Solar net energy metering in California (NEM 3.0) is a billing mechanism through which utility companies compensate customers (via credits on their electric bill) for electricity their residential solar systems send to the grid. NEM can make solar more affordable, but some state NEM policies make it less beneficial.
California is one of those states; however, solar panels in California can still be worth it for homeowners. Understanding how net metering works in California can help you get the most out of your solar system.
How net metering has evolved in California
NEM in California has gone through three major versions:
NEM 1.0
California’s first NEM program was implemented in 1996. Under NEM 1.0, solar customers could sell their extra electricity back to the utility at the retail rate (the price at which the utility charged consumers for electricity), they could choose any electric rate plan the utility offered and they didn’t have to pay extra fees for connecting to the grid.
NEM 2.0
NEM 2.0 was introduced in 2016–2017. This version of NEM still compensated customers for excess power at the retail rate, though customers couldn’t offset 100% of the charges (some were “nonbypassable”). It also required solar customers to be on a time-of-use (TOU) rate plan in which the price of power depends on when it’s used, and it introduced an interconnection fee
.
NEM 3.0
Officially called the Net Billing Tariff (NBT), NEM 3.0 is the current version of NEM, adopted by the California Public Utilities Commission (CPUC) in December 2022 and implemented in April 2023. The NBT cut the rate utilities pay to buy excess solar power by about 75%
.
5 things to understand about net metering in California
These provisions affect many solar installations and related electric bills in California.
Low payment for your excess electricity. This is the biggest factor affecting NBT solar customers. Under the NBT, you are paid for the electricity you send back to the grid according to a complicated “avoided cost” formula that takes into account the value of that electricity to the grid at the time you send it to the grid. Your system will likely send excess electricity to the grid during the middle of the day, which is when lots of other people are also sending excess solar power to the grid. That means the utility will buy your electricity for a much lower rate than it would have under NEM 2.0.
Time-of-use (TOU) rate plan. Under TOU rates, what you pay for electricity depends on when you use it. The NBT requires solar customers to pay specific TOU rates that, compared with other TOU rates, are lower at off-peak use times and higher at peak times. That will further affect your electricity costs and solar savings.
Nonbypassable charges. As the name suggests, solar customers pay these charges even if they generate enough extra power to offset them. Under the NBT, nonbypassable charges are based on all electricity you pull from the grid.
Monthly billing, annual true-up. The utility keeps a running tally of whether the value of the power you’ve used from the grid is more than the value of the power you’ve sent to the grid. If you took more than you gave, you’ll get a bill from the utility; if you gave more than you took, the utility gives you a credit on your bill. This reconciliation exercise used to happen once a year; now it’s once a month. “Under NEM 2.0, residential customers of investor-owned utilities do not pay more than the roughly $10 minimum bill if they owe more than that at the end of a month. They pay the cumulative amount owed at their annual true-up date,” said Brad Heavner, policy director at the California Solar and Storage Association (CALSSA), in an email. “Under NBT, if customers owe an amount at the end of a month, they pay that full amount. This avoids surprise annual true-up bills.”
Solar system size limit. Under the NBT, customers can install enough solar to offset up to 150% of their electricity use. To do this, they must sign a statement acknowledging that they are getting more solar than they need to serve their rate of consumption, Heavner said. However, utilities have been inconsistent in implementing this, said Barry Cinnamon, CEO of California solar company Cinnamon Energy Systems, in an email. Be aware of size limits if you already have solar and want to add more, which might bump you from NEM 1.0 or NEM 2.0 to the NBT. “There are ways for customers to increase the size of their existing NEM 1.0 or NEM 2.0 system without triggering a change to the NBT,” Cinnamon said. “Contact your local installer for more information on these solar expansion possibilities.”
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How to make California net metering (NEM 3.0) work for you
Even with the drawbacks of the NBT, solar may still make sense for your California home. Here’s how you can make NEM 3.0 work for you.
Add a battery
A solar battery can make a big difference in the cost-effectiveness of your solar under the NBT. Instead of sending excess electricity back to the grid at a low rate, you can store it in your battery and use it later. You can also avoid high TOU rates by charging the battery when you’re generating the most electricity, then using that electricity during expensive peak TOU hours.
For these reasons, many new solar customers in California are turning to batteries. According to the Energy Information Administration, the number of California solar customers installing batteries with their solar panels jumped from just over 20% in October 2023 to well over 50% in April 2024
. A May 2024 study by the Lawrence Berkeley National Laboratory found that the percentage of California solar installations that were paired with energy storage rose from 10% to 60% .
Batteries are expensive, however. In California, the average cost is $7,706 after the 30% federal tax credit, according to EnergySage
.
Shift your energy use
If you can, use energy when you’re generating the most solar or when rates are low. For example, do laundry in the middle of the day or charge an electric car after peak evening hours. If you work from home, you may already use more electricity during the day, when your system is generating the most.
🤓Nerdy Tip
Solar leasing allows homeowners to rent solar panels. Instead of a big upfront investment, homeowners typically make monthly lease payments. However, the homeowners don’t own the panels, so they typically don’t qualify for tax incentives or rebates, and the lease contract may make it more challenging to sell their houses.
Go solar before export rates go down
Every two years, the CPUC updates the avoided cost calculator, which determines what the utility will pay consumers for their excess electricity.
“Customers lock in the currently calculated export rates for the next nine years,” Heavner said. “These numbers change each year, but you know what they are according to the current calculation of export rates. This lock-in will no longer be available to customers installing after 2028.”
Export rates have been coming down, Heavner said. They could also go up in the future, becoming more favorable to NBT customers, as the value of energy sent to the grid increases because of rising electricity demand.
“It is not clear how the utilities will change the NBT export rate,” Cinnamon said. “The original export rates were already effectively reduced by utilities, so I expect that these export rates will continue to change in the utilities’ favor.”
Look at the big savings picture
Solar panels usually last 20–30 years. Although the NBT lengthened the solar payback period (now nine years, by some estimates), you may still save money over time. In addition, rapidly rising electricity costs could shorten that payback period
.
Frequently asked questions
What’s the difference between net metering and net billing?
Under net metering, you sell solar-generated electricity to the grid at the retail rate. Under net billing programs, you sell your excess energy to the grid at a below-market rate.
In California, this lower rate is based on a calculated value of the electricity at the moment it’s sent to the grid. This is also known as the “avoided cost” rate because it reflects the costs the utility avoids by buying power from you instead of producing that power or purchasing it elsewhere.
Can I install solar now and add a battery later?
Yes. If energy storage isn’t right for you at the moment, you can still go solar now and add a battery later if costs come down.
Will there be a new version of the NBT in California?
NEM policies have been shifting across the nation, and it’s possible that the NBT in California will change.
An efficiency apartment is a single room unit that includes the living room, bedroom, dining area, and kitchen. You might be thinking, “How can anyone live in such a compact space?” However, in expensive and large cities renting a smaller space, like an efficiency apartment or a studio, becomes a practical solution.
If you’re relocating to any of these urban centers and searching for an apartment in San Francisco, a rental in New York City, or a studio in Miami, you might frequently come across efficiency listings. These compact living spaces offer a more affordable way to live in prime locations without sacrificing access to city amenities.
What do efficiency apartments look like?
An efficiency apartment typically features a single, compact space that combines the living area, sleeping area, and kitchenette into one room, usually ranging from 300 to 500 square feet. The kitchenette often has a small refrigerator, a microwave, and a minimal cooking area, but not a full stove or oven. The bathroom is usually separate, but everything else is contained within one multifunctional room. The layout is designed to maximize the use of space, often with built-in storage solutions and minimalistic furnishings to keep the area functional and uncluttered.
What is the difference between a studio apartment and an efficiency apartment?
The main difference between a studio apartment and an efficiency apartment is size and layout. Studio apartments are generally larger, featuring an open-concept space that combines the living room, bedroom, and often a full kitchen. In contrast, efficiency apartments are smaller and more compact, usually incorporating a kitchenette to maximize space.
Despite these differences, both types of apartments share similarities in their open-plan design, which combines the living, sleeping, and kitchen areas into one single room. Both are designed to provide a functional living space in a smaller footprint, often appealing to individuals or couples looking for affordable, efficient housing options.
Are efficiency apartments cheaper than studio apartments?
While efficiency apartments are generally less expensive than studio apartments due to their smaller size, the actual cost depends on the location, with downtown areas typically being pricier. Factors like luxury amenities and features can also affect the price. Efficiency apartments are often the more affordable option for those wanting to live in lively areas, especially if you can reduce car-related expenses by walking, biking, or using public transit. Additionally, their smaller size means lower utility costs and less spending on furniture and décor.
Is an efficiency apartment right for you? Pros and cons
Depending on your life situation, an efficiency apartment might be the best option to afford a neighborhood that’s otherwise too pricey for a regular apartment. It’s also ideal for a single person who doesn’t have many possessions or need a lot of space.
Pros of renting an efficiency apartment
Affordable: Efficiency apartments are generally less expensive than larger units, making them a budget-friendly option.
Easy to clean and maintain: The smaller size means less space to clean and maintain, saving time and effort.
Access to apartment amenities (pool, gym, etc.): Many efficiency apartments are part of larger complexes that offer access to amenities like pools, gyms, and communal areas.
Cons of renting an efficiency apartment
Very limited space: The compact size means you have very little room to move around or store items.
No privacy for guests: Hosting guests can be challenging due to the lack of separate rooms and private areas.
Kitchen smells in sleeping/living areas: Cooking smells can easily spread to the sleeping and living areas due to the open layout.
Lack of storage: Limited space often means insufficient storage for personal belongings.
Efficiency apartment FAQs
Where can you find an efficiency apartment?
Most efficiency apartments can be found in cities where unit sizes tend to be smaller, such as New York or San Francisco. However, there are apartment complexes across the country that also offer efficiency apartments as an affordable option for renters.
To find an efficiency apartment on ApartmentGuide, Redfin, or Rent.com, search for keywords like “studio” or “efficiency apartment,” or set the max bedroom/bed and bath filter to studio. When renting an efficiency apartment, consider factors such as location, rent price, included utilities, available amenities, and the overall layout to ensure it meets your needs.
What appliances do efficiency apartments have?
An efficiency apartment typically includes a small refrigerator, a microwave, and a compact cooking area, often with a two-burner stove or hot plate, but rarely a full oven.
How can you make an efficiency apartment look bigger?
To make your efficiency apartment look bigger, start by visualizing the space. Use light-colored paint and hang curtains to make the room appear taller. Divide the area into sections with furniture placement and hang mirrors to create the illusion of more space. Utilize natural light and hidden storage options like under-the-bed storage. Vertical stripes on walls can also make the room feel taller.
How can you cook in an efficiency apartment?
In an efficiency apartment, cook using compact appliances like a toaster oven or Instant Pot. Utilize a two-burner hot plate or portable cooktop, and maximize counter space with foldable or wall-mounted surfaces. Use vertical storage solutions for kitchen essentials, plan simple one-pot meals, and consider meal prepping to save time and space.
What is the best way to handle cooking smells in an efficiency apartment?
To handle cooking smells in an efficiency apartment, open windows for ventilation, and consider using air purifiers or scented candles.
Can two people comfortably live in an efficiency apartment?
While two people can live in an efficiency apartment, it can be challenging due to limited space; it’s best suited for individuals or couples who don’t require much room or privacy.
What storage solutions work best in an efficiency apartment?
The best storage solutions for an efficiency apartment include vertical storage like shelves, under-bed storage containers, and multifunctional furniture with built-in storage options.
Are pets allowed in efficiency apartments?
Pets may be allowed in efficiency apartments, but this depends on the specific rental policies of the building or landlord; always check pet policies before renting.
Are efficiency apartments available in furnished options?
Yes, some efficiency apartments come furnished, providing essential furniture like a bed, table, and seating, which can be a convenient option for renters.
How do you soundproof an efficiency apartment?
To soundproof an efficiency apartment, consider the apartment’s location within the building, use heavy curtains or rugs to dampen noise, install weather stripping on doors and windows, and add soundproof panels or foam to walls.
Dreaming of making $1000 a day might seem far-fetched, but it’s more attainable than you think. With the right strategies and a bit of determination, you can turn this goal into reality. Whether you want to boost your income, save for something special, or achieve financial independence, these ten brilliant ideas will help you make $1000 a day. From side hustles to smart investments, these methods are practical and achievable for anyone ready to take the next step.
Is it possible to make $1000 a day?
Yes, it’s possible to make $1000 a day. It takes commitment, hard work, and a solid plan. Find a method that suits you, stay consistent, and put in the effort. Having unique skills and interests can boost your chances of success.
Find a high-paying job
Some jobs pay over $300k a year. While many require advanced degrees, some high-paying jobs don’t need a college degree.
Find More: Best 30 Low-Stress Jobs That Pay Well Without a Degree
Offer high-value services
Offer services like pet-sitting, tutoring, design work, or writing to make money. High-value services can quickly add up to $1000 a day.
Start a business
Start a business like a digital marketing agency, freelancing, or service-based business to generate $1000 a day.
Sell items you no longer need
Sell items on eBay, Craigslist, or other online marketplaces to make quick cash. This may be short term unless you decide to source your finds.
Find ways for your money work for you
Invest in stocks, real estate, or property to earn upwards of $1000 a day. Let your money work for you and grow your wealth. If your money is not making money, then you are losing money.
To learn more: How to Make Your Money Work for You
Day trading stocks or options
Day trading stocks or options are high-risk but can be highly rewarding. It requires knowledge, discipline, and good risk management. An investing education is very beneficial.
To learn more: How To Invest In Stocks For Beginners: Investing Made Easy
Become a YouTuber
YouTube can be a great source of income if you create quality content. Earn money through sponsorships, affiliate marketing, and ads. Be patient as this avenue can take time to build up your followers.
Sell Printables from Home
Selling printables online is a popular way to make passive income. From coloring pages to budget spreadsheets, you can sell digital products on platforms like Etsy and make good money.
To learn more: Digital Products to Sell on Etsy: Best Way to Make Money Online Fast
Selling on Amazon
Selling products on Amazon, especially with Amazon FBA, can be highly profitable. Send your inventory to Amazon, and they handle storage, shipping, and customer service, making it a great option to scale your business.
Start Hustling
Side hustles can boost your income. With effort and creativity, you can make up to $1000 a day from various side hustles.
To learn more: Find the Perfect Side Hustle for You!
Find More Ways to Make $1000 a Day
Looking for quick and easy ways to make money? This guide offers tips to help you make $1000 a day, from selling services to side hustles. Find the best ways to make money fast and achieve financial independence.
To learn more: How to Make 1000 a Day: 30 Best Ways to Make Money Really Fast
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The typical cost of a home solar panel system in Louisiana was $37,053 in the second half of 2023 before incentives, according to data from EnergySage, a solar and home energy product comparison marketplace.
Hot, humid summers are common in Louisiana, and air conditioning use can contribute to high electricity bills. Solar panel systems can offset some of these costs. However, compared to many other states, most of Louisiana has a lower payback rate for electricity sold back to the grid, which decreases long-term savings and can make solar a less cost-effective option.
Solar costs in Louisiana at a glance
Typical cost of home solar system before federal solar tax credit
Typical cost of home solar system after federal solar tax credit
Median cost per watt
Average system size
Source: EnergySage, a solar and home energy product comparison marketplace founded in 2012. Data is from the second half of 2023.
Louisiana’s average cost per watt for residential solar panels is $3.10. This was slightly higher than the national average of $2.96 in the second half of 2023. Solar panel systems are slightly larger than average in Louisiana at 12kW compared to the national average of 11.6kW.
In some states, you might be required to pay for infrastructure upgrades your utility company deems necessary for activating your system. This happens more in rural zones where grid equipment hasn’t been updated in a while. In Louisiana, large interconnection charges for upgrades are rare.
Lower demand after rising interest rates
Buying a residential solar system in cash is an option for some. However, many cannot afford solar panels without a loan, and that is reducing demand in Louisiana for solar panel systems. Between the first half and second half of 2023, prices per watt in Louisiana have held steady. But for those taking out loans, interest rates can increase overall costs.
“Interest rates are really high right now, so financing residential solar is challenging, and can eat into some of the savings,” says Rebekah Olinde, a solar consultant for South Coast Solar, a solar installer in Louisiana. “I’ve seen the impact of those interest rates both on savings projections and on decision-making.”
Net metering in Louisiana
In most parts of Louisiana, there’s no longer one-to-one net metering, a billing system that allows homeowners to sell excess solar generated from solar panels at retail rates, making solar more cost-effective.
“The net metering policy for most of Louisiana changed in 2019. For any system installed after that, excess solar is now exported back to the grid at the avoided-cost rate, instead of at the retail rate,” says Olinde, noting there are some exceptions.
The avoided-cost rate, or wholesale rate, is much lower than the retail rate. The new policy
means that affected homeowners won’t see as much in long-term electricity bill savings with solar panels. Using a solar battery to store excess electricity could increase those savings, though it would add to equipment costs.
The retail rate and the avoided-cost rate change over time. The Public Service Commission of Louisiana offers a schedule of avoided-cost rates for different energy providers, as of early 2024. These rates are all under 3 cents per kilowatt-hour. The retail cost of electricity is much higher at about 13 cents per kWh, based on EnergySage data.
Property tax exemption
Like many states, Louisiana does not factor solar panels into the valuation of homes for property tax purposes.
This can essentially give you a break on your property taxes. Solar panels could potentially increase the value of your home if you choose to sell it in the future.
Energy storage in Louisiana
Some form of energy storage is a common feature of residential solar panel systems in Louisiana. In areas where full net metering isn’t available, a solar battery can allow homeowners to store and use excess power as needed, reducing their electricity bills. It can also be used as a source of backup power in the case of a power outage. In Louisiana, a typical solar battery costs $13,995 after the federal solar tax credit, according to EnergySage data from the second half of 2023.
Frequently asked questions
How should you choose a solar panel installer in Louisiana?
Gather multiple bids and compare them before making a decision. Consider factors like online customer ratings and how long companies have been in business. Be cautious about working with companies in Louisiana that send door-to-door salespeople to suggest putting solar panels on your roof; these companies often don’t give you the most competitive bids.
Can all roofs hold solar panels in Louisiana?
Solar installers may be reluctant to install on particular kinds of roofs, such as Spanish tile. The installation process can break the tiles and require expensive repairs, but it can be done.
Journeying to a new place lets you try on what living in another culture feels and looks like, whether you’re exploring the adobe house-filled streets of Santa Fe or the lantern-lit alleys of an ancient Moroccan city. Many travelers, dazzled by the rug sellers of Istanbul or the pottery workshops of Oaxaca, return with worldly housewares or art to decorate their homes.
“A textile, a clay bowl or an object you pick up at a flea market connects you to a time that you’ve enjoyed, a memory of a place,” says Hilary Robertson, a Brooklyn prop stylist and author of “Nomad At Home: Designing the Home More Traveled.” “If you can’t move to Marrakech or Kyoto, you can at least recreate something of the feeling.”
But snapping up the best items for your particular home requires a bit of strategy and advance planning. Here’s how to shop smartly, how to get your treasures back in one piece, and what to do with them upon your return.
Do your homework
You usually won’t turn up Indigenous handicrafts or interesting local art at an airport store or the hotel gift shop. “So do research before you go, looking up artisan networks, finding out which days flea markets operate, and figuring out what you might even be able to buy in a given place,” says Rachna Sachasinh, owner of Tikkiwallah, an online shop selling fair-trade Thai and Laotian pillow covers, blankets and other textiles.
Seek tips on what to buy and where to shop from your hotel concierge (or short-term rental owner), and via the websites and social media accounts of official tourism boards. You can also flip through old-school guidebooks (Lonely Planet, Rick Steves), which tend to concentrate on local retailers, rather than the location of every West Elm in Mexico City. TikTok and Instagram also offer potential shopping info, but be wary of paid brand placements.
While cool art and vintage home decor are available at most destinations, “you’ll find more handmade items like textiles, rugs and baskets if you travel to places like Morocco, India and Mexico, which still have living crafts cultures,” says Sachasinh.
Consider hiring a shopping pro
To get straight to the treasure hunting, you could hire a tour guide who specializes in shopping for a few hours. Look for market- or retail-specific experiences in your destination on travel booking sites such as TripAdvisor and Tours by Locals; using the name of a specific place (“Istanbul Grand Bazaar” or “Oaxaca pottery workshops”) can further winnow your search.
You can also try a simple online search to turn up market-savvy private guides such as Buenos Aires Shop Hop (guided jaunts to leather workshops and vintage markets in Argentina) or Maryam Montague, the proprietor of Peacock Pavilions hotel in Marrakech, who takes travelers on daylong expeditions through the city’s souks looking for fuzzy tribal rugs, bright pottery and leather poufs.
Or go on a crafts- or shopping-focused trip. Tour companies such as Ace Camps and Thread Caravan host weeklong trips to meet artisans and make things alongside them in destinations such as Perú (try weaving in the Sacred Valley near Machu Picchu) or Japan (learn how to use shibori indigo dyes or make pottery).
Luxury trip-planning company Indagare offers frequent style-centric small group tours to Mallorca, Rajasthan and Paris with dinners in designers’ homes, market excursions and meetups with artists. Grant K. Gibson, an interior designer, leads small groups to destinations such as Jaipur, India, and Oaxaca, Mexico, where they visit showrooms, learn about block printing and woodworking techniques, and usually come back with suitcases full of merchandise.
“Design touches on so many passion points — art, history and culture, food and wine — that trips like these are a great linchpin for learning, exploration and meeting fellow design enthusiasts,” says Indagare founder and chief executive Melissa Bradley.
Know what to look for
To support local artisans, look for fair-trade crafts stores, which pay creators fairly for their products and tend to stock goods representative of a destination. Other top bets: flea markets focused on handmade or antique goods, museum shops, and government-sponsored artisan boutiques or networks. For instance, Artesanías de Colombia shops in Bogotá and Cartagena hawk rope hammocks and palm fiber baskets produced by Indigenous weavers.
“And visiting an artisan workshop might give the deepest connection to something handmade, since you get talk to the crafter or even make something beside them,” says Sachasinh, who recommends the weaving workshops and the blanket- and table runner-stuffed store at Ock Pop Tok in Luang Prabang, Laos. At the Seattle Glass Blowing Studio, artists create the delicate bowls and glasses the Pacific Northwest city is known for — and teach beginners how to make their own.
Think about how you’ll get it home
Serendipity and impulse inspire many souvenir purchases. But if you want a Turkish rug for your living room or a vintage Parisian painting to match your bathroom tile, be sure to travel with photos and measurements of the space you have in mind. “I always bring a measuring tape and swatches of any fabric I want to match, too,” says Montague.
Planning on carrying a lot of items home on the plane? Stash a collapsible duffel (Paravel makes a clever zip-down one) in your luggage, or, for larger purchases, pack an extra, empty hard-sided suitcase. “It’s usually cheaper to pay for an extra checked bag than to ship a lot of things home,” says Montague. Know that oil paintings can be taken off their stretchers and rolled up, and that you can purchase a throw pillow cover that takes up little luggage space and buy the bulky insert when you arrive home.
“I’m wary of checking a bag with breakables, though,” says Bradley, who has ferried glass and pottery back from Cambodia and South Africa in a hard-sided carry-on.
And whether you are two hours away by car or five time zones away by plane, retailers that sell bulky items can generally guide you toward a shipper, even though it’s often not cheap. “I had this great farmhouse dining table shipped from the Paris flea market, and I’ve had people on my trips to India send home inlaid dressers,” says Gibson.
Get creative
Many housewares bought on your travels can be repurposed, and even ordinary goods found in other countries can seem special or elevated compared to what you’d get at home. “I go to Mexican hardware stores, because even basic items like door hooks or storage bins can be so colorful and fun,” says Robertson.
A Navajo rug can serve as a tablecloth; a beaded Maasai collar morphs into a sculpture when displayed on a wire stand. Even the simplest souvenirs — a vintage postcard of Yellowstone National Park, a scrap of fabric — look terrific when nicely framed.
Grouping disparate travel finds on a gallery wall can make them seem cohesive. “I have the most random … stuff hung on the wall of the staircase at my house — a painting from India, a brass bowl I got in Turkey,” says San Francisco interior designer Chelsea Sachs. “It’s like a chronicle of my life, and these things remind me of special moments when I get back home.” Indagare’s Bradley arranges Iranian tiles, Burmese boxes and Peruvian ceramics amid the novels and art books on her shelves.
Fabrics, buttons and other easy-to-transport materials you snap up on the road can turn into home accents, even if you aren’t especially crafty. Bring home a couple pieces of washi — a Japanese mulberry paper so storied it’s recognized by UNESCO — to hot-glue onto a lampshade or inside a wooden tray. A basket or other object can be turned into a light fixture. “I carried a huge antique rattan bird cage home on a ferry from Provincetown once, and now it’s a chandelier,” says Robertson.
And almost any textile — a striped Peruvian blanket, a vintage quilt from a flea market — can be fashioned into a throw pillow or shower curtain by your drycleaner or used to reupholster a chair seat. “Sometimes stuff has to hang around for a while before you know what you’ll do with it,” says Sachs.
You might not want to amass a cabinet full of souvenir teacups, spoons or snow globes like your great grandparents did. But the concept of picking up one small object everywhere you travel still has some validity; it might save you from overbuying, and even kitschy trinkets can summon memories. Think about scoring a holiday tree ornament or small flower vase every time you go on a trip, or save a few coins from each foreign country you visit to pile into a bowl on your coffee table. “Pieces from different places become integral to your home and allow you to reconnect with a destination and its aesthetic,” says Bradley.
Amazon’s Prime Day is just around the corner, but you don’t have to wait to start saving. Discover some of the best early deals on home decor items that combine style with functionality, all at prices that are easy on your wallet.
Featured early Prime Day home decor deals
These early deals are a great opportunity to upgrade your home decor before the official Prime Day rush. Whether you’re looking to revamp your living space or optimize your storage solutions, these items offer both quality and value.
As a type of alternative investment, real estate can add diversification to a portfolio and act as a hedge against inflation. Real estate investment trusts (REITs) and real estate crowdfunding offer two unique entry points to this alternative asset class.
Both allow you to invest in real estate without being required to own property directly. Comparing the pros and cons of real estate crowdfunding vs. REIT investing can help you decide which one makes the most sense for your portfolio.
Understanding Real Estate Investment Trusts (REITs)
Real estate investment trusts are legal entities that own or finance income-producing properties or invest in mortgage-backed securities. The types of properties a REIT may invest in can include:
• Hotels and resorts
• Office space
• Warehouses
• Storage space
• Multifamily apartment buildings
• Data centers
• Medical facilities
• Retail shopping centers
• Single-family homes
The primary attraction of REITs is the ability to enjoy the benefits of property investment — namely, dividend income — without purchasing real estate directly.
REITs are also considered a type of alternative investment. As with many alternative investments, real estate-based assets don’t tend to move in sync with the stock market. For this reason, investing in REITs may provide portfolio diversification.
REITs may be publicly traded, meaning they trade on an exchange like a stock. REITs must pay out 90% of their taxable income to shareholders as dividends, though some may pay as much as 100%.
If you compare REITs vs. real estate mutual funds, dividends aren’t always required with the latter. Real estate mutual funds can invest in REITs, mortgage-backed securities, or individual properties. While you may have access to a broader range of properties, you may enjoy less liquidity with real estate funds.
Recommended: SoFi’s Alt Investment Guide for Beginners
Alternative investments, now for the rest of us.
Start trading funds that include commodities, private credit, real estate, venture capital, and more.
💡 Quick Tip: While investing directly in alternative assets often requires high minimum amounts, investing in alts through a mutual fund or ETF generally involves a low minimum requirement, making them accessible to retail investors.
Overview of Real Estate Crowdfunding
What is real estate crowdfunding? It’s a strategy that allows multiple investors to pool funds for property investment. In return, investors share in the profits generated by the investments. Regulation crowdfunding makes real estate crowdfunding possible, as entities can raise capital from investors without registering with the SEC, as long as they offer or sell less than $5 million in securities.
In terms of how it works, real estate crowdfunding platforms seek out investment opportunities and fully vet them before making them available to investors. Individual investors can then choose which properties they’d like to invest in.
Depending on the nature of the investment, you may collect interest payments, rental income, or dividends. Real estate crowdfunding can offer access to a variety of property types, including:
• Multifamily housing
• Industrial space
• Build-for-rent projects
The minimum investment varies by platform — it is commonly upwards of $5,000, but may be $500 or even lower in some cases. Some real estate crowdfunding platforms require investors to be accredited, meaning they must:
• have an income exceeding $200,000 (or $300,000 with a spouse or spousal equivalent) in each of the two prior years, with an expectation of the same income for the current year, OR
• have a net worth exceeding $1 million, alone or with a spouse/spousal equivalent, excluding the value of their primary residence, OR
• hold a Series 7, Series 65, or Series 82 license in good standing
Comparing REITs and Real Estate Crowdfunding
When choosing between a REIT vs. crowdfunding, it’s helpful to understand each option’s potential advantages and disadvantages.
Pros and Cons of REITs
Here are the main benefits of investing in REITs vs. crowdfunding.
• Risk management. Alternative investments like real estate may help you balance risk in your portfolio. REITs and real estate in general have a lower correlation with the stock market.
• Accessibility. Purchasing an actual investment property usually requires getting a loan and raising capital for down payments and closing costs. REITs can offer a much lower barrier to entry for investors.
• Dividends. REITs must pay dividends to investors, which may be attractive if you want to generate passive income with investments.
• Liquidity. Publicly traded REITs offer liquidity since you can buy and sell shares as needed, similar to a stock.
• Returns. REITs can potentially generate significant returns in a portfolio compared to stocks or other investments.
Now, here are some of the drawbacks of REIT investing.
• Fees. You’ll typically pay management fees to invest in REITs, as with any investment, but some may charge more than others. Paying attention to investment costs is key, as the more fees you pay, the less of your investment returns you keep.
• Overweighting. You can choose which REITs to invest in, but you don’t have a say in the underlying properties. Investing in REITs that own similar properties could overweight your portfolio in a single sector (e.g., malls or office buildings) and thus increase your risk profile.
• Interest rate risk. Changing interest rates can affect the value of REITs, which can influence the yield you might get. When rates rise, REIT values can decline, requiring you to adjust your expectations for a profit.
• Taxes. REIT dividends are typically taxed as ordinary income, up to 37% (plus a 3.8% investment surtax). But investors may also see a short- or long-term profit from the REIT, which would be taxed as capital gains. There is also the potential for return on capital, which can be complicated. It may be wise to consult a professional.
Pros and Cons of Real Estate Crowdfunding
Here are the main pros of crowdfunding real estate investments.
• Diversification. As with REITs, real estate crowdfunding allows you to diversify beyond traditional stocks and bonds.
• Low minimums. Some, though not all, real estate crowdfunding platforms allow you to get started with as little as a few hundred dollars. That can make entering this alternative asset class or spreading your investment dollars out over multiple property types easier.
• Geographic diversification. Real estate crowdfunding platforms can offer investors exposure to markets across the country. That can make it easier to target a specific region if you’re looking for the next “hot” market.
• Returns. Crowdfunded real estate may generate above-average returns, or exceed the returns you could get with REITs.
• Passive income. Owning a rental property can be time-intensive if you’re managing the property yourself. Real estate crowdfunding allows you to reap the benefits of rental income, without the typical headaches that go along with being a property owner.
And now, here are the cons.
• Fees. Just like REITs, real estate crowdfunding platforms can charge fees. Fee structures can sometimes be complex, making it difficult to assess what you’ll pay to invest.
• Illiquidity. Liquidity in the stock market is one thing, but when it comes to real estate crowdfunding, it’s an even bigger consideration owing to the length of time your capital may be locked into an investment. Once you invest in a property, you’re essentially committed to owning it for the duration of the holding period. It’s not unusual for real estate crowdfunding platforms to offer investments with holding periods of five years or more, making them highly illiquid.
• Accreditation requirements. Some crowdfunding platforms only accept accredited investors. If you don’t meet the standards, you won’t be able to invest through those platforms.
• Taxes. Income from crowdfunded real estate investments is taxable, though not always in the same way. You may be subject to different tax rates based on how dividends and interest are paid out to you. You may want to consult with a professional.
Which Investment Strategy Is Riskier?
It’s difficult to pinpoint which is riskier when comparing a REIT vs. real estate crowdfunding, as each one has different risk factors.
With REITs, the biggest risks may include:
• Liquidity risk, which could make it difficult to sell your shares if you’re ready to leave an investment.
• Changing market conditions or rising and falling trends, either of which could directly impact real estate values.
• Interest rate sensitivity, which can influence REIT values.
The main real estate crowdfunding risks may include:
• Platform risk, or the risk that the marketplace you’re using to invest could shut down before you’re able to withdraw your capital.
• Poor vetting, which may allow unsuitable investments to make it onto the platform.
• Changing regulations, which may affect the real estate crowdfunding space as a whole.
Whether you choose a REIT vs. crowdfunding, lack of education or understanding is also a risk factor. If you don’t understand the basics of how either type of investment vehicle works, you could be putting yourself in a position to lose money.
Due Diligence Considerations
REITs and real estate crowdfunding platforms should perform due diligence in vetting investments to make sure they’re suitable. However, it’s wise to do your own research to understand what you’re investing in, who you’re investing with, and the potential risks.
As you compare REITs or real estate crowdfunding platforms, keep the following in mind:
• Minimum requirements to start investing, including accredited investor status
• Range of investment options
• Transparency concerning fees and investment selection
• Holding periods
• Performance track record
• Overall reputation
Talking to other investors who have used a particular crowdfunding platform or invested in a certain REIT can offer perspective on the good and bad.
The Takeaway
Real estate can be an addition to your portfolio if you already have some experience in the market, and have an affinity for real estate. As a type of alternative asset class, investing in real estate can add diversification to your portfolio, and potentially act as a hedge against inflation. Both REITs and real estate crowdfunding enable you to invest in real estate without the hassle of actual property ownership and maintenance, but come with different risk factors than you’d find with traditional securities.
Ready to expand your portfolio’s growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi’s easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it’s important to consider your portfolio goals and risk tolerance to determine if they’re right for you.
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FAQ
What are the main advantages and disadvantages of investing in REITs?
Investing in REITs can offer the benefits of dividend income and portfolio diversification, without requiring you to own property directly. The disadvantages of REITs can include interest rate risk and market risk, both of which can affect the value of your investments.
How does real estate crowdfunding differ from traditional REIT investments?
Real estate crowdfunding allows investors to pool funds together to invest in property and collect interest, dividends, and/or rental income. REITs own and operate investment properties and pay dividends to investors. REITs and real estate crowdfunding can differ concerning the types of properties you can invest in, the minimum investment required, and the fees you’ll pay.
How are taxes treated for REITs and real estate crowdfunding?
REIT dividends are primarily treated as ordinary income for tax purposes (although you may face capital gains on any profits). Real estate crowdfunding returns may be subject to capital gains tax and/or ordinary income tax rates, depending on how they’re structured. Because the tax treatment of these two entities can be complicated, it’s probably wise to consult a professional.
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Understand how much extra income you could get from a side hustle like DoorDash and get a budgeting and investing basics refresh.
This Week in Your Money: How much extra money can you really make from side hustles? What are budgeting and early investment strategies for young professionals? Hosts Sean Pyles and Sara Rathner discuss the realities of gig economy jobs with Tommy Tindall, a NerdWallet writer who tried working for DoorDash to see what kind of income it would give him. He shares tips and tricks on the ease of starting with DoorDash, the practical challenges involved, and how your location and lifestyle can impact your earnings.
Today’s Money Question: Host Elizabeth Ayoola joins Sean and Sara to help answer a listener question from a recent college graduate about early investment strategies. They discuss how young professionals can apply the 50/30/20 rule to their finances, the importance of setting clear savings goals, and how to start investing at a young age. They discuss the benefits of starting investments early, the differences between active and passive investing options, and the importance of automating investments to build wealth over time.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Have you ever gotten a food delivery or a ride in an Uber and wondered whether these gigs are really worth the effort as a side hustle? Well, this episode will deliver some answers.
Sara Rathner:
Cute. Welcome to NerdWallet’s Smart Money Podcast. I’m Sara Rathner.
Sean Pyles:
And I’m Sean Pyles. This episode, Sara and I are joined by our co-host, Elizabeth Ayoola, to answer a listener’s question about money goals, especially when you’re early on in your financial journey. How do you get a grip on your finances and set yourself up for long-term success?
Sara Rathner:
But first, we’re turning to side hustles. This month on Smart Money, we’re running a special series about how you can increase your income, whether you want more money to invest or you’re working on building up your savings, or you really just want some extra cash to spend on whatever junk appears in your social media feeds.
Sean Pyles:
And we are not here to judge you for whatever you spend your money on, but watch any social media influencer or read any article about ways to increase your income and inevitably someone mentions taking up a part-time job in the gig economy like Uber, DoorDash, Airbnb, take your pick. And I’ve always been pretty skeptical that these gigs will net you meaningful amounts of cash, especially considering all the time and effort involved.
Sara Rathner:
Absolutely. If you’re going to put miles on your car or let strangers sleep in your rental property, it needs to be worth it. And we don’t have access to a vacation house for the purposes of this podcast, but we do have a Nerd on staff at NerdWallet who actually did DoorDash for a couple of days to get a feel for whether these jobs live up to the hype. Tommy Tindall is here to share his insights with us. Tommy, welcome back to Smart Money.
Tommy Tindall:
Hey there. Thanks for having me.
Sean Pyles:
So Tommy, you recently made a really fun video for NerdWallet’s YouTube channel where you test drove DoorDash for a few days. What were your hopes and expectations going into this journalistic exercise?
Tommy Tindall:
Yeah, so I study and write quite a bit about side hustles and for this one, I really wanted to go the extra mile, get it, and test it out myself, try to make the advice a little more valuable, right? Give it a true test. And delivery driving is super popular and seemingly accessible, at least that’s what I thought, was my hypothesis, I should say, an easy way to make side money. So I really wanted to answer a couple questions that I think people have about a gig like this, and one is just how easy is it to get started? Can you really sign up on your phone, get a red bag in the mail and start driving? And spoiler alert, yes, that’s what I did. You can. And also can you make real money?
Sean Pyles:
Okay, so what were the main things that you were tracking as you weighed whether this side hustle was worth it?
Tommy Tindall:
I wanted to keep it easy, so I was just keeping a close eye on the time I spent driving while delivering, the miles I drove, and of course how much I earned and really wanted to get to what’s the real pay when you factor in the cost of driving.
Sara Rathner:
So talk with us a little bit about the experience of doing this. Was it fun? Was it boring? Did you get chased by any wild animals? Did you use this as an opportunity to catch up on episodes of Smart Money?
Tommy Tindall:
Well, I wanted it to be fun, but it was kind of hectic. I mean, I remember there were a couple moments of zen where I was just cruising, windows down, just looking outside thinking this is the life. But as soon as I started thinking that way, ding, ding, I’d get another delivery. And I think hustle is a real good term for this because it was kind of a grind. And what really got me, which I thought was interesting, was the constant interaction with my phone. It was draining. I was using maps to navigate, to take orders, and it was just a lot of interaction with the phone while driving.
At one point I, quick story had a 16-mile delivery, which was good pay. It was like $18 of base pay, which was really good. So I took it, but I was so distracted kind of trying to figure out where I was going, that I went the wrong way on 95 and was screaming, pounding the wheel, as you can imagine, and just like, efficiency. That’s what I was going for. Also, keep in mind, I was filming this experience for the video and that totally added to my stress. So maybe more practice without trying to film myself, I could be a little more efficient, get a little more time to enjoy solitude and catch up on my favorite podcasts like this one. But yeah, it was hectic.
Sean Pyles:
Yeah. But you can’t forget that this is a job, right? It’s going to have stressful, difficult moments like any job.
Tommy Tindall:
I was reminded of that quickly, that this is a job and I kind of felt the stress. When I would get a delivery, I wanted to make sure the food was hot and get there quickly, know where I was going. So I had that sense of, hey, you’re on the clock, you’re working.
Sara Rathner:
That distracted driving element is also pretty terrifying.
Sean Pyles:
Tommy Tindall:
Yeah. Now when I see people on the road, I’m wondering are they delivering right now? So before I yell “get off your phone,” I’m wondering that.
Sara Rathner:
Sean Pyles:
Sara Rathner:
They might be.
Sean Pyles:
Either way, get off your phone.
Tommy Tindall:
Sara Rathner:
Tommy Tindall:
Sara Rathner:
I know. So Tommy, you mentioned this in your video, you live in a smaller town, a more remote area. How does that affect your ability to make money from DoorDash or any other app-based job like this?
Tommy Tindall:
I mean, it matters a lot because it’s how busy it’s going to be around you. So location matters. It’s where you live, which towns you have access to with a short drive that may be more populated. So I live, it’s a smaller, more rural but kind of suburban town outside of Baltimore. And what I did before I started was I would watch the DoorDash app, the map section of the app and just kind of see where the hotspots were.
And of course areas closer to Baltimore where it’s more densely populated, more restaurants within close proximity of each other, they were regularly busy during the peak times and they were shaded in pink on the maps. That’s how you know you can go out. When the map is like pink or red, you can Dash on a whim. When it’s gray, which it was sometimes in my town, you have to wait or schedule a Dash for later. But luckily where I live during the busier lunch hour, the option to Dash now was available during the weekday when I tried this. So I was able to stay closer to home, which I think was more realistic, because if I did this, I don’t think I’d want to drive that far. I’d want to stay closer to home, so.
Sean Pyles:
You don’t want to have to commute for your side gig.
Tommy Tindall:
Exactly. You want to get out there and do it maybe on the lunch hour during work, which I was thinking, which we’ll talk about. Probably kind of hard to do because I did find myself going from one end of my town to another because it’s not that populated, so it cost me some time.
Sean Pyles:
Well, that also makes me think about wear and tear on your vehicle and other related expenses like gas. Was that a worry of yours as you were doing the side hustle?
Tommy Tindall:
Yeah, this was a big worry for me because I am somebody who loves cars and I can be a little obsessive about keeping our vehicles maintained. So just all the stop and go driving, it was just kind of giving me a nervous tick. That was on my mind the whole time. I think I kind of make that clear in the video a little bit, and I should also mention that I drive a full size Ram pickup truck, which I thought would be fun to test for this, but not the ideal gig economy vehicle. It’s inefficient, hard to maneuver.
Sean Pyles:
Yeah, lots of storage space, but maybe more than you need for a Starbucks run or something like that.
Tommy Tindall:
Oh, yeah. And the maneuverability. I think at one point I pulled off a busy road into the wrong driveway and I had to sort of Austin Powers my way out. You remember that 20 point turn he had to do in the first movie and all while the customer, the next house over was watching me. So when I finally got over there, we had a little laugh about it and I think she did tip me. I don’t know if she tipped me after the fact or not, which you can do in the app.
Sean Pyles:
You were providing some entertainment along with the delivery?
Tommy Tindall:
Oh, yeah. When I did get to interact with customers like that, I made it kind of fun. I’d be like, “Yeah, you don’t see people driving a truck very often, do you?” But yeah, I was a little anxious about my own vehicle and the wear and tear.
Sean Pyles:
Okay, so Tommy, after three days of Dashing, tell us how much time you spent driving, how far you drove, and how much you earned.
Tommy Tindall:
All right, well here are the stats. I went on three Dashes for this test and drove about six and a half hours on deliveries altogether. I put 90 miles on my personal vehicle, which was my big dump truck as I mentioned. Earned a total of $86, but factor in the 17 MPG that I was getting. And gas was I think around $3.60 a gallon when I was doing this. So less than $19 in fuel costs. True earnings are more like $67 or $10.31 cents an hour. So I mean, not a lot of money.
Sean Pyles:
So I’m going to wager that’s less than you’re making at NerdWallet on an hourly basis.
Tommy Tindall:
Yeah, yeah, yeah. Not giving up the main hustle.
Sean Pyles:
Yeah. Do you think this was worth it?
Tommy Tindall:
So yes and no, and I’ll start by saying I’m glad gigs like this exist because I was really blown away by the accessibility of this gig. I mean, I was signed up and through the background check in literal minutes, and if you, the listener, meets the basic qualifications, I mean you can probably start working and start earning, and I like that. It’s not like saying side hustle options, go be an influencer and wait a couple years to build a following before you make your first dollar. I mean, you sign up and you can make money, which I think is great. And flexibility of course is the selling point of a delivery driving job like this. But at the expense of what? I felt like I was really hustling. I didn’t make a lot of money and thinking back, I mean this would be a real grind for me to do on the side.
It’s really about where I’m in my life. I mean, I have a main job, I have a family, I have young kids in school and sports, a home that continues to break that I have to maintain, I serve in my church and I really covet kind of that little free time that I have left. So I guess all that to say, not quitting my day job. And I think doing this made me more grateful of my main hustle and reminded me that I think there’s merit in what’s become kind of an older way of thinking where you find a good company, work hard, build your skills, grow your confidence, gain expertise, and hopefully increase your salary over time. So whether it’s worth it I think depends on personal situation, because you do make money.
Sara Rathner:
So who do you think a side hustle like this is good for?
Tommy Tindall:
People who do have some extra time or need extra cash and can take advantage of the flexibility to work whenever, because again, that is the selling point of a job like this. Also people who can work the system to their advantage. And you see a lot of YouTube videos of people sort of gaming this and chasing something called peak pay, which is an incentive where you can add plus one, two, three, or more dollars to a delivery if it’s really busy. So the competitive types, which is not me, admittedly, but I do wonder if I would’ve tried this at a different time in my life, like back in college or in my first years working a job when I lived in Washington, DC, had it been available.
Sean Pyles:
Well, Tommy Tindall, thanks so much for talking with us.
Tommy Tindall:
Absolutely. Thanks for having me.
Sean Pyles:
So listener, you just heard Tommy describe an interesting way that he earned some money. Ahead of this month’s series about increasing your income, we have our new Nerdy question of the month for July, which is: what is the most creative thing that you’ve done to earn more money? Maybe you negotiated a significant raise or you’re one of those job hoppers that has a new gig every couple of years. Tell us what is the most interesting thing that you’ve done to increase your income?
Sara Rathner:
I mean, I’ve rented out my basement for a commercial shoot, so there’s that.
Sean Pyles:
Okay. Interesting.
Sara Rathner:
Made 1,400 bucks and bought new storm doors. What a day. Anyway, if you’ve done something like that or something else, call or text us on the Nerd Hotline at (901) 730-6373. That’s (901) 730-NERD, or email us at [email protected]. We might just share your story on a future episode. Maybe inspire some of our other listeners to take up an interesting side hustle.
Sean Pyles:
And while you’re at it, send us your money questions, too. It is our job as Nerds to answer whatever your money question is. So send it our way on the Nerd Hotline, (901) 730-6373 or email it to us at [email protected]. Well now let’s get into this episode’s money question segment after a quick break. Stay with us. We’re back and answering your money questions to help you make smarter financial decisions. This episode’s question comes from Adrian, who left us a voicemail. Here it is.
I’m a recent college graduate. I graduated college in June of 2023 and I am six months into my new corporate world job. I’m trying to save 25% of my income per month and I’m trying to start investing. I don’t really know what my savings goals should be. I’m down for some high risk investments, but I don’t know, I’m trying to just learn the basics of investing, how to plan for life. What would you do if you were in my shoes, if you could go back in time and be 23 and not have kids or a mortgage or anything?
Sara Rathner:
To help us answer Adrian’s question on this episode of the podcast, Sean and I are joined by our co-host, Elizabeth Ayoola. Hey Elizabeth.
Elizabethy Ayoola:
Hey, my favorite dynamic duo.
Sean Pyles:
I love getting a question from a listener who is so young because even though they’re only 10 years younger than me, it does feel like a lifetime ago that I was 23 and making these financial decisions for the very first time. One thing that I find really interesting about Adrian’s question is that while they are so early in their financial journey, their questions really can apply to anyone, because as I’m sure we all know well, plenty of people in their 30s and 40s and beyond are still trying to figure out their budgets and their financial goals. So with that in mind, I think that our listener and all listeners really could benefit from a little bit of budgeting 101. So Elizabeth, where do you think they should start?
Elizabethy Ayoola:
Basically, I think they need to start with a budget. That’s going to tell you how to slice and dice your money. You should probably maybe start with the 50/30/20 budget, which we are advocates for at NerdWallet, or it might be the 60/30/10 budget depending on your cost of living and where you are. Now, for those who don’t know what the 50/30/20 budget is, 50% go to your needs, 30% to your wants and 20% to debt, paying down debt and also saving money. I do think it’s important to know, however, these numbers are not set in stone. It really just depends on your finances and you can adjust the numbers to fit where you are in your financial life right now. I myself currently save above that 20 bucket, but luckily I don’t have that much debt, so that’s why I’m able to save more money and save more than the 20.
Sean Pyles:
Yeah. And our listener wants to save 25% of their income, which is really ambitious, especially for someone who is so young. I think when I was 23, I was saving maybe 2% of my budget, and it wasn’t even intentionally, it was just by chance, because that’s what I had left over at the end of the month.
Elizabethy Ayoola:
You were doing great, Sean, because let me tell you, I was saving 0% of my budget at 20 something. So that is ambitious. I think it’s possible, but it just again depends on where your finances are.
Sara Rathner:
I like an ambitious savings goal, especially when you’re young. Some of the best advice I was given by a CFP that I used to work with was save as aggressively as you can for as long as you can because life only gets more complicated and more expensive. So if aggressive for you is 3%, that’s great. If aggressive for you is 25%, that’s great, and if you have to change it up from month to month, that’s fine too.
Elizabethy Ayoola:
So our listener is dedicated to being a hardcore saver, and I love that for you, listener. So Sean, I know you’re also big on saving and you have some tricks for effectively saving money. What do you think?
Sean Pyles:
So I would start by encouraging Adrian to have something to save for. Again, I’m thinking a lot about myself in my early 20s, I didn’t really have any sort of short, medium, or long-term goals or priorities of any sort because I was just focusing on paying my rent and having fun. So I understand how it can be hard to understand what your priorities might be, and this is where I think something that’s very woo woo but effective can come into play. And that is a visualization exercise. Now, if you’re rolling your eyes, just bear with me because I swear it can be super helpful. So when you are 23, 33, 43, think about where you see yourself in the future in five years, in one year, in 20 years. So maybe that means do you want to move to a new city in the next year? Do you want to buy a house in five years? Do you want to retire in 40 years? Imagine where you will be at these different points in your life and think about how you can save money to get there.
Elizabethy Ayoola:
I would not even say that’s woo woo, Sean. I mean, so I definitely started doing that in my late 20s and honestly, the life I have today was a lot of the woo woo stuff. So it worked for me.
Sean Pyles:
The manifesting is real.
Elizabethy Ayoola:
It’s a real thing.
Sara Rathner:
And if you’re not really into the whole idea of manifesting as a term, that’s fine too. You could also think about it in terms of just naming your goals. Instead of just being like, I’m going to save 25% of my salary. For what? So say what the “what” is. So maybe online savings accounts like high yield savings accounts, you could actually name the account. So you could have, this is the account because I need to replace my car, or this is the account because I need to buy a new computer. Or this is the account that I’m saving up for a down payment on a home for. And then beginning to say, okay, I’m going to put this amount of money in this month for this goal and this goal. Makes it so much easier to stay organized and there’s some science behind it, making it so that you actually are more successful in terms of reaching your savings goals by just naming the goal. So if you don’t want to do the woo woo thing, you could do the practical thing and just put some names on stuff.
Sean Pyles:
Yeah. And what you’re talking about there is really the marriage of the woo woo and the super practical and tactical, where you can start with knowing what you want and then getting the accounts that can help you save the money for that. So for a lot of people, that’s going to mean starting out with an emergency fund, building up over time three to six months of the needs budget that you have. That’s like rent and medicine and groceries, things like that. And then building out the other savings buckets for things like a vacation fund, a house fund, a wedding fund. I have 10 savings accounts across all of the banks that I partner with. And they are all specifically allocated for my different goals. I know 10 is kind of a ridiculous amount, but it works for me.
And what makes it easy is that I automate my deposits into these accounts. So I don’t even have to think about it. One of my accounts is only getting $40 a month, and that’s enough for me to save, to build on that goal over time. But I don’t have to be worried about, oh, okay, am I going to have enough for when I need a new rug for my house eventually. I just know it’s already going in the background.
Sara Rathner:
Yeah, I love this. It’s that concept of reverse budgeting where you automate transfers into your various accounts for different goals every month.
Sean Pyles:
And whenever we talk about savings accounts, it can be easy for we Nerds who are steep in this to maybe even take for granted the fact that high yield savings accounts are such an amazing thing for people to have. People can be getting even around 5% back for what they have sitting in their savings. And if you think about some average returns from the stock market some years are around 7%, and that can be much riskier than just having a savings account. I really do recommend people shop around, look at some of our roundups on NerdWallet and see what sort of high yield savings account might help you meet your goals, because you’ll be getting a much greater return on your money than you would get from a traditional brick and mortar bank.
Sara Rathner:
So our listener, Adrian, is a spring chicken in the world of finance and in the world of investing, which they also mention, having a long time horizon can be one of your best assets. And if you’re in your 30s and listening to this, you still have a long time horizon. So don’t think it’s all over if you didn’t invest in your 30s. Now let’s talk about investing at a younger age. Elizabeth, what are your thoughts there?
Elizabethy Ayoola:
Oh my gosh. I totally get the feeling of being overwhelmed and not understanding where to start. But it’s really important I think, not to let that paralyze you and to just start as soon as you can. And the first step in doing that is creating a strategy. And what the strategy is going to do is it’s going to tell you what your goals are and how much you need to save to achieve them and by what timeline. Now, it doesn’t have to be over complicated because I think that’s where people get tripped up, especially because there’s so many retirement and saving calculators online to help with this. And yes, I’m going to shamelessly plug NerdWallet. We have lots of those, go check them out. But yeah, knowing what age that you want to retire and how much you need will help guide your investing strategy. It’s also going to help you decide what to invest in, the best vehicles to use, and how much to put in each. What do you think, Sara, about time horizons in that sense?
Sara Rathner:
Oh, it’s probably one of the best things you have working for you because the way compound interest works mathematically is the longer of a time horizon you have, the less you can save per month or per year and still come out with a higher amount of money in the end versus waiting an extra 10 years, an extra 15 years, then you have to invest so much more per month just to catch up and still end up with less money overall.
Sean Pyles:
And I would recommend Adrian or anyone else who’s getting started in investing or just taking it seriously for the first time, is to get a lay of the land and understand all of the different investment accounts that are out there. Because there are all these different ones, like a 401k and a Roth and a Roth IRA that people have probably heard about, but really understanding what they are and when one is more beneficial than another for your circumstances can help you make the most of your investments. And something to think about too, since Adrian is so young, is that your younger years are often the best time to take advantage of an IRA because you are getting taxed at a lower rate when you’re earning less money than you will be taxed at later on in your career. So really use these early years to your advantage.
Elizabethy Ayoola:
Yeah, I’m with you Sean. You guys also should decide for those people listening whether you want to do active or passive investing. If you are like me and you ain’t got time for that, and when I say that, I mean checking the stock market every day, then you may want to consider passive investing and some passive investing options include ETFs or robo-advisors and kind of securities like that. But yeah, once you do all those things, the most fun part is automating your investments and knowing that you’re probably growing both while you’re sleeping.
Sean Pyles:
Yeah, I think for a lot of people, sometimes the best strategy to start can be the strategy of “I want my money to make me more money.” And that’s where I started out in my mid 20s when I first started taking investing seriously. I didn’t want to spend a lot of time actively managing investments. And guess what? Actively managed investments often perform worse than passively managed investments. So passive is probably going to be the easiest thing for most people to do. And I just set up an account with a robo-advisor that was trusted and well-reviewed on nerdwallet.com, and I just have automated deposits and it makes it super simple. I’ve been doing it for years and I’m already receiving literal and metaphorical dividends from that.
Elizabethy Ayoola:
Also, you want to think about fees when you’re looking at things like that and what has low fees and performance and other things, but don’t let that stop or overwhelm you as well. Just check out some resources on how to pick an ETF also.
Sara Rathner:
Yeah, I will also add that whenever I hear somebody in their early 20s say that they are, “Down for some high risk investments,” I think somebody’s been talking to their friends about crypto and I don’t know. I mean, for all I know Adrian just means, oh, I really want to dabble in a more stock forward portfolio. Sure. Honestly, you’re probably talking about crypto, aren’t you? Before you dabble in speculative investments, things like cryptocurrency, things like, I don’t know, precious metals and real estate and all sorts of stuff like that, you want to set aside a solid foundation. Just the things that we’ve been talking about, automating transfers of money into retirement accounts, either through your employer or on your own, diversifying those investments. And then, only then, if you have money left over, then you can dabble a little bit, sprinkle a little spice onto your investments, maybe 10% of your portfolio at the most into the higher risk, like crazy stuff. But set a good foundation first. Don’t put all of your money into speculative investments and then wonder why you don’t have any money left because you probably won’t.
Sean Pyles:
And I will just quickly add for the sake of our compliance department, that we are not financial or investment advisors. If you want specific individualized investment advice, speak with a financial advisor, hopefully a fiduciary financial advisor. Okay. Now, I know we’ve been kind of talking around this question for this conversation, but I would love to hear what you two would have done differently if you could go back to when you were 23 and maybe improve your finances, knowing all that you know now?
Elizabethy Ayoola:
That’s a deep, deep, deep sigh. So honestly speaking, the first thing I thought is like, oh my God, I would’ve stopped partying and buying alcohol and save more money. But then I remembered that I was living in Nigeria earning like $400 a month, which was seen as a good salary. So I barely had any money to live, quite frankly. And I think that’s a reminder that sometimes you just ain’t got really barely enough money to save and you just need to earn more. But I definitely would have educated myself more on personal finance and I would’ve at least stashed away something into an investing account. So that’s what I would’ve done. But then again, if I started investing too early, I might be in Turks and Caicos right now instead of chatting to you all. So I guess it worked out how it was supposed to.
Sean Pyles:
I’m glad you’re here with us, but also I would be happy for you if you were traveling the world instead of doing this. Sara, what about you?
Sara Rathner:
So I think a lot of people in their early 20s are, there’s just a lot of fear and uncertainty at that point in your life, and I definitely felt that at that time where there are all these big life milestones that are coming up for you eventually and you just don’t know when they’re going to happen. And so I was so worried about whether or not I’d be able to get to that point. But you’re 23.
Knowing how fast the next 10 to 20 years will go for you, just savor it because everything else is going to pile on really, really fast. And the way you spend your weekends is going to look really different. Do take a couple of steps to improve your position in life later on and use that gift of time. But then, yeah, you should have the wants budget, you should go travel with your friends, go out with your friends. Once you all get partnered up, you’re not going to see your friends as often, so enjoy it.
Sean Pyles:
Well, as someone who definitely enjoyed themselves a lot in their early 20s, I don’t regret any of it, really, shockingly, but it did come at the expense of my financial health in some senses. I really didn’t invest until my mid 20s. I barely had a budget until around the same time. So I would go back and encourage myself to be a little bit more balanced in the having fun and the forward planning aspect of life. But you’ve got to learn your lessons as you learn them. And that’s where I was at the time.
And one thing I think is important to realize and think about as you are trying to map out what having an adult financial life looks like is that the beginning of this financial journey is always going to be the hardest because you simply don’t know what you don’t know. There’s so much to learn. When you’re 23, you’re paying rent on your own for the first time. You’re figuring out how to make meals for yourself for the first time and building these good habits does take time. So don’t feel like you have to do everything all at once, but do make that concerted goodwill effort to try to better your relationship with money and use it to build the life that you want. Well, Elizabeth, thanks so much for coming on and talking with us.
Elizabethy Ayoola:
Thanks for having me.
Sara Rathner:
And that’s all we have for this episode. Remember, we’re here for you, whatever life phase you’re in, and we want to hear your real world questions because we’re here to make you smarter about your money decisions. So turn to the Nerds and call or text us your questions at (901) 730-6373. That’s (901) 730-NERD. You could also email us at [email protected]. Also visit nerdwallet.com/podcast for more info on this episode.
Sean Pyles:
And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts and iHeartRadio, to automatically download new episodes. This episode was produced by me. Tess Vigeland helped with editing. Sara Brink mixed our audio. And a big thank you to NerdWallet’s editors for all their help. And here’s our brief disclaimer again. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sara Rathner:
And with that said, until next time, turn to Nerds.
The typical cost of residential solar panels in Florida, before the federal solar tax credit, was $33,673 in the second half of 2023. This is lower than the national average of $34,122. The average system size is 14.3 kWs, compared to the national average of 11.6 kWs.
Florida’s primarily humid subtropical climate requires a lot of energy for air conditioning. Installing larger systems makes sense in a state that has one-to-one net metering, which allows customers to offset more of their energy bills with solar. The state’s net metering policies and abundant year-round sunshine have fueled strong adoption of residential solar. Florida has few state tax rebates and solar incentives compared to other states, but customers there may still qualify for the federal tax credit
N.C. Clean Energy Technology Center at N.C. State University. Programs. Accessed Jun 28, 2024.
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Solar costs in Florida at a glance
Typical cost of home solar system before federal solar tax credit
Typical cost of home solar system after federal solar tax credit
Median cost per watt
Average system size
Source: EnergySage, a solar and home energy product comparison marketplace founded in 2012. Data is from the second half of 2023.
Costs and trends in Florida
Solar has been having a moment in Florida, part of a general upward trend in interest and installations.
“Florida is ranked third nationally in solar growth, and it is continuing to grow in popularity,” said Wendy Parker, executive director of the Florida Solar Energy Industries Association (FLASEIA), in an email
. “Most of the state still has net metering, which makes it very favorable to homeowners.”
System sizes are high in Florida compared to other states, at 14.3 kW on average in the second half of 2023. A contributing factor is the falling cost of solar installations, which went from $2.45 per watt in Florida in early 2023 to $2.35 per watt in the second half of 2023.
System size is also often tied to average monthly energy consumption, which is comparatively high at 883kWh per month in Florida.
“In the past year, prices have been trending down, and levelizing some. Certain equipment has come down in price, and extra competition in Florida has driven costs down from some companies. We’ll have to see what the tariffs do, potentially driving prices back up,” says Dan Massaad, CEO of Guardian Home, an energy-efficient home services and solar installation business in Florida.
Florida established statewide renewable energy goals in 2022 but repealed them in May 2024
,. Legislation and incentives may vary with the future priorities of new political administrations.
Tax incentives and rebates in Florida
Net metering. Florida adopted net metering in 2008, as well as guidelines to allow residential solar to interconnect with utility grids. Net metering allows homeowners to sell excess electricity to the local utility.
Property tax breaks. Florida has a property tax incentive for renewable technologies. It ignores the increase in property value due to the installation of solar panels. This savings can add up over time
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Tax credits. Florida doesn’t offer state and local rebates or incentives on rooftop solar panels. However, customers may qualify for the federal tax credit.
Low-cost loans. Some cities offer solar loan programs. For instance, the City of Tallahassee Utilities offered a 5% loan with a 10-year term for solar panel installations, with a maximum loan amount of $20,000
.
Related equipment rebates. Providers like the Fort Pierce Utilities Authority also offer flat rebates on solar water heaters. If you intend to include a solar water heater in addition to a solar panel system, check for this type of incentive in your area
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“Florida is a net metering friendly state,” Massaad says. “A lot of the big utility companies give you a true 1-to-1 credit on whatever you overproduce, so it makes a lot of sense for many clients to go solar.”
Energy storage in Florida
Floridians often use the grid as their backup, but interest in battery storage is on the rise.
“In Florida, the battery storage is often for clients who are more concerned with power outages, like with hurricanes, and those clients have some control to either operate a room or a few circuits, or a whole home backup,” Massaad says.
The average cost of battery backup was $16,887 in Florida in June 2024 before the federal tax credit. However, a small battery for key circuits in one part of the house may cost less and can help cool one part of a home during extreme heat or keep important medical equipment running during a power outage.
Frequently asked questions
How should you pick a solar panel installer in Florida?
In addition to installation price, find out how long a solar panel company has been in business and read reviews. “The absolute cheapest company may not be building a sustainable, service business for the client, so do your research and make sure you’re asking questions about longevity,” Massaad says.
What kind of roof makes installing solar panels more complex?
Most roof types can work with standard solar panel mounting, but clay tile roofs are occasionally used in Florida. The solar mounting supplies can break the fragile tiles, so prepare to pay for additional labor to keep the roof tile safe.
Looking for second job ideas to increase your income? You’re not alone. Many people look for side gigs to help pay bills, save for big purchases, or simply have extra spending money. Finding the right second job and making extra income can make a big difference in your financial life. With so many options available,…
Looking for second job ideas to increase your income? You’re not alone. Many people look for side gigs to help pay bills, save for big purchases, or simply have extra spending money.
Finding the right second job and making extra income can make a big difference in your financial life. With so many options available, there’s likely something that fits your skills and schedule. Whether you want a job you can do from home or one that gets you out and about, there’s a side job out there for you.
For me, I was able to find a second job and it completely changed my life. In fact, it’s how I paid off my $40,000 in student loans in just 7 months. Making extra money also helped me to stop living paycheck to paycheck and to save more money!
Best Second Job Ideas
Below are the best second job ideas:
1. Blogger
Blogging used to be my side hustle and it is now my full-time job where I have earned over $5,000,000 over the years.
I started Making Sense of Cents just as a hobby, and it eventually turned into my second job. I didn’t know that blogs could make money or that it could become my full-time job. I didn’t even understand what a blog was or how it worked.
Starting a blog can be a great way to earn extra income. You can write about topics you are passionate about, such as travel, food, or personal finance. The best part is that you have the freedom to work on your blog whenever you have free time.
For me, it was a great second job because I could work on my blog before I went to my day job, during my lunch break, after I got home from work, and on the weekends. You get to make your own schedule, so that is a huge plus!
You can learn more about how to begin in my free How To Start a Blog Course here.
Here’s a quick outline of what you will learn:
Day 1: Reasons you should start a blog
Day 2: How to choose what to blog about
Day 3: How to create your blog (you’ll learn how to start a blog on WordPress)
Day 4: How to make money blogging
Day 5: My tips for making passive income from blogging
Day 6: How to grow your traffic and followers
Day 7: Extra blogging tips to help you be successful
2. Proofreader
Being a proofreader is a great second job idea. It’s perfect if you love reading and have a good eye for catching mistakes. You get to find errors in spelling, grammar, and punctuation.
You can work from home as a proofreader. Many companies and websites offer remote proofreading jobs. Some popular platforms include Upwork, FlexJobs, and Scribendi.
You might proofread books, articles, or even student papers. The work can be flexible, letting you choose when to work. This makes it easy to fit into a busy schedule.
Proofreaders can earn a decent amount of money. Some jobs pay by the hour, while others pay by the project. According to some sources, full-time proofreaders can make around $50,000 per year. Even if you don’t work full-time, you can still make a good side income.
I personally have a proofreader for my blog, and I know many others who have proofreaders for their businesses as well. It’s a very much-needed and in-demand job.
You can learn more at How To Start A Proofreading Business And Make $4,000+ Monthly.
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This free training teaches you how to start a proofreading side hustle (and how to earn $1,000+ per month!), even if you are brand new and don’t have any previous proofreading experience.
3. Take online surveys
Taking online surveys can be a simple way to earn extra money in your spare time. Companies want to know what you think about their products, services, or marketing campaigns.
Many websites offer paid surveys. You can sign up for these sites and start taking surveys right away. Each survey usually takes a few minutes to complete.
You might earn anywhere from $0.50 to $5 per survey, depending on the length and complexity.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
Pinecone Research
Online surveys can be done from anywhere with an internet connection, making it easy to fit around your other commitments. Just remember, while this can add up over time, you will not make a full-time income from just taking surveys.
I have taken many, many surveys over the years, and what I like about them is that you can do them on your own schedule – in the mornings, during your lunch break, before you go to bed – whenever. There is no strict schedule and they are super easy to do.
4. Dog walker or pet sitter
Becoming a dog walker or pet sitter is a great way to make extra money. You can set your own schedule and enjoy spending time with furry friends. Plus, many people need reliable pet care (I have personally found it hard to find a good dog sitter in the past, so I personally know that there is a lot of demand for this second job!), so there are plenty of opportunities.
Using dog walking apps like Rover, you can easily find clients. These platforms connect you with pet owners in your area. Depending on how much time you invest, you could potentially earn between $400 and $1,000 a month.
When I have had dog sitters in the past, I was paying around $100 a day for my two dogs to be watched in the person’s home. So, a 10-day trip earned the person $1,000.
Taking care of animals can also be very rewarding. You get to exercise while walking dogs and enjoy the company of pets. It’s a job that keeps you active and can be a lot of fun if you love animals.
No special skills are needed, but being responsible and loving pets is important. You must be punctual and trustworthy since pet owners rely on you to take care of their animals.
My mother-in-law as well as my sister are both dog walkers and pet sitters and enjoy what they do.
5. Virtual assistant
Being a virtual assistant is a great second job idea. You can help businesses and professionals with tasks like managing emails, scheduling appointments, and handling social media. This role tends to have flexible hours, making it easier to fit into your schedule.
One of my first side jobs was working as a virtual assistant. It was a fun and flexible way to earn extra money. There are many kinds of virtual assistant jobs. The money I made helped me pay off my student loans quickly, stop living paycheck to paycheck, and become my own boss. I think it’s a great way to make money, whether you want a part-time or full-time job.
Starting as a virtual assistant can be easy. Websites like Upwork, FlexJobs, and Indeed have listings for virtual assistant jobs. You just have to set up a profile and start applying. For me, I also let my friends and those in my industry know that I was growing my virtual assistant business, and that helped me find jobs as well.
A virtual assistant’s tasks can include:
Managing social media accounts
Scheduling travel and appointments
Managing email inboxes
Organizing events
Communicating with clients
Ordering supplies
Managing calendars
Handling logistics
Coordinating Zoom calls
Moderating online forums
Running personal errands
Answering customer service questions
Performing data entry
Managing websites
Creating presentations
Sending invoices
Now, one virtual assistant most likely won’t do all of these tasks – it simply depends on what the company or person is looking for.
Learn more at Best Ways To Find Virtual Assistant Jobs.
6. Graphic designer
You can make extra money as a graphic designer, and this can be a good second job idea if you want to work from home. A graphic designer is what you think – they design different kinds of graphics.
One way is to create design templates. These can be for websites, social media, or even printable designs. You can sell these templates online and get paid each time someone buys them.
Another option is freelance work. You can sell services like logo design, branding, or social media graphics, and you can find clients on sites like Upwork or Fiverr.
7. Social media manager
Social media managers handle different social media platforms for businesses.
Your job can include creating content, posting updates, and responding to followers. You might also need to analyze data to see what posts are doing well and which ones are not.
They work for one company or multiple clients. It’s important to have good communication skills and a creative mindset. Some social media managers also do graphic design or video editing for their social media posts.
Being a social media manager can be fun and flexible. You can usually work from home and set your own hours. This control and flexibility make it an excellent job for people looking to earn extra income on their own terms.
For me, I have been a social media manager in the past as a second job. It was great as a flexible side hustle!
8. Online tutor
If you enjoy teaching and have a strong understanding of a subject, you can try finding online tutoring jobs. Online tutoring lets you share your skills and help students from anywhere, and you can tutor kids in math, science, and reading, or even help them prepare for tests like the SAT or ACT.
Platforms like Wyzant and Tutor.com connect you with students looking for help. You create a profile, list your skills, and set your rates. Most tutors charge between $30 and $60 per hour. Teaching English as a second language is also a popular option. Many companies need English tutors to teach students abroad.
Online tutoring is flexible because you can choose your own hours and work from home. This makes it easy to fit around your teaching job or other responsibilities. Some tutors even make up to $1000 a week by dedicating just a few hours each day.
9. Bookkeeper
Becoming a bookkeeper is a great second job, and it can typically be done from home.
Bookkeepers keep track of financial records for businesses. This could include recording transactions, managing payroll, and preparing financial reports.
You don’t need a special certification to become a bookkeeper, making it easier to start.
The best part is that you can do this job from anywhere with just a laptop and some software. This flexibility means you can work from home or even when you’re traveling.
Since bookkeeping services are always in demand, you can find clients easily. This can be a very profitable side hustle. Some bookkeepers even charge $60 an hour or more.
Learn more at How To Find Online Bookkeeping Jobs.
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
10. Freelance writer
Working as a freelance writer is a great way to make extra money.
Freelance writers are self-employed and work for magazines, blogs, websites, companies, and more. A lot of what you read online today is written by a freelance writer.
I have been a freelance writer for many years, and I really enjoy it. I have written for many different websites and companies, and I make good money doing so.
You can write from home, at your own pace, and choose projects that interest you. Many companies need blog posts, articles, web content, and social media posts.
11. Photography
Getting paid to take pictures is a popular second job idea.
What’s great is that there are many ways to get paid for photography, such as:
Stock photos – Stock image websites are popular places for photographers to sell their pictures. These sites let customers buy royalty-free photos for personal or business use. Websites, TV shows, books, social media accounts, and more use stock photos all the time. Some popular stock photo websites are Shutterstock, iStock by Getty Images, Adobe Stock, and Dreamstime.
Portraits and event photos – As a photographer, you can focus on taking portraits and event photos. This area is in high demand, especially for weddings, elopements, birthdays, and corporate events.
Post pictures on Instagram or Facebook – Social media platforms like Instagram are great for sharing your pictures and gaining followers. Many people make a full-time income from their Instagram accounts. They do this through sponsored partnerships with companies, affiliate marketing, and selling their own products.
12. Personal trainer
Becoming a personal trainer is a great second job idea. You can help people get in shape while earning extra money.
You can work at a gym or do private sessions at clients’ homes. Some trainers also provide online coaching, which gives you more flexibility.
Personal trainers sometimes create workout plans tailored to each client’s needs. They might also give advice on nutrition, and this way, they can help clients with both exercise and diet for better results.
Personal training can be done part-time, which makes it a good fit if you have another job. Many people want training in the mornings, evenings, or weekends.
13. Etsy seller
Starting an Etsy shop can be a fun and rewarding second job. If you enjoy crafting or creating handmade items, this might be perfect for you. Etsy is a popular online marketplace where you can sell unique products.
There are many things you can sell on Etsy, such as:
Etsy can be a great way to turn your hobbies into extra income.
You can learn more at How To Sell On Etsy Successfully: A Beginner’s Guide.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
14. Babysitter
Babysitting is a great way to earn extra money. You can choose your own hours, making it easy to fit it around your main job or school.
Parents always need trustworthy people to watch their kids, and they might need help for an evening out or during the day if they work long hours.
As a babysitter, you can earn around $15 to $25+ per hour, depending on your experience and location. Some families might even pay more if you have special skills, like CPR training or if you are watching multiple children.
You can find babysitting jobs through local community boards, babysitting apps, or word of mouth. Sometimes, friends or family might also need help.
15. Delivery driver
A delivery driver job is one of the most popular side hustle ideas. You don’t need a lot of experience to get started, and all you need is a vehicle and a driver’s license. Many services, like DoorDash, Uber Eats, and Instacart, let you choose your own hours. This flexibility is perfect if you have a busy schedule.
You can deliver different items depending on the service you work for. Some companies focus on food delivery, while others may deliver groceries or packages.
The pay can vary based on where you live and how much you work. Some drivers make around $15 to $25 per hour including tips.
16. Bartender
Bartending is a flexible and fun second job. You can work at bars, restaurants, or special events like weddings.
Some bartender jobs don’t require a lot of experience. You usually have to start as a barback, helping with stocking and cleaning, then learn to make drinks. Then, you may be able to move up and find a part-time job as a bartender.
17. Transcriptionist
Being a transcriptionist can be a great second job. Transcriptionists listen to audio recordings and type out what they hear. It’s a simple job and doesn’t require a lot of training.
You can do this job from home and all you need is a computer and good internet. This makes it a flexible option where you can work on transcriptions during your free time or on weekends.
There are usually some requirements. Many places want you to type fast and accurately. For others, you might need to pass a background check or transcription tests.
You can learn more at 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly.
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
18. Rent your extra space
Do you have an extra room, basement, or garage? Renting out your extra space can be a great way to earn some extra cash each month passively.
You can list your spare room on websites like Airbnb or Vrbo if it’s a room or apartment.
If you have a garage or storage space, you can rent it out for storage. Websites like Neighbor allow people to find storage options nearby.
Before you start, check local laws and regulations. Some areas have rules about renting out space, so it’s important to be informed.
19. Handyperson
Being a handyperson can be a great way to make extra money. You can help people fix things around their homes, such as fixing leaky faucets, repairing doors, or assembling furniture.
You don’t need fancy tools for many jobs, just a good set of basic tools.
Many people need small repairs done but don’t have the skills or time. That’s where you come in. You can find clients through local ads, word of mouth, or online platforms like Taskrabbit.
Working as a handyperson has flexibility too and you can choose jobs that fit your schedule.
20. Rideshare driver
Apps like Uber and Lyft allow you to drive people around and get paid for it.
One of the best parts about driving for rideshare apps is the flexibility. You can set your own hours and work whenever you want.
Most rideshare companies have an easy sign-up process. They usually require a background check, a valid driver’s license, and a car that meets their standards. Once approved, you can start accepting rides and earning money.
The earnings vary depending on your location, the time of day, and how many hours you drive. Some drivers make a nice side income by working during peak hours when rates are higher.
21. Restaurant server
Being a restaurant server can be a great way to earn extra money and is popular for evening second jobs. Many restaurants have flexible hours, which is perfect if you need to juggle another job or school.
Servers often get tips, so your income can vary day to day. Some nights are busier and can bring in more money.
22. Clean houses
Cleaning houses is a good way to earn extra money with a second job. You can work on the weekends or after your regular job.
Plus, you can choose your clients and set your own hours.
To get started, all you need are basic cleaning supplies. You can sell your services to friends and family first. Word-of-mouth is powerful, and you might get more clients through recommendations.
23. Write book reviews
If you enjoy reading and sharing your thoughts about books, you can earn money by writing book reviews. Authors and publishers value your honest opinions because they help other readers decide what to read next. Readers also enjoy reading these reviews, making it helpful for everyone involved.
Here are some websites where you can earn money by writing book reviews:
OnlineBookClub.org – They provide free books at first. After your first review, you can earn cash for each review you write, typically between $5 and $60.
Kirkus Media – They look for reviewers for both English and Spanish books, especially for the Kirkus Indie section. Reviews are around 350 words and due two weeks after the book assignment. They cover all genres, with over 10,000 books reviewed annually.
Upwork – Create a profile and set yourself up as a book reviewer. This freelance platform allows you to set your own rates, with book reviewing rates ranging from $15 to $75 per hour.
The US Review of Books – They hire freelance writers for 250- to 300-word reviews that go beyond summary to provide insights into the book. Applicants need to submit a resume, writing samples, and references.
Reedsy Discovery – Review books before they are published and earn through tips from readers, typically ranging from $1 to $5 per review. It’s a way to influence which books gain popularity early on.
Other opportunities – Websites like Booklist (pays $15 per review, focused on short reviews for libraries), BookBrowse, Women’s Review of Books, and Publishers Weekly also pay for book reviews and are actively looking for new reviewers.
You can learn more at 16 Best Ways To Get Paid To Read Books.
24. Mow lawns
Mowing lawns can be a great second job. It’s simple, flexible, and very profitable.
You can start with not a lot of money too. For example, if you already have a lawn mower, you’re ready to go, and you can start by seeing if anyone in your neighborhood needs their lawn mowed.
Pricing your services depends on the size of the lawn and the complexity of the job. Some lawns might be easy and quick, others might take more time. Many people charge between $40 and $50+ per lawn.
Frequently Asked Questions
When looking for second job ideas, it’s important to find something that fits your schedule and goals. Here are answers to some common questions about picking the best side gig and managing two jobs.
What is the best 2nd job to have?
The best second job depends on your interests and skills. Some popular side hustle ideas include blogging, proofreading, taking online surveys, dog walking or pet sitting, and being a virtual assistant. These jobs have flexibility and can often be done from home.
What are some good jobs I can do at night after my day job?
Jobs you can do at night include customer service representative, security guard, bartender, or freelance work like writing and graphic design. These jobs usually have evening shifts or can be done remotely, fitting in well with a daytime schedule.
What are some good second jobs at night from home?
If you want to learn how to make extra income while working full-time, then my favorite way is to find good second jobs that you can work at night from home. This way, you don’t have a commute and it won’t interfere with your day job. Some good evening jobs from home include blogging, taking surveys, proofreading, bookkeeping, writing book reviews, and transcribing.
How can I make an extra $1000 a month?
To make an extra $1000 a month, you may want to try freelance writing, virtual assistant work, or becoming a part-time tutor. These jobs can pay well and offer flexible hours, allowing you to work around your primary job.
How can I make an extra $2000 a month?
Earning an extra $2000 a month may require a higher-paying side gig. Options include freelance web development, consulting, or starting a small business like dropshipping. These jobs can have higher earnings but may require more specialized skills or time investment.
How to get a second job with a 9-5?
You can get a second job with a nine-to-five by looking for evening or weekend positions and looking for jobs with flexible hours such as bartending, retail cashier, or working as a rideshare driver. Online jobs like tutoring or freelancing can also have nice flexibility to work after your main job.
What is the highest paying side hustle?
The highest-paying side hustles can include freelancing in tech fields like software development, graphic design, or consulting. Real estate investment, if you have the money to start investing, can also be very high paying.
Do you get taxed more if you have two jobs?
Having two jobs can put you in a higher tax bracket, meaning you might pay more in taxes. It’s important to understand how this affects your overall earnings. I recommend talking with a tax professional to talk about your tax situation and to make sure that you aren’t overpaying (or underpaying!).
How will my employer know if I have a second job?
Your employer may know if you have a second job if it affects your primary job performance or if you disclose it. Some employers also run social media checks to see if they can learn anything about you that may hurt their business. You may want to check your employment contract if you are worried, as some employers may have clauses about working multiple jobs.
Is having two jobs worth it?
Having two jobs can be worth it if you need extra income for savings, paying off debt, or reaching financial goals. It requires good time management and can be tiring, but many find the financial benefits to be rewarding. For me, I found having more than one job well worth it because it allowed me to pay off my student loan debt quickly, save more money, and pursue my passions.
Second Job Ideas – Summary
I hope you enjoyed this article on the best second job ideas.
As you can see, there are many popular second job ideas that may interest you. From online jobs like blogging, proofreading, and bookkeeping to in-person jobs like personal training, delivery, restaurant jobs, and more, there are many ways to make extra money so that you can reach your goals.
If you need a second job while working full-time, you are not alone. Many people are in your shoes. I recommend finding something that best fits your schedule and is at least somewhat flexible so that you aren’t making yourself too tired.
For me, I have had many side jobs. One thing that has always helped me is to make sure that it would fit with my day job and be flexible – because my day job did come first. Plus, I didn’t want to waste more time than I would need to by commuting back and forth or doing things that weren’t needed.