
These gifts usually have a handmade flair or personal touch to them to reflect the recipient’s personality.
To find cheap Christmas gifts for coworkers, you can pick any present on this list.
DIY Jewelry: This is one of the best ways to make multiple gifts for cheap. You can make many types of homemade jewelry.
Mug with their name on it: Make them smile with a customized mug just for them!
Coloring Books: Coloring isn’t just for kids. Adult coloring books are extremely popular and inexpensive to pick up an adult coloring book and colored pencils.
Magazines Subscriptions: Some ideas include National Geographic or Smithsonian. Great way to find new inspiration and ideas.
A Photo Album of your Memories: This can be a physical or digital photo album. A simple way to portray your friendship and experiences together.
Journal: Write down thoughts, ideas, or quotes that they love in the journal. Pick up a plain journal at Target for $5-$10.
Stickers: Add a few stickers from your collection, some ribbon, and scrapbook papers to decorate it!
Movie Night: A movie night with popcorn and some of their favorite movies is a thoughtful, inexpensive gift that everyone will enjoy. Buy a streaming movie or pass to the local cinema.
Handmade Gifts: If you have a knack for the arts and crafts, making a handmade gift is not only thoughtful but also can be very inexpensive!
Coffee or tea from their favorite coffee shop: There’s nothing better than a cup of joe or tea to start the day off right.
A Bouquet of Flowers: Get a bag of those colorful hair ties, and tie them to the stems for an extra special touch!
Collage Frame: A collage frame can be used as a picture frame, or it can be used as a decoration on the wall.
Holiday Decor: This is an affordable and practical gift for someone who loves to decorate their home for the holidays.
DIY-ed Ornaments: Get creative with this craft and let their imagination run wild!
Homemade Treats: Who doesn’t love cookies, chocolates, or homemade baked goods? Even canned salsa or jelly make great gifts!
Stockings: With any number of crafts available to make-you can’t go wrong with a stocking full of goodies for the holidays.
Cookies: Bake up some of your favorite holiday cookies and package them in a festive container for a sweet treat. Perfect to host a cookie exchange as a fun experience!
Comic Books: It can be no surprise to some adults when they think of all the hard work that goes into creating a comic book and see the end product. What’s even more surprising is that more adults don’t try them.
Handmade Gifts from Kids: If your child loves to paint, draw, or make things with their hands-this is the perfect opportunity for them.
Cheap Christmas Gifts for Teens
Coming up with Christmas gift ideas for teens can be tough. Teens are often too old to play childish games like Monopoly or Jenga, yet they’re not quite ready for more grown-up games like Trivial Pursuit.
There are a lot of inexpensive gift ideas for teens from the mall, but teens often want something more personal and unique to show they are maturing.
If you are looking for cheap gifts for teens, you can try any of these present ideas.
Gift cards are always a huge hit with this age group! Double bonus if you can make it a fun way to spend some time together. Make sure that your teen is comfortable with this idea.
iPod Touch / iPhone / iPad Accessories: A new case, screen protector, and a few apps are always great. Whether it’s to show off or just something fun, this is a great idea.
Journal: This gift will help your teens reflect on the year and all of the good things that happened!
Fun Colors to Write With: The festive design on these pens will make teens want to use them all year round. Fun gel pens are wonderful gifts for all ages; they are inexpensive and come in a variety of colors.
Fashion Designer Scarf: This gift will help your teen express his or her individuality while also staying warm during the winter months.
Room Decorations: Checking out new colors and themes for the room is a fun way to spend some time together. Plus they may be ready for a change from their younger decor.
Makeup: Teens love makeup and skincare items, so make it their job to pick out a few new things they want.
Candles: Having a nice scent can help relax and soothe your teen before bedtime. These versatile gifts come in many shapes. It is also how teens feel more grown-up.
Hand-Painted Mug: Handpainted mugs are perfect for all the coffee and tea lovers in your house, and they are so easy to make! This can be an experience gift, too!
Handmade Jewelry: this is an affordable yet creative holiday present
Trendy Socks: These are always a great gift for anyone. Not only does it keep your feet warm, but it can be fashionable too!
iTunes Gift Card: Let them download a favorite song or album.
Movies: Movies are a great gift to give especially if it’s one of their favorites or they’ve been wanting to see it!
Clothing: The recipient will love getting some new clothes-especially if they’re trendy and stylish, or their favorite store has a sale going on that you know about.
Special Treat: A special treat is a great way to show someone that you care about them and appreciate all they do.
Cheap Christmas Gifts for Kids
Kids are the most precious gift of all. They’re also notoriously hard to buy inexpensive presents for – they normally want gifts that are outside your price range! Fortunately, these Christmas gifts will have your child smiling from ear-to-ear.
Cheap easy Christmas gifts for kids are especially not difficult to find and you have plenty of inexpensive gift ideas, – plus your bank account will thank you for it.
At the end of the day, kids don’t really care what it costs as long as they like it.
Stuffed Animals: Give them the gift of a new favorite toy that they can hug and take with them everywhere-just make sure to tuck in an extra battery for their new favorite toy.
Paper & Stickers: A package of paper and stickers is perfect for kids who love to create their own projects or write notes, letters, or holiday cards. This pack is also perfect for young ones who are just learning how to write.
Colored Pencils & Crayons: Colored pencils and crayons are a fun way to keep kids focused on their art. These pens will help them create original masterpieces.
Customized Shirts: A new shirt is a great way for kids to express their personality, and it can also be an easy outfit of the day solution when they’re running out the door.
Puzzles: Puzzles are a great way for kids to learn new skills and stay entertained on rainy days. They also make excellent stocking stuffers!
Ice Cream Variety Pack: A yummy variety pack of ice cream will make their day.
Play Doh: Kids love play doh, and it’s a great way to keep them entertained for hours! It also makes a great stocking stuffer.
Colorful Pens: Kids love to color, so give them the opportunity with some bright new pens! They’ll have fun for hours doodling on all their things.
Slime: Slime is all the rage right now, and kids can make their own with this kit.
Sippy Cups: Kids love sippy cups because they’re fun and easy to drink from! They also come in a variety of designs and colors.
Kitten: They will love this sweet little creature that they can cuddle up with in winter.
Fidget Toys: Fidget toys are a great way to keep kids entertained and focused with some fun. They come in a variety of colors and shapes, making them perfect for all ages!
Star Night Light: This was one of my daughter’s favorite gifts (even her older teen brother was jealous). Huge hit to light up the wall at nighttime.
Remote Controlled Car: A remote-controlled car is a great gift idea because it can be played indoors or outdoors. It also makes for hours of fun!
Make Your Own Soap Kit: This kit will allow your child to make their own soaps at home with some fun ingredients. They have a variety of colors and scents available which they can use to customize the soap for their own preference.
Board Games for Kids: Board games are a great way to keep entertained while bonding with their friends and family. They come in different levels of difficulty, making them perfect for all ages.
Nature Exploration Set: A nature exploration set will help to inspire your child’s curiosity and creativity. The kit includes a journal, binoculars, magnifying glass, and more!
NERF: NERF toys are classics for kids of all ages. They’re great to take on family vacations or just to play with friends.
Dolls: Dolls are a classic toy for girls and they come in all shapes and sizes. From Barbie to Baby Alive, there’s plenty of options available!
Spirograph: A Spirograph can keep kids entertained for hours. They design pictures with the help of an included pen and paper.
Rock Painting Kit: A rock painting kit will allow kids to express their creativity by decorating rocks.
Bead Kit: A beading kit is a great way to teach kids about colors and patterns. It also teaches patience as they work with the small beads
Sewing Kit: Sewing kits allow kids to create their own stuffed animals and clothes for themselves.
Drawstring Backpacks: Helpful to keep their stuff organized on outings, vacations, or events when the kids need to be entertained.
Kids love getting gifts, and these cheap Christmas gifts ideas are perfect for any child!
Best Cheap Gifts for the Foodie Cook
One of the most difficult parts about shopping for a gift is coming up with creative ideas.
This list is full of affordable gifts is perfect for that friend or family member who loves to cook and bake!
Here are some of the best cheap gifts for the foodie cook.
Charcuterie Board Set: This is the perfect gift for the foodie that loves to cook with meat. It provides an assortment of meats, cheeses, fruits, and bread in a beautiful wooden tray.
Mason Jar Set: This gift is perfect for a friend or family member who loves to cook. The set includes six pint-sized jars with lids and can be personalized with the recipient’s name.
Salt and Pepper Grinder: This set comes with salt and pepper grinders for the foodie who loves to cook.
Gourmet Spices: Spice up a friend’s cooking experience with this assortment of spices from around the world.
Frother: Perfect for milk frothing for coffee, lattle, milk shares, hot chocolates, and matcha powder. You need one of these and everyone else around you does too!
Mini Stand Mixer: This is a perfect gift for a friend who loves to cook and bake! The mixer comes with attachments such as a whisk, dough hook, and flat beater.
Fondue Pot: This pot is perfect for families that enjoy eating together! The set includes a fondue pot, forks, skewers, dippers, and dipping sauces.
Cookie Press: This press is perfect for a friend who loves to bake! The set includes a cookie press, dough sheet mold, rolling pin, and recipes.
Oven Mitts: You don’t want your foodie gift receipeint to burn their hands. Replace their worn-out oven mitts with one of these stylish oven mitts.
Hot Sauce Set: Every foodie needs some hot sauce in their fridge. This set includes 3 bottles of the hottest sauces around, plus a recipe book for beginners.
Spice Rub Set: Give your foodie friend the gift of spices especially if they love to grill or have a Traeger! This set includes salt, pepper, cumin, chili powder.
Teapot Set: This is for all those tea drinkers out there. This set includes a teapot and infuser ball.
Tea Bags: Add on to the teapot set and deliver a set of tea bags with a bunch of different flavors.
French Press: French press brewing prevents an over-extraction of flavors; the grounds only add flavor regardless of how little or how much coffee is steeped. Expand their coffee experience!
Coffee Grinder: This is for all those coffee drinkers out there who like to make their own custom blends.
Bamboo Cutting Board: Over time, we all have to replace our words cutting boards at some point. So, this makes a chop-worthy gift.
Tea Towels: These are great for drying dishes, wiping counters and so much more. Find a catchy saying they will love to display!
Sourdough Banneton Proofing Basket: If they are hooked on the sourdough trend, then they need one of these to elevate their breadmaking skills.
Bread Lame Scouring Tool: A must for anyone who makes sourdough breads!
Batter Bowl: This is a great kitchen tool for mixing batters, making pancakes, and more. It will be a welcome addition to the kitchen!
Flour Sifter: This is another one of those necessary tools in the kitchen.
Coffee Mug: For coffee lovers, this is a great gift idea!
Salt Cellar: This is a nice addition to the kitchen and it will hold those hard-to-reach salt and pepper.
Cheese Plane: This tool makes cutting cheese into perfect, uniform slices – making cooking and serving a breeze.
Saute Pan: This pan is great for frying, sautéing, and more! It’s perfect for the average home cook or budding chef.
Zester: This handy tool is perfect for adding flavor to dishes with just the slightest touch.
Meat Thermometer: This is a tool that can’t be beaten especially for the grill master. This one is by far the best on the market!.
Pizza Cutter: This is an essential kitchen tool for any pizza lover!
Ice cream scoop: This ice cream scoop is perfect for any ice-cream lover. It comes in 2 different sizes of scoops and they come in a variety of colors.
Cooking Class: Give them the gift of cooking skills-it’ll be something they can use for years to come!
Best Cheap Gifts for the Homebody
Holiday shopping can be a stressful time, but not to worry. Here are some great gifts for the person who has everything and doesn’t want anything.
Consider these cheap, homey gifts that will please any loved one or host.
Weighted Blanket: For those who love to cozy up with a blanket, this one might be the perfect weight and size for them.
Hot Cocoa Mix: This is an easy way to ensure that your loved ones have a delicious treat from their kitchen.
Wool Socks: This is a great item to have on hand for the winter months.
Tea Infuser: This one will help your loved ones in their journey of self-discovery.
Homemade Snow Globe: Grab a this snow globe kit and make your loved ones their own little winter wonderland.
House Shoes: A pair of these comfortable shoes will be something your loved ones can wear around the house.
Cozy Blanket: These blankets are made to keep you warm and cozy during those cold winter nights.
Popcorn Popper: This is a fun gift that they will all enjoy especially on movie night.
Jigsaw Puzzle: Give them a puzzle that will keep their mind sharp and occupied.
Board Games: More than likely they prefer to have people over to enjoy good old-fashion board games and a night of laughter with friends!
Comfy Pajamas: A new set of cozy pajamas is sure to be a hit with the kids.
Robe: A new robe is a great gift for those who love to lounge around in their comfiest clothes.
These are some Cheap Christmas Gift ideas for those who are on a budget!
Best Inexpensive Gift Ideas for Spa Lovers
The perfect gift for anyone who loves to pamper themselves is a spa gift card. Spa gift cards are the perfect present because it gives the recipient freedom over what they would like to do during their stay.
There are many different spa gift cards available on the market, so it is easy to find one that suits the recipient’s personality and budget.
If you can’t find a group of people to go in on this idea, then turn their home into a spa experience.
Bath Salts: These are perfect for the person who loves to relax and take baths. All they will need is a nice scented candle or bath bomb, their favorite book, and these salts to make themselves feel like royalty.
Candles: These are perfect for the person who loves to relax and read, or just has a nice smelling home. There are many different scents available so it is easy to find one that suits the recipient’s personality.
Aromatherapy: This gift idea is perfect for those who want an inexpensive yet thoughtful gift. There are many aromatherapy oils to choose from, but the two most popular would be lavender and peppermint
Diffuser: These are perfect for someone who enjoys a deep and restful sleep, as well as those who enjoy shut-eye at night to take away any stresses or worries. A few drops of these oils in a diffuser or humidifier will soothe the recipient and ease them into relaxation before bedtime.
Tea: This is perfect for the person who enjoys a good cup of tea. A nice box of loose leaf teas is sure to be appreciated and used for many, many years to come!
Cookies: This may seem like a typical and uninspired gift that most people would choose, but it is thoughtful and they will appreciate the thoughtfulness.
Scalp Massager: This is great for those with a sensitive scalp. It helps to soothe the skin and will leave them feeling relaxed
Shower Speaker: This is a great gift for someone whose favorite song isn’t Top 40. They will be able to listen to their music while they shower.
Manicure Dip Starter Kit: This is a great gift for those who love to paint their nails
Hyaluronic Acid: Help maintain the hydration of the outer layers of skin, which helps to improve its appearance.
Hair Mask: This is a great gift for someone who loves to pamper themselves, especially if they are in need of moisture.
Lip Sleeping Mask: A gentle overnight moisturizer for dry, sore lips.
Microfiber Hair Towel Wrap: This is a great gift for someone who spends a lot of time in the pool or at the beach. It is quick and easy to help dry your hair faster.
Handheld Massager: Seriously, this is the best gift ever. Plus the cost has been coming down each year.
Cheap Gift Ideas for the Fashionista
If you are looking for an affordable, fashionable gift idea that is also fun and creative then this list has something to offer you.
Here are some ideas for the fashionista on a budget.
Scarf: Scarves are always in style and can be found anywhere. You can get a nice one for only about $25, depending on the brand.
Tote bag: A tote bag is a necessity for school, the mall, and even just running errands around town. You can find them anywhere from $5-25 depending on what type you want.
Pandora Bracelet: The Pandora bracelet is a beautiful piece of jewelry that can be bought with any budget in mind, and it’s a great option for people who want to give something that will last. Great gift to add charms each year.
Earrings: Earrings can be a great gift for someone you know who is really into fashion. You can find them at the drugstore or even in some clothing stores, and they cost anywhere from $5-20.
Belt: A belt is great for someone who doesn’t have too many accessories, or if you just want to spice up an outfit with a new piece of jewelry.
Hair Clips: Hair clips are a great gift for someone who spends most of their time at home because you can clip them in your hair to keep it out of the way while you do chores. Also, great for those trendy messy up-dos!
Felt Hat: A felt hat can be a great gift for someone who goes to the beach a lot, or just likes wearing hats because it’s cold outside. They last longer than other types of material and they can be a really inexpensive gift.
Jewelry Dish: Find a small dish at the dollar store and decorate with paint or fabric to make it look pretty!
Re-gift Jewelry: Add jewelry from your old collection that you don’t wear anymore (maybe some old costume jewelry?).
Sunglasses: Sunglasses are one of the most popular Christmas gifts, and they can be found cheaply at many stores. I bought a pair for under $15!
Watch: Watches can be found at many stores for a cheap price. Watchmakers are competing to lower their prices as they try and go against the trend of cell phone watches, which is why you can find a nice watch for under $10.
Sweatshirt: A good sweatshirt is a woman’s best friend. It will keep you warm during the winter and can easily be dressed up or down depending on what you’re wearing-It doesn’t have to be too expensive either, with most stores having sales or clearance racks that are perfect for picking up gifts.
Nail Polish: The best thing about nail polish is that you can buy it in a lot of sizes, from the little bottles that are perfect for stocking stuffers to larger ones that come in packages of 5 or more. Great stocking stuffers!
Yoga Pants: We all know yoga pants are a girl’s best friend. But, y’all the prices of these yoga pants are amazing, and did I mention how many I have given as cheap gifts?!?!
Winter Gloves: Some people might think winter gloves are odd to put on a Christmas list, but they make such great stocking stuffers!
Shopping Bag: This is a great present for someone who likes to shop! I know what you’re thinking, “how do they not have one?”
A New Outfit: Even if the person you are buying for is not a fashionista, clothes still make great gifts. And if you know what their favorite style of clothing is then nows the time to indulge them in some new clothes!
Some suggestions are old and some are new, but all of them will be perfect for the person you want to give a gift to.
Cheap Gift Ideas for the Makeup Artist
Check out these cheap beauty Christmas gifts for the makeup artist on your list. These are great for anyone that has a budget of $10 or less.
Makeup: Find out what brands your friends, family members, or classmates like and buy them the makeup in that brand. You can find this information at their favorite retailers or by asking around to see which brands they wear.
Nail Polish: Buying nail polish as a gift is a great idea because you can buy them the exact color they want to wear and it’s usually not too expensive.
Perfume: If your budget is $10 or less, you can buy a nice perfume that smells great and it will be something they use often.
Bath Bomb: If you’re shopping for someone who needs to relax, then a bath bomb is the perfect gift.
Specialty Coffee Mug: You can find these for fairly cheap and they’re something that people will use every day so it’s great. Find a fun coffee mug with an artsy flair!
Lip Stain: Lip stains are a really popular product because they’re long-lasting and come in so many colors. This is perfect for someone who loves makeup!
Makeup Brushes: Any good makeup artist knows the quality of the brush makes a difference. You can find a decent brush at an affordable price!
Silicone Makeup Sponges: These are perfect for applying makeup evenly and providing coverage.
Reusable Beauty Products: For the eco-conscious, find plenty of reusable beauty products. You will be surprised at this list.
Gather all of these makeup supplies and put them together for a creative gift basket!
Cheap Gift Ideas for the Athlete
Sweating is gross, so this guide has come to help! It’s tough when you have an athlete in the family because they are always on the move.
Athletes will have to replace their equipment and clothing because of use.
Here are some nice, thoughtful gift ideas for the athlete on your list!
Water Bottle: Sometimes I feel like I can never have enough water bottles!
A pack of compression pants: I wear them for my sport because they help with the swelling and protect against injury.
New backpack: I use mine all of the time!
Headphones: These allow people to listen to their favorite music or podcast while getting the sweat on.
Full-zip fleece jacket: I love being able to bundle up when it gets cold! This is a thoughtful guide for the athlete on your list for before and after workouts.
Polarized Sunglasses: These help protect eyes from glare and add style to any outfit.
Music Subscription (ad free): This is a great gift for the athlete who loves music!
Yoga Mat: Yoga mats are great because they’re environmentally friendly and also come in a bunch of different colors. Sometimes it’s nice to be able to stretch out and do some poses on your own. Plus the experts say we should stretch every day.
Sports Watch: Preferably with stopwatch and alarm clock. THey need to time those tabata crossfit workouts.
Running Gloves: These are thoughtful gifts for someone who loves the outdoors and running.
Foam Roller: A great gift for the athlete who is looking for a little bit of extra relief.
Folding Bike: This is a thoughtful gift idea for someone who loves to bike ride but doesn’t have space for a bike. This one is more expensive, but a great idea to go in with others on!
Sports Massage Oil: This is a thoughtful gift for the runner, cyclist, or anyone who gets sore muscles. Pick a hand massager to go with it!
Camouflage Pillow: This is a great present for an outdoorsy person who has their head in the clouds.
Good Socks: Have you ever smelled the stinky socks?!?! Enough said.
Sports Tape: The runner in your life will need this present to keep them on the go.
Sports Bra: This is a great present for someone who participates in any activity that requires it! One that fits well and is made of quality materials. Plus an affordable price!
Fleece Headband: This is a great present for the runner in your life who also likes to wear their hair up when they’re not running.
Yoga Pants: This is a great present for someone who likes to keep their activities active. Or just wears yoga pants every single day to be trendy. No one needs to know why! These are my favorite brand.
Athletic Shorts: This is a great present for the person in your life who likes to wear their athletic shorts outside of working out. Plus, come on it’s not like they’re going to be wearing them over clothes so people would notice.
Resistance Bands: These are great for the person who likes to keep their workouts active, but doesn’t have a ton of space.
Light Set of Weights: Everyone needs to have some weight training as part of their workouts. Pick up three or five pound weights to help them reach their workout goals.
Armband for Phone: When you workout, you may want to keep your phone with you to track the steps or distance you worked out. This is an armband to keep your phone and simple enough to change your workout music.
Latest Fad Cookbook: In need of a great gift idea for the person in your life who likes to cook but always seems to have not-so-perfect dishes? This is perfect! Gift them this latest fad cookbook and they’ll be able to make all the popular, Instagram-worthy dishes that you see on TV.
Sneakers: Maybe you are lucky enough to score a pair of comfortable, breathable athletic sneakers on clearance!
I’m sure they’ll be appreciative of any one of these gifts!
Cheap Gift Ideas For Teachers
This list of cheap teach gifts for Christmas will help you choose a thoughtful and useful present that won’t break your budget.
Essential Oil Set: A true favorite for teachers who like to use aromatherapy in their classrooms or at home. This is our favorite essential oil set.
Stress-relief Hand Sanitizer: Teachers are always on the go, so they can use a little help to keep them stress-free. Plus, germs are no fun for anyone!
Personalized Mask Lanyard: Personalize your teacher’s mask with their name, school mascot or work logo.
Tiger Balm: This is a classic product for teachers and athletes alike! Tiger balm will help soothe your aches and pains.
Lounge Pants: Nothing reminds a teacher of home like their favorite TV show! A few years ago my mom gave me a really cute pair of lounge pants and I still wear them. The cut is oversized with pockets for my phone and remote which make it perfect for relaxing on the couch.
Smart Plugs: These plugs can be controlled on an app from anywhere. That means the teacher doesn’t have to worry about forgetting to turn their lights off before they left for work.
Personalized Stamp: A teacher’s stamp of approval is the best kind. This personalized stamp will help teachers quickly get through their paperwork.
Amazon Gift Card: Teachers deserve to take a breather and use some of their hard-earned cash on themselves. A gift card is the perfect way for friends or family members to say “thank you.”
Wireless Headphones: Music is a great way to get the energy going and keep kids psyched up, but it can be tough when they’re working on group tasks. Wireless headphones like these ones from Sony
Day-by-day Calendar: The last thing teachers need is to scramble for a blank piece of paper whenever they want to jot down notes. The day-by-day calendar is perfect because it’s got enough space for writing, but it’s compact enough to tuck into a drawer.
Magnetic Dry Erase Whiteboard: After all the long hours spent at school, who wouldn’t want their own personal whiteboard where they can write, draw, and erase?
Lunch Boxes: There is nothing better than a home-packed lunch. These stainless steel containers are compact enough to carry with you, but they’re also roomy enough to hold a sandwich, fruit, and veggies.
Educational Activity Books: If you’re looking for something that’s not only fun, but chock full of learning activities and information, these books are perfect for further learning.
Cheap Christmas Gifts for Mom or Her in your life
All of these are great inexpensive ideas for buying on a budget
Shopping for a great gift for women or moms can be hard, but not too much with these affordable options.
Little Succulents: This is a cute DIY gift. All you need are succulents, a pot with dirt, and some other accessories if desired.
Bath Bombs: These are great for anyone, including people who enjoy a good bath every now and again. They come in various scents so you can find something that is sure to please.
Chapstick: This is perfect for the person in your life who always has chapped lips or complains about dry skin on their hands when they are outside too long during winter months.
A Book: It may seem like the most unimaginative gift, but it’s perfect for someone who enjoys reading and is looking for something they haven’t read yet. Books are also a great way to get someone hooked on a series so you can recommend their next read.
Slippers: These are perfect for the person in your life who is constantly complaining about how cold their feet are.
Candles: This is a perfect gift for someone who enjoys relaxing or reading after dinner and the scent fills up the whole house with aromatherapy benefits.
A Scratch Off Map: This is a great gift for someone who enjoys traveling or seeing the world. It’s very personalized and they can see how many countries they have visited.
A Coffee Mug: This is a great gift for the coffee lover in your life. You can put anything on it such as their favorite book, television show or artist and they will be reminded of you every time they drink their coffee.
A Memory Blanket: This is a great gift for people who are always cold and it can go with them anywhere in the world because it folds up easily.
A Personalized T-shirt: This is a great gift because it’s very personal and you can put anything on the shirt that has meaning to them such as their favorite sports team, favorite food, or where they have traveled.
A Personalized Finger Drum: This is a great gift for anyone who loves to play drums because it has their name engraved right on the drumhead.
Cheap Christmas Gifts for Men
The following items are inexpensive and will make any man, dad, or boyfriend insanely happy! The cheapest gifts can be the best!
Here are some budget-friendly, manly, fun, and creative ideas for Christmas presents.
A New Shirt: You can find many options for cheap shirts. Grab one with a funny saying he would enjoy for an out-of-the-park win!
Belt: Belt prices vary by brand, but can be found for as low as $10.
Wallet: Wallets can also vary by brand and cost, but often end up being around $15.
New Socks:: Many men enjoy their sock collection. You can always add on to replace their worn-out socks.
A Tie: Ties can be found for as low as $5.
Watch: The watch market is a tough one to navigate, but if you know your partner’s style and budget beforehand it can be easier to find what you’re looking for.
A Tie Clip: You can usually pick one up for $5 or less, and it’s something that he’ll wear every day!
Old-school Vinyl Record Player: Old school vinyl is making a comeback and can be found in all sorts of different styles.
Latest Board Game: Board games are always a fun gift idea. You can pick up the latest hot game for less than $20
A Good Book: A good book is always a great gift idea. You can find them for as low as $5 and books are something that never goes out of style!
Cash: Let’s be honest… most men like to have the cash to spend as they please with no questions asked.
Cheap Christmas Gifts for Friends
You may not have a lot of money for this Christmas, but that doesn’t mean you can’t give your friends something thoughtful.
These inexpensive items may not be the most lavish of presents to give a friend this year, but they are sure to be appreciated and useful!
Whimsy Kit: A Whimsy Kit is a small package that includes activities such as drawing, coloring, and collaging. It can be used in classrooms or at home to relax and have fun.
Poster Board & Markers: A poster board and markers are perfect for making holiday cards to send out or decorating with a festive design.
Fun Scrapbook Pens: Fun pens are a wonderful gift for any age to bring color to their writing, coloring, or journaling.
Scented Candles Kit: Scented candles can be used for the holidays, but they also make a great gift for any time of the year. The smell will bring a warm and cozy feeling into your home.
Gold Foil Blanket: A gold foil blanket is perfect for snuggling up in the car when you are stuck in the car!
Cute Pillow Case: A new pillowcase is a fun way to change things up in your bedroom or living room. The best part about these gifts are that they can be given with other items, like the gold foil blanket or a fun pillow.
Comfy Socks: When it’s cold outside, there is nothing more comforting than a good pair of socks. These make a great gift for someone who spends most of their time at home or just loves to relax.
Bracelets: Jewelry is a great way to show someone you care. Bracelets are not only cute but they go with any outfit!
Christmas Ornament: A Christmas ornament makes for the perfect stocking stuffer. They are usually inexpensive and they can be used year round to decorate your home for the holidays.
Christmas Fun Pack: It is always fun when Santa sends a surprise in the mail, so why not surprise your friends with a Christmas Fun Pack!
Shower Steamers: These will make a great gift for someone who is your best friend, especially if they like to take long showers.
Flashlights: These are fun and practical gifts that will come in handy during the dark days of winter.
Tissue Box Covers: A unique and inexpensive gift for the person who has everything, these tissue box covers will make any house seem a little more homey during cold winter months.
Chocolate: For the person that has everything, you can’t go wrong with some chocolate.
Cheap Christmas Gifts for Coworkers:
A quick, easy, and affordable way to get the perfect gift for your coworkers this Christmas is by giving them a coworker appreciation gift basket.
These inexpensive gifts are great for bosses or employees. They can be personalized so it’s a gift that will really stick with your coworkers.
Planner: This is a great way to give your coworkers something they will really use. They can write down their goals, schedule, and use it as a to-do list.
Personalized Stationery: This is such an adorable idea and can be so much fun for everyone involved. These are the perfect gifts that will make your coworkers feel special this holiday
Putting Green: This is a great gift that they can use to practice their putting skills in the comfort of their own office.
Desk Organizer: A desk organizer is a great way to start your day off with a clean and organized workspace.
Timeless Candle: This candle helps you enjoy the holidays or winter season while relaxing in the office.
Coffee Mug: Every office needs a good coffee mug to stay energized and motivated throughout the day.
Personalized Mouse Pad: You could get them their favorite movie, sport or hobby as a personalized mouse pad and they’ll enjoy using it every day at their office.
Luxury Pen: This is the perfect gift for that person who has everything and needs something to help them write down their thoughts and ideas.
Desk Lamp: A desk lamp can help you read in your office when it’s dark outside so all the daylight hours are available for working on projects or catching up on paperwork.
Ink Pen: This is a great gift idea for anyone who likes to write or doodle. You could get them this as a refillable pen and they can use it to write down their thoughts or ideas.
Laptop Tote Bag: This is the perfect gift for anyone who likes to travel and needs something stylish but functional to carry everything in one place.
Plant pot & planter: This is a great gift for someone who likes to spend time in their garden or on the porch. You could give them this as an opportunity to grow something new and have something beautiful in their office that is all their own.
Journal: This is a classic gift that people like to get for themselves or others. You can find many different styles and sizes of journals, making it easy for you to find the perfect one for your recipient.
Watercolor set: This is a great gift if you know someone who loves to paint or draw. It is an opportunity for them to tap into their creative side while also having the materials that they need to create something beautiful or special for someone else.
Keychain: This is a great gift for anyone because everyone needs keys! You can get them a keychain that has their name on it, or you can get them a cute one for someone they love.
Laptop sleeve: This is a great gift for anyone who has to have their laptop with them at all times. They come in so many different colors and designs, so you can find one that fits your friend or family member perfectly!
Monitor riser: If you know someone who has a desk job, they’re probably struggling to stay focused on their screen. This is the perfect gift for anyone who spends time at work looking down all day!
Best Cheap Christmas Gift of them All – Gift Card:
A gift card is a prepaid credit or debit card that can be spent in any number of stores, restaurants, and other venues as desired by the purchaser.
This option is great for people who are the “hard to buy for” type.
Even a $10 or $20 gift card to somewhere they like is better than a gift to sit on the shelf unused.
Giving a gift card is always an easy way out, but it can be more useful than materialistic gifts they may not use.
You can never go wrong with a gift card to their favorite store!
You can Buy Cheap Christmas Presents that Look Expensive
I know that this time of year can be so busy and stressful. It’s hard to find the perfect gift for everyone on your list, especially when you have a tight budget. But there are so many fun and creative ideas that won’t break the bank.
You’ll find the perfect gift for everyone on your list!
Hopefully, you can find cheap Christmas gifts under $20 or less. Most of these power ideas you can pick up on Amazon or Etsy.
Christmas is often a time where people try to get the best gifts for their loved ones. In order to make these gifts more affordable, it’s smart to think about ways that can lower expenses.
One way to do this is by choosing gifts that can be combined with other items. Or even choosing a no gift Christmas.
It is always fun to give a gift to someone special on Christmas. However, sometimes you feel uncertain about what the perfect present is for somebody else.
We hope you’ve enjoyed our cheap but thoughtful Christmas gift ideas!
With these items, your loved one will have a great Christmas! Be sure to check our blog for more money saving tips!
Need More Inexpensive Christmas Gift ideas?
Know someone else that needs this, too? Then, please share!!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
If you have been trading for a while, then there is a good chance that you have made some trading mistakes along the way.
Unfortunately, it is part of learning how to trade.
After all, trading is a skill that takes time to learn.
Trading mistakes are part of the learning process. I know that sucks to hear, but it is the truth.
The outcome goal is to learn from those trading mistakes.
Then, you can realize what you did wrong so you do not repeat those same mistakes.
However, more than not, it is more common to repeat the same mistake over and over again.
If you are ready to recognize trading errors and learn how to overcome them, then keep digging in. Take notes and adjust your trading plan accordingly.
We will cover emotional trading mistakes, technical trading errors, and option trading mistakes.
What Are Trading Mistakes?
Trading mistakes are errors made by traders when you enter trades, either to purchase stocks or options.
More than likely, you will see the same type of trading error happening over and over again.
Trading mistakes are very common, but they do not have to lead to complete panic.
In order to minimize the chances of making a costly mistake, traders should adhere to their trading strategy. Additionally, traders should always trade with a clear head and stay disciplined.
There are plenty of trading mistakes you can avoid by being smart and adjusting your trading plan where needed.
Why Understanding Trading Mistakes Is Important for Long-term Success
Trading mistakes are the result of traders taking losing trades, which can result in poor overall performance.
Mistakes that occur during trading often include not paying attention to the market, not understanding risk, not having a well-thought out trading strategy, and being bad at managing the trade.
Whatever the reason, trading errors occur and it is how we react to them that matters.
Long-term success in trading is not a goal that can be accomplished overnight.
Achieving long-term success with active trading requires patience, discipline, and practice.
It is easy to get caught up in day-to-day successes and forget to commit to a long-term plan. As traders, it is important to be able to recognize our mistakes so that we can learn from them and move forward.
Top 5 Trading Mistakes
As you will see, we compiled a long list of trading mistakes. Each trader will see some of those trading errors in themselves. Some are small trading mistakes while others are detrimental.
First, we are going to focus on the top five trading mistakes first. This will make or break your success as a trader.
The following are five common trading mistakes that traders make and how to avoid them.
#1 – No Trading Plan
Trading without a plan means you enter a trade without knowing your next step.
No trading plan means that traders are not able to set clear goals, establish risk-reward ratios, and avoid common pitfalls that can occur during a trade. This makes it difficult for traders to know when they should be buying, selling, or holding.
Trading without a plan is risky because it can lead to losses that are much higher than they need to be.
When starting out in trading, it is important to remember that we can only focus on what we can control. This means that we should not worry about things we cannot change, such as the past or the behavior of other traders. Instead, we should form a trading plan and stick to it so that we can succeed in the long run.
Creating your trading plan will happen with many revisions. The goal of the trading plan is to set your overall strategy for trading.
Also, you need to have a specific trading strategy for each trade you enter.
Avoid by: Spending time to develop a trading plan. Revise as needed. Stick to it.
#2 – Risk Management Plan is Missing
A risk management plan is essential for traders and it should be included in any trading plan.
Without a risk management plan, traders are more likely to make emotional decisions that can lead to costly mistakes. For many traders, this is the hardest thing for them to manage.
It is possible to create a risk management plan as your overall trading plan.
In your risk management plan, you must decide (in advance) how much money you are willing to lose based on the amount of profit you perceive to make. For instance, you are willing to risk $300 in order to make $1000.
Many day traders focus on a 2:1 reward-to-risk ratio. Personally, I look for stronger reward-to-risk ratios greater than 3:1.
Avoid by: Understand how risk is a part of making a profit. Set your risk tolerance and do not deviate from it.
#3 – Not Keeping a Trading Journal
One of the most important aspects of successful trading is keeping a journal.
This not only helps you keep track of your trades and performance, but it can also help you remember what worked and what did not. Journaling is so helpful and such an overlooked task.
Your trading journal is the perfect place to take notes, keep track of your wins and losses, and record market movements so that you can learn from past mistakes.
At the end of every trading session, you should take some time to analyze your trades.
What went well?
What didn’t go well?
Why did you make that particular trade?
What was your entry strategy?
What was your exit strategy?
Where was the overall market momentum?
Did you control your emotions?
What grade would you give yourself?
This analysis is important so that you can learn from your mistakes and improve your trading skills. Stay motivated to continue learning about trading and keep more profit.
Avoid by: Start journaling. Spend time after exiting a trade and the market day to understand what happen and why you did a certain trade.
#4 – Watching Too Many Stocks
Watching too many stocks can lead to a decrease in returns and overall confusion on what is happening with your watchlist.
As a result, it is important to be selective.
The same can be said of stock scanners. If you are watching too many variables and possibilities, you can quickly become overwhelmed.
When you develop your trading plan, you need to decide how you find stocks.
Personally, I prefer to focus on a handful of stocks and a few key metrics. Then, watch them closely and trade accordingly.
As a new trader, I would pick about 5-10 stocks to analyze.
Avoid by: Revise your watchlist to half what you are currently watching.
#5 – Actually Exiting Trade as Planned
Above we talked about creating a trading plan and having a trading strategy for each trade taken.
But, the trading mistake happens when you do not exit the trade as planned.
This could be because of “hopemium” that the stock price will recover and you will get back your loss.
Our “hopemium” is that the stock price keeps rising and you will make more money.
Either one can be damaging to your trading account.
You created a plan. As a disciplined trader, you must follow your plan either to maximize your current profit or protect your risk against further losses.
Avoid by: Exiting at your set targets. Period.
12 Typical Emotional Trading Errors
Trading is 80% mental and 20% execution. Okay, I am not sure that there is an official study to back it up. But, I do know as a trader that emotions play heavily into your overall profit.
The typical emotional trading errors that traders make when they are in a trade are overconfidence, jumping into trades before the proper analysis is completed, and inability to take losses.
This is where most of the trading mistakes are made.
When first starting out in trading, it is easy to get caught up in the prospect of making a lot of money quickly. However, most traders find that trading is not easy to do and make common emotional trading errors.
Let’s dig into these emotional mistakes first and then we will follow up on the technical trading mistakes.
1. Letting emotions impair decision making
Emotions are an important part of decision-making, but it can be dangerous to allow them to influence our decisions. We should also take into account that emotions can often lead us astray.
It is clear that emotional trading can lead to bad decision making and, ultimately, financial losses.
When investors let their emotions take over, they are not thinking logically and may make impulsive decisions. For example, they may sell stocks when the market is down in order to avoid further losses, even though the stock may rebound soon after.
In order to be successful traders, it is important to stay calm and rational when making decisions.
Overcome by: Stick to your trading plan and take emotion out of the equation.
2. Unrealistic Profit Expectations
You go into every single trade expecting a home run! Enough money to achieve your dreams overnight!
These types of profit expectations will have you throwing your risk management plan out of the window and set you up for failure with greed, overconfidence, and impatience.
Be realistic about your expectations with trading activity.
Overcome by: Go for base hits. Small consistent wins.
3. Greed
Greed is a deep-seated need for more profit without regard to the chart or market conditions.
The common rationale is hopefully the stock will go up. Typically, you hold your position too long and end up losing some of your gains.
Greed can manifest in many different ways, and people with greed often neglect their own needs in order to attain more.
Overcome by: Set an OCO bracket to exit the trade at your specified level. Take you out of the equation.
4. Fear of Missing Out (FOMO)
You fear that you missed out on a trade, so you decide to jump in. As a result, you are risking more than you should.
This trading mistake is common, especially with online trading communities.
As a result, you may buy at the high and watch the stock reverse.
Overcome by: Realize that there will be missed opportunities. That is part of the game. There will always be another chance.
5. Fear
In many cases, fear is a reaction to why or why not we enter a trade.
For any trader, they may become frozen unable able to make a decision as their mind is wrapped in fear. At the same time, they are either missing out on potential profits or unable to exit a trade due to mounting losses.
Overcome by: This is a real emotion that you must overcome. Take the time and read resources to help you overcome being paralyzed by fear.
6. Overconfidence after a profitable trade
The overconfidence that comes with success can lead to a loss of profits.
When a trader has a winning position, they may become overconfident and make bad decisions because of the previously profitable trade.
For example, they may not take their profits off the table when there is an opportunity to do so or increase their position size when they should be taking profits. This could lead to them losing all of their winnings and more.
Overcome by: Take a break from trading for a few days or a week after a big win.
7. Entering a Trade Based on Your Gut
The process of entering a trade based on your gut is, essentially, following your “gut feeling” and buying or selling shares after the market opens. This is seen as a more risky and less profitable strategy than following a more traditional market timing approach.
Trading is all about making calculated decisions and sticking to a plan.
Trading based on your gut feeling or emotions will only lead to costly mistakes.
Overcome by: Before entering into any trade, make sure you have a solid strategy in place and know all the rules. Only then should you start trading.
8. Not reviewing trades
Not reviewing trades is a common problem for many traders. Traders who don’t review their trades tend to be more likely to make mistakes in their trading and over-trade, which can result in losses.
You will make the same mistake over and over again until you realize the root of the problem.
This is how you move from a losing average to a winning percentage.
Overcome by: Let your journal be your friend. Document everything including your emotions.
9. Following the Herd
Many people enjoy following the herd with stock trading, especially online platforms on Reddit, Discord, or Twitter.
You may decide to follow a certain group of people in order to be fed stock picks or updates.
This can be risky because there is no sound foundation to base your trade upon.
Overcome by: Trade your style and let that fit you.
10. The Danger of Over-Confidence
The “beginner’s luck” experienced by some novice traders may lead them to believe that trading is the proverbial road to quick riches.
Over-confidence is the belief that one’s abilities, knowledge, or qualities are better than average.
This over-confidence is a risk factor for certain types of mistakes and other negative outcomes as it leads to complacency, a lack of preparation, and an overestimation of one’s abilities.
Overcome by: Realize your limitations and watch for overconfidence to appear.
11. The Importance of Accepting Losses
Losses are always a part of trading life, but they can be overwhelming when they occur.
It is important to recognize that losses are in fact an inevitable part of growth and development as a trader.
Overcome by: Journal all of your losses. Look for patterns to appear. Adjust your trading strategy as appropriate.
12. Quit Your Job Too Fast
Quitting your job too fast is not a good idea, as it will force you to place trades that may not be the best set-ups.
Day trading can be a very risky venture, and it is possible to lose everything you have invested.
It is important to be aware of the risks before getting started. More importantly, do not quit your job too fast. This can lead to losses in your investments and could potentially put you in a worse financial situation than you were before.
Overcome by: Keep trading as a side hustle. Hone your trading skills and build up a reserve fund that will cover your monthly expenses. You will know when you are prepared to leave your 9-5.
Common Mistakes in Stock Trading
According to a study by the U.S. Securities and Exchange Commission, technical trading mistakes are actually fairly common among individual investors.
Mistakes in technical trading can be two-fold, either due to lack of knowledge or poor execution.
The most common mistakes are buying at the top and selling at the bottom, overtrading, and not taking the time to properly understand how trading works.
Now, let’s dig into all of the common trading mistakes I see.
1. Overtrading
Let’s start by talking about overtrading. This is a mistake that I see many people make. It is also a mistake that could have been easily prevented if you had just done your research before placing the trade.
Overtrading or placing more orders than you should do is the most common mistake.
Many new traders will simply open up their platform, look at the market, and place a trade. They are often chasing after the last couple of candles or they see an opportunity to get in “on the cheap”.
The problem with this approach is that you have no idea if this is a good trade or not. You are simply taking a shot in the dark and hoping for the best.
Overcome by: Only place the A+ setups that you like. Once you have traded so many times per day or week, stop trading.
2. Buying High and Selling Low
We all have heard the saying, “buy high and sell low.” However, too many novice traders do the complete opposite.
This trend happens with one of the emotional mistakes of FOMO; we already dived into that concept earlier.
Overcome by: Follow your trading plan on when to enter and exit the trade. Practice your strategy in a simulated account and master it.
3. Lack of Trading Knowledge
The lack of trading knowledge is a problem for many traders who are not familiar with how the stock market works. This can cause them to make mistakes when buying and selling stocks, which could result in losing a lot of money.
Just because you made a profit once on one stock does not mean that is a repeatable action.
In order to be successful in trading, it is important to have a good understanding of the markets and the strategies involved.
Without proper training, you are likely to make costly mistakes that can cost you money. Trading courses and tutorials are available online and through other resources to help you gain this knowledge and become a successful trader.
Overcome by: Take an investing course. Spend money on your education and not your losses. Here is a review of my favorite day trading course.
4. Following Too Many Strategies
Following too many strategies is a common problem in the investing world, which can lead to poor performance and more costly mistakes.
There are a million and one different approaches on how to trade the stock market, which indicators to use, whose advice you should follow, so on and so forth.
And then, many traders try and couple the strategies together only to quickly learn they may cause more losses than profits.
One way to avoid following too many strategies is by using a set of rules to decide which strategies are appropriate for investing.
Overcome by: Develop your trading plan. Outline the investing strategies you will use. Test any new strategies in SIM first.
5. Do Your Research
The solution to this problem is simple: do your research!
Before you enter a trade, take the time to do some analysis on the asset you are looking at. Look at past price action, news events, and any other relevant information that you can find.
Understand why the market might move in your favor and be able to build a case for it. The more data points you have supporting your position, the better off you will be.
If you are able to build a strong case for why the asset will move in your favor, then you can enter with confidence. This is because if the market does not move in your favor, you will know that it isn’t because of a lack of research on your part.
When you enter with confidence, this will make it easier to hold through the inevitable volatility and price swings.
Overcome by: If you enter without knowing why something is likely to move in your favor, then you are setting yourself up for failure. Do your research.
6. Not Using Stop-Loss Orders
Stop orders come in several varieties and can limit losses due to adverse movement in a stock or the market as a whole.
Tight stop losses generally mean that losses are capped before they become sizeable. However, you may have your stop loss too tight and get stopped out before your stock has room to move.
A corollary to this common trading mistake is when a trader cancels a stop order on a losing trade just before it can be triggered because they believe that the price trend will reverse.
Overcome by: Plan your stop loss in advance. Stick to it as it is part of an overall risk management strategy.
7. Letting Losses Grow
Active traders can be harmed by refusing to take quick action to close a losing trade.
It is important to take small losses quickly and limit your risk in order to stay profitable.
Stop losses can help you avoid larger losses.
While the stock may come back to your buy price, you have increased your risk far beyond what you planned. If your planned loss was $300 and now you are down over $500, it will take that much longer to overcome that growing loss.
Cut your losses. Review the chart. See what a better entry point may be.
Overcome by: If the stock moves past your pre-determined stop, then exit the trade. Don’t trade on hope.
8. Chasing After Performance
Many day traders are tempted to chase stocks, which is a bad reputation in the day trading world.
This happens when they see a stock that has had a large price increase and they think that it will continue to go up. In reality, this is not usually the case, and chasing stocks can lead to big losses.
What goes up must come down, right?
Overcome by: Wait for a better time to enter the trade according to your trading plan.
9. Avoiding Your Homework
It is important to do your homework. If you avoid doing your homework, then don’t expect fast results
Many new traders often do not do their homework before making any investment decisions.
This can lead to costly mistakes that can be avoided by doing some basic research. Trading is a complex process and should not be taken lightly – make sure you are fully prepared before risking your hard-earned money.
Overcome by: If you have not enrolled in an investing course, do that. Set daily goals on how to improve your trading performance that is not based on profit or loss.
10. Trading Difficult and Unclear Patterns
It is important to stick with the patterns and indicators that are clear and unmistakable so you don’t get caught up in any ambiguous or unclear trading signals.
With a little bit of research and understanding, these market patterns can become quite clear.
By forcing a chart to fit in what you want, then you are putting your trading capital at risk.
Overcome by: If you cannot read a clear chart or pattern, then quickly move to the next stock.
11. Poor Reward to Risk ratios
The most common mistake made by traders is poor risk management. This usually means taking on too much risk in relation to the potential rewards, which can lead to heavy losses if the trade goes wrong.
It is important to always have a solid plan for how much you are willing to lose on any given trade and never deviate from it.
What is the Reward to Risk ratio you look for:
1:1 Reward to Risk
2:1 Reward to Risk
3:1 Reward to Risk
Many beginner traders do not want to take on as much risk because their appetite for potential rewards may be lower. It is important for beginners to consider their trading strategies and risk management plans so that they can make the most informed decisions possible.
Risk-to-reward ratios are an important part of trading, and experienced traders are typically more open to risk in order to maximize their potential rewards. This means that they may be more likely to make high-risk, high-reward trades.
Overcome by: Stick to Risk to reward ratios that fit your trading plan.
12. Ignoring volatility
Volatility is the fear and unknown in the market.
The most important thing to remember about investing is that the stock market can be volatile.
A measure of volatility is from the VIX.
Overcome by: Decide how you will trade when the VIX is high and the news is negative.
13. Too Many Open Positions
Entering too many positions is one of the most common mistakes investors make. A portfolio should consist of a handful of top-performing investments that have proven to be good bets over time.
It is unwise to open too many positions in a short amount of time because it could lead to confusion.
This can be risky because if one or two of the positions go south, the entire portfolio can suffer. For this reason, it is important to carefully consider each position before opening it and make sure that all positions are contributing positively to the overall goal.
Overcome by: As an active trader, stick to under 5 open positions. As a long-term investor, look to build a portfolio of 25 stocks over time.
14. Buying With Too Much Margin
Most brokers offer 2:1 or 4:1 margin to cash. While this is tempting to use, it can also give you a margin call.
Margin can help you make more money by increasing your position size, but it can also exaggerate your losses.
Exaggerated gains and losses that accompany small movements in price can spell disaster for a new trader using margin excessively.
Overcome by: Use your cash only. Stay away from using margin.
15. Following Meme Stocks
These are the stocks made popular by many Reddit personal finance groups.
You have probably heard of Gamestop, Blackberry, AMC, or Bed Bath and Beyond as a meme stock.
While these stocks have risen to crazy highs, they have also fallen just as fast. Chasing the high may leave you with a big and painful loss.
Overcome by: Stick to your stock watchlist.
16. Buying Stocks With No Volume
Buying stocks with no volume is a risky idea that involves placing an order on a stock without knowing how much interest there will be in the shares. This can result in losing money if there are no buyers for the shares.
It is important to validate the price of a stock by looking at volume. The volume shows how much interest there is in a stock and can be indicative of future price movement.
When volume is low, it’s best to stay away from buying stocks as it could be a sign that the stock price is not stable.
Overcome by: Trade stocks with a volume of at least 500,000 or higher.
17. Ignoring Indicators
Indicators are things that tell us the market is going up or down. Examples of indicators would be the stock market at a particular point in time, a company’s performance with regards to earnings, the price of a product or service.
Every trader has their own set of indicators they use.
If you have outlined indicators you use in your trading, make sure to follow them regardless if it is against the way you want the stock to move.
Overcome by: Stick to your trading plan for each stock individually.
18. Trading Too Large Position Sizes
Trading too large position sizes is a risk that traders may run into when they hold positions in their portfolios for extended periods of time.
Position size is the amount of money placed on a trade, and the risk is that a trader may lose more than their capital on the trade if it does not go well.
Overcome by: Base your position size on the amount you are willing to lose. Not how much you want to make.
19. Inexperienced Day Trading
In order to be successful in trading, it is important to have a good understanding of the markets and the strategies you are using. Without proper training, it is easy to make costly mistakes.
Too many day traders turn trading into an unnecessary risky game.
To be successful, a day trader must have a solid foundation in how to invest in stocks for beginners.
Overcome by: Practice in a simulated account and make all of your mistakes there before moving to live money.
20. Inconsistent trading size
Inconsistent trading size is when traders are unable to predict what their position size should be in order to meet the trader’s desired profit goal.
Trading size is one of the most crucial aspects of a trading strategy and should be considered carefully. Larger trade sizes come with an increased risk, so it’s important to be aware of your position size when making trades.
Overcome by: Don’t risk too much on one trade. Stick to your risk management plan.
21. Trading on numerous markets
Trading on numerous markets is when a trader invests in stocks, bonds, commodities, crypto, and other securities.
Every type of market moves differently and takes time to understand how to be profitable.
Overcome by: Find your niche and stick to it.
22. Over-leveraging
Leverage is a powerful tool that can be used to magnify gains and losses in a trade. It is important to be aware of the amount of leverage being used in order to effectively manage risk.
Brokers play an important role in protecting their customers by providing margin calls and other risk management tools.
Overcome by: If you feel over-leveraged, sell some positions before your broker gets involved.
23. Overexposing a position
Overexposure is a term used in the investment world to describe the risk that comes with exposing your position too much in the market. When you have overexposed your position, you are putting yourself at risk of losing money if the stock or security you are invested in falls in value.
You are taking on too much risk.
Overcome by: Stick to your risk management plan. Always have cash reverse on hand in case the market reverses.
24. Lack of time horizon
There are different time horizons for various types of trading strategies. It is important to think about the time horizon you are comfortable with before investing in any type of investment.
If you are a day trader, you plan to close your trades before the end of the trading session. As a swing trader, you typically hold trades for a couple of days maybe up to a month. As a long-term investor, you plan to hold your stocks for longer than a year.
Overcome by: Match the time horizon of that investment purchase with your investing goals.
25. Over-reliance on software
Although some trading software can be highly beneficial to traders, it is important not to over-rely on it.
Automated trading systems are becoming so advanced that they could revolutionize the markets. As a result, human traders need to be aware of the potential for these systems to make mistakes and use them in conjunction with their own judgment.
Overcome by: Set alerts before you want to enter or exit a trade. Then, review if the move still follows your trading strategy.
Top Options Trading Mistakes Beginner Traders Make
These options trading mistakes are specific to option trading.
Trading options is an advanced strategy. If you have losses trading stocks, wait before you start trading options.
1. Not having a Trading Plan
Every trader needs a trading plan that outlines strategies, game plans, and trade metrics.
When you are trading without a plan, you are essentially gambling and hoping for the best.
This is not a recipe for success in the world of stock trading and is especially true for options traders.
A good trading plan should include chart analysis so that you can make informed decisions about when to buy and sell stocks. If you are using HOPE instead of a trading plan, then you need to find out the right way to interpret the chart because that will give you a better idea of what is happening in the market and how likely it is that your investment will succeed.
Overcome by: Create a specific trading plan based on your option strategy.
2. Not properly Researching Option Contracts
Learning to trade options is like going to school for a whole different trade.
There are way too many technical aspects to discuss in this mistake.
Spend time learning what criteria you want from an options contract to be successful.
Overcome by: Learn how options work and practice trading options in the simulator before going live.
3. Trading without an understanding of the underlying asset
Before you start trading options, trade with stocks.
Every stock moves at its own beat. You need to learn how it moves.
Jumping into options prior to knowing the stock can cause extreme losses. Learn how the underlying asset moves first. Be successful in trading stocks before moving to options.
Overcome by: Learn to trade the stock with shares first. Then, practice in a simulator. Once familiar, then trade live with options.
4. Buying Out-of-the-Money (OTM) Call Options
Options trading is a risk-based strategy. It’s important to know which strategies are right for you and what the risks of each option type are before putting on an option trade.
One common mistake that many traders make when it comes to option trades is buying out-of-the-money (OTM) call options.
This is because OTM call options are inexpensive and have a range of around 100,000 to 1 million. To avoid this mistake, it’s important to know what the risks of buying OTM call options are and which option strategies are appropriate for you.
Overcome by: Focus on trading In-the-money (ITM) call contracts. Know your strategy.
5. Not Knowing What to Do When Assigned
When you enter into an options contract, you are essentially agreeing to buy or sell the underlying asset at a specific price on or before a certain date.
If the market moves in a way that benefits the buyer of the option (the person who contracts to buy the asset), they can choose to exercise their option and purchase the asset at the agreed-upon price. However, if the market moves in a way that benefits the seller of the option (the person who contracts to sell), then they may “assign” their contract to someone else – meaning that they no longer want to buy/sell the asset, but would like someone else to take on that responsibility.
This can be jarring if you haven’t factored it into your decision-making when trading options, so it is important to be aware of the possibility.
This is why traders need a higher trading level to sell options contracts or verticals.
Overcome by: Be okay with buying the shares if you are assigned. That is a part of your trading plan.
6. Legging Into Spreads
It is a common mistake for traders to get legged into spreads by entering positions when the market price has moved away from their position. They may have gotten caught up in the belief that they are being a “smart” trader by trying to profit from the spread.
The problem is that they are not taking into account that their cost basis must go up in order to maintain the position. If the market price of the underlying goes up, their cost basis must go up as well.
Overcome by: If you are not comfortable with this advanced strategy, then exit your options contract and place a new one.
7. Trading Illiquid Options
Trading illiquid options is a mistake because traders are taking on too much risk, with potentially disastrous consequences.
Illiquid means that the option cannot be bought or sold at the given time.
In other words, the option is not tradable. When traders trade illiquid options, they are taking a risk that their trades will not be executed because there is no liquidity in the market at that time. They have to hope that the market will become liquid again, and they can then sell their position or buy back their option at a lower price.
Overcome by: Check option volume and open interest at your strike place. Verify you have interest in moving your contract.
8. No Exit Plan
It is important to have a plan in case your trading strategy doesn’t pan out as planned.
This will give you the peace of mind that you won’t be left high and dry without an exit strategy.
With options is it more difficult to limit your risk to reward. As a result, you must decide your exit plan in advance.
Overcome by: Develop your trading strategy and include how and when you will exit the option contract.
Ready to Avoid these Trading Mistakes?
Investors are often their own worst enemy when it comes to trading.
They make emotional decisions instead of logical ones, and this leads to them making costly mistakes. Plus there are many technical errors new and seasoned traders are still making.
In order to be successful in the markets, investors must first learn to accept their losses and move on. Only then can they put that mistake behind them and focus on making profitable trades in the future.
In this post, I shared some of the more common trading mistakes that people make and how to avoid them.
Now, you have to work to avoid these trading mistakes and be profitable.
Know someone else that needs this, too? Then, please share!!
We at The Motley Fool have always been champions of the individual investor, encouraging each person to take control of her or his financial destiny. In theory, the transition of America’s retirement apparatus from defined-benefit plans — i.e., pensions that pay a monthly amount — to defined-contribution plans — such as 401(k)s and 403(b)s — is consistent with this Foolish philosophy. The individual makes all the contribution, investment, distribution, and inheritance decisions, whereas with a defined-benefit pension, the worker has very little control.
However, for the majority of Americans, the transition away from defined-benefit has not been to their benefit. It requires each person to become an investing expert and financial planner in their spare time, and too many Americans don’t seem to have the time, interest, inclination, or skills.
According to the Employee Benefit Research Institute, the average 401(k) account is a tad over $60,000; those within a decade of retirement have a bit more, with an average balance of $78,000, but more than a third have less than $25,000. Almost half of workers (43%) between the ages of 45 and 54 reported they weren’t saving anything for retirement.
Not that traditional defined-benefit pensions don’t have their own problems. Many are underfunded, and the benefits accrue mostly to workers who stay with the same employer for many years, which is less common in today’s mobile workplace. But it’s clear that 401(k)-based retirement planning will result in not much of a retirement for many workers.
We can chalk a good deal of this up to people not taking responsibility for their finances, but the problem also lies with the 401(k) system itself. Employees are stuck with the plan and the investments that have been chosen by the employer and/or HR department (who may be fine people, but not necessarily investment experts). Too often, the fund choices are mediocre or worse, and the costs are high.
Get Ready to Look Under the Hood Unfortunately, you likely don’t know the true costs of your 401(k). They’re hidden in boring legal filings or embedded in the expense ratios of the mutual funds within the plan. But that’s all about to change.
Beginning later this year, 401(k) plans will be required to disclose how much the administration of the plan and the investments is costing participants. This is important information, since — according to human resources consultant Towers Watson — an increase of 0.5% of expenses (i.e., $50 for every $10,000 invested) could consume eight years’ worth of savings for an above-average earner. After all, the $30 billion to $60 billion the financial-services industry makes from 401(k)s each year doesn’t grow on trees; it’s usually taken directly from investors’ accounts.
The amount of fees being extracted from 401(k) accounts may be shocking to some investors. Indeed, many might be surprised they’re paying fees at all, if an AARP survey is to be believed, which found that 70% of worker didn’t know they were paying fees. Alas, that is just not the case.
With the new disclosures, it will be easier to see what you’re paying, and whether that’s too much.
Generally, smaller plans pay higher costs — “smaller” meaning both the number of plan participants as well as total assets in the plan. According to a study [PDF] conducted by Deloitte for the Investment Company Institute (a trade organization for the mutual fund industry, so not necessarily an unbiased crew), the median all-in cost — which includes administrative costs as well as investment expenses — to plan participants in 2011 was 0.78%. But the numbers vary widely, with plan size being the primary factor.
The median cost for a plan with more than $1 billion in assets was 0.38%, whereas the median cost for a plan with less than $1 million was 1.41%. Similarly (and relatedly), the median cost for a plan with fewer than 100 participants was 1.29%, compared to 0.43% for those with more than 10,000 participants.
You can use those figures as a benchmark to determine where your fees fall in relation to other plans. Then, figure out who’s paying those fees — you or your employer. Chances are, it’s the person you see in the mirror (unless your boss follows you into the bathroom, which is kinda weird). According to the Deloitte study:
[P]articipants bear the majority of 401(k) expenses. Similar to any other employee benefit (e.g., health insurance), the employer determines whether the employee, employer, or both will pay for the benefit. According to the Survey, on average, participants pay 91% of total plan fees while employers pay 5% and the plans cover 4%. This compares with participants paying 78%, employers paying 18% and plans paying 4% in the 2009 Fee Study.
In other words, employees are paying the majority of fees, and the share that they’re paying is going up.
Are you getting your money’s worth from your 401(k)? Here’s how to find out, and what to do about it:
Evaluate your investment choices. See if the funds in your plan, over the past five years, have beaten a relevant index fund as well as the majority of other funds with a similar investing objective. This information may be found in your quarterly statements or on the website of your plan provider. Important note: Your funds’ mileage may vary from the information on Morningstar or other fund-info sites since funds in 401(k)s often have additional costs.
Use the side brokerage account, if offered. Approximately 20% of 401(k)s allow participants to open an account with a discount brokerage within the plan. This will let you buy individual stocks, bonds, ETFs, and other mutual funds. However, compare the benefits to the costs, since these accounts often have higher maintenance fees.
Advocate for a better plan. Talk to the folks in your HR department and raise your concerns. After all, their retirement is on the line, too, and they should also be motivated to have the best possible plan. Here’s an example of a letter you can write to ask for a better plan.
Don’t ignore other accounts. If your 401(k) is stin(k)y, contribute just enough to take full advantage of the employer match, and then max out an IRA with the discount brokerage of your choice. You might pay lower costs and have more investment options. However, if you are in a higher tax bracket — and thus ineligible for the Roth IRA, and your contributions to a traditional IRA wouldn’t be deductible — then it might make sense to invest in non-dividend-paying stocks you’ll hold for many, many years. You don’t get a tax break up front, but you’ll pay long-term capital gains when you do sell, which (at least according to current laws) are lower than the taxation rate on ordinary income (the rate at which your paycheck and traditional 401(k) and IRA distributions are taxed).
Move your money. You generally can’t transfer the money in your 401(k) to another account while you’re still working for the employer sponsoring the plan, but some companies allow it, especially for older workers. If your plan is sub-par, ask if your employer allows “in-service distributions.” If so, or once you leave that employer, transfer the money to an IRA. But do not just get a check and cash it; that is considered a distribution, which will be subject to taxes and a 10% penalty if you’re not 59 ½ years old. Instead, get the money to an IRA, ideally through a “trustee-to-trustee transfer,” in which the money is sent directly from your 401(k) to the IRA.
Get help. If you’re looking for professional advice with your investment choices, look for a fee-only planner who charges by the hour, such as the Certified Financial Planners at the Garrett Planning Network or the National Association of Personal Financial Advisors. She or he can also estimate whether you’re saving enough to retire when and how you want.
Hug Your Boss, Then Make the Request Employers deserve credit for sponsoring retirement plans. They don’t have to do it, it consumes the HR department’s time, and it might even cost them actual money. I’m on the 401(k) committee of The Motley Fool (where the company covers all administrative costs, thank you very much), and I can tell you that it’s more work than most people would think.
But don’t be bashful about politely asking for a better plan. No one is planning your retirement for you, and no one cares more about your retirement more than you do. The more your retirement will rely on your own contribution and investment decisions, the more you must take charge.
I am sick. For the past ten days, I’ve been wrestling with a high fever, a cough, a persistent sore throat, and a general malaise that’s kicking my ass. Basically, I’m the sickest I’ve been in over a decade. (The last time I was this sick? The evening that The Fellowship of the Ring premiered. I went to see it with friends, but don’t remember a thing about that night because I was sick with a high fever. High fevers suck!)
Normally, I don’t go to the doctor. My family has a funny thing about doctors, and usually prefer to let an illness run its course rather than to pay a doctor to tell us to “let the illness run its course”. Last Tuesday, though, I decided that sometimes discretion is the better part of valor. After four days with a high fever, and after sensing that something wasn’t quite right with my lungs, I drove myself to urgent care.
“You have the flu,” the nurse practitioner told me. “And it’d be even worse if you hadn’t had your flu shot. As it is, you may have pneumonia. It’s been going around.”
She prescribed an inhaler, steroids, and an antibiotic, but she seemed skeptical that they’d help. “Make sure you call us if things don’t improve,” she said. “In the meantime, you need to spend 72 hours in quarantine. You don’t want to give this to anyone else, and you don’t want to catch anything else that might be going around.”
So, for three days last week, I confined myself to my apartment.
Hunting for Health Insurance
But this article isn’t about how sick I’ve been. This article is about my quest for health insurance. Earlier this year, I promised to share my experience as I looked for an individual policy.
As background, I’ve always had insurance through Kris. Because we were married, my insurance was covered by the policy she had through her employer. And before that — long before that — I was on my parents’ health insurance. For 43 years, health insurance has been a non-issue for me.
That changed, though, when I asked for a divorce last autumn. I knew that I’d have to find my own coverage. In fact, Kris wouldn’t allow the papers to be filed until I could demonstrate I had replacement coverage.
“No problem,” I thought. “How hard can it be to find health insurance? I’m the healthiest I’ve been in my life!” Haha. Turns out, it’s not as easy as it sounds.
A Wild Goose Chase
My first stop was eHealthInsurance.com. Many people (including several GRS readers) had recommended this site as a great way to compare health insurance and to apply online without much hassle. It sounded perfect. Before Kris and I left for our trip to South America in February, I filled out an application. It seemed simple, and I had no doubt I’d be approved.
I wasn’t.
Some of my options at eHealthInsurance
While we were in Argentina, I got an e-mail that said my application for health insurance had been rejected, but didn’t offer any explanation. When I got home, there was a letter waiting for me in the mail that gave more detail. Turns out, I had a pre-existing condition that caused my application to be rejected. Five years ago, when I was fifty pounds heavier, I suffered from sleep apnea. Sleep apnea is a risk factor for other diseases, and insurers don’t like it. Never mind that I no longer have sleep apnea, that I’m fifty pounds lighter than when I had it, and that my health has never been better. There’s no way to convey that info on an application. Instead, I was turned down for health insurance.
Fine.
I went back to eHealthInsurance.com to apply for a different policy, but there’s a question on every application: “Has any other carrier turned you down for health insurance during the past 90 days?” It turns out that once one carrier turns you down, all carriers will turn you down. (This isn’t strictly true, but it’s mostly true.)
Fine.
I decided that my best bet was to just just continue receiving coverage through my same carrier. My logic was impeccable: I’d been with them for years already and they knew my medical history, so surely it would be a piece of cake to carry things forward. Again, this didn’t turn out to be true.
I called my carrier to ask about porting my policy from Kris’ work account to individual insurance. “We can’t do that,” they told me. “You have to call the employer that has the policy.” So I did. But Kris’ employer told me they couldn’t port it forward either. “Your only option is COBRA,” they told me. (COBRA is ongoing medical insurance available when your existing policy ends. It’s expensive.)
I’m telling this story in a calm, even-handed fashion, but I wasn’t feeling calm and even-handed during the process. I was feeling frustrated. I couldn’t figure out where to turn.
Finally, I started talking about my health insurance dilemma with everyone I met. I asked my self-employed friends what they do for health insurance. (Shocking but true answer: Most of them don’t have health insurance. No joke.) When I met other folks who’ve been through a divorce, I asked how they handled the health insurance question.
In the end, it was my colleague Mark Silver from Heart of Business who provided the answer. “I used an insurance broker to find health insurance,” he told me. “Here. I’ll give you his contact info.”
Taking Matters Into My Own Hands
Because I hate e-mail conversations and because I hate getting the run-around by phone, I tend to prefer face-to-face business transactions. Yes, they take more time, but I find them easier. It’s possible to discuss shades of grey and to explore multiple possibilities in person. For this reason, I drove across Portland to visit Ron Tate at Tate Insurance Services. I explained my situation.
“I need health insurance,” I said. “But I only want catastrophic insurance. I’m willing to self-insure almost everything.” Because I have substantial savings, I’m willing to pay more for routine coverage if that means my monthly insurance premiums are low. In the long-term, this should save me tons of money.
“No problem,” Mr. Tate told me. “We have several options.” He walked me through them. I chose the option that seemed to offer the best balance of cost and coverage, filled out the application. And waited. And waited. And waited.
After a week of waiting, I got word that my application had been rejected. Again. And again because of sleep apnea. “We have a couple of options,” Mr. Tate told me. “Because you’ve been rejected, you qualify for the Oregon Medical Insurance Pool, which is for high-risk customers like you. It’s nto cheap though. Or you can apply elsewhere. Or we can ask for an exclusion for the sleep apnea. That means you won’t have coverage for that condition, but everything else will be normal.”
“To be honest,” I said, “I just want to get this finished. I feel like I’ve been working on this for weeks, and I’m tired of it. It shouldn’t be this hard to get health insurance.”
My plan options at my insurance provider
In fact, I was so frustrated that I went home from Mr. Tate’s office and took matters into my own hands. I did what I should have done from the start. I went to the website for my current carrier and filled out an application for personal health insurance. I chose the cheapest policy (which still costs $128 a month!) and indicated I was a current customer. And then I waited. Within a couple of days, I’d heard back that my application was approved.
An Unhealthy System
That’s a long, boring story, I know, but I’m certain it’s typical of what everyone goes through when attempting to find health insurance on their own. It’s not easy. In fact, it seems a little crazy that it takes that much work to get coverage.
During the process, I spoke with dozens of people about their own experience getting insurance, or about their experience with family members who’ve had to use health insurance lately. I’ll be honest: I came away jaded. I’m far from being a socialist, but there’s no question in my mind that the current health insurance system in the U.S. is broken. It’s tough to find coverage, that coverage is expensive, and once you have it, it’s like a game for the insurance companies to get out of paying. This is dumb. I’d be happy to try some sort of socialized medicine as an alternative, and so would every single person I spoke to during this process. (But, of course, I live in Portland where even moderates like me would be considered liberal in other parts of the country.)
And, of course, the conclusion of this story is that I had to put my insurance to use last week. I have no idea how much my doctor’s appointment, x-ray, and prescriptions would have cost without insurance (and neither do the doctors, actually), but I do know that my total out-of-pocket cost was $29.26. (This may go up after the insurance company decides whether I owe more, but that’s the current total.)
I’m still not healthy. There’s still gunk in my lungs. I’m still running a mild fever. I still feel like sleeping all day. But it’s good to know that if I do need medical help, I have the insurance situation sorted out.
With the average cost of college currently at $35,551 per year, most students have no choice but to take out student loans. Whether you go to a public or private university in or out of state, you’ll probably need at least a little help. And we’re here to help you get it.
Students might turn to private student loans instead of or in addition to federal student loans to help cover the cost of tuition and boarding. So how do you choose between the many private lenders — including banks, credit unions, and online marketplaces — out there? We’ve compared many of the top lenders to find those with the best rates, repayment terms, range of options, and more.
But enough suspense. Let’s dive into the best private student loans for you.
What’s Ahead:
Best private student loans
Best for flexible repayment terms: SoFi
Best for low rates: Credible
Best for no cosigner: Ascent
Best for cosigner: Earnest
Best for graduate students: Sallie Mae
Best for student loan refinancing: Splash Financial
Best for multi-year approval: Citizens Bank
Best for flexible repayment terms: SoFi
Fixed APR range – 3.99% – 8.24% APR (including auto-pay discount of 0.25%)
Variable APR range – 3.99% – 8.24% APR (including auto-pay discount of 0.25%)
Fees – None
Prepayment penalty – None
Minimum – Minimum $1,000
Maximum – Full cost of attendance
Loan terms – 5, 7, 10, or 15 years
Forbearance – Up to 12 months
Minimum credit score – 650
SoFi is a peer-to-peer lender offering private student loans for both graduate and undergraduate students. They also provide private and federal student loan refinancing for those who meet citizenship, employment, credit, and income requirements (minimum $5,000).
SoFi stands out for offering more repayment terms than most as well as the option to put membership points toward your loan balance. You have four repayment choices:
Defer monthly payments until six months after you graduate
Pay only interest while in school
Make fixed monthly payments of $25 while in school
Start making regular monthly payments toward the full balance right away
And should you need student loan relief, SoFi provides Unemployment Protection of up to 12 months to qualified borrowers.
There are two discounts available that can help reduce the cost of your loans. The first is a 0.25% interest rate discount when you schedule automatic payments and the second is a 0.125% rate discount for previous SoFi borrowers.
You’ll need at least fair credit to qualify for a private student loan with SoFi, or you can apply with a cosigner for a better chance of approval. We encourage you to check your rate with no effect on your credit. SoFi offers cosigner release after you’ve made 24 consecutive payments toward the principal and interest.
Read our full review.
Best for low rates: Credible
Interest rate range – starting at 4.44% fixed APR (with autopay)* and 4.74% Var. APR (with autopay), See Terms*
Fees – None
Prepayment penalty – None
Minimum – $1,000
Maximum – Full cost of attendance
Loan terms – 5 – 20 years
Forbearance – Varies by lender
Minimum credit score – Varies by lender
Though not a direct lender, Credible is a good place to go if you’re looking for a private student loan. Credible is an aggregator that partners with top lenders including Sallie Mae, Citizens, Ascent, and more to show you many student loan offers in one place. This is an especially great option if you don’t really know where to start because the platform begins by asking you questions to understand your needs, then shows you what you might qualify for.
To compare your options, you’ll fill out a single application to receive offers from up to eight different lenders. This will show you personalized rates you prequalify for to help you easily find the lowest ones. Although you won’t know your final rate until you actually apply to borrow with your chosen lender, this can give you a good idea of what you might pay. Using Credible to shop loans and check your rate does not affect your credit and the application takes just a couple of minutes to complete.
The Credible Best Rate Guarantee means that if you find a lower interest rate with another lender, you may be eligible for a $200 “Best Rate Reward.”
Credible’s partners do not charge origination fees or prepayment penalties. Also, all eight make it easy to apply with a cosigner and offer cosigner release to eligible borrowers.
Read our full review.
Credible Credit Disclosure – To check the rates and terms you qualify for, Credible or our partner lender(s) conduct a soft credit pull that will not affect your credit score. However, when you apply for credit, your full credit report from one or more consumer reporting agencies will be requested, which is considered a hard credit pull and will affect your credit.
Maximum – $200,000 ($20,000 for Non-Cosigned Outcomes-Based loans)
Loan terms – 5, 7, 10, 12, or 15 years
Forbearance – Up to 24 months
Minimum credit score – Varies
Ascent is a unique private lender for those looking to avoid using a cosigner. They specifically cater to those who want to apply on their own by offering a couple of ways to qualify. There are two types of non-cosigned loans from this lender: credit-based loans and outcomes-based loans. You’ll need at least two years of credit history and an income of $24,000 or more to qualify for a credit-based loan, but you may be eligible for an outcomes-based loan without any credit at all.
Ascent’s outcomes-based private student loans take your future income, not your current income, into consideration. When you apply for this loan, Ascent looks at your GPA, anticipated graduation date, school, program, and more to determine your eligibility. The better your grades and higher-paying your career path, the better your chances. You must be a junior or senior attending school full-time to qualify.
Interest rates are higher for non-cosigned loans, but there are discounts available. These include a 0.25% autopay discount and a 1% cash-back graduation reward.
While in school, you can pay $25 each month or make interest payments only. Alternatively, you can defer payments for up to nine months after you graduate. You may qualify for up to 24 months of Temporary Hardship Forbearance if you find yourself unable to make payments.
Read our full review.
Ascent Disclosure:Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/17/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
If you already know you want or need to apply for private student loans with a cosigner, Earnest has excellent cosigned loans. Earnest is a direct lender offering private student loans with low rates and forgiving terms to make repayment easier for student borrowers.
Applicants must have a credit score of at least 650, an income of at least $35,000, and U.S citizenship to qualify. These might be difficult requirements for a college student to meet, which is why Earnest encourages cosigners. In fact, 66% of Earnest borrowers use a cosigner. However, Earnest does not offer cosigner release, but you may qualify to refinance with this lender under only your name when you graduate.
If you have a great cosigner willing to help you out, Earnest will make it easier for you to hold up your end of the bargain with alternatives to the standard repayment plan. In addition to four different repayment options, they give all borrowers a nine-month grace period after graduation before monthly payments are due and the option to skip a payment once a year if needed. You may also qualify for one of the following assistance programs:
Rate Reduction Program – decreased rates and monthly payments for six months
Extended Term Program – loan term extension of up to 30 years to reduce payments
Earnest also has more generous loan forgiveness and discharge policies than most.
Read our full review.
Earnest SLR Disclosure – Actual rate and available repayment terms will vary based on your income. Fixed rates range from 5.21% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.24% APR to 9.19% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 9.13% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.21%. For loan terms over 15 years, the interest rate will never exceed 9.24%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
Best for graduate students: Sallie Mae
Fixed APR range – 4.25% – 12.92% (for graduate loans, including 0.25% auto debit discount)
Variable APR range – 3.87% – 13.50% (for graduate loans, including 0.25% auto debit discount)
Fees – None
Prepayment penalty – None
Minimum – $1,000
Maximum – Full cost of attendance
Loan terms – Up to 15 years
Forbearance – Determined on a case-by-case basis
Minimum credit score – 650
Sallie Mae offers a variety of different loans for both undergraduate and graduate students, but this lender is especially great for graduate private student loans. Let’s get into what makes this option different than others for higher education.
First, Sallie Mae offers 100% coverage for all of your tuition and living expenses from classes to travel with no cap. After graduating, you can defer payments up to 48 months if you’re going right from school to a fellowship or internship. And unlike most loans of this type, you do not need to be enrolled full-time or even half-time to qualify to borrow.
You’ll have a 94% chance of being approved if you’ve already had a Sallie Mae student loan and you apply for a new one with a cosigner. And if you do use a cosigner, you may be eligible to release them after just 12 consecutive monthly payments made on time.
You can either defer your payments for six months after you graduate, make fixed monthly payments of $25 while you’re in school, or pay just the interest while you’re in school and during the six-month grace period after graduation. While Sallie Mae’s interest rates are a little higher than some, you can get a 0.25% rate discount for setting up automatic payments.
Read our full review.
Sallie Mae Disclosures: Borrow responsibly. We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan. Sallie Mae loans are subject to credit approval, identity verification, signed loan documents, and school certification. Smart Option Student Loans are for students at participating schools and are not intended for students pursuing a graduate degree. Graduate student loans are available for students at participating degree-granting graduate schools. Graduate Certificate/Continuing Education coursework is not eligible for MBA, Medical, Dental, and Law School Loans. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. 1 Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Undergraduate – Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. Associate & Trade School – Advertised APRs assume a $10,000 loan to a borrower who attends school for 1 year and has $10,000 in prior Sallie Mae loans. All Advertised APRs assume a $10,000 loan. Medical School Loan and Dental School Loan APRs assume 4 years in school. Law School Loan APRs assume 3 years in school. MBA Loan, Graduate School Loan for Health Professions, and Graduate School Loan APRs assume 2 years in school. 2 Loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. 3 Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 9.63% fixed APR, 51 payments of $25.00, 119 payments of $172.95 and one payment of $121.42, for a Total Loan Cost of $21,977.47. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.07% fixed APR, 27 payments of $25.00, 179 payments of $125.36 and one payment of $49.52 for a total loan cost of $23,163.96. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 2-year in-school period, it works out to a 10.02% fixed APR, 27 payments of $25.00, 119 payments of $153.59 and one payment of $108.14, for a Total Loan Cost of $19,060.35. For a borrower with $10,000 in prior loans and a 1-year in-school period, it works out to a 10.19% fixed APR, 15 payments of $25.00, 179 payments of $117.46 and one payment of $46.27 for a total loan cost of $21,446.61. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 4 Example of a typical transaction for a $10,000 Graduate School Loan with the most common fixed rate, Fixed Repayment Option, and two disbursements. For borrowers with a 27-month in-school and separation period, it works out to 12.78% fixed APR, 27 payments of $25.00, 178 payments of $154.24 and one payment of $152.19, for a total loan cost of $28,281.91. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 15 years.
Best for student loan refinancing: Splash Financial
Refinancing your student loans is a good way to lock in a lower interest rate for your existing loans, reduce your monthly payments, and consolidate your debt. As a loan marketplace, Splash Financial offers some of the best refinancing options currently available.
To find a loan with Splash Financial, you’ll complete one application and compare your available offers from a variety of banks and credit unions. Using Splash Financial’s marketplace does not affect your credit or cost anything. If you see an offer you like, you can begin an application directly with a lender partner.
If you didn’t get the rates you wanted the first time around when applying for student loans as a new borrower, refinancing can help you save on interest and simplify repayment. It can also let you assume full responsibility for your loans if you originally borrowed with a cosigner. And if you’re recently married, you can refinance with a partner to combine your balances.
Read our full review.
Best for multi-year approval: Citizens Bank
Fixed APR range – 4.74% – 12.06%
Variable APR range – 3.75% – 11.21%
Fees – None
Prepayment penalty – None
Minimum – $1,000
Maximum – Full cost of attendance ($150,000 for all undergraduate and most graduate degrees)
Loan terms – 5, 10, or 15 years
Forbearance – Up to 12 months at a time
Minimum credit score – Not disclosed
If you like the idea of applying once for private student loans and not having to again, you might want to check out Citizens Bank.
This lender provides multi-year approval for between four and six years to eligible borrowers. If you qualify, you’ll be approved for all the money you need to complete your degree upfront. Instead of filling out a new application each year (and adding hard credit pulls to your report), you’ll request more funding when you need it and Citizens will use only a soft pull to confirm you’re still eligible. Citizens will let you know if you qualify for Multi-Year Approval after you submit your application.
You can enroll in autopay for a 0.25% interest rate discount. may also be eligible for a loyalty discount, an interest rate reduction of 0.25%, if you’re already a Citizens customer with a qualifying savings account, checking account, credit card, or loan (or if your cosigner is a customer).
99% of borrowers with Citizens use a cosigner. You can apply for cosigner release after you’ve made 36 on-time, full payments in a row if your credit profile is found to be satisfactory. Can defer payments until after graduation but Citizens does not offer income-based repayment.
Federal vs. private student loans
Federal student loans offer many benefits over private student loans and you should go with this option before you even consider private student loans.
But you may not end up choosing one or the other — in fact, it’s not uncommon for a person to have both federal and private student loans. You’ll want to make sure to understand the (many) differences between federal student loans and private student loans and how they work before applying for either.
Requirements to qualify
Overall, federal student loans are a lot easier to get than private student loans. Federal loans are administered by the federal government, not companies or lenders. They do not require a credit check at all when you’re applying, so it doesn’t matter how low your score is. To assess your eligibility, the U.S. Department of Education will determine your financial need and this will be used to create your loan offer.
In contrast, a lot of private lenders are looking for a credit score in the 670 range, which is considered good. It’s pretty hard to have good credit when you’ve never borrowed before, and by “pretty hard” we mean not possible. This is why so many students use a cosigner for private loans – because they need to.
Repayment and relief options
Federal student loans also provide more wiggle room than private loans by offering more opportunities for relief and support.
Both federal and private loans may qualify for forbearance if you’re unable to make payments due to financial hardship, but only federal loans can be forgiven completely.
Most private loans are not eligible for forgiveness or income-based repayment plans. Income-based repayment plans ensure that your monthly payments make sense for your financial situation and are widely available for federal loans.
Borrowing limits
One advantage of private student loans is higher borrowing limits. Federal loans are given based on your financial need, but you may not qualify to have the full cost of your education covered (even if you can’t pay). Many private loans do not have a maximum borrowing limit and will let you borrow up to the full cost of your education or certificated cost of attendance (COA).
Interest
Federal student loans always have lower interest rates. And because they don’t check your credit, you don’t need a perfect credit history to qualify for the best rates. Even the best private loans come with steep APRs by comparison.
Also, interest on federal loans is more likely to be tax deductible than interest on private loans.
Fees
This is one where private loans come out on top. Unlike federal student loans, many private student loans don’t charge origination fees. These are fees charged as a percentage of your loan and deducted from your total disbursement.
Should you get a private student loan?
The first question you should ask yourself when looking for ways to fund your education is not whether you should get a private student loan but whether you’ve taken full of advantage of (much cheaper) federal funding and alternatives.
Federal student loans are a better option than private loans for almost everyone due to the fact that they’re less expensive and more flexible. They don’t require a credit check so you can qualify without any credit, and you’ll spend less over the life of the loan.
With that said, you may need to take out a private student loan if you can’t get all the funding you need from federal loans. This is fairly common, especially if you’re attending a costlier college or university.
But student loans aren’t your only option.
Alternatives to student loans
Student loans are just one way to pay for college. If you’d like to avoid taking out a private student loan or want to reduce the amount of debt you’re taking on, look into these options first.
Financial aid
Maximizing your financial aid should be your first priority when you’re thinking of borrowing money for college. After all, avoiding student loan debt is the goal. With financial aid, you probably don’t have to pay the money back. The Federal Pell Grant, for example, given to students who show exceptional financial need, doesn’t need to be repaid.
You might qualify for federal student aid even if you don’t think you do.
You can apply for federal aid through the U.S. Department of Education by completing the Free Application for Federal Student Aid (FAFSA). The FAFSA assesses your financial situation to determine if you are a good candidate to receive help from the government. This is also the form you’ll complete when applying to see how much you qualify to borrow in federal loans.
Unfortunately, international students are less likely to qualify for most financial aid.
Read more: How to read a financial aid award letter
Scholarships
Scholarships are just another way to get free money. Some student loan borrowers don’t know how to apply for scholarships or think they definitely won’t qualify and don’t bother. But the fact of the matter is that there are foundations just waiting for someone like you to come along so they can hand you money. True story.
Between merit-based and need-based scholarships, there’s usually something for everybody. There are also a variety of options specifically for different types of students such as graduate students, international students, or even those enrolled in particular programs like pre-med or education.
Many private lenders even have scholarship programs you can apply for when applying for a loan. This can help soften the blow a bit when applying for a loan.
Parent PLUS loans
Parent PLUS loans are a type of unsubsidized federal loan parents can take out on behalf of their dependents. Only biological or adoptive parents with clean credit histories (e.g. no delinquencies) can qualify.
PLUS loans are usually used alongside other forms of loans and funding, not as a primary source.
Work-study
If you qualify for federal financial aid, you may also qualify for Federal Work-Study.
Work-study is a well-named program through the Department of Education that lets you work while you study and earn money for college. Work-study jobs are often on campus and may even be in the academic buildings you’re already visiting, and they’re designed to be flexible for students. You can use the money however you need to, for the most part, and it does not count toward your financial aid. You also don’t have to pay it back – it’s yours free and clear.
How to choose a student loan
Student borrowers should consider the following factors when comparing different private and federal student loans.
Fixed vs. variable loans
Student loans can be either fixed for the entire term of the loan or variable. Fixed means that the interest rate is locked in for the length of the loan and variable means that the interest rate is subject to change.
Should you choose a fixed or variable interest rate?
This is an important question to ask yourself because it’ll ultimately determine how much you’ll pay in interest when all is said and done and your loan is paid off.
Generally speaking, variable rates on student loans are lower. But long-term, fixed-rate loans often carry less interest. Variable-rate loans will fluctuate over time and there’s the potential for rate hikes, making this the riskier choice.
Note that federal student loans only offer fixed rates while private loans might offer the choice between fixed or variable rates.
Maximum loan amounts
For federal student loans, the maximum loan amounts are between $31,000 and $57,500 for undergraduates and up to $138,500 for graduate students.
Private student loans can have maximum limits of anywhere from $150,000 to $500,000 or may allow you to borrow up to the full cost of your education (including tuition, boarding, and more).
As mentioned, many students require a mix of both federal and private loans.
Term lengths
For federal student loans, terms are typically available between 10 and 30 years. Most private loan terms are between five and 20 years.
While it might be tempting to just choose the shortest loan term available to get your student loans over with, you need to consider what monthly payments you can realistically take on when they come due.
Repayment terms
There are many different options for repaying your student loan debt. Most private lenders will let you choose to make interest-only payments, fixed payments of a certain amount (such as $25), or full payments while you’re still in school or wait until you’ve graduated to start making monthly payments.
Each type of repayment comes with its own set of advantages and disadvantages. Interest-only payments, for example, will reduce the amount of interest you pay but will mean that it takes you longer to repay your loan than if you were making payments toward the principal too.
It’s important to consider all of your repayment options and take advantage of tools such as calculators to understand what you’ll be paying and when.
Read more: 20 terms for understanding student loan debt
Fees
Federal student loans require origination fees, which currently range between 1.057% and 4.228% of the loan amount taken. Origination fees are deducted from your total payout. Private student loans normally don’t charge origination fees or other types of application fees.
Neither federal nor private student loans charge prepayment penalties if you decide to make your payments early or pay more than what’s due each month.
APR
The annual percentage rate, or APR, is the effective rate on a loan. It includes both the base interest rate and any required fees added to the calculation.
For example, if you borrow $100,000 and pay a 2% origination fee, the net proceeds of the loan will be $98,000. When a 5% interest rate is calculated on the loan, the APR will be slightly higher due to the reduced net loan proceeds.
Your APR will depend on your credit history and the terms of your loan. You may qualify for a discount through some lenders for activities such as enabling autopay or having another account with a bank.
Deferment options
With private student loans, you might have anywhere from six months to a year after graduating before you’re required to start making repayments. With federal student loans, you don’t need to start making payments until six months after you graduate. When payments are due, you may need to defer or pause them if you’re not able to pay.
Student loans may come with a variety of deferment options. For example, federal student loans come with the option to defer payments if you graduate and have trouble finding a job. Private student loans may offer deferment on a case-by-case basis, but the deferment period will vary by lender.
Just note that interest may still continue to accrue during deferment and factor this into your repayment plan.
Forbearance and loan forgiveness policies
Federal student loans offer both forbearance and loan forgiveness. For example, under the Income-Driven Repayment plan, your monthly payment can be reduced to a small percentage — usually 10 or 15% — of your monthly income.
Under a Public Service Loan Forgiveness plan, your debt can be completely forgiven if you make 120 monthly payments while working full-time for either a government agency or a qualifying nonprofit organization.
With private student loans, loan forgiveness is not an option. However, some will provide forbearance if you experience economic hardship, such as unemployment. Your options depend on which lender you’ve chosen and it’s worth looking into this before borrowing.
Cosigner release terms
You probably won’t need to use a cosigner for federal loans because these don’t have credit requirements, so cosigner release doesn’t apply. However, cosigners are common with private student loans, and you may decide to use one.
If you decide to use a cosigner, they might not be stuck on your student loans until your debt is fully paid off. Many lenders provide a cosigner release option that lets you release your cosigner and continue on the loan alone. If a lender does provide the option for cosigner release, you’ll need to apply and qualify for it by meeting repayment and credit requirements.
Look into the cosigner release terms for any loan you think about taking out and be sure to have a conversation with your cosigner about this too.
How to qualify for a private student loan
If you’ve exhausted all of your options from federal loans to financial aid and scholarships, you might decide it’s time to apply for a private loan. Here’s what you need to know.
Your credit history and income will be used to determine your loan eligibility. If you have a really limited credit history — which is common for first-time student loan borrowers — you may not be able to qualify for a private loan on your own with the terms and interest rate you want. Lenders will also look at your income as a way of determining how risky it is to loan money to you and if you have the financial means to pay them back. Again, many new borrowers don’t meet minimum income requirements.
Some lenders will let you check to see if you prequalify for a loan and show you what rates you might receive with no effect on your credit. If you have this option, use it to avoid submitting more applications than you need to.
If you can’t qualify by yourself, you might want to think about using a cosigner.
When you use a cosigner, their credit history and income will count in your favor because lenders will look at this information as an extension of your application.
Should you use a cosigner?
Applying for student loans with a cosigner makes you look better to lenders. Using a cosigner means choosing a person with more credit than yourself — such as an older relative or parent — to assume responsibility for your loan along with you. This means that their credit profile will be used to determine your eligibility and interest rates.
A cosigner must be someone more creditworthy (i.e. less risky to lenders) than yourself. Someone with a good credit score and high income is a good candidate to cosign.
Your cosigner is only partially responsible for your loan when applying. But if you fail to pay your loan back, they become fully responsible for repaying the debt.
There are several factors to consider when you’re making the decision to use or not use a cosigner on your private student loans. Beyond the financial implications of signing their name to your debt, there are personal implications as well. Asking someone to be responsible for your debt is more than just a favor and a decision that shouldn’t be made lightly.
And if you do end up applying with a cosigner, you might want to have the option to release them as soon as possible. Cosigner release gives you the flexibility to assume full responsibility for your student loan after applying. To qualify for cosigner release, you usually need to make a certain number of consecutive monthly payments – such as 12 or 24 – toward both the principal and interest of your loan. Then, your eligibility as an individual can be reassessed.
Summary
Navigating the process of taking out a private student loan for the first time is a tricky business. But while it isn’t our idea of a good time, it’s definitely worth sitting down and comparing your options before signing your name to thousands of dollars of student loan debt.
If you start with these private lenders and take your time to make the right decision, you should be in good shape to get the loan you need and borrow responsibly.
What is luxury real estate really? On today’s podcast with luxury expert Harold Clarke, we discuss what luxury real estate is and what Realtors need to know in order to truly serve high-net-worth clients. In addition to offering advice on breaking into the luxury niche, Harold shares strategies that agents can use to corner any market. We also discuss how COVID-19 affected Hawaiian real estate, what luxury living looks like in 2022, and why real estate agents should always be truthful with clients.
Listen to today’s show and learn:
About Harold Clarke [3:46]
What luxury real estate really is [4:21]
Five-star service at home [8:28]
Understanding how high-net-worth clients feel [12:03]
Current events and how they affect luxury real estate sales [13:28]
How COVID-19 has changed Hawaiian real estate markets [14:25]
Why interest rates aren’t affecting luxury sales in Hawaii [16:48]
Advice on getting into the luxury niche [18:34]
Why you can’t fake expertise in the luxury niche [22:32]
One of Harold’s best recent experiences with a client [24:11]
Collecting clues for follow-up [25:42]
Interacting with people from all walks of life in Hawaii [26:35]
Harold’s advice for real estate agents: be truthful [27:26]
Harold Clarke
Harold X Clarke knows quite well the nuances of wealth, through intimate experience. He developed a strong sense of ownership for the real issues and tough decisions required of individuals with great wealth at a young age. His competitive and perfectionist instincts, coupled with a deep, personal understanding of the wealthy elite’s mindset, allowed him to develop his proprietary method of catering to the discreet needs of the world’s most discerning clientele.
Recognizing big-box corporate real estate brands fall increasingly short fulfilling the real estate needs of the UHNW, and observing the small number of developments in the world that check all the boxes for these individuals, Mr. Clarke founded private real estate consultancy Harold Clarke Advisors for the world’s top .001% of individuals and global developers, to reshape the luxury lifestyle market and fill the void.
Related Links and Resources:
Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Horror movies have been a staple of the film industry for decades, captivating audiences with their ability to scare, shock, and thrill. From classic black-and-white thrillers to modern-day blockbusters, horror movies haunt us with their terrifying stories and imagery. Whether you’re a horror enthusiast or simply looking for a good scare, the world of horror movies offers a wide range of options to choose from.
1. The Exorcist
“The Exorcist” is a classic horror film directed by William Friedkin and released in 1973. The movie tells the story of a young girl named Regan who becomes possessed by a demon, and the efforts of a priest named Father Damien Karras to exorcise the entity from her body. The film is widely regarded as one of the best horror movies ever made due to its blend of supernatural horror and personal themes of faith and redemption. The use of practical effects and strong performances from the cast, particularly Linda Blair and Jason Miller, add to the film’s enduring legacy.
2. The Shining
“The Shining” is a 1980 horror film directed by Stanley Kubrick and is considered one of the best horror movies ever made. The movie tells the story of Jack Torrance, a writer who takes a job as a winter caretaker at the isolated Overlook Hotel with his wife and son. Kubrick’s masterful direction and use of imagery create a sense of dread and unease, complemented by the haunting score. Jack Nicholson’s unforgettable performance as Jack Torrance, the exploration of themes such as isolation and madness, and the film’s impact on pop culture all contribute to its status as a classic of cinema and a must-see for horror fans.
3. IT Chapter 1
“It Chapter 1” is a 2017 horror film directed by Andy Muschietti that follows a group of outcast kids, the Losers Club, as they try to defeat a shape-shifting entity that takes the form of a terrifying clown named Pennywise. The film’s blend of horror, humor, and heart makes it stand out in the genre. The exceptional cast, particularly the young actors who play the Losers Club, deliver powerful performances. The film explores universal themes related to childhood trauma, grief, and the power of imagination, which elevates it beyond the confines of the horror genre. Overall, “It Chapter 1” is a must-see film for horror fans and movie lovers alike.
4. The Nun
“The Nun” is a 2018 horror film directed by Corin Hardy that takes place in 1952 Romania. It follows a young nun and a priest as they investigate the death of a nun in a secluded abbey and encounter an evil force in the form of a demonic nun. The film’s immersive atmosphere, stunning visuals, exceptional performances, and clever use of jump scares and suspense make it a modern horror classic and a must-see for horror fans.
5. Jaws
“Jaws” is a 1975 horror film directed by Steven Spielberg that takes place in a small New England town terrorized by a giant man-eating great white shark. The film’s ability to create suspense and terror through suggestion rather than explicit gore, exceptional performances, and masterful filmmaking make it a classic horror film and a must-see for fans of the genre. Its enduring popularity is a testament to its timeless storytelling and iconic scenes.
6. IT Chapter 2
“IT Chapter 2” is a 2019 horror film directed by Andy Muschietti and based on the novel by Stephen King. The film follows the adult versions of the Losers Club as they return to Derry, Maine to confront the shape-shifting entity known as Pennywise the Clown. The film’s exceptional cast, and the blend of horror and heart make it one of the best horror movies ever made.
7. A Quiet Place
“A Quiet Place” is a 2018 horror film directed by John Krasinski, set in a post-apocalyptic world where creatures hunt by sound. The film’s use of sound and unique premise creates a tense and immersive atmosphere, while exceptional performances by the cast, particularly Emily Blunt and Millicent Simmonds, add depth to the characters. The exploration of themes such as family, sacrifice, and survival make it not just a horror movie, but a thoughtful drama.
8. The Sixth Sense
The Sixth Sense was produced in 1999 by Barry Mendel, Kathleen Kennedy and Frank Marshall. It’s the story of a young boy who receives visits from ghosts. He’s too afraid to tell anybody but the child psychologist, who listens to the boy and tries to help him. Dark secrets about the miscommunication of ghosts are waiting for them, and the movie cleverly lays down clues about the twist that occurs at the end. A clever plot and suspence make this horror movie a must-see for enthusiasts!
9. World War Z
“World War Z” is a 2013 horror film directed by Marc Forster and is considered one of the great horror movies of the past decade. The movie follows a former United Nations employee’s journey as he travels across the globe in search of a cure for a zombie pandemic while trying to protect his family. The film’s strengths include the intensity of the action, impressive special effects, a fast-paced and suspenseful storyline, and engaging performances, particularly by Brad Pitt. The exploration of themes such as survival, sacrifice, and the consequences of human actions adds a level of depth and complexity to the movie. Furthermore, the film has had a significant impact on the zombie sub-genre of horror movies and inspired numerous films, TV shows, and video games.
10. Hereditary
“Hereditary” is a 2018 horror film directed by Ari Aster and is considered one of the great horror movies of recent times. The movie follows the Graham family as they struggle with their grief and the unsettling events that follow the death of the grandmother. The film’s direction, masterful use of symbolism, cinematography, and score create a sense of unease and dread throughout the film. Toni Collette delivers a powerful performance as the mother, Annie, whose family is haunted by dark secrets and a sinister presence. The movie’s impact is long-lasting, inspiring discussions and debates among viewers about its meaning and themes.
From the classic supernatural horror of “The Exorcist” to the post-apocalyptic tension of “A Quiet Place,” these films have captivated audiences with their ability to scare, shock, and thrill. These movies continue to inspire new generations of horror filmmakers and enthusiasts, and their legacy is a testament to the power of storytelling and the enduring appeal of the horror genre.
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With a new season comes the urge to revamp your home. New cheery furnishings and colorful accessories can pump new energy into your place and give it a more welcoming feel. And Memorial Day is a good time to take advantage of discounts on quality furniture and decor.
We spent hours digging through Amazon’s thousands of deals on home decor and accents to spruce up your living spaces and found 14 bargains too good to pass up. Equal parts functional and stylish, these pieces will transform your home without putting a massive dent in your bank account.
Take a look at the handpicked deals that will help you breathe new life into your space, and don’t forget to check out Amazon’s full list of special offers.
Aoruisen Round Throw Pillow
A new plush pillow arrangement will make your couch feel like new again, even if you’ve had it for years. These decorative pillows aren’t just pretty to look at. They can also be used to deliver comfort during your reality TV marathons.
To buy: From $15 with coupon (was $23); amazon.com.
Olanly Luxury Bathroom Rug Mat
Stepping out of the shower and onto ice-cold tile is a nightmare scenario. This highly absorbent microfiber bath rug will save your floor and your feet. The best-seller comes in nine different sizes and 11 charming colorways.
To buy: $36 (was $40); amazon.com.
Amazon Basics Upholstered Tufted Storage Ottoman
If you’re short on space or simply just prefer not to see clutter, then a storage ottoman will be your best friend. No one will guess that this modern footstool doubles as a chic place to stash extra blankets, magazines, books, electronics, and so much more.
To buy: $72 (was $117); amazon.com.
Sakringt Cordless Rechargeable Table Lamp
This set of contemporary, cordless LED lamps work as accent decor, minimalist desk lighting, ambient accessories, and more. They feature a sleek anodized finish, three color temperatures, and between eight and 40 hours of light when fully charged.
To buy: $60 (was $80); amazon.com.
Umbra Trigg Geometric Hanging Planter
An easy way to add a little character to your home is with gorgeous greenery. Whether you’re an avid green thumb or prefer the company of charming faux plants, this fun, geometric planter will only take up vertical space while enlivening the room.
To buy: $25 (was $31); amazon.com.
Amoystone Teal Agate Bookends
Add color and flair to your bookshelves will help from these stunning, jewel-toned agate bookends. They’re shoppable in teal, black, natural, and pink and come in four sizes. They also make lovely standalone decorative pieces around your home.
To buy: $29 (was $36); amazon.com.
Yaheetech Accent Chair
Accent chairs are a fabulous addition to just about any room in your house. Bring a personal touch to your home office, living room, or sitting room with a velvet accent chair that all of your guests will want to sink into.
To buy: $66 with coupon (was $93); amazon.com.
HBCY Creations Round Mirror
If your entryway seems small and stuffy, a chic mirror can make the space feel more open and even brighter. This exquisite option from HBCY is available in matte black, gold, and silver finishes, as well as five sizes to fit your area perfectly.
To buy: $60 (was $100); amazon.com.
Tinsow Artificial Eucalyptus Stems
These artificial eucalyptus stems are so versatile, you may want to buy them in bulk. The set includes five stems with about 25 leaves each that measure 15 inches tall. Create the floral arrangement of your dreams with them.
To buy: $8 (was $12); amazon.com.
Roomfitters Faux Marble Coffee Table
Your coffee table is usually the center of your living space, so updating it can easily make your living room look instantly refreshed. The two-tiered design gives you more opportunity to decorate with books and accessories or festive holiday decor.
To buy: $99 (was $189); amazon.com.
Oubonun Rustic Tablecloth
You don’t need to swap out your dinner table when you can simply switch out your tablecloths and introduce a whole new vibe into the room. Adorned with a premium zigzag design and tassels on the edges, this pick is simple yet timeless—and it’s machine washable.
To buy: $17 with coupon (was $33); amazon.com.
DII Handmade Placemat Set
Add to the rustic charm of your dining room with this set of handcrafted placemats. They’re made of recycled cotton, and thanks to their handmade quality, each piece is one-of-a-kind. Spills are easy to handle since this set is also machine washable.
It’s the season of outdoor parties, and this sturdy stoneware ceramic pitcher was meant to be showcased, whether you’ll be using it to refill everyone’s glasses with homemade iced tea or you opt to make it the centerpiece of the tablescape with a fresh handful of vibrant blooms.
To buy: $22 (was $35); amazon.com.
Le Tauci Ceramic Spoon Rest Set
Add some practicality and color to your kitchen with this set of spoon rests. The stackable design will save you precious countertop space. Plus, the set of four ensures you don’t have to worry about cross-contamination while cooking up your delicious dishes.
Paying for a nursing home can seriously deplete your retirement savings. The government-funded Medicaid program can pay some or all nursing home costs, but it’s restricted to people of very limited financial means. You may be able to qualify for government assistance with nursing home costs, even if you control substantial wealth if you transfer nearly all your assets into an irrevocable trust. An irrevocable trust can protect your money from nursing home costs, but they have costs and drawbacks of their own, including permanently losing direct control of your assets. Talk to a financial advisor to learn about options for paying for long-term care.
Irrevocable Trust Basics
A trust is a legal entity many people create as part of an estate plan. The trust acts as a container for assets transferred into it by the grantor. A trustee is appointed to manage the assets in the trust for the benefit of one or more beneficiaries.
A trust can be revocable or irrevocable. You can make changes to a revocable trust after establishing it, including removing assets from the trust. Irrevocable trusts, however, cannot be changed after establishment. That means transferring assets to the trust is a one-way process. Once in, assets cannot be removed from an irrevocable trust.
Irrevocable Medicaid Trusts
Irrevocable trusts come in several varieties and can help with many different estate planning and other personal finance tasks. Medicaid trusts are the kind used to help reduce the impact of nursing home costs.
More specifically, Medicaid trusts are designed to help people qualify for Medicaid, the government health insurance program. Unlike Medicare, which is not means-tested, Medicaid is only available to people of limited financial means.
The program is administered by states, which determine their own Medicaid eligibility requirements in a variety of ways. In most, the annual income limit is $29,160 or less. This cap includes Social Security and pension benefits as well as wages and investment income. Financial resources such as bank accounts, investments, revocable trusts and real estate typically can’t total more than $2,000. People who have more income and more assets may have to spend their own assets to pay for nursing home care until their assets have declined to the point they meet the Medicaid caps.
An irrevocable Medicaid trust is designed to help someone qualify for Medicaid without having to deplete their own assets. After creating the trust, they can transfer in enough assets to bring them below Medicaid’s caps. Once they have done that, assuming they have followed the rules, Medicaid will pay some or all of their nursing home costs. In this way, an irrevocable trust can protect assets from nursing home costs.
Keep in mind that some people say it’s unethical to use trusts to shield your assets from Medicaid. Others believe it’s perfectly fine, considering the rules and laws set up around Medicaid. Ultimately, whether you use an irrevocable trust to protect your assets from nursing home costs will be based on your financial situation, as well as your thoughts and feelings on the ethics.
Limits of Irrevocable Trusts
Irrevocable trusts have a number of limitations that anyone planning to use one will want to keep in mind. These include:
One-way transfer. Assets placed in the trust can’t be taken out of the trust for as long as the grantor of the trust is alive.
Five-year limit. Assets must be transferred into the trust at least five years before the grantor seeks to acquire Medicaid eligibility. Irrevocable trusts can’t help at the last minute.
Medicaid doesn’t always pay all costs. A Medicaid patient in a nursing home still has to use their own income to pay for most nursing home costs. Medicaid will often pay for most and sometimes all of the costs, but patients usually shoulder some of the financial burden.
Not all nursing homes qualify. Medicaid only pays for care in certain approved nursing homes.
Other Ways to Protect Assets from Nursing Home Costs
An irrevocable trust is not the only tool available to help with nursing home costs. Here are some of the alternatives:
Long-term care insurance can cover some or all nursing home costs without having to consider Medicaid eligibility.
Medicaid-compliant annuities can be used to generate income that isn’t included in Medicaid’s income assessment.
A life estate transfers ownership of assets in your estate to a spouse, removing them from consideration when determining Medicaid eligibility.
Financial gifts to family members can reduce your net worth enough to meet Medicaid’s guidelines.
Bottom Line
An irrevocable trust can help you avoid having to use your own assets to pay for nursing home care by making you eligible for Medicaid. Medicaid can pay some or all of your costs, but only if you meet strict financial guidelines for income and assets. Transferring assets into an irrevocable trust, called a Medicaid trust, can help even people with significant assets meet these guidelines, But once assets are transferred to an irrevocable trust, they can’t be retrieved from the trust.
Tips for Long-Term Care Planning
A financial advisor can help you design a strategy for covering long-term care costs using an irrevocable trust, if appropriate, as well as other methods. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Whether you are retired or still working, keeping a budget is a basic tool to help you for prepare for future needs such as paying for a nursing home. SmartAsset’s Budget Calculator can tell you how your spending stacks up to other people in your area.
If you thinking about purchasing long-term care insurance, be sure to review our picks for the top long-term care insurance providers of 2023.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.