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.
Two days after regulators levied more fines against Citigroup for poor data quality management, the megabank said that it’s not changing its expense guidance for 2024, and it will aim to absorb any additional remediation-related costs into the firm’s existing spending plan.
Citi also said it will adhere to its previously released capital distribution plan, which includes an increase to its common dividend, and it plans to repurchase $1 billion of common stock in the third quarter. In the first quarter of this year, Citi bought back $500 million of common stock.
The updates came during Citi’s second-quarter earnings call, less than 48 hours after the Federal Reserve and the Office of the Comptroller of the Currency assessed a total of $136 million in civil money penalties against the bank for violating a pair of 2020 consent orders related to its risk management and internal controls systems.
Citi, which is engaged in a multiyear risk-management overhaul to correct and enhance those systems, even as CEO Jane Fraser tries to simplify the company and drive higher returns, has 30 days to submit a “resource review plan” to the OCC. The plan is supposed to show that the bank has enough resources allocated to the overhaul to achieve compliance in a timely and sustainable manner.
Citi’s plan, which executives say is already being drafted, will also help determine if additional resources, including more spending, are necessary to finish what the $2.4 trillion-asset company has called a “transformation” of its risk-management programs.
Citi “has been able to find productivity opportunities” this year to keep it within its stated expense guidance, and the bank will stay focused on finding more such cost savings in the event that more compliance spending is needed, Chief Financial Officer Mark Mason told analysts Friday.
Citi has been forecasting total operating expenses of between $53.5 billion and $53.8 billion for the full year. On Friday, Mason said the final tally will likely wind up on the higher end of that range.
“We are actively managing that with an eye towards what’s required” for the risk management overhaul in order “to keep it on track, to accelerate in areas where we’re behind,” Mason said.
Analysts pressed Mason and CEO Jane Fraser about the bank’s lack of sufficient progress, at least in the eyes of its regulators. Mike Mayo of Wells Fargo Securities asked why the 2020 consent orders haven’t been resolved.
“Is it not enough people? Is it not enough money? Do you need to look at it in a different way?” Mayo said.
Fraser responded that the project “is a massive body of work” with multiple layers, and pointed out that the regulators did acknowledge this week that Citi has made some progress.
Vivek Juneja of JPMorgan Securities wondered how much more time Citi needs to fix everything.
“How much longer for you to sort of get this past you?” Juneja said. “Are you talking a couple of years?”
The bank is trying to “get this done as quickly but as robustly as possible,” Fraser responded.
“We’re doing this by making strategic fixes and investments, rather than what I would call the old Citi way, which is a series of Band-Aids that remediate but don’t actually fix the underlying issue,” she said. “I’m not expecting this to change the time frames.”
Amid Citi’s latest regulatory troubles, the company reported a solid quarter. Total revenues were $20.1 billion, up 4% year over year, in part because each of the bank’s five business lines, including its long-languishing wealth segment, grew profits during the second quarter.
Excluding the impact of divestitures, firmwide revenues rose 3%. As part of Fraser’s plan to turn around Citi, the bank has been selling and winding down certain non-U.S. consumer franchises.
The increase in revenues and a decrease in expenses helped drive up Citi’s net income, which totaled $3.2 billion, a 10% increase from the same quarter last year.
Growth in Citi’s banking segment, which includes both business banking and investment banking, was particularly strong compared with the year-ago period, rising 30%.
Operating expenses declined 2% year over year to $13.4 billion, primarily as a result of an organizational simplification and other cost-reduction measures, Citi said.
The decrease in expenses was partially offset by the regulatory fines and other ongoing investments in the risk management overhaul, according to the bank.
Despite the industrywide drop in volume, four of the top 10 reverse mortgage lenders in the country recorded gains in June.
Finance of America (FOA) added 4.1% to its endorsement tally to finish at 534 loans, after lagging behind Mutual of Omaha Mortgage in recent months. Guild Mortgage also posted a gain of 19.1% to 56 loans, while South River Mortgage and HighTechLending also managed positive growth in June.
When asked if the decline in case numbers could lead to a more tepid summer of originations, RMI President John Lunde said it was likely.
“From a case number perspective I don’t think we’ll see dramatic growth in endorsements this summer, but more of a sideways action in the recent range,” he said.
Each type of reverse mortgage use case also declined in June. “Equity takeout” loans — reverse mortgages that are neither purchases nor refinances — dropped by 4.8% from May. Purchases fell by 10.8%, while HECM-to-HECM refinances saw a large drop of 27.5%.
“It doesn’t surprise me that refis declined since it was likely driven primarily by the lending limit increase earlier this year, which was always a very limited opportunity without rates declining significantly,” Lunde said of the data. “Purchase is one we’re watching closely with the recently implemented tweak to closing costs that we expect to open that door more fully. Equity takeout is the most stable as the largest segment so the lower volatility in May makes perfect sense.”
When asked how four of the top 10 lenders managed to avoid decreases in their endorsement totals in June, Lunde said that geography is a key predictor of how such things can play out. Individual choices that lenders make in appealing to potential clients often dictates their own performance.
“Geographic regions are usually more aligned with overall industry trends, whereas individual lenders can create significant performance gaps purely from business decisions like marketing spend increase/decreases, prioritizing or de-emphasizing endorsements from a resource perspective, or farming attractive in-house sales niches (like forward loan officer relationships or servicing portfolios),” he said.
Geographically, the region that endured the least severe drop is the industry’s most prominent one. The Pacific/Hawaii region fell by only 2.6% to 594 loans for the month.
As FOA and Mutual of Omaha continue to battle for reverse mortgage industry supremacy, Lunde and RMI will be watching closely, he said.
“I do watch with interest as these two compete for the top spot for the foreseeable future as they are very different stories,” Lunde explained. ”Mutual of Omaha has a great brand and customer base outside of reverse that provides a tailwind while FOA has led the industry for several years in wholesale and acquired the largest lender with a particular strength in retail. We’re excited to see both challenging to be the champion.”
As has been the case for a while, HMBS issuance remains at historically low levels, and is not expected to reach anywhere near the records set in 2022 by the time this year winds down, according to New View commentary that accompanied the data.
HMBS issuance fell by $29 million from May to a total of $497 million in June, but the same raw number of pools were issued in June as in May (86 pools). Among leading companies, FOA again claimed the top issuer spot with $159 million, a $2 million increase over May’s figure.
Longbridge Financial saw an $8 million month-over-month dip to $110 million, while Mutual of Omaha and PHH Mortgage Corp. — which will soon rebrand to Onity Mortgage — issued $95 million and $85 million in June, respectively.
When asked about the variance between the issuance levels of the top companies, New View partner Michael McCully said it doesn’t play much of a role.
“There is nothing to be read from any variance in issuance between the top four issuers; in the aggregate they have maintained a market share between 90% and 95% for years,” he said. “But, 11 issuers overall is over-capacity for an industry projecting to originate less than $6 billion in 2024.”
June’s original, first-participation production also saw a decline in June to $331 million, down from $361 million in May. Year over year, new loan production was substantially lower when looking at data from the same period in 2023, New View explained. Of the 86 pools issued in June, 24 were first-participation pools while 62 were tail pools with subsequent participations.
Changes on a monthly basis, McCully said, are largely immaterial.
“The industry is not in a good place with such low volume,” he said. “Let’s see how HMBS 2.0 affects the industry, and whether rates start to trend down more permanently.”
When asked about how New View is projecting issuance for the end of the year, McCully said it’s pretty simple to do.
“All else equal, doubling first half production gives a reasonable proxy for full year issuance,” he said.
New View also published updated HMBS issuer league tables for the first half of 2024, showing FOA with 31.9% of the overall market. It was followed by Longbridge (21.4%), Mutual of Omaha (18.4%), PHH (18%) and Traditional Mortgage Acceptance Corp. (3.6%).
Federal student loan interest rates for 2024-25 are now live. Some have reached record highs, increasing the cost of college for people who will take out student loans for the upcoming school year.
Here’s how the current 2024-25 federal student loan interest rates compare to 2023-24 rates:
Direct unsubsidized loans for graduate students: 8.08% interest rate for 2024-25, up from 7.05%
PLUS loans, available to parents and grad students to fill in funding gaps: 9.08% interest rate for 2024-25, up from 8.05%.
Since 2006, all federal student loans have had fixed interest rates. Undergraduate direct loan interest rates haven’t been this high in 16 years, since the 2008-09 academic year. (The standing record is 6.8%, for loans disbursed between 2006 and 2008.) Interest rates on direct graduate loans and PLUS loans have never been this high.
The latest federal interest rate hikes come on the heels of major FAFSA errors, which impacted and delayed financial aid offers, including federal loan eligibility, for millions of students. For some families, private student loans with lower interest rates may look more attractive this year — but private loans come with fewer borrower protections and no forgiveness options.
Rising rates increase the total cost of college
Each spring, the government sets federal student loan interest rates for the academic year ahead. The rates are effective from July 1, 2024 to June 30, 2025, and they apply to all borrowers who take out new federal student loans for the 2024-25 school year. Federal student loans have fixed interest rates, so they won’t change during the repayment period — which typically lasts from 10 to 25 years, depending on your repayment plan. (If you’re already repaying older student loans, this interest rate hike doesn’t affect you.)
Ultimately, higher interest rates will make college more expensive for the millions of college students and their families who take out loans. Today, 42.8 million people collectively owe $1.62 trillion in outstanding federal student loans, per Department of Education data.
That tally may grow in the coming years: A 2024 high school graduate heading to college this fall could amass about $37,000 in student loan debt while pursuing their bachelor’s degree, according to a recent NerdWallet analysis. Dependent undergraduate students can take out no more than $31,000 in federal loans, so more students may turn to private loans to fill the gaps.
Here’s an example of how the higher interest rates can hit your wallet: If you start college in the fall and borrow $31,000 worth of unsubsidized federal direct loans over the course of your undergraduate education, with a 6.53% interest rate, you’ll wind up paying back about $42,315 under a standard 10-year repayment plan. If you’d started college in 2020-21 and taken out the same $31,000 in unsubsidized federal loans with a record-low 2.75% interest rate, you’d have had to repay around $35,510 over 10 years — a $6,805 difference.
In practice, you could pay even more. You can’t borrow the full $31,000 at once — the capped amount is split up over the years you’re in school. If you’ll be a college freshman in the fall, interest rates could increase in the three (or more) years to follow.
Federal vs. private student loan interest rates
In recent years, federal student loans have offered lower interest rates than private alternatives — but that may no longer be true for some borrowers. Currently, private student loans for undergraduates have interest rates from 3.85% to 15.9%, according to a May 2024 NerdWallet analysis.
“More than ever, we are really encouraging our families to be good consumers,” says Stacey MacPhetres, senior director of education finance at EdAssist by Bright Horizons.
Shop around for private student loans and compare interest rates like you would for a mortgage, MacPhetres adds.
To qualify for the lowest rates on private student loans, borrowers must have a high credit score. Many students will need a parent or co-signer with excellent credit to co-sign the loan and accept equal legal responsibility for repaying it.
Federal student loans don’t allow co-signers, and only federal PLUS loans require a credit check. Other federal student loan borrower protections not typically offered by private lenders include:
As a general guideline, borrowers should prioritize federal student loans. If they still have remaining costs, private student loans are a good option to fill in the gaps.
But when it comes to PLUS loans, private alternatives may be a better choice this year if you can qualify for a lower interest rate. PLUS loans don’t offer the same robust protections and flexible repayment options as other types of federal student loans, and they have a 4.228% origination fee that most private lenders don’t require.
Submit the FAFSA and free up cash flow to minimize borrowing
Evaluate your family’s capacity to pay out of pocket or consider using some savings or investments to cover education bills this year, MacPhetres says. “We’re really trying to encourage everybody to exhaust all of their other options before borrowing at all, which includes federal student loans.”
You can also minimize your total college debt and interest payments by leaning on funding sources you won’t have to repay, like scholarships, grants and work-study. You must submit the FAFSA for each year you’ll be in school to qualify for most grants and work-study. That includes the federal need-based Pell Grant, which can give you up to $7,395 per year in free money to pay for college. Many scholarships require applicants to submit the FAFSA. You also need to submit the form to be eligible for federal student loans.
The Free Application for Federal Student Aid is open until June 30, 2025, for the 2024-25 school year, but you should fill it out as soon as possible to increase your chances of getting more money — some types of aid draw from limited pools and can run out.
Another strategy to reduce borrowing: See where you or your child can trim college costs in the first place.
“Your student doesn’t have to live in the best residence facility right now … or maybe they don’t need the 21-meal plan if they have never eaten breakfast in their lives,” MacPhetres says. “Little things that you might not think would have a significant impact can certainly help in trying to reduce your overall spending.”
Newrez let go of dozens of its Arizona employees in late June, further trimming workers of acquired Computershare Mortgage Services.
The top-ranked mortgage lender, owned by asset manager Rithm, let go of 78 former Computershare workers based in Tempe, Arizona, per a WARN notice filed on June 28.
Newrez decided to reduce some of its newly added workforce in certain geographies because it was creating redundancies, said a company executive. Employees impacted are entitled to a severance package and Newrez will be offering job transition assistance, they added Monday.
Since its acquisition of Computershare Mortgage Services and affiliate Specialized Loan Servicing LLC., hundreds of employees have been axed by the mortgage lender. It is not uncommon for repetitive positions to be eliminated following the completion of an acquisition, industry stakeholders have noted.
Thus far, reductions have hit offices in Florida, Colorado and now Arizona, with the total tally of employees let go lurching over the 500 mark.
Roles impacted have included numerous executive positions, data analysts, client relations associates and mortgage loan processors.
The purchase of Computershare cost Rithm close to $720 million and was paid for through a mix of existing cash and available liquidity on the balance sheet, as well as additional mortgage servicing rights financing. The deal was announced late last year and closed in early May.
Integrating the company and its affiliate adds $149 billion in unpaid principal balance of MSRs to Newrez. This includes $104 billion in third-party servicing to Newrez’s portfolio, the company said in a press release.
It also further expands Newrez’s presence in servicing, something the mortgage lender has been prioritizing. Servicing is considered to be the natural hedge to originations as interest rates rise, and the opposite is true when they fall.
“SLS will further expand our robust subservicing business and bring with it a great reputation in the market – the team and Newrez share a commitment to delivering a best-in-class experience to both clients and homeowners,” said Baron Silverstein, president of Newrez, in a press release in May. “The power of the combined platform will strengthen Newrez’s positioning in the market.”
(Bloomberg) — The biggest long-duration bond ETF raked in record cash this week as a cohort of investors recalibrate bets on when the Federal Reserve will cut interest rates this year.
BlackRock Inc.’s $54 billion iShares 20+ Year Treasury Bond ETF (ticker TLT) attracted a $2.7 billion inflow on Monday, its biggest one-day haul since its 2002 inception. That brings its tally to roughly $4.4 billion for the year so far, despite racking up a nearly 3% loss.
It comes as investors begin to reshuffle their portfolios at the mid-year mark, while traders earlier this week embraced bets on 3 percentage points of cuts over the next nine months as economic growth cools.
“It looks like investors are starting to fight the Fed again,” said Athanasios Psarofagis, an ETF analyst at Bloomberg Intelligence. “They’re betting on a Fed cut — you’d get a wicked price move if you’re right,” he said, adding that mid-year portfolio rebalancing also could have played a role.
Longer-dated bonds may gain as investors prepare for the central bank to cut interest rates, with many looking to havens should the economy slow down. An index tracking Treasuries on a total-return basis has gained about 1.7% so far in June, on track for its best monthly performance in 2024, and all but erased its losses for the year.
Fed officials recently forecast that they’d be reducing rates 25 basis points by the end of this year — and a total of 125 basis points by end-2025. The interest rate swap market has priced in deeper cuts, penciling in 165 basis points of easing by the end of next year.
–With assistance from Isabelle Lee.
More stories like this are available on bloomberg.com
While bad financial decisions can set you back, it’s important to remember that mistakes can also be an opportunity to learn and grow. While you can’t go back and undo the things you’ve done or didn’t do (if only!), you can acknowledge where you went wrong and change your behavior moving forward.
Below, take a look at some of the most common financial missteps people make, as well as what can be done to overcome them.
15 Bad Financial Decisions
Here’s a look at where things can go wrong, and how you set them right.
1. Not Paying Down Your Credit Card Debt
Just making the minimum payment on your credit cards each month can drain your pockets and damage your credit. The reason: When you carry a balance, interest keeps on building, making the total balance higher and even more challenging to pay off. Debt also shows up on your credit report and can have a negative effect on your scores.
To break the pattern, consider putting any extra money toward the card with the highest interest rate, while paying the minimum on the rest. When that card is paid off, you can tackle the next-highest interest debt, and so, until you’re out of debt.
Recommended: Creating a Credit Card Debt Elimination Plan
2. Putting Important Financial Decisions off to the Side
Delaying important financial decisions, such as saving, investing, and paying off debt, can cost you money and put your goals further out of reach. A good way to stop the procrastination cycle is to break down your financial goals into small to-dos that feel manageable. You might want to set aside time once a month to check in on your finances and make one small change that can help you get closer to your goals.
3. Not Protecting Personal Financial Information From Fraud
Identity theft and financial fraud are all too common these days, and not taking a few steps to protect your personal and financial information can come back to haunt you. The financial damages caused by fraud can last for months or even years. What’s more, the recovery process usually isn’t easy, and may even involve working with the IRS or Social Security Administration to clear your name.
To protect your information, it can be smart to regularly check your credit reports (and report any suspicious activity immediately). You’ll also want to avoid sharing your personal data unless absolutely necessary and never over public wifi.
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4. Overspending so You Can’t Save
Overspending means you’re spending everything you earn (and not putting anything into savings) or, worse, you’re spending more than you’re bringing in. This can be a costly financial mistake that puts your goals further from your grasp. It means you may be living just paycheck to paycheck.
To change course, you may want to take a look at the last three months of financial statements and assess exactly how much you are spending each month and on what. This can be eye-opening, and you may immediately see some easy ways where you can cut back. Any money you free up can then become money saved, and little by little, it will add up.
5. Not Having Any Backup Options
A recent study found that not even 44% of Americans could not afford an unexpected expense of $1,000 from their savings. Without an emergency cushion, many Americans are at risk of going into high-interest debt should they face an unexpected bill or any loss of income.
It’s generally recommended to have enough cash set aside to cover all your living expenses for three to six months. In some situations, this amount should be as much as 12 months. To get there, you may want to put a percentage (10%, for example) of your monthly take-home income into a high-yield savings account or online bank account — online banks often offer higher interest rates than traditional banks. If that doesn’t seem doable, it’s fine to start smaller and gradually work up. Consistently saving a modest amount, such as $25 per paycheck, can be a good habit to start.
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6. Paying High Amounts on Multiple Monthly Subscriptions
Subscription streaming services, box deliveries, and apps that bill on a monthly basis can add up to a significant sum. And, since these service providers typically bill automatically, you may not even be fully aware of what you are paying for each month, or that you may be overpaying for some of these services.
To cut your monthly bills, go through your statements and tally up everything you are currently paying for on a recurring basis. Can anything go? Could you get a better deal on some of these services? It never hurts to shop around or call up a service provider and ask for a lower price.
7. Not Investing Any of Your Money
You may think you have to be rich or an expert on stocks to start investing, but this is a common money misconception. And one that can leave you ill prepared for the future.
While investing can be intimidating (and does come with some risk), there are easy ways to get started. If you don’t want to do the work of picking and choosing investments, for example, you might start investing with a robo-advisor. These are digital platforms that provide automated investment services based on your goals and tolerance for risk. Robo-advisors are typically inexpensive and require low opening balances.
8. Not Planning for Retirement
When you don’t plan for retirement, you forgo the factor of time that is key to achieving your goals. Giving your investments a long time to grow is vital to having a nest egg you can retire on. If your employer puts any matching funds towards your retirement fund, that can be a valuable boost, too.
However, there is more to retiring than starting an IRA or contributing to a 401k. You’ll also want to consider when you want to retire, what kind of lifestyle you will want to lead, and how much money you will need. This can help you determine how much you should be putting away each month starting now.
9. Making Small but Unnecessary Purchases
An iced cappuccino here, a pay-per-view there. These little extras may not seem like a big deal, but they add up. Consider that spending just $50 a week eating out costs you $2,600 a year. That sum could go a long way toward paying off your credit card or car and help you take a big step toward achieving financial freedom.
To curb impulse buys and cut back on spending, you might want to set a weekly spending limit for “extras.” (Yes, you are earmarking some money for fun little splurges.) To keep to your limit, consider taking out that amount of cash at the beginning of the week and leaving your credit card at home. That way, when the money’s gone, you can’t spend any more.
10. Allowing Your Credit Score to Drop
A low credit score can keep you from obtaining competitive rates on loans and credit cards. It could block you from housing and employment opportunities. Poor credit can also be costly, since the financing options available to you will be more expensive.
To start building a better credit profile, you may want to put all your bills on autopay, so you never make a late payment. Paying down any credit card debt can also be helpful, since how much of your available credit you are using also factors into your score. If you have an old credit card you rarely use, it can be a good idea to still keep that account open, since the length of your credit history is another factor that impacts credit scores.
11. Not Making Budgeting an Important Priority in Your Life
Budget may sound like a bad word. But in truth, not tracking how much money you’re making versus how much you’re spending can be a bad financial decision with many repercussions, including never getting ahead and having constant money stress.
Making a budget, on the other hand, can mean the difference between staying in debt vs. getting out of it, remaining in your rental vs. becoming a homeowner, and working overtime vs. going on vacation. Convinced? You can start budgeting by assessing what’s currently coming in and out of your bank each month, and making a plan for how you want to allocate your income, making sure that some money goes to savings each month. There are multiple budget methods and apps; take some time to experiment until you find the right fit.
12. Financing Purchases Rather Than Saving for Them
While some purchases, such as a house, usually require financing, many others can be achieved through saving instead of going into debt. Whether you want a new laptop or a high-end refrigerator, financing can make a big purchase more expensive. Plus, the ease of buying on credit can make you think you can afford a lot more than your income allows.
A wiser strategy can be to determine what you want to buy, how much it will cost, and when you, ideally, want to get it. You can then start putting money aside each month and when you meet your goal, buy the item with cash.
13. Using Savings to Pay Off Debt
It may seem counterintuitive, but paying off debt with your savings is not always a good idea. Draining your bank account can leave you vulnerable to financial emergencies, causing you to plunge back into debt.
A better strategy can be to use a debt repayment method such as the snowball method. This involves putting extra money toward the smallest revolving debt balance each month, while continuing to make minimum monthly payments on your other debt. When the smallest balance is paid off, you can move on to the next smallest balance, and so on. This can help you start saving money right away and motivate you to keep going.
14. Withdrawing From Retirement Savings Early
It can be exciting to watch your retirement account grow throughout your career. And, it can be tempting to want to touch that money before you are officially “retired.” However, taking early distributions from your retirement account can be among the worst money mistakes you can make. For one reason, you will likely have to pay penalties and income tax on the amount you withdraw. For another, you will lose the opportunity to continue accruing gains on that money.
Remember: The main benefit of a retirement account is to let your money compound and grow over time. When you withdraw retirement funds early, you lose that opportunity to secure your future and take a big step backward.
15. Not Recognizing and Avoiding Scams
Yes, it’s getting harder to detect scams; they are becoming ever more sophisticated. And they prey upon both young and old consumers. To avoid scams, you’ll want to be suspicious of any text, email, or snail mail offer that seems too good to be true, and avoid clicking on any links in an email or text claiming to be from one of your financial institutions. If you receive this kind of message, a smart move is to call customer service or log onto your online accounts to see if the information in the email or text is correct.
Also beware of appeals with a sense of urgency; say, that you must pay a fee immediately to unlock your account or receive delivery of an important package.
Since scams are constantly evolving, it’s worth your time to search online every six months or a year to see what’s new and make sure you have your guard up as much as possible.
Tips for Recovering From Bad Financial Decisions
If you’ve made some poor financial decisions, you might feel embarrassed or scared. It can help to remember that one accident or blunder doesn’t spell doom for your finances forever. Here are some ways you can start turning things around.
Acknowledging Bad Financial Decisions and Taking Action
Even if you’ve made one of the worst money mistakes, a smart first step is to simply acknowledge your misstep, take a step back, and at first do nothing. A rash attempt to fix a problem can actually make it worse. Once you’ve accepted and assessed the damage, you can put a recovery plan into action.
Taking Steps One at a Time
Building your credit or paying off a mountain of credit card debt won’t happen overnight. And, if you set your sights too high, you might be tempted to give up before you even get started. A better bet is to break your larger goals into a series of small, achievable steps. Each time you accomplish one of these mini-goals, you’ll likely feel a sense of accomplishment. This can motivate you to save money and crush other goals, little by little.
Do Not Shame Yourself, but Forgive Yourself
Everyone makes mistakes. Even if you have been doing your best, it’s possible to have a credit card balance get out of hand or have your identity stolen after you accidentally click on a phishing text link.
Forgiving yourself is crucial to your emotional health and will help you take positive action to undo your mistake. A bad decision doesn’t have to define you; instead, it can be something you learn from and overcome. The mental energy spent beating yourself up can be better used to help address the problem.
Improving Your Money Mindset
If you have a positive money mindset, you will likely make better money decisions. Having a negative view, on the other hand, can keep you from setting goals and taking positive action. For example, if you think you will never get out of debt, you may not feel motivated to even try. However, putting a positive spin on the situation — that, with a plan, you will be able to one day be debt-free — can motivate you to start (and keep) attacking your debt.
The Takeaway
Though everyone tries to do their best with their money, mistakes happen all the time. No one likes losing money, but it’s vital to remember that one or even several financial slipups can be overcome by keeping a positive mindset and taking the recovery process one step at a time.
If you want to gain better control of your finances, help is available, starting with the right banking partner.
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FAQ
What are the consequences of poor financial decisions?
Poor financial decisions can lead to a low credit score, lack of savings, and overreliance on debt. It can also make you vulnerable to financial emergencies and limit your access to loans and credit cards with favorable rates and terms.
Do bad financial decisions lead to bad financial habits?
Yes, if left unaddressed, bad financial decisions can lead to bad financial habits. Not putting money aside for emergencies, for example, can cause you to rely on your credit card to cover a large, unexpected expense, and lead to a cycle of high interest debt that can be hard to get out of.
Can bad financial decisions be overcome?
Yes, you can overcome bad financial decisions by identifying where you went wrong and coming up with a realistic plan to address the problem moving forward. You can also likely benefit from budgeting and managing debt well.
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Inside: Here are fun things to do with no money. You don’t have to spend money to enjoy yourself! Plus you save money!
Having fun doesn’t have to cost a fortune! You can have a good time without spending a dime.
But, that is the trap, we find ourselves in. We believe that in order to have fun, you must spend money.
However, we are going to debunk that myth.
It is possible to have fun without spending money. This is something my family does ALL-THE-TIME. There are plenty of places to go when you have no money. There is so much available in our society to explore that you never get bored or run out of ideas. And your wallet and bank account will thank you!
If you are looking for fun things to do when hanging out with friends or fun things to do with kids, your boyfriend, girlfriend, mom, spouse, or anyone in your life, this list is for you!
You will find plenty of activities to do at home, at night, or near you.
Plus the best part… we have tons of memories and experiences from these no money activities ideas!
Today, you will get a glimpse into how you can live differently with your money. Show you fun things to do when you’re broke. Maybe you’re not broke, but choosing to live a frugal lifestyle like us. Either way, you will save money along the way that you can use for something else.
It doesn’t matter if you make $15 an hour or have a 6 figure salary, these tips are for you!
We have found plenty of things to do without spending money.
Today, you are going to learn fun stuff to do that doesn’t cost money.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What Can You Do Without Money?
Honestly, a whole lot.
There are so many free activities available today. You just need to put on a different perspective than the urge to spend money. These no money activities will keep your hard-earned cash in your hands and then you can use it towards your money goal. That is a win! Actually a HUGE WIN!
The question is… are you willing to try something new? In this case, something new would be a money free weekend or maybe a no spend month.
There are so many free fun things to do available to us, but we opt to spend money because that is the natural societal habit. Whatever your reason for finding fun things to do that don’t cost money, you are in the right place.
We are going to cover an extensive list of things to do instead of spending money.
This will make your no spend challenge easier or just a desire to save more money to reach your money goals.
Without further ado, let’s cover the 101 plus things to do that don’t cost money.
Fun Things to Do With No Money
We are going to dive into plenty of things to do instead of spending money. This list might surprise you with how many things to do for free.
For the frugal green person, this is exactly what they want to do.
You will find specific ideas for fun things to do with friends, over here.
1. Call a Friend: Back in the day, we spent many hours on the phone just talking with our friends. (Hint: like hours on end talking). Pick up the phone and call your friends. I am pretty sure you will come up with another fun thing to do next.
2. Bucket List: This is a must-have for everyone! Do you have a bucket list of things you want to do? Use timeframes to help create your list – one month, one year, three years, five years, 10 years, 20 years. Or in your lifetime? Don’t be worried if some of these ideas on your bucket list cost money. That will be figured out later. It doesn’t cost any money to make your bucket list.
3. Head to your Local Library: This is the best way to begin a frugal lifestyle. Libraries are jam-packed with free things – books, music, videos, games, or events. Plus you can find options for physical items as well as digital versions. Many libraries now have maker spaces, interaction labs, and kid play areas. These STEM spaces are available to further your creativity and not to spend money on equipment. Check to see if your library offers 3D printing!
4. Volunteer Usher. This is a great tip for Money Bliss reader, Elizabeth and one many of my friends did recently. By volunteering your time, you are able to check out the hottest concert or play for free. The key is your availability and finding the right contacts.
5. Explore Like a Tourist: Have you explored your own city the way you would if you were traveling? More than likely not. There are so many no money activities available. Just grab a tourist guide and start exploring.
6. Geocaching: Join in on the world’s largest scavenger hunt. It is easy to participate and a free activity. The goal is to catch hidden caches using GPS coordinates. All you need is a smartphone or a GPS device to participate. Time to find your next treasure!
7. Volunteer: Have you a passion? Then, find a local charity where you can volunteer. There are plenty of great organizations that are always looking for additional help to reach and help
8. Games: This is a favorite in our house. Each Sunday, you can find us playing games. Whether a card game, dominos, or board game, the options are endless. This is a class thing to do with friends and family. One of our favorites is Taco vs Burrito!
9. Get Outside: We are blessed to live in such unique and beautiful areas. Yet, we barely manage to step foot outside. As a family, this is one of the best ways we save money. It probably tops my list of the best frugal living tips. The world is full of free things to do for free and explore!
10 Start a Club: Remember your favorite after-school club from elementary school? What was your favorite part about it? More than likely, it was about connecting with your friends with the same interests and spending time together. The same concept is the same as adults. Dedicated time to hang out with your friends with the same interests. There are plenty of clubs that you can start. Here are some ideas: reading club, sewing club, cooking club, fishing club, mom and tots club, etc.
11. Explore the Outdoors: Fresh air is amazing for our bodies. Plus our world is filled with no money activities to do. Get outside, explore, and see your surroundings in a fresh perspective. You don’t need a ton of fancy equipment that comes to mind when wanting to explore nature. Just head outside and follow where your feet take you.
12. We Got No Money Party: When you are looking for places to hang out with friends, look no further than your own place. Gather some friends and have them over for the night. The only ground rule is they can only bring food and drinks from their house. Same goes for games and other fun activities.
13. Teach Others about your Hobby: What is your passion? Teach others about your favorite hobby. Who knows… maybe you can turn it into a side hustle and earn extra cash.
14. Scavenger Hunt: Kids love scavenger hunts and guess what… inside every adult is someone who loves a good scavenger hunt. Plenty of free scavenger hunt ideas with a little Google search.
15. People Watch: This is probably one of my favorite money-free activities to do when bored especially at IKEA. Just head to any local place and people-watch. Many times it is better than TV sitcoms. Grab a friend and you can create stories to attach to those you are observing.
16. Puzzles: When is the last time you have taken on a puzzle? Research shows it is one of the best things we can do to slow aging and diseases like Alzheimer’s. More than likely, you don’t have an extra puzzle lying around. Ask to borrow some from friends. Also, you can get ones for free on Next-door or Buy Nothing Facebook groups.
17. Host a Vision Board Party: This is a trending activity right now! There is no better time to manifest your dreams and goals than with your favorite people. Plus you can create a better life for yourself. Learn how to host a vision board party today!
18. Museums and Zoos: Many of the smaller museums and zoos are free entry. To check out the major museums and zoos, check their website to see when they offer free days. Most local cities are required to offer many free days in order to get funding from the city. Another way to get free admission is with your credit card, business affiliation, or college affiliation.
19. Free Tours: These are places to go when you have no money, especially in a big city. The options are endless on the types of businesses in the area. Some free tours include the U.S. Mint, candy factories, capital building, parks, brewery tours, etc. The list can be endless when finding free tours.
20. Apple Classes: Want to learn how to use your phone and be more productive? Need to cap your kid’s time on their devices? Want to learn how to take better pictures with your iPhone? You can do that in one of the many classes. Look for classes near you.
21. Pinterest Party: Let’s face it… We pin a lot of things that we want to do. Recipes we want to cook. Desserts to book. Crafts to make. Skills to learn. Time to brush off those Pinterest boards and find something to do.
22. Movie Marathon: Time to sit back and enjoy all of your favorite movies! If you don’t already have cable or Netflix, then you can still do this without spending money. Start a free Paramount+ trial (just make sure to cancel it), head to the local library, or swap movies with friends.
23. Learn a New Skill: Another productive way to use your spare time is learning a new skill. With learning, the options are endless. With the library and YouTube, it is easy to learn new skills without paying for lessons. The new skill I want to learn is how to play the drums. What is the new skill you want to learn?
24. Local Events Calendar: Hello free activities! Every city will offer some local activities throughout the year. Just mark your calendar. These events are perfect for hanging out with friends and for local fun.
25. Go for a Walk or Run: This is the ultimate no money activity. Grab your shoes and head outside to clear your head. The fresh air will do wonders and doesn’t cost a thing. Maybe this is the time to challenge yourself for that 5K or half marathon?
26. Go for a Bike Ride: For those who own a bike, it would be time to dust it off and go for a bike ride. This is a great way to exercise without a gym membership. Plus, if you are a spender on the way home from work, then look at commuting on your bike to avoid temptations. Personally, I enjoyed cycling so much that it made sense to upgrade my road bike. There may be a small cost to maintaining a cycling lifestyle, but it brings hours of exercise and I am too tired to do anything later.
27. Go Hiking: Find a local hiking trail. Before you go, make sure you have water and some sunscreen.
28. Make a Meal: The caveat is you can only use ingredients that you have currently in your house. No running to the store and spending money. Create a meal from what you have available.
29. Go on a Picnic: This is a favorite in our house! Change up your lunch or dinner by eating in a different location. Load uptake food, choose a spot, and go! You can go on foot, on bike, or take a little trip by car. Either way, you have to eat!
30. Write a Letter: When was the last time you wrote a letter? Not an email, text, or social media post. An actual letter that can be given to someone or mailed for a tiny price. Another great idea is to write a letter to someone to open at a future date. Some examples include: to your kids on their 16th birthday or when they get married.
31. Swap Items: This is one of the best ways to not spend money and get something in return!! Go shopping through someone else’s stuff and swap. You can create a host a swap party for items like clothing, toys, games, kitchen supplies, home decor, books, tools, etc. One person’s trash is another person’s treasure. This is something that you can do in person or online.
32. Birdwatch: Never been bird-watching? Then, grab a bird-watching book from your local library to make sure you can tell the birds apart and learn a few new facts.
33. Pick up a Book: What do you prefer – fiction or nonfiction? There are plenty of books to keep you entertained for hours. Also, you could ask a friend to read the same book and then plan a time to discuss it. If your local library doesn’t offer what you are looking for, then start a free trial of Kindle Unlimited.
34. Check Out a Local Gym: Almost all gyms want people to check out their place. Many will offer a free class or up to a free week. Try out a new spin class, yoga class, pilates class, or CrossFit. There are so many gyms popping up on every block that this can keep you busy and fit for a couple of months.
35. Photography: We all know that we have one of the best cameras at our disposal, but do you use the camera in your phone to the best of its ability? You can fiddle around with it, check out some YouTube channels, or head to the Apple store for a free class.
36. Photo Shoot: I stopped buying professional pictures of my kids a long time ago. There wasn’t a point in spending the extra money because as a parent I seriously have taken thousands (if not hundreds of thousands) pictures of them. And we have saved tons of money over the years, especially on sports and team photos.
37. Slideshows: Now, that we have tons of photos… what should we do with them? Turn them into a slideshow or some other digital way to view your photos.
38. Nature Walks: These types of walks have a purpose. To explore and realize the nature around you. Typically, in our house, the goal is to find 10 different types of objects (smooth, rough, prickly, big, small, etc.) or look for something with the same characteristics (like various rocks). The list of types of nature walks you can come up with is endless.
39. Go Sightseeing: There are so many beautiful places to look at in our cities. You can head up to the mountains, the beach, or even urban areas. You can plenty of things to do around here. Don’t forget your camera!!
40. Clean Your House: Really? Does this have to go on the list of ways to spend weekends with no spending money?!?! But, what a great way to spend your time especially when bored. Plus you will have something to show for your elbow grease and hard work.
41. Projects You Put Off: Raise your hand if you can think of a project or two (or ten) that you have put off. When you don’t want to spend money, it is a great time to dust off that list and dig in.
42. Make a Budget: If you are broke or struggling with no money, then it is time for a budget. A budget isn’t meant to be constricting. It is designed to help you spend money the way you want to. Manage your money ahead of time. Learn how to make a budget.
43. Take Surveys for Money: Have spare time, then make some extra money by taking surveys. One of the easiest things to do and not spend money. The best surveys to do include:
44. Declutter: This is one of my favorite things to do, but also one of the hardest. Why? I realize all of the money I spend on wasteful items that we don’t even use in the house. Many were impulse purchases or out of boredom. Then, it is hard for me to declutter and get rid of the items because of wasted money. However, living with less stuff means more meaningful time on things that matter.
45. Dive into Basement Storage: You could be doing one of two things. Cleaning out the basement area and getting rid of the unnecessary stuff burdening your life. Or pull out some of your favorite treasures and find a way to use them.
46. Clear Out Garage: This one makes me cringe, too! A great way to make productive use of your time on a no spend day is to clean out the garage. Clean out the unnecessary items and organize what is left. That way you can find a screwdriver the first time you look.
47. Neighborhood Cleanup: Since we are in the cleaning mood, let’s spread out to your local neighborhood. This is a great activity to do with a group of friends. With just a trash bag, you can leave a beautiful area for many to enjoy.
48. Redecorate a Room: What is more fun than a refreshed space? This is easy to do when changing out seasonal decor. Or just move the furniture around to create a whole new look. We did that with our dining room table direction and people would always think we did something massive!
49. Take a Nap: Who doesn’t want a nap (except for that young child who needs a nap)? Take care of yourself and take a step back from the busyness of life. Nap time is a special treat. Plus you can’t spend money when you are sleeping!
50. Video Gamer Competition: You can get free games through your library or with a free trial on Twitch. Just make sure to grab a friend to join you for a little bit of people socialization.
51. Playgrounds: Something that is easy things to do around here is found right in your neighborhood. Head to the local playground and run around crazy after your kids. Play tag and you will wish you had all of the energy they do! Change things up and find a new playground to check out.
52. Dump Debt: I always felt broke when I was in debt. If I spent money, I felt guilty about it. Figure out your debt free date and learn how to pay off debt faster. Use an app called Tally to help you overcome your debt.
53. Play Chess: This is a classic game that everyone should learn how to play. Plus it is one of the best free no no-money activities. Many cities have full-size chess pieces in local parks that make playing that much more fun!
54. Watch a Documentary: This is spare time well spent. A documentary will open your eyes to various views and perspectives. This is a productive use of your time.
55. Dance Party: This is always a hit, especially with kids. You don’t need to worry about where to go when you have no money. You can bring the party to you! There are so many free ways to listen to tunes and no money is spent for moving your body.
56. Delete Unused Apps: Take a few moments and delete any unused apps off your phone. This will help improve phone efficiency.
57. Art Supplies: Gather up all of the art supplies and see what type of creations you can make with stuff that you already have. Double bonus if you create some gifts, too! This is a great idea of things to do with friends! Here are things to draw when bored.
58. Cancel Unused Subscriptions: When you are broke, you need things to do, then look at what you spend money on but don’t use. This is a great money-saving tip! Use a service like Trim or Paribus to help you.
59. Daydream Life Without Debt: Okay, one of the top reasons people are broke is because of debt. We were in that situation too. I would always daydream about life without debt. And then it happened! Read more about our story on why we became debt free. Now, you can start to daydream about life without debt, too!
60. Listen to Podcasts: This is a great way to increase your knowledge around a certain subject or topic. Find your favorite podcast.
61. Post Skills & Make Money: Do you have a specialized skill or service that you can offer? You can post your skills and services on NextDoor, TaskRabbit, or Fiverr. It could be something as simple as shoveling walks or raking leaves. This is great if you want to double $10k quickly.
62. Make Extra Money: One of the best things to do instead of spending money is to be making money. There are plenty of ways to keep you entertained and not bored. Check out this list 20 Genius Ways on How to Make Money Fast. This cannot be stressed enough!
63. Feed the Ducks: Okay, well today, you aren’t allowed to feed the ducks. But, they are interesting creatures to watch and keep you entertained. But, this is somewhere to go when you have no money.
64. Memory Lane: Let’s take a stroll down memory lane. Pull out old photo books, find your keepsake box, and scroll to the of your pictures and videos. Grab some Kleenex and take a walk down memory lane.
65. Visit a Nursing Home: Looking where to go when you have no money? Then, look no further than the closest nursing home. Their residents are always looking for people to interact with. After striking up a conversation or two, you will walk away with golden nuggets of life lessons and a chance to learn from your mistakes.
66. Meal Plan: This one is a productive use of time plus will save you money over the next week. Use this money saving tip and learn how to meal plan like a pro.
67. Mediation: We are constantly on the go. When was the last time, you were just still? Take time and meditate. Start with mindfulness meditation. This is when you learn to pay attention to your breath as it goes in and out. Clear your mind.
68. Try a Budgeting App: This is a great time to stop living paycheck to paycheck and truly figure out where you spend money. Here are some great budgeting apps:
69. Set Goals: When you are asking yourself, “How can I spend weekends with no money?” Start by setting goals. Without an idea of where you go in life, you will be just bobbing along from one thing to another. Get help on making money goals.
70. Bake: More than likely, you probably have all of the baking necessities on hand. Try a new recipe or make an old favorite. Grab a friend or family member to make it more fun! Have too many cookies? Take them to a fire station or a nursing home.
71. Open Houses: In the market for a house, looking to remodel, or just want to redecorate, then check out open houses for ideas and inspiration. There are hundreds each week and a great way to spend weekends with no money. To add more fun, create a persona and a story on why you are looking at houses.
72. Watch a Sunrise: What better way to experience the wonderful beauty of nature! Find a spot to watch a sunrise and soak up the morning rays. Maybe even combine it with a short hike.
73. Watch a Sunset: The sunsets are us can be magical and absolutely colorful. There are so many spots to watch a sunset. Plus no two sunsets will be the same. Maybe even back a picnic.
74. Time Capsule: Make yourself a time capsule to be opened on a big birthday or in a big life year.
75. Craw Dad Fishing: Calling all dads (and maybe moms)! Head to a local creek with some sticks and hot dogs as bait. This is probably my kid’s favorite summertime activity.
76. Build a Fort: This is the only reason I keep so many blankets on hand. Kids can spend hours on end creating a fort with blankets. Pull in the chairs and start building. This will also include STEM learning because it is a science to get blankets to stay up on the fort without caving in.
77. Camp in Your Fort: Yay! Spend the night in your fort and pretend you are camping. This is a great stay-at-home idea for young kids.
78. Play in the Snow:I will admit it is snowing while I type this. All you need to do is head outside and find plenty of things to do without spending money. You can make snow angels, have a snowball fight, color the snow funny colors, catch snowflakes on your tongue, or shovel for extra money.
79. Built an Igloo Fort: This takes me back to feeling like a kid (at least until the soreness kicks in). Building a fort out of snow is so much fun! You can quickly spend hours outside and have a blast. Then, have fort wars!
80. Visit a Farmer’s Market: Learn what fruits and vegetables are local to your area. This is one of my favorite activities especially in small towns.
81. Learn a Foreign Language: With so many cool apps and websites, you can teach yourself how to speak a foreign language. Maybe you just need to brush up on those high school classes. Then, you can volunteer at a local community center to practice!
82. Find a Pet to Love: Head to your local animal shelter and love some pets that need to be rescued. This is a great way to not spend money and help the community. Maybe donate extra blankets to help out the rescue.
83. Figure Out Your Net Worth: This one hasn’t been popular with many of my readers. But, your net worth has to start somewhere (even if it is negative). However, we have been working to increase our liquid net worth this past year. If your goal is to become a millionaire next store, you have to start somewhere.
84. Dress Rehearsal. This one may be harder to find, but an awesome idea if you can. Some venues will allow people to attend their dress rehearsals for big shows. You won’t have the same experience as the real show. At the end of the show, you will save lots of money and may be asked to provide feedback.
85. Sound Checks: Is your favorite bank headed to town and you can’t afford to go? Then, go a couple of hours before the start of the concert and keep your fingers crossed they are doing sound checks. This works really well for outdoor concert venues. I have a cousin who has become a pro at this!
86. Get on a Realtor’s Mailing List: Realtors are always marketing their services and vying for attention. Many realtors will send out mailers with local activities that you can explore for free. Others may invite you to special events that are really fun and totally free for you!
87. Minute to Win It: Play this game against the clock which will have you laughing for hours. Most of the minute to win it games are with items you can find all throughout your house. This one is a winner to hang out with friends, kids, or families!
88. Find Grand Openings: This is where to go when you have no money. Search for grand openings in your local area. Many times you will walk away with freebies and other goodies! Plus more than likely you will have a story to share about your experience.
89. Free Exercise Routines: No need for a gym anymore! You can download apps for plenty of workouts to keep you fit and healthy. Scroll YouTube for yoga classes. If your goal is to lose weight, then try Healthywage and get paid for losing weight.
90. The Bad Gift Exchange: Plan a party with friends and tell everyone to bring the worst gift they got from the previous holiday. Hold a funny white elephant exchange and laugh at what people spend money on.
91. Free Class at Community Colleges: Check out your local community college for the free classes they are offering. You should be pleasantly surprised at how many free classes you can take.
92. Free Classes at Stores: Hitting up stores may seem backward on where to go when you have no money. However, many stores offer free classes or projects. The goal for stores is to get you in the store in hopes that you will buy one or two things while you are there. Resist the urge to buy something and go for the free projects. Stores I know that offer free classes, projects, and crafts: Ikea, Home Depot, Lowe’s, Joann’s, Michaels, and smaller mall stores.
93. Favorite Recipes List: Too many times we forget some of our favorite recipes and they go un-made for months. Create your go-to recipes that everyone in your family loves. This will make your meal planning much easier and faster. Even better… convert your recipes to a digital file.
94. Research your Genealogy: If you want to know more about your family history, then you can spend hours learning more on the various genealogy websites. Even better, call the family historian to learn more about your heritage.
95. Fly a Kite: Don’t worry about having to buy a kite in order to have fun! Get creative and make your own. This is something my kids have figured out how to do on their own with store grocery bags and string.
96. Invite Your Kid’s Friends Over: Kids always want time to hang out with friends. They can always find something to do with their friends. Then, you can get some quiet time. You don’t need to spend any money for everyone to have fun. It is a win-win situation.
97. Get Your Personal Finances in Order: This is one of the most important things to do. Yet, it always slips to the bottom of your list. Learn how to organize your personal finances and make sure your wills are up to date.
98. Make a To-Do List: There is no better time to power through your to-do list. It is a great idea to not spend money and be productive. You may have to DIY projects or save money to finish them another day. But, you can tackle the hard stuff.
99. Last Text Message: Scroll all the way to the bottom of your text message list and find that friend you haven’t talked to in a long time. Invite them over and have a conversation.
100. Free Apps: There are so many free apps available. You can learn a new skill, play a game, organize your life, sharpen your brain, and connect with friends. The options are endless on this one!
101. Local Festivals or Events: Once again, there are so many free activities. Check out your local area for weekend activities. Bonus hint: pack your own food and snacks so you aren’t tempted to spend money with the food vendors.
102. Camp in Your Backyard: You don’t need to drive anywhere to camp. My kids love setting up the tent to camp right here at home. The tent gets more use and the bathrooms are mighty convenient.
103. Check Newspapers. From Money Bliss reader, Elizabeth recommends checking the local newspaper as they list out all of the local events in the community. Her money saving tip is to use the library’s copy for free. Also, the online digital version may have the same info.
104. Free Trials: When you are looking for things to do for free and that don’t cost money, then look no further for free trials. The options are endless because people want to try out their product. At a bike event, I was able to do a free trial for a road bike. It was a great way to check out what I liked and not spend any money.
Ideas for possible free trials:
Just make sure to cancel before the trial ends!!
105. Count Your Blessing: Too many times we take for granted everything that we have. Take the time a start writing a list of everything you are grateful for. These blessings have enriched your life. Find ways to enrich someone’s life.
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The popular book of coupons is now a downloadable app!
The Entertainment® Book and Digital Membership offer 2-for-1 and up to 50% off discounts, all conveniently accessed on our mobile app, online or in the book.
Great way to save money on local restaurants, activities, hotels, adventures, and more!
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How do you have fun without spending money?
Now, we have covered an extensive list of things to do with no money. Hopefully, you have learned that you don’t need to spend money to have fun.
You can enjoy your time and not spend money. You can be productive when bored.
You will always have an answer to what do you do for fun!
There are so many ideas to help you through your no spend days.
That should be a smile on your face (and your bank account).
You can figure out what should I do today.
The less money you spend each day the more money you can save for one of our money saving challenges. That is one of the best things you can do for your finances.
Don’t Miss… 90+ Fun Things to Do on Christmas Day
What are your favorite places to go with friends when you have no money? If I missed one of them, please tell me in the comments.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
It ought to be as easy to end a paid subscription service as it is to start it, but that’s not always the case. Have you ever had to make a phone call to cancel something you signed up for online?
The disincentives are by design, says Erin Witte, director of consumer protection at the Consumer Federation of America. Extra hurdles may include having to click through multiple links to find the cancellation page, make the dreaded phone call to customer support or even send a written request to end service.
Perhaps you’ve let an unused subscription linger — whether it’s for a streaming service, meditation app or the local car wash — simply because the monthly charge goes unnoticed.
A 2022 study by brand insights agency C+R research found 42% of consumers have forgotten they were still paying for a service they no longer use. The same study, based on responses from 1,000 self-reporting consumers, found that, on average, consumers underestimated what they spend on monthly subscriptions by $133.
“Automatically recurring subscription plans often capitalize on people forgetting that they signed up for something, and then making it very hard to get out,” says Witte.
A rule proposed by the Federal Trade Commission in March 2023 aims to correct burdensome cancellation tactics and help consumers remember what they’re paying for.
Called “Click to Cancel,” the rule would require companies that sell subscriptions to make canceling a service as simple as it is to sign up (e.g., if you join online, you can cancel on the same website in the same number of steps). It would also require companies to send an annual reminder to customers before automatic renewal.
The rule, which is still pending, could help consumers save money. While you wait for broad change, here are several strategies to stay on top of subscriptions.
Understand how subscriptions impact your finances
“Being aware of the problem is always the first step,” says Witte. She’s encouraged by the expanding narrative around the impact of subscription services on consumer budgets and shady ways to keep customers enrolled.
“We’ve seen a huge increase in subscription services being used by businesses, sometimes in ways that consumers don’t even necessarily meaningfully consent to,” says Witte.
A survey commissioned by the attorney general’s office of Washington state in 2022 found 59% of Washingtonians may have been unintentionally enrolled in a subscription service when they thought they made a one-time purchase.
Last June, the FTC sued Amazon for allegedly enrolling people in its Prime membership service without consent and setting up obstacles that made it difficult for members to cancel.
Witte says the burden shouldn’t fall on the consumer, but for now it’s a good idea to explore a company’s cancellation process before you sign up. You can also set a calendar reminder for the end of any trial period, so you can decide before automatic payments start.
Give yourself the chance to make a choice
“When we pay for things individually, we feel ‘the pain of paying,’” says Uma Karmarkar, associate professor at the University of California San Diego. More immediate payments, like a store purchase or a meal at a restaurant, can conjure a feeling of loss, especially when you hand over cash. But with subscriptions, you typically add your card upfront and pay passively thereafter.
Karmarkar uses the example of buying coffee out every day. Common advice is to cut out one pricey latte a week if the habit is hurting your budget. But maybe your daily latte brings you enough joy to justify the recurring purchase. The key is you get to make the choice each day to do so or not.
Your credit card bill is a good place to start, and you can tally up your subscription costs in a budgeting app, spreadsheet or on a piece of scrap paper. When you see a charge from ViacomCBS streaming, it’ll remind you that you still pay for Paramount+ and don’t plan to watch the “Paw Patrol” movie again.
A regular look at your credit card transactions is also a good way to note price increases you may have missed in your email. The cost of NBC’s Peacock streaming service, for example, will increase by $2 a month starting in July.
When it’s time to cancel, consider how you signed up for the service to plot the right path. For example, if the service is linked to your Apple account, you can cancel on your iPhone.
Recognize emotional triggers
Added friction aside, you may have to deal with the trepidation that comes with ending some services.
Have you ever canceled a music streaming service, only to be reminded of everything you’ll be giving up just before you quit — playlists, unlimited skips and offline listening? The thought of cutting off unfettered access to the world’s catalog of music tracks could stop you in your tracks or stay with you until you reactivate the paid tier days later.
Then there’s the low price offer that services will dangle in front of your face to encourage an impulsive extension. “Would you like three more months at half price?”
The FTC’s “Click to cancel” rule would also require companies to ask consumers whether they want to learn about additional offers before making such pitches.
The uniform regulation could bring welcome change for consumers inundated with monthly charges.
“One thing has become very clear as the narrative around this particular issue grabs hold, and it’s that people are tired of it,” says Witte.
For now, it’s on all of us consumers to make sure we’re not spending money for nothing.
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It’s no secret that the price tags of single-family homes — the ideal dwelling in terms of space, independence, and resale value — have spiked, and many current homeowners have been reluctant to let go, but a buyer whose heart is set on a single-family home may be able to follow a playbook to find their prize.
Buying a single-family home isn’t dramatically different from purchasing another type of property, but the process has a few variations. Here are some guidelines.
What Is a Single-Family Home?
The definition would seem easy enough, but it does vary according to real estate experts and government sources. The U.S. Census Bureau says single-family homes include fully detached and semi-detached homes, row houses, duplexes, quadruplexes, and townhouses. Each unit has a separate heating system and meter for public utilities, and has no units above or below.
According to other definitions of a single-family home, the building has no shared walls; it stands alone on its own parcel of land. In some places, the number of kitchens the home has informs the definition.
Unlike a multi-family property, a single-family home is meant for one person or household. Among the types of houses out there, including condos, co-ops, townhouses, and manufactured homes, the single-family home remains the holy grail for many Americans. 💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Benefits of Purchasing a Single-Family Home
While condos and townhouses may come with shared amenities and lower maintenance, traditional detached single-family homes come with different perks. When people buy a single-family home, they’re looking for benefits specific to this property type.
Spacious, Quiet, and Intimate
A single-family home is typically larger than a condo or townhome. Moreover, since the property is often on its own lot without shared walls, a single-family home offers more space and more privacy inside and outside the home.
Possibly No HOA
A co-op association or a condo or townhouse homeowners association sets and enforces rules and collects fees to pay for shared amenities. Anyone who buys into an HOA community must live by the CC&Rs: the covenants, conditions, and restrictions. They can be lengthy, and the ongoing fees can constantly rise.
You may be able to buy a detached single-family home with no HOA and paint your mailbox, or house, pink or purple — unless you live in a city like Palm Coast, Florida, that allows only earth tones and light or pastel hues but no colors that are deemed “loud, clashing, or garish.”
Then again, HOAs are becoming more common for detached single-family homes in planned communities. In fact, about 65% of single-family homes built in 2020 were in an HOA, Census Bureau data shows.
Single-Family Home Appreciation
Generally, single-family homes are in higher demand than multi-family or other properties. Because of both the building and demand, when a person buys a single-family home, the value may increase faster.
Possibilities for Renovation and Expansion
When people buy single-family homes, they’re buying into the potential to expand or renovate extensively. If the lot is big enough, single-family homeowners could put an addition on the property.
Single-family homes can be an attractive buy simply because of the option to expand in the future, unlike properties with shared lots or walls. 💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.
How to Buy a Single-Family Home
Ready to buy a single-family home? Anyone from a first-time buyer to a seasoned investor may find appeal in a single-family home.
Recommended: First-Time Homebuyers Guide
1. Draw Up Your Financial Priorities
First, it’s important to look at finances. Your credit scores can have a significant impact on getting approved for a mortgage. To get a clear read on credit, but not scores, buyers can request free credit reports from the three major credit bureaus.
Additionally, it can be helpful for a qualified first-time homebuyer — who can be anyone who has not owned a principal residence in three years, some single parents, and others — to look into specialty mortgages to see if they qualify for them.
A loan from the Federal Housing Administration (FHA) may allow a down payment as low as 3.5%. A USDA loan (from the United States Department of Agriculture) requires nothing down, and a VA loan (from the Department of Veterans Affairs) also usually requires nothing down. Some conventional lenders allow qualifying first-time buyers to put just 3% down.
It’s important to know, though, that all FHA loans require an upfront and annual mortgage insurance premium, regardless of the down payment size. VA loans require a one-time “funding fee.” And borrowers with conventional conforming loans who put down less than 20% will pay private mortgage insurance until their loan-to-value ratio drops to 80% and they request removal, or to 78%, when it falls off.
2. Decide on Your Preferred Type of Housing
No two houses are alike, just as no two homebuyers are. Everyone has different tastes and priorities about where they want to call home.
Before hitting every open house in town, consider deciding on must-haves for a single-family detached home, including privacy, proximity to businesses, size, and style. This could help determine if a single-family home is the right fit.
3. Arrive at Your Price Point
Armed with an understanding of the type of house, it’s time to think about the price point. In addition to thinking about the down payment, buyers will want to calculate a monthly mortgage payment and total loan costs.
Figuring out a price point before looking at homes can take the emotion out of the process. That way, buyers have a budget in mind and a “do not exceed” amount before they fall for a home.
4. Search for a Good Real Estate Agent
Buying a single-family home can be fun, stressful, and fast-paced. Working with a trusted real estate agent can make the process a little easier.
To find a real estate agent, you might consider:
• Reaching out to friends for referrals
• Checking out local real estate association websites
• Using an agent selling homes in the area you want to buy in
You might want to interview more than one agent, asking about their experience, availability, and philosophy. The choice of agent will likely come down to a combination of personality match and experience.
5. Find Your Neighborhood
Armed with an agent and budget, it’s time to dive deeper into neighborhoods. Once again, the choice of where to search will come down to the buyer; there’s no one “right” place to buy a single-family home.
As buyers explore neighborhoods, they might prioritize the following:
• School district
• Walkability
• Proximity to workplace
• Community resources
• Budget
An experienced agent can help buyers distill their priorities and even point them in the right direction. Typically, buyers will have to balance the above elements, as it might not be possible to check all the boxes in a single neighborhood.
6. Tour Homes With Your Agent
Once buyers decide what neighborhoods they want to buy a single-family home in, it’s time to start touring properties.
When touring a single-family home with an agent, try to allot between half an hour to an hour. In the case of open houses, prospective buyers can walk in at any time, but private home tours require a buyer’s agent to gain access to the property.
When buying a single-family home, everyone will have their own checklist of what they want, which might include:
• Listing price
• Number of bedrooms and bathrooms
• Storage space
• Floorplan
• Plot of land
• Deck and porch
• Garage and driveway
It could help to take photos or notes while touring a home to refer to them long after you’ve left the property.
7. Choose a House and Bid
Found a place and ready to make an offer? Time to get a home loan in order. Luckily, buyers will have a good idea of what they can offer on a property based on their finances with the upfront legwork.
Your agent can help with negotiating a house price.
How to make an offer? It pays to understand comps and the temperature of the market, and then:
• Figure out the offer price
• Determine fees
• Budget for an earnest money deposit
• Craft contingencies
With an offer drawn up, it’s time to submit it to the seller and wait for the next steps.
8. Review the Process and Get Ready to Move
Buying a single-family home isn’t a done deal once an offer is submitted. Typically there will be a back and forth, perhaps over offer price or contingencies.
Once everything is agreed on, and the inspection is resolved, it’s time to tally moving expenses and pack up.
9. Head to Closing and Move Into Your New Property
The final part of buying a single-family home is closing day. During closing, the buyer and seller meet with their agents to go over paperwork, and settle any outstanding costs, and formally turn over property ownership.
Next, it’s just moving everything in and settling in. Even after closing, homeownership may feel overwhelming, but there are plenty of resources to make it easier.
Ready to Buy a Home Quiz
The Takeaway
Ready to buy a single-family home? The process before you may seem daunting, especially if it’s your first home purchase. But if you break it down to small steps and keep your budget and dream-house priorities top of mind, home sweet home may be closer than you think.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
How much does it cost to buy a single-family home?
Zillow put the typical value of a single-family home at $354,000 in April 2024. New construction costs more. The median sales price of new houses sold in February 2024 was $400,500, according to the U.S. Census Bureau.
Can you buy a single-family home with no money down?
If a buyer qualifies for a mortgage backed by the Department of Veterans Affairs or Department of Agriculture, or one issued directly by those agencies, they may be able to purchase a home with no down payment.
What are the most important things to consider when buying a house?
Location (including property tax rate, quality of schools, walkability, crime rate, access to green space, and the general vibe), your ability to cover all the costs, duration of your stay, and square footage may be important.
How much should you have in savings to buy a single-family house?
You’ll need to have enough to cover a down payment, closing costs, and moving fees while ideally preserving an emergency fund.
Photo credit: iStock/jhorrocks
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.