A Michigan federal judge gave a final nod to a $5 million settlement, putting to rest a shareholder suit against Home Point Financial, three years after it was first filed.
Of the sum, the lead counsel will receive 30% of the proceeds, or $1.5 million, Shalina Kumar, U.S. District Judge in Michigan ruled June 28.
The settlement was announced in September of last year but took close to a year to get the green light.
The class action lawsuit, lodged by shareholders, accused Home Point of making misleading statements regarding its business strategies and how the unfolding lending environment could impact it as it was set to go public.
Specifically, the class action accused the now defunct lender of omitting information in its filings with the Securities and Exchange Commission regarding how its expansion of broker partners could increase the company’s expenses and how an industry-wide decrease of gain-on-sale margins would impact it.
This was “negligent” on behalf of Home Point and due to it and “the precipitous decline in the market value of Home Point’s securities, plaintiffs and other class members have suffered significant losses and damages,” the original complaint filed June 21, 2021 said.
Judge Kumar, the federal judge on the case, wrote in her ruling that the settlement “delivered a favorable recovery for the class,” especially with the looming uncertainty around Home Point’s financial viability last year.
Home Point opted to sell off its wholesale business to The Loan Store, a national entity based in Tucson, Arizona, in April 2023. Four months later, the company’s servicing operation was acquired by Mr. Cooper. The defunct mortgage lender was a casualty of deteriorating economics of the mortgage industry, which resulted in its demise, analysts have said.
In announcing the initial settlement last year — prior to the judge’s current approval — over 9,988 potential class members were contacted, all of whom could potentially receive a small chunk of the proceeds pie.
The case has been dismissed with prejudice, provided that the court retains jurisdiction over all matters relating to the administration of the settlement, the judge wrote in her ruling.
Other lenders that went public during this same time period, including Loandepot and Rocket Mortgage, have faced similar accusations lodged by shareholders.
Loandepot settled one such suit in May, with a California judge granting final approval to a $3.5 million settlement accusing the lender of misleading investors prior to its initial public offering.
Meanwhile, Rocket Mortgage investors have pushed for a federal Michigan court to certify their class action lawsuit, which accuses the mortgage giant of misleading shareholders regarding the company’s financial health in 2021. The suit has been pending for over three years.
From the architectural marvels of the Windy City to the historic charm of Springfield, Illinois is a state bursting with attractions. But what is Illinois known for? Whether you’re considering renting a home in Shelbyville, looking to settle into an apartment in Peoria, or just planning a visit, you’ll soon find that Illinois has much more to offer than meets the eye. In this article, we’ll dive into what makes Illinois truly special and why so many people are drawn to this dynamic state.
1. The Magnificent Mile
The Magnificent Mile in Chicago stands as one of Illinois’ most iconic landmarks. This bustling section of Michigan Avenue stretches for 13 blocks, offering a premier shopping experience with over 460 stores. Sightseers flock to see landmarks like the historic Water Tower and the John Hancock Center, which provides stunning views from its observation deck. Besides shopping, the area features upscale restaurants and world-class hotels, making it a memorable destination for anyone in the state.
2. Deep dish pizza
Illinois, particularly Chicago, is renowned for its delectable deep dish pizza. This pie features a thick, buttery crust filled with layers of cheese, chunky tomato sauce, and various toppings. Pizzerias like Giordano’s, Lou Malnati’s, and Pequod’s have become household names, drawing food enthusiasts from around the globe. Unlike other pizzas, this one is eaten with a fork and knife, making each bite a savory experience. Locals and visitors alike enjoy deep dish pizza, often considering it a must-try dish when in Illinois.
3. The Illinois State Fair
Held annually in Springfield, the Illinois State Fair is a highlight of the state’s cultural calendar. This event dates back to 1853 and celebrates Illinois’ agricultural heritage with livestock competitions, carnival rides, and food stalls. People gather to enjoy concerts by famous musicians, rodeo shows, and fireworks displays, making it a beloved tradition for many.
4. Abraham Lincoln’s legacy
Abraham Lincoln’s legacy is deeply rooted in Illinois, earning it the nickname “The Land of Lincoln.” In Springfield, you can explore the Lincoln Home National Historic Site where Lincoln lived before becoming the 16th President of the United States. Additionally, the Abraham Lincoln Presidential Library and Museum offers a comprehensive look at his life and presidency, featuring interactive exhibits and rare artifacts. While in this state, don’t miss the chance to learn about Lincoln’s significant contributions to American history and his lasting impact on the nation.
Fun facts Illinois is famous for
Home of the first skyscraper: Illinois is home to the world’s first skyscraper, the Home Insurance Building, which was built in Chicago in 1885.
First McDonald’s: The first McDonald’s restaurant was opened in Des Plaines in 1955 by Ray Kroc.
Largest inland system of rivers and waterways: Illinois has the largest inland system of rivers and waterways in the U.S. The Illinois Waterway connects the Great Lakes to the Mississippi River, facilitating significant commercial and recreational boat traffic.
5. Route 66
Route 66, famously known as the “Main Street of America,” starts in Chicago. This historic highway, which originally stretched from Chicago to Santa Monica, CA, played a crucial role in America’s transportation history. Travelers often begin their journey at the Route 66 starting point sign in downtown Chicago, then explore classic diners, retro motels, and quirky roadside attractions along the way. Landmarks like the Gemini Giant and the restored Pontiac Route 66 Hall of Fame and Museum offer nostalgic glimpses into the past.
6. Anderson Japanese Gardens
Anderson Japanese Gardens in Rockford is considered one of the finest Japanese gardens in North America. This 12-acre landscape features tranquil streams, koi-filled ponds, and meticulously maintained plants and trees. Visitors can enjoy peaceful strolls along winding pathways, visit traditional Japanese structures, and participate in cultural events like tea ceremonies and festivals. The gardens provide a serene escape from everyday life, offering a place for reflection and appreciation of Japanese horticultural artistry.
7. Navy Pier
Navy Pier on the Chicago shoreline of Lake Michigan is one of Illinois’ most visited attractions. This 3,300-foot-long pier features entertainment, dining, and cultural experiences for all ages. Visitors enjoy the iconic Centennial Wheel, which offers stunning views of the Chicago skyline and lakefront. The pier also hosts seasonal events such as the Chicago Air and Water Show and Winter WonderFest. With its theaters, museums, and numerous restaurants, Navy Pier is a bustling hub of activity, making it a top destination for both locals and tourists.
8. Lincoln Park Zoo
The Lincoln Park Zoo in Chicago is one of the oldest and most beloved zoos in the country. Opened in 1868, it offers free admission to visitors and features a wide variety of animals from around the world. The zoo’s highlights include the Kovlr Lion House, the Regenstein Center for African Apes, and the immersive Farm-in-the-Zoo experience. While visiting, be sure to enjoy the interactive exhibits and seasonal events, such as ZooLights during the winter holidays.
9. Garden of the Gods
Garden of the Gods, located in the Shawnee National Forest in southern Illinois, is a breathtaking natural wonder. This area is known for its stunning rock formations, sculpted by millions of years of erosion. People can hike the Observation Trail, which offers panoramic views of the towering cliffs and unique rock structures like Camel Rock and Devil’s Smokestack. Photographers and nature lovers flock to capture the dramatic scenery, especially during sunrise and sunset.
10. Starved Rock State Park
Starved Rock State Park is located along the Illinois River and is a natural wonder known for its stunning canyons and waterfalls. Outdoor enthusiasts visit the park to hike its 13 miles of trails, explore sandstone bluffs, and enjoy breathtaking views. The park is especially popular in the fall when the foliage transforms into a vibrant display of colors. Visitors can also partake in activities like fishing, boating, and camping.
11. Willis Tower Skydeck
The Willis Tower Skydeck offers breathtaking views from one of the tallest buildings in the Western Hemisphere. Visitors can take an elevator to the 103rd floor, where they step out onto The Ledge, a glass balcony extending four feet outside the building. This thrilling experience provides panoramic views of the city and beyond, reaching up to four states on a clear day. The Skydeck attracts millions of tourists each year, providing a unique perspective on Chicago’s stunning skyline and architectural beauty.
12. Frank Lloyd Wright’s Home and Studio
Frank Lloyd Wright’s Home and Studio in Oak Park is a must-visit for architecture enthusiasts. Wright is one of America’s most influential architects and lived and worked here from 1889 to 1909. The home and studio offer guided tours that showcase Wright’s innovative design concepts and personal life. Patrons can see where he developed his Prairie Style architecture, which emphasized horizontal lines and organic forms. This site provides a unique glimpse into the early work of a genius who reshaped modern architecture.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
The amount of money a couple needs for retirement can depend on several factors, including age, health, life expectancy, location, and desired lifestyle. There’s no exact number that represents what is a good monthly retirement income for a couple, as every couple’s financial needs are different.
Creating a retirement budget and considering what might affect your cost of living can help you narrow down how much monthly income you’ll need. You can use that as a guide to decide how much you’ll need to save and invest for retirement.
How Being a Couple Affects Your Income Needs
Being the main breadwinner in a couple usually increases the amount of income you’ll need for retirement, since you’re saving for two people instead of one. The money you save has to be enough to last for your lifetime and your spouse or partner’s, so that neither of you is left without income if you outlive the other.
Aside from differences in life expectancy, there are other factors that affect a couple’ income needs, including:
• Lifestyle preferences
• Estimated Social Security benefits
• Target retirement dates for each partner
• Part-time work status of each partner in retirement
• Expected long-term care needs
• Location
All of those things must be considered when pinpointing what is a good monthly retirement income for a couple. The sooner you start thinking about your needs ahead of retirement, the easier it is to prepare financially.
It’s also important to keep in mind that numbers to be used for the sake of comparison can vary widely. Consider this:
• According to the Pension Rights Center, the median income for fully retired people aged 65 and older in 2023 was $24,190.
• The average income after taxes for older households in 2022 was $63,187 per year for those aged 65–74 and $47,928 per year for those aged 75 and older, according to U.S. News Money.
💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.
What to Consider When Calculating Your Monthly Income
One couple’s budget for retirement may be very different from another’s. A budget is simply a plan for spending the money that you have coming in.
If you’re wondering how much to save each month, it’s helpful to start with the basics:
• What do you expect your retirement expenses to be each month?
• How much income will you have for retirement?
• Where will this income come from?
It’s also important to consider how your retirement income needs may change over time and what circumstances might impact your financial plan.
Spending May Not Be as Low as You Think
Figuring out your monthly expenses is central to determining what is a good monthly retirement income. According to the Bureau of Labor Statistics, the typical household age 65 and older has annual expenditures of $72,967. That breaks down to monthly spending of about $6,080 per month. The largest monthly expense is typically housing, followed by transportation and food. If you’re planning to live frugally in retirement, spending, say, under $50,000 a year may sound achievable, but it’s not a realistic target for every couple.
For one thing, it’s all too easy to underestimate what you’ll spend in retirement if you’re not making a detailed budget. For another, inflation during retirement can cause your costs to rise even if your spending habits don’t change. That fact needs to be recognized and budgeted for.
Spending Doesn’t Stay Steady the Whole Time
It’s a common retirement mistake to assume spending will be fixed. In fact, the budget you start out with in retirement may not be sustainable years from now. As you get older and your needs or lifestyle change, your spending habits will follow suit. And spending tends not to be static from month to month even without events to throw things off.
You may need less monthly income over time as your costs decrease. Spending among older Americans has been found to be highest between ages 55 and 64 and then dip, according to Social Security reports.
It’s very possible, however, that your monthly income needs may increase instead. That could happen if one of you develops a serious illness or requires long-term care. According to Genworth Financial’s 2023 Cost of Care survey, the monthly median cost of long-term care in a nursing facility ranged from $8,669 for a semi-private room to $9,733 for a private room.
Expenses May Change When One of You Dies
The loss of a partner can affect your spending and how much income you’ll need each month. If you decide to downsize your home or move in with one of your adult children, for example, that could reduce the percentage of your budget that goes to housing. Or if your joint retirement goals included seeing the world, you may decide to spend more money on travel to fulfill that dream.
Creating a contingency retirement budget for each of you, along with your joint retirement budget, is an opportunity to anticipate how your spending needs might change.
Taxes and Medicare May Change in Your Lifetime
Taxes can take a bite out of your retirement income. Planning for taxes during your working years by saving in tax-advantaged accounts, such as a 401(k) or IRA, can help. But there’s no way to predict exactly what changes might take place in the tax code or how that might affect your income needs.
Changes to Medicare could also change what you’ll need for monthly income. Medicare is government-funded health insurance for seniors age 65 and older. This coverage is not free, however, as there are premiums and deductibles associated with different types of Medicare plans. These premiums and deductibles are adjusted each year, meaning your out-of-pocket costs could also increase.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
Common Sources of Income in Retirement
Having more income streams in retirement means you and your spouse or partner are less reliant on any single one to pay the bills and cover your expenses. When projecting your retirement income pie-chart, it helps to know which income sources you’re able to include.
Social Security
Social Security benefits may be a central part of your income plans. According to the Social Security Administration (SSA), a retired worker received $1,845 in benefits and the average spouse of a retired worker netted $886 during the most recent year reviewed.
You can expect Social Security to cover some, but not all, of your retirement expenses. It’s also wise to consider the timing for taking Social Security benefits. Taking benefits before your full retirement age, 65 or 67 for most people, can reduce the amount you’re able to collect.
Retirement Savings
Retirement savings refers to money saved in tax-advantaged accounts, such as a 401(k), 403(b), 457 plan, or Thrift Savings Plan (TSP). Whether you and your partner have access to these plans can depend on where you’re employed. You can also save for retirement using an Individual Retirement Account (IRA).
Tax-advantaged accounts can work in your favor for retirement planning, since they yield tax breaks. In the case of a 401(k) plan, you can also benefit from employer matching contributions that can help you grow your savings faster.
Annuities
An annuity is a contract in which you agree to pay money to an annuity company in exchange for payments at a later date. An immediate annuity typically pays out money within a year of the contract’s purchase while deferred annuities may not begin making payments for several years.
Either way, an annuity can create guaranteed income for retirement. And you can set up an annuity to continue making payments to your spouse for the duration of their lifetime after you pass away.
Other Savings
The other savings category includes money you save in high-yield savings accounts, money market accounts, and certificate of deposit accounts (CDs). You could also include money held in a taxable brokerage account in this category. All of these accounts can help to supplement your retirement income, though they don’t offer the same tax advantages as a 401(k) or an IRA.
Pensions
A pension is an employer-based plan that pays out money to you based on your earnings and years of service. Employers can set up pension plans for employees and make contributions on their behalf. Once you retire, you can take money from your pension, typically either as a lump sum or a series of installment payments. Compared to 401(k) plans, pensions are less commonly offered, though you or your partner may have access to one, depending on where you’re employed.
Reverse Mortgages
A reverse mortgage can allow eligible homeowners to tap their home equity. A Home Equity Conversion Mortgage (HECM) is a special type of reverse mortgage that’s backed by the federal government.
If you qualify for a HECM, you can turn your equity into an income stream. No payment is due against the balance as long as you live in your home. If your spouse is listed as a co-borrower or an eligible non-borrower, they’d be able to stay in the home without having to pay the reverse mortgage balance after you die or permanently move to nursing care.
Reverse mortgages can be used to supplement retirement income, but it’s important to understand the downsides as well. Chief among those are:
• Interest will accrue: As interest is applied to the loan balance, it can decrease the amount of equity in the home.
• Upfront expenses: Funds obtained from the loan may be reduced by upfront costs, such as origination, closing, and servicing fees, as well as mortgage insurance premiums.
• Impact on inheritance: An HECM can cause the borrower’s estate to lose value. That in turn can impact on the inheritance that heirs get.
How to Plan for Retirement as a Couple
Planning for retirement as a couple is an ongoing process that ideally begins decades before you’ll actually retire. Some of the most important steps in the planning process are:
• Figuring out your target retirement savings number
• Investing in tax-advantaged retirement accounts
• Paying down debt (a debt payoff planner can help you track your progress)
• Developing an estate plan
• Deciding when you’ll retire
• Planning for long-term care
You’ll also have to decide when to take Social Security benefits. Working with a financial advisor can help you to create a plan that’s tailored to your needs and goals.
Maximizing Social Security Benefits
Technically, you’re eligible to begin taking Social Security benefits at age 62. But doing so reduces the benefits you’ll receive. Meanwhile, delaying benefits past normal retirement age could increase your benefit amount.
For couples, it’s important to consider timing in order to maximize benefits. The Social Security Administration changed rules regarding spousal benefits in 2015. You can no longer file for spousal benefits and delay your own benefits, so it’s important to consider how that might affect your decision of when to take Social Security.
To get the highest benefit possible, you and your spouse would want to delay benefits until age 70. At this point, you’d be eligible to receive an amount that’s equal to 132% of your regular benefit. Whether this is feasible or not can depend on how much retirement income you’re able to draw from other sources.
Recommended: Does Net Worth Include Home Equity?
The Takeaway
To enjoy a secure retirement as a couple, you’ll need to create a detailed financial plan with room for various contingencies. First, determine your retirement expenses by projecting costs for housing, transportation, food, health care, and nonessentials like travel. Then consider all sources of retirement income, such as Social Security, retirement accounts, and pensions, and budget well.
If you want a simple way to track your progress, SoFi can help.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
What is the average retired couple income?
Figures vary. According to the Pension Rights Center, the median income for fully retired people aged 65 and older in 2023 was $24,190. The average income after taxes for older households in 2022 was $63,187 per year for those aged 65–74 and $47,928 per year for those aged 75 and older, according to US News Money.
What is a good retirement income for a married couple?
A good retirement income for a married couple is an amount that allows you to live the lifestyle you desire. Your retirement income should also be enough to last for your lifetime and your spouse’s.
How much does the average retired person live on per month?
According to the Bureau of Labor Statistics, the typical household age 65 and older has annual expenditures of $72,967. That breaks down to monthly spending of about $6,080 per month. Many factors, however, can impact a particular household’s spending and the amount of money they need to feel secure.
Photo credit: iStock/yongyuan
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Rate-and-term refinances rose 25.6% in May as mortgage rates trended down, according to a new report by Optimal Blue. The spike was a response to a modest drop in the 30-year conforming mortgage rate, which dropped to 6.8% on May 15 but ultimately ended the month at 7.02% on the Optimal Blue Mortgage Market Indices (OBMMI).
“The sharp increase in demand for rate-and-term refinances following a dip in rates indicates that homeowners with rates above 7% feel pinched and are sensitive to even modest interest rate movements in the current economic landscape,” Brennan O’Connell, director of data solutions at Optimal Blue, said in a prepared statement. “For context, since Optimal Blue began tracking the 30-year conforming rate as a market index in January 2017, interest rates only exceeded 7.02% on 120 market days. Based on other measures, buyers who locked loans on those days have the highest mortgage rates of the past two decades.”
Chart courtesy of Optimal Blue
Total volume rose by 5.3% in May month over month and 1.8% year over year. Such gains were driven by a 4.1% increase in month-over-month purchase lock volume, a 7.2% rise in cash-out refinances, and the big rise in rate-and-term refinances. There was, however, a year-over-year decline in purchase lock counts, a “key market health indicator that controls for home price appreciation and refinance volatility, were down 4% year-over-year.”
Despite the 25.6% monthly increase from April, rate-term refinances remained at a value of 6 on the market volume index (total volume indexed to 100 in January 2018). Cash-out refinances were 9 and purchase mortgages registered at 94.
Conforming loans were 57.2% of the pie, with FHA at 18.4%, VA at 10.8% and nonconforming loans at 13.0%, according to Optimal Blue data.
The purchase pull-through rate was 79.9% in May, down 184 bps from April. The refinance pull-through rate was 59.4% in May, down 115 basis points from April and 295 bps from February. In May 2023, the refi pull-through rate was about 65%.
Nationally, markets in the Northeast showed the largest increase in lock volume, according to Optimal Blue. The Boston-Cambridge-Newton, MA-NH metro had a 17.8% increase in rate locks and the New York-Newark-Jersey City metro wasn’t far behind at 16.4%.
The Washington, D.C., Dallas, Denver, Miami and Phoenix metros all showed declines in lock volume in May.
Chart courtesy of Optimal Blue
The average loan amount in May remained flat at $374,500 and the average home purchase price rose for the fifth consecutive month to $480,300 from $477,900.
Inside: Learn what 50 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $50 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is my $50 an hour take home pay comparable to others in my industry? Is $50 an hour paycheck a good salary?
First of all, this is a wage you can actually live on and should be able to thrive and reach your financial goals. Annually $50 an hour should help you to breathe easier with your finances. You might wonder how can I start to increase my hourly wage to $55, $60, or $65 per hour?
Most of the hourly jobs that pay over $50 an hour do not require a degree, which is great news! Those paid on a salary basis tend to have a college degree and do not even calculate their hourly wage.
In this post, we’re going to detail exactly what $50 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$50 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $50 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $50 = $104,000
$104,000 is the gross annual salary with a $50 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s Break Down Of 50 Dollars An Hour Is How Much A Year
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $50 times 2,080 working hours, and the result is $104,000.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You cross the 6 figure salary, which is a huge step with your income! That is way higher than the average $60000 salary threshold, which is desired to become middle-income worker.
Work Part Time?
But you may think, oh wait, I’m only working part-time. So if you’re working part-time, the assumption is working 20 hours a week at $50 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $50 times 1,040 working hours and the result is $52,000.
How Much is $50 Per Month?
On average, the monthly amount would average $8,667.
Annual Amount of $104,000 ÷ 12 months = $8,667 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
This helps a financially stable person manage their finances without a bunch of stress. And if you are making $100k a year and still stressing about money, then you need to learn to drastically cut your expenses.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $4,333.
How Much is $50 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $50 = $2,000 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $1000.
How Much is $50 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $2,000 and double it.
$2,000 per week x 2 = $4,000
Also, the other way to calculate this is:
40 hours x 2 weeks x $50 an hour = $4,000
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $2,000.
How Much is $50 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $50 per hour = $400 per day.
If you work 10 hours a day for four days, then you would make $500 per day. (10 hours x $50 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $200.
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.
Trade and Travel 2.0
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
$50 Per Hour is…
$50 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$104,000
Yearly Wage (50 weeks)
$100,000
Monthly Salary (173 hours)
$8,667
Weekly Wage (40 Hours)
$2,000
Bi-Weekly Wage (80 Hours)
$4,000
Daily Wage (8 Hours)
$400
Net Estimated Monthly Income
$6,617
**These are assumptions based on simple scenarios.
Paid Time Off Earning 50 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $104,000 per year.
This is the same as the example above for an annual salary making $50 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling a family emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $50 times 2,000 working hours, and the result is $100,000.
40 hours x 50 weeks x $50 = $100,000
You would average $400 per working day and nothing when you don’t work.
$50 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $104,000
Federal Taxes of 12%: $12,480
State Taxes of 4%: $4,160
Social Security and Medicare of 7.65%: $7,956
$50 an Hour per Year after Taxes: $79,404
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$79,404 ÷ 2,080 hours = $38.18 per hour
After estimated taxes and FICA, you are netting $38.18 an hour. That is $11.83 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting for under $38 an hour wage is much different.
$50 An Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $50.01-50.99.
This is super helpful if you make $50.15, $50.45, or $55.90.
Plus many of the best paying jobs in real estate investment trusts pay in this range.
You are probably wondering can I live on my own making 50 dollars an hour? How much rent or mortgage payment can you afford on 50 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $50 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $50 an hour was $38.18 after taxes. That would average $6,617 per month.
According to the Cents Plan Formula, here is the high-level view of a $50 per hour budget:
Basic Expenses of 50% = $3308.50
Save Money of 20% = $1323.40
Give Money of 10% = $661.70
Fun Spending of 20% = $1323.40
Debt of 0% = $0
Can You Make These Percentages?
For someone making over $100K gross annually, this is completely doable assuming there is no debt involved. The risk most people find themselves in is lifestyle creep and keeping up with the Joneses.
You can be strategic with your saving and investing to quickly become the millionaire next door. Then, that will allow a level of time freedom you have never experienced.
To further break down an example budget of $50 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $50 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$693
Savings
15-25%
$1733
Housing
20-30%
$1820
Utilities
4-7%
$347
Groceries
5-12%
$607
Clothing
1-4%
$65
Transportation
4-10%
$347
Medical
5-12%
$443
Life Insurance
1%
$43
Education
1-4%
$87
Personal
2-7%
$160
Recreation / Entertainment
3-8%
$282
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$2050
Total Gross Income
$8,667
**This is a sample budget. You can adjust your categories based on your personal situation.
Learn how much house can I afford with 100k salary.
Can I Live off $50 Per Hour?
At this $50 hourly wage, you are making more than $100K per year. So yes, you should thrive on this annual salary.
This is well over the median income of $60,000 salary. That means you should be able to increase your savings percentage each year and live better than 80% of the world.
The question is, are you? Or are you straddled in debt? Struggling and living paycheck to paycheck?
Unfortunately, too many people are still struggling even though they are making nearly 4x the minimum wage.
Should living on $100K be doable? Absolutely.
Don’t be caught in a tough situation. You need to live below your means. If not, you are wasting too much of your hard-earned cash.
Can you truly live off $50 an hour annually?
Just like any wage… you must spend less than your income. Plus consistently save.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
Your mindset is everything.
This is what you say to yourself… Okay, I am blessed to make more than the average worker. So, I must live on that paycheck or find ways to start diversifying my income into multiple streams and start investing. Then, I am going to give back to what helped me to get where I am today.
In the next section, we will dig into ways to increase and diversify your income, but for now, is it possible to thrive on $50 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $50 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Annual Salary
This right here is the most important section of this post.
Even though, you are making good money. You might have reached a maximum ceiling of income in your field. You may need to change companies.
More often than not, you need to find ways to diversify your income. One type of income will get you far in your personal finance journey, but to truly see faster progress you need multiple streams of income.
Finding ways to increase your monthly pay by $500 or $1000 will add up over the year.
1. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: 20 Genius Ways on How to Make Money Fast
2. Earn Passive Income
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and becoming financially stable.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in less than a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Related Reading: How Fast Can you Make Money in Stocks? The Real Answer
3. Become a Freelancer
When you make $50 an hour, you are good at your job. You know what you are doing and people are willing to pay you for it.
Pick up side jobs and spend your free time as a freelancer.
This is one of the best ways to make extra money without a lot of upfront effort or costs.
I know plenty of people who make a living as freelance writers.
The options are endless if you are willing to think outside of the box.
4. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
If that does not pan out, then look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $50 an hour isn’t worth it for you if you’re not able to enjoy life; maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
5. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
I was in the same situation for many years until I decided to make a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
Tips to Live on $50 an Hour
In this last section, grasp these tips on how to live on $50 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $50 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $50 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $50 an hour minus all the taxes, FICA, social security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your net income. Learn the difference between gross pay vs net pay.
2. Living Below Your Means
You need to be happy. And living on less can make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you can find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
4. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are plenty of things to do with no money. Free activities without costing you a dime. That is a fantastic resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money and set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Jobs that Pay $50 an Hour
You can find plenty of jobs that pay $50 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
$50 Per Hour Annual Salary
In this post, we detailed 50 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
$104,000
That is making over $100000 a year.
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
Now, think back to when you were making $11 an hour… a lot has changed since then, right?
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 40 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $40 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is my $40 an hour take-home pay compared to others in my industry? Is $40 an hour paycheck a good salary?
First of all, this is a wage you can actually live on and should be able to thrive and reach your financial goals. Annually $40 an hour should help you to breathe easier with your finances. You might wonder how can I start to increase my hourly wage to $45, $50 or $55 per hour?
Most of the hourly jobs that pay over $40 an hour do not require a degree, which is great news! Those paid on a salary basis tend to have a college degree and do not even calculate their hourly wage.
In this post, we’re going to detail exactly what $40 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$40 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $40 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $40 = $83,200
$83,200 is the gross annual salary with a $40 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s break down how that number is calculated
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $40 times 2,080 working hours, and the result is $83,200.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
At this salary, you are right between the above-average $75000 salary threshold and coming closer to a $100k salary.
Work Part Time?
But you may think, oh wait, I’m only working part-time. So if you’re working part-time, the assumption is working 20 hours a week at $40 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $40 times 1,040 working hours and the result is $41,600.
How Much is $40 Per Month?
On average, the monthly amount would average $6,933.
Annual Amount of $83200 ÷ 12 months = $6933 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
This helps a financially stable person manage their finances without a bunch of stress. And if you are making above the average income worker and still stressing about money, then you need to learn to drastically cut your expenses.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $3,467.
How Much is $40 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $40 = $1,600 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $800.
How Much is $40 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,600 and double it.
$1,600 per week x 2 = $3,200
Also, the other way to calculate this is:
40 hours x 2 weeks x $40 an hour = $3,200
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,600.
How Much is $40 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $40 per hour = $320 per day.
If you work 10 hours a day for four days, then you would make $400 per day. (10 hours x $40 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $160.
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.
Trade and Travel Course
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
$40 Per Hour is…
$40 per Hour – Full Time
Total Income
Yearly Salary(52 weeks)
$83,200
Yearly Wage (50 weeks)
$80,000
Monthly Wage (173 hours)
$6,933
Weekly Wage (40 Hours)
$1,600
Bi-Weekly Wage (80 Hours)
$3,200
Daily Wage (8 Hours)
$320
Net Estimated Monthly Income
$5,294
**These are assumptions based off simple scenarios.
Paid Time Off Earning 40 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $83,200 per year.
This is the same as the example above for an annual salary making $40 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $40 times 2,000 working hours, and the result is $80000 per year.
40 hours x 50 weeks x $40 = $80,000
You would average $320 per working day and nothing when you don’t work.
$40 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $83,200
Federal Taxes of 12%: $9,984
State Taxes of 4%: $3,328
Social Security and Medicare of 7.65%: $6,365
$40 an Hour per Year after Taxes: $63,523
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$63,523 ÷ 2,080 hours = $30.54 per hour
After estimated taxes and FICA, you are netting $30.54 an hour. That is $9.46 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a $30 an hour wage is much different.
$40 an Hour Salary
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $40.01-40.99.
This is super helpful if you make $41 an hour, $42 an hour, $43 an hour, or $44 an hour.
You are probably wondering can I live on my own making 40 dollars an hour? How much rent or mortgage payment can you afford on 40 an hour?
We have figured out how much $40 an hour annually is $83,200.
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $40 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated that $40 an hour was $30.54 after taxes. That would average $5,293.60 per month.
According to the Cents Plan Formula, here is the high-level view of a $40 per hour budget:
Basic Expenses of 50% = $2646.80
Save Money of 20% = $1058.72
Give Money of 10% = $529.36
Fun Spending of 20% = $1058.72
Debt of 0% = $0
For someone making over $80K gross annually, this should be completely doable assuming there is no debt involved. The risk most people find themselves in is lifestyle creep and keeping up with the Joneses.
You can be strategic with your saving and investing to quickly become the millionaire next door. Then, that will allow a level of time freedom you have never experienced.
To further break down an example budget of $40 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $40 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$555
Savings
15-25%
$1387
Housing
20-30%
$1595
Utilities
4-7%
$347
Groceries
5-12%
$416
Clothing
1-4%
$69
Transportation
4-10%
$243
Medical
5-12%
$347
Life Insurance
1%
$21
Education
1-4%
$35
Personal
2-7%
$94
Recreation / Entertainment
3-8%
$187
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1640
Total Gross Income
$6,993
**This is a sample budget. You can adjust your categories based on your personal situation.
Can I Live off $40 Per Hour?
At this $40 hourly wage, you are making more than $80K per year. Slowly climbing to $90000 a year and you should live comfortably on this annual salary.
This is well over the median income of $60,000 salary. That means you should be able to increase your savings percentage each year and live better than 80% of the world.
The question is, are you? Or are you straddled in debt? Struggling and living paycheck to paycheck?
Unfortunately, too many people are still struggling even though they are making nearly 4x the minimum wage.
Should living on $80K be doable? Absolutely.
Don’t be caught in a tough situation. You need to live below your means. If not, you are wasting too much of your hard-earned cash.
Can you truly live off $40 an hour annually?
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
Just like any wage… you must spend less than your income. Plus consistently save.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am blessed to make more than the average worker. So, I must live on that paycheck or find ways to start diversifying my income into multiple streams and start investing. Then, I am going to give back to what helped me to get where I am today.
In the next section, we will dig into ways to increase and diversify your income, but for now, is it possible to thrive on $40 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $40 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Annual Salary
This right here is the most important section of this post.
Even though, you are making good money. You might have reached a maximum ceiling of income in your field. You may need to change companies.
More often than not, you need to find ways to diversify your income. One type of income will get you far in your personal finance journey, but to truly see faster progress you need multiple streams of income.
Finding ways to increase your monthly paychecks by $500 or $1000 will add up over the year.
At this point, you want to look for at least a $1 increase to $41 an hour, $42 an hour, $43 an hour, $44 an hour, or $45 an hour.
1. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: 20 Genius Ways on How to Make Money Fast
2. Earn Passive Income
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and becoming financially stable.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in less than a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Related Reading: How Fast Can you Make Money in Stocks? The Real Answer
3. Become a Freelancer
When you make $40 an hour, you are good at your job. You know what you are doing and people are willing to pay you for it.
Pick up side jobs and spend your free time as a freelancer.
This is one of the best ways to make extra money without a lot of upfront effort or costs.
I know plenty of people who make a living as freelance writers.
The options are endless if you are willing to think outside of the box.
4. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
If that does not pan out, then look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $40 an hour isn’t worth it for you if you’re not able to enjoy life; maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
5. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
Tips to Live on $40 an Hour
In this last section, grasp these tips on how to live on $40 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $40 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $40 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which $40 an hour minus all the taxes, FICA, Social Security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your gross income. Learn more about gross pay vs net pay.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
4. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Pick one of the money saving challenges and save more money than before.
Learn to 10k in 100 days with this envelope savings challenge!
It could be participating in a no spend challenge for the month.
Use budgeting apps to help you find more money to save.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are plenty of things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money and set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Jobs that Pay $40 an Hour
You can find plenty of jobs that pay $40 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
$40 Per Hour Annual Salary
In this post, we detailed 40 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 40 dollars an hour annually…
$83,200
Up next is making over $95000 per year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactlyhow much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
A Doctor of Pharmacy (Pharm.D.) degree is a four-year, licensed professional degree that teaches students how to fill prescription medications and how to educate patients about using prescriptions safely. Pharmacy school can be expensive, adding up to nearly $200,000 dollars on the high end.
With that price tag, it’s not a surprise that pharmacy students may have to rely on a few different sources of financing to pay for school, sometimes using a combination of savings, grants, scholarships, and student loans. This article will review the pharmacy school costs, the amount pharmacists can make, and nine tips for paying for pharmacy school.
How Much Does Pharmacy School Typically Cost?
The cost of pharmacy school can vary depending on where you enroll, the location, and the extent to which public dollars support the university you plan to attend. As mentioned, the complete cost of pharmacy school can add up to $200,000. The cost can swing higher for students who opt for an out-of-state institution. The American Association of Colleges of Pharmacy (AACP) lists the tuition and fees for pharmacy school for the 2022-2023 academic year on its website, which can help you compare costs at the pharmacy schools you may be considering.
For example, the first school on the list, Auburn University, costs $22,736 for in-state pharmacy students and $43,508 for out-of-state students. Mandatory fees cost $410 for 33 credit hours for students in their first year. However, in the fourth year, it costs $27,216 for in-state students and $58,374 for out-of-state students, with $210 for mandatory fees for 46 credit hours.
It’s worthwhile to compare the costs of various institutions before you make a decision. However, remember that financial aid can potentially bring the costs down further, so don’t rely completely on the published tuition prices. A conversation with the financial aid office at each school may give you a more in-depth analysis of how much it will actually cost, taking your personal situation into account.
Is Pharmacy School Worth It?
For the right individual, pharmacy school can be worth it. The costs of pharmacy school may seem daunting, but the professional perks, ability to become a part of a healthcare team, job opportunities, and career stability can mean that pharmacy school is the right option for many individuals. The high salary of pharmacists may also make pharmacy school worth it.
How Much Can Pharmacists Make?
The 2023 median pay for pharmacists was $136,030 per year, or $65.40 per hour, according to the Bureau of Labor Statistics (BLS). Job outlook from 2022-2032 will increase 3% per year, which is as fast as average.
9 Tips for Paying for Pharmacy School
Think of paying for pharmacy school as a pie. There are many ways to pay for pharmacy school by dividing that pie. For example, various pieces of the pie might make up scholarships, grants, loans, and money out of your own pocket. No matter how you slice the pie, every dollar you contribute is an investment into your career and your future. We’ll discuss scholarships, including university, pharmacy, and private scholarships, as well as grants in the next section.
1. Scholarships
Scholarships are funds that you don’t have to pay back. You can get scholarships as a pharmacy student from a number of different sources, including from the university that you plan to attend as well as through designated pharmacy scholarships and private scholarships.
It’s worth considering other interests beyond pharmacy. Scholarships may be awarded based on heritage, location, or even hobbies or special skills. Maybe you have talents in another area that qualify you for additional scholarships.
University Scholarships
Pharmacy colleges and schools traditionally offer direct financial assistance to pharmacy students through various sources, including alumni associations and local chapters of pharmaceutical organizations and fraternities.
Consider setting a meeting with the financial aid office at the university you plan to attend to learn more about specific scholarships from each pharmacy school you’re interested in attending.
Pharmacy Scholarships
Local and state pharmaceutical associations, practicing pharmacists, drug manufacturers, and wholesalers may offer pharmacy scholarships to promising pharmacists, as well.
For example, 10 pharmacy students annually can receive a $5,000 Walmart Health Equity Scholarship. Students must be accepted or enrolled in the professional curriculum at a U.S. college or school of pharmacy, and show evidence of leadership skills, academic success, and must have a preference to serve rural or medically underserved patients.
Here’s another example: Five underrepresented minority students can receive the CVS Health Minority Scholarship for Pharmacy Students annually. Students must be African American, Hispanic or Latino, American Indian, Native Hawaiian, and/or Pacific Islander students, as well as U.S. citizens or permanent residents. Each successful candidate will receive a single $7,000 scholarship.
Private Scholarships
Private scholarships come from companies, service groups and organizations, foundations, and individuals. For example, Tylenol offers a scholarship for students pursuing careers in healthcare, including pharmacy. There may also be scholarships available from local or regional organizations.
2. Grants
Like scholarships, you do not have to repay the money you receive from grants. Grants, which are typically based on need, can also be awarded based on merit. Filling the Free Application for Federal Student Aid (FAFSA®) automatically considers you for federal grants based on need. You may also become eligible for state grants. Your college or university can give you more information about the types of grants you’re eligible for through your pharmacy program.
3. Federal Student Loans
You may be wondering how to pay for pharmacy school without loans. It’s possible to do it through a combination of scholarships, grants, and savings, though many people take advantage of federal student loans through the U.S. Department of Education. Federal student loans have fixed interest rates and benefits such as income-driven repayment plans. Just like obtaining an auto loan or a mortgage, you must pay back loans with interest.
Federal student loans are a type of federal financial aid, and to apply, you must file the FAFSA. Learn more about the requirements for this application in SoFi’s comprehensive guide to the FAFSA.
You can qualify for two types of federal student loans for pharmacy school: Direct PLUS Loans and Direct Unsubsidized Loans.
Direct PLUS Loans
Pharmacy students can take advantage of Direct PLUS Loans, also called graduate PLUS loans or direct grad PLUS loans, to help finance graduate and professional school. The Graduate PLUS Loan comes from the U.S. Department of Education for graduate or professional students. In order to get one, your school must participate in the Direct Loan Program.
The Direct PLUS Loan is not need-based, which means you can get it no matter your income level. You can borrow up to the full cost of attendance and can use the money to pay for tuition, room and board, and fees. Your school will subtract other financial aid you receive (such as scholarships, grants, and fellowships) from the full cost of attendance and award you the difference with a Direct PLUS Loan.
The interest rate is 8.05% for Direct PLUS Loans first disbursed on or after July 1, 2023 and before July 1, 2024.
Direct Unsubsidized Loans
Similar to student loans for undergraduates, you can tap into Direct Unsubsidized Loans. You can borrow up to $20,500 per year with the Direct Unsubsidized Loan, and the interest rate is 7.05% if disbursed between July 1, 2023 and July 1, 2024 for graduate students. “Unsubsidized” means that the government doesn’t pay the interest while you’re in school and during the grace period.
It’s generally a good idea to first consider opting for the Direct Unsubsidized Loan, over a Graduate PLUS Loan. Why opt for the Direct Unsubsidized loan first?
You’ll pay more in interest for the Direct PLUS Loan (8.05% interest rate).
4. Private Student Loans
Private graduate student loans do not come from the federal government. They can come from a bank, credit union, or another financial institution and can be used to help finance college or career school. The amount you can borrow depends on the costs of your degree, but also depends on personal financial factors (such as your credit score and income).
You may have gotten advice that suggested exhausting all of your federal grant and loan options before you consider private loans because interest rates are usually higher compared to federal student loans. Additionally, private student loans don’t qualify for the same borrower protections as federal student loans, like income-driven repayment plans or deferment options. However, private student loans can be an option to consider if you need additional funding to cover your pharmacy school expenses.
Recommended: Things to know before applying for private student loans
5. PSLF Programs
The Public Service Loan Forgiveness (PSLF) Program is a federal student loan forgiveness program. More specifically, you may qualify to have the remaining balance on your Direct Loans forgiven after you have made 120 qualifying monthly payments under a qualifying repayment plan. You must work full-time for a qualifying employer in order to qualify and your employer must be a qualifying organization such as a federal, state, local, or tribal government organization or other nonprofit organization.
You must have Direct Loans or consolidate other types of federal student loans into a Direct Loan, repay loans under an income-driven repayment plan, as well as make 120 qualifying payments toward your student loans. The requirements for PSLF can be quite strict, so be sure to read the requirements closely.
For more information about PSLF programs and to learn more about your eligibility, contact your loan servicer, which is the entity that services your loan.
6. Pharmacy Internships
Pharmacy internships can be instrumental in your budding career as a pharmacist in helping you understand how pharmacies operate, learning the ins and outs of customer service, helping you dive into inventory management, and learning the professional skills necessary to become a pharmacist. You may also learn more from pharmacist professionals about leading a pharmacy team and help you bring tangible professional experience back to the classroom.
You may also want to look into pharmacy fellowships, which provide financial support in an external or internal capacity (in or out of the university environment). Assistantships also provide financial support in an academic department through teaching, research, or administrative responsibilities.
7. Work Part Time
You may want to consider working a part-time job in conjunction with pharmacy school. For example, if you attend school from 8am to 4pm, you may want to seek a part-time job after hours.
However, it’s important to consider your time constraints and whether you can succeed in your coursework. Consider your ability to manage your time before you take on a part-time job. However, for the right student, taking on a job can help pay for college tuition and give you an additional source of income. Networking opportunities and skill development can come from a part-time job, even if it doesn’t relate to pharmacy.
8. Borrow From Family
Do you have a family member who really wants to give you money for your education? You may seriously consider borrowing from your parents or a sister or brother (or whoever else wants to lend you money).
Just remember that it could strain family relationships if you fail to pay back the loan. It’s a good idea to have a plan in place to repay your relative(s) as well as create boundaries, so both parties feel good about the arrangement.
9. HRSA Loans
The Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services, improves health care for geographically isolated and vulnerable individuals.
The Department of Health and Human Services (HHS), through the HRSA, also offers several loans for health services students. For example, Health Professions Student Loans are available to individuals who study pharmacy (as well as dentistry, optometry, podiatry, or veterinary medicine). Pharmacy students who show financial need may also be able to tap into Loans for Disadvantaged Students (LDS). Health professions student loans have fixed interest rates of 5%, lower than both Direct Unsubsidized Loans and PLUS loans. They also allow 12 months of grace periods, while most other loans only offer six months of grace periods. In addition, health professions loans are subsidized, which means you don’t pay interest on the loan while you’re in school, nor do you pay additional loan fees.
However, they come with a few downsides: Not all schools participate, and there are no set borrowing limits. You also can’t tap into income-driven repayment plans or PSLF.
Private Student Loans for Pharmacy School
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
Can you use FAFSA for pharmacy school?
Absolutely! It’s generally a smart idea to file the FAFSA for pharmacy school, no matter your financial situation. The FAFSA can give you access to a range of financial aid options, including scholarships (your school will consider your eligibility based on the FAFSA results), grants, loans, and work-study. You want to be able to put together the best financial aid options for your needs, and the best way to do that involves filing the FAFSA.
Does CVS or Walgreens pay for pharmacy school?
CVS and Walgreens both offer pharmacy scholarships, like the ones we listed above, the Walmart Health Equity Scholarship and the CVS Health Minority Scholarship for Pharmacy Students. If you work for either company, you may also qualify through each company’s employee tuition reimbursement program. Check with the human resources department at each company for more details.
How much can pharmacists make after graduating?
The 2023 median pay for pharmacists was $136,030 per year, or $65.40 per hour, according to the Bureau of Labor Statistics (BLS). The job outlook for pharmacists is 3% from 2022 through 2032, which is as fast as average.
Photo credit: iStock/cagkansayin
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Welcome to the 30 Day Money Challenge!
Today, you will learn how to make your money work for you. You don’t have to be a millionaire before knowing these things, but it’s important for everyone who wants financial stability.
Remember these keywords: saving and investing? This is where they come into play for long term success.
It’s not too late to make the right financial decisions.
But, finances are complicated and intimidating for most people so it can be hard to get started.
The 30 Day Money Challenge is here to help with that.
This 30 day financial challenge will help you create a strategy that can save, spend less, and make more by the end of this month!
Are you ready to dig into this month-long money challenge?
What is the 30 Day Money Challenge?
A money challenge is a plan for how to make your finances work better.
It can be as simple as spending less or eating out less, or something more complicated like saving up for retirement or buying a house.
During this month’s timeframe, you will dig into all areas of your finances to make sure you are on track to reach your money goals.
If you do not have financial goals, then we will make sure you do at the end of this money challenge.
I’ve seen a lot of spending challenges out there that are basically just a saving money chart telling you how much money to save each day to save $1000 or $500 in one month, but they don’t tell you how to save the money. That is where the rubber meets the road and this challenge will motivate you to improve your money habits.
Overall, you will learn more about your finances than you did previously.
Why a Money Challenge is Important
A 30 day challenge is a great way to get yourself motivated and focused on saving money and improving your money management.
The goal is not enough, you need the why behind it in order to see your savings grow.
This can be as simple as:
– Setting up a direct deposit from your paycheck to an account you control and only spending what’s in that account.
– Spending less on impulse buys.
– Cutting back on luxury items to save money.
– Living more in cash and less in credit card debt.
You can also take knowledge in knowing the number of our readers who have taken the challenge to improve their money management skills.
3 Steps to Start the Money Challenge
The 30 Day Money Challenge is a simple process that starts with 3 steps.
Your reward for participating in the challenge is pretty appealing, but the process can be hard for some.
So, know these steps before you start the challenge.
1. Pick a Time
While there is no good time to start, you need to find a time when you have the highest probability of success.
Starting the money challenge during the holidays will leave you defeated. Maybe starting as a New Year’s Resolution. Or during a quieter time throughout the year.
You need to find the “right” time because you will have to dedicate at least 10-30 minutes per day. However, the longer you put it off, the less likely you are to start.
2. Be Prepared
More than likely, you will be ripping off the band-aid on some old money failures and defeats. This is common.
You have to be mentally prepared to overcome these negative feelings towards money in order to find that breakthrough moment.
3. Accountability
Find someone to keep you accountable during the challenge.
There will be points when you want to accept defeat and run back to your old money ways. It’s great to create a support system for managing money wisely.
If those old money habits didn’t serve you well before, then how will they serve you moving forward.
You need to keep your eye on the prize!
Thirty Days of Money Challenges
A 30-day money challenge is a popular type of personal finance experiment in which participants take a pledge to review their finances and overcome any obstacles that are preventing them from long term financial stability.
The goal is to teach people how quickly they can change the trajectory of their personal finances before they snowball into a serious money problem.
Day 1 – Get Organized
If you don’t have an understanding of how many accounts you have, credit cards you have open, or debt payments that are due, then you must get your personal finances organized.
Start here to learn how to organize personal finances.
Day 2 – Understand your Income
If you do not know how much do I make a year, then you must figure that out first.
It is impossible to manage money if you do not know how much money is coming in.
Also, consider all types of income sources – earned, passive or investment.
Day 3 – Understand your Expenses
Understand where your paycheck is going. When you understand how much of your money is going to things like rent, utilities, and mortgage, you can make better decisions about spending.
This is not the time for “this-is-where-I-hope-my-spending-goes;” this is the true reality of how you spend money.
Day 4 – Pay Yourself First
This is a must for long-term success. Every time you get paid, you need to pay yourself first. Put a percentage of your paycheck into savings each month before anything else is spent on non-essential items.
We suggest starting with at least 5% of your income. Even better, you want to start with 20% of your income.
You must cut your fun spending until you can save money first.
When saving becomes an automatic habit, start investing through high yield accounts like IRAs and 401(K)s.
Day 5 – Automate your Emergency Savings
Set up a transfer to put $50 into your Emergency Fund every time you get paid.
Learn how much you need in your emergency fund. Remember, the goal is never to use your emergency fund, but you always want one – just in case!
Day 6 – Create Money Goals
Figure out what your financial goals are and how much they will cost over time, then come up with a strategy to achieve them.
You need to make a plan to reach your money goals.
If you skip this step, you may be lucky and still reach your goals. But, you can find better prosperity but writing out those money goals and maybe even using a vision board.
Learn how to create smart financial goals.
Day 7 – Budget Time
Crazy! I know. Most people would think that creating a budget would need to be first. But, it isn’t. You need to figure out days 1-6 first before you dig into budgeting.
Begin tracking your expenses on paper or online as soon as possible. Here are the best budgeting apps available.
The goal with the budget is to focus on saving first, then your expenses. you must spend less than you make.
Day 8 – Make More Money
Come up with ways to generate more income. Period. You need to make your money work for you.
You need to learn how to make your income work for you by creating streams of income outside of your primary work or “earned” income.
Theoretically, if multiple streams of revenue exist at your full-time job, you can work fewer hours than necessary.
Ways to Make Money:
Day 9 – Enough with Debt
Debt will hold you back. Period.
You need to recognize that paying off your debt is the best thing you can do for your finances. However, during this 30 day financial challenge, it is not the time to focus on paying off debt.
Calculate the total amount of debt (except mortgage).
Put down getting out of debt as one of your money goals and the timeframe to make it happen.
For now, don’t take on more debt, and make sure you’re paying the minimum on your credit card balance.
Day 10 – Understand Investing
Investing is a way of giving your money the opportunity to work for you. In other words, you are using what you have now in order to make more out of what you have in the future.
This is the first step to earning investment income that will fund your lifestyle.
Typically, most people associate investing in the stock market. Many people invest with their 401ks or IRAs. However, you can invest your personal income as well.
What if you could earn a return on that opportunity cost? For example, what if you invested the $10 in your wallet and it grew to be $20?
Learn how to start investing.
Trade and Travel 2.0
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
Day 11 – Control Excess Spending
Every time you spend money, it is an opportunity cost to your future self. You are trading away your future self’s money to buy something today.
Is that what you want?
More than likely, no.
Learn how to drastically cut expenses.
Day 12 – Autopay your Bills
Consider setting up an autopay feature for your bills. It can help you avoid late fees and will have a steadier flow of money coming in.
This will help you to make sure you have the cash flow available to meet your expenses.
Day 13 – Avoid Fees
One of the best ways to save money is by avoiding fees.
If you have a credit card, consider switching to one with no annual fee or an introductory offer that expires after one year.
Check your bank and credit card statements for any fees you may not be aware of.
If there is a fee, call the company and negotiate to have it removed or reduced.
Day 14 – Automate Retirement Contributions
You should automatically make a certain percentage of your salary go to a 401k or other savings account, and the other percentage goes to your checking account for spending money.
This is something your human resources department can help you set up.
Day 15 – Increase your Retirement Contributions
Now, that you have automated your retirement contribution, you want to increase you much your contribution each year until you are maxed out by IRS limits.
Start to increase your retirement contributions by 1%.
Set a five-year goal to fully max your retirement contributions!
Halfway Point!!
You’re halfway through the 30 day money challenge!
Keep up the good work and keep reaching for your goals.
You’ve made it this far, so just imagine what you’ll be able to do in another month of working hard towards saving more money.
Day 16 – Communication
Don’t think money has to be a taboo topic. In fact, you need to be comfortable talking about money.
The key is to be on the same page with key family members about where money should go. This is something that we struggled with our marriage and had to overcome. Thankfully, we did and we made way more progress than previously.
Day 17: Invest in yourself
I know you’re probably tired of hearing about investing in yourself, but it’s important. Investing means putting money into something that will make more money back. You might not think this applies to you, but it really can! You might not have a big budget for investing in stocks or mutual funds right now, so let’s talk about something you do spend money on every day: you.
You only learn by growing.
Day 18 – Start Reading About Personal FInance
This isn’t something that you do once or twice. Make it a goal to read books on money or personal finances each month.
Importantly, make sure you are reading books, regardless of what aspect they look at money. It is never too late to pick up new tricks or ideas.
Plus learning from others’ money stories is powerful.
Day 19 – Free Fun
Participating in only free activities for 30 days, and refusing to spend a single penny, we created a guide to make that happen for you.
101+ Things to Do with No Money
After writing that post, we discovered this is one of the best money saving ideas out there. This guide not only teaches you how to save money but also teaches about where you want to spend money and the importance of living a purposeful life.
Day 20 – Review Insurance
You need to make sure you are properly covered with insurance as well as not paying too much money for your policies.
There are all of the types of insurance you need to review:
This is something you should do once a year.
Day 21 – Waste Less Food
You need to learn to save money by wasting less food.
This doesn’t mean you have to make homemade meals every night of the week! The goal is not to throw food away – that is hard earned cash going right down the trash.
Ways to Save Money on Groceries:
Day 22 – Buy Second Hand
Consider second-hand stores and consignment sales as options for buying used items. Thrift stores are also great to save money on clothes and other household items.
The same is true for buying cars, baby equipment, kids clothes, etc. Plus you protect our world.
Day 23 – Save Money
So, this day is all about saving money and I think that it’s the most important one of them all because if you’re not saving your money, then what are you doing with it? You’re throwing it away.
So today, I want to talk about two different types of saving money – physical and mental. The first one is all about physically saving your money. This is the easiest one because it doesn’t require any effort on your part to do so, but it’s also very important as well.
The second type of saving money is mental saving. This is all about saving your money because you know that something better will come along soon and it gives you hope for the future!
So, I think these two types of savings are both really important.
Day 24 – Give Back
This is the time to give back to others, donate money to charities, and put small contributions into charity.
By hoarding money, you are not learning the principles of helping others just like you have been helped along the way.
Day 25 – Renegoite Interest Rates
Right now, we are not starting to pay off debt. We are looking for ways to save on higher interest payments.
Make calls to renegotiate your interest rates on your debt. If the credit card company says no, then look at a zero interest transfer.
Just no more debt.
Day 26 – Avoid Scarity Mindset
You have to believe in yourself that you are capable of achieving great things and that includes success money.
However, we get caught in this trap of hoarding materialistic items in order to make up for the dollars in our bank account or money that was wasted in buying them.
If you don’t believe how poverty mentality overwhelms your life, then read this story of reclaiming your home with decluttering.
Day 27 – Cut Out What you Don’t Need
If you are not using something, sell it or give it away to someone who can use it more than you do!
You’ll save money and make room in your budget for the things that matter.
We learned a lot when we started to own less stuff.
Day 28 – Prepare for a No Spend Challenge
If you have not been able to keep your spending in check, this is an excellent opportunity for you to try out a no spend challenge once this challenge finishes.
A no spend challenge will help you to review your budget and see what areas of spending need more attention in order to increase savings or pay down debt.
Also, it will help you focus on what area are important to spend money.
Day 29 – Reward Yourself
This is the biggest lesson I learned when paying off debt and trying to increase our savings percentage. I became unable to spend money. I would feel guilty about spending money.
That is not the type of life you want. You must be comfortable spending money (especially if you are a thrifty person).
Pick rewards to match your smart financial goals. Keep motivated with those rewards.
Day 30 – Stay on Track
Proper money management does not end just because the end of the 30 day challenge is over. This is a lifelong skill to master and perfect.
Keep focused by not going over budget limits and being honest about where you really stand financially today as opposed to where you want it to be in the future.
You can stay on track if you have a deep desire to continue.
30 Day Money Saving Challenge
This one is just about saving money. Period.
Each day, you save money to reach your goal.
For many people, the 30 day money saving challenge will make sure you are on track with your goals and objectives.
At the minimum, you should be able to save $500 in 30 days. But, you need to decide what you want to save in a month.
The challenge is open to everyone, so this might be the perfect opportunity for you!
What is the 30 Day Money saving Challenge?
The 30 day money saving challenge is saving a set amount of money during the month.
Keep in mind, not everyone will be able to save this much in 30 days and that’s perfectly okay.
You need to make it work with your budget.
Another option for the 30 Day Money Challenge is committing to give up one or more expenses for the whole month. For instance, pick ten things that cost you money and give them up for 30 days.
How to get started with the 30 day savings challenge
The 30 day savings challenge is a simple but effective way to get started saving money.
You can choose any of these methods:
Take the amount you want to save and divide by 30. That is how much to save daily.
Determine the amount to save and take that immediately when you are paid.
It is easy to go in order or skip around depending on what amount you want to save each day.
Keep change hidden in jars and watch it add up over time, then put the money away every day and see where they rank at the end of the month.
Give up a certain expense and save that money.
Try a modified version of the 100 day challenge.
You can find plenty of money saving challenge printable or PDF in our resource library.
Want more easy money saving challenges?
Are you in for this 30 Day Money Reset Challenge?
This is only a 30 day money challenge because it’s a short period of time to gain a win. That is what you need to keep up the motivation as well as have a strong kickstart to your finances.
In order to build wealth through their finances, these are 30 smart moves that require no time on some days.
Don’t lose momentum. If you miss a day, then jump back into the challenge the next day.
The key to success for 2021 is to take control of your finances.
Photo Credit:
www.rakuten.com
The Shopping Trick to Save Hundreds of Dollars
Personally, I love to shop online from the convenience of my own home and have packages delivered to my house. Plus you can get paid to shop online!! The process is super simple.
Just head here to get an Rakuten/Ebates account, click on the retailer you are shopping online, and then complete your checkout process as normal.
Already a Rakuten / Ebtaes member? Make sure you have the Extension Buttonfor automatic savings!
Photo Credit:
www.asktrim.com
Perfect for the person who hates to hassle with canceling subscriptions and checking spending. Trim is a virtual personal assistant that constantly works to save users money.
Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.
Photo Credit:
ibotta.com
Ibotta can be used for grocery stores, drugstores or online shopping. Once you accrue $20 in your account, you can transfer it to PayPal or venmo or buy gift cards to selected retailers.
Just for signing up, they will give you a bonus when you use use this link. Ibotta rocks at bonus categories and offers. This is where your cash back can really add up fast.
Photo Credit:
checkout51.com
Checkout 51 can be used for grocery stores or drugstores. Their offers are valid each week from Thursday-Wednesday. With new offers released each Thursday.
One of my favorite offers is the “Pick your own offer” – it is a selection of 5 fruits of veggies to redeem for extra cents cash back. Once your account balance is over $20, they will mail you a check.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Tomarse esas vacaciones tan necesarias mientras se encuentra en un viaje de pago de deudas puede parecer imposible, pero no tiene por qué serlo. Si planifica unas vacaciones que se ajusten a su presupuesto y mantienen sus objetivos encaminados, podrá transportarse a un lugar nuevo y recargar su energía.
Es un enfoque que Jasmine Gillians, especialista en permisos de ausencia y YouTuber del canal Jazzie RayShaune, está adoptando con su pareja. En su segundo viaje de pago de deudas, la pareja de Kansas City, Missouri, está trabajando para eliminar alrededor de $64,000 en deuda restante. Antes, tomaban el camino más estricto de quedarse en casa todo el tiempo y evitar gastar en extras. Ella lo resume como “miserable”.
“Los dos trabajamos tiempo completo y queremos poder respirar aire fresco, pero también queríamos estar conscientes de que todavía tenemos deudas que pagar”, dice. “Nos gusta salir, nos gusta divertirnos, pero nos acabamos de dar cuenta que todavía podemos hacerlo con un buen presupuesto”.
El futuro no está garantizado, en especial cuando se trata de vacaciones con familiares mayores o si se comienza un trabajo nuevo que no acumulará tiempo libre remunerado durante un tiempo. A la hora de decidir si viajar o no, tenga en cuenta el costo emocional y monetario. Elija la opción de no arrepentirse que le permita mantenerse fiel a su plan de pago de deudas.
Aquí hay algunas formas de equilibrar la prioridad de la deuda (en inglés) sin dejar de tomarse esas vacaciones.
Revisar el presupuesto
Revise los estados de cuenta de las tarjetas de crédito (en inglés) y débito para saber adónde se va el dinero. Conozca sus números, incluidos los ingresos, los gastos y las deudas, sugiere Tiffany Grant, consultora financiera acreditada con sede en Carolina del Norte. Comprenda cuánto debe aportar mensualmente para pagar sus deudas antes de la fecha límite y evite contratiempos creando un fondo de emergencia.
Utilice esta información para ver si también es posible iniciar un fondo de vacaciones. Si el dinero es escaso, considere si enfocarse sólo en las deudas tiene más sentido.
“Si no puede realizar sus pagos, y ni siquiera los pagos mínimos, y tiene resultados negativos todos los meses, entonces probablemente no debería viajar”, dice Grant. “O si lo hace, que sea algo de costo muy bajo”.
Considere también si es posible cortar en ciertas áreas (en inglés) para acelerar los ahorros. En lugar de adoptar el enfoque estricto del proceso anterior de pago de deudas, Gillians encontró formas de cortar gastos para permitir una mayor flexibilidad con el gasto.
“Cosas como tener una noche de cita no tiene que ser una cena y una película, puede ser una noche de cine en casa”, dice. “Ya estábamos haciendo ejercicio la mayor parte del tiempo en casa, por lo que cancelamos nuestras membresías en el gimnasio”.
Para ahorrar más, Gillians dice que también cambió a proveedores más baratos para cosas como servicios de streaming. Con estos ajustes, Gillians pudo planificar unas vacaciones en Destin, Florida, para celebrar los 50 años de su pareja.
Hacer un plan
Piense en destinos e investigue los posibles costos de transporte, alojamiento, actividades, comida y posiblemente tarifas por las transacciones en el extranjero (en inglés). También deje un colchón en ese presupuesto de vacaciones para gastos imprevistos.
Considere estas opciones para encontrar ahorros:
Canjear recompensas. En un viaje de pago de deudas, no es ideal buscar recompensas de tarjetas de crédito, pero utilizar las que ya se han ganado puede ayudar a cubrir los costos de unas vacaciones. Las recompensas obtenidas a través de un programa de fidelidad también pueden reducir los costos. Gillians dice que pudo ahorrar $40 en su viaje con las recompensas obtenidas a través de Vrbo.
Explorar actividades gratuitas o de bajo costo en su destino. Piense en formas de experimentar un destino con un presupuesto limitado. Por ejemplo, considere realizar un recorrido a pie gratuito (muchas ciudades los ofrecen), explorar un parque nacional en un día libre (en inglés) o disfrutar de algo de cultura con la entrada gratuita al museo (en inglés). Si su presupuesto lo permite, también puede disfrutar la experiencia de un centro turístico sin el alto precio. Las compañías como ResortPass le permiten pagar por el uso del spa, la piscina o el gimnasio de un hotel durante el día. Sin embargo, si está con un grupo grande, estos costos se pueden acumular.
Cocinar sus comidas. Al comprar alimentos fuera de las zonas turísticas pobladas y preparar sus propias comidas, ya sea en un hotel o en un alquiler vacacional, ahorrará dinero en comparación con comer en restaurantes. Si eso no es para usted, incluya los gastos de comidas en el fondo de vacaciones.
Ser flexible con los alojamientos. El lugar donde se quede depende de sus preferencias y necesidades. Evalúe una variedad de opciones, incluidos campamentos, hostales, alquileres vacacionales que pueda dividir con un grupo y ofertas de hoteles de última hora. Una oferta de hotel “misteriosa” a través de un servicio como Priceline o Hotwire puede ayudarlo a ahorrar en costos, pero los detalles clave del hotel son secretos hasta que hace la reservación. Sólo verá el precio, el número de estrellas, la calificación de los huéspedes, fotos limitadas, una descripción general de la ubicación y una lista de servicios.
Comprometerse con el transporte. Haga que los viajes sean más asequibles quedándose en su localidad o viajando fuera de temporada. Los sitios web como Going, Fare Deal Alert y The Flight Deal pueden avisarle de vuelos baratos. Además del costo de volar o conducir hasta su destino, tenga en cuenta el precio del transporte una vez que llegue. Si es seguro utilizarlo, el transporte público puede ofrecer costos más bajos que los viajes compartidos, los taxis, los autos de alquiler u otras opciones.
También considere otras formas de ahorrar. “Yo guardo las tarjetas regalo que me dan en Navidad y cumpleaños”, dice Gillians. Para su próximo viaje, dice que utilizó tres tarjetas de regalo de aerolíneas para ahorrar $300 en vuelos.
Buscar descuentos. Es posible que califique para descuentos basados en el empleo, una tarjeta de crédito u otra opción. Si tiene una membresía AAA o un club de almacenes, por ejemplo, puede ser elegible para recibir descuentos en alquiler de autos, hoteles o entradas para eventos deportivos y parques temáticos. Algunas tarjetas de crédito también ofrecen descuentos cuando las utiliza para comprar en comercios específicos. Si puede pagar la compra en su totalidad y evitar arruinar su proceso de pago de deudas, esta opción podría permitirle ahorrar en comidas, hoteles y más.
Este artículo fue publicado originalmente en NerdWallet en inglés.
Mohtashami kicked off the sessions by talking about the differences between the current mortgage rate environment and some of what was seen in the early days of the financial crisis of the 2000s, saying that Americans generally are in a much better position than they were back then.
The Fed has recently indicated that it is not likely to reduce interest rates anytime soon due to economic indicators, and Mohtashami revived a 2022 prediction about what it will take to get the Fed to “break” on rates.
“In 2022, I brought up the premise that the Fed will not pivot until the labor market breaks,” he said. “So, if all of you are looking for a sustained lower move in mortgage rates, that’s what you’re going to see.”
While a lot of the oxygen in the discussion is taken up by inflation, Mohtashami asserts that’s not what the Fed is primarily focused on.
“What the Fed wants to see is the labor market get very soft and to the point that it’s breaking, and then they will find all the confidence in the world to do rate cuts and talk about making sure we have a soft landing,” he said.
Reading the data, he said, might tell a different story about the situation as opposed to strictly paying attention to what Fed officials are saying.
Illuminating data points include wage growth, job openings, the number of people quitting to find higher-paying work, and jobless claims on a weekly or monthly basis. These help observers to monitor changes in the labor market similarly to the Fed, he explained.
From there — and when combined with employment in construction and housing permit data — the thinking around rates will become clearer.
“If the labor market gets softer and the Fed starts getting a little bit more dovish, then not only can the spreads get better, but if the 10-year yield goes down, there’s your 6% [or] sub-6% mortgage rates,” he said. “But this means the labor market has to break. So, we’re all focusing on inflation, but not what really matters.”
Simonsen: More data, less ‘vibes’
A lot of the conversation in the housing market can be focused on “vibes,” or general feelings about the way things are going. Simonsen explained to attendees at The Gathering that focusing instead on real-time data is key to having accurate, predictive indicators about where the market is at and where it will go.
Simonsen began his presentation by talking about an early Altos interaction with both Goldman Sachs and Lehman Brothers. In 2007, right around the time he started Altos Research, he was attending a conference where representatives of both companies were speaking. After they finished speaking, he aimed to pitch both companies on why they might need the kind of data Altos specializes in.
He recalled his pitch.
“I’m Mike Simonsen, my company is Altos Research, and we track every home for sale in the country every week,” he recalled saying. “We check all the pricing, all the supply and demand, and all the changes in that data, and we give that to you because traditional housing data is months behind the curve before you see what’s happening.”
The Lehman representative turned him down flatly, saying, “We’ve got so much more data than you can possibly imagine. We’re making so much money. Don’t even bother,” Simonsen recalled.
The Goldman representative was more open to hearing what he had to say, and 12 weeks later engaged with Altos as a client. A year later, Lehman Brothers went out of business, Simonsen explained.
Simonsen asserted that monitoring changing data points on a daily and weekly basis — including inventory levels, new and pending home sales, and home price data and signals —can help to more efficiently track the impact of mortgage rates.
“I believe that our obligation is to communicate with the data for everybody in the cycle, from the biggest players down to every single homebuyer and seller,” Simonsen said.
He began by looking at fresh inventory data.
“The biggest takeaway from when we’re looking at the inventory numbers is rising rates constitute rising inventory — or put another way, demand slows, inventory grows,” he said. “And that’s actually counterintuitive for a lot of folks who are just casually looking at the data.
“They think, ‘Mortgage rates are higher, nobody’s going to sell, therefore inventory is going to fall when rates fall again. Then we’ll finally get some inventory.’ But the data shows that actually, the opposite is true.”
Multiple years of higher rates will be needed to return inventory to pre-pandemic levels, but inventory growth is rising across the country, particularly in states like Florida and Texas, he explained.
More home sellers are also starting to enter the market. Last year, rising rates depressed seller participation, but higher rates are starting to be seen as more of a norm. A general sense of predictability will allow more sellers to enter the market, he said.
Prices are likely to remain stable due to higher rates, he added.
“More data, less vibes,” Simonsen said.
Fairweather: Less affordability
Daryl Fairweather of Redfin primarily spoke about housing demand; generational participation in the market; the impact of climate events and natural disasters on homebuying activity; and the flexibility that renters might experience, particularly as weather events become more prominent nationwide.
“People are spending more and more of their money on housing, and housing isn’t getting any more affordable,” she said. “We still have this underlying shortage of homes.”
But the presentation was primarily designed to be forward looking, and in that respect, interest rates and inflation are elevated, but the economy is growing. Demographics are also changing, with millennials being the largest generation and Gen Z being smaller but increasingly influential in the economy.
Changing preferences and economic realities are also disrupting long-standing paradigms related to housing in the U.S., she said.
“It used to be that homeownership was the American dream, and now it’s more the American pipe dream,” Fairweather said. “People just feel like it’s a ‘pie in the sky’ thing for them to achieve because housing affordability keeps getting worse and worse.”
Climate is also a very real issue having an impact on the housing market, Fairweather said.
“For a long time I would talk about a changing climate and people would say ‘That’s a problem for the future,’” she said. “But now, we’re seeing insurance costs going up and people are deciding where to live based on the climate. It’s becoming a more and more important issue in the housing market.”
Fairweather shared that Redfin experimented in 2020 to analyze the impacts that climate change can have on homebuying behavior over a three-month period in which users were divided into two pools: one that showed them a view of flood risk and one that did not.
“In the control view, there is no flood risk, and then in the treatment view, you could see flood risk for every single home that’s on Redfin,” she said. “The people that were shown flood risk — if they were previously looking at severely or extremely risky homes for flood risk — they went on to buy homes that had half as much risk when they saw that information,” she said.
This communicates a potential value-add opportunity for mortgage professionals to offer more robust climate information, in addition to where interest rates are projected to go or demographic information.
“[That can help] inform them about how to make the best homebuying decision,” Fairweather said.