“It’s likely that high-level managers and highly skilled employees will be the ones to leave, especially those over 40 with families who benefit most from remote work,” Shynkarenko said in a statement to HRD. Younger employees, such as Gen Zs, on the other hand, might stay put despite wanting to leave as jobs are currently … [Read more…]
When it comes to investing, there are certain rules of thumb that investors are often encouraged to follow. One of the most-repeated adages in investing is to try and “buy low, sell high.”
Buying low and selling high simply means purchasing securities at one price, then selling them later at a higher price. This bit of investing wisdom offers a relatively straightforward take on how to realize profits in the market. But figuring out how to buy low and sell high — and make this strategy work — is a bit more complicated. Timing the market is not a perfect science, and understanding that implementing a buy low, sell high strategy is more complicated than it sounds is critical to investor success.
Key Points
• Buy low, sell high is an investment strategy that involves purchasing securities at a lower price and selling them later at a higher price.
• Timing the market and implementing this strategy can be challenging, as market movements are unpredictable.
• Understanding stock market cycles and trends can help determine when to buy low and sell high.
• Technical indicators and moving averages can assist in identifying pricing trends and points of resistance.
• Investor biases and herd mentality can impact decision-making, so it’s important to make rational choices based on research and analysis.
What Does It Mean to “Buy Low, Sell High”?
“Buy low, sell high” is an investment philosophy that advocates buying stocks or other securities at one price, and then selling them later when they’ve (hopefully) gained value. This is the opposite of buying high and selling low, which effectively results in investors selling stocks at a loss.
When investors buy low and sell high, they may do so to maximize profits. For example, a day trader may purchase shares of XYZ stock at $10 in the morning, then turn around and sell them for $30 per share in the afternoon if the stock’s price increases. The result is a $20 profit per share, less trading fees or commissions. Of course, a price increase of that magnitude within a single day is highly unlikely.
Likewise, a buy and hold investor may purchase stocks, exchange-traded funds (ETFs), or mutual funds and hold onto them for years or even decades. The payoff comes if they sell those securities later for more than what they paid for them.
Recommended: How to Know When to Sell a Stock
4 Tips on How to Buy Low and Sell High
The following tips may help investors develop a buy low, sell high strategy (or avoid the buy high, sell low trap).
1. Investing with the Business Cycle
Understanding stock market cycles and their correlation to the business cycle can help when determining how to buy low and sell high.
The business cycle is the rise and fall in economic activity that an economy experiences over time. If the business cycle is in an expansion phase and the economy is growing, for instance, then stock prices may be on the upswing as well. On the other hand, if it’s become apparent that economic growth has peaked, that could be a signal for stock price drops to come as an economy slows or enters into a recession.
But like most strategies that aim to buy low and sell high, investing with the business cycle can be challenging.
It’s also important to remember that security prices typically don’t move in a straight line up or down in lockstep with a specific phase of the business cycle. Instead, most securities experience a level of volatility, where prices move up or down (or both) in the short term before reverting to the mean.
2. Look at Stock Pricing Trends
Investors who want to buy low may find it helpful to pay attention to pricing trends or technical indicators. Tracking trends for individual securities, for a particular stock market sector, or the market as a whole can help investors get a sense of what kind of momentum is driving prices.
For instance, an investor wondering how low a stock price can go can look at technical indicator trends to identify significant pricing dips or rises in the stock’s history. This could, potentially, help determine when a stock or security has reached its bottom, opening the door for buying opportunities. Conversely, investors may also use trends to evaluate when a stock has likely reached its high point, indicating that it’s prime time to sell.
3. Use Moving Averages
Moving averages are a commonly used indicator for technical analysis. A moving average represents the average price of a security over a set time period. So to find a simple moving average, for example, an investor would choose a time period to measure. Then they’d add up the stock’s closing price each day for that time period and divide it by the number of days.
The moving average formula can help compare stock pricing and determine points of resistance. In other words, they can tell investors where stock prices have topped out or bottomed out over time. Moving averages can smooth out occasional pricing blips that temporarily push stock prices up or down.
Comparing one moving average to another, such as the 50-day moving average to the 200-day moving average, can also help investors to spot sustainable up or down pricing trends. All this can help when deciding when to buy low or sell high.
4. Beware of Investor Bias
An investor bias is a pattern of behavior that influences reactions to a changing market. For example, noise trading happens when an investor makes a trade without considering the state of the market or timing. The investor may follow pricing trends but make trades without considering whether the time is right to buy or sell.
Investors who give in to biases may find themselves following a herd mentality when it comes to making trades. If news of a pending interest rate hike sparks fear in the markets, investors may start panic selling in droves. This can, in turn, cause stock prices to drop. On the other hand, irrational exuberance for a specific stock or type of security can push prices up, causing an unsustainable market bubble.
Investors who can refrain from being influenced by the crowd stand a better chance of making rational decisions about when to buy or when to sell to either maximize profits or minimize losses.
Pros and Cons of Buy Low, Sell High
A buy low, sell high strategy can work for investors, but while it’s a worthy goal, the implementation can be difficult. Investors who are too focused on timing the stock market can run into difficulties.
Benefits of Buy Low, Sell High
Buying low and selling high can yield these advantages to investors.
• Potential bargain-buying opportunities. If investor sentiment is causing fear and panic to take over the market and push stock prices down, that could open a door for buy low, sell high investors as they buy the dip. Individuals who ignore market panic could purchase stocks and other securities at a discount, only to benefit later once the market rebounds and prices begin to rise again.
• Potential for high returns. An investor skilled at spotting trendings and reading the market cycle could reap sizable profits using a buy low, sell high strategy. The wider the gap between a stock’s purchase and sale price, the higher the profit margin.
• Beat the market. A buy low, sell high approach could also help investors to beat the market if their portfolio performs better than expected. This might be preferable for active traders who forgo a passive or indexing approach to investing.
Disadvantages of Buy Low, Sell High
Attempting to buy low and sell high also holds some risks for investors.
• Timing the market is imperfect. There’s no way to time the market and which way stock prices will go at any given moment with 100% accuracy. So there’s still some risk for investors who jump the gun on when to buy or sell if stocks have yet to reach their respective lowest or highest points.
• Being left out of the market. Investors who want to buy low and sell high would not want to buy securities when the market is up. That practice, however, could lead to substantial time out of the market entirely, especially during bull markets.
• Biases can influence decision-making. Investment biases and herd mentality can wreak havoc in a portfolio if an investor allows it. Instead of buying low and selling at a profit later, investors may find themselves in a buy high, sell low cycle where they lose money on investments.
• Pricing doesn’t tell the whole story. While tracking stock pricing trends and moving averages can be useful, they don’t offer a complete picture of what drives pricing changes. For that reason, it’s important for investors also to consider other factors, such as consumer sentiment, the possibility of a merger, or geopolitical events, influencing stock prices.
Alternatives to Buy Low, Sell High
Buying low and selling high is not a foolproof way to match or beat the market’s performance. It’s easy to make mistakes and lose money when attempting to time the market unless, of course, you possess a crystal ball or psychic abilities.
There are, however, other ways to invest without trying to time the market. Take dollar-cost averaging, for example. This strategy involves staying invested in the market continuously through its changing cycles. Instead of trying to time when to buy or sell, investors continue making new investments. Over time, the highs and lows in stock pricing tend to average out.
A dividend reinvestment plan (DRIP) is another option. Investors who own dividend-paying stocks may have the opportunity to enroll in a DRIP. Instead of receiving dividend payouts as cash, they’re reinvesting into additional shares of the same stock. Similar to dollar-cost averaging, this approach could make it easier to ride out the ups and downs of the market over time and eliminate the stress of deciding when to buy or sell.
Investing with SoFi
A buy low, sell high investment strategy is fairly simple, in that it involves buying a security at one price, and selling it after, or if, it appreciates. Obviously, there’s no guarantee that any asset will appreciate, so it’s possible investors could lose money – but they could also see positive returns, too.
Further, the strategy can be challenging to implement. Executing a buy low, sell high plan successfully means researching and doing due diligence to understand how the market works.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
FAQ
Is buying low and selling high a good strategy?
Buying low and selling high can generally be a good strategy as it allows you to take advantage of price movements in the market. However, there is no guarantee that this strategy will always be successful, and you may end up losing money if the market conditions are not favorable.
Is it illegal to buy low and sell high?
There is no law against buying low and selling high. Most investors make money by buying a security at a low price and then selling it later at a higher price.
Why do you sell high and buy low?
Many investors sell high and buy low because they want to take advantage of market conditions to realize a positive return. When the market is high, investors may sell an investment they purchased at a lower price to make a profit.
Photo credit: iStock/katleho Seisa
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
When planning for retirement, people often assume Medicare will cover their medical bills, but in fact many retirees will face out-of-pocket costs that, over time, could reach into the six figures.
While it’s difficult to predict for sure what your actual health care costs in retirement will be — especially in light of today’s longevity — it’s wise to work with a ballpark figure in order to create a safety net of savings that will cover you, no matter what your needs will be in the years to come.
Key Points
• Planning for retirement should take health care costs into account, such as potential out-of-pocket costs and long-term care.
• According to research, the average 65-year-old individual may need $165,000 in savings to cover medical expenses in retirement (and double that amount for couples).
• Medicare covers medical costs such as preventive care, doctor visits, prescription drugs, inpatient hospital stays, short-term rehab, and hospice.
• Medicare Advantage Plans are Medicare-approved, private insurance plans that may cover medical basics as well as other expenses, such as vision, hearing, and dental.
• Health savings accounts (HSAs) and long-term care insurance can help pay for medical expenses not covered by Medicare.
Health Care in Retirement
The cost of health care in retirement can be overwhelming. According to the annual Fidelity Retiree Health Care Cost Estimate in 2024, a typical retired couple aged 65 could spend as much as $330,000 in after-tax savings on medical expenses during the course of their retirement.
That figure doesn’t include related health costs such as dental services, over-the-counter medications, or long-term care — which are not currently covered by original Medicare.
Long-term care expenses can be especially onerous, with the median cost of a private room in a nursing home running about $116,800 per year, according to the 2023 Genworth Cost of Care Survey. This, too, is an expense that many people may need to factor into their retirement plans, given the growing number of people living into their 80s and 90s — or longer.
This “new longevity,” as it’s sometimes called, may also lead to additional health-related costs down the line that are difficult to anticipate now, but require educated estimates nonetheless — especially for women, who live on average about five years longer than men.
Recommended: Different Types of Retirement Accounts
Boost your retirement contributions with a 1% match.
SoFi IRAs now get a 1% match on every dollar you deposit, up to the annual contribution limits. Open an account today and get started.
Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.
How Much to Budget for Health Care Costs in Retirement
To create a realistic plan for retirement, and make optimal financial decisions about investing for retirement, insurance coverage, and the timing of important government benefits — the starting point is to look at how much money will be coming in, and how much will be going out to pay for likely health issues.
Social Security Benefits
While Social Security benefits depend on an individual’s work history, as well as the age when they first file for Social Security, the key thing to know about this source of income is that it’s limited. The average monthly payout, starting in January 2024, was $1,907. And the maximum possible benefit amount is $3,822 per month, for those who retire at full retirement age in 2024.
Individuals can file for Social Security starting at age 62, generally speaking, but “full retirement age” is 67 for those born in 1960 and later. To get a more accurate estimate of your own benefit amount, go to SSA.gov.
Private Sources of Income
Fortunately, most retirees also have savings or a pension, which can add to their income. Nearly 80% of retirees reported having one or more sources of private income, in addition to Social Security, according to the Economic Well-Being of U.S. Households in 2022, by the Federal Reserve Board.
For example, you may have opened a retirement account like an IRA or an employer-sponsored plan, such as a 401(k), that may offer an additional source of income.
If you’re freelance or a small business owner, you may have a SEP IRA or a SIMPLE IRA — common retirement plan options for the self-employed.
The point is to have a grasp of your income sources in retirement, as well as your anticipated cash flow, so that you can cover medical costs in retirement.
Understanding Health Care Costs
As costs vary considerably depending on one’s region, age, and overall health, it can be difficult to estimate the precise amount to set aside for health care in retirement.
Start by assessing your overall health today, and speaking to your doctor(s) about any chronic conditions, genetic predispositions, and any other risk factors that could impact the care you need as you get older.
Unfortunately, there’s almost no way to predict with any accuracy the types of conditions or care you might need, or what they will cost, when preparing for retirement. But in some cases this thought exercise may help you anticipate some upcoming costs, so you can factor that into your overall estimate.
Of course, not all of your medical costs in retirement will be out of pocket; Medicare (and Medicaid, if you qualify) cover many medical expenses. But this insurance is another expense to factor in.
What Does Medicare Cost, What Does It Cover?
Medicare is a medical insurance program offered by the federal government for those 65 years and older, and those who are disabled. Medicare will pay certain health care expenses in retirement, but with restrictions. Dental, vision, and hearing care, including hearing aids, are not covered by Original Medicare, generally known as Parts A and B.
Also, as noted above: Medicare does not cover long-term care, like an assisted living or nursing home facility.
Note that you must apply for Medicare benefits within a certain window, or risk being penalized with higher premiums. Generally, the Initial Enrollment period begins three months before you turn 65, and it ends three months after the month in which you turned 65. Some exceptions apply (for example, if you have health insurance through your employer, or were affected by a natural disaster).
Be sure to check the terms that might apply to your situation to avoid a penalty.
Understanding Medicare Coverage
The following terms generally apply to those with a modified adjusted gross income (MAGI) over $103,000, or $206,000 for a married couple. If your premium is subject to an income adjustment, it could be as high as $594 per month (though according to the Centers for Medicare and Medicaid Services (CMS), the highest rate generally applies to people with incomes over $500,000, or $750,000 for a married couple).
• Medicare Part A covers inpatient hospital stays and treatment, as well as skilled nursing care (i.e. short-term rehab), limited in-home care and hospice. As long as you or your spouse had sufficient Medicare taxes withheld through your job (generally at least 10 years), you won’t pay a monthly premium for Part A. The deductible for Part A is $1,632 in 2024.
• Medicare Part B covers outpatient care, preventive care, and visits to doctors. The monthly premium for Part B is about $174 per month, with a roughly $240 annual deductible in 2024.
• Medicare Part D covers prescription drugs. The monthly premium is about $55.50 in 2024.
Medicare Part C, or Medicare Advantage Plans, is a bit of a separate case. Medicare Advantage plans are private insurance plans that are Medicare-approved, and may cover vision, hearing, or dental needs, as well as the medical basics and prescriptions covered by Parts A, B, and D. Medicare Advantage plans are optional.
While the Advantage Plans are designed to fill in certain gaps in coverage, you want to make sure the costs are manageable, and that you’re not paying for overlapping policies.
Medicare Costs
In other words, assuming at least one hospital stay that requires you to pay the deductible, the basic cost of Medicare alone is about $4,600 per year. Again, that doesn’t include:
• Vision care
• Dental care
• Hearing care or hearing aids
• Long-term care
Most people will need some or all of those types of health care as they get older, which could add to your potential out-of-pocket expenses over time, and speaks to the need for some emergency savings.
Other Ways to Pay for Health Care
In addition to Medicare, there are other ways to pay for medical expenses during retirement, including HSA accounts and long-term care insurance.
Health Savings Account (HSA)
When choosing a health insurance plan before you retire, consider one that comes with a health savings account (HSA) that may help you save money for retirement medical expenses. These accounts generally come with high-deductible health plans (HDHPs), and provide three substantial tax benefits:
• Contribution deductions
• Tax-deferred growth
• Withdrawals without taxation for qualified medical costs
The accounts take pre-tax deposits to cover health care costs that are not covered by insurance. The unspent money in an HSA rolls over from year to year. Most important, the money in an HSA account belongs to you, even when you are no longer participating in the original high-deductible plan.
What Your HSA Savings May Cover
HSA funds can be used to pay for a variety of medical expenses in retirement. For instance, prescription drugs, eyeglasses, hearing aids, and other medical supplies can generally be purchased with HSA funds.
Additionally, you can use HSA savings to cover deductibles and co-payments for medical care. Medicare premiums and long-term care insurance premiums can also be covered using HSA funds.
By utilizing catch-up payments and employer contributions, those who are already over 50 can still get the most out of these programs. A catch-up payment of $1,000 per year, in addition to the maximum contribution limit, is allowed for people 55 and older. One can use an HSA to pay for yearly physicals or other preventative exams covered by an HDHP.
A benefit of utilizing an HSA to cover medical expenses in retirement is that the money in the account can be invested, allowing it to increase in value over time. This might be helpful for people who wish to have a dedicated source of savings to cover medical bills.
It’s worth noting that funds in an HSA must be used for qualified medical expenses in order to be withdrawn tax-free. It’s a good idea to consult a tax professional or review IRS guidelines to ensure that HSA funds are being used appropriately.
Long-Term Care Insurance
Another approach to bridge the Medicare gap is to get long-term care insurance. This kind of insurance can provide a monthly benefit for long-term care, either for a few years or for the rest of one’s life.
The expenses of long-term care such as in-home care, assisted living, and nursing facility care, can be covered in part by long-term care insurance. These services are often required by people who are unable to do activities of daily living on their own, such as eating, dressing, or bathing, due to a chronic disease or disability.
That said, these policies can be complex, as well as expensive, and it may be wise to consult with a professional before purchasing coverage.
The Takeaway
Medical expenses can be a large portion of one’s retirement budget. As daunting as it may seem, calculating these expenditures ahead of time and developing an insurance and spending plan will help you save more of your retirement funds for other needs.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
How much does the average person spend on health care in retirement?
Health care costs depend on a variety of factors, but on average a healthy person over age 65 could spend as much as $165,000 during their retirement ($330,000 per couple).
How do I prepare for health care expenses in retirement?
A few ways to prepare include making a retirement budget, saving in a retirement account, funding a health savings account while still employed, making sure to get adequate medical insurance through Medicare and/or private Advantage plans once you turn 65. You may want to consider long-term care insurance as well.
How do I save for out-of-pocket medical expenses?
Ways to save on out-of-pocket medical expenses include shopping around for the best prices on health care services, making use of preventive care services to help reduce the need for more expensive treatments in the future, and purchasing insurance to help cover unexpected medical costs. In addition, funding a health savings account (HSA) when it’s offered is a tax-advantaged way to set aside money for health care costs.
Photo credit: iStock/jacoblund
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
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.
Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Looking for the best microtask websites to make extra money? Microtask websites are a great way to make some quick, extra money without any long-term commitment. These platforms allow you to complete small, simple tasks like taking surveys, testing apps, watching videos, or performing data entry, all from the comfort of your home. Whether you’re…
Looking for the best microtask websites to make extra money?
Microtask websites are a great way to make some quick, extra money without any long-term commitment.
These platforms allow you to complete small, simple tasks like taking surveys, testing apps, watching videos, or performing data entry, all from the comfort of your home.
Whether you’re looking for a flexible way to make money during your downtime or just want to earn a little extra cash on the side, micro tasks can be a good fit.
Microtask websites have been one of my favorite ways to make extra money because they’re easy to fit into my day, whether I have just a few minutes or a whole afternoon to spare.
Best Micro Task Websites
Below are the best microtask websites to make extra money.
1. Swagbucks
Swagbucks is a popular rewards site that lets users earn extra money by performing different tasks. Once you’re finished completing tasks, you can redeem your points for gift cards or cash via PayPal.
There are different ways to make money with Swagbucks including:
Surveys
Watching videos
Searching the web using their search engine
Shopping online
Referring friends
My sister has earned over 100 free Amazon gift cards from being active on Swagbucks over the years, so I know it’s real!
If you join Swagbucks through my referral link, you will receive a $10 bonus.
2. Freecash
Freecash is an online platform where you can earn money by completing a wide variety of tasks such as online surveys, signing up for services, downloading apps, watching videos, playing games, and more.
Once you’ve earned enough points, you can redeem rewards for gift cards, PayPal cash, cryptocurrency, and more. To maximize earnings, check the site daily for new surveys and other earning opportunities. You can also invite friends and family to Freecash to earn even more points.
My sister (the owner of the site you are reading right now), actually just made $302 playing a game on her phone in just one week through Freecash recently. She did it all on her own schedule and it was super easy!
Click here to sign up for Freecash.
Recommended reading: 23 Best Game Apps To Win Real Money
3. Amazon Mechanical Turk
Amazon Mechanical Turk (also known as MTurk) is a platform where people can complete small tasks such as data entry, transcription, image tagging, surveys, audio transcription, and more. They call these tasks human intelligence tasks (HITs).
You can choose tasks that match your skills and interests so you can complete jobs faster. Each of the small jobs will show the reward amount, the estimated completion time, and the requestor’s approval rating. These details will help you decide if the job is worth the time.
MTurk is a unique platform because you can filter out jobs by reward amount, time allotted, and other criteria to find the best job for you.
To make the most money with Amazon Mechanical Turk, choose jobs with higher rewards and also think about the time to complete them. This platform is not known for paying the highest, but the jobs are flexible, which is nice.
4. Clickworker
Clickworker is one of the best micro job websites and they list micro jobs with tasks including writing, translating, researching, data entry, data collection, mystery shopping, and more.
To get started, create an account on the Clickworker website. Clickworker requires users to complete assessments to gather data on the skills users have to match them with appropriate tasks.
You can also look for different micro task jobs on Clickworker. Jobs include text creation, categorization, copy editing, proofreading, surveys, web research, and app testing. Focus on accuracy so you can get the highest rating possible so you can get more task opportunities.
5. Fiverr
Fiverr is an online job freelance marketplace where you can find gigs in categories like writing, graphic design, designing websites, video editing, search engine evaluation, annotation, research studies, help with social media platforms, and programming.
Fiverr lets you set up gigs for services you sell so people can reach out to you for hire. In each gig posting, you should include details like:
Description of your services and skills
Pricing structure
Any pictures that you may have of your previous work
When starting on Fiverr, it may help to have competitive pricing so you land more jobs and get reviews. This will help you get more jobs in the future.
You can withdraw Fiverr earnings to your bank and PayPal once you’ve reached the minimum withdrawal amount.
6. Kashkick
Kashkick is a platform where people can earn extra money by completing different tasks like taking surveys, watching videos, browsing the web, and more. It is one of the best microtask websites for beginners because you don’t need any experience.
When completing surveys, it’s important to provide honest answers and accurate information. If you have inconsistent answers across surveys, this can lead to disqualification from future surveys and reduce your chances of landing micro tasks on Kashkick.
You can sign up for Kashkick here.
7. Microworkers
Microworkers is a crowdsourcing platform where people can make money completing small tasks. Tasks on the Microworkers platform include:
Data mining
Image transcription
Content moderation
Testing
Surveys
Transcription
Translation
Once your account is set up, you can browse different jobs on the platform that match your skills and interests. Each task will include details such as pay, time required, and task instructions. Each task comes with instructions and it’s important to read these carefully to ensure you complete the job correctly.
New tasks are added regularly so it’s a good idea to regularly check the platform to look for new micro jobs.
8. Appen
Appen is a global platform that has part-time, freelance, and short-term projects that can be done remotely.
Once you create an account, you can browse through project listings and apply for jobs that match your skills and interests. Certain jobs may require you to pass a qualification test before you can start a job.
Micro tasks on Appen include image labeling, transcription, data categorization, and more. You can also complete surveys to make extra money.
9. TaskRabbit
TaskRabbit is a gig platform that connects workers with tasks individuals need help with. These tasks can include:
Moving
Cleaning
Painting
Home repairs
Mounting
Outdoor help
For example, I have a friend who recently needed help putting together a piece of furniture. They found someone on TaskRabbit who came to their house and put together the furniture for them. The person got paid, and then left – that was the whole task.
To get started, create an account with TaskRabbit and fill out your profile with details such as your skills, experience, and the type of tasks you can do. You can also set up certain services you’re skilled in such as home repair, painting, outdoor work, etc.
Your next step will be determining your rate. Check out other profiles in your area doing similar work as you and see what they are charging. This will give you an idea of how to be competitive and stand out from others. Set up notifications in your area to get alerts of new jobs in your town.
10. PeoplePerHour
PeoplePerHour is a platform for freelancers to find jobs. Jobs and micro tasks include:
Digital marketing
Web design
Writing
Social media
Branding
SEO
Illustration
To get started finding jobs on PeoplePerHour, create an account and include a professional photo of yourself, a catchy headline, your hourly rate or project pricing, and a detailed description of your work experience.
Once your profile is set up, you can apply for projects and submit proposals to jobs. In your proposal, you’ll share details like a brief intro about yourself, why the client should choose you for the job, relevant experience, and your rate and timeline for the project.
11. Gigbucks
Gigbucks is a gig marketplace where people can hire out and list services.
As a gig worker, you can create a listing and share detailed information about yourself and your work. In this listing, you’ll share information like your skills, experience, rates, and examples of your work history.
Here are some tips to be successful on Gigbucks:
Set competitive prices on projects
Maintain good communication with clients (make sure to respond to any messages you get!)
Complete high-quality work and meet deadlines
Request reviews from clients
12. Freelancer
Freelancer is a site that connects freelancers with clients who need help in areas like graphic design, writing, programming, and marketing.
As a freelancer, you create your own listing on Freelancer which will show your experience, skills, and work history.
You can also use the Freelancer platform to look for new job listings. If you find a job you like, you can submit a proposal. In the proposal, you’ll share important information like an introduction to yourself, relevant work history, as well as budget and timeline. Your proposal should stand out and make the client want to pick you over anyone else.
13. UserTesting
UserTesting is a site that pays people to test out different things for companies. As a tester, you’ll provide feedback on websites, apps, and other digital products. Once you sign up, you’ll be asked to complete a qualification test to make sure you meet the requirements for certain tasks.
Once your profile is set up, you can browse available tests. Some tasks may include navigating a website to provide feedback on usability and functionality. Other jobs include testing apps and providing feedback on user experience and features.
To complete tasks on this site, you’ll need a computer, and some tasks require a webcam and microphone.
I have used UserTesting in the past to have my website evaluated. The person just spends minutes looking through a site, gives their honest feedback, and then moves on to the next task to get paid for.
14. Zeerk
Zeerk is a website where people can sign up for small tasks like surveys or assisting with graphic design, marketing, Pinterest, SEO, and other online tasks. Jobs on Zeerk typically pay between $4 and $200.
You can also get paid on Zeerk for watching advertisements and videos.
Zeerk pays out via PayPal, direct bank transfer, and gift cards.
15. Respondent
Respondent is a user-testing website that pays people to do exactly that – test things. This platform connects people with companies for market research and user testing. You can also earn money by sharing your opinions in surveys and experiences on various topics.
Once your account is set up, you can look for different studies or surveys and even filter these jobs out based on your location, interests, and other criteria.
If you find a study you like, apply for it. If you qualify for the study, you’ll be invited to participate and have all the details and instructions sent to you.
16. Scribie
Scribie is a website that pays people to transcribe all kinds of things like lectures, conference calls, YouTube videos, and documentaries. To make money with Scribie, you first need to pass a transcription test on their website. This test involves transcribing an audio clip. Accuracy and formatting are very important here, so be aware of that.
If you pass the transcription test, you’ll then be able to look for job opportunities on the platform.
Scribie typically pays between $5 to $25 per audio hour, and the pay depends on how hard the task is that you are doing. For example, easy-to-understand audio files with high-quality audio will pay less than audio that is hard to understand or has poor sound quality.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
17. Upwork
Upwork is a freelance platform where you can find all kinds of jobs.
I’ve personally found work through Upwork and have found it to be high-paying as well (as long as you find the right jobs).
You can find jobs in topics like graphic design, making websites, digital marketing, virtual assisting, and more. Jobs are posted all the time and share important information like pay, time needed, etc.
With Upwork, it’s important to build a strong profile to make you stand out from other people. Your profile should include relevant work history and even examples of your past work. For example, if you’re a website designer, you may want to show images of websites you’ve designed.
You can even get people to review you on your Upwork profile, even if they don’t actively use Upwork themselves. These reviews will really make you stand out from the crowd.
18. ySense
ySense is similar to sites like Swagbucks in that you can make money by filling out surveys, trying out new products or services, signing up for websites, and watching videos. Ysense also has a daily checklist of different tasks you can do to make extra money.
You can get paid via PayPal, gift cards, and direct bank transfers, so there are many options for payment.
19. Slice the Pie
Slice the Pie pays you for answering questions with your honest opinion. You’ll review things like music, clothing, and other creative content.
To get started, you’ll need to create a profile on Slice the Pie and share basic information about yourself as this will help Slice the Pie determine what kind of tasks to assign you.
This platform primarily focuses on reviewing music, so you may get assigned jobs where you listen to music and review it. The more thoughtful and specific your answer is, the higher the rating you’ll get, which can help you land more jobs.
Recommended reading: 11 Best Ways To Get Paid To Listen To Music
20. InboxDollars
InboxDollars pays you for completing micro tasks like filling out surveys, shopping, and playing games.
InboxDollars works by companies paying InboxDollars for consumer input. So the company will have a survey that they want people to fill out, InboxDollars will list this survey on their site, and users will fill it out with their honest opinions.
Most surveys pay between $.50 and $5 and take anywhere from 3-25 minutes to complete. Some surveys pay $10 and $25 if you match the demographic they are looking for.
InboxDollars has paid out over $80 million to users for doing different tasks, and they are well known in the industry.
You can sign up for InboxDollars here.
Frequently Asked Questions
Below are common questions asked about using micro job websites to make extra money.
What is a micro task website?
A microtask website is a platform where you can complete small tasks and get paid. Tasks may include data entry, surveys, transcription, image tagging, testing apps, playing games, and answering surveys. Microtask websites are used by both small and large companies to outsource work.
What is the best micro job site?
There are many microtask sites out there. The best microtask website will depend on the skills you have and the type of tasks you enjoy doing, along with the payment methods you prefer, and the availability of work in your region. The most popular micro job sites include Amazon Mechanical Turk, Swagbucks, Freecash, Fiverr, and Clickworker.
Is microtasking legit? Is microtasking worth the time?
Microtasking is generally legitimate and many reputable platforms are looking to fill real micro jobs. However, there are some important things to know and realize.
For example, there are more well-known and reputable microtask websites to choose from such as Amazon Mechanical Turk, Freecash, Swagbucks, and Clickworker. For others, I recommend that you read reviews of whichever microtask website you’re choosing to see what others have to say about the platform, such as looking at reviews on Trustpilot.
It’s also important to know that the pay for micro tasks is usually low and earning a steady income from this tends to require a lot of effort and time.
Overall, microtask sites can be worth it if you’re looking for flexible, low-commitment work, but it might not be suitable for your primary method of income or if you are looking to make a lot of money.
How much money can you make with microtask websites?
While you most likely can’t get rich with microtask websites, you can earn a few dollars to around $20 an hour with microtask websites (sometimes more!). How much you earn depends on which microtask website you choose, your skills, the time you dedicate to the task, and your efficiency. I do think it’s important to focus on higher-paying tasks to make the job worth your while.
Best Micro Task Websites To Make Money – Summary
I hope you enjoyed my article on the best microtask websites to make money.
If you’re looking to make extra money by completing micro tasks like surveys, watching videos, signing up for offers, and more, this might be a good side hustle for you.
For most of these micro job sites, most of the options are for online micro jobs, which is great if you want to work from home because you just need an internet connection and a laptop.
I have been paid for micro tasks many times over the years, and I think it can be a good, flexible way to make money from home.
Are you interested in making money with the best micro job sites?
If you’ve always dreamed of opening your own business, now may be the time. The entrepreneurial spirit is thriving in the U.S. as historic numbers of Americans start their own companies. In 2023, a record 5.5 million new business applications were filed, according to the U.S. Census Bureau. The trend started in 2020 during the pandemic and has accelerated ever since.
There are many reasons why new business is big business today. For some individuals, the allure of running their own enterprise is a motivation too strong to resist. Others see opportunity created by changing consumer tastes and needs. For yet other people, starting a business may be a way to start over after a job layoff.
Small businesses are the backbone of the U.S. economy, employing 46% of the workforce, according to the Small Business Administration (SBA). But of course, a new business needs to stay in business. And one of the key factors that can help determine its success: Location, location, location.
So then, where is the best place to start a business? In what cities can a new business not only find its footing but go on to flourish?
To discover the answer, SoFi looked at the 50 largest cities across the U.S. with populations of 500,000 or less, and ranked them on eight different criteria, including annual business applications, average cost of office space, unemployment rates, and cost of living. We assessed the criteria for each city on a 10-point scale for a possible total score of 80 points. (See below for the complete details about our methodology.)
What we found was that while businesses are starting nationwide, certain cities across the country seem to be particularly beneficial for new businesses. Read on to learn the 10 best cities to start a business in the U.S.
Key Points
As SoFi analyzed the data about each city, these important findings stood out:
• The South is a hotspot for new businesses. Three of the top 10 cities on our list are in Florida, and all score high in self employment. Plus, Florida has increasing numbers of businesses owned by underrepresented groups. Atlanta, the Number 3 city overall, has a large population of working age people and ranks high for new business applications.
• Cold-weather cities are offering new businesses a warm welcome. Minneapolis clinched the Number 2 spot on our list, and St. Paul, Minnesota and Madison, Wisconsin scored in the top 10. All three have large populations of working age people.
• Texas is poised to become a new-business powerhouse. The Lone Star State has 2 of the top 10 cities on the list — Plano and Irving. Younger people are gravitating to Texas, giving new businesses in these cities plenty of working age adults to employ.
Our Findings
Reviewing the entire list of cities in the SoFi analysis reveals some important, even surprising, information for aspiring business owners. For instance, Miami is the city with the most new business applications and highest level of self employment, while Witchita, Kansas, offers the best prices for office space, and Cleveland has the lowest cost of living.
Check out how other top cities rank when it comes to opening a new business.
Ranking
City
Walkability Score
Cost of Living Score
Office Space Cost Score
Household Income Score
Unemployment Score
New Business Score
Self-Employment Score
Working Age Score
Total Score
1
Miami, Florida
8.85
3.74
0.44
4.46
5.14
10.00
10.00
9.50
52.13
2
Minneapolis, Minnesota
8.16
4.55
4.60
6.21
4.73
3.17
9.71
10.00
51.13
3
Atlanta, Georgia
5.52
4.14
2.65
6.32
4.05
9.75
7.88
9.99
50.30
4
Plano, Texas
4.71
3.43
3.79
8.60
6.22
4.26
8.68
9.21
48.89
5
St. Louis, Missouri
7.59
5.45
5.27
4.31
4.73
3.55
8.22
9.36
48.48
6
St. Paul, Minnesota
8.16
4.85
5.36
5.69
5.27
2.50
6.98
9.25
48.06
7
Orlando, Florida
4.71
4.44
2.88
5.39
5.14
7.05
8.66
9.74
48.01
8
St. Petersburg, Florida
4.94
4.75
3.23
5.72
5.95
5.62
8.77
8.99
47.97
9
Madison, Wisconsin
5.75
4.19
5.10
6.09
7.30
2.31
6.61
9.99
47.34
10
Irving, Texas
5.17
4.60
5.36
6.24
5.81
4.57
5.90
9.31
46.97
11
Lincoln, Nebraska
5.06
5.05
5.79
5.52
6.62
1.94
7.60
9.14
46.71
12
New Orleans, Louisiana
6.67
4.65
4.71
5.10
2.97
5.32
7.85
9.04
46.30
13
Jersey City, New Jersey
10.00
2.78
0.00
7.41
5.00
3.89
7.35
9.86
46.29
14
Lubbock, Texas
4.48
5.35
5.49
4.78
6.35
2.36
8.09
9.34
46.25
15
Omaha, Nebraska
5.52
5.15
5.59
5.71
5.81
2.85
6.58
8.89
46.10
16
Pittsburgh, Pennsylvania
7.13
5.20
4.28
4.90
5.41
2.43
6.61
9.63
45.58
17
Lexington-Fayette, Kentucky
3.91
4.90
5.69
5.38
5.14
2.86
8.31
9.20
45.39
18
Colorado Springs, Colorado
4.14
3.99
4.94
6.43
5.00
4.11
7.61
9.10
45.32
19
Virginia Beach, Virginia
3.79
4.14
4.86
7.12
6.22
3.84
6.12
8.94
45.04
20
Arlington, Texas
4.37
4.70
5.26
5.83
5.14
3.58
6.44
9.21
44.52
21
Tulsa, Oklahoma
4.48
5.45
5.53
4.61
4.46
3.21
7.75
8.80
44.30
22
Gilbert, Arizona
3.33
3.33
2.71
9.37
6.08
3.83
6.65
8.85
44.16
23
Santa Ana, California
7.70
2.27
3.94
6.85
5.27
2.99
5.56
9.42
44.01
24
Reno, Nevada
4.60
3.79
4.41
6.64
5.14
3.55
6.72
9.10
43.95
25
Aurora, Colorado
4.94
3.84
4.40
6.40
5.14
3.77
6.19
9.24
43.91
26
Durham, North Carolina
3.45
4.70
3.63
6.08
5.54
3.61
7.41
9.44
43.85
27
Long Beach, California
8.39
2.07
2.18
6.43
4.05
3.46
7.59
9.60
43.77
28
Chandler, Arizona
4.02
3.59
4.40
8.08
5.81
3.83
4.79
9.20
43.72
29
Anaheim, California
6.44
1.82
4.70
7.20
5.27
2.99
5.88
9.24
43.55
30
Corpus Christi, Texas
4.60
5.25
6.11
5.21
5.14
1.94
6.37
8.85
43.47
31
Tampa, Florida
5.75
4.60
0.23
5.43
4.86
5.61
7.43
9.54
43.45
32
Buffalo, New York
7.70
5.66
6.01
3.76
3.92
2.02
4.90
9.04
43.00
33
Irvine, California
4.94
0.00
2.04
10.00
5.41
2.99
7.89
9.72
42.98
34
Oakland, California
8.62
0.81
0.03
7.68
4.46
2.43
9.40
9.44
42.86
35
Wichita, Kansas
4.02
5.35
6.45
4.94
5.00
2.50
5.75
8.78
42.79
36
Honolulu, Hawaii
7.59
0.66
2.98
6.73
6.35
2.46
7.24
8.74
42.74
37
Raleigh, North Carolina
3.56
4.39
2.40
6.40
5.95
3.95
6.32
9.69
42.65
38
Henderson, Nevada
3.45
4.04
3.55
6.94
4.32
4.45
7.21
8.33
42.29
39
Cincinnati, Ohio
5.63
5.20
6.06
4.00
3.38
3.28
5.20
9.50
42.25
40
Fort Wayne, Indiana
3.68
5.45
6.19
4.74
4.73
2.67
5.83
8.52
41.81
41
Greensboro, North Carolina
3.33
5.30
5.16
4.48
4.19
3.55
6.57
9.20
41.78
42
Anchorage, Alaska
3.56
3.38
2.40
7.79
5.27
2.83
7.05
9.14
41.42
43
Toledo, Ohio
5.29
5.61
6.28
3.69
2.70
2.75
6.25
8.72
41.29
44
Riverside, California
4.94
3.13
4.68
6.79
4.46
2.34
5.33
9.44
41.11
45
North Las Vegas, Nevada
3.91
4.55
4.50
5.84
3.24
4.45
4.11
9.04
39.63
46
Chula Vista, California
5.29
2.12
2.66
8.29
1.62
2.57
6.95
9.14
38.65
47
Cleveland, Ohio
6.55
5.81
5.63
3.03
0.00
3.77
4.87
8.98
38.64
48
Newark, New Jersey
8.74
4.24
3.11
3.78
1.22
4.45
3.89
9.11
38.53
49
Stockton, California
5.06
3.69
5.22
5.82
3.38
2.11
4.44
8.81
38.53
50
Bakersfield, California
4.25
3.89
5.39
6.00
3.51
1.73
4.57
8.61
37.97
The Top 10 Cities to Start Your Own Business
The best cities for new businesses tend to be in the South and Midwest, our research found. But no matter where they are located, each of the cities in our top 10 has attributes that make them great locations for aspiring business owners.
1. Miami, FL
Score: 52.13
This vibrant metropolis combines the perks of big-city life, such as an exciting food and nightlife scene and renowned museums and art galleries, with beautiful beaches and warm, sunny weather. Miami’s population has increased steadily in recent years, making it one of the fastest growing cities in the country. And tourists from around the world flock to this oceanside oasis. In short, there are endless opportunities — and customers — for new business owners in Miami.
In SoFi’s analysis, Miami received top scores for new business applications and the number of self-employed individuals. It also rated highly for walkability and its large working-age population. Not only that, prospective business owners in Miami may be able to take advantage of small business grants in Florida that can help with start-up costs.
2. Minneapolis, MN
Score: 51.13
With its friendly midwestern vibe and cosmopolitan charm, Minneapolis has been experiencing population growth since the pandemic. Despite the cold winters, residents say it offers a good quality of life, access to nature, sporting events, arts and culture, and more. The city is also seeing a surge in new housing and economic development.
In the SoFi study, Minneapolis received a top score for its large working-age population. It also got high marks for the number of self-employed residents and the city’s walkability. Another potential selling point for entrepreneurs: The state of Minnesota works to cultivate small businesses, offering assistance and partnerships through its Office of Small Business and Innovation.
3. Atlanta, GA
Score: 50.30
Atlanta is another one of the fastest-growing metro areas in the country, according to Census Bureau data. The city has seen a boom in businesses opening and relocating there, from major corporations to smaller companies. Atlanta’s lifestyle amenities have flourished as well, making the city a draw for its vibrant entertainment offerings, diverse restaurants, and sporting events.
It’s no wonder then that Atlanta has a robust population of working-age individuals, according to SoFi’s research. It also got a high score in our analysis for new business applications. For entrepreneurs, the city has support networks, incentives, and small business loans that make it an appealing place to set up shop.
4. Plano, TX
Score: 48.89
New businesses are popping up across Plano, making it a welcoming community for those ready to launch their own companies. Located less than 20 miles from Dallas, the city is a family-friendly place to live with easy access to a major metro area. People are drawn to Plano’s parks, cultural events, and restaurant offerings — something new business owners can both enjoy personally and benefit from professionally.
SoFi’s research found that Plano has a large working-age population and a high household income. It also ranks near the top of the list for self-employment. Plus, small business grants in Texas can make Plano a good choice for new business owners.
5. St. Louis, MO
Score: 48.48
Located on the Mississippi River and known for its iconic Arch, St. Louis is actively courting new businesses through incentive programs, tax credits, and enterprise zones. The city has a vibrant start-up scene, with business incubators and accelerators. St. Louis, which boasts a diverse culture, historic neighborhoods, and a fairly affordable cost of living, is a top area for job growth, according to recent data from the Federal Reserve Bank of St. Louis.
Indeed, SoFi’s report found that St. Louis gets high marks for its large working-age population, self-employment score, and household income.
6. St. Paul, MN
Score: 48.06
The state capital of Minnesota, and the other half of the famed “Twin Cities” (along with Minneapolis, the Number 2 city on our list), St. Paul is a mid-sized metropolis with a youthful vibe. There are a number of colleges and universities here, giving the city’s employers access to skilled graduates. In our research, the city ranked high for its large working-age population. In addition, St. Paul offers a number of resources for new businesses, including financial and technical assistance.
7. Orlando, FL
Score: 48.01
Home to Disney World and Universal Studios, among many other theme parks, Orlando is not only a coveted tourist destination but also a cosmopolitan city with a strong arts and cultural scene, good restaurants, and a bustling nightlife.
It also has a variety of employment opportunities to attract workers: Orlando is filled with big companies, such as AAA and Darden Restaurants, and it’s a growing technology hub. As a result, the city has a large working-age population, according to SoFi’s analysis. Orlando is welcoming to new businesses and offers many incentives to entrepreneurs.
8. St. Petersburg, FL
Score: 47.97
This Gulf Coast city is so beloved for its weather that it’s known as Sunshine City. St. Pete is appealing to employees and business owners alike for its working and lifestyle opportunities. Here, you’ll find pristine sand beaches and a walkable city with a dynamic business community. Companies like Raymond James and HSN are located in the city, as are a growing number of new businesses.
St. Petersburg has a booming working-age population and it scores high marks in self employment, the SoFi report found. It also offers tax benefits and incentives to new businesses.
9. Madison, WI
Score: 47.34
This state capital was recently rated the sixth best city in the U.S. to live in by U.S. News & World Report, thanks to its quality of life. Madison has a hot job market and it’s a hub for companies in technology, healthcare, and manufacturing. As a college town — the University of Wisconsin-Madison — it also has a diverse population and a dynamic downtown filled with boutiques, restaurants, bars, and coffee shops.
In SoFi’s report, the city rated highly for its working-age population. The unemployment rate in Madison is fairly low, which also makes it desirable. The city offers programs to help small businesses start and succeed, and there are small business grants in Wisconsin entrepreneurs can explore.
Recommended: Unemployment Rates by City
10. Irving, TX
Score: 46.97
Located near Dallas, Irving combines urban amenities with a suburban feel. It has many perks of city living, such as live music venues, ballet and symphony, art, movie theaters, and restaurants. For nature lovers, Irving has a number of rivers and lakes weaving through it, along with parks and nature trails.
Irving’s economy is strong — major corporations in industries such as technology, finance, and consumer goods are located there. SoFi’s research found that the city has a large working-age population, which can be beneficial to new business owners. Irving also offers incentives and resources for small businesses.
Tips for Small Business Owners
If you’re ready to start a small business, these are some important steps to take to help your venture become a success.
• Choose the right location for your business. Do your research to pick an area that best suits your business needs. Consider whether the area has the type of customer you’re targeting, a robust workforce, and real estate and operating costs you can afford.
• Check out local resources, networks, and programs. Does the location you’re considering offer incentives and tax credits for new and/or small businesses? The cities on our list do, as do many others. Be sure to check with the chamber of commerce, the city’s SBA office, if there is one, and local economic development centers and business incubators.
• Find the right financing. The city or state may offer grants or funding for new businesses — do your homework to find out if they do. Also investigate grants and funding programs from the SBA.
As you’re seeking financing for your small business, you may also want to consider a loan to help get your venture off the ground.
When you’re looking for a loan for your new business, SoFi can help. On SoFi’s marketplace, you can shop top providers to access the capital you need. Find a personalized small business loan option today within minutes.
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.
Methodology
To determine the best cities to start a business, SoFi looked at the largest 50 cities across the U.S. with populations of 500,000 or less. (“Population” refers to the city proper and is separate from surrounding urban areas.) SoFi analyzed eight key contributing factors, each assessed on a 10-point scale, in each city for an overall potential score of 80. These factors included:
Walkability
Walkability was determined by reviewing statistics from Walk Score, which were given on a scale of zero to 100. The higher the Walk Score, the higher a city’s walkability score.
Cost of Living
Using Area Vibes, SoFi reviewed the cost of living score — an index score compared to the national average. The lower the cost of living score in a city, the better the score we assigned.
Average Cost of Office Space
Using LoopNet, SoFi assessed all 50 cities using the following filters:
• Type of space needed: office, retail, or restaurant
• Number of employees: 10 (which equaled 1250 to 4000 sq. ft. of space)
SoFi averaged the price per square foot per year for the newest 10 results in each city. The higher the average cost, the lower the score.
Median Household Income
Using Data USA, SoFi assessed the median household income for each city. The higher the median income, the higher the score.
Unemployment Rates
Using Area Vibes, SoFi assessed the unemployment rate for each city. The lower the unemployment rate, the better the score.
Annual Business Applications
Using Census Burea data SoFi calculated the percentage of people who applied for a small business loan in the county where each city is located. The higher the percentage of new business applications, the higher the score.
Percentage of Self-Employed People
Using Census Burea data, SoFi calculated the percentage of people in each city who had self-employment income. The higher the percentage, the higher the score.
Working-Age Population
Using Census Burea data, SoFi calculated the percentage of people in each city who were between the ages of 15 and 64. The higher the percentage, the higher the score.
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
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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Do you want to get paid to give advice? A few years ago, I never would have thought that giving advice could turn into a way to make extra money. But after starting my website and sharing what I knew about personal finance, I quickly realized that I could make extra income. It’s amazing how…
Do you want to get paid to give advice?
A few years ago, I never would have thought that giving advice could turn into a way to make extra money. But after starting my website and sharing what I knew about personal finance, I quickly realized that I could make extra income.
It’s amazing how your skills, whether they’re in medicine, cars, law, tech, relationships, or anything else, can become a profitable business. I love helping others and, at the same time, earning money from what I enjoy!
In this article, I’ll go over:
Ways to get paid to give advice
Type of professionals that get paid to give advice
How to get paid giving advice online
How To Get Paid To Give Advice
Here’s a list of 16 ways to get paid to give advice.
1. JustAnswer
JustAnswer is a site that pays people to give advice and answer questions in different fields such as legal, tech, medical, veterinary, antique appraisers, and more.
If you’re an expert in a field that people usually have questions in, you can monetize your expertise on JustAnswer by sharing your expert opinion.
You may be wondering what kind of questions are asked on JustAnswer. Here are a few examples:
How much is my antique worth?
How can I lower my business taxes this year?
What can I do if a sinus infection won’t go away?
How do I fix my car’s alternator?
To get started on JustAnswer, you need to go through an application process (with a background check) and get verified that you’re an expert by providing proof of qualifications like degrees, certifications, or other relevant experience.
Recommended reading: 21 Ways To Get Paid To Answer Questions
2. Start a blog
I run a personal finance blog and share advice all the time (and I get paid for it!). Starting a blog is one of the best ways to share your expertise while creating a reliable source of income.
Sharing your expertise and knowledge with a blog is a great way to diversify your income. You can make money blogging by:
Affiliate marketing (where you get a commission when people make purchases through your links)
Advertising revenue
Sponsored content
Selling services like coaching
Selling products like books or courses
One of the keys to successful blogging is choosing a niche or topic that you’re both passionate about and that has an audience who wants to learn more.
Here are some popular blog niches you can try, depending on your expertise:
Education and career – If you have experience in teaching or career coaching, this niche can focus on helping others with their career goals, job interviews, or study techniques.
Personal finance – Share tips on budgeting, saving, investing, and side hustles. Many people are looking for ways to improve their finances.
Health – Topics like fitness, nutrition, mental health, and self-care are helpful.
Travel – If you love traveling, you can start a travel blog, sharing tips on budget travel, destination guides, family travel, or even remote work opportunities.
Parenting – This niche covers a wide range of topics, from newborn care and toddler tips to advice for teenagers. You can also write about balancing parenting and work or homeschooling.
DIY and crafts – Whether it’s home improvement, crafting, or upcycling projects, this niche is popular among creative individuals looking for inspiration and guidance.
Lifestyle – A lifestyle blog covers several areas like home decor, fashion, personal growth, and productivity.
Tech – If you’re knowledgeable about tech, you can give advice on the latest gadgets, software, app reviews, and even tutorials for beginners.
Beauty – This is a highly popular niche where you can share makeup tips, skincare routines, and product reviews.
Relationships – Help readers improve their relationships or personal growth by sharing advice on communication, self-improvement, or career development.
You can learn how to start a blog in the free How To Start a Blog Course.
3. Create an online course
If you’re looking for a passive way to make money by giving advice, creating an online course is a great way to do so.
My sister runs a popular online course and has done very well with it. Over the years, she has helped thousands of people with her business advice for website owners.
You can create a course on topics such as:
Meal planning and prep – Teach people how to plan meals, prep ingredients, and create healthy, budget-friendly meals.
Parenting tips – Help with topics like raising toddlers, managing screen time, or improving sleep.
Home organization – Help people declutter, organize their homes, and create better living spaces.
Fitness and wellness – Share workouts, stretching routines, or mindfulness practices like meditation or yoga.
Photography basics – Teach people how to use their camera or phone to take better photos. I recently saw a course teaching parents how to take better family photos with their phone, and it looked so helpful!
Gardening for beginners – Guide people through starting a garden, caring for plants, and growing their own fruits and veggies.
DIY home projects – Sell lessons on simple home improvement or crafting projects, like building furniture or making home decor.
Travel planning – Share tips on planning budget-friendly vacations, packing efficiently, and finding fun destinations.
Pet care – Teach new pet owners how to care for their animals, including training, nutrition, and grooming tips.
You can sell your online course on your website or course websites like Udemy, Skillshare, or Teachable (Teachable is my favorite course platform).
4. Answer surveys
You won’t get rich by answering surveys, but it’s an easy way to make money by giving your opinion.
Market research companies pay survey sites to find users to complete surveys for them. These paid online surveys help companies make better products and services.
Here are some of the recommended survey companies to sign up for:
American Consumer Opinion
Swagbucks
Survey Junkie
InboxDollars
Branded Surveys
Recommended reading: 12 Best Online Surveys For Gift Cards
5. User Interviews
User Interviews stands out from most market research companies because, rather than paying for typical online surveys, it specializes in focus groups.
This means they seek more detailed feedback from participants on different products and companies. Their studies are usually conducted via phone or video interviews, with the average study paying over $65.
Large companies like Spotify, Pinterest, GoPro, and Amazon use User Interviews to collect market insights. The platform runs over 2,000 studies each month, and last year alone, more than 77,000 participants were paid.
Michelle (my sister as well as the owner of this blog) participated in a focus group through User Interviews and earned $400 for just one hour of work. She said it was simple, and the entire process was completed online through a video call.
You can click here to sign up for free with User Interviews.
6. Financial advisor
Financial advisors are trained professionals who give financial advice to clients. You can make money as a financial advisor by charging fees for your services, receiving commissions on financial products, or both.
A financial advisor may help with financial planning, retirement, wealth management, insurance, investments, savings, and more.
To become a financial advisor, you need a combination of education and certifications. To get started, you’ll need a bachelor’s degree in finance, economics, accounting, or related field. You’ll also need an internship or entry-level job in finance, banking, or financial planning to get hands-on experience. Most importantly, you’ll need to get certified as a Certified Financial Planner and pass the licensing exams.
As of this writing, the average Certified Financial Planner’s salary is between $66,000-$122,000 a year.
7. Business consultant
One way to make money by giving advice is to start a consulting business and become a freelance consultant.
A business consultant is someone who uses their expertise to help companies improve their business, income strategy, and profitability.
Consultants get paid either by hourly rate, project-based fees, or retainer agreements. Business consultants can also make money by conducting training sessions and workshops for more money.
Business consultants are in high demand as businesses are always looking for ways to improve and make more money.
8. Personal trainer
If you love fitness and working with people, you can try making money as a personal trainer.
Getting a NASM personal trainer certification, which is one of the top certifications in the field is helpful. This is where you’ll dial in form, workout routines, and many other important fitness-related skills.
As a personal trainer, you can make money with one-on-one sessions, group classes, and even online training programs. Trainers typically charge per session or have package deals for multiple sessions. You can also make money by creating workout programs that people can purchase online.
9. Online coach
You can make money working as an online coach through digital platforms.
Some areas that you could coach on include:
Life coaching
Relationship coaching
Business coaching
Fitness coaching
Career coaching
As an online coach, you can make money with one-on-one coaching sessions, group coaching, or self-paced courses that people can buy directly from you. You can charge people one-time fees, package deals, or ongoing membership subscriptions for continued access to your guidance.
To grow your income, you can use social media platforms to build your brand and get people to trust you, such as by sharing helpful free tips in graphics or captions.
10. HelpOwl
HelpOwl is a platform where you can get paid to give advice online to individuals seeking help with different topics.
To get started with HelpOwl, register on the website and set up your profile. Your profile should showcase your expertise, skills, qualifications, and areas of advice.
You can also determine your fee structure for providing advice whether it’s per session or question.
11. Quora
You’ve likely heard of Quora since it’s a goldmine for getting any kind of question answered, but did you know you can make money with Quora?
Yes, it is possible to make money on Quora through a few different strategies.
Quora has a partner program that lets you make money by asking questions that generate high traffic and engagement to their website. You can get paid based on the ad revenue generated from the questions you ask.
Quora’s partner program is great for anyone who wants to become an online advice giver as you can share your honest opinion or answer a question in a simple comment.
12. Start a podcast
You can make money selling advice through a podcast.
This method of selling advice takes a lot of work but can be worthwhile if successful.
If you want to start a podcast to give advice, there are many great topics to choose from. You could talk about personal finance, relationship advice, or career coaching. Health and wellness podcasts are popular too, where you can cover fitness, mental health, and self-care. Parenting tips for new parents, small business advice, or life coaching are also good ideas. You could even share tech help, home improvement tips, or legal advice.
Whatever you pick, your podcast can help people improve their lives.
Once you build up your following, you can make money with ads and different sponsorships on your podcast episodes, along with affiliate links.
13. Start a YouTube channel
Starting a YouTube channel is another great way to get paid for giving advice, especially if you enjoy talking on camera.
I turn to YouTube all the time when I’m looking for answers and advice. It’s a helpful resource where I can find detailed explanations on just about any topic. Whether I need tips on personal finance, blogging, or even tech solutions, there’s usually a video that walks me through the steps. I love how I can watch experts in action, and it’s a great way to learn something new quickly and visually.
With YouTube, you can create videos in your area of expertise and build an audience of subscribers who value your knowledge. Whether you’re skilled in personal finance, cooking, fitness, or any other niche, there’s probably an audience looking for advice in a YouTube video.
To make money on YouTube, you can monetize your channel through:
Ads: Once you reach YouTube’s eligibility requirements, you can earn money from ads that play during your videos.
Sponsorships: Brands may pay you to promote their products or services in your videos.
Affiliate marketing: Include affiliate links in your video descriptions, earning a commission when viewers make purchases through your links.
Selling products or services: You can also use YouTube to promote your own products, courses, or consulting services.
Consistency is key on YouTube, so creating valuable, engaging content that resonates with your audience will help grow your channel and income over time.
14. Share advice on Fiverr
Fiverr is a great spot to sell your advice if you’re looking for an online job.
I searched on Fiverr and found 2,200 listings where people were offering to give advice. The topics included things like relationship advice, tax advice, fantasy football advice, blog advice, business advice, and more.
You simply create a profile and a listing where you share the type of advice you specialize in.
15. Website testing (such as with UserTesting)
Website testing is a simple way to make money by sharing your advice and providing feedback on the website user experience.
There are several well-known website testing sites including UserTesting, TryMyUI, and Userlytics. These sites connect you with people looking for user feedback on their websites and apps.
By using website testing platforms, selling expert advice, and building a strong reputation, you can successfully make money through website testing and sharing your insights.
16. Mystery shopping
Mystery shopping is a fun way to give your advice and feedback on a customer service experience, product, or store operations.
As a mystery shopper, your feedback tells companies how well their employees are treating customers, if customers are happy, and if any operational problems need fixing.
There are three different ways to make money mystery shopping including:
Cash and reimbursement (you’ll get paid to do the mystery shop, plus get the service/product for free).
Cash payment (an example would be a phone call mystery shop when you don’t buy anything).
Reimbursement (an example would be a restaurant secret shop – these typically don’t pay any money except for receiving free food).
BestMark is one of the biggest mystery shopping companies with a great reputation, and they have many different kinds of mystery shopping jobs available. Ath Power Consulting is another well-known mystery shopping company that has over 500,000 secret shoppers. They complete over 10,000 mystery shops each month, and they work with many popular companies.
Recommended reading: Want To Make An Extra $100 A Month? Learn How To Become A Mystery Shopper
Frequently Asked Questions
Below are answers to common questions about how to get paid to give advice.
Can you get paid for giving advice?
Yes, you can get paid for advising in many ways such as consulting (people pay for advice on specific topics), coaching (people paying for expertise in a certain area, like business, relationships, career, and life), and content creation (monetize your advice through blogs, podcasts, social media).
What type of professionals make money by giving advice?
The kinds of professionals getting paid to give advice include:
Consultants
Coaches
Financial advisors
Legal advisors
Counselors
Health experts
Tutors
Real estate agents
Educators
Creative professionals
Entrepreneurs
Public speakers
As you can see, the list is endless. By using the skills and knowledge you have, you can likely get paid to provide practical and personalized advice to people.
Can I sell life advice?
You can sell life advice if you have valuable life experiences that other people find helpful to learn from. People tend to hire life coaches, mentors, and advisors to help them with life challenges, achieve goals, and find purpose in their lives.
You can make money selling life advice in several ways including:
One-on-one coaching sessions
Online courses
Books
Blogs
Podcasts
Social media accounts
It’s important to identify your niche and who you want to help. For example, your target audience may be women looking for a career change or people who need help with relationship advice. Focusing on a specific niche will help you stand out from others and market your services more efficiently.
How can you get paid to give advice online?
There are many ways to get paid to give advice from your laptop. JustAnswer is a great way to get started getting paid to give advice and connect you to people seeking help in your field.
If you’re looking for a passive way to make money giving advice, create an eBook, course, blog, or podcast. You can make money by selling your products, advertising, using affiliate links, or creating sponsored content.
Can you get paid to give relationship advice online?
You can get paid to give relationship advice and dating advice by working as a relationship coach through platforms like BetterHelp (as a therapist) or via your own website. You’ll need specific credentials to work on sites like BetterHelp and Talkspace, whereas having a relationship blog doesn’t require certifications, but may be harder to make money at the beginning of starting your business.
How To Get To Give Advice – Summary
I hope you enjoyed this article on how to get paid to give advice.
If you have knowledge in a specific area, you can turn that into a business by giving advice. Whether it’s in fields like medical, legal, tech, personal finance, or relationships, there are many ways to get paid for your skills.
Plus, you can do this either part-time or full-time, so you can choose what kind of hours you want to work.
A former Housewives’ beautiful Bridgehampton home is on the market — and it comes with bright and elegant interiors, a cute little guest cottage, and a prime location in the Hamptons.
Owned by TV personality, RHONY alum, and self-made millionaire Bethenny Frankel, the property landed on the market last week with a $5,995,000 asking price. Douglas Elliman’s Noble Black and Erica Grossman hold the listing.
Lovingly renovated by Bethenny’s expert hands — who’s no stranger to flipping homes for a nifty profit and even had her own real estate show on Bravo, Bethenny and Fredrik, alongside former Million Dollar Listing agent Fredrik Eklund — the Bridgehampton house has about 2,500 square feet of high-end interiors.
It also comes with an equally stylish little guest house and a bunch of outdoor amenities. Let’s take a closer look, shall we?
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Frankel’s longtime home in the Hamptons
The Real Housewives of New York City alum bought the property over a decade ago and has considerably updated the home over the years. RHONY fans might remember it well, as the Hamptons house was shown quite a bit on Frankel’s second stint on the reality show.
She recently upgraded to another Hamptons abode
Earlier this year, local real estate outlet Behind The Hedges revealed that the Skinnygirl Cocktails mogul bought herself another home in the Hamptons. Frankel reportedly paid $5.45 million back in October 2023 for a three-level Southampton home with 4 bedrooms and 3.5 baths.
“I’m at my new house. I am shocked. This is a dream house. It was a find and it was a renovation,” Frankel told her followers at the time, showing off her serene backyard which includes a pool and a spa surrounded by wood decking, all overlooking Shinnecock Bay.
The charming Bridgehampton compound
Promoted as a compound property, the listing consists of a roughly 2,500 sq. ft. main house, a one-bedroom guest cottage, and a backyard oasis (with pool, spa, pool house, and outdoor kitchen), all set amidst meticulously landscaped gardens and next to 40 acres of open field.
The 4-bedroom main house
The shingle-style main house offers approximately 2,500 square feet of elegantly appointed living space on two levels, with a total of 4 bedrooms and 3 full baths.
The interiors show Bethenny’s stylish touches
Expertly renovated by Frankel herself, who owned the property for well over a decade, the house’s interiors are bright and elegant, with large windows and doors blurring the lines between the indoor and outdoor areas.
The updated kitchen has bespoke millwork
The newly renovated chef’s kitchen features custom millwork, high-end finishes, and appliances, and is as bright and airy as the rest of the Hamptons house.
See also: Newly completed, $25M East Hampton house comes fully (and beautifully) furnished — antiques included
The primary bedroom comes with a private sun porch
Upstairs, the primary bedroom with an en suite bath features high ceilings and a private sun porch offering sweeping views of the gardens and fields. The other three bedrooms are also located on the house’s second floor.
Also on the property: a one-bedroom guest cottage
The approximately 600-square-foot guest cottage adds one more bedroom and bathroom to the tally, along with Bethenny’s signature stylish design touches.
The guest cottage has also undergone updates
The guest cottage has also been fully renovated, now featuring high-end finishes throughout its spaces — which include a kitchen, a living room, a washer/dryer, one bedroom, and one bathroom.
Outdoor amenities include a heated gunite pool
Stepping outside we find a range of upscale amenities, including a heated gunite pool, spa and sauna, outdoor shower, and a built-in outdoor chef’s kitchen to take entertaining up a notch.
There’s also a pool house with a half bath
Outdoor amenities also include a small pool house with a half-bathroom. And since it’s so stylish, we couldn’t help but give you a peek inside.
The TV personality’s other homes
While the New York native hangs her hat in Greenwich, Connecticut, she famously maintains pied-à-terres in both New York City and South Florida.
TheReal Housewives of New York alum recently gave fans (and Instagram followers) a tour of her new Manhattan digs, a two-bed, two-bath prewar apartment on the Upper West Side.
Bethenny is a skilled real estate investor
Frankel has a great eye for real estate and has flipped several properties over the years for a nifty profit. This includes a historic Bridgehampton home known as Morning Glory that she sold for $2.3 million, a Soho loft in New York City that banked her $3.995 million, and a glam Greenwich, Connecticut home priced well over $3 million.
She even chronicled some of her real estate ventures on the short-lived Bravo series Bethenny and Fredrik, alongside former Million Dollar Listing New York star Fredrik Eklund. The 2018 series was canceled after one season.
More stories
La Dune, a trophy Hamptons estate fetches $88.48M at auction
17 Celebrities with Swanky Summer Homes in the Hamptons
In the Hamptons, a newly built, modern waterfront home eyes $10.995M sale
Located in the scenic foothills of North Carolina, Hickory is a beautiful place to settle down. For anyone considering a move to this area of North Carolina, Hickory combines affordability with Southern hospitality, making it appealing to a range of people at different stages in life. That said, like any city, Hickory has its own set of advantages and challenges. Below, we’ll break down 13 of the top pros and cons of living in Hickory to help you make the best decision for you.
Hickory at a glance
Walk Score: 28 | Bike Score: 26 Median Sale Price: $319,500 Houses for rent in Hickory | Apartments for rent in Hickory | Homes for sale in Hickory
1. Pro: Affordable cost of living
Hickory has a notably lower cost of living compared to other cities in North Carolina. Housing is especially affordable, with median home prices well below the national average, making it a great place to stretch your budget.
2. Con: Limited public transportation
One downside of living in Hickory is the lack of robust public transportation. Most residents rely on personal vehicles for commuting, which can be an issue if you don’t like getting behind the wheel on a daily basis.
3. Pro: Thriving manufacturing industry
Hickory is a hub for the furniture and manufacturing industries, offering plenty of job opportunities in these industries. The city has a long history in furniture production, and large employers like CommScope and Corning create a steady demand for skilled workers.
4. Con: Fewer options for nightlife
If you’re looking for a lively nightlife scene, Hickory may miss the mark. While there are a few local bars and restaurants that offer evening entertainment, options are relatively sparse compared to larger cities.
5. Pro: Surrounded by scenery
Hickory is surrounded by beautiful natural scenery, including Lake Hickory and the Blue Ridge Mountains. Outdoorsy types can enjoy hiking, boating, and fishing within close proximity to the city, making it a perfect spot for nature lovers.
6. Con: Hot, humid summers
Summers in Hickory can be uncomfortably hot and humid, especially if you’re not a fan of high temperatures. The humid climate may feel especially overwhelming during July and August, particularly for those who prefer milder conditions.
7. Pro: Strong educational institutions
Hickory is home to several well-regarded schools like Lenoir-Rhyne University, making it one of the top North Carolina college towns. The city’s focus on education provides ample opportunities for students and families looking to settle down in a place that prioritizes continuing education.
8. Con: Limited dining options
While Hickory has some fantastic local Southern cuisine, the variety of restaurants offering international flavors is limited. You might find yourself traveling to nearby cities for more eclectic dining experiences.
9. Pro: Close-knit community atmosphere
There’s a strong sense of community in Hickory where neighbors know each other, and people often gather for local events. This tight-knit atmosphere is ideal for those seeking a slower, more personable way of life.
10. Con: Slower economic development in some areas
While Hickory has seen growth in certain industries, others haven’t experienced the same level of development. The economy can feel stagnant in areas outside of manufacturing, leading to fewer job opportunities for people in other fields.
11. Pro: Easy access to larger cities
Hickory is conveniently located near major highways, making it easy to take day trips to larger North Carolina cities, like Charlotte, Asheville, or Winston-Salem. You get the benefits of small-town living while still being close to bigger cities with more options.
12. Con: Fewer entertainment venues
Though Hickory does have a few cultural venues like the Hickory Museum of Art and a community theater, the selection of entertainment options can feel underwhelming. Residents often venture out of town for bigger concerts, shows, or events.
13. Pro: Minimal traffic and easy commuting
Compared to larger cities, traffic in Hickory is minimal, making commuting around town quick and easy. This is a great benefit for people who want to avoid long drives or heavy congestion.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Perhaps the idea of home ownership sounds appealing, but the thought of all the maintenance involved — inside and out — doesn’t sound so great. Dealing with snow removal or tending to your lawn might be the last thing you want to add to your already full plate.
If that resonates, buying a home that has a homeowners association, or HOA, might be the right move. Whether you’re shopping for a condo or a 3-bedroom house in a new development, an HOA could be a valuable thing. These organizations, funded by dues, take care of many of those maintenance responsibilities, run shared facilities (like a pool), and create guidelines (and enforce them) for the community of homeowners.
That said, interacting with an HOA and following its guidelines may not be for everyone. Read on to learn:
• What is an HOA, or homeowners association
• How do HOAs work
• How much are HOA dues
• What are the pros and cons of HOAs
• How will HOA fees impact your costs as a homeowner
What Is an HOA (Homeowners Association)?
An HOA is typically a non-profit volunteer group that manages aspects of homeownership in certain planned unit developments (PUDs), condos, and other housing communities. The HOA collects fees from each member of the community and uses them to handle maintenance duties and amenities. These may include:
• Landscaping and maintenance of walkways and the like
• Pest control
• Maintenance and utilities of shared spaces, such as lounges and pool areas
• Garbage pickup
• Parking
• Security
Another answer to “What is an HOA?” should mention that these associations typically make enforceable rules about the look and feel of the community. There may be guidelines about, say, the size of pets one may own, or the color schemes permissible for a townhome’s exterior. The existence of an HOA will be an important consideration when you are shopping for a place to live and HOA fees need to be built into a homebuyer’s financial plan, just like home loan payments.
Recommended: Condo vs. Townhouse: 9 Major Differences
How Does an HOA Work?
HOAs can be staffed in different ways. They can be run by people owning property within its boundaries, run by a board of directors, or through a similar arrangement, with board designees elected to oversee and enforce HOA rules.
Many HOAs are incorporated, which makes them subject to the laws of the state and may require them to file annual reports with the corporation commission, in order to remain in good standing.
People who purchase properties within an HOA jurisdiction become members of that organization, and they must abide by the rules contained within that organization’s bylaws and Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
HOA rules, fees and restrictions vary. Some bylaws and CC&Rs are strict, while others are looser, typically focusing on how residents must keep properties maintained according to stated specifications. In a planned unit subdivision of single-family homes, for example, rules may include what types of landscaping are permitted, or exterior colors of paint, what kinds of fencing is allowed, and more.
They can include usage rules for common property, such as a pool, and typically outline penalties for rule violations, ranging from forcing a homeowner to comply to fees and, sometimes, litigation.
How Common Are HOAs?
Here are some recent statistics that will help you get an idea of how common HOAs currently are in the U.S.:
• Approximately 75.5 million Americans live in HOAs, cooperatives, or condominium units.
• 30% of all U.S. homeowners live in HOA communities.
• 28.2 million housing units in America are part of HOA communities.
As you see, HOAs are quite popular.
What Is an HOA Fee?
Now that you know a bit about what is a homeowners association, let’s look at those fees they charge. People who buy property in an HOA-governed condo or community usually must pay dues — also known as HOA fees — typically due monthly. These fees help to maintain common areas of buildings, such as lobbies and patios, and perhaps community clubhouses. These fees can cover maintenance on elevators or swimming pools, if applicable, or could be used for landscaping expenses, and so forth. Additional special assessments may be charged for major repairs, such as roof repairs.
Some studies suggest that average HOA fees range from $200 to $400 per month, although they can be as low as $50 and as high as $2,500 or more. It depends on the HOA complex, where it is, what amenities the project maintains, and sometimes on how the individual HOA is managed.
What’s most important when shopping for a new home is that you are clear about what fees would be assessed on your individual unit and whether that fits your budget.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
When Considering an HOA Property
When considering whether or not to buy a property within a homeowners association, it makes sense to understand what you’d be committing to if you bought this property.
To get an understanding of how the organization operates, you can ask the board of directors if you could read minutes from meetings — if you have a real estate agent, they should be able to help you access records. This may give you a good overview of any challenges the organization is facing, and insights into how solutions are brainstormed and implemented.
Questions to investigate can include:
• What are the HOA fees each month? What do they cover?
• If the fees seem low, does it appear as though enough funds are collected to maintain general areas? What about meeting rooms, the gym, pool area, and so forth?
• If the HOA fees are higher than expected, do they seem excessive for what you’d get in return?
• Are homeowners also being charged special assessments to cover other costs? If so, how often and what are they?
• How many units are not paying their HOA fees? What are the consequences for that? Are penalties being imposed?
• If certain units don’t pay their HOA fees, can these unpaid costs be imposed upon other owners to make up the difference?
• If desired, will you be allowed to sublet your unit? Over what term and with what restrictions?
• Are you allowed to have a pet? If so, what restrictions exist? Ask to read a copy of the CC&Rs which is recorded public information.
• Does pending litigation exist against the HOA? If so, of what type? Does it involve, say, damage to one unit, or does it affect the entire organization?
If you have friends or family members who are part of this HOA, consider asking them what they like about living there, and what they don’t. If you have a friend or family member who owns housing under a different HOA, chat with them as well. Their insights can be valuable in regards to what questions to ask and issues to explore before buying.
You can also review the bylaws, which usually share voting rights of members, budget and assessment rules, meeting requirements, and so forth. Check to see what actions can be taken without a member vote — if they include raising assessments or creating rules, this could have an impact on your buying decision.
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Pros vs Cons of HOAs
There are several benefits of buying a property that’s part of an HOA. Consider these upsides:
• Guidelines to help maintain the look of the community, settle issues, and create harmony among residents.
• Enhanced quality of life and property values.
• Maintenance services so homeowners don’t need to do the work themselves or hire freelance help.
That said, there are also possible drawbacks to being part of an HOA. These can include:
• The cost of the HOAs fees can be prohibitively expensive, and the possibility of assessments can be financially challenging.
• Potentially restrictive guidelines that inhibit your freedom over your property (that is, you may not be allowed to have a certain kind of pet or put in solar panels).
• Those who run the HOA may be volunteers vs. skilled real estate professionals, which could lead to inefficiencies.
Can You Afford to Buy into an HOA?
When shopping for a new home or condo, one key consideration is how much you can afford for a house — with the true cost being more than just principal, interest, and homeowners insurance. If you are considering properties that have HOA charges, it’s vital to factor those in to make sure your budget is manageable.
You’ll need a down payment on the home. There are also property taxes, insurance, closing costs (which can run from 3% to 5% of the home’s cost, paid by the buyer and/or seller according to the contract). And there are expenses other than closing costs such as moving expenses, furniture costs, and more that should be considered as you grapple with how much you can afford.
Plus, you might want to have an emergency fund established for unexpected expenses, whether unanticipated housing repairs, or medical expenses, or something else entirely.
To help you figure out that affordable house payment number, you could check out our mortgage calculator.
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What to Know About Mortgages and HOAs
There’s one more wrinkle to the topic of what is a homeowners association and should you buy into one: the impact it may have on securing your mortgage.
When you buy a property that is part of an HOA, you may need additional documentation for your lender. If your bid is accepted, the lender will likely request a homeowners association certification, called an HOA cert for short. This document provides your lender with a snapshot of how the HOA is being run, and may provide information such as:
• How old the project is
• Whether a condominium development was converted from an apartment building or specifically built as condo units
• How many units exist in the project
• How many units are occupied
• How many occupied units are owner occupied and how many are rented to someone else
• How much HOA fees are
• The amount of insurance on the project
If this information is requested, it will likely be reviewed to confirm that this property meets the lender’s loan eligibility guidelines. Because guidelines can vary from lender to lender and loan program to loan program, it makes sense to check with your lender of choice as soon as possible to determine if this financial institution considers your condo to be eligible for financing.
The HOA cert may also be obtained by the escrow/title company and provided to your lender, along with the relevant CC&Rs. This provides insight into any property restrictions and other aspects that may affect a home’s lendability and marketability.
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The Takeaway
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Why do HOAs exist?
Homeowners associations exist to manage and maintain common areas, to enforce community rules, and to collect and manage the finances used for community upkeep. Many people who participate in HOAs expect the association to help enhance their property values.
How much are HOA fees?
HOA fees vary widely based on the amenities offered by the development but most people can expect to pay at least $200 to $300 per month.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Seattle is known as a city of contrasts. With its tech industry, coffee culture, and natural beauty, it attracts loads of newcomers each year. However, it also faces unique challenges that may not suit everyone.
If you’re thinking about moving to Seattle, understanding the city’s pros and cons is essential. Below is a detailed look at what living in Seattle can offer you—good and bad—and what you need to be prepared for.
Seattle at a glance
Walk Score: 74 | Bike Score: 71 | Transit Score: 60 Median Sale Price: $880,000 | Average Rent for 1-Bedroom Apartment: $2,339 Seattle neighborhoods | Houses for rent in Seattle | Apartments for rent in Seattle | Homes for sale in Seattle
1. Pro: Epicenter of tech
Seattle’s job market is booming, particularly in technology, healthcare, and aerospace. Major employers like Amazon, Microsoft, and Boeing are headquartered here, providing high-paying jobs with plenty of opportunities for career advancement. The demand for skilled professionals has created a thriving economy, and even newcomers find it relatively easy to lock down employment.
2. Con: High housing costs
While job opportunities are plentiful, finding housing can be a challenge. Seattle has some of the highest housing costs in the country, whether you’re buying or renting. Popular Seattle neighborhoods like Ballard or Capitol Hill come with steep price tags, and the demand for housing means availability is often limited.
3. Pro: Easy access to nature
Seattle is surrounded by natural wonders. Whether you’re into hiking in the Cascade Mountains, kayaking on Lake Washington, or exploring Olympic National Park, outdoor adventures are never far away. Even within the city, places like Discovery Park and Green Lake provide easy access to nature, making Seattle an outdoor enthusiast’s dream city.
4. Con: Gray skies and persistent rain
Seattle is known for its overcast skies and frequent rain. The city experiences long stretches of cloudy weather, particularly from fall through spring. While it doesn’t typically pour rain all day, the constant drizzle and gray skies can take a toll on your mood. Many people find the gloom hard to get used to, especially if they’re moving from a sunnier region.
5. Pro: Renowned coffee and food culture
Seattle’s food and drink scene is exceptional, especially for coffee lovers. As the birthplace of Starbucks, the city has a deeply ingrained coffee culture, with countless local cafés to explore, like the wildly popular Overcast Coffee. The food scene is equally prolific, offering everything from fresh seafood to globally inspired cuisine. Pike Place Market, in particular, is a favorite destination for locals and visitors alike.
6. Con: Traffic congestion and long commutes
Seattle’s growing population has put a strain on its roadways. Traffic congestion is a significant issue, particularly during rush hours. Even a short commute can become a long ordeal. Public transportation is improving, but many people still find themselves spending a considerable amount of time in their cars or on buses, making commutes a daily frustration for residents.
7. Pro: Expanding public transportation system
Seattle’s public transportation options are growing rapidly. The Link Light Rail is expanding, making it easier for residents to travel between key areas of the city and neighboring towns without relying on a car. The city’s bus system, ferries, and walkability also offer additional ways to get around, making Seattle a more accessible place for those who would rather not get behind the wheel.
8. Con: Parking challenges in popular areas
If you drive in Seattle, parking can be a major headache, particularly in downtown or popular neighborhoods. Parking spots are often limited, and parking fees can add up quickly. Even some of the residential areas have restrictions, requiring residents to obtain permits. This makes owning a car less convenient for those who need to rely on driving frequently.
9. Pro: Emphasis on education
Seattle is home to some of the best educational institutions in the country, like the University of Washington and Seattle University. These schools offer academic opportunities and a thriving campus culture that extends into the community, making Seattle one of the best Washington college towns.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.