No direct link to offer, showing via referrals only currently. Find and share referrals in this linked offer.
Chase is offering a new sign up bonus on the Chase Sapphire Preferred:
Earn 60,000 bonus points after $4,000 in purchases in your first 3 months from account opening
Plus, get up to $300 in statement credits on Chase Travel purchases within your first year
Card Details
$95 annual fee, not waived
No foreign transaction fees
Primary car rental insurance
$50 Annual Hotel Credit. (This is per cardmember year, rather than calendar year. Must be booked through the Chase Travel Portal.)
Card earns at the following rates:
5x on travel booked through the Chase Travel portal.
3x on Dining/Streaming Services/online grocery (excludes: excluding Target, Walmart and wholesale clubs)
2x on travel
1x on all other purchases
10% Anniversary point bonus. When you renew your card Chase will offer a 10% bonus spend. For example if you spend $25,000 you’d earn 2,500 bonus points. This is award after the annual fee is paid. This doesn’t apply to the sign up bonus.
Transferable points
Redeem points on Chase’s travel portal at a value of 1.25¢ due to the 25% travel redemption bonus
Not eligible if you’ve received a sign up bonus on the Sapphire Preferred/Reserve in the last 48 months (standard is now 48 months)
Chase 5/24 rule applies to this card
Our Verdict
Previous recent best was 85,000 points but that required going in branch. That offer was better as you get more Chase UR points, but most recent online offer was 75,000 points. Nice bit of this offer is that it’s available via referral, so great for people referring P2 or a friend/family member. We will add this to our best credit card bonuses page. Do not share your referrals in the comments below, you can use this linked thread instead. Looks like you can get an additional 10,000 points in branch.
If you are like many people, you may have asked yourself at some point in life, “Will I be rich one day?” No one knows for sure what the future holds, but there are a few things you can do to increase your chances of becoming a millionaire.
One of the best ways to amass wealth is to invest in assets that will appreciate over time. But while that sounds good, finding a starting point can be challenging for some. For example, you can start your own business or work hard to climb the corporate ladder, but which is the better option? And you’ll want to invest the money you earn. But where?
Whatever you do, it’s smart to remember that it’s okay to take risks and make mistakes; learning from your experiences is a critical component of success. Above all, remember that wealth accumulation is a marathon, not a sprint. It takes patience, commitment, and perseverance to achieve financial security.
Table of Contents
Key Points
• Early financial success, such as earning money from a young age, can set the stage for future wealth.
• Taking decisive action and managing finances proactively are common traits among those accumulating wealth.
• Outspokenness and a unique personal style often distinguish wealthy individuals in social settings.
• A strong sense of urgency and goal-oriented behavior are typical among successful wealth builders.
• Distinguishing between needs and wants is crucial for effective financial management and wealth accumulation.
What Is a Sign of Wealth?
Often, specific aspects of one’s physical appearance such as luxury cars and designer clothes are taken as a sign of being rich or wealthy. Unfortunately, these signs aren’t always reliable. For example, some people may live in an extravagant home, giving off the appearance of wealth, but it may simply mean that they can access money — perhaps through credit, savings, or even family.
Real signs of wealth are often more attitudinal, and many can be cultivated through patience and practice. Here are a few people who were early millionaires due, in large part, to their drive and focus.
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Recommended: What Credit Score is Needed to Buy a Car
Examples of Millionaires Under 30
With the advent of the tech industry, smart investments, business ventures, or inheritances — i.e., the great wealth transfer — millionaires under 30 are becoming increasingly common. Here are three examples of millionaires who earned their fortunes before turning 30.
Mark Zuckerberg: Zuckerberg created Facebook at age 19 while attending Harvard University. The idea was to match photos with the names of other students. And in just a few short years, Zuckerberg became a self-made millionaire at age 22.
Sergey Brin: Brin is a Russian American computer scientist who, at the age of 25, co-founded Google, Inc., and became a millionaire. Google is one of the world’s most valuable companies, and today, Brin’s net worth is estimated to be upwards of $120 billion.
Alexandr Wang: Wang founded Scale AI in 2016 as a way to analyze data far faster than any human could. Today, Scale AI’s technology has been used by the U.S. Airforce and U.S. Army, as well as 300+ companies. Today, Wang’s net worth is estimated to be over $2 billion, and at age 27, he’s among the youngest self-made billionaires.
Recommended: Does Net Worth Include Home Equity?
9 Signs of Wealth to Look Out For
In the U.S. 1% of earners take home nearly 30% of the country’s income, so it’s essential to know what signs to look for when trying to identify if someone is wealthy. While there’s no one-size-fits-all definition of wealth, some cues can give you a good idea of whether you or someone you know is doing well financially. (And a net worth calculator can help you tally up your own assets.)
Here are six signs of wealth to look out for that indicate you’re on track to becoming wealthy:
1. You’re an Overachiever
It’s hard to be modest when you’re an overachiever. You know you’re good at your work and are not afraid to let everyone know. Overachievers work hard and try harder. While this may make some people uncomfortable, it comes naturally to you.
2. You Started Making Money At a Young Age
It is not uncommon to see young adults with successful careers in today’s society. While some people played with toys as a child, others learned how to make money. For example, it could mean that you had a paper route or a babysitting business.
Making money at a young age, or any age for that matter, is not always easy. But an early start in earning, tracking your money, and investing can put you on an accelerated schedule when it comes to building your wealth and becoming a millionaire.
3. You Take Action
There will be times when things happen that are out of your control. You may feel stuck and as if you have no way to change your circumstances. However, these are the times when you must take action to create the life you want to live. For example, it might mean organizing your finances to get what you want. And, sometimes you’ll have to take some risks and go for it. It can be scary, but it’s worth it to achieve your goals.
When faced with a difficult situation, it’s essential to remember that you always have a choice. You can choose to give up, or you can choose to fight for what you want. Only by taking action can you make progress and take a step towards achieving financial wellness. So don’t be afraid to step up and take on whatever life throws your way — you can do it!
4. You Are Outspoken
In a society where people get judged by how much money they have, it is no surprise that many go out of their way to keep up appearances. And while some may try to blend in with the wealthy crowd, a wealthy person will often stand out with his unique style or outgoing sense of humor. Wealthy people tend to feel less inhibited and are more likely to speak their minds. They may also be less concerned with the rules and more likely to take risks.
5. You Possess a Sense of Urgency
When it comes to the wealthy, there are a few telltale signs that set them apart. One of these is their sense of urgency — they don’t like wasting time and are always moving forward. This urgency allows them to set financial goals, achieve them, and maintain their wealth. It’s also one of the reasons why they may seem constantly stressed out — they’re always trying to do more.
6. You’re Focused More on Saving Than Earning
It doesn’t matter if you earn $50,000 or $250,000 a year. Unless you consistently spend less than you make, you’ll never get ahead financially. People who focus on their budget and saving their disposable income understand how to live within their means and focus on what’s most important: saving money for the future.
7. You Know the Difference Between Needs and Wants
In our materialistic society, getting caught up in the “must-have” mentality is easy. Advertisements are everywhere, and social media posts tell us we need the next latest and greatest products. It can be challenging to discern between the things we need and want.
A sign of a wealthy person is their ability to distinguish between the two. They know which items are essential for their well-being and those which would be nice to have. Advertising or peer pressure doesn’t work on rich people, and their possessions don’t rule them.
Recommended: Should I Sell My House Now or Wait?
Spiritual Signs You Will Be Rich
Are there spiritual signs that you can be a wealthy person? Some people believe steadfastly in spiritual and other signs of wealth and luck. Here are a couple of examples:
Gravitating to the Lucky Number, 8
In Chinese culture, the number 8 is considered a lucky number. Individuals who gravitate toward this number may believe it will bring them good fortune. Some people might even go as far as to change their phone number or social media handle to include the digit 8.
A Psychic Confirms Wealth is Coming
Some people consult psychics to get guidance on anything from love to health and even money. While many psychics will say they can tune into your energy and give you specific information about your future, and many people believe their predictions, you may be better off putting the money you’d pay the psychic into savings.
Pros and Cons of Having Signs of Wealth
There are very few times when it can be helpful to show off your wealth to others. Indeed, showing off can make others feel intimidated. Additionally, it can attract unwanted attention from criminals or others who want to take what you have. And having too many signs of wealth can make you a target for scams or other fraudulent schemes.
The Takeaway
If you identify with any of these habits you’re likely well on your way to building a significant amount of wealth. However, it is essential to remember that wealth accumulation is not a one-time event; it’s a way of life. It’s something you’ll need to make a habit of, if you want to succeed. For many people who work hard, stay focused, and are disciplined, it is possible.
And as you’re building your wealth, tracking your income and expenses is one of the primary ways to manage your money. SoFi’s money tracker app can help you keep track of your funds so you can make the best spending decisions and start building your very own fortune today.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
At what point is someone considered wealthy?
There is no magic dollar amount that indicates someone is wealthy and one person’s definition may not be the same as another’s. But in 2022, the top 1% of earners took home an average of $785,968, according to the Economic Policy Institute. Of course the amount you earn is only part of the wealth story. How much of your income (or inherited wealth) you retain is affected by your spending habits.
What are invisible signs of wealth?
People who are stealthily wealthy still might have a “tell” that gives them away. Use of private banking or wealth management services would be one example. Another might be not working but being able to maintain an expensive hobby such as riding horses or boating. Buying bespoke products, whether tailor-made clothing or custom-designed furniture, is another subtle giveaway.
Photo credit: iStock/miniseries
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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.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Showing off luxury homes that cost millions of dollars to build is quite the process. Every detail has to be on point, ensuring that the quality materials and high-end finishes are beautifully complemented by just the right decor choices, for maximum impact.
The goal is pretty clear — to showcase the property in the best possible light, and to make it easier for the would-be buyers to imagine themselves living there. And, of course, to make them more amenable to parting with hefty sums of money to make the house their own.
But how can sellers master the art of staging multimillion-dollar homes? In this article, we’ll go over some key strategies to make luxury home staging a success.
Understanding the target buyer and their preferences
To understand the target audience, we will need to first get into how the luxury home market works and what attracts buyers in this price range.
And no, we’re most certainly not suggesting you stalk potential buyers online to find out what their hobbies are and stage the home accordingly — much like Modern Family’s Phil Dunphy once did, in a hilarious episode of the long-lived sitcom.
If you know the price range of the property, the very first thing you should do is your homework: pull up as many similarly priced listings as you can, and start studying each and every one.
What are some of the most common design elements employed throughout? What types of design styles look best? Which types of light fixtures, artwork, and statement decor make the biggest impact? Write down everything that catches your eye and you already have a great starting point.
Photo credit: Pascal Riedel / Dreamstime
Refine your buyer persona
Your next step should be to look into the demographics of potential buyers for your specific property. Who would be most interested in buying the house?
Focus on their age, cultural background, profession etc. Marketing becomes a lot easier when you actually know your customers. Now, divide them into specific categories (e.g., young tech entrepreneurs, international investors, retirees looking for a second home) to understand their preferences.
And from there, it’s a no-brainer. Techbros may prefer homes with cutting-edge technology, international investors might look for strong ROI and a positive legal plus tax environment, while retirees may seek exclusive amenities like a private pool. Find that right fit and things will flow smoothly from there.
Meet them where they’re at
Remember that luxury buyers often make decisions based on emotional appeal or status. Understand what triggers these emotional responses — such as a grand entrance, unique features, or high-end finishes, and try to tap into that.
Costs and investments to keep in mind
Typical McMansions rent over-the-top furniture, art, lighting, and thousands of other types of accessories to appeal to their customers. To move these extremely expensive items, you’ll need professional movers. And if your schedule is tight, you’ll need to cough up some extra bucks. Also, watch out for an additional storage fee if the items can’t be delivered in time.
Working with real estate agents adds another layer of expense. Some stagers work on a commission basis, taking a percentage of the final sale price. There are also costs for joint marketing efforts like professional photography, virtual tours, and brochures to put the home on display.
Overall, the money that goes into staging includes renting luxury furnishings and decor. Which, depending on the property’s size and needs, can range from a few thousand to tens of thousands of dollars. A home value calculator can be a great tool to get a clearer picture of what the price should be — so that you can factor in all of the above costs, and bake them into the listing price.
The science of layout and flow
To make a home functional as well as aesthetically pleasing, you need a clear understanding of how people see and move through space. The next step is to make strategic choices that account for this aspect. Choices that will highlight the home’s best features all the while maintaining a sense of harmony.
Entryway
Photo credit: Witriyani Nurhasanah / Dreamstime
Firstly, the entryway sets the tone for the entire home. Keep it open, uncluttered, and welcoming. Opt for neutral or pastel colors on the walls.
You may also play around with textures without creating visual clutter— like a woven mat or a smooth bench. However, if you would like to incorporate vibrant colors, just make sure your designers know the difference between tacky and tasteful.
Focal points
Photo credit: Andrei Dzemidzenka / Dreamstime
Think about focal points and pathways — every room should have a clear eye-catching focal point. It could be anything like a large window with a view, a piece of art, or a furnace.
The layout for pathways should feel easy to move through. You want to maintain a natural flow, an unobstructed path. So it’s best to not have any large furniture that takes away from the charm.
Lighting
Photo credit: Yulia Ryabokon / Dreamstime
Now, let’s talk about the power of lighting and reflective surfaces. Install pendant lights or scones for warm, inviting lighting. Consider adding a small table lamp or LED strip on the entryway.
Reflective surfaces are amazing at creating a particular mood or ambiance. Mirrors help reduce harsh shadows and distribute light more evenly throughout a room. For example, glass tables, metallic accents, or mirrored furniture are a great way to make an area look polished.
Virtual and augmented reality staging
If investing in quality staging and upscale furniture just isn’t in the budget — especially after a pricey building process — VR and AR can serve as great alternatives to showcase a property for potential buyers (particularly if you’re targeting out-of-state or foreign buyers). Here’s how:
Detailed views: Use VR or AR to create detailed, 360-degree views of standout features like custom-built kitchens, luxury bathrooms, or unique architectural details.
Immersive walkthroughs: Create VR tours that let potential buyers walk through the property as if they were physically there. Keep the focus on spacious living rooms or scenic views, with detailed commentary or annotations.
Virtual open houses: Host virtual open houses using VR to allow foreign investors to explore the property in real-time.
Real-time customization: Include features that allow buyers to make real-time modifications like changing wall colors or flooring options. For instance, light-colored wood floors generally make a room look bigger. Marble can also make a space feel larger, especially if it’s light in color with minimal veining. Both options can work in this context so it is best to have an option to try out both of them.
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“A one-size-fits-all national code is rigid and does not account for regional differences,” said Hughes. “Such an approach would impose numerous unnecessary requirements on builders, ultimately resulting in higher costs for home buyers.” In his testimony, Hughes pointed to the Promoting Resilient Buildings Act, which would give local governments more control over how they adopt … [Read more…]
A high-risk personal loan can be a source of funding for people who have a low credit score or no credit history and need to access cash. It is considered “high-risk” because the borrower is seen as more likely to default on the loan. For this reason, the interest rate is likely to be significantly higher than what a borrower with a more creditworthy profile would be offered via a conventional personal loan.
Here, learn the details of high-risk personal loans, their pros and cons, and alternatives if you need a quick infusion of cash.
What Are High-Risk Personal Loans?
High-risk personal loans make cash available to those with a poor credit score or without a credit history. Some points to consider:
• Most personal loans require a credit score of 580 or higher, but if you have a low credit score (typically between 300 and 579) or lack a robust credit history, you may be able to tap into a high-risk personal loan.
• These loans can give you access to cash, but they often come with higher interest rates, higher fees, strict repayment terms, and limits on the amount of money you can borrow.
• While some of these are unsecured personal loans, others may be secured. This means you may be required to put up collateral, or an asset, to be approved for the loan. In this situation, if you default on the loan, the lender can seize your asset.
• Personal loans typically come with fixed interest rates, and you must repay them in fixed monthly installments over a specified period, usually up to seven years. High-risk personal loans may have much shorter terms, however.
It’s worth noting that personal loans don’t usually have any restrictions on their usage. You could use them to pay for a car repair, travel, credit card debt, a new kitchen appliance, and almost any other legal purchase or service.
Recommended: Personal Loan Glossary
Types of High-Risk Loans
Here are some options you might consider for high-risk personal loans.
High-Risk Unsecured Loan
With this loan, you will not need to put up collateral to obtain funding. Typically, the lender will offer you a lump sum of cash; perhaps up to $10,000. While this may supply a quick cash infusion, keep in mind that the “high risk” cuts both ways. The lender is taking a gamble on you, as the odds of you defaulting may be high. But you are also probably securing a loan at a high interest rate and with significant fees and limitations.
High-Risk Secured Loan
In the case of a high-risk secured loan, you will be required to put up a form of collateral (such as real estate or a savings account) to gain access to funding. If a lender offers you this kind of loan, keep in mind that if you default, you could lose your collateral.
Payday Loan
Payday loans are short-term, high-cost loans, usually due on your next payday. Typically they provide a small amount of money, such as $500, that needs to be repaid within two to four weeks, and are offered online or at retail locations of payday lenders.
Here’s how they often work: You write a post-dated check for the amount borrowed plus fees, and the lender debits the funds from your account on the day the loan is due. Or you might grant the lender permission to pull the funds from your bank account electronically. If you can’t pay off the loan on time, it could roll over with more interest and fees accruing.
Note that these loans can involve an annual percentage rate (APR) of up to an eye-watering 400%. For this reason, they are considered a last resort.
Car Title Loan
Not all states offer them, but a car title loan lender lets you borrow between 25% to 50% of your car’s value, typically starting at $100 with 15- to 30-day repayment periods. In exchange, you put your car up for collateral. This means the lender can take possession of your car if you don’t repay the loan. (In one review, the Consumer Financial Protection Bureau found that one in five borrowers of this kind of funding winds up losing their vehicle.)
Lenders who offer car title loans typically have very low or no credit requirements, and you can get funding fairly quickly, even in a day. They also likely come with extremely steep interest rates, up to 300% APR.
Pawn Shop Loan
With a pawn shop loan, you hand over an item as collateral (such as jewelry, a musical instrument, or a computer), and the pawn shop offers a loan based on the item’s appraised value.
The shop may lend 25% to 60% of the resale value of the item, but note that if you fail to repay the loan, the pawn shop can keep and then sell the item. The pawn shop may give you 30 to 60 days to repay the loan.
Here’s the risky part: The APRs are high, around 200%, and vary based on your state.
Recommended: Using a Personal Loan to Pay Off Credit Card Debt
Figuring Out if You’re a High-Risk Borrower
Here are signs that you would be considered a high-risk borrower by lenders:
• You have a non-existent or thin credit history, meaning you don’t have a proven record of handling debt responsibly
• You have a low credit score (generally, below 580)
• You have made repeated late payments on loans or credit cards
• You have defaulted on a loan in the past
• You have a high debt-to-income ratio (DTI); typically, this means your debts add up to more than 35% of your income
• You are unemployed
• You have declared bankruptcy in the past seven to 10 years
Each lender will have its own guidelines regarding to whom they lend, how much, and at what rate and fees. It’s therefore important to check with your lender about the requirements for their personal loans and their terms.
Why Choose a High-Risk Loan?
If you have poor credit or no credit and want to borrow money, a high-risk loan may offer you the best (or only) option to access a loan, particularly if you have an urgent need for cash. You can often access high-risk loans with a lower credit score or minimal credit history than you would need to qualify for traditional loans.
You might seek this kind of loan vs. dipping into an emergency fund you just started or into a college or retirement fund. It could help you preserve those assets if, say, you need quick cash for a move.
It’s important to consider both the pros and the cons of these personal loans so you make the right choice about whether to pursue this type of funding.
Disadvantages to High-Risk Loans
High-risk loans come with several downsides, including the following:
• Higher interest rates and fees: High-risk loans typically have higher APRs and fees, meaning that you’ll pay more over the loan term. An example: Some have a 400% APR vs. the average APR of 12.38% for conventional personal loans as of August 2024. Some people can get caught in a debt cycle of taking out high-risk loans continually (particularly in the case of payday loans).
• Risking collateral: You may have to put up an asset as collateral for your loan. If you fall behind on payments, you may lose the asset because your lender will seize it.
• Lower amounts: You may not get to borrow as much as you prefer, because many lenders will only pay out small amounts to high-risk borrowers. For instance, some payday loans max out at $500.
How to Qualify for a High-Risk Personal Loan
Here’s how you might qualify for a personal loan as a high-risk borrower. Personal loan lenders will want you to see that you’ll likely be able to cover a new loan payment. Among other factors, lenders may use your credit score, your income, and your DTI to assess your ability to repay a loan. In terms of a target DTI, lenders like to see you keep it below 35% for a standard personal loan. With a high-risk loan, you may qualify with a significantly higher figure.
Next, you’ll gather the documents, including:
• Your ID
• Social Security number
• Pay stubs
• W-2 forms
• Federal income tax forms
• Bank account statements
You can apply online for a high-risk personal loan in just a few minutes once you have your materials ready. Your lender will let you know if you need to submit more documentation. In most cases, you’ll have a loan decision fairly quickly (some lenders advertise approval in minutes). If approved, you’ll likely have funds within one to three business days.
Alternatives to High-Risk Loans
You can also consider alternatives to high-risk loans, including:
• Payday alternative loans: Credit unions may offer their members short-term loans as an alternative to payday loans. Payday alternative loans (PALs) are divided into PALs I and PALs II. PALs 1 offer between $200 and $1,000 with a maximum APR of 28%, and one- to six-month repayment terms. PALs II offer up to $2,000, a maximum 28% APR, and one- to 12-month repayment terms.
• Family or friend loan: Family members or friends may be willing to lend you money. However, ensure that you can repay the loan in a timely manner so you don’t risk damaging the relationship.
• Get a cosigner: You can approach someone you know who has good credit to become a cosigner on your application to help you qualify for a standard personal loan. Make sure, however, that both parties involved understand that the cosigner is responsible for taking over your monthly payments if you default on repaying the loan. That’s a major commitment on your cosigner’s behalf.
• Look for “buy now, pay later” offers: These allow you to purchase an item and then pay it off on an installment plan, which may or may not charge interest.
• Build your credit: Perhaps it seems obvious, but building your credit can play a key role in helping you qualify for more favorable loans in the future. You might work on positively impacting the factors that determine your credit score or meet with a qualified credit counselor to learn strategies.
Recommended: Guide to Personal Loans
The Takeaway
High-risk personal loans can be a source of quick cash for people with a low credit score or a thin credit history. They can be risky for the lender, because there is a fair chance the borrower might default. They can also be risky for the person seeking the money because the interest rate, fees, and other terms may prove very expensive and/or involve potentially losing any collateral that might be put up.
If you are a high-risk borrower, it’s important to fully understand what these loans involve and the downsides if you cannot repay them on time. It may also be wise to review what options exist before you decide to apply for a high-risk personal loan.
If you’re seeking a standard personal loan, see what SoFi offers.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
What is considered a high-risk loan?
High-risk loans are funds offered to individuals who may have bad or no credit. In exchange for accepting a higher-risk applicant, lenders typically charge higher APRs and fees and/or may require the borrower to put up collateral.
What type of bank offers high-risk loans?
Banks typically don’t offer loans to high-risk borrowers, though it may be worth checking with them before moving on to another type of lender. Those who do offer high-risk personal loans could be online lenders or a retail payday loan provider, for example.
What two types of loan should you avoid?
There are several types of loans you may want to avoid if possible, including car title loans and payday loans. Why? You will pay high interest rates which can trap you in a cycle of debt. Also, with a car title loan, you are using an asset as collateral, which means you risk losing your vehicle if you can’t repay the loan on time.
Photo credit: iStock/Eleganza
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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Whether it’s to manage finances, accept payments or reach new customers, more small-business owners are optimizing their business operations with digital tools — leaving them increasingly vulnerable to digital security breaches and cyber attacks.
Exposure to cyber attacks topped the list of the biggest worries small-business owners face, even surpassing concerns about inflation and other economic issues, according to a 2023 report on cybersecurity released by Hiscox, a business insurance company.
The consequences of these breaches can extend beyond the initial threat, as well. Twenty-five percent of business owners surveyed by Hiscox indicated that cyber attacks had an overall negative impact on their business’s brand or reputation, and 20% said they had trouble attracting new customers as a result.
Here‘s what your business needs to know about the vast and evolving landscape of digital security.
Even the smallest businesses are at risk
While it may seem more lucrative for cyber criminals to go after big corporations and larger firms, the Hiscox report indicates that smaller businesses are increasingly under threat. Cyber attacks on firms with fewer than 10 employees have risen 13% since 2020.
“Hackers don’t care how small your business is or what you do,” Shawn Waldman, CEO and founder of Secure Cyber Defense, a cybersecurity consulting company said in an email. “They want your money and your data. Often, they have no idea who you are in the first place.”
Although cyber attacks can happen to any business, certain industries may be more likely to be targeted — particularly those that access or store a lot of sensitive client or customer data or information. Shavon J. Smith, a Washington, D.C.-based business attorney and founder of SJS Law Firm, works with small management and IT consulting firms that contract with big businesses and are therefore given access to their information, but are viewed as less secure because of their size.
According to Smith, medical offices may also be a target due to their small staff sizes and access to a lot of personally identifiable client information.
It’s easier to prevent a digital security breach than fix one
Businesses should prioritize proactive measures they can take to prevent an event from happening in the first place. It’s uncommon to find your attacker or recover stolen money or data once it’s gone, according to Smith. Once a cyber attacker has what they want, they are “lost in the wind.”
Studies indicate, however, that 95% of breaches in digital security can be traced to human error, which means they are preventable through internal and employee policies. This starts with policies that promote ongoing system maintenance and security. Smith recommends an initial review to pinpoint your overall vulnerabilities.
“The first thing you want to do is just kind of assess, ‘Where are our open ports? Where are our opportunities for things to go wrong, for people to hack into our system, for employees to lose data?’” she says.
If your employees have company-issued devices, for example, then your employee policy should lay out parameters on how they are to handle those devices, Smith says. That might mean forbidding employees to vacation with their laptops or prohibiting them from taking their computers home entirely.
An employee policy should also dictate who has access to confidential company or client information, which Smith says can help to decrease the chances of a security breach.
Cheap solutions can cost you down the road
Building digital security into your business budget can be expensive, and there’s certainly no one-size-fits-all solution, but failing to invest in proper systems can also be costly. In 2023, the median cost of a cyber attack for businesses with 10 to 49 employees was $9,500, according to the Hiscox report.
A common mistake both Waldman and Smith see small businesses make is relying on free or disreputable antivirus software and failing to update that software regularly. On top of that, Waldman warns against transitioning to cloud email providers without enabling security controls or multi-factor authentication. Email was the single weakest point of entry for cyber attackers, ahead of cloud or corporate servers, according to the Hiscox report.
A response plan can determine how quickly you recover
Any actions you take in the event of an actual cyber attack or digital security breach are typically about trying to cover your losses. According to Smith, your business’s response plan should cover some key steps:
Contact a cyber security specialist or legal counsel. Better yet, consult with specialists or lawyers when you first create your plan, so you already have a point of contact if an event occurs.
Notify your insurance company of a possible claim. When you purchase cybersecurity insurance, it’s important for your broker to understand your business and what it does, according to Smith. That can help them understand the scope of a breach and what it means for your clients or customers.
Contact law enforcement. Although it’s unlikely they’ll be able to do much right away, law enforcement may have investigations open, and any information of new attacks could be helpful to them.
Reach out to clients. In many cases, you may be contractually obligated to notify the businesses your company works with of a data breach, Smith says.
Alert your customer base. If you are a consumer-facing business, you should plan to alert your customers as soon as you have the full scope of the breach, and be prepared to offer compensation or free credit monitoring.
Do you want to get paid to give advice? A few years ago, I never would have thought that giving advice could turn into a way to make extra money. But after starting my website and sharing what I knew about personal finance, I quickly realized that I could make extra income. It’s amazing how…
Do you want to get paid to give advice?
A few years ago, I never would have thought that giving advice could turn into a way to make extra money. But after starting my website and sharing what I knew about personal finance, I quickly realized that I could make extra income.
It’s amazing how your skills, whether they’re in medicine, cars, law, tech, relationships, or anything else, can become a profitable business. I love helping others and, at the same time, earning money from what I enjoy!
In this article, I’ll go over:
Ways to get paid to give advice
Type of professionals that get paid to give advice
How to get paid giving advice online
How To Get Paid To Give Advice
Here’s a list of 16 ways to get paid to give advice.
1. JustAnswer
JustAnswer is a site that pays people to give advice and answer questions in different fields such as legal, tech, medical, veterinary, antique appraisers, and more.
If you’re an expert in a field that people usually have questions in, you can monetize your expertise on JustAnswer by sharing your expert opinion.
You may be wondering what kind of questions are asked on JustAnswer. Here are a few examples:
How much is my antique worth?
How can I lower my business taxes this year?
What can I do if a sinus infection won’t go away?
How do I fix my car’s alternator?
To get started on JustAnswer, you need to go through an application process (with a background check) and get verified that you’re an expert by providing proof of qualifications like degrees, certifications, or other relevant experience.
Recommended reading: 21 Ways To Get Paid To Answer Questions
2. Start a blog
I run a personal finance blog and share advice all the time (and I get paid for it!). Starting a blog is one of the best ways to share your expertise while creating a reliable source of income.
Sharing your expertise and knowledge with a blog is a great way to diversify your income. You can make money blogging by:
Affiliate marketing (where you get a commission when people make purchases through your links)
Advertising revenue
Sponsored content
Selling services like coaching
Selling products like books or courses
One of the keys to successful blogging is choosing a niche or topic that you’re both passionate about and that has an audience who wants to learn more.
Here are some popular blog niches you can try, depending on your expertise:
Education and career – If you have experience in teaching or career coaching, this niche can focus on helping others with their career goals, job interviews, or study techniques.
Personal finance – Share tips on budgeting, saving, investing, and side hustles. Many people are looking for ways to improve their finances.
Health – Topics like fitness, nutrition, mental health, and self-care are helpful.
Travel – If you love traveling, you can start a travel blog, sharing tips on budget travel, destination guides, family travel, or even remote work opportunities.
Parenting – This niche covers a wide range of topics, from newborn care and toddler tips to advice for teenagers. You can also write about balancing parenting and work or homeschooling.
DIY and crafts – Whether it’s home improvement, crafting, or upcycling projects, this niche is popular among creative individuals looking for inspiration and guidance.
Lifestyle – A lifestyle blog covers several areas like home decor, fashion, personal growth, and productivity.
Tech – If you’re knowledgeable about tech, you can give advice on the latest gadgets, software, app reviews, and even tutorials for beginners.
Beauty – This is a highly popular niche where you can share makeup tips, skincare routines, and product reviews.
Relationships – Help readers improve their relationships or personal growth by sharing advice on communication, self-improvement, or career development.
You can learn how to start a blog in the free How To Start a Blog Course.
3. Create an online course
If you’re looking for a passive way to make money by giving advice, creating an online course is a great way to do so.
My sister runs a popular online course and has done very well with it. Over the years, she has helped thousands of people with her business advice for website owners.
You can create a course on topics such as:
Meal planning and prep – Teach people how to plan meals, prep ingredients, and create healthy, budget-friendly meals.
Parenting tips – Help with topics like raising toddlers, managing screen time, or improving sleep.
Home organization – Help people declutter, organize their homes, and create better living spaces.
Fitness and wellness – Share workouts, stretching routines, or mindfulness practices like meditation or yoga.
Photography basics – Teach people how to use their camera or phone to take better photos. I recently saw a course teaching parents how to take better family photos with their phone, and it looked so helpful!
Gardening for beginners – Guide people through starting a garden, caring for plants, and growing their own fruits and veggies.
DIY home projects – Sell lessons on simple home improvement or crafting projects, like building furniture or making home decor.
Travel planning – Share tips on planning budget-friendly vacations, packing efficiently, and finding fun destinations.
Pet care – Teach new pet owners how to care for their animals, including training, nutrition, and grooming tips.
You can sell your online course on your website or course websites like Udemy, Skillshare, or Teachable (Teachable is my favorite course platform).
4. Answer surveys
You won’t get rich by answering surveys, but it’s an easy way to make money by giving your opinion.
Market research companies pay survey sites to find users to complete surveys for them. These paid online surveys help companies make better products and services.
Here are some of the recommended survey companies to sign up for:
American Consumer Opinion
Swagbucks
Survey Junkie
InboxDollars
Branded Surveys
Recommended reading: 12 Best Online Surveys For Gift Cards
5. User Interviews
User Interviews stands out from most market research companies because, rather than paying for typical online surveys, it specializes in focus groups.
This means they seek more detailed feedback from participants on different products and companies. Their studies are usually conducted via phone or video interviews, with the average study paying over $65.
Large companies like Spotify, Pinterest, GoPro, and Amazon use User Interviews to collect market insights. The platform runs over 2,000 studies each month, and last year alone, more than 77,000 participants were paid.
Michelle (my sister as well as the owner of this blog) participated in a focus group through User Interviews and earned $400 for just one hour of work. She said it was simple, and the entire process was completed online through a video call.
You can click here to sign up for free with User Interviews.
6. Financial advisor
Financial advisors are trained professionals who give financial advice to clients. You can make money as a financial advisor by charging fees for your services, receiving commissions on financial products, or both.
A financial advisor may help with financial planning, retirement, wealth management, insurance, investments, savings, and more.
To become a financial advisor, you need a combination of education and certifications. To get started, you’ll need a bachelor’s degree in finance, economics, accounting, or related field. You’ll also need an internship or entry-level job in finance, banking, or financial planning to get hands-on experience. Most importantly, you’ll need to get certified as a Certified Financial Planner and pass the licensing exams.
As of this writing, the average Certified Financial Planner’s salary is between $66,000-$122,000 a year.
7. Business consultant
One way to make money by giving advice is to start a consulting business and become a freelance consultant.
A business consultant is someone who uses their expertise to help companies improve their business, income strategy, and profitability.
Consultants get paid either by hourly rate, project-based fees, or retainer agreements. Business consultants can also make money by conducting training sessions and workshops for more money.
Business consultants are in high demand as businesses are always looking for ways to improve and make more money.
8. Personal trainer
If you love fitness and working with people, you can try making money as a personal trainer.
Getting a NASM personal trainer certification, which is one of the top certifications in the field is helpful. This is where you’ll dial in form, workout routines, and many other important fitness-related skills.
As a personal trainer, you can make money with one-on-one sessions, group classes, and even online training programs. Trainers typically charge per session or have package deals for multiple sessions. You can also make money by creating workout programs that people can purchase online.
9. Online coach
You can make money working as an online coach through digital platforms.
Some areas that you could coach on include:
Life coaching
Relationship coaching
Business coaching
Fitness coaching
Career coaching
As an online coach, you can make money with one-on-one coaching sessions, group coaching, or self-paced courses that people can buy directly from you. You can charge people one-time fees, package deals, or ongoing membership subscriptions for continued access to your guidance.
To grow your income, you can use social media platforms to build your brand and get people to trust you, such as by sharing helpful free tips in graphics or captions.
10. HelpOwl
HelpOwl is a platform where you can get paid to give advice online to individuals seeking help with different topics.
To get started with HelpOwl, register on the website and set up your profile. Your profile should showcase your expertise, skills, qualifications, and areas of advice.
You can also determine your fee structure for providing advice whether it’s per session or question.
11. Quora
You’ve likely heard of Quora since it’s a goldmine for getting any kind of question answered, but did you know you can make money with Quora?
Yes, it is possible to make money on Quora through a few different strategies.
Quora has a partner program that lets you make money by asking questions that generate high traffic and engagement to their website. You can get paid based on the ad revenue generated from the questions you ask.
Quora’s partner program is great for anyone who wants to become an online advice giver as you can share your honest opinion or answer a question in a simple comment.
12. Start a podcast
You can make money selling advice through a podcast.
This method of selling advice takes a lot of work but can be worthwhile if successful.
If you want to start a podcast to give advice, there are many great topics to choose from. You could talk about personal finance, relationship advice, or career coaching. Health and wellness podcasts are popular too, where you can cover fitness, mental health, and self-care. Parenting tips for new parents, small business advice, or life coaching are also good ideas. You could even share tech help, home improvement tips, or legal advice.
Whatever you pick, your podcast can help people improve their lives.
Once you build up your following, you can make money with ads and different sponsorships on your podcast episodes, along with affiliate links.
13. Start a YouTube channel
Starting a YouTube channel is another great way to get paid for giving advice, especially if you enjoy talking on camera.
I turn to YouTube all the time when I’m looking for answers and advice. It’s a helpful resource where I can find detailed explanations on just about any topic. Whether I need tips on personal finance, blogging, or even tech solutions, there’s usually a video that walks me through the steps. I love how I can watch experts in action, and it’s a great way to learn something new quickly and visually.
With YouTube, you can create videos in your area of expertise and build an audience of subscribers who value your knowledge. Whether you’re skilled in personal finance, cooking, fitness, or any other niche, there’s probably an audience looking for advice in a YouTube video.
To make money on YouTube, you can monetize your channel through:
Ads: Once you reach YouTube’s eligibility requirements, you can earn money from ads that play during your videos.
Sponsorships: Brands may pay you to promote their products or services in your videos.
Affiliate marketing: Include affiliate links in your video descriptions, earning a commission when viewers make purchases through your links.
Selling products or services: You can also use YouTube to promote your own products, courses, or consulting services.
Consistency is key on YouTube, so creating valuable, engaging content that resonates with your audience will help grow your channel and income over time.
14. Share advice on Fiverr
Fiverr is a great spot to sell your advice if you’re looking for an online job.
I searched on Fiverr and found 2,200 listings where people were offering to give advice. The topics included things like relationship advice, tax advice, fantasy football advice, blog advice, business advice, and more.
You simply create a profile and a listing where you share the type of advice you specialize in.
15. Website testing (such as with UserTesting)
Website testing is a simple way to make money by sharing your advice and providing feedback on the website user experience.
There are several well-known website testing sites including UserTesting, TryMyUI, and Userlytics. These sites connect you with people looking for user feedback on their websites and apps.
By using website testing platforms, selling expert advice, and building a strong reputation, you can successfully make money through website testing and sharing your insights.
16. Mystery shopping
Mystery shopping is a fun way to give your advice and feedback on a customer service experience, product, or store operations.
As a mystery shopper, your feedback tells companies how well their employees are treating customers, if customers are happy, and if any operational problems need fixing.
There are three different ways to make money mystery shopping including:
Cash and reimbursement (you’ll get paid to do the mystery shop, plus get the service/product for free).
Cash payment (an example would be a phone call mystery shop when you don’t buy anything).
Reimbursement (an example would be a restaurant secret shop – these typically don’t pay any money except for receiving free food).
BestMark is one of the biggest mystery shopping companies with a great reputation, and they have many different kinds of mystery shopping jobs available. Ath Power Consulting is another well-known mystery shopping company that has over 500,000 secret shoppers. They complete over 10,000 mystery shops each month, and they work with many popular companies.
Recommended reading: Want To Make An Extra $100 A Month? Learn How To Become A Mystery Shopper
Frequently Asked Questions
Below are answers to common questions about how to get paid to give advice.
Can you get paid for giving advice?
Yes, you can get paid for advising in many ways such as consulting (people pay for advice on specific topics), coaching (people paying for expertise in a certain area, like business, relationships, career, and life), and content creation (monetize your advice through blogs, podcasts, social media).
What type of professionals make money by giving advice?
The kinds of professionals getting paid to give advice include:
Consultants
Coaches
Financial advisors
Legal advisors
Counselors
Health experts
Tutors
Real estate agents
Educators
Creative professionals
Entrepreneurs
Public speakers
As you can see, the list is endless. By using the skills and knowledge you have, you can likely get paid to provide practical and personalized advice to people.
Can I sell life advice?
You can sell life advice if you have valuable life experiences that other people find helpful to learn from. People tend to hire life coaches, mentors, and advisors to help them with life challenges, achieve goals, and find purpose in their lives.
You can make money selling life advice in several ways including:
One-on-one coaching sessions
Online courses
Books
Blogs
Podcasts
Social media accounts
It’s important to identify your niche and who you want to help. For example, your target audience may be women looking for a career change or people who need help with relationship advice. Focusing on a specific niche will help you stand out from others and market your services more efficiently.
How can you get paid to give advice online?
There are many ways to get paid to give advice from your laptop. JustAnswer is a great way to get started getting paid to give advice and connect you to people seeking help in your field.
If you’re looking for a passive way to make money giving advice, create an eBook, course, blog, or podcast. You can make money by selling your products, advertising, using affiliate links, or creating sponsored content.
Can you get paid to give relationship advice online?
You can get paid to give relationship advice and dating advice by working as a relationship coach through platforms like BetterHelp (as a therapist) or via your own website. You’ll need specific credentials to work on sites like BetterHelp and Talkspace, whereas having a relationship blog doesn’t require certifications, but may be harder to make money at the beginning of starting your business.
How To Get To Give Advice – Summary
I hope you enjoyed this article on how to get paid to give advice.
If you have knowledge in a specific area, you can turn that into a business by giving advice. Whether it’s in fields like medical, legal, tech, personal finance, or relationships, there are many ways to get paid for your skills.
Plus, you can do this either part-time or full-time, so you can choose what kind of hours you want to work.
A small, steady amount of inflation is a sign of a healthy economy. But when prices rise too much too quickly, it lessens purchasing power, straining consumers and businesses.
Fortunately, the Federal Reserve (aka, “the Fed”) has a tool in its back pocket that can help tamp down inflation — the federal funds rate. By raising this benchmark rate, the government influences other interest rates, including rates for consumer and business loans. This makes borrowing more expensive and can help cool the economy, bringing inflation under control.
That said, raising interest rates doesn’t lower the pace of price increases overnight. There are also some risks involved in raising the federal funds rate too aggressively. Here’s a closer look at how interest rates and inflation interact.
Key Points
• To help control inflation, the Federal Reserve may raise the federal fund rate, which typically raises the interest rates offered by financial institutions.
• Raising interest rates makes borrowing more expensive, which tends to reduce consumer and business spending.
• Higher interest rates also encourage saving, since consumers will typically see higher interest rates on their savings accounts.
• It can take time for the Fed’s interest rate hikes to effectively ease the price of goods and services, and there are other factors that can affect pricing.
• Potential downsides to rising interest rates may include an economic slowdown, increased unemployment, and an increase in the cost of financing government debt.
The Relationship Between Interest Rates and Inflation
Inflation is generally defined as a sustained increase in the price of goods and services consumers regularly buy. While the inflation rate can be measured in a number of different ways, the Fed typically uses the Personal Consumption Expenditures Index (PCE) as its main measure of inflation. The PCE tracks changes in consumer spending on a wide range of goods and services.
The Fed has a stated goal of keeping inflation around 2% each year, as measured by the annual increase of the PCE index. To control inflation, the Fed will often take steps to influence interest rates. When interest rates are high, it costs more for consumers to use credit cards and take out mortgages and car loans. As a result, they typically start spending less. When demand for goods and services falls, it puts pressure on businesses to lower prices. Higher interest rates also help reduce spending by encouraging saving, as consumers benefit from higher yields on savings accounts.
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Mechanisms of Interest Rate Increases
In the U.S., decisions on monetary policy are made by the Federal Open Market Committee (FOMC), which is made up of the Board of Governors of the Federal Reserve as well as five of the presidents of the 12 Federal Reserve banks. Congress has mandated the Fed to set monetary policy so as to promote maximum employment and stable inflation (generally around 2% annually).
The members of the FOMC meet regularly to discuss monetary policy, viewing various economic indicators such as the employment rate, inflation rate, and current interest rates. Based on these market factors, they set the country’s target interest rate, known as the federal funds interest rate (also known as the federal funds target rate).
The federal funds rate acts as a reference for the interest rates big commercial banks charge each other for the overnight loans. A change in the rate that banks charge each other for loans impacts other market rates (like the prime rate) and, consequently, interest rates offered by banks and other financial institutions to consumers and businesses.
Effects of Higher Interest Rates on the Economy
When the Fed raises interest rates, it can have a number of effects on the economy, including:
• Reduced household spending. When interest rates on credit cards go up, consumers generally spend less on their cards. In order to afford credit card payments that now may be higher, they might also cut overall spending on goods and services.
• Slowdown in home sales. Higher rates on mortgages make it more expensive to buy a home. As a result, many consumers may decide to continue renting and hold off on purchasing a home.
• Sluggish business growth. When the cost of financing goes up, businesses may decide to hold off making large purchases or other investments in expansion and growth.
• Increased saving. Higher interest rates on savings accounts, especially high-yield savings accounts, incentivize saving, since account holders will earn a higher return on their balances.
• More foreign investment. Higher interest rates can attract foreign investors looking for better returns on their investments, which can increase demand for U.S. currency.
Recommended: APY vs Interest Rate
How Higher Rates Combat Inflation
When the federal funds rate rises, it sets off a ripple of effects in the U.S. economy. It makes it more expensive for commercial banks to borrow from each other, more expensive for businesses to finance large projects, and more expensive for consumers to get mortgages and other types of loans. This ultimately leads to less borrowing, less spending, more saving (thanks to good interest rates on bank accounts), and less overall money in circulation. Altogether, this tends to have a cooling effect on the economy, which helps to lower inflation.
It’s important to keep in mind, however, that the impacts of monetary policy set by the Fed are generally not swift. It can take upwards of 12 months for a rate hike to wend its way through the economy and actually ease prices. It’s also important to keep in mind that there are many things that impact inflation — from supply chains to labor costs to consumer demand. Interest rates are only one influencing factor.
Recommended: 10 Ways To Save Money Fast
Potential Drawbacks of Raising Interest Rates
While raising interest rates can be an effective tool for fighting inflation, it is not without its drawbacks. Here’s a look at some of the potential downsides of raising interest rates.
• Economic slowdown: As borrowing becomes more expensive, businesses may delay expansion or cut back on hiring, leading to slower job creation. Consumer spending may also decline, resulting in reduced demand for goods and services. Over time, this can lead to a slowdown in gross domestic product (GDP) growth, potentially tipping the economy into recession.
• A rise in unemployment: As businesses face higher borrowing costs, they may reduce their workforce or halt new hiring to cut expenses. Industries that rely heavily on borrowing, such as construction and real estate, can potentially see significant job losses as investment slows.
• Rise in the government debt costs: When interest rates rise, the cost of servicing the U.S. government’s debt also increases. Higher interest costs can strain the government’s budget and reduce the funds available for other important programs, such as healthcare, education, and infrastructure.
The Takeaway
Raising interest rates is a powerful tool used by the Federal Reserve, the central bank of the U.S., to control inflation, particularly in an overheating economy. By making borrowing more expensive and encouraging saving, higher interest rates reduce consumer spending and business investments, which can help cool demand and bring inflation under control.
However, this approach is not without its downsides, as it can lead to slower economic growth, increased unemployment, and higher government debt costs.
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FAQ
How quickly do interest rate hikes affect inflation?
The effects of interest rate hikes on inflation can take at least 12 months to materialize. Central banks raise rates to reduce borrowing and spending, which in turn lowers demand for goods and services, along with prices. However, it takes time for this chain of events to ripple through the economy. On top of that, inflation is influenced by numerous other factors (including global supply chains, energy prices, and labor markets), which can also delay the impact of rate hikes.
Can raising interest rates cause a recession?
Yes, raising interest rates too aggressively can potentially cause a recession. Higher interest rates increase the cost of borrowing for consumers and businesses, which can reduce spending and investment. If rates rise too quickly or remain elevated for too long, the economy may slow significantly, leading to reduced consumer demand, lower business activity, and ultimately job losses. If economic output contracts for two consecutive quarters, it generally indicates a recession.
What happens to savings accounts when interest rates rise?
When interest rates rise, savings account holders typically benefit from higher returns. In response to rising benchmark rates set by the Federal Reserve, many (though not all) banks and credit unions will increase the interest rates they offer on savings accounts This can make saving more attractive than spending.
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SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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After sustaining a 23-year high for over a year, the Federal Reserve has elected to slash the federal funds target rate by half a point, dropping from a range of 5.25%-5.50% to 4.75%-5%.
Lenders anticipated that the Fed would move to lower rates by some degree, and began adjusting mortgage rate offers ahead of the September 17-18 meeting: Rates fell 23 basis points in the week ending September 12. (A basis point is one one-hundredth of a percentage point.) This means that home shoppers who still find today’s rates out of budget shouldn’t expect more than modest drops in the coming days.
Why the Fed is moving quickly now
The Fed has held rates steady for the past 14 months in an effort to control inflation. Recent data shows that the economy is moving toward central bankers’ target inflation rate of 2% — the latest Consumer Price Index (CPI) report, a broad measure of price changes for goods and services in the U.S., shows that inflation slowed to 2.5% in August, down from 2.9% in July and 3% in June.
This data alone may have justified a softer cut of 25 basis points to keep inflation on a downward trajectory. However, job growth continued to slow in August, and a fairly weak July jobs report showed the rate of unemployment hitting a three-year high. Unemployment is a leading sign of recession, and the Fed’s decision to reduce rates by 50 basis points indicates that employment may have now eclipsed inflation as the Fed’s chief concern for the economy.
While this is good news for mortgage shoppers hoping to score a lower interest rate, the Fed’s aggressive move may reflect an effort to hold off “more rapidly deteriorating labor market conditions and weakening of the economy,” said Selma Hepp, chief economist and senior vice president at the housing data provider CoreLogic.
Lawrence Yun, chief economist at the National Association of Realtors (NAR), said that the Fed’s choice could be the result of both positive and negative factors. If an unsteady job market is the Fed’s primary motivation, it could mean that central bankers see the possibility of a recession. On the other hand, it could be a good sign “if the Fed has a solid belief that inflation is conquered, even as CPI remains at 2.5%.”
Mortgage rates have further room to fall (but home prices will rise)
Falling interest rates are likely to signal changes across the housing market. Freddie Mac’s August 2024 Outlook projects that the labor market will continue to weaken into 2025. In this scenario, Freddie Mac outlines the probability that mortgage rates will trend downward in the coming months, leading to a “significant surge in demand, mainly from the first-time home buyers left at the margins,” as well as a small uptick in housing inventory as the rate lock-in effect loosens somewhat.
With an influx of buyers and inventory remaining tight, home prices are expected to rise 2.1% in 2024 and 0.6% in 2025. Fannie Mae’s August economic development report projects that mortgage rates will average 6% in 2025.
While Fed watchers are mostly inclined to believe that another cut will come at the November 6-7 meeting, any decision by central bankers will be informed by trends in new economic data as it emerges. One CPI report and two jobs reports will be released between now and then, and what they reveal about the rates of inflation, unemployment and job growth will be a major indicator of when and how the Fed may choose to shift rates.
How home buyers can move forward
Market traders were divided over predictions of what central bankers would do in the days leading up to this September meeting. Those currently shopping for a mortgage should remember that mortgage rates will continue responding to expectations of what the Fed will do, rather than waiting for central bankers to take action. If additional rate cuts are expected, we could see mortgage rates fall even further before the November meeting.
There’s no perfect way to time the market, and buyers holding out for mortgage rates to hit their lowest point will have to contend with greater competition and higher home prices. While it’s understandable to want to get the best deal, the “right time to buy” is determined by personal factors as much as economic ones.
If you can afford to move forward with your homebuying plans now and want to take advantage of refinancing later, you can benefit from strategically keeping your closing costs as low as possible, since you’ll have to pay them again when refinancing. For example, if you’re hoping to refinance in the next year or so, it wouldn’t make sense to pay for points that lower your mortgage rate at closing right now.
However, while it can be useful to think about your refinancing plans when considering your closing options, it’s not recommended that you commit to a mortgage you cannot comfortably afford with an expectation that you’ll refinance later. The lack of consensus among industry experts going into this meeting should underscore the fact that it’s too risky to rely on a concrete timeline of when rates will hit your specific target.
It’s now possible to activate all 5% category credit cards for the fourth quarter of 2024, including the Chase Freedom, Chase Freedom Flex, Discover IT, Citi Dividend, US Bank Cash+ and some smaller cards. In this post we’ll provide the activation link for each card and links to track your spend, along with strategies to help increase spend in these categories.
Dates: October 1st – December 31, 2024. Store purchases can usually be done until the last minute while online purchases should be given a buffer zone since the charge typically posts on the shipping date.
Chase Freedom – Paypal, Pet, McDonald’s
Activation Link / FAQ / Sample Stores & Exclusions / Our original post
With the Chase Freedom and Freedom Flex cards, activate to earn 5% back this quarter on up to $1,500 in spend at Paypal, McDonald’s, Pet Shops and Vet Services, Select Charities.
PayPal – Super useful category. Remember that you can use Paypal to pay taxes; give charity; pay at millions of businesses like Walmart.com, Bestbuy.com etc; and even possibly pay in-store at some locations. It’s been mentioned the possibility of using Paypal at CVS stores to get 7x on the Freedom Flex card since that card also earns 2x extra points at Drugstores. It should also be possible to send money to a friend using the Family & Friends option for a 2.9% fee.
McDonald’s – this should be 7x on the Freedom Flex card since that card always gets 2x bonus points at Restaurants
Pet Shops and Vet Services
Select Charities
Tip: Click this link (login required) to check how far you are along the $1,500.
Discover – Amazon, Target
Activation Link / Our original post
With your Discover card, activate to earn 5% back this quarter on up to $1,500 in purchases at Amazon.com and Target.
Target and Target.com – not very useful for those who have REDcard which always earns 5%. Could be useful for buying Target gift cards since those do not earn 5% on the REDcard, but will earn 5% with Discover in Q4. Target usually runs a 10% off deal on their gift cards during the Q4 holiday season.
Amazon.com – also not too useful for those with the Amazon Prime 5% card
Activate to earn 5% Cashback Bonus at Amazon.com and Target from 10/1/24 (or the date on which you activate 5%, whichever is later) through 12/31/24, on up to $1,500 in purchases. Amazon.com purchases include those made through the Amazon.com checkout, like digital downloads, Amazon Fresh orders, Amazon Local Deals, Amazon Prime subscriptions, and items sold by third party merchants through Amazon.com’s marketplace. This also includes purchases in-store at Amazon Go and Amazon Fresh. Purchases made online and in-store with Whole Foods Market are not included in the promotion. Amazon, the Amazon.com logo, the smile logo, and all related marks are trademarks of Amazon.com, Inc. or its affiliates. Target purchases include those made in-store at Target, Target.com, or through the Target app. Purchases from individual merchants and stand-alone stores within physical Target locations may not be eligible for this promotion. Purchases made online or through the Target app from Target affiliates, individual merchants, or stand-alone stores may not be eligible for this promotion, including, but not limited to, targetoptical.com and targetphoto.com. Target and the Bullseye Design are registered trademarks of Target Brands, Inc. Listed merchants are in no way sponsoring or affiliated with this program.
Tip: Login, then click this link to see you how far along the $1,500 you are.
Citi Dividend – Restaurants, Citi Travel
Landing Page | Our Original Post
With your Dividend card, activate to earn 5% back this quarter at Restaurants and on Citi Travel. Citi is different than the other cards in that you have a $6,000 annual cap rather than a $1,500 quarterly cap. You can get 5% back on up to $6,000 in this quarter, you can save the entire amount for a different quarter, or you can use part up each quarter.
Restaurants – always a useful category
Citi Travel – hotels, car rentals, and attractions (excluding air travel) booked through the Citi Travel site at CitiTravel.com or by calling 1-833-737-1288
U.S. Bank Cash+/Elan – Select your Categories
Activation link | Merchant List | Our Original Post
U.S. Bank Cash+ and Elan Max offer 5% cash back in two categories, up to $2,000 combined total per quarter. Keep in mind that Car Rentals was recently replaced with TV, Internet, and Streaming Services.
Here are the current options:
TV, Internet, and Streaming Services
Home utilities
Select clothing stores
Cell phone providers
Electronic Stores
Gyms/Fitness
Fast food
Ground Transportation
Sporting goods
Department Stores
Furniture Stores
Movie theaters
Tip: Login here, then scroll down and click on the red “View Your Cash+ History” button.
U.S. Bank Shopper – Select your Categories
Our Original Post
The U.S. Bank Shopper Cash Rewards comes with a $95 annual fee and offers 6% cashback on your first $1,500 in combined eligible purchases each quarter with two retailers you choose. Options include Amazon, Apple, Best Buy, Home Depot, Lowe’s, Walmart, Target, and many more. You must enroll each quarter for two retailers.
Bank of America Customized Cash Rewards
Our Original Post
The Cash Rewards card from Bank of America offers 3% back on one selected category, up to $2,500 per quarter. If you don’t select anything it defaults to gas. Once you selected a category for one quarter, that remains your category in the future unless you change it. Each calendar month you can change it if you’d like, but you’re always limited to $2,500 for the entire quarter.
Gas and EV charging stations (default category)
Online Shopping; this category also includes cable, streaming, internet, and phone plan
Dining
Travel
Drug Stores
Home Improvement/Furnishings
This category is especially lucrative for those who have Preferred Rewards status with Bank of America which can get you 5.25% back on one of these categories at the higher relationship level.
Lots of useful categories here. Important note: the Cash Rewards card also offers 2% back at grocery stores and wholesale clubs up to $2,500 per quarter, and that $2,500 limit combines with the Category Selection limit. After spending $2,500, you’ll earn 1% back on everything.
Other Cards with 5% Category
Nusenda FCU – Retail, Restaurants
Landing Page | Our Original Post
Earn 5% this quarter on up to $1,500 in purchases on Retail Stores, Online Retail Purchases, Restaurants
This is on top of the regular 1% for a total earn of 6% back. (apparently no longer the case)
Langley FCU – Walmart/Target, Grocery, Department
Landing Page | Our Original Post
Langley Federal Credit Union offers 5% back each month in one selected category, on up to $100 cash back total ($2,000 spend).
The category options at time of this writing: Target & Walmart, Groceries, Department Stores.
Vantage West [AZ] – Select your Category
the 5% program is ending on October 1st.
Landing Page | Our Original Post
Safe Credit Union [CA] – Various
Landing Page | Our Original Post
Safe Credit Union Cash Rewards Visa card offers 5% this quarter on your choice of one category each quarter (with no apparent limit). This quarter the categories are: