If you’ve been paying attention, you may have noticed that mortgage rates have quietly crept back up to nearly 7%.
While it appeared that those 7% mortgage rates were a thing of the past, they seemed to return just as quickly as they disappeared.
For reference, the 30-year fixed averaged around 8% a year ago, before beginning its descent to nearly 6% in early September.
It appeared we were destined for 5% rates again, then the Fed rate cut happened. While the Fed itself didn’t “do anything,” their pivot coincided with some positive economic reports.
Combined with a “sell the news” event of the Fed cut itself, rates skyrocketed. However, now might be a good time to remind you that rates do tend to fall for a while after rate cuts begin.
Falling Rates Often Play Out Over Years, Not Months
As noted, the Fed pivoted, aka lowered its own fed funds rate, in September. They did so after increasing their rate 11 times during a period of tightening.
Hence the word “pivot,” as they switch from raising rates to lowering rates.
In short, the Fed determined monetary policy was sufficiently restrictive, and it was time to loosen things up. This tends to result in lower borrowing rates over time.
While many falsely assumed the pivot would lead to even lower mortgage rates overnight, those “in the know” knew those cuts were mostly already baked in, at least for now.
So when the Fed cut, mortgage rates actually drifted a little higher, though not by much. The real move higher post-cut came after a better-than-expected jobs report.
Lately, unemployment has taken center stage, and a strong labor report tends to point to a resilient economy, which in turn increases bond yields.
And since mortgage rates track the 10-year bond yield really well, we saw the 30-year fixed jump higher.
After nearly hitting the high-5s in early September, it completely reversed course and is now knocking on the 7% door again.
How is this possible? I thought the high rates were behind us. Well, as I wrote earlier this month, mortgage rates don’t move in a straight line up or down.
They can fall while they are rising, and climb when they are falling. For example, there were times when they moved down an entire percentage point during their ascent in 2022.
So why is it now surprising that they wouldn’t do the same thing when falling? It shouldn’t be if you zoom out a little, but most can’t stay the course and contain their emotions from dramatic moves like this.
It Can Take Three Years for Mortgage Rates to Move Lower After a Fed Pivot
WisdomTree Head of Equities Jeff Weniger crafted a really interesting chart recently that looked at how long mortgage rates tend to fall after the prime rate starts falling.
He graphed six instances when rates came down from 1981 through 2020 after prime was lowered. And each time, other than in 1981, it took at least two years for rates to hit their cycle bottom.
If we combine all those falling mortgage rate periods and use the average, it took 38 months for them to move from peak to trough.
In other words, more than three years for rates to hit their lowest point after an initial Fed cut.
As it stands now, we are only a month into the prime rate falling. But it’s important to note that rates had already fallen from around 8% a year ago.
They’ve now drifted back up to around 6.875%, and it’s unclear if they’ll continue to move higher before coming down again.
But the takeaway for me, in agreeing with Weniger, is that we remain in a falling rate environment.
Even if 30-year fixed rates hit 7% again, it’s lower highs over time as rates continue to descend.
Meaning we saw 8% in October, 7.5% in April, and perhaps we’ll see 7% this month. But that’s still a .50% lower rate each time.
The next stop could be 6.5% again, then 6%, then 5.5%. However, it won’t be a straight line down.
Still, it’s important to pay attention to the longer-term trend, instead of getting caught up in the day-to-day movement.
Mortgage Lenders Take Their Time Lowering Rates!
I’ve said this before and I’ll say it again for the umpteenth time.
Mortgage lenders will always take their sweet time lowering rates, but won’t hesitate at all when raising them.
From their perspective, it makes perfect sense. Why would they stick their neck out unnecessarily? Might as well slow play the lower rates if they’re not sure where they’ll go next.
As a lender, if you’re at all fearful rates will get worse, it’s best to price it in ahead of time to avoid getting caught out.
That’s likely what is happening now. Lenders are being defensive as usual and raising their rates in an uncertain economic environment.
If and when they see softer economic data and/or higher unemployment numbers, they’ll begin lowering rates again.
But they’ll never be in any rush to do so. Conversely, even a single positive economic report, such as the jobs report that got us into this situation, will be enough for them to raise rates.
In other words, we might need multiple soft economic reports to see mortgage rates move meaningfully lower, but just one for them to bounce higher.
So if you’re waiting for lower mortgage rates, be patient. They’ll likely come, just not as quickly as you’d expect.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Fall in Portland, Maine is a spectacular experience, filled with vibrant colors and a host of activities. September to October is the best time of year to enjoy the magic of fall in Portland, from the scenic coastal views to fun downtown festivities. Stroll through the charming streets of the Old Port, where you can explore local shops and enjoy seasonal treats at cozy cafes. Don’t miss the chance to visit nearby orchards for apple picking or take in breathtaking views on a scenic drive. With local festivals celebrating food, art, and community, there’s fall things to do in Portland, ME for everyone to enjoy.
Whether you’re searching for a house to rent in Portland, ME, an apartment to call home, or ready to purchase your first home in the city, , this city has so much to offer. Let’s explore 15 fall things to do in Portland, ME, where pops of color and cozy vibes create the perfect backdrop for autumn and give you a taste of why Portland is a good place to live.
1. Pop some tags at the local thrift shops
The community around thrift and vintage shopping in Portland is eclectic and supportive, hosting regular events like swap meets and pop-up markets. Whether you’re hunting for a vintage vinyl record, mid-century furniture, or stand-out fashion statements, you’ll be sure to find something unique at one of Portland’s thrift stores.
“One of my favorite things about Portland is the amount of thrift and vintage shops we have,” shares local photographer Shado of Shado of a Rose Photography. “All within a 10-minute walk you could get incredible vinyl at Moody Lords, find that new sweater you need for fall at Material Objects, or pick up a retro video game/movie poster from Electric Buddhas.”
And, if you’ve worked up an appetite while thrifting, Shado has you covered. ”If you’re in the mood for some food just pop over to Exchange street a few blocks away. Whether you’re getting incredible chicken from Crispy Gai, eating $1 oysters on a Wednesday night at Blyth and Burrows, or having dessert at Gorgeous Gelato, you really can’t go wrong when going out in the Old Port.”
2. Admire the fall foliage in Portland
Whether you’re walking, biking, or simply taking a drive, enjoying the fall foliage in and around Portland is a perfect way to experience the changing of the seasons. The contrast of the colorful foliage with the historic architecture and coastal scenery creates a picturesque setting that feels like a scene from a postcard.
Fall colors around town
“This small East Coast city, with its cozy New England town feel, offers a little bit of something for those wanting to feel at home or someone seeking a temporary home base to do some leaf-peeping in Maine during the fall season,” describes local Portland author Marpheen Chann.
One of the best ways to experience the fall foliage in Portland is by exploring the many parks and waterfront areas. “A walk or bike ride on smooth trails can take you around Back Cove, where you can get a quality photo of Downtown Portland from across the water at Payson Park. Continue your day at Portland’s Eastern Promenade, the perfect place for a picnic with scenic views of Casco Bay and its islands,” Chann shares.
Catch a train
You can also relax into a scenic tour of the fall foliage by hopping on the Maine Narrow Gauge. “From your comfortable seat on the historic train, take in the dazzling colors of autumn, set against the backdrop of Casco Bay. You’ll hear all about Portland’s history and learn about local landmarks from onboard narration,” describes Matt Levy, general manager of the Maine Narrow Gauge Railroad. You can also get special Pumpkin Train tickets for the last two weeks of October, and continue the fun into the holiday season with a Polar Express themed train ride.
Finish the day
Hungry after a day of exploring fall in Portland? “Experience some of Portland’s iconic and diverse restaurants without the summer crowds with Cambodian-Chinese eats at Oun Lidos on Market Street,” recommends Chann. “If you’re looking for a good spot for a drink or a casual date, pickup where you left off with a friend or a book at Novel on Congress Street or snag some downtown views high up at the Top of the East on High Street.”
Whether you’re walking around town or getting into the countryside, experiencing the fall colors in Portland is an autumn must-do – finished off with great food, of course.
3. Wander the picturesque streets of Portland
“Portland in the Fall is magical,” gushes Adria Moynihan Rusk, a painter at Still Life Studio in Portland. “You’ll skip the rush of summer tourists while being here at the most picturesque time of year. Check out the Old Port and Bayside neighborhoods to find a unique selection of local shops and breweries.”
Old Port
Portland’s neighborhoods offer a mix of maritime heritage and urban appeal, inviting you to spend your autumn days wandering their streets. “Fall is a perfect time to explore Portland,” agrees Sierra Bisson, author of the travel blog The Ocean Drifter. “Walk around the cobblestone streets of the Old Port, where you’ll find great shopping and amazing restaurants.”
Charming lanes and narrow alleys wind through the Old Port, where brick buildings house eclectic shops, art galleries, and cozy restaurants. “When you’re in the area, make sure to stop by must-try spots like Duckfat and Taco Escobarr,” Bisson continues. “If you’re in the mood for some nightlife, swing by Bonfire for a fun evening with a great atmosphere and drinks.”
The Waterfront
If you’re looking for places to stop by on your stroll, Rusk is full of suggestions. “Grab a latte at Bard Coffee and walk down Commercial Street to people-watch along the waterfront,” she shares. “Take the fairy out to Peak’s Island and back, and then head to Washington Avenue for a hot bowl of Pho Ga at Cong Tu Bot. Don’t forget to try the potato donuts at the Holy Donut.”
To finish off your day of exploring Portland in the fall, Rusk recommends, “Find a park bench on the East End promenade and watch the boat traffic skip across Casco Bay. It’s hard to do it wrong, so make an adventure of it.”
4. Warm your insides with local beer tasting
Portland, ME’s craft beer scene is renowned for its creativity, quality, and variety, making it one of the top destinations for beer lovers in the country. The city boasts a high concentration of breweries, from long standing favorites like Allagash Brewing Company to newer, experimental breweries like Bissell Brothers. Many breweries are located in Portland’s industrial areas and waterfront, offering taprooms where guests can sample a range of styles, from hoppy IPAs and smooth stouts to crisp lagers and sour ales.
“You absolutely have to check out at least one of the local breweries – Portland is known for its craft beer scene,” confirms Bisson of The Ocean Drifter blog.
Must-visit breweries
“Fall in Portland isn’t complete without attending Oktoberfest at one, or more, of the city’s great breweries,” seconds local tech expert and beverage connoisseur Dan DeSimone. “I especially like Belleflower, which is walking distance from a number of other breweries like Austin Street and Rising Tide. Tandem Coffee is right down the street too if you’re in the mood for a latte break (pumpkin spice optional) between beers.”
The East Bayside is another area that is renowned for its breweries, with local chocolate shop Dean’s Sweets offering the perfect neighborhood map to plan out your day of beverage sampling. “The East Bayside is one of the fastest-changing neighborhoods in Portland, ME,” reveals Kristin from Dean’s Sweets. “There are spirit makers, food trucks, hard seltzer, and cider right alongside the many breweries and wineries. And of course, chocolate at Dean’s Sweets, for those who want a gift for others or a nibble for yourself,” she laughs.
Join a beer tour for a unique beer-tasting experience
For a fun way to spend fall in Portland and sample the craft beer scene, consider a beer tour. “Join the Maine Brews Cruise for a cozy, festive journey through Maine’s craft alcohol scene amidst the backdrop of stunning fall foliage,” shares the Maine Brews Cruise team.
With options of a guided walk through the streets of Portland or having your own designated driver on a tour bus, the Maine Brews Cruise is perfect for those who enjoy a snug atmosphere while exploring local breweries, distilleries, and wineries. “With expert guides and a warm setting, you can learn, taste, and toast to the season – flannel attire recommended for the full autumn experience,” says the team.
You can also embrace Portland’s coastal vibe with a beer and boat tour through SeaPortland. “For those eager to experience Portland’s crisp fall beauty and rich history, SeaPortland provides exclusive tours that combine sightseeing with local brew tastings,” describes the crew. “You can explore historic Fort Scammel or enjoy a Harbor Cruise, where the vibrant fall colors enhance the flavor of each locally brewed beer. These 90-minute tours promise a blend of good vibes and spectacular sights, ideal for anyone looking to savor the season.”
However you prefer to indulge in the local craft beer scene, the city’s community-focused beer culture is a great fall thing to do in Portland.
5. Get outside into Portland’s local landscape
Portland is a mix of coastal beauty and historic urban charm. Located on a peninsula overlooking Casco Bay, the city’s waterfront features working harbors, marinas, and scenic parks like the Eastern Promenade. In the fall, the vibrant foliage adds to the town’s allure, making outdoor exploration a must.
See the scenery
“Visiting Portland in the fall is many people’s highlight of the year,” states Nick Robinson of Portland Schooner Co. “For a nature experience in town, try the walking trails at the Evergreen Cemetery where you can catch migrating birds in the trees, turtles and other amphibians in the ponds, and an array of tree species lighting up the landscape with their vibrant colors.”
You can also get a new perspective of Portland’s scenery via a historic wooden schooner, sailing your way around Casco Bay on the Maine-built boat through the Portland Schooner Co. “Don’t forget your hat, sunglasses, and cozy layers,” reminds Robinson.
Enjoy your dining outdoors
“Autumn in Portland is my favorite time of year,” confesses Chelsea K Ray, a wardrobe consultant and blogger based in the city. “Breakfast right on Casco Bay at the Porthole is a must. Walk off your lobster Benedict with a stroll along the East End Trail, and don’t forget to dip your toes in the ocean at East End Beach.”
Ray recommends doing some shopping at Mexicali Blues and Ports of Call on Commercial Street before enjoying fresh seafood at DiMillos, a floating restaurant that features beautiful waterfront views. “Wrap your day up with a cocktail at the Commercial Street Pub,” encourages Kay, noting that the pub is a true local’s spot where you can share your day’s adventures with other patrons.
6. Celebrate the season with Harvest on the Harbor
Since its inception in 2007, Harvest on the Harbor has celebrated Portland’s outstanding culinary scene, showcasing the talents of local chefs, brewers, distillers, and food artisans. “This is the 16th year for Harvest on the Harbor, which draws attendees from around the world to savor the deliciousness of Maine,” shares the Harvest on the Harbor team.
Portland has earned the reputation as “The Foodiest Small Town in America,” and the festival nods to this title by highlighting Maine’s rich food and beverage culture.
“Harvest on the Harbor is a celebration of Maine-made spirits, Maine lobster, Maine oysters and Maine seafood,” confirms the team. “With four events in three days there is something for everyone, including the Maine OysterFest, From The Sea and the Maine Cocktail Classic.”
Held the last weekend of October, Harvest on the Harbor offers a fun fall outing and a tasty celebration of Maine’s local flavors and traditions.
7. Indulge in Portland’s fall flavors and festivities
Portland celebrates fall with festivals, outdoor markets, food, and events like the Portland Farmers’ Market, which overflows with fresh produce, baked goods, and seasonal flowers.
Local eats and treats
“Portland is simply vibrant in autumn,” affirms Jamie, author of the blog Travel Addict. “Whether you are tasting local beers at the Portland Beer Hub, hiking on Peaks Island, or tasting the freshest of seafood along the waterfront, it’s the perfect fall destination with something for everyone. The cuisine is top notch – with incredibly fresh seafood at Scales and exquisite flavors at Duck Fat.”
Seasonal favorites like cider donuts, craft pumpkin ales, and hearty farm-to-table dishes become staples at eateries across the city, making a food tour a perfect fall thing to do in Portland.
“Maine Day Ventures keeps you moving and learning while you eat and shop,” suggests Kristin of Dean’s Sweets. “The guide gives an insider’s behind-the-scenes taste of the most popular spots in the city. The tour includes generous portions of some Maine specialties, including lobster, blueberries, craft beer, and the always-loved Maine potato, along with some up-and-coming foodie trends.”
Fall activities
Other fun fall activities come recommended from the Harvest on the Harbor team, including visiting corn mazes, hiking, trying award-winning restaurants, shopping and gallery hopping.
“Every Friday, the City of Portland hosts a First Friday Art Walk with gallery openings,” says Harvest on the Harbor. “Performing arts opportunities include the Portland Symphony Orchestra, celebrating its 100th season with performances at a few area breweries and a pay-what-you-can Chamber Series.”
8. See the city by sea
Experience Portland by sea for stunning views of Casco Bay, its islands, and iconic lighthouses like Portland Head Light. Fall tours provide a quieter, more intimate experience, with crisp air and warm autumn sunlight reflecting off the water.
“If you’re looking to enjoy Maine’s autumn spectacle, Casco Bay Custom Charters offers cozy flannel-wrapped adventures aboard vintage vessels,” shares Dyland Suhr from Maine Tour Company. “Enjoy breathtaking views of the colorful coastline with a bottomless mimosa brunch or a sunset dinner prepared by a private chef. This is the perfect opportunity for private groups to make unforgettable leaf-peeping memories on the water.”
Charter a boat for an intimate and private experience, or take the ferry across the bay to Peaks Island for a day of strolling amongst the neighborhood’s fall colors.
“Catch the ferry at Casco Bay Lines,” recommends Kristin from Dean’s Sweets. “The 30-minute trip across the bay is fun all on its own. Get some sun and enjoy the sparkling water and cool air along the way. If you’re lucky, you may see a bald eagle or a harbor seal.”
9. Take a day for everyone to play
“A trip with loved ones to Portland wouldn’t be complete without a visit to the Children’s Museum & Theatre of Maine, the state’s most visited museum and top destination for play located at Thompson’s Point,” says Shultzie Fay Willows, a representative for the museum.
Kids can explore hands-on exhibits like water and air activities, an outdoor playground, and an indoor climbing structure. They can also enjoy cultural displays, aquarium tours, performances at the country’s oldest children’s theater, and creative activities in MakerSpace – all included.
To round out the fall weekend in Portland, Willows is full of all-ages recommendations. “Afterward, paint some pottery next door at Color Me Mine or explore the fascinating International Cryptozoology Museum,” she shares. “For lunch, stop by Bissell Brothers, savor a grilled cheese at Sacred Profane, or enjoy hot dogs and pierogi at Leisure Time. There is something for everyone to do, try, and explore.”
10. Journey to the countryside for a true fall farm experience
A 40-minute drive from Portland, Bowdoinham comes alive in autumn with apple picking, pumpkin patches, and hot cider. This rural town along the Kennebec River is known for its vibrant farming community and fall harvest season.
If you’re looking for beautiful colors, Stonecipher Farm is an organic farm brimming with bright veggies in the autumn months. “The ‘no-till’ approach to vegetable production means a highly organized field system, resulting in an outstanding aesthetic,” claims Ian Jerolmack from the farm. “Folks have said it looks like the king’s garden.”
When you’re done exploring the farm, head back into town and sample from many other local farms at various Bowdoinham fall festivals, where vendors line up with their fresh offerings and handmade crafts.
11. Bring Fido along for the adventure
Portland is known for being an exceptionally dog-friendly city, welcoming four-legged companions in many public spaces and businesses. Numerous restaurants and breweries have outdoor patios where dogs are welcomed with water bowls and treats. The city’s pet-friendly vibe extends to shops, where many local businesses allow well-behaved dogs.
“There are many restaurants and locations that are dog-friendly throughout the city, just make sure to check their pet policy and local leash laws to ensure you and your dog have a great and safe time enjoying Maine’s fall together,” advises Portland pet photographer Gina Soule.
“Enjoying Portland in the fall alongside your four-legged best friend gives you a taste of the very best of Maine,” Soule continues. “From having your dog join you for a stroll along the Eastern Prom, exploring Higgins beach together, to enjoying an adult beverage around a fire on the patio at Maine Craft Distilling, you can’t go wrong with any of the numerous dog-friendly locations Portland has to offer.”
12. Cozy up with a good book
Fall and books are the perfect pair, whether you’re curling up in a chair by a roaring fire or sipping on tea at a local cafe with a book in hand. “Portland has a rich and robust bookish culture, with tons of amazing bookshops throughout the city,” adds Ash Holland, local owner to The Lucky Fox Bookshop.
Local favorites include Sherman’s, which opened in 1896, residing as Maine’s oldest bookstore. Another is Longfellow’s, a classic book shop with the perk of having the occasional feline guest wandering the store, available to adopt if it happens to choose you.
But if you’re after a fun and unique bookshop experience, look no further than The Lucky Fox Bookshop. A traveling and online bookstore, The Lucky Fox is an independently-run business that hosts pop-up shops at hot spots around Portland, and centers their collection around LGBTQ themes, fantasy, and works from marginalized authors. “Check out the event page to see where we’ll be setting up shop this fall and winter; or, explore the online shop to snag your next great read,” advises Holland.
As the weather gets cooler, many bookstores also host special events like author signings, book clubs, and seasonal sales, making bookshop hopping a perfect fall activity for a day in Portland.
13. Prepare to be spooked at a haunted house
A visit to a haunted house perfectly captures the fall mood, blending eerie history with spooky entertainment as the days grow shorter and colder.
While there are multiple haunted houses you can explore around Portland, nothing quite beats The Annual Haunting at the Parsonsfield Seminary. Originally built in the 1800s, its 42 rooms transform into an epic spooky mansion for the ultimate Halloween experience. You’ll be led on a tour through the building’s four floors for a suspenseful storytelling show, guaranteed to give you some scares. Tours are offered only the last two weekends of October, and the seminary changes its act every year for a truly unique time.
While the Parsonsfield Seminary is located an hour out of Portland, it’s more than worth the trip. Make a weekend of it by staying nearby with Backcountry Excursions, where owner Cliff Krolick ensures you get the full fall experience cozying up in one of his yurts or cabins nestled within the woods.
14. Travel off the beaten path on an oyster tour of Portland
“If you’re an oyster lover visiting Portland, be sure to check out the Maine Oyster Trail,” recommends Trixie Betz, an oyster expert.
The Maine Oyster Trail, of which Portland is a major hub, offers activities like farm tours, boat tours, raw bars, shuck trucks, and even kayaking adventures, where you can see oyster farming up close and taste the product directly from the source. It’s a great fall activity that combines education, fresh seafood, and Maine’s scenic coastline.
“Fall is the best time to enjoy oysters, and what better place to do that than in Maine,” shares Betz. “Not only will you enjoy delicious Maine oysters and learn about the industry, you’ll earn prizes along the way.”
The Maine Oyster Tour includes an oyster passport you can use to keep track of the places you’ve visited; the more establishments you check into, the more prizes you earn. The farm-to-table approach of the experience gives you the unique opportunity for direct interaction with Maine’s oyster farms, making the Maine Oyster Trail a perfect fall thing to do in Portland.
15. Escape the chill with local nightlife
Portland’s nightlife changes with the seasons, especially in the fall when outdoor patios stay open with heaters and fire pits. Many places also host seasonal events, from Halloween-themed parties to fall harvest festivals that go into the night. Rising Tide Brewing Company and Oxbow Blending & Bottling have both indoor and outdoor spaces, and you can often find live music or food trucks.
For local music and laid-back vibes, check out the Flask Lounge for nightly live music, dancing, and up-and-coming DJs and bands. “Nestled in the heart of Portland, Flask Lounge is your favorite down-to-earth neighborhood bar,” affirms Flask Lounge owner Jessica Nolette. “Known for its unassuming charm and the city’s most affordable drinks, it truly feels like home.”
If dancing isn’t your thing, cozy up inside an intimate cocktail bar instead. The Portland Hunt + Alpine Club will serve you creative drinks in a sleek, Scandinavian-inspired space. For a warm and vintage vibe, Blyth & Burrows features a speakeasy-style experience, with handcrafted cocktails celebrating the maritime history of Portland.
Whether you’re in the mood for craft beers, live music, dancing the night away, or a more elegant evening, exploring the nightlife in Portland fall will leave you feeling warmer than you started.
Discovering fall things to do in Portland, Maine
There’s truly something special about fall in Portland, Maine. From festive farmers’ markets to cozy cafes and autumnal events, there’s something for everyone to enjoy. Whether you’re a lifelong resident or a first-time visitor, there are a plethora of fall things to do in Portland just waiting to be discovered. So bundle up, head out into the brisk air, and immerse yourself in all the fall fun this enchanting New England city has to offer.
As a real estate investor who has bought and sold numerous properties over the years, one of the most common questions I encounter is whether it’s better to sell a property vacant or with tenants in place. The answer isn’t always straightforward and depends on various factors, including property type, market conditions, and target buyers. Let’s break down the pros and cons for different property types.
Table of Contents
Video: Is it Better to Sell Houses or Investment Properties Vacant or With Tenants?
Single-Family Homes
Generally, single-family homes will sell for more money when vacant. Here’s why:
Owner-occupants typically pay more than investors because they’re buying a home, not just an investment
Owner-occupants make up the largest buyer pool for single-family homes
Properties can be properly prepared and staged when vacant
Repairs and updates are easier to complete without tenants
For example, I recently sold a single-family flip that could have rented for $2,000 monthly ($24,000 annually). Using a gross rent multiplier of 8%, an investor might have valued it around $300,000. However, we sold it vacant to an owner-occupant for over $400,000.
Exception: Low-Value Markets
In markets with very low property values but decent rental rates, it might make more sense to sell with tenants. This is common with turnkey rental operations, where properties are sold to out-of-state investors with tenants and property management already in place.
Multi-Family Properties
Duplexes
For duplexes, having at least one unit rented often makes sense because:
It appeals to house hackers who want to live in one unit and rent the other
Rental income helps buyers qualify for financing
Shows proven rental income potential
However, ensure units are rented at market rate. Below-market rents can actually decrease property value.
Larger Multi-Family (5+ Units)
For properties with five or more units:
Almost always better to sell fully occupied
Aim for market-rate rents
Maintain good payment history from tenants
Keep detailed income and expense records
Properties are valued based on income approach
Owner-occupant financing isn’t available, so investor buyers dominate
Commercial Properties
Small Commercial
Small commercial properties can go either way:
Vacant might appeal to owner-occupant businesses
Could potentially get higher prices from owner-users than investors
Market conditions and timing play crucial roles
Large Multi-Tenant Commercial
For larger commercial properties with multiple units:
Generally better sold with tenants in place
Investors typically prefer stabilized income
Having a few vacant units is okay for showing upside potential
Detailed rent rolls and financial statements are crucial
Single-Tenant Large Commercial
These can be challenging:
Harder to sell vacant due to specialized uses
Consider splitting into smaller units if vacant
Triple net leases with strong tenants add significant value
Property value closely tied to tenant quality and lease terms
Special Considerations
Mixed-Use Properties
For mixed-use properties:
Usually better occupied, especially if tenants are strong
Consider separating business operations from real estate
Can sometimes work with partial vacancy
Value based on both current income and potential use
College Rentals
Timing is crucial:
Best to sell either fully rented during school year
Or vacant right before rental season
Avoid having vacancy during off-peak rental periods
Conclusion
While each property is unique, here are the general rules of thumb:
Single-family homes: Usually better vacant
Multi-family: Usually better occupied
Commercial: Depends on size and type
Always consider market conditions and timing
Ensure rents are at market rate if selling occupied
Maintain good financial records for occupied properties
Remember that these are guidelines, not absolute rules. Market conditions, property condition, and timing can all impact whether vacant or occupied is the better choice for your specific situation.
Friendsgiving is the perfect opportunity to gather with your chosen family and celebrate gratitude in a relaxed, fun atmosphere. Unlike a traditional Thanksgiving, Friendsgiving is a more laid-back event, filled with laughter, and often reflecting your group’s unique bond. Whether you’re hosting for the first time or looking to elevate your gathering, these tips from Rent. and the experts we interviewed will help you create a memorable and stress-free event.
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The history of Friendsgiving
Friendsgiving is a relatively new tradition, one that has quickly become a beloved part of fall for many. It’s thought to have started gaining popularity in the early 2000s, with the name “Friendsgiving” formally recognized around 2011. The holiday brings together elements of Thanksgiving but emphasizes celebrating with friends.
Often held before or after the official holiday, Friendsgiving is for those who can’t make it home or want to celebrate with their chosen family. The casual and collaborative spirit of Friendsgiving is what makes it special — there’s less pressure, more flexibility, and a stronger focus on fun.
Hosting a successful Friendsgiving
Hosting a Friendsgiving can be as simple or elaborate asyou want it to be. Whether you’re aiming for a cozy gathering with a few close friends or a big, lively event, the key is to focus on delicious food, great company, and creating an atmosphere that feels warm and welcoming.
Planning the menu
One of the defining features of Friendsgiving is the potluck-style meal. Rather than taking on the daunting task of preparing an entire Thanksgiving dinner yourself, invite your guests to contribute dishes. This not only lightens your load but also brings variety to the table. Be sure to coordinate with your friends so you don’t end up with five desserts and no sides.
As the host, you can focus on preparing the main course or signature dish. If a whole turkey feels like too much, consider roasting a turkey breast or trying a simpler option like roasted chicken or a vegetarian dish. To make things easier and ensure a stress-free event, it’s essential to prep as much as you can the day before. Dishes like stuffing, casseroles, and desserts can be made in advance, allowing you to relax and enjoy the day with your guests.
It’s also important to accommodate dietary restrictions. Check with your guests ahead of time to ensure everyone has something they can enjoy, whether it’s gluten-free, vegan, or allergy-friendly.
Lastly, don’t forget drinks — whether it’s a creative mocktail or festive cocktail for guests to sip on. “When hosting a Friendsgiving, it’s helpful to come up with a cocktail strategy that allows you to maximize having fun with your guests while not sacrificing the quality of your drinks,” Hannah Chamberlain with Spirited LA and Author of the new book, How to Be a Better Drinker, explains.
She adds, “I often like to start with a grand, festive punch, because it’s visually appealing, easy to make ahead of time, and it allows your guests to serve themselves so you’re not stuck behind the bar making drinks all evening. I also like to pre-batch a few bottles of freezer door martinis, manhattans, or negronis to easily pour for guests as the celebration goes later into the evening.”
Setting the scene
Friendsgiving decor should feel cozy and inviting rather than overly formal. There are a few different approaches to take when setting the scene for your Friendsgiving dinner. “Friendsgiving is the perfect opportunity to have fun with creating a festive tablescape. Play with themes, colors, and decor to create an ambiance that elevates the whole experience,” Stina, founder at Hello Lovely Living, shares.
Annie Linder, publisher and CEO of Mom’s First Steps, details her time and effort towards the tablescape’s visuals. “When decorating for Friendsgiving, I spend a lot of time focusing on the tablescape as it’s very visible throughout the gathering and sets the tone for the overall aesthetic. I always look for earthy, autumn-inspired colors that bring warmth to the table — think deep browns, warm reds, burnt orange, and gold accents. Layering textures such as woven placemats and linen napkins tied with twine add depth and dimension. Candles placed throughout the tablescape add the perfect warmth and glow. “
Beyond looking and feeling festive, it’s equally important to consider the mood and energy your tablescape can set for the evening. “As the founder of Von Gern Home, a luxury brand of table and home decor, I believe that the table is an outlet for our creativity and personality to shine,” Kira Fiaman shares.
Additionally, “My one key piece of advice is to make sure you know what you would like the energy of your tablescape to be and to stick to it. Start by selecting a placemat as the foundation of your festive table, as it sets the mood and serves as the starting point for crafting the entire experience.
Never set a table last minute. I love being creative with my tables and it’s one of the few things you can do for a dinner party well ahead of time. You’ll have the flexibility to get yourself ready and get whatever you are serving ready before the guests arrive. Finally, I would never set a table without some sort of candle on it. Whether it’s pillars, votives, or tapers, candlelight always makes for a far more special gathering.”
Bringing people together
Friendsgiving is more than just a meal; it’s about shared experiences and connection over perfection. “Use place cards to strategically seat your guests at the table next to someone they will enjoy talking with,” Lani Schreibstein, product and digital marketing manager of TableTopics® explains.
“Select a TableTopics® question card (or a few) that you think fits each guest best. Include each guest’s question card(s) as a part of their place setting to help spark fun conversations among your guests. To encourage a group conversation, open a set of TableTopics® and start the conversation off by pulling a random card, reading the question out loud, and answering it yourself. Others at the table will naturally join in by giving their answer or commenting on yours. We recommend TableTopics® Gratitude, Dinner Party, or Best Things Ever for a Friendsgiving full of stories and laughter.”
As the meal winds down, keep the energy flowing with a fun activity. “While of course, the meal will be the main event, you can level up your Friendsgiving with a fun and festive activity for your guests,” suggests Julie Stallman with Triangle Senior Year. “Create an instant photo booth with a Friendsgiving photo frame. Guests can pose and snap pictures as they arrive and mingle before the meal. Or, play Friendsgiving Bingo: did anyone wear stretchy pants on purpose? Bring a charcuterie board or get the hiccups?”
Another idea is to incorporate a moment of gratitude, which can even be incorporated into your tablescape ahead of time. “A customized tablescape goes a long way. I love using place settings as a way to highlight the things I’m most grateful for in each of my guests,” Aubry Lybbert, blogger at Finding Beautiful Truth, details. “Think personalized notes giving thanks for traits, attributes, or qualities you really admire. This ‘Thankful’ note acts as both a seat marker and an extremely thoughtful take-home gift.”
Being the hostess with the most-ess
The beauty of Friendsgiving lies in its casual, come-as-you-are vibe, but telling yourself to maintain low stress levels is easier said than done. Being a flawless hostess is made easier with tips and tricks from those who have perfected the art.
“I like to think of hosting as six jobs: the initiator, the organizer, the person in charge of food and beverage, the cleanup crew, the decorator, and finally, the day-of host, details. “I point this out because you don’t have to do all of these alone. That is a lot!
Instead, ask friends to take on different roles. If you’re hosting at your house, maybe someone else manages the food. If you’re doing it all, maybe let the decorating go. The point of Friendsgiving is to enjoy an evening with friends, so let that be your priority instead of overextending yourself trying to do the work of six people.”
– Alex Alexander, lifestyle blogger and founder of the Friendship IRL podcast
“Hosting a Friendsgiving can be the most fun extracurricular activity you ever signed up for – or the most stressful thing you’ve ever come across. I prefer the former, and try to channel my late mother, a legendary hostess herself, who always said to ‘be your own best guest’. “
Invite people you want to see and spend time with, maybe even ones that you don’t know that well but are interested in getting to know better.
Prep, prep, prep. The more you prep, the more relaxed you are.
Don’t be afraid to ask for help during the dinner! Your guests will offer, so take them up on it! They can’t cook for you, but they can light candles, help with drinks, etc.
Invest some time to create a seating chart. Yes, they might feel a little stiff and outdated, but this assures you will be seated next to the person you actually want to talk to, plus you can make sure couples don’t cling to each other, never a good omen for a fun night.
Last but not least, try to be ready 30 minutes before guests arrive. That leaves you time to have a drink, enjoy the beautiful scene you’ve set, and get in the mood to chat, laugh, and generally have a good time.
– Sophie von Oertzen, Designer and Founder of Sophie Williamson Design
“The food is the least important part; the most important thing is that your guests feel welcome. This is tied to that old saying: “People won’t remember what you said, but they will remember how you made them feel.” So welcome everyone, make them feel the gift of their presence, and facilitate the conversation.
People enjoy being in the homes of others in part because it’s a chance to get to know their host better. This is a chance to let your personality shine! To serve the meal on that china your mother-in-law foisted upon you despite all the times you said no (and tell the story), rope your guests into playing the game your family played as a child, or ask all your friends to share the most awkward thing a family member has said at a past Thanksgiving.”
– Emily Walker, Founder of The Next Dinner Party and Next Dinner Party Designs
Eat, drink, and be thankful
Friendsgiving is a time to celebrate friendship, gratitude, and the joy of gathering with people you care about. By keeping things simple, embracing the spirit of togetherness, and adding a few personal touches, you can create an unforgettable event. Remember, the best part of Friendsgiving isn’t the food, the wine, or the decor — it’s the laughter, stories, and memories shared around the table. Happy Friendsgiving!
From lively cities like Indianapolis and charming college towns like Bloomington to the quiet rural landscapes of southern Indiana, the state offers a diverse range of living experiences. But as with any state, Indiana has its own unique set of pros and cons. Let’s take a closer look at what the Hoosier State has instore.
Is Indiana a good place to live?
If you’re considering moving to Indiana you’ll happily find affordable living, and access to major industries, particularly in manufacturing, agriculture, and healthcare. These factors alone make Indiana a good place to live. The state is also known for its friendly communities, and an emerging tech scene in cities like Indianapolis. However, some cons of living in the state include freezing weather, limited public transportation options in many areas.
Indiana state overview
Population
6,785,528
Biggest cities in Indiana
Indianapolis, Fort Wayne, Evansville
Average rent in Indianapolis
$1,253
Average rent in Fort Wayne
$1,139
Average rent in Evansville
$847
1. Pro: Renting is affordable
One of Indiana’s greatest advantages is its affordability. The cost of living is consistently lower than the national average, with affordable housing options in both urban and rural areas. Cities like Fort Wayne and Evansville offer lower rents compared to larger metropolitan areas. For instance, in Fort Wayne, the average rent for a one-bedroom apartment is around $1,139 per month, while Evansville sees averages closer to $850. This affordability extends to suburban and rural areas as well, where rental prices can drop to as low as $700 to $800 per month, further enhancing Indiana’s appeal as an affordable place to live.
2. Con: Limited public transportation outside larger cities
Outside of larger cities like Indianapolis, public transportation options in Indiana are limited, which can make commuting more difficult. Most residents rely on cars to get around, and rural areas often lack any form of reliable public transport. Those living in rural communities may find themselves facing long distances to reach essential services, schools, and employment opportunities.
3. Pro: Thriving sports culture
Indiana takes its sports seriously. From the iconic Indianapolis 500 to the fervor around Indiana University’s basketball team, sports play a major role in the state’s culture. The Indianapolis Colts (NFL) and Indiana Pacers (NBA) have strong fan bases, while high school basketball is a way of life in many small towns.
Insider scoop: If you want to experience Hoosier Hysteria firsthand, catch a high school basketball game in a small town – you’ll see why basketball is so important here.
4. Con: Freezing winters
Indiana’s weather can be tough to handle, especially during the winter months. Northern Indiana, near Lake Michigan, experiences lake-effect snow, which can result in heavy snowfalls averaging around 40 inches annually. The rest of the state isn’t spared either, with average winter temperatures ranging from 20°F to 35°F. Cold temperatures, icy roads, and wind chills often make winter travel difficult, with wind chills occasionally dropping below zero.
Insider scoop: To cope with the winter conditions, many locals recommend investing in a good set of winter tires and keeping an emergency kit in your vehicle.
5. Pro: Central location
Indiana’s central location makes it an ideal hub for both business and leisure travel. Situated within a day’s drive of several major metropolitan areas, including Chicago, Detroit, and Cincinnati, residents can easily access urban amenities, cultural experiences, and job opportunities in neighboring states. For example, Indianapolis, the state capital, is about a three-hour drive to Chicago, making it easy for residents to enjoy the Windy City’s shopping, dining, and entertainment while returning home the same day.
6. Con: Flat landscapes
Indiana’s topography is characterized by its flat landscape, which can sometimes lack the natural beauty found in more mountainous or varied regions. While the flatness of the state facilitates agricultural productivity—Indiana is known for its corn and soybean fields—it can also contribute to a sense of monotony for residents. The absence of significant elevation can limit outdoor recreational opportunities like hiking and mountain biking, as the state has fewer elevated trails or panoramic vistas.
Insider scoop: The Brown County State Park features some of the best trails in the state, perfect for hiking, biking, and enjoying nature away from the flat terrain that characterizes much of Indiana.
7. Pro: Low traffic and commute times
Indiana is known for its relatively low traffic congestion and manageable commute times, particularly when compared to larger metropolitan areas in states like California or New York. In cities like Indianapolis, the average commute is around 25 minutes, which is significantly lower than many national averages.
8. Con: Tornado risks
While Indiana enjoys a diverse climate, it is also part of the region known as “Tornado Alley.” This classification means that the state is susceptible to severe weather, particularly during the spring and early summer months when conditions are perfect for tornado formation. Communities across Indiana have experienced tornadoes, with some causing significant damage to homes, businesses, and infrastructure.
9. Pro: Beautiful state parks
Indiana is home to a variety of stunning state parks that showcase the state’s natural beauty and provide ample opportunities for outdoor recreation. You’ll find unique ecosystems in Indiana, like the Dunes National Park along Lake Michigan, perfect for hiking and wildlife watching. Additionally, Brown County State Park, often referred to as the “Little Smokies,” features over 15 miles of trails winding through dense forests, making it a popular destination for both novice and experienced hikers.
10. Con: Humidity in the summer
Indiana summers can be characterized by high humidity levels, which can create discomfort for residents, especially during the peak months of July and August. The combination of heat and humidity can make outdoor activities less enjoyable, as temperatures often soar into the high 80s and 90s, with humidity levels exceeding 70%. This sticky weather can lead to a feeling of heaviness in the air, making it challenging for individuals to engage in physical activities or simply enjoy time outside.
Insider scoop: To beat the summer humidity, locals often recommend spending a day at the various lakes around the state, such as Lake Monroe or Geist Reservoir.
Pros and cons of living in Indiana: Overview
Pros
Cons
Renting is affordable
Limited public transportation outside larger cities
Thriving sports culture
Freezing winters
Central location
Flat landscapes
Low traffic and commute times
Tornado risks
Beautiful state parks
Humidity in the summer
Ana is a Marketing Specialist who loves to write about home improvement and local insights. Living in the Greater Seattle area, she enjoys traveling and spending time outdoors.
A debt instrument is a contract that enables one party to loan funds to another party, who promises to repay the loan plus interest. Debt instruments are also referred to as fixed income assets because the lender receives a fixed amount of interest during the lifetime of the instrument.
Debt instruments come in many forms. Some are obvious, such as mortgages and different types of small business loans; while others are less so, such as rental leases, bonds, and treasuries. With some debt instruments, you are the borrower, such as when you take out a mortgage or open a credit card. In other cases, you are the lender, such as when you purchase a bond or treasury.
Here’s what you need to know about debt instruments, the different types of debt instruments, how these instruments work, and the pros and cons of debt financing.
Key Points
• Debt instruments are financial assets that represent a loan made by an investor to a borrower, typically involving fixed payments over time.
• Common types of debt instruments include mortgages, small business loans, bonds, U.S. treasuries, and leases.
• Debt instruments come with a defined maturity date when the principal amount must be repaid.
• All debt securities are debt instruments, but not all debt instruments are securities.
What Is a Debt Instrument?
A debt instrument is a fixed income asset that legally binds a debtor to pay back any amount borrowed plus interest. Debt instruments can be issued by individuals, businesses, local and state governments, and the U.S. government.
Businesses often use debt instruments to raise capital to purchase additional assets (such as manufacturing equipment) or to raise working capital, while local governments may do so to fund the building of infrastructure (such as a new highway or a bridge). Debt instruments also give participants the option to transfer the ownership of debt obligation (or instrument) from one party to another.
Debt instruments can be short-term (repaid within a year) or long-term (paid over a year or more). Credit cards and treasury notes are examples of short-term debt instruments, while long-term business loans and mortgages fall into the category of long-term debt instruments.
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Debt Instruments vs Debt Securities
Debt instruments are broad financial tools representing a loan made by a lender to a borrower, including mortgages, business loans, and leases. They may or may not be tradable.
In contrast, debt securities are a specific subset of debt instruments that are tradable on financial markets, such as government and corporate bonds. Debt securities provide liquidity, allowing investors to buy or sell them before maturity.
The key difference is that all debt securities are debt instruments, but not all debt instruments are tradable securities, emphasizing market accessibility and liquidity for debt securities.
How Do Debt Instruments Work?
If you’ve ever taken out a loan or opened a credit card, you probably already understand the basics of how debt instruments work. Debt instrument contracts include detailed provisions on the deal, including collateral involved, the rate of interest, the schedule for interest payments, and the term of the loan (or timeframe to maturity).
While any type of vehicle classified as debt can be considered a debt instrument, the term is most often applied to debt capital raised by institutions, such as companies and governments. In this scenario, the investor is the lender: You issue money to a business, municipality, or the U.S. government. In exchange for capital, you are paid back the amount you loaned over time with interest. Examples of this type of debt instrument include U.S. treasuries, municipal bonds, and corporate bonds.
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Types of Debt Instruments
Below is a breakdown of some of the most common debt instruments used by individuals, governments, and companies to raise capital.
US Treasuries
U.S. Treasury Securities (also called treasuries) are government debt instruments issued by the U.S. Department of the Treasury to finance government spending as an alternative to taxation. Treasury securities are backed by the full faith and credit of the U.S., meaning that the government promises to raise money by any legally available means to repay them.
U.S. treasuries tend to be more affordable than many other debt instruments. Investors can buy them in increments of $100 either through brokerage firms, banks, or the U.S. Treasury website. There are three types of treasuries: treasury bills, treasury notes, and treasury bonds. Each treasury comes with its own maturity option.
Municipal Bonds
Municipal bonds are offered by various U.S. government agencies (towns, cities, counties, or states) to fund current and future expenditures. Programs often funded by municipal bonds include the building of schools, roads, and bridges. Think of a municipal bond as a loan an investor makes to a local government.
There are two types of municipal bonds: general obligation bonds and revenue bonds. General obligation bonds are not paid back by any revenue resulting from the completion of the project. Instead, they are paid back to investors through property taxes or overall general funds.
Revenue bonds are paid back by the issuer through either sales, taxes, or some other type of revenue generated by the project.
Municipal bonds are attractive to many investors because they are tax-exempt bonds — meaning the investor doesn’t have to pay taxes on any interest received.
Recommended: How to Buy Bonds: A Guide for Beginners
Corporate Bonds
A corporate bond is a debt security that a corporation can use to raise money. Funding is typically available to anyone who is interested. As with other bonds, corporate bonds are essentially an IOU from the company to the investor. It differs from stock in that, instead of being paid dividends when the company is profitable, investors are always paid regardless of whether the company is doing well.
Typically, corporate bond investors are paid interest until the bond matures. When it matures, the entire principal is paid back. For example, a $1,000 corporate bond with an interest rate (or coupon rate) of 5% would bring an investor $50 every year until the bond matures. This means that, after 10 years, the investor would see a gross return of $500.
With secured bonds, the company puts up collateral (such as property or equipment) as security for the bond. If the company defaults, secured bond holders can foreclose on the collateral to reclaim their money. With an unsecured bond, a holder may or may not be able to fully reclaim their investment.
Alternative Structured Debt Security Products
There are many types of structured debt security products on the market, many of which are issued by financial institutions. A common occurrence is for these institutions to bundle assets together as a single debt security product. By doing this, they are able to raise capital for the financial institution while also segregating the bundled assets.
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Leases
A residential or commercial lease is a legally binding contract between an owner of a property and a tenant, where the tenant agrees to pay money for a set period of time in exchange for use of the rented property. A lease is a type of debt instrument because it secures a regular payment from the tenant, thus creating a secured long-term debt.
Mortgages
Mortgages are a type of debt instrument used to purchase a home, commercial property, or vacant land. The loan is secured by the property being purchased, which the lender can seize if the borrower defaults on the loan.
As with many other consumer loan products, mortgages are amortized, meaning the borrower makes a series of equal monthly payments that provides the lender with an interest payment (based on the unpaid principal balance as of the beginning of the month) and a principal payment that will cause the unpaid principal balance to decrease each month so that the principal balance will be zero at the time of the final payment.
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Pros and Cons of Debt Instruments
Understanding the pros and cons of debt instruments helps borrowers make informed decisions about their financing options.
Pros
Debt instruments can be mutually beneficial in that both parties become better off as a result. If a company takes out a small business loan and invests those funds wisely, for example, it can increase its profitability. Ideally, the increase in profits exceeds the cost of the loan, a concept known as leveraging in business. Borrowing money also allows a company to raise capital without losing equity.
Debt instruments also benefit individuals and governments. Without mortgage debt, many people would never be able to buy a house; without student loans, many individuals would not be able to go to college. For governments, debt instruments allow them to build infrastructure for the public good.
On the lender’s or investor’s side, debt instruments can provide a regular and guaranteed source of income and are considered a safe investment, provided the loan is secured.
Cons
But there are downsides to debt instruments, as well. Loans often come with restrictions on how they can be used and, if you don’t have good credit, interest rates can be high. Borrowing money also involves risk. Most commercial institutions will require you to put up collateral in the form of a property asset. If you lose your income or your business hits hard times and you cannot repay your loan, the lender can reclaim its debt by liquidating whatever you proposed as security, which means you can lose a valuable asset.
On the lender’s or investor’s side, debt instruments also come with risk. Unless you purchase a secured bond, you may not receive your principal back as the investor. Also, during periods of high inflation, bonds can actually have a negative rate of return. And, if you invest in corporate bonds, there is always the possibility that the issuer will default on payment.
Pros of Debt Instruments
Cons of Debt Instruments
Allows companies to expedite their growth
If a borrower has poor credit, interest rates can be high
Allows companies to raise capital without diluting equity
Loans often come with restrictions on how they can be used
Enables individuals to buy a home or pay for college
Loans often require collateral, which can be lost if debtor defaults on loan
For lenders/investors, secured debt is a safe investment
Investors can lose money if bond value declines
For lenders/investors, debt instruments provide steady income
Bond investors can lose money during periods of high inflation
The Takeaway
A debt instrument is a way for an investor to get a return on their money by loaning to either an individual, business, municipality, or the U.S. government. If you have a credit card or mortgage, or you own any bonds or treasuries in your investment portfolio, debt instruments play a role in your life.
Small business owners can also take advantage of debt instruments. You might not be able to issue corporate bonds at this stage of the game, but you may be able to access an affordable small business loan.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What are some examples of debt instruments?
Common examples of debt instruments include personal loans, business loans, mortgages, leases, bonds, treasuries, promissory notes, and debentures.
What is the difference between a debt instrument and an equity?
With a debt instrument, the investor does not own any portion of the company. With equity, the investor is buying a portion of the company.
What are the features of debt instruments?
Debt instruments have three characteristics: principal, coupon rate, and maturity. Principal refers to the amount that is borrowed. The coupon rate is the interest amount paid by the borrower to the lender. Maturity is the end date of the debt instrument. It refers to when the debt is completely paid off with interest.
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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.
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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Looking for ways to earn extra cash online? Websites like Freecash can give you many chances to make money from home. You can try surveys, watch videos, play game apps to win real money, and more to earn rewards. These sites give you fun ways to make money in your spare time. Some pay better…
Looking for ways to earn extra cash online? Websites like Freecash can give you many chances to make money from home. You can try surveys, watch videos, play game apps to win real money, and more to earn rewards.
These sites give you fun ways to make money in your spare time. Some pay better than others, so it’s smart to try a few. You might find new favorites that work well for you.
With a bit of effort, you could earn some nice extra spending money each month.
I have earned over 100 free gift cards and PayPal money by using many of the sites below, so I know they are real!
What Is Freecash?
Freecash is a website where you can earn money by doing fun activities online. It’s like getting paid to play! You can make extra cash by taking surveys, trying out new apps, and even playing games on your phone or computer.
Freecash started in 2020 (you can find my full Freecash review here). Since then, lots of people have joined and earned money. In fact, Freecash users have made over $75 million combined!
Here’s how it works:
Sign up for free
Pick an activity you like
Complete the task
Get coins as a reward
Every 1,000 coins equals $1. When you have enough coins, you can trade them for real money or gift cards. You can get paid through PayPal, choose gift cards from places like Amazon or Google Play, or even get paid in crypto (like Bitcoin).
Freecash has many ways to earn:
Welcome bonus when you join
Surveys that pay $1 for 5 to 10 minutes
Games that can pay up to $650
Download apps that pay $1 to $75
You can even make money by telling your friends about Freecash. Plus, there are contests where you can win extra cash by being a top earner.
It’s pretty quick to start making money on Freecash. On average, people earn enough for their first payout in just 17 minutes.
I have personally made $302 by playing games on my phone on Freecash in just one week. You can read about it here – How I Made $302.80 Playing Games on My Phone (In One Week).
Click here to sign up for Freecash.
Best Websites Like Freecash
Here’s a quick list of the best sites like Freecash:
Below are the best websites like Freecash to make money.
1. Swagbucks
Swagbucks is a rewards platform where you can make side cash online.
I started using Swagbucks years ago, and it’s helped me earn extra cash from home or while traveling. I’ve personally earned over 100 free gift cards through Swagbucks, so I know it’s a real app that pays you!
You can earn points called SB by doing easy tasks. These include taking surveys, watching videos, shopping for cash back, scanning receipts, and playing games. You can also get SB for shopping online or searching the web.
It’s free to join and only takes a few minutes to sign up. The points you earn can be turned into free gift cards, such as to Amazon, Target, Visa, and PayPal.
To play games on Swagbucks, just go to the “Play” tab after logging in. When I logged in, I saw over 20 games I could get paid to play, with a total reward value of $2,264.02 or 226,402 SB points.
Swagbucks won’t make you rich, but it’s an easy way to get some extra spending money. You could use it for small treats or to help pay bills. Give it a try and see how much you can earn!
If you join Swagbucks through my referral link, you can receive a $10 bonus.
Recommended reading: Swagbucks Review
2. KashKick
KashKick is a Get Paid To (GPT) site that pays you for doing simple tasks like taking surveys and playing games. It’s free to join and easy to use.
One of the best things about KashKick is the variety of games you can play. You might try Monopoly GO, Yahtzee, or Bingo Blitz. Some games can even earn you over $100 if you reach certain levels.
Example: Here’s how you can make money playing Monopoly Go on KashKick: Install the game (make sure to allow tracking on your device!) and reach Board 27 within 8 days to get $30. If you reach Board 42 in 12 days, you’ll earn an extra $40, and if you reach Board 71 in 24 days, you’ll get another $50. Altogether, you can earn $120!
Surveys are another good way to earn on KashKick. You’ll answer questions about products and services, and each survey usually takes less than 20 minutes and pays between $1 and $5.
When you’re ready to get paid, KashKick uses PayPal. You need to earn at least $10 before you can cash out.
Please click here to sign up for KashKick for free.
Recommended reading: KashKick Review
3. InboxDollars
InboxDollars is a popular site that pays you for doing fun online tasks. You can earn money by taking surveys, watching videos, and playing games.
It’s easy to use and free to join.
InboxDollars pays through PayPal cash and free gift cards to places like Amazon, Apple, Target, Dunkin’ Donuts, Lowe’s, Barnes & Noble, and Gap.
Sign up for InboxDollars here and get a free $5 bonus.
4. PrizeRebel
PrizeRebel is a great choice if you’re looking for a site like Freecash.
You can take surveys, play games, watch videos, and shop to earn points. Some of the games on PrizeRebel include Bingo Blitz, Solitaire Grand Harvest, Age of Apes, Kingdom Guard, Yahtzee, Woody Sort, Viking Rise, and others.
These points can be turned into cash (PayPal money) or free gift cards.
Like Freecash, PrizeRebel also has a referral program so you can earn extra by inviting friends to join.
You can sign up for PrizeRebel here.
5. MyPoints
MyPoints is a popular rewards site that lets you earn money in different ways, just like Freecash. You can take surveys, play games, and shop online to get points.
To get paid to play games on MyPoints, log in to your dashboard and go to the “Games” tab. There, you’ll find games like Bejeweled, Bingo, Catch 21, Puzzle Match, Wheel of Fortune, and more.
You can sign up for MyPoints by clicking here.
6. Survey Junkie
Survey Junkie is a popular website where you can make money by taking online surveys. They don’t have games to play like Freecash, but they have a lot of surveys that you can answer in your free time.
It’s easy to use and free to join. You can earn points for each survey you complete.
The surveys on Survey Junkie cover many topics. You might answer questions about products, brands, or your daily habits. Most surveys take between 5 and 20 minutes to finish.
You can sign up for Survey Junkie here.
7. Branded Surveys
Branded Surveys is an easy way to make some extra cash in your free time by answering surveys.
Each survey can pay you between $0.50 and $5. The amount you get depends on how long the survey takes, and most surveys only take 5 to 20 minutes to finish.
You can also earn points by inviting friends and answering a quick daily poll. If you’re really active, you might even win bonus points on their leaderboard.
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You can sign up for Branded Surveys here.
8. Scrambly
Scrambly is a popular GPT site where you can earn money by doing simple tasks online. It’s a lot like Freecash and other reward sites.
On Scrambly, you can make money by taking surveys, playing games, and trying out new apps. These are quick and easy things to do in your free time.
When you finish tasks, you get points. You can trade these points for real money or gift cards. Some popular gift card options are Amazon, Walmart, and Starbucks.
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Frequently Asked Questions
Below are answers to common questions about websites like Freecash.
What are some other websites like Freecash where I can make money?
My favorite websites and apps like Freecash are Swagbucks, KashKick, InboxDollars, PrizeRebel, and MyPoints. These sites let you earn money by doing tasks online such as by taking surveys, watching videos, playing games, and more.
What’s better than Freecash?
Swagbucks is a popular choice and I have been active on this site for years. It has many ways to earn and has paid out over $500 million. You can get cash back for shopping, take surveys, and play games. Some people like it better because it has more options to earn money.
How much money can you typically earn using sites like Freecash?
The amount of money you can make on sites like Freecash can vary, but most people make $1 to $5 per day. Some people are able to make $10 to $15 daily. It depends on how much time you spend and which tasks you do. I definitely don’t think you should expect to get rich, but you can earn some extra cash.
What are some tips for maximizing earnings on websites that pay cash for tasks?
To make the most money on sites that pay cash for tasks, I recommend doing the highest-paying tasks first and checking for daily bonuses. Also, try different types of tasks to see what pays best for you. For some people, it may be playing games, and for others, it may be answering as many surveys as possible.
How much can you earn with Freecash?
Freecash pays an average of around $15 to $30 per day (it depends on the day). Your earnings can be higher or lower. It depends on the tasks you do and how much time you spend. Some users make more by doing lots of tasks every day.
Which is better, Freecash or Swagbucks?
Both Freecash and Swagbucks have pros and cons. Swagbucks has more ways to earn and has a longer history. Freecash might have better payouts for some tasks like playing games. Try both to see which you like better, or you can simply just use both at the same time. For me, I really like both Freecash and Swagbucks.
Websites Like Freecash – Summary
I hope you enjoyed my article where you learned about other websites like Freecash.
If you’re looking for easy ways to make extra money online, websites like Freecash have many options. You can earn money by doing surveys, playing games, watching videos, and trying out apps.
These sites won’t make you rich, but with some effort, you can earn a little extra money each month.
I have personally earned over 100 free gift cards as well as PayPal cash by using many of the sites listed in this article. They are all real.
Here’s a quick summary of my top websites like Freecash:
Well, it looks like we’re here in another US election year already.
As Advanced Mustachians, we already know that the ongoing battle of Harris vs. Trump should not be consuming much of our time. Sure, we do our research and cast our votes but after that we move right on to focus on other things within our own circle of control.
But out of all the things the politicians like to bicker about, there’s one area where MMM does need to set the record straight, and that area is of course money. Your money, the economy in general, and the overall wealth of the nation.
Politicians are already not known for being the sharpest tools in the shed when it comes to technical stuff like science, technology, or economics. But this year the discourse has become particularly dumb, as our candidates try to manipulate undecided voters in swing states with ideas that are based on irrational emotions rather than sound economic sense.
For one particularly funny example, you may have noticed that the competing party (Trump in this case) is attacking the incumbents (Biden/Harris) over the “bad economy.” When in fact the US economy is stronger than it has ever been, with the lowest unemployment we’ve ever seen as well.
It’s hard to imagine a better situation than we have right now, and in fact the recent bout of higher inflation is a sign that things have been going too well, and we needed to step on the brakes with the help of higher interest rates.
But somehow the people still seem to believe that we have a “bad” economy. Take a look at this Gallup poll showing that while most people (85%) are doing really well right now, they assume that it’s just their own good fortune – only 17% believe the economy is doing well.
This is mathematically impossible, because if most people are doing well, that’s the definition of a good economy! And suspiciously enough, this widespread wrongness correlates quite nicely with the rise of social media misinformation.
So the politicians and the news have been doing the opposite of what they should be doing in an ideal situation (sharing accurate information). And sure, we can always just ignore their speeches and go on with our lives. But when it comes to economics, knowledge is power (and money). The more accurately we understand how things really work, the wealthier we will all become.
So with all that in mind, I hereby present you with my list of the…
Top Dumb Things Politicians Want You To Believe About The Economy
1:The President Controls the Economy
If there’s a recession, the opposition party likes to blame it on the current president. If the economy is booming, the current president likes to give himself (or possibly soon herself) credit for all of that success. But really, the US economy is way too big – and thankfully way too free – for the president to control or really even influence all that strongly.
In reality, our economy is a gigantic machine which converts labor and materials into things like iPhones, hospitals and pumpkin pies. And although we’re the biggest economy at 26% of the planet, we are still heavily influenced by that much bigger 74% of economic activity that the other 7.6 billion people on Earth are busy producing everywhere else.
When we have our inevitable little boom and bust cycles, they are mostly caused by the normal cycle of irrational exuberance (and greed) like the 2007 housing boom, followed by brief periods of extreme fear and pessimism like the 2008-2012 financial and housing crash.
The government does play a role too, by setting tax rates and other rules. But the effects of these policies are usually so delayed and unpredictable, that you can’t draw a straight line between today’s president and today’s economy. In other words, the government does its best to adjust the rudder on our giant ship, but in the short term our economy lurches around on the waves and storms of the ocean.
2:The President Controls Interest Rates
This one is especially funny to me, as our candidates feign sympathy for the hard life of middle class Americans, who now face higher borrowing costs on their credit cards and car loans and mortgages. They claim they will fight to bring the interest rates down. Trump even goes as far as bullying our Federal Reserve board members (who can only do their jobs if we allow them to function as independent experts) and suggesting that he would take over the whole department, if elected.
The real story is that while monetary policy would be a terrible tool to leave in the hands of a sitting president (see Argentina), it does function as an excellent set of gas and brake pedals for the economy if used properly. When things slow down and unemployment gets too high, a cut to the interest rates will produce a boost in everything from new jobs to stock prices. But if things get too hot, you get rapid inflation which can mess up the system.
3: Inflation has Made Life Harder for Americans (and the President Can Magically Reverse it)
This line of reasoning is even dumber than the last one. For a couple of years after the Covid era, we had rapid inflation. It was caused by a rare combination of a goods shortage caused by things like factory closures and remote work, plentiful demand from government stimulus spending and low interest rates. These factors have since ironed themselves out, and inflation is back down to an ultra-low 2.4%.
But most significantly, wages have still risen faster than inflation so we are all better off than before! Since 2019, overall prices are up 19% and our wages are up 21%. So even after all that inflation, we are still doing just fine. But the candidates are still bickering over inflation as if it’s an actual problem, and even worse promising to “bring prices back down”. And they’ve managed to convince the electorate that “higher wages and prices” is the same thing as “a bad economy”. Which is just plain wrong.
Bonus dumbness: politicians also occasionally blame “greedy corporations” for increasing prices to hoard profits. While price increases are totally acceptable in a market system (as a business owner you are free to set prices wherever you like), in reality it doesn’t usually happen because our markets are too competitive. For example, a recent deep analysis from NPR showed that no, grocery stores haven’t made any windfall profit at all off of this recent bout of Covid-fueled inflation.
4: The President Controls Housing Prices
One important thing that has changed over the past ten years is that US house prices and rents have both risen much faster than general inflation and even wages. On the positive side, interest rates have also risen which tends to make houses feel more expensive and is supposed to help bring house prices down. But it hasn’t happened yet which means we have the double whammy of higher prices and higher interest costs for mortgage borrowers.
The dumb part is that our candidates are proposing things that would make the problem even worse, like subsidies for first-time homebuyers or schemes to reduce the interest rates. When really the solution is to increase the supply of housing, which I personally think will happen if we stop putting up roadblocks for homebuilders (myself included) to build housing.
Things like faster and cheaper permits, less onerous and expensive building codes, eliminating suburban-style zoning and setback and car parking rules, and changing laws so that NIMBYs no longer get any say over what other people do with their own land could all help reduce the cost of building a house by about 50%, quickly and permanently.
5: The President Controls Gas Prices, and They Are Currently “High” and We Want Them Lower
Ahh, gasoline! The most ridiculous of things to worry about and the fuel for many of MMM’s rants since 2011.
First of all, on an inflation-adjusted basis, gasoline is still about the same price as it was in 1950: in the $3-4 range per gallon, in today’s dollars.
Secondly, it is so cheap that even with our huge inefficient American vehicles, the average household is still only spending 2.5% of their disposable income on the stuff! (The funny part is that they spend many times more on the rest of the car ownership experience while thinking gas is the part that is expensive)
Third, gasoline has been obsolete for almost a decade now. You can get a used electric car for less than the price of a comparable used gas car, or if you’re a fancypants money waster like me, new EVs are also cheaper than their gas counterparts. You get a faster, nicer car that almost never needs maintenance OR gasoline, and save money.
So why are we even still talking about this antique fuel of a previous era? Why aren’t the candidates also arguing over the price of Kodak film or typewriters or fax machines?
6: The Economy is Something We Should Even Worry About
The funniest part about all this economic talk is that we’re focusing on the wrong thing. While hard work and business and advancing the frontiers of human knowledge are all fun things, the reality is that we passed the point of having “Enough” decades ago. When the American middle class complains about how hard we have it these days, it’s like a bunch of overfed people at a buffet wishing they could just have one more flavor of donuts stacked onto the table.
Yes, we have income and wealth inequality so that the rich tend to get richer more quickly. And yes, we should keep that in check with a somewhat progressive tax system because a more equal society tends to be a more peaceful and happy one.
But have you noticed that as the rich people get richer, they don’t get any happier? It’s because after you pass the point of “Enough”, adding more money doesn’t really help much.
And “Enough” is much more defined by your mindset (and your collection of life skills) than your paycheck. So if the politicians really cared about improving our happiness and wellbeing, they’d be preaching the Principles of Mustachianism rather than pandering to the specific requests of coal miners or billionaires.
But alas, winning an election is a very different thing than proposing stuff that is actually best for the country. And for that reason, we cast our votes for the best party and then tune back out until the next election.
Happy voting!
In the Comments: Has the election season been getting you down, pumping you up, or just giving you a thorough dose of “Meh”?
Further Reading/Watching:
While researching economic stats for this article, I came across a quirky but informative series of videos called USA Facts by none other than Microsoft co-founder Steve Ballmer. It seems that he had the same frustration as me: Americans are fighting over a bunch of opinions and misinformation without even bothering to look up the actual facts. So he made a well-produced series of videos that just share the facts without the baggage of political hype on top of them. I wish our politicians could do the same thing!
Bonus Podcast based on this article! Thanks to the magic of AI, you can direct the wizardry within Google to generate a custom-made podcast on almost anything on the Internet. A reader just emailed me this take on this episode – remarkably human-like and even entertaining! https://notebooklm.google.com/notebook/0e1d0af8-8888-466c-abe4-8b1da8986773/audio
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how presidential policies on tariffs, immigration, and prices can impact your everyday expenses like groceries and gas.
What can a president actually do to lower prices and fight inflation? Can campaign promises really impact your wallet, or are they just political hot air? Hosts Sean Pyles and Anna Helhoski discuss presidential policies and how they affect everything from the cost of gas to your grocery bill to help you understand the real impact of political decisions on your finances. They begin with a discussion of inflation, with tips and tricks on understanding how inflation is measured, what drives price hikes, and what role the president plays in influencing it.
Then, Anna talks to Derek Stimel, an associate professor of teaching economics at UC Davis, about the economic implications of tariffs and immigration policies. They discuss how tariffs raise the price of imported goods, how immigration impacts labor costs and wages, and what these political policies mean for your everyday purchases.
Check out this episode on your favorite podcast platform, including:
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
What’s the first thing you do when you go to the grocery store? Do you run to the produce aisle and look for the freshest broccoli, maybe? Or conversely, are you heading for the candy section? I don’t judge. But pretty soon after that, you’re probably starting to look at prices, right? The price of, well, everything is a daily question in our lives. So it’s not surprising that prices are playing a part in this year’s presidential election.
Derek Stimel:
I just find it interesting that both presidential candidates have focused on these highly volatile markets, which we often think they really can’t do that much about, and that are often driven by these global forces basically. But both of them have focused on those as their avenues to bringing inflation down.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Anna Helhoski:
And I’m Anna Helhoski.
Sean Pyles:
And this is episode two of our Nerdy deep dive into presidential policy and personal finances. Hey Anna, I don’t know if you’ve noticed, but we’ve got a presidential campaign underway.
Anna Helhoski:
Hard to miss it. Talk about drama. And every great drama has a storyline. One big part of this year’s storyline in the campaign has been prices, specifically inflation and what it’s done to our bottom lines.
Sean Pyles:
Yeah. Inflation hit a high of 9.1% back in 2022, and we’ve been paying a whole lot more for a lot of things over the last few years. And it’s not subtle, it’s very noticeable. Anna, is there anything specific that has popped up on your radar as more expensive than just a couple of years ago? Something where you said whoa, that is way more than I used to pay.
Anna Helhoski:
Yeah. So I have a bread place near me and a few years ago the prices were pretty reasonable for a big loaf of fresh bread, like $6 a loaf.
Sean Pyles:
Yeah, that’s like New York reasonable, I’ll say.
Anna Helhoski:
Yeah, exactly. No, that’s how I gauge everything. But then flour prices spiked and suddenly the price went up to nearly $10, which is way more than I’m willing to pay. What about you, Sean? Did gecko food get more expensive along with anything else?
Sean Pyles:
Since you mentioned it, crickets for my gecko Ozzy did go up about 12%. I now spend a whopping $2.25 a week for those creepy bugs for the old guy. Of course, it’s not just these one-off items, these are just the things that the two of us noticed in spades. Houses are more expensive, cars are more expensive, credit cards are more expensive. It just takes more out of your budget to buy stuff.
Anna Helhoski:
So what can a president do about it? As we heard in last week’s episode, the answer is not a lot by themselves. They often need Congress or the Fed or both, and sometimes a lot of luck to have an impact on the economy and specifically on prices. But that doesn’t stop them from making all kinds of promises about the changes they’d make if we sent them to or back to the White House. Let’s talk about what they can do in reality.
Sean Pyles:
And as we noted in the last episode, we’re not here to take sides or fan the flames of an already contentious political season. Our goal here is the same one we always have at NerdWallet, to help you, our listeners, make smart informed decisions about the stuff that impacts your finances. Sometimes that means choosing a new high-yield savings account. Other times that means voting for the candidate who you believe will help you achieve your life and financial goals.
All right, well, we want to hear what you think too, listeners. To share your thoughts around the election and your personal finances, leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-N-E-R-D. Or email a voice memo to [email protected]. So Anna, who are we hearing from today?
Anna Helhoski:
We’re talking with Derek Stimel. He’s an associate professor of teaching economics at the University of California, Davis. So not only is he an expert in macroeconomics, but he’s an expert in teaching it. He’ll help us parse what presidents can and can’t do to affect the price of all sorts of goods that we all buy. Derek Stimel, welcome to the show.
Derek Stimel:
Thanks for having me.
Anna Helhoski:
Presidential administrations tend to take the credit or get the blame for things that happen, at least when it comes to public perception. That means that the Biden-Harris administration has taken a lot of flak from the Republican Party and from many Americans for elevated prices that we’re seeing in the wake of the pandemic. And since we are just a few months away from a new administration, can you talk a little bit about how much influence presidents actually have on inflation and prices?
Derek Stimel:
Normally we don’t think of them as the major driver of inflation in the economy. Usually, it’s things like monetary policy, so interest rates, and the supply of money. Sometimes it can also be things outside of the economy, shocks as we sometimes say in economics. So things that happen globally, for example. Having said that, it’s not to say that there can’t be some causes that are driven by policy of the government. For example, in the current situation, some people do point to some government spending that took place in the aftermath of COVID and the policies surrounding that. That might’ve been some fuel for inflation. But it’s not usually the first thing we think of. In this particular situation of our recent inflation, I suspect it’s not the first number one thing causing the inflation.
Anna Helhoski:
Let’s get into some of the campaign promises that each candidate has made. Some of the promises might just be politicking, but some of it could become a reality. Start off with former President Donald Trump’s proposals. Thus far, there have been multiple reports and assessments from economists who say that his proposals, if enacted, would be inflationary. And one of the main drivers of that projected inflation is Trump’s promise to levy 10% across-the-board tariffs on all foreign goods. Can you explain how tariffs and prices interact?
Derek Stimel:
Tariffs are basically a tax on imported goods. For any tax, it’s going to have the following effects on the market, which is, the tax gets levied, let’s just say it’s the 10% just to have a number. And then the businesses basically have to, in a sense, make a decision about do we absorb this tax ourselves, do we pass it on to the customers, and if so, in what proportion? They may not pass on the full 10%, it’s unlikely they’re going to absorb the full 10% themselves. So there’s going to be a split. So in some loose setting, maybe they raise prices by 5% and they absorb 5% of it to get up to the 10, or maybe it’s 8 and 2, or 3 and 7, or what may be. But the point is that basically, it’s going to lead to higher prices on those products.
So in this particular situation, we’re talking about higher prices for imported goods. And I think as we’re all generally aware from our day-to-day shopping and if we ever look at the label of anything, we buy a lot of imported goods in the United States. So it’s not unreasonable to think that raising taxes essentially on imported goods would ultimately boost the prices of those imported goods and then on average raise our cost of living at least somewhat.
Anna Helhoski:
Now, Trump claims that his tariffs would spur American manufacturing and domestic competition for production. Is that something that does happen or would likely happen as a result of tariffs?
Derek Stimel:
So it definitely can happen that there could be some… you know, businesses have to make the best decisions based on the rules of the game as they are. Raising tariffs would definitely change the rules and businesses would likely respond to that. And so to the extent that they could and that the U.S. was a major market to them, at least some businesses would try to reallocate or relocate back into the U.S. in order to avoid this tariff, basically. But I think the question is: Would that be enough to counterbalance the effect of this higher tax across the board? I don’t have hard data on it, but the likely answer is it wouldn’t be enough. So we would still see higher prices as a result, and so we would have to deal with the consequences. But there could be some reallocation or relocation of businesses for sure.
Anna Helhoski:
Another promise Trump has made is to lower gas prices. Under his first administration, he increased oil production and then Biden went further still. So how much can a president impact gas prices?
Derek Stimel:
The gas market or the market for energy more broadly defined is very much a global market, but the U.S. is in a way in a unique position of being the center of that global market. You hear a lot about that the U.S. dollar is this global reserve currency. Oil for example is usually traded in dollars and that sort of thing. So we do have a little bit more power than some other countries. The answer would be maybe a bit different if it was us talking about Canada doing something or whatever. It is also probably true that gas prices or prices of energy in general are really often driven by these global shocks. So in this particular case, the disruptions that took place due to Russia’s invasion of Ukraine are really the prime mover probably of energy prices in the recent years. And it’s not clear that any president would be able to have done something about that directly. Obviously, it’s more of a geopolitical thing than an economic policy thing.
Anna Helhoski:
Switching gears again, I’m hoping you can talk a little about the connection between immigration and the prices that consumers pay for certain everyday goods and services. And note for listeners, as you may know, Trump has promised to use law enforcement and the National Guard to deport many millions of undocumented immigrants. Beyond the humanitarian implications and the logistical questions raised by this proposal, what are some of the economic implications?
Derek Stimel:
Kind of a classic way of thinking about it economically, especially when we’re talking about things like inflation, is that we think that business costs basically would drive a lot of inflation, or at least it could be a prime driver of inflation. And inside those business costs, labor costs are often a large portion of those costs. And of course, that has to do a lot with the supply of labor that’s available relative to the demand for that labor. And so we live in an aging society, the baby boomers are basically retiring. And of course, this is reducing our labor supply or at least likely to reduce our labor supply in the coming years. So what that would mean economically is that would tend to push up wages all else the same, which of course then could also push up prices. Businesses, when they face these increased labor costs, have to make a choice about how much to pass on to customers in terms of higher prices.
So with that all in mind, if you also cut off the amount of immigration into the economy, you would think that that’s likely to put further pressure on wages in the economy. It’s going to further, in a sense, reduce or at least not provide any extra slack for the supply of labor, and so that’s going to further push up wages and further push up prices overall. That’s not to say we shouldn’t think about reforming immigration in some way, shape, or form, but that’s just to say economically that if you reduce the supply of labor, the price of that labor, the wages, and all the other forms of compensation that come with it is going to go up and businesses are going to pass at least some of that on to customers in the form of higher prices.
Anna Helhoski:
And are there any specific areas of the economy that could be altered if you deport millions of people who were already in the workforce?
Derek Stimel:
There’s the initial disruption, uncertainty that would surround it, which could shake out in all sorts of ways, many of which are probably not positive. Imagine the local restaurant down the street suddenly loses half its staff. And what are they going to do? So we would expect a lot of service sector jobs to maybe be impacted by these sorts of things, a lot of things that we interact with daily. And then there’s also this issue about if you create shortages in one area, let’s say you create a shortage in one service sector, it could spill over to other unrelated service sectors as well. Maybe now the one sector has to basically go poach employees from the other one. And so maybe it starts to spill over into other areas where you wouldn’t think of, say, quote, unquote, “illegal immigrants” basically playing a role, but it actually could have this cascade to other markets.
Anna Helhoski:
More of our interview in a moment. Stay with us. I want to talk about Donald Trump’s proposal to weaken the power of the Federal Reserve by bringing the central bank under more direct control of the president. And listeners, we’ve said it before, but the Federal Reserve is nonpartisan and operates independently. That means that the president doesn’t tell the Fed what to do and the Fed doesn’t make its decisions based on politics. Derek, it seems like the separation is pretty crucial to ensuring public trust in the central bank’s ability to make decisions. But if Trump was successful in his plans to more directly influence the Fed’s activities, what are some of those economic implications?
Derek Stimel:
Stepping back for a second, we generally think that the Fed’s main role is to keep inflation, especially over the longer term, relatively low and stable. And one element that tends to be critical to that is their basically credibility to commit to that policy of keeping inflation low and doing what it takes. None of us liked in the recent years the interest rates going up, but it’s seen as this necessary thing to do to bring inflation back down to that longer-term goal. And so the concern basically is that a lot of that comes from the fact that the Fed is independent to some degree from the rest of the government. It’s important to understand that they’re not completely independent. The president plays a role in nominating people to serve in the Fed. Congress obviously has to approve these things. But this general separation of like, oh, you can’t tell us when to change interest rates or you can’t tell us we can’t do this policy and we have to do some other policy or whatever, that tends to be important as this inflation fighter credibility that the Fed has.
If that gets eroded, I think the concern would be basically that people in the economy start to not believe in the Fed as much as an inflation fighter. That lack of credibility starts to make people think, “Well, they say they want 2% inflation, but given that they’re tied to the rest of the government, I think it’s maybe going to be more like two and a half, 3%.” So expectations start to tick up on inflation. And one thing about inflation is that expectations really play an important role and they tend to be self-fulfilling. We all expect five, we’ll get five. And so basically the Fed’s independence is one of… There’s some others of course, but it’s one of the main things that’s tying down those expectations because it’s helping the Fed maintain its credibility to be there when we need them to fight inflation.
Anna Helhoski:
Well, those are the main things I want to talk about in terms of Donald Trump, but I want to switch gears and talk about Vice President Kamala Harris’s plans to battle inflation. She recently unveiled a plan to ban price gouging. So first off, what is price gouging and how have we seen it happen?
Derek Stimel:
So in economics, price gouging doesn’t really have a specific definition, to be honest with you, but the loose idea is that it’s taking, quote, unquote, for lack of a better term, “unfair advantage of a situation in order to raise prices.” Sometimes these situations are obvious, which are… There’s an earthquake that happens, let’s say, so suddenly the price of gas and water in the surrounding area is going to skyrocket. That kind of idea of taking advantage of other people’s misery and something that was really out of their control, a natural disaster, that’s really what we see as price gouging. So in this particular context, what we’re talking about with Vice President Harris is this view where, say, for example, grocery stores taking advantage of the circumstances to basically raise prices on their products in an unfair way. But it’s a bit nebulous once you start to get away from things that I think we all would agree are clearly things out of our control, like natural disasters.
Anna Helhoski:
And is there anything already in place to prevent price gouging?
Derek Stimel:
So states generally have laws that prevent price gouging in the situations we’re talking about like natural disasters, so hurricanes and floods and earthquakes, and so forth. What Vice President Harris is really talking about is basically a federal ban across the board on all forms of price gouging. At least that’s what I understand it to be. And we don’t have that. It’s not really clear what the criteria would be for that as well. So for example, if a company raises prices on its products by 5%, how do we decide if that’s just normal market forces or is it price gouging in some ways? In other words, how do we decide the fairness of it all? Generally speaking, in our economy, we let the markets work that out, and then everybody individually makes a decision about, nope, that’s too expensive, I’m not going to buy it, or I guess I’m willing to pay that price, that kind of thing.
Anna Helhoski:
So some critics of Harris’s proposal, including Donald Trump have said that this is a price control. So what is a price control? Why don’t economists like price controls and would Harris’s proposal to ban price gouging actually be a price control?
Derek Stimel:
Basically, a price control is essentially the government setting a maximum price in a marketplace. So sort of saying, “Hey, you can charge no more than X for this product.” And of course, we have price controls in the economy. The ones that people typically talk about classically are certain cities that have rent control. What people are basically saying is that this price gouging idea would in a way limit how much businesses can raise prices. And that would in a way be similar to what happens in a price control situation where the government often does cap how much a business can raise prices.
The good and bad of economics a lot of times is that there’s tradeoffs for everything. Concern would be basically that maybe grocery stores, because that’s the one that’s been central to all this argument, has really been the price of food, is that basically, maybe you wouldn’t see as many new grocery stores opening up, or at least in a lower frequency. Maybe you would start to see the quality of what’s on the shelves in the grocery stores start to decline a little bit. So on the one hand, you get the prices of the things you buy don’t go up as much maybe, but on the other hand, there’s less of them available and at least for some of them, maybe the quality of those products might go down a little bit.
Anna Helhoski:
So beyond preventing price gouging, Harris has also vowed to lower prescription drug prices and she wants to do this with price caps by allowing Medicare to negotiate prices, speeding up delivery of generic drugs, and cracking down on big pharma. So how impactful could some of these efforts be in terms of making prescription drug prices more affordable?
Derek Stimel:
Oh, it could. Not surprisingly, the federal government via Medicare is a huge consumer in this marketplace, which basically means they have a lot of power, market power we would call. In this particular case, the technical term is monopsony power. But basically, yeah, they would have a lot of power potentially to negotiate and there would be spillover effects for people who don’t have Medicare. In terms of being able to lower, say, prescription drug prices by allowing Medicare to do this giant negotiation basically with the big pharma companies, that honestly could have a big impact on those prices for sure, because Medicare is so huge.
Anna Helhoski:
Right. And you touched on housing earlier, but let’s talk a little bit about Harris’s big proposals with her plans to make housing more affordable. One that really stuck out to me is a plan to prevent corporate landlords from using price-fixing algorithms.
Derek Stimel:
This is a brave new world that we’re in, and there’s a lot of times where regulation is behind the technology, where basically a lot of these businesses… And it’s of course not just in real estate, it’s in a lot of other areas as well, in finance in particular, where they basically use these computerized algorithms to essentially search for the deals that they want to transact. Is it price-fixing or is it the fact that all of these algorithms basically tend to point in the same direction because they often use the same data in order to churn through all their calculations? It’s not clear to me, I guess, how that might be enacted and then also what the implications would be.
Anna Helhoski:
And Harris said she would support construction of 3 million new housing units in the next four years, among other plans. And fundamentally, in order to lower housing prices or rent or the supply of homes for purchase, we just need more housing. So could Harris’s proposals spur more construction? And also what can a president do to facilitate housing growth?
Derek Stimel:
So much of this is local. I mean, so much of this is red tape based on local housing boards and all these other types of things, the “not in my backyard” kind of stuff. And so it’s not really clear what anybody at a national level could really do about that kind of stuff because so much of it is all of the local political machines and so forth that basically drive all these policies. As a general idea, I think the basic point that, yes, the way you have to basically lower housing prices or at least keep them from going up as much is to supply more housing, is definitely the answer. Because the housing market in a sense is unique compared to other markets, in that the supply is basically fixed by the number of units and very, what we would say in economics, inelastic. You’re not going to really get around that unless you just simply build more.
Anna Helhoski:
Derek, are there any other proposals from either of the candidates that we’re overlooking that could contribute to lowering prices or to increasing inflation?
Derek Stimel:
I think the last thing I would mention, I guess. I know President Trump wants to increase the domestic production of natural gas and coal and all that sort of thing. And I do find it interesting that both Vice President Harris and President Trump have focused on these areas of inflation. In the case of former President Trump, it’s energy costs, and in the case of Vice President Harris, it’s basically food costs. And these are the things that are specifically excluded by the Fed when they’re looking at the longer-term measures of inflation. So I just find it interesting that both presidential candidates have focused on these highly volatile markets, which we often think they really can’t do that much about, and that are often driven by these global forces, basically. But both of them have focused on those as their avenues to bringing inflation down.
I think the very last thing I might add in, which is probably too big to really get into, is the extent that the deficit and the national debt might play in terms of inflation in other parts of the economy, especially going forward as it’s ballooned a lot. There are some theories out there, for example, that it does play a role in inflation and to the extent that the policies of the two candidates might add to the deficit, and of course, then by extension add to the debt. That could be in a way a hidden inflation factor that we tend to not focus so much on.
Anna Helhoski:
And one we’ll probably pay for in the future.
Derek Stimel:
Yeah, somebody will eventually.
Anna Helhoski:
Derek Stimel, thank you so much for joining us today.
Derek Stimel:
Yeah, absolutely. Thank you so much for having me.
Anna Helhoski:
Sean, there’s something else I want to point out that I didn’t get to in my conversation with Derek, but came from researching an article on this topic, and that’s price tolerance. Right now, people are still pretty price intolerant because so much is elevated from where we remember it being. But if prices actually did drop across the board, it would be a big problem. Economy-wide price drops really only happen when there’s a big recession. And I think Trump and Harris’s campaigns both know this. They can’t bring back pre-pandemic prices, so what they can do strategically is make promises that are most relevant to people.
Sean Pyles:
Right. And last week we talked about how one individual president can’t really transform the economy on their own. But your conversation with Derek Stimel illustrates how a president’s priorities can make a bigger impact on an issue-by-issue basis. Former President Trump is focused on lowering the price of gas. Vice President Harris wants to make housing more affordable. And we saw how President Biden was able to push for lower prices on certain drugs like insulin. Although we should note, of course, that Biden wasn’t able to do that without the help of Congress.
Anna Helhoski:
So Sean, one other thing. Maybe it’s obvious but it’s worth saying, is that while we have pointed to a lot of ways in which a president cannot really control things like pricing, the president is also the leader of his or her respective political party, and that often means that the party and its political leaders will coalesce around these policies, making them more viable.
Sean Pyles:
Yep. We’ve mentioned that the president often has to work with Congress to get bills passed that can fulfill their promises. And members of their party, while they don’t necessarily march in lockstep, they will frequently work with that president to pursue his or her economic agenda. So no, the president can’t wave a magic wand, but if their party also has control in Congress, that makes a world of difference in the ability to make those goals happen.
Anna Helhoski:
And that’s a case for making sure you’re paying attention to what candidates are saying up and down the ballot. The presidential candidates aren’t the only ones to make a difference. Do some research on your congressional candidates, and for that matter, city council and school district, because they all touch public money and that’s your money. It always helps to educate yourself on how they plan to spend it. You can find the latest money news updates in NerdWallet’s financial news hub, which we’ll link to in the show notes, or just search online for NerdWallet financial news.
Sean Pyles:
So Anna, tell us what’s coming up in episode three of the series.
Anna Helhoski:
Well, Sean, next time we’re using a word nobody likes but matters a lot to your finances: taxes. We’ll hear what the current candidates for the highest office in the land want to do with the money that comes out of your paycheck.
Amy Hanauer:
Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans. So to the richest 20% of Americans. So just for a sense of what that will cost, in 2026 alone, that will cost more than $280 billion.
Anna Helhoski:
For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-N-E-R-D. You can also email us at [email protected]. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
Sean Pyles:
This episode was produced by Tess Vigeland and Anna. I helped with editing. Rick VanderKnyff and Amanda Derengowski helped with fact-checking. Megan Maurer mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Anna Helhoski:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Mobile payment apps are certainly convenient, and, when compared to other payment methods, they are quite safe. They allow you to make payments with devices like smartphones and smartwatches, and can be even faster than using, say, a debit card.
That said, you should know a few details before deciding to use a payment app and when deploying one in daily life to keep your hard-earned cash as safe as possible. This guide will help you with such questions as:
• What are mobile payment apps?
• Are mobile payments secure?
• What are the pros and cons of mobile payments?
• How do I use a mobile payment app?
Key Points
• Mobile payment apps allow you to make contactless payments and conduct other financial transactions using your mobile device.
• While no payment app may be 100% secure, mobile payment apps typically use a number of features to enhance security, including tokenization, encryption, and two-factor authentication.
• To authenticate each transaction, a mobile payment app may require a PIN or use biometrics, such as a fingerprint or face ID.
• There are steps mobile app users can take to help minimize risk, such as setting up payment notifications, enabling two-factor authentication, and allowing automatic updates, which might include security features.
• Always double-check recipient details to avoid sending money to the wrong person or to potential scammers — once funds are transferred, it can be hard to get them back.
What Are Mobile Payment Apps?
Mobile payment apps enable contactless payments by waving a smart device at a payment terminal. This can be faster and touchless versus pulling out a debit card or credit card and then inserting it into a reader.
In addition, mobile payment apps allow you to send and receive money with friends and family. These apps can be installed on devices like smartphones, smartwatches, and tablets. Many payment apps are available, but common choices include Apple Pay, Google Pay, Samsung Pay, and Venmo.
Some mobile payment apps have a wallet feature that allows you to store credit and debit cards and things like boarding passes and tickets. Instead of having to carry each card individually, you can load them all into your mobile wallet.
Another way to conveniently manage your money is with a high yield bank account. You can typically do online and/or mobile banking with these accounts.
How Mobile Payments Work
Typically, you link payment cards in a mobile wallet or a while on a screen that uploads your payment method. You’ll need basic information such as the card number, expiration date, and CVV (those few digits, often found on the back) to link your card. When you finish filling in your card’s information, you may have to verify it with your bank.
Then, instead of paying with the card directly, you use your device to pay using the payment app. Your device sends your necessary information via what’s known as near field communication (NFC) but without revealing your actual account numbers, which is a welcome security feature.
Benefits of Mobile Payments
Mobile payment apps have several benefits that can make them preferable in our increasingly connected world. Some of those benefits include:
• Convenience: On any given day, you may find you need to carry a wide variety of cards. Not just credit cards and debit cards, but also things like loyalty cards, boarding passes, and sporting event tickets. All of these can be loaded into popular mobile payment apps, so you have everything you need in one place.
• Security: When you wave your device to pay with your mobile app, it doesn’t share your card number. Instead, it generates a series of random numbers (called a token) for each transaction you make. Plus, mobile payment apps require you to enter a PIN (personal identification number) or authenticate with biometrics like a fingerprint or face ID with every transaction. So, even if someone gets access to your device, it’s unlikely they would be able to use it to make purchases.
• Speed: Paying with a mobile payment app tends to be much quicker than paying by swiping or inserting your card. In fact, it can be a way to send money instantly (or close to it), while swiping or inserting can take several seconds. This benefit may seem minor in the grand scheme of things, but it can make a big difference when you’re in a rush.
Are Mobile Payments Safe?
Usually, mobile payment apps are safe compared to other payment methods. Most of that safety comes down to the tokenization mentioned in the previous section. Not only are these tokens different from your card number, but they are also encrypted and unique for each transaction.
This renders “sniffing” of mobile payment data (a common hacking method) virtually useless. Indeed, mobile payments are usually safe in most scenarios in the same way that mobile banking is safe. However, this doesn’t mean mobile payment apps are completely guaranteed to never have security issues or other glitches.
Consider this scenario:
• Most of these apps allow you to send money directly to friends and family to cover the portion of the meal you had together. To be sure, that can be more convenient than dealing with cash.
• However, there may not be a lot of safeguards in place when you send money with a mobile payment app. If you have a new person in your friend group and they accidentally send money to the wrong person (whose username is just one letter or digit different), it can be difficult to get it back.
This shows that mobile payment apps are safer in some contexts but aren’t perfect. The answer to “Are payment apps safe” may never be 100% certainly “yes.” One good way to protect yourself from problems is to always check that your money is going to the right place when paying with a mobile payment app.
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Drawbacks of Mobile Payments
Like all technologies, mobile payments have their pros and cons. Here are a couple of the downsides:
• While the popularity of mobile payments has rapidly expanded, there might still be some merchants that don’t accept them.
• You may find that the payment terminal has a technical issue preventing it from accepting mobile payments. Thus, you might occasionally find you aren’t able to make a purchase by, say, waving your phone.
• There are many different players in the mobile payments field, all of whom may have different policies. For example, the guidelines can be murky around things like data sharing. In addition, many mobile payment apps are available, which can create confusion as people navigate this new technology.
• While rare, money scams and hacking involving mobile payments are possible.
Features of Payment Apps to Look Out For
Because there are so many mobile apps available right now, you should look out for certain features. Here are some key features to keep in mind:
• Ease of use: One of the best aspects of mobile payment apps is they tend to be convenient and easy to use. If you find yourself struggling to link your cards or make payments, the app you are using may not be the best choice for you.
• Security: The other great thing about mobile payment apps is that they sometimes provide greater security than credit cards alone. You’ll want to ensure your payment app has security features like two-factor authentication and PIN or biometric verification for purchases. It should also never display your full card number in your wallet or payment method screen.
• Privacy: Privacy is increasingly an important part of any app’s policies, especially as more and more of our data lives online. However, it can be tough to know how your data is being used without diving into documents like the app’s terms of use and privacy policy. Still, it may be helpful to at least skim them if privacy is important to you. If the app sells your data to advertisers, it should be disclosed in these documents.
You may also feel safer going with a widely recognized mobile payment app, one that has many users and very positive reviews.
How to Use a Mobile Payment App
Each mobile payment app is different, but there are usually just a few steps to using one. Typically, this is how they work:
• Start by downloading your payment app of choice. Or you may already have a payment app loaded on your device, like Apple Pay, Google Pay, or Samsung Pay.
• Once you have your payment app on your device, link the payment card(s) you want to use with it. At this stage, you may have to complete a two-step verification process. For example, you might receive a verification code from your bank, or you may have to call the bank.
• After completing the verification process with your bank, your payment app should be ready to use with your linked cards. You can use your payment app (or a contactless credit card) if you see the NFC symbol when you pay. There are a few different versions of the NFC symbol, but it usually shows an image of waves that increase in size.
• Note that payment apps usually require you to add a PIN or biometric unlock (your fingerprint or face, for instance) to your phone and enter it before each payment.
• Once you unlock and hold your device near the terminal, you will likely see an indication on your phone screen that the transaction is successful. You may also hear an alert sound. When that happens, ta-da: You’ve paid with your mobile payment app.
Recommended: How to Send Money to Someone Without a Bank Account
Tips to Safely Use Mobile Payment Apps
Although mobile payment apps can be safer than other payment methods, there are a few steps you should take to ensure they are secure:
• Set up payment notifications: These will alert you to any payments on your card, so you will know immediately if someone gains access to your information.
• Enable two-factor authentication: Two-factor authentication is an extra layer of security that makes it more difficult to gain access to your account. For example, you must enter a code from a text message or email to verify it after you link a payment card.
• Enable automatic updates: Mobile payment apps frequently receive updates, which might include security features. Auto-update is often toggled on as a default setting, but double-check it’s enabled on your device.
For instance, open the Google Play Store app on Android and tap the menu icon > Settings > Auto-update apps. On iPhone, open Settings > iTunes & App Store and enable App Updates.
• Check that you are sending money to the right person. It can be difficult to get your money back if you send it to the wrong person using a mobile payment app. Before sending money, double-check (and perhaps triple-check) the details on your screen match those of the person who should receive the money.
• Beware of scams. Mobile payment apps are a common way for scammers to get money from unsuspecting victims. An easy way to prevent this is to avoid using a payment app to send money to people you don’t know.
Recommended: Key Features of Mobile Banking
The Takeaway
Mobile payment apps allow you to pay using a smart device like a smartphone, smartwatch, or tablet, and to do so in a fast, contact-free manner. They may also allow you to send and receive money with friends and family. These apps can be safer than other payment methods, like credit cards. However, they can sometimes be fallible, so you should always be careful when sending money.
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FAQ
What are the pros and cons of mobile payment apps?
The pros of mobile payment apps include their convenience, security, and speed of payment processing. Cons include that they aren’t yet accepted everywhere and are sometimes used by scam artists.
Does card fraud happen on payment apps?
There have been some instances of card fraud on payment apps, like when scam artists use flaws in the app’s design to extract money from victims. However, thanks to features like tokenization (encryption of your personal financial information), most payment apps make fraud much more difficult.
Are payment apps stealing my information?
Some payment apps might use your information in certain ways, like capitalizing on it to market products or selling it to advertisers. However, these details are often laid out in the app’s policy documents.
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As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.30% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.30% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
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Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
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