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Debt consolidation combines multiple debts into one and can help your credit score. Bankruptcy can reduce your total debt at the cost of ruining your credit.
Debt consolidation and bankruptcy are two options for debt relief that have distinct advantages and drawbacks.
Debt consolidation means merging multiple existing debts into a single new loan. Debt consolidation loans won’t clear your current debt, but they can help you minimize late payments and other fees incurred from having multiple loans.
Bankruptcy involves discharging or restructuring all your debts—but it stays on your credit report for many years, depending on which chapter you file for. It’s generally considered a last resort when no other debt-relief options are appropriate for your situation.
Which debt relief option is right for you depends on your financial situation. Below, we’ll compare debt consolidation vs. bankruptcy and discuss some things to consider when choosing a debt relief service.
What Is Debt Consolidation?
Debt consolidation involves merging multiple debts into one loan. The goal here is to streamline the process of paying down your total balance while also improving your credit utilization rate.
Debt consolidation loans and balance transfer credit cards are crucial to this process. That means you need to be able to qualify for new credit, which can be difficult if you regularly make late payments or have collection accounts on your credit report.
When you consolidate, your new debt won’t be in collections, and your previous debts can show up as “paid in full” on your credit report. One of our tips for improving your credit history is to consistently make payments on new accounts. Adopting this habit will help you improve your credit over time.
Is Debt Consolidation a Good Idea?
Debt consolidation can be an excellent tool for people who would rather pay down one loan instead of managing multiple debts. Consolidation is also a good idea for people with good or better credit scores, as better credit can help you secure the best loan terms.
Payment history makes up 35% of your credit score, according to the FICO® credit scoring model. Knowing how your credit score is calculated and consistently paying off your minimum balance each month are vital to credit score growth.
What Is Bankruptcy?
Bankruptcy is a legal restructuring of your debts. When you file for bankruptcy, the court considers your debts and your income. Depending on the type of bankruptcy you file, you may need to submit a plan for paying back some of your debts. However, the result of finalizing the bankruptcy process is that most or all of the debts you entered with are considered discharged.
Whether you file Chapter 7, 13, or 11, if your bankruptcy is successful, you can start with a “clean slate” as far as what you owe goes. However, your credit score after bankruptcy procedures are finished will be drastically low. Your credit report will still reflect the late payments and issues leading up to the bankruptcy. The bankruptcy itself will also stay on your credit report for seven to 10 years, depending on the type of bankruptcy you file.
When Should I File for Bankruptcy?
As mentioned previously, bankruptcy should usually be your last resort. If you’re unable to secure a reasonable consolidation loan or if you don’t possess the funds needed to pay off your debts, bankruptcy might be worth considering.
It’s worth noting that filing for bankruptcy will affect people with higher credit more than individuals with lower credit. We also strongly recommend learning how to rebuild your credit after bankruptcy long before you file. Taking swift action can lessen the severity of filing for bankruptcy.
What Are Balance Transfer Cards?
For those wondering, “how do debt relief options affect your credit score?” it’s crucial to understand the other options you might have. If you’re primarily dealing with high-interest credit card debt and you feel like you’ll never get ahead on it, you could consider a balance transfer card.
The best balance transfer cards typically come with low introductory APR offers. You can transfer existing balances to the new card and not pay interest on it for a certain amount of time. That lets you make payments on the balance and pay it off faster. One of the most common is closing your older accounts. We recommend keeping your old accounts open and just using them less.
Maintain Strong Credit With Credit.com
If you’re not dealing with credit card debt or don’t want to open another credit card account, then you might consider a debt consolidation loan. These loans let you convert your debt to a single loan, which makes managing your financial life that much easier.
Whatever debt relief option you choose, Credit.com has your back. Sign up for our to keep track of your finances and additional tips and tricks for improving your financial health.
No matter how you plan to increase your revenue, maintaining strong credit is pivotal. Good or even excellent credit scores can help you secure lucrative loans and might even open the door to higher-paying positions. With Credit.com’s ExtraCredit service, you’ll get reliable updates about your credit score and tailor-made strategies to help you increase your standing.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn investment and tax strategies to help you achieve financial security and prepare for a prosperous retirement.
How can you balance saving for emergencies and investing for the future? What strategies can you employ to maximize your tax benefits and build a secure financial future? NerdWallet’s Kim Palmer and Alana Benson discuss investment strategies and tax planning to help you understand how to navigate your financial journey effectively. They begin with a discussion of investment strategies, with tips and tricks on understanding different investment accounts like 401(k)s and IRAs, leveraging compound interest, and the importance of starting investments early. Then, Alana discusses tax planning and filing in-depth, covering the intricacies of different tax forms like W-4s and W-2s, the significance of estimated taxes for freelancers, and strategies for managing capital gains taxes.
Kim and Alana delve into retirement planning and the challenges of active versus passive investing. They provide a framework for prioritizing your finances, emphasizing the creation of an emergency fund, taking advantage of employer 401(k) matches, and understanding the role of asset allocation based on age and risk tolerance. Additionally, they tackle the decision-making process in personal finance, such as choosing between paying off debt and investing, and the pros and cons of having a financial advisor.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Hey listener, we’ve got a special episode in store for you today. Our investing and tax Nerds recently hosted a webinar going deep into how you can level up your investing and tax strategy. So we packaged that up into a podcast episode for you. The Nerds talk about what you need to know about different investing accounts, how to get help with your taxes and more. So here’s the webinar.
Kim Palmer:
Welcome everyone. I am Kim Palmer. I’m a personal finance writer at NerdWallet where we help people make smart decisions. One important note, we are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances. NerdWallet Inc is not an investment advisor or broker and does not provide personal financial advisory services. Today we are excited to talk to you about the basics of investing and taxes and we think we have some helpful info to share with you. You can always find more at nerdwallet.com or on the NerdWallet app. Our goal today is to kick off a helpful discussion about investing and tax information and tools. Alana Benson writes about investing topics including stocks, funds, and ethical investing. And now I will hand it over to Alana.
Alana Benson:
Thanks Kim. Hi everyone. Thank you for joining us today. So before we start, I just want to say a couple of things that often get forgotten when we’re talking about investing. So first, investing usually comes second to some other goals. If you’re having a hard time paying for necessities or you don’t have an emergency fund, it’s really important to focus on those things before we even start worrying about investing. Second, instead of scrimping, try to increase your income. So I didn’t start investing until I was in my late 20s, and that’s because one, I didn’t work at NerdWallet yet, so I literally didn’t know anything. And two, I was making around $25,000 a year, so I didn’t have much expendable income. And when you don’t have extra income, it’s really hard to prioritize investing and it just might not even be a good idea to do that.
When I started making more money, it was suddenly a lot more possible for me to invest for retirement. So if it’s possible for you and you want to be investing more, look for jobs that will pay you more or look into side hustles, but cutting back on your streaming services probably will not save you enough money for retirement. And finally, if you don’t have the money to invest now, that’s totally fine. Some people have serious money anxieties and others just don’t have the cash. Whatever your reason is, don’t stress too much about it. Just keep learning and when you’re able to, you can start investing. So why do we invest? What is the point of all this? And the answer is that it’s because we like money and that’s okay. There’s no shame in admitting it, I like money, most people like money. It’s because money isn’t just money. It’s not like Scrooge McDuck diving into pools of money and buying Maseratis. It’s not that.
It’s about not being stressed about your money all the time and it’s about being able to buy everything that you need and some stuff that you want comfortably without having money stress take up all of your energy. Money allows us to thrive instead of just survive and investing helps you make more money than you could ever possibly make just by working at a job. So okay, what actually is investing? This whole process is very strange. Okay. Investing is the process of money that you already have making additional money for you. And this works through what’s called compound interest. Compound interest means that your gains get a little bit bigger every year and that’s also why starting when you’re younger gives you a huge advantage and more money in the long run. So for example, you just start at that little number one in the box up there. Say you buy an investment for $100, if it goes up the average stock market return of 10%, it could then be worth $110, meaning that you’ve made $10.
Then that $10 that you earned also starts earning compound interest on top of the $100 you initially invested. That doesn’t sound like much of a profit, but imagine if you were doing it with way larger amounts of money over a way longer period of time. Now that 10% is an annualized rate, which means that you’re not going to get 10% every single year. In all likelihood, some years you’re going to finish up, some years you’ll finish down. But over the course of decades when you average all that out, you tend to get about 10%. The way you actually start investing is through an investing account. And there’s a couple of different types, but the type of investment account you have is actually really, really important because a lot of them have some pretty significant tax benefits that you want to take advantage of. So you’ve got your 401(k)s and these are offered through your employer. You add money to it and sometimes your employer matches it. So it’s basically free money. If you have a 401(k), you’ll likely choose your investments from a pre-selected list or a fund that will automatically adjust itself over time.
So this means 401(k)s are typically very hands off. IRAs on the other hand are investment accounts that you open up yourself. IRAs can be opened online through brokerages and actually at a lot of large banks, they also do that. So it’s likely you can open up an investment account just through your bank. Unlike with a 401(k), IRAs you’ll have to choose your own investments in those accounts. You may have heard about a thing called a Roth IRA or a Roth 401(k) and it’s good if you know the difference. So with a Roth, you pay taxes on your money now just like any other money that you earn and then the money you have invested inside that account grows tax-free and you can take it out tax-free in retirement. With a traditional IRA or 401(k), the money you contribute today is pre-tax.
So that is you get to deduct it from your income taxes this year. So it’s like a nice little treat this year, but then when you cash it out in retirement, you’ll owe income taxes on it. This is really, really important. I’ve seen a lot of people make this mistake. Your investment account is not an investment, so a Roth IRA, a 401(k), not an investment. So if you have a Roth IRA, that’s great, but that doesn’t mean you’re actually invested in anything. So you fund your investment account and then you buy investments from there. But I’ve heard of people opening a Roth IRA, putting in a bunch of money and then wondering why it didn’t grow over the last 10 years. So you have to purchase investments for your money to actually grow and if you don’t do it, you’ll miss out on all of those years of growth, so very important.
And there’s a couple different types of investments that you can choose from once you open and fund your investment account. So you’ve got stocks, I’m sure everyone’s heard of that, these are shares of ownership in companies and the way you make money from them is if they go up in value and some pay you a cut of the company’s profits on a regular basis. Then you’ve got bonds. This is when you loan money to companies or the government and they pay you interest. Funds, now these are very exciting because they’re basically just baskets of stocks and bonds that you buy all at once. So a fund is still a stock or bond based investment depending on the type of fund that you get. And there’s a lot of different kinds such as index funds or exchange traded funds and mutual funds, but they’re all collections of investments that you buy at one time.
And I think funds are pretty awesome because if you own a stock and that company goes out of business, you lose all of your money. But if you invest in a fund that covers 100 stocks and that same stock goes out of business, your investment is buoyed up by the other 99 companies. So again, all of these investments, stocks, bonds and funds, you buy them from your investment account and then you own them in there. All right, so let’s talk about the stock market, it’s this weird nebulous term that’s hard to understand. But the stock market is just where people buy and sell investments, but now people just trade investments online. So the stock market is made up of several what are called market indexes. Now these are basically just predetermined lists of companies and the performance of that overall list can tell us a lot about the health of the US economy.
So for example, the S&P 500, something you probably have all heard of, that’s just the list of 500 of the largest publicly traded companies in the US and it includes companies like Apple and Amazon. So when we say the stock market is down today, that means that on average most of those companies aren’t doing well. And you can’t invest in the literal stock market, but you can invest in funds that include all the same investments. So these are called index funds because they track a market index. So again, if you have an S&P 500 index fund, it should perform pretty closely to how the S&P 500 itself is actually performing. The S&P 500 goes up 10% a year on average and 6.5% after inflation. And this is just an average, so some years the market goes up more, some years it goes down less, but when done well, investing can potentially mean doubling your money every few years for doing basically nothing, which is my favorite way of earning money, by doing nothing. It’s great.
So let’s talk strategy. This is all about the way that you invest, when you put your money in and when you take your money out. So passive investing is where you buy that S&P 500 index fund and you keep adding money into it until you retire. It’s very boring, but it’s effective. So it can give you that 10% return on average over the long haul, but a lot of people want to make more than that 10%, and they do so by actively buying and selling stocks, crypto options and other high risk investments. They try to predict when they’ll be low, then they buy them and then they turn around and try to sell them when they’re high. So these people are called active traders or day traders. Only 20% of active traders make money over a six-month period. That is not a lot of people.
There have been a lot of studies over the years that show that active investing is a way less lucrative fashion than boring old passive investing with that index fund. Plus active investing is a lot more work, you have to do all kinds of research and you keep an eye on the markets and you can hypothetically earn more by actively trading versus passively earning the same amount as that historical return of 10%. But most people end up making less when they actually try it, and that’s because people are really bad at predicting things. And in order to make money on the overall stock market over the long term, you have to be really good at predicting things all the time. So maybe you make it big on one stock, but the odds of that happening again and again are very low. So let’s put all of this information together, the accounts, the actual investments and the strategy.
Here’s how financial advisors suggest you prioritize your money when you’re starting to invest. So the first thing you want to do is you’re not actually going to invest at all. The first thing is that you’re going to have an emergency fund. So this is money that you won’t actually put in the stock market, and that’s because when your money is invested, its value can change day by day. So say you have $1,000 and you want to use it for an emergency fund, but you invest it, when you have to fix something on your car suddenly, you go to check your money and its value could be $600 instead of $1,000 and that’s not good. If you put it in a high yield savings account, you can access that money at any time without risking its value. Plus right now the interest rates are really high.
So your money could be earning 4 to 5% just by sitting there. So next, you want to get that 401(k) match if it’s available to you because it’s free money. After that, it’s a good idea to look into IRAs. Both IRAs and 401(k)s have what’s called a contribution limit, which is just the maximum amount of money you can put in each of them every year. If you’re able to max out an IRA, then it’s a good call to move back to your 401(k). And the reason you switch around like that is because of the way the tax benefit works. So it’s likely more beneficial to invest in an IRA over a 401(k) if you’ve already gotten your match, if you have to choose between the two. Then if you max out your 401(k), you can move to a standard brokerage account. And this is not a list of everything you have to be doing right now.
You might be thinking, “Whoa, maxing out an IRA is $6,500, I cannot afford that”, and that is totally fine. So I like to picture it as a waterfall. So when you fill up your emergency fund, then you can start working on getting that 401(k) match. Only after that bucket is full should you then move on to investing in an IRA and so on. And wherever you’re at in your bucket filling journey is okay. It’s just nice to know what to do next when you’re ready for it. So we already talked about what accounts to invest from and the investments you can buy, but then do you just start buying a bunch of index funds or stocks or bonds? How do you know how much of each investment to get? And that is all about risk tolerance. And to understand that we have to understand how risk works over time.
If you’re investing for retirement and you’re in your 20s now, that means you have a ton of time for your investments to grow and then drop dramatically and then rise back up. So financial advisors would say you can afford to take on a bit more risk, AKA invest in riskier investments, because you have time for your investments to bounce back. Now, if you’re investing for your retirement and you’re 65, you don’t want to risk all the money you’ve been investing for years and years because you’re going to actually need to use it to pay for stuff in retirement pretty soon, so you want to protect it. And figuring out how much of each investment you should have is a fancy term called asset allocation, but it just means how much of your portfolio is in which of these investments.
And age is just a number, but typically when you’re younger, you may be able to afford to take more risk because you have more time for the stock market highs and lows to even out. So stocks, and okay, remember index funds and mutual funds are often made up of stocks so those count too, but those tend to carry more risk than investments like bonds. And an example of a 20-year-old’s investment portfolio, which includes all of your accounts so your 401(k), your Roth IRA, all of that together, that could be 100% stocks. And that’s fairly risky, but those 20 year olds are not going to retire for a long time. Now, a 65-year-old might have way more bonds because they don’t want to risk all that money they’ve earned over time. And one thing some investors do to mitigate risk is to slowly shift their asset allocation from high risk investments to low risk investments over time.
And again, I’m not a financial advisor and this is not personalized investment advice, but how much of each investment it’s good to have will usually depend on how much risk you are willing to take. And an investment portfolio can be really simple or really complicated. So you could have that one S&P 500 index fund and you purchase it from a Roth IRA, and that’s just all you do. Just if you want to keep it really simple or you can make it more complicated. So maybe you explore several stock-based funds such as international stocks and healthcare stocks and technology stocks, and you could invest in those types through a fund. So instead of buying 30 technology stocks, you just have one technology stock fund, then a small slice in bonds, and then an even smaller slice is crypto or other high risk investments. Though financial advisors have varying opinions on the safety of crypto.
So keep in mind, this is just an example and not necessarily what you should do personally, but it is really helpful to look up asset allocation portfolios through an online brokerage and see what they recommend for your specific age and when you plan on retiring. You can also talk with a financial advisor who can help guide you through those decisions. And investing is great because it can help you earn wealth, which you could spend on a boat, but more than likely one of your biggest investing goals will be retirement. And the sad truth is that in some things like retirement, they just cost so much that you’ll probably never afford them just by putting money in a savings account. And that’s why we say we have to invest for retirement. And the truth is that most people just aren’t saving enough for retirement.
So you’ll probably have a lot of expenses and you have to pay for that in retirement and some of it’s necessary like food or housing or medical care and some of it is travel or bucket list stuff, but you may not be working anymore or at least not as much as you were. And once you factor in inflation, it’s likely that a dollar today will be worth way less when you’re in retirement. And saving for retirement has gotten even more difficult because you can’t necessarily afford to live on social security. Medicare doesn’t always pay for your health needs and pensions aren’t really as common as they used to be. And because of all this, it’s really important to start investing for retirement sooner rather than later.
And if you’re early in your career, it might seem silly to worry about retiring right now, but if you start investing sooner, you actually spend less on retirement than if you start investing later in life overall and that’s because of compound interest. So our retirement calculator shows that if you start putting away $100 per month, that could grow to nearly $400,000 in 35 years. And it’s always good to know how much you should be trying to invest. When you have a long-term goal in mind, you want to know what that number is. So a retirement calculator can be a big help to figure that out, including NerdWallet’s retirement calculator. No shame, I’m going to plug it, but some financial advisors recommend saving 15% of your pre-tax income for retirement. So okay, let’s break that down. What does that look like?
So if you make $100,000 a year, again just because easy math, that would be $15,000 annually that you’re trying to save for retirement. But if you had a 5% match on your 401(k), you’d already be saving $10,000 a year between the $5,000 you make and the $5,000 your employer puts in. And then if you contributed another $5,000 to your Roth IRA, you’d already meet your target goal of saving $15,000 a year for retirement. You should also think about how much you can make during those peak earning years. If you’re younger, what career are you looking to have? You can look up what those wages tend to look like on a site like Glassdoor or ask someone in your life who is in that career path, and maybe do that tactfully because you’re asking about money. But figuring out what you want to be when you grow up may not be something you want to think about right now.
But to be honest, I studied English in college and no one told me about my job prospects. I figured that I would have to write a super famous book or be a teacher and you don’t have to have everything figured out now, but it doesn’t hurt to see how much a potential field could earn and figure out what careers are open to you. And just keep in mind that relationship between your earnings and investing like we talked about in the beginning. And if you’re later in your career, it is harder to take advantage of compound interest, but some of those investment accounts have those catch up contributions that we talked about so you’re able to contribute more after a certain age. Thank you all so much for listening to me talk very fast for a long time, and now I will hand it back over to Kim to talk about taxes. Thanks so much.
Kim Palmer:
Great, thank you so much, Alana. That was great. Someone actually asked in a pre-submitted question, “Why do I have to pay taxes?” Well, here is why. Taxes are used to pay for a lot of different things like clean water, roads, schools, healthcare, and the military. And your tax return is due every year in mid-April to the IRS. We’ll talk a little bit later about what to do if you need an extension, but in general that is the deadline. But first, let’s back up a little bit. When you file taxes, there is so much paperwork. One really important one is the W-4. That is the document that your employer asks you to fill out when you start a new job. And it plays a really big role in telling your employer how much in taxes to take out of each paycheck. It asks you things like your filing status, dependents, how much tax to withhold, and if you get a really big tax bill or a big refund, then you might want to go back and revisit your W-4 just to make sure you’re withholding enough but not too much.
There’s also the W-2, which is a document that your employer sends you to summarize how much in total they took out of your paycheck the previous year, and you’ll need to reference all those numbers when you file your tax return. If you are self-employed or you work a side hustle, then taxes won’t be automatically withheld from your paycheck, and that means you might have to pay something called estimated taxes, which is typically four times a year. In January, you’ll get something called a 1099 form that outlines how much money any company paid you, and then you’ll use that information when you file your return. And then finally, the 1040 is the main form you use when you file taxes, and we’ll drop a link in the chat for more about that. Okay, so you have all of your forms set. How do you actually file your taxes?
You can do it yourself through the IRS. You can use an online tax prep software or you can use a tax professional like an accountant or a tax preparer. If you do it on your own, you can either use paper forms or get access to brand name tax prep software through an IRS service called Free File. But it’s important to know that only people who make below a certain income qualify for the Free File program. If you use tax software like TurboTax, H&R Block or NerdWallet Taxes powered by Column Tax, many of these providers use a Q&A style to help you do your taxes and some even offer paid upgrades that connect you directly to a tax professional. If your finances are really complicated and you want some extra help, then you can also work with a tax preparer such as a certified public accountant.
You do want to make sure to ask them lots of questions and check their credentials before you agree to share your financial information. And you also want to check to see if they have a prepared tax identification number, which is an ID that’s required for anyone who files tax returns for compensation. The US does not have a flat tax system, and that means that portions of your income can be taxed at different rates. There are currently seven tax rates for federal income taxes that run from 10% to 37%. And which tax rate applies to you depends on your income and your filing status. So you might hear people say, “I’m in the 12% bracket” or “I’m in the 22% bracket”, but being in a tax bracket doesn’t mean you pay that tax rate on everything you make. And in reality, people’s income can fall into several different tax brackets depending on how much they make.
Portions or chunks of your income are taxed at different rates and some of those different taxes are then added together. So for example, some of your income could be taxed at a rate of 10%, another chunk could be at 12%. The more you make, the higher the tax rate might be on some of your income. And depending on the state where you pay your income taxes, you might pay a flat rate or a progressive rate similar to the federal structure. A small handful of states have no state income tax. If you want to pay less, you can look for tax breaks. Tax credits and tax deductions are two tools that can help you potentially minimize your tax bill, but they do work in different ways. Tax deductions reduce your taxable income. As a simplified example, a $25,000 tax deduction on $100,000 of taxable income means that only $75,000 of that income will get taxed.
Tax credits directly reduce your tax bill by the value of their credit. So this means if you owe $2,000 in taxes and you’re eligible for a $1,000 tax credit, you’ll end up owing $1,000. Tax credits tend to be more valuable because they have the potential to pack a bigger punch, so you definitely want to try to take all the tax credits you qualify for, and you could even get money back if a credit is refundable. Common tax credits include the earned income tax credit, the child tax credit, the lifetime learning credit, and the American opportunity credit and savers credit.
All right, I alluded to this at the beginning, but what happens if you’re not going to be ready by mid-April? What do you do? If you know you won’t be able to file on time before tax day, you can file for a free extension with the IRS and that gives you until mid-October to file your return. But you want to make sure that at least 90% of what you think you’ll owe in April is covered by an estimated tax payment or your withholdings. Otherwise, the IRS can hit you with a penalty for late payment. The failure to pay penalty is really no joke. It’s 0.5% of your unpaid taxes each month your payment is late plus interest. If you file late and you did not file an extension, you could also get hit with a failure to file penalty, which is 5% of your unpaid taxes each month that your payment is late. There is some good-ish news, if you file late but you don’t owe anything, you won’t get penalized but that doesn’t mean you’re not still obligated to file.
If you don’t, the IRS could file a return on your behalf and you might miss out on a refund if you’re owed one. And if your tax bill is so high that you can’t pay it off, you do have options. You can set up a long-term or short-term payment plan with the IRS.
I know that was a whole lot of information and taxes can seem scary, but we break down lots of popular tax questions and terms on nerdwallet.com. We have some time to address some pre-submitted questions from the audience ranging from about Roth IRAs to the pros and cons of having a financial advisor. And I do want to give a reminder here as we answer these questions that we are not tax or investing advisors. We are writers who focus on these fields and what we say is not investing or tax advice. So with that said, let’s dive into these questions. A question that came to us in an email was: how do you choose between paying off credit card debt and investing in saving for emergencies?
I really love this question because I think it speaks to some of the biggest challenges of personal finance, navigating these choices. And the answer is it’s really up to you. Many financial advisors say that the first step is to create a starter emergency fund, and you can read more in our article that we’ll link to, Should I Pay Off Debt Or Save? And you’ll see most people think about saving $500 to $1,000 first and then after that to consider contributing enough to a workplace retirement plan if they have access to one, and then contributing 3% to 5% of income to an IRA or a Roth IRA. And then financial advisors say people can consider focusing on paying off high interest debt and amp up investing efforts once they have paid that off. And now Alana, I’ll turn over to you. Perhaps you can answer the questions about Roth IRAs.
Alana Benson:
Absolutely. So a couple folks were wondering, before we went over everything, what a Roth IRA is and how does it work and when is it worth it to open one? So we already covered this a little bit, but again, it’s an individual retirement account and it lets you contribute money that you’ve already paid taxes on. So think about when you get your paycheck. That money has already had taxes taken out of it. So once you hit age 59 and a half and you have held the Roth IRA for at least five years, you can withdraw your contributions and any earnings, which is a fancy word for money that you earn from investing, without paying taxes again. And whether it’s worth it is up to you, especially if you’re trying to decide between a Roth IRA and a traditional IRA because it’s about when you pay those taxes and if you have a traditional IRA, you do get that tax break right now.
So that’s a personal decision. But you can also take out money tax-free from your Roth IRA later in life. So if that’s something that you are really trying to parse out, it might be good to talk to a financial advisor because they can help you with that question. We had two other questions. The first one is: how do you calculate how much money to put in your Roth IRA if you make over the maximum amount? So we didn’t actually cover this, so Roth IRAs do have income limits, but there is something called a Backdoor Roth that lets you contribute money first to a traditional IRA, pay taxes on it and then roll that money into a Roth IRA. And then our last question is: what are the pros and cons of having a financial advisor and how do you find one?
This is such a good question. The pros and cons really depend on your situation. The catchall term ‘financial advisor’ is used to describe a wide variety of people and services, including investment managers, financial consultants, financial planners. First and foremost, you always want to verify a financial professional because financial advisor doesn’t require people to be vetted. Certain things like a certified financial planner or a CFP, those actually have a very high level of education and have a certification that you can verify online. So anyone that you are talking about money with, you want to make sure that you are vetting them. And some of these people can just talk to you about your finances and some of them can actually manage your investments for you if you want that. Financial advisors, depending on the kind that you choose, can be pretty expensive. A robo-advisor is like an AI version of a financial advisor.
You just set up an account for one and then they charge you a pretty modest fee. And based on your age and your risk tolerance, it will manage your investments for you. An online financial advisor can offer more services and you can actually talk to a human being, but those do tend to cost a little bit more. And then you could go to an in-person financial advisor, depending on their credentials, that might cost even more, but sometimes it’s really nice to talk to somebody that you know and you can grow that relationship with them over time.
Kim Palmer:
Great. Thank you, Alana. And I think, actually, I can squeeze in one more question that we received. How do taxes work with investment accounts? How much do we set aside so we aren’t surprised by a tax bill? Which is a great question. If you’re selling stocks from a brokerage investment account, then you should be aware of three words, capital gains taxes. Those are the taxes you’ll pay when you sell assets for profit. Assets that you have owned for more than a year are subject to long-term capital gains tax, and the capital gains tax rate is 0%, 15% or 20% on most assets. Capital gains taxes on assets held for a year or less are subject to short-term capital gains. If you regularly trade stocks or other investments, you might be subject to short-term capital gains.
Those profits are taxed as ordinary income based on your tax brackets, which we went over before. Your final tax bill depends on a number of different factors. If you don’t want to be surprised, estimate what you’ll owe using tools such as a tax calculator or IRS worksheets. If needed, consider setting aside enough to cover the tax bill or paying estimated taxes and as always, your specific situation will differ and we are not tax professionals. We hope that you enjoyed this webinar and learned something today. If you’d like to get even more clarity on your finances and continue learning with NerdWallet, consider signing up for an account with us at nerdwallet.com. Thank you so much for joining us.
Sean Pyles: And that’s all we have for this episode. To send the Nerds your money questions, call or text us on the Nerd hotline at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. Here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances. This webinar episode was produced by Alikay Wood, Sheri Gordon, and me. We had editing help from Liz Weston, Sara Brink mixed our audio, and a big thank you to NerdWallet’s editors for all their help. And with that said, until next time, turn the Nerds.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Master self-employment taxes and avoid common tax mistakes with expert strategies for managing your finances year-round.
How do self-employed taxes work? What are some common tax mistakes self-employed people make? And can you really write off payments on a luxury vehicle if you use it for work purposes? Hosts Sean Pyles and Elizabeth Ayoola discuss the intricacies of self-employment taxes and strategies for financial success and IRS compliance to help you understand how to navigate tax season as an independent worker.
CPA and financial strategist Krystal Todd joins them to delve further into the details of self-employment taxes, with tips and tricks on budgeting for personal and professional life, the importance of making quarterly tax payments, and whether to DIY taxes or hire a professional. They also discuss strategies like depreciating assets, the benefits of hiring family members, and navigating the complexities of tax deductions.
Plus: financial strategies for handling unexpected income and managing self-employment taxes, the importance of setting aside funds for unexpected expenses, and the advantages of timing revenue recognition and prepaying expenses for tax benefits.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
As Ben Franklin himself said, in this world, nothing is certain except death and taxes. Taxes, as we all know, can be wildly confusing, and that goes double when an employer isn’t there to help.
Krystal Todd:
We need quarterly payments just of you estimating how much you think you’ll be paying in taxes, and then at the end of the year when you actually file your taxes, they’ll make adjustments based on whatever credits and deductions you’re eligible for, what you’ve already paid, and then you’ll see what you net.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Elizabeth Ayoola:
And I’m Elizabeth Ayoola.
Sean Pyles:
Today we bring you episode two of our nerdy deep dive into self-employment. In our last episode, we talked about the importance of budgeting when you’re working for yourself. Obviously here at Smart Money we think it’s a good idea for everyone to budget, but especially if you’re self-employed, you’re going to need to budget for both your personal life and your professional life.
So in this episode, we’re going to answer the most important tax questions self-employed people have, like how do self-employed taxes even work? Is it better to DIY your taxes or hire a pro? And can you really write off payments on a luxury vehicle if you use it for work purposes? Welcome to tax season.
Elizabeth Ayoola:
Womp womp. My favorite part of tax season is when it’s over. Thankfully, I’m getting better at taxes every year and I’m also learning to outsource. Shout out to my tax person. Anyways, yes, it’s February and it’s tax time for all of us. And if you’re a gig worker, freelancer, contractor, or other solo entrepreneur, you need to make sure that you’re doing all the heavy lifting an employer would usually do for you. And you have to do that to avoid mistakes and IRS penalties. Hopefully those who aren’t new to self-employment have withheld enough quarterly taxes throughout the year so they’re not hit with an IRS penalty. New listeners who are about to dip their toes into self-employment are about to learn about how self-employed taxes work.
Sean Pyles:
Yeah, that is no bueno. I know people who, when they started freelancing, had no idea that they were supposed to be paying taxes all year long quarterly instead of saving up for a big payment at the end of the year. The IRS does not look kindly on that, even if it ends up that you overpaid. And by people here, I am absolutely referring to myself because I once found myself in a world of tax hurt back when I was a contractor, and that is a lesson I shall not soon forget.
Elizabeth Ayoola:
It’s good to know I’m not alone, Sean, because I’ve been there too and it wasn’t fine.
Sean Pyles:
Elizabeth Ayoola:
It hurts. It’s a heartbreak.
Sean Pyles:
All right, well, we want to hear what you think too, listeners. To share your ideas and questions around self-employment with us, leave us a voicemail or text the Nerd Hotline at 901-730-6373. That’s 901-730-NERD. Or email a voice memo to [email protected].
So Elizabeth, who are we hearing from today?
Elizabeth Ayoola:
Today we’re going to be chatting with Krystal Todd. She happens to be a certified public accountant, a financial strategist, a money mentor and an entrepreneur. Her resume puts her in a good position to give us the juicy details we need on self-employed taxes.
Sean Pyles:
That’s coming up in a moment. Stay with us.
Elizabeth Ayoola:
Hi Krystal. Thank you for coming onto the podcast.
Krystal Todd:
Yes, thank you so much for having me. Really excited to talk taxes. This is my bread and butter. I love talking about anything money, really.
Elizabeth Ayoola:
No, I’m with you. I’m not going to lie, I do not love taxes, but I do love to understand taxes because I don’t want to pay the IRS more than I have to pay them.
Krystal Todd:
Oh, no. That’s why I’m here.
Elizabeth Ayoola:
Another tax year is upon us, and I think this information is going to be super helpful. So with that said, I’m going to jump straight into the first question I have for you, which is how do self-employed taxes work? And I know this is a big question, but I know I learned the hard way about self-employed taxes and I learned that they’re higher than what you pay when you’re working a traditional job with an employer.
So I want you to tell us why self-employed taxes are higher, especially when the government seems to provide so many incentives for small business owners.
Krystal Todd:
So it’s a double whammy because not only is it higher because we’re paying both sides of the employer tax, but we also have to pay it ourselves. So if you’re coming from a W-2 world into self-employment world, normally in W-2 world, it’s all handled for you. The biggest difference is that you’re having to have full control over paying your taxes, paying quarterly, whereas a W-2, you’re paying every paycheck. It doesn’t feel like that, but that’s what’s going on. And then the self-employment tax. So typically with your W-2 employee, you’ll pay half that piece and then your employer pays half of it, but because you’re self-employed, you are the employee and the employer, so you’re paying 15% in taxes.
Elizabeth Ayoola:
That 15%, I remember the first time I saw it and whipped out my calculator and I was like, “Wait, what? This was a chunk of money.” So I was a little unpleasantly shocked by that number.
Krystal Todd:
Yeah, there is a way to get around it.
Elizabeth Ayoola:
Tell me, tell me.
Krystal Todd:
If you’re just starting out, maybe it wouldn’t be most beneficial. It does depend, and of course you have to always throw a disclaimer out there. Everyone’s situation is different. I’m a CPA, but not your personal CPA, so take everything I’m saying as little seeds of wisdom to go research.
When you’re first starting out, maybe you don’t have your EIN, which is just basically your social security for your business, employee identification number. So it’s like your social security number but for your business, because businesses are their own entity. But when you’re first starting out, maybe you’re not doing all of that. So if you’re in the sole proprietor category, which means you’re just working for yourself, you hired yourself, maybe the next level up is LLC, limited liability company. So you’ve gone ahead and filed for that LLC so you have some protection, but you’re still going to be paying a lot of taxes.
It’s not until you get into the S Corp. And of course there’s a couple of qualifications there, but once you get into S Corp, you can actually pay yourself as a W-2 employee in your business. And then that’s how you circumvent that self-employed tax because even though it’s your business, you’re an employee of the business so it looks like a W-2. And the benefit of that too is especially if you’re self-employed, and I know some people have felt me on this, if you’re trying to get a loan for a car, once they see you’re self-employed, guns are blazing, right? They’re ready to ask you all types of questions. You have to provide so much information. As an S Corp, if you’re paying yourself, you’re going to receive a W-2 from your business so they don’t have to know it’s your business. They just see W-2 and no questions asked. There are some benefits to having an S Corp for sure.
Elizabeth Ayoola:
By the way, for everyone listening, we’re going to go a lot deeper into the different business structures in a subsequent episode, so don’t worry. We’re going to touch on that some more.
So now back to taxes. I know estimated taxes are something that I now do. Didn’t do before, but I remember when I was first researching self-employment taxes, that came up a lot. But I thought, “Hey, I can just pay it in one lump sum,” and I didn’t really dig deeper to read all of the fine details. Can you explain to us what estimated taxes are and how exactly it worked?
Krystal Todd:
Of course. So as I mentioned previously, as a W-2 employee, you’re paying taxes every single pay period. So you don’t necessarily have to worry about that, but as a self-employed individual, you’re not paying any taxes. So what the government has said is, “You’re not off the hook.” You’re not going to pay just one time at the end of the year. We need quarterly payments just of you estimating how much you think you’ll be paying in taxes, and then at the end of the year when you actually file your taxes, they’ll make adjustments based on whatever credits and deductions you’re eligible for, what you’ve already paid, and then you’ll see what you net.
So it’s crucial to pay quarterly taxes, and you can use things out there that help you track your expenses and your income and can even help you calculate that too, so you don’t have to necessarily do it all on your own.
Elizabeth Ayoola:
Absolutely. So tell us, when are the self-employed taxes due and what happens if you don’t pay them?
Krystal Todd:
Yes, they’re quarterly. If you don’t pay them quarterly or they realize that you haven’t paid enough, you will get fined. You don’t have to end up in jail if it was a legitimate accident, so you’ll be fine, but you will get penalized and it can be a little costly. So definitely make sure that you are just getting that done ahead of time. It’s a fresh new year, so new opportunities to make sure we’re staying on target.
Elizabeth Ayoola:
Yes. And for those who maybe are listening and unfortunately missed out on paying quarterly taxes and maybe in April are going to end up being hit with a bill, are there any options in terms of how they can pay it if they don’t have that lump sum cash?
Krystal Todd:
It depends on your situation. Sometimes the IRS will say, “No, you need to make this payment,” and sometimes they’ll work with you depending on the amount. So it does depend on your circumstances.
Elizabeth Ayoola:
What was this I heard about that you can sometimes do a payment plan with the IRS. So is this true?
Krystal Todd:
Yeah, no, it’s true. It’s true. I think it just depends on, like I said, your circumstances. Maybe there’s situations where if you had issues before, they’re a little bit more strict on you, but you can make payments.
Elizabeth Ayoola:
So now we want to get into the mistakes so other people can learn from those mistakes. So what are some common mistakes that you see clients make when it comes to paying their self-employed taxes? So for me, for example, I just wasn’t good at bookkeeping initially. I had my money in too many different accounts, so it was overwhelming when tax season came around to see what my deductions were and just basically my income. So as a CPA, tell us maybe two or three common mistakes you see people make.
Krystal Todd:
The common mistake by far is not making sure that they’re taking all the deductions and credits that they’re actually eligible for. So ultimately, a lot of people will think about taxes as a January through April situation, but it’s a year-round thing. Tax planning is almost more important than actually tax preparation. You want to think about the whole year and ways you can save money, different things you could probably invest in to bring your taxes down. So missing out on tax planning and then trying to just rush everything towards the end of the year is by far the biggest mistake. I’ll see people scrambling for receipts, looking back, and a lot of times if you’re just starting out, typically maybe they won’t have a separate business account as well.
Depreciation is the biggest one that I think people miss out on, not only for things like Airbnb in your home, but also your car. If you’re doing Uber or Lyft, you can get credit for the wear and tear on your car. If you have a computer or any devices that you have, those things are also depreciable or you can actually fully deduct them in certain cases. I definitely think that you should be empowered and doing it yourself, but if your taxes are getting complicated, you’d want to make sure that you’re leaning on a tax professional who will catch those expenses because a lot of people are paying too much.
Elizabeth Ayoola:
Thanks for sharing all of those incredible ways that people can reduce their taxes. Can you tell me about some other deductions or ways that people can reduce their self-employed taxes?
Krystal Todd:
Yeah, so a really neat one is making sure you hire your family in any capacity that you can. Now, of course, there’s some caveats here. You have to make sure you’re paying them a reasonable wage. So if they’re just an administrator, you can’t pay them multiple six figures. It has to be reasonable, but to the extent that it’s reasonable, you can actually hire them on. And I especially love this with kids.
So as an example of my own life, I hire my daughter and she’ll help me with my videos, she’ll help me with setup. She helps me with product development, and she’s been featured in a few of my videos online. So I will pay her. She’s a 1099 worker, so it’s not a W-2, so it’s simple. I just have to give her a check, and what I love about that is that I get to reduce my taxes, and this is more like W-2, but either way, we all get a standard deduction.
If I pay my child up to the standard deduction amount, which was just a little over $13,000 for 2023. If I pay her $13,000, I get to reduce my taxable income by that same $13,000. She pays no taxes on it because of the standard deduction, which basically is the IRS giving you some credits for having a kid or just whatever else is happening in life. They say, “Here’s just one flat rate. You just take that.” So she doesn’t pay taxes on that, and then I can put it into a custodial IRA for her and it’ll grow tax-free because it’s Roth. You’re saving money, they’re not paying any taxes, I mean, that’s a really good tax loophole there.
Elizabeth Ayoola:
For sure, for sure. And speaking of which, since we’re on the topic of deductions, I know sometimes people go a little over the top with these deductions, forgetting that the IRS does audit people. I know recently I’ve seen something floating around on social media about being able to buy a Mercedes Benz, also known as G-Wagon, and write it off using your taxes. And the rules for this are really complicated, so make sure to work with the CPA if you’re thinking about doing it. So is this true? And if it is, what is the catch?
Krystal Todd:
There are some caveats. It must be used in business. You can’t just buy a G-Wagon, you never drive in it. If you’re a realtor, for example, that might make sense. You have an image. If you’re a realtor, you’re selling million-dollar homes, you want to look the part. That might make sense. But if you’re a content creator working at home, you never go in the car to do anything, you cannot do that. In the eyes of the IRS that is illegal, so you have to make sure that it’s being used for business use. It doesn’t have to be exclusively, but if it is half business, half personal, you’ll have to adjust your taxes to account for that.
Elizabeth Ayoola:
So sorry to get into the nitty-gritty, but when you say business use, someone might say, “Oh, I have a meeting, I don’t know, once a month, and I’m driving it to my meeting.” A content creator. Does the IRS get into the details of how frequently you’re using the car?
Krystal Todd:
Yes, and the location. So if you’re driving from your home to a meeting, that doesn’t count. It’s only if you’re going from, let’s say, your primary job to your second job. Then that could actually be considered a deductible expense. So yeah, they’re very particular about what you’re using it for, where you’re driving from, and if you get audited, you better be prepared.
Elizabeth Ayoola:
So can you tell us, on that note, some major red flags or even myths that you hear of when it comes to tax deductions?
Krystal Todd:
Yes. I think that people think they could just deduct anything because it’s eligible. The government makes you go through hoops, especially after the Tax Cuts and Jobs Act where the standard deduction was doubled. They’re really trying hard to make you just take the standard deduction and just take that and go.
If you’re saying, “No, I’ve had more than $13,000 worth of expenses,” you might have. That doesn’t mean they’re all going to be eligible. So for example, for health costs that you’ve spent, maybe you spent $10,000 in health expenses for this year, but the government does not give you dollar for dollar, and if you take that, it has to be itemized. So you might do all this work trying to itemize your deductions and you were better off taking the standard deduction because they make you go through a lot of different hoops. There’s percentages, there’s phase-outs if you’re making a certain amount of money. So it’s super, super nuanced, and just circling back to what we talked about earlier as far as DIY goes, if you’re in that situation, unless you’re going to really put the effort into research, you probably are better off just getting someone who already has done this before and they’re comfortable with it because of all those different nuanced requirements that they have.
Elizabeth Ayoola:
So in the spirit of… Well, I don’t want to say in the spirit of getting audited because I don’t think anyone wants to get audited, but just in case, give us some bookkeeping tips. I’m still refining my bookkeeping because it’s just not my strong area, but what are some bookkeeping tips so that if the IRS comes knocking, people are ready?
Krystal Todd:
I strongly suggest getting software. If you have a software, you’re able to attach receipts directly to it. They’ll organize it for you. If you’re not someone who’s too familiar with income statements and cash flows and all of that, they prepare those documents for you. That by far has dramatically changed my business. And also having separate accounts. You can’t even imagine how many people will dig through their personal account looking for business expenses. Even if you’re just starting out, from the decision you’ve made to take this business seriously, please get your EIN so you can open up your business bank account, and that way everything is just flowing through one account. Lean on these different tools that will organize it for you and just be sure to keep receipts.
I would say you should be at least monthly. All these billion-dollar corporations, I mean, they’re doing things very frequently, but every single month we are balancing the books, we are going over our expenses and then we’re tax planning. So many people wait until the end of the year and then it just becomes a hassle. So to the extent that you can, get it done monthly. That is the best advice I have so you’re not stressing yourself out during these times.
Elizabeth Ayoola:
We’re in a very tech-savvy age, so how are digital receipts? So every time maybe you make a purchase or whatever, just keeping a digital file of your stuff.
Krystal Todd:
Yes, absolutely. And let’s say maybe you’re not ready for the software. That’s what I was doing when I first started out and I wasn’t too sure. Just a simple folder in your computer would work. Document everything in the moment as it happens, that way nothing is slipping through the cracks and you should be in good shape.
Elizabeth Ayoola:
So the last question I have, because in this series we’re trying to cover people who also have how they can manage your finances when they have inconsistent income. So for someone who has inconsistent income throughout the year, maybe they don’t make as much during the beginning of the year, but let’s say halfway through the year they land a huge contract.
How do they budget then for self-employed taxes or estimated taxes, rather? Because I know that’s based on how much you think you’re going to make, but you don’t always know. So maybe you’ve been underpaying for the first half of the year and then the end of the year comes. How do you manage that?
Krystal Todd:
I always say be as conservative as possible. It’s kind of like a dual opinion I have here because on one end, you don’t want to give the government an interest-free loan. That’s essentially what you’re doing when you get a tax refund. But on the other end, you also don’t want to deal with owing money, maybe being penalized and then having to pay that next year. So to the extent that you can, I would say be as conservative as possible when it comes to paying your taxes. Again, there’s different software that’ll help you establish what you should be paying. When you get that windfall, you weren’t really expecting it, right? So I like to live off of my most conservative amount of money.
So let’s say maybe it’s $10,000 a month. If I made $20,000 a month, I will ignore that $10,000 and put it to the side just because you’ll have that extra cushion to keep you protected in the event that you have a windfall you don’t expect. That happened to me last year, actually. I had quite the windfall and I wasn’t expecting it, but I had practiced what I preach and I had some money to the side, so it was okay. So whenever you get those large sums of money, pretend like you didn’t. Just live conservatively and then once a year is done, once you calculate your taxes and you pay it, then you can enjoy the rest. So it’s delayed gratification.
Elizabeth Ayoola:
Oh, I like that as a way of looking at it. And one day when I was complaining about my taxes, I remember someone saying, “The brighter side of that is that you made more money.” So we welcome a windfall, we just have to prepare for those windfalls.
Krystal Todd:
This is a little bit more technical, but something that I love because this again happened to me last year. Let’s say seasonality is something that your company is affected by. Maybe you get a big windfall of purchases or something at the end of the year. In certain circumstances, it might be best to ask them to pay you next year, right?
If you are a cash-basis type of accounting, you won’t get taxed unless you actually receive the money. So maybe you did make that revenue, but if you can have it pushed off to the next year because you didn’t expect that windfall and you don’t want to necessarily deal with the influx of the money you have to pay for those taxes, maybe you can have your customers pay you January 1st or January 2nd. That way you’re not going to be affected by that surprise, and that’s 100% legal. You can delay that or you can bring forward some expenses too.
This only works if, again, you are a cash basis, but if you want to pay something off for the whole year, you’ll be able to deduct that even if the whole year hasn’t actually happened yet. So there’s different ways towards the end of the year to try to get some last minute things in just to further insulate yourself.
Elizabeth Ayoola:
Love that. Those are some really, really good tips and a reminder of why it’s good to talk to CPAs. Do you have any final words of wisdom or anything that people might not be thinking about relating to self-employed taxes that you want to share?
Krystal Todd:
Yes. You are the driver. A lot of times people will shy away from it because it is intimidating, but in the age of information that we’re in right now, there is an influx of free information online. This is an example of one of them. Don’t be paralyzed by fear. Really lean into it because the difference between small business, and I really don’t use that word lightly because no matter if you’re small or big, you have to do the same exact stuff. So why even identify with your revenue or the size of your company? But a business is a business, and these larger companies become larger because they are hands-on and they’re very proactive with how they’re managing their money.
So I suggest that you do so too and do not be afraid of delegation. I, in other areas of life, have not delegated, and that is what comes back to haunt you. So you don’t have to do it all on your own. There are free resources, there are paid resources. Definitely make sure you’re just taking advantage of what you can take advantage of and you’re planning so that you can not be surprised with tax bills at the end of the year.
Elizabeth Ayoola:
Yes, absolutely. Echoing what Krystal said, you do not have to do it alone, and that is something that has made taxes a lot less daunting for me. Thank you, thank you, thank you, Krystal. This was so informative. I have learned so many new things that I’m going to apply when it comes time to do my self-employed taxes, so thank you. Thank you for coming.
Krystal Todd:
You’re so welcome. Thank you for having me, and good luck everybody in this tax season.
Sean Pyles:
Elizabeth, I never thought I’d say this, but that was actually a super interesting conversation about taxes. I am someone who was a planner in all aspects of my life, and like Krystal said, planning ahead with your taxes is so key whether you’re finding deductions, hiring your family, or making quarterly tax payments, but also there is a big difference between planning and scheming. I’m so glad that you guys talked about that viral G-Wagon tax hack because I have seen that so many times on TikTok. I have been really worried about people getting themselves into a world of trouble with their taxes.
Elizabeth Ayoola:
I’m telling you, on the journey of self-employment, I have realized that there are some things that are not too good to be true, but other things are too good to be true, and I think that’s one of them.
So while taxes can be a snooze fest, I think learning about ways to save and avoid penalties will always grab my attention. I love all the tax saving strategies that Krystal shared, and also the deduction red flags to look out for. I mean, for me, this episode was also a reminder about how important it is to talk to a tax professional who has extensive knowledge, and that’s even if you’re a DIY type person.
I feel more confident about filing my self-employed taxes now because of all the information we just got. But Sean, before we go, I do want to mention one development that we didn’t address with Krystal.
Sean Pyles:
What is that?
Elizabeth Ayoola:
Well, starting this year, there’s a new law called the Corporate Transparency Act. And what that says is that anyone with an official business designation, especially a one or two-person LLC, is going to want to be aware of.
This is an effort to stem money laundering and tax evasion in the small business category, and basically you have to file some extra paperwork with the Treasury Department called a Beneficial Ownership Information Report. If you don’t do that, you could be fined $500 and possibly get up to two years jail time, and don’t nobody want two years jail time.
Sean Pyles:
Elizabeth Ayoola:
Nobody. So definitely talk to your tax accountant and or your business attorney about that.
Sean Pyles:
Yourself included, Elizabeth. I do not want you to go to jail, so please get this done.
Well, thanks for that information. Elizabeth, please tell us what’s coming up in episode three of this series.
Elizabeth Ayoola:
Sean, we are all about getting to retirement here on Smart Money, but saving for it can often be an extra challenge when you are self-employed. We’re going to walk listeners through their options and how to make sure you’re planning for the future, even while you’re going into business for yourself.
Ayesha Selden:
If I can get to 10%, a double-digit percentage of my pay, of my gross pay, my pre-tax pay, I’m in the right ballpark. If you are self-employed, then the onus is on you, of course, to put in everything into your own personal retirement plan.
Elizabeth Ayoola:
For now, that’s all we have for this episode. Do you have a money question of your own? If you do, turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. You can also visit nerdwallet.com/podcast for more information on this particular episode. And remember to follow, rate, and review us wherever you’re getting this podcast.
Sean Pyles:
This episode was produced by Tess Vigeland. I helped with editing, Courtney Neidel helped with fact checking, Sara Brink mixed our audio, and a big thank you to NerdWallet’s editors for all their help.
Elizabeth Ayoola:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes, and it may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
In 2020, there were 43 million renters. With a high demand for apartments and houses and limited supply, it is difficult to secure the exact place you want to rent. In a highly competitive rental market, how do you stand out from other renters and snag the perfect place? Write a rental cover letter.
Yes, you read that right! We suggest including a rental cover letter with your rental application to help your application shine compared to other potential tenants. We’ll explain why you should write a rental cover letter and we’ll even include a sample letter that you can use.
Why write a rental cover letter
Typically, you’d include a cover letter with a job application to summarize your past experiences, highlight your best qualities and advocate for why you deserve the job. Well, the same is true for the housing market. Including a rental cover letter can help you stand out from other applicants and leave a lasting impression with the landlord, especially in cities or neighborhoods where there are fewer rental vacancies.
While it’s not required to include a rental cover letter with your rental application, it’s an extra step you can take to show the landlord that you’re serious about wanting to rent from them and provide additional context about who you are and why you’d be a stellar tenant.
Criteria landlords look for
When landlords are sifting through rental applications, there are a few things they look for to help them decide who they should pick. Landlords look at:
Credit history
Employment history
Rental history
Income
References
Background check
Remember — landlords want to rent apartments or houses to someone who will pay the rent on time, keep the property in tip-top condition and be a polite neighbor. All of these things usually go into the rental application itself, but a rental cover letter is an extra opportunity for you to showcase that you’ll be an ideal tenant.
It’s especially important when renting because you’ll likely have your own yard to maintain and be living next to other renters or homeowners that you’ll want to impress.
Things to include in your rental cover letter
So, what exactly should you include in your rental cover letter? Here are a few things to consider including and how they may help you out in your hunt for the perfect place to rent.
Highlight your employment history
Because landlords want to rent to people who have a steady income and will pay the rent on time each month, providing more information about your employment history can help you out. For example, you could share how many years you’ve worked at the same place which will show that you’re a reliable, steadily-employed person.
Share your hobbies
To show a bit of your personality and humanize your application, you could include your hobbies and share what you like to do on the weekends and in your free time in your rental cover letter. This is appealing to landlords who rent houses and apartments because they’ll care about how you’ll interact with the other people in the neighborhood.
Discuss your philosophy on what makes a good neighbor
Everyone wants to live next to good neighbors. In your sample letter, you could include a story about how you’ve connected with neighbors in the past to showcase that you’re the ideal neighbor.
Explain why you want to live in this home and neighborhood
If this is the perfect home for you, share that in the rental cover letter. Share specific examples of why you chose this apartment or house and neighborhood. Those details will show that you truly care.
All of this is optional, but sharing these details will highlight who you are and help personalize your application. It’s also important to remember that under the Fair Housing Act, landlords cannot discriminate based on race, color, national origin, religion, sex, familial status or disability. You do not need to include any of this information in your rental cover letter.
Sample letter to rent a house or apartment
This sample letter is an easy-to-use template that you can use when drafting your own rental cover letter. Simply fill in the blanks and customize as needed.
Download a PDF of the cover letter template Download a Word Doc of the cover letter template
(Your name) (Address) (City, State ZIP Code)
(Date)
(Landlord or property manager name) (Address) (City, State ZIP Code)
Re: (Your name) Renter Cover Letter for (Address or property name)
Dear (Landlord name),
My name is (Your name) and I’m writing to you because I’m very interested in renting the home that’s available at (Address or property name). I was particularly interested in this place because (Reasons you want to rent there).
I currently am a renter at (Current address) but am eager to move because (Reason for wanting to move).
I’m sure you receive several rental applications each day, so I wanted to take some time to help you get to know me a little better and show you why I’m the best applicant for this vacancy.
(Highlight of employment history)
(Rental history highlight)
(Something about your hobbies, passions or interests)
(Note about how you’re a good neighbor and tenant)
(Quote from a reference about your character)
Based on these facts listed above, I think you’ll find that I’m a reliable, good neighbor and tenant who will pay my rent on time, keep the apartment in mint condition and communicate easily with you about any and all needs.
Please feel free to reach out to my references or to me personally with any questions or concerns you may have. I’m eager to rent from you and look forward to your decision.
Finding and securing a place to rent is difficult, so you want all the tips and tricks you can get. By writing a rental cover letter, you’ll be one step ahead of other potential renters and will be one step closer to moving into your new home.
Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.
Simplify lead generation and start closing more deals! Dan Gomer joins us on today’s Real Estate Rockstars to share how he went from struggling newbie to award-winning agent via simplification. Dan covers the simple sphere-marketing tactics that worked for him and explains exactly how to replicate his success. Shelby and Dan also discuss daily schedule, motivation, and having faith in the real estate processes that others have already proven to be effective.
Listen to today’s show and learn:
About Dan Gomer and his start in real estate [1:41]
The challenges of building a new real estate business [3:26]
What it took to finally achieve financial success [6:51]
Focusing on everything and accomplishing nothing [9:59]
Why Dan loves generating leads via networking [15:19]
Building relationships to build your business [17:43]
How to win over new real estate prospects [19:37]
To CRM, or not to CRM, that is the question [21:22]
Why you shouldn’t be a secret real estate agent [23:07]
How to stay in flow with your sphere [26:42]
Two simple ways to win deals from your SOI [27:57]
Identifying your “tokens” [31:03]
Tips and tricks for calling your sphere [32:55]
Dan’s daily schedule [40:03]
The people who support Dan’s business: his real estate team [42:23]
Simplifying strategies for more success [44:47]
What motivation really means and finding your why [47:50]
Where to find and follow Dan Gomer [50:46]
Dan Gomer
Dan Gomer is an educator, coach, and serial entrepreneur whose mission is to help people discover their own unique definition of success. Having spent many years merging a note-worthy career in education, with a success real estate business, Dan has a rare ability to help others shift their perspectives, align their profession with their purpose, and attain the fulfillment that comes with a purpose-driven lifestyle. His mantra is simple: He helps people clarify what they truly want, so that they can live in the serenity of their highest vision, for their lives.
Avoiding the mundane, Dan Gomer combines his tenacity for life, with a passion for education, achievement, and community involvement. His intrinsic leadership has been proven boundless. Currently, he is a co-leader of the Super Agents Collaborative and a team leader for Dan’s Home Team both based in Denver, Colorado with agents in multiple states. He has a goal of growing his real estate team to over 500 agents so he can continue to teach others how to be successful both personally and professionally.
Related Links and Resources:
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
There are many changes you can make to reduce the environmental impact your home and your daily life has on the planet. Even simple adjustments like using green cleaning products, finding ways to reuse your kitchen scraps, or locking your windows shut, can lead to less waste and energy savings. Whether you just bought a house in Miami, Los Angeles, or anywhere in between, here are some great ways to save energy, reduce your carbon footprint, and save money all from the comfort of your own home.
Reconsider your grocery shopping habits
To reduce waste and save energy at home, adopt eco-friendly grocery shopping habits.
“Subscribing to a milk delivery service with reusable glass bottles, reusing bags at a bulk grocery store, and selecting glass or metal packaging can make a tremendous difference in reducing our consumption of plastics,” says Lyons, CO-based BrightHeart Decor.
These simple adjustments in your grocery shopping routine can make a significant difference in promoting sustainability at home.
Save energy with LED lighting
In addition to upgrading the look of your home’s interior, changing up the lighting can make your home more efficient. LED bulbs are much more energy-efficient than other alternatives, and incorporating them throughout your home is an easy way to conserve energy.
“The easiest DIY way to save energy is to install LED lighting and click the thermostat one to two degrees up or down,” according to Edge Energy “Another way to conserve energy is to get an energy audit and do basic installations of any cost-effective retrofits.”
Reduce your household’s consumption of water
A common area of waste in many households is water usage. The average US household consumes over 300 gallons of water per day, and much of this is unnecessary. If you’re looking for ways to save water, simply being mindful of when the water is running unnecessarily can go a long way.
“Try cutting down on your daily water usage at home by saving six liters of water a minute by turning off your tap while you brush your teeth,” suggests Bamboodu, an online store that specializes in eco-friendly products. “Use natural biodegradable cleaning products that don’t contain chemicals, and install taps and showers with automatic shut-off.”
Use smart home technology to save energy and avoid expensive repairs
We all know that technology has made our lives easier, but it can also save money by reducing energy waste. Sensors on home appliances can not only prevent food and energy waste, but also alert homeowners to potential issues that could prove costly if missed.
“Smart homes enable homeowners to save energy and money by automatically regulating lights and thermostats using geofencing and motion sensor technology,” says Agile Home Automation. “Leak detectors can notify homeowners of problems before they become costly repair situations. Freezer and refrigerator sensors can notify homeowners if a door is not closed properly, or if the unit is beginning to fail before the food is ruined.”
“Using automation for lighting, temperature control, and window coverings is the most cost-effective way to reduce waste, and manage and save energy use in your home,” adds Brad Smith, president of Audio Video Design. “Today’s products sync with circadian rhythms and the astronomical clock for personal and precise customization.”
Be friendly to the environment (and your pocket) by going solar
With recent improvements in solar technology, saving money on electricity with solar panels is easier than it’s ever been. Take advantage of clean energy and save yourself some money in the process.
“Homeowners can install solar on their roof or property and pay no more than they were paying for electricity before, and hedge against rising electric costs while making the planet a cleaner place to live,” says Madison, NJ -based Green House Solar. “Not only will solar save energy, but it will also increase the resale value of your home.”
“Homeowners can save energy and get a greater return on investment by pairing their solar system with a smart home system,” adds Freedom Forever, a Temecula, CA-based company that combines solar and smart technology. “These systems enable homeowners to schedule when appliances consume electricity, allowing you to use more of your solar power and send less to the grid.
Find ways to save and reuse your produce
A great way to prevent food waste is by getting the most out of your produce scraps. Get more out of your veggies by using the scraps for a homemade vegetable broth.
“To make the most of your produce, save your vegetable scraps,” says blogger Nutti Nelli. “Once you fill up a half-gallon of scraps, bring five cups of water to a boil and add your veggie scraps, one teaspoon of salt, and one teaspoon of black pepper, and simmer for one hour. Drain the scraps, and now you have four cups of vegetable broth to use for cooking, soups, curries, or stews.”
Think twice about the cleaning products you’re using
When it comes to eco-friendly cleaning products, the first thing that probably comes to mind is biodegradable products. While these are great, you can go a step further by eliminating plastic packaging entirely.
“Save space and eliminate plastic from your cleaning routine when you use USDA certified biobased products,” says Beyond Clean Products, a company that specializes in eco-friendly cleaning products. “Consider incorporating detergent sheets and auto dish tabs that are 100 percent plastic-free.”
Keep windows locked to avoid any air leaks
Whether you’re running the AC during the summer or heating your home in the chilly winter months, the last thing you want is to run up your bill because of air leaks. Locking your windows not only secures your home, but also the air inside it.
“Keep your windows locked to save energy in your home, says Home Energy Saving Solutions. “The lock is not only for security, but it also keeps the window close-packed and creates a seal along the weather-stripping of the window. An unlocked window is an open window.”
Recycle your leftover household paint
If you’ve got leftover paint lying around after a recent home project, you may be wondering how exactly you’re supposed to get rid of it. Product Care Recycling cautions against simply throwing old paint in the trash.
“A fresh coat of paint can give your home new life,” they say. “However, leftover paint, like other hazardous household products, does not belong in the trash. It should be recycled to avoid contaminating our soil and water sources and to divert landfill waste.”
Enrich your soil and decrease landfill waste
Whether you already have a home garden or just want to help the environment, composting is a great way to get the most out of your food waste. The planet will appreciate it and so will your plants.
“Composting is one of the most impactful actions you can take to both reduce household waste heading to landfills and create an ultra-nourishing natural resource that your garden will love,” says Sustainable Jungle, a website that shares sustainability tips and tricks. “Some cities even offer discounts on composters to help encourage this community supporting activity.”
Use dimmable indoor lighting
Home lighting is another area where energy waste can take place. Since most light bulbs operate at full capacity when turned on, you may end up using more energy than you need to keep your home lit, especially during the day. Dimmable lights give your home a more natural glow, saving energy in the process.
“One of the most effective ways to reduce your electricity bill is to install a lighting control system or smart lighting,” says TSP Smart Spaces. “We’re all used to running our lights at 100 percent, but the reality is that not only do we not need to use 100 percent of the energy of a bulb all the time. Dimmable LEDs create a much more enjoyable living experience, and natural lighting that costs 20 to 50 percent less to run compared to regular switches.”
Inside: Do you find it difficult to stick to a budget, despite trying your best? If so, you’re not alone. Budgeting can be a tricky task, but by understanding flexible vs variable expenses, you will better manage your money.
Creating a budget is a fundamental step in shaping your financial well-being, and understanding how your expenses fit within this budget is essential.
These are expenses that can be easily modified or eliminated when monetary constraints arise, thus playing a significant role in stabilizing your financial health.
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 is a flexible expense?
A flexible expense is a budget item you can adjust or modify as per your financial situation. This wiggle room inherent in such costs is not vital for survival, unlike the rigidity of fixed costs such as rent or health insurance.
You can manage these flexible expenses depending on your financial goals or constraints, making them an important part of budget planning.
Fixed Expenses
Variable Expenses
Flexible Expenses
A fixed expense is a cost that remains constant and is paid at regular intervals, such as mortgage payments, car insurance, or cell phone bills, making it predictable and crucial for budgeting purposes.
A variable expense is a cost that changes over time, fluctuating based on individual decisions and circumstances, encompassing both essential spending like groceries and discretionary purchases like movie tickets.
A flexible expense is a non-essential cost in your budget that you can adjust, reduce, or eliminate to save money, encompassing diverse categories like vacation spending, beauty treatments, electronics, dining out, and entertainment services.
What is an example of a flexible expense?
There are countless opportunities for flexible spending, some of which we might not even realize. Common examples include:
Vacations: A sunny beach holiday might be highly appealing, but not always financially feasible. There are alternative, less expensive options such as a staycation.
Beauty treatments: Items like haircuts, manicures, and massages fall into this category.
Electronics: The urge to upgrade to the latest smartphone or tablet model is understandable, but if your current device works fine, that’s an expense you can postpone.
Food and dining: While we all need to eat, the amount spent on eating out, or grabbing a latte on the go can be adjusted.
Entertainment: Expenses here include streaming services, cable television, concerts, or movie outings. There are plenty of free things to do that don’t cost money.
Remember, the trick lies in distinguishing between what you need and what you want.
Distinguishing fixed expenses from flexible expenses
The main difference between fixed and flexible expenses lies in their ability to change.
Fixed expenses, like your rent, or more specific elements such as a lease payment, represent costs that you’re obligated to cover regularly. They’re usually consistent in amount and include items such as utilities, phone bills, insurance premiums, and car payments. Handling these sensibly is crucial as postponing or canceling these could lead to severe consequences.
On the flip side, flexible expenses vary and can be adjusted or cut out entirely depending on your financial situation. These can range from dining out and entertainment costs to clothing purchases and vacation expenses. By taking control of your flexible expenses, you can ensure financial stability, even when incomes fluctuate.
Flexible Expense List Questions to Ask
Are you incurring this expense out of necessity or is it more of a luxury or desire?
Do I have control over the total amount spent on this expense or is it a constant obligatory payment?
Can this expense be eliminated or reduced without drastically affecting your lifestyle or basic needs?
Does this expense vary from month to month or can it be controlled based on your financial situation?
If you were to face financial constraints, could this expense be readily cut back or postponed?
If you answered yes to these questions, then you have a flexible expense.
To further guide your financial decisions, sign up for our informative newsletter.
Which budgeting method works best for flexible expenses?
Choosing the best budgeting method varies greatly depending on your financial habits, goals, and discipline.
Regardless of the budgeting method you choose, remember that flexible expenses are the last thing that you prioritize in your budget.
Option #1 – Envelope System
The “Cash Envelope System” works well for many, where you allocate a specific amount of money for each flexible expense category in separate envelopes. You only spend what’s set aside in each envelope, assisting in keeping variable and flexible costs in check.
The envelope system allows you to save in advance for flexible expenses you want like a vacation or new car or even new clothing.
Option #2 – Pay Yourself First
Alternatively, the “Pay Yourself First” budget prioritizes savings. Something we like to do around here at Money Bliss.
Right after receiving your paycheck, you immediately transfer a designated amount into your savings or investments. The remaining money is then divided among your fixed, variable, and flexible costs.
Option #3 – Zero Based Budget
Lastly, the “Zero-Based Budget” is a method where every dollar you earn is allocated to a particular expense category, leaving you with a zero balance at the end of the month.
This 3 layer system starts with your fixed expenses, then moves to variable expenses. If you have money left over, then you can work on including those fun money flexible items or a deposit into savings account.
In essence, the best budgeting technique is one that fits your needs and aids in achieving your financial goals.
YNAB
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Pros:
Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.
Start 34 Day Free Trial
YNAB vs Mint
How do you budget for flexible expenses?
Budgeting flexible expenses may seem daunting initially, but with a systematic approach, it becomes manageable.
Here are the steps to follow:
Calculate Your Income: Identify your total monthly income after taxes, this is your starting point.
Identify Your Monthly Expenses: Take your bank and credit card statements; evaluate your spending habits to identify your expenses. Start with your fixed expenses as those are priority. Then move to variable and flexible expenses as your budget allows.
Set a Budget: Employ the 50/30/20 rule (or any other method that works best for you) to divide your income between essentials, flexible expenses, and savings.
Track Spending: Regularly monitor your spending against the budget set.
Adjust and Control: After monitoring, make necessary adjustments to control your expenditures.
Consistency: Continually follow these steps for a few months, change gets easier over time, and so will managing flexible costs.
Budgeting, especially flexible budgeting, allows for financial adaptability, enabling companies to seize unexpected opportunities or navigate emergencies without severe monetary strain.
How tracking your spending can help
Learning to recognize your overspending by diligently tracking can offer an enlightening picture of your financial habits. It aids in understanding where your money is being utilized and exposes any neglected ‘financial leaks’. A no spend challenge can help you pinpoint these issues.
Planning and then tracking your spending is crucial in forming an effective budgeting strategy. This is where a calendar can come in handy.
Tracking can be achieved manually via saving receipts, noting down amounts, or through digital means such as online budgeting tools or apps like YNAB or Tiller Money. With regular tracking, you can regulate your spending. Thus, ensuring you stick to your set budget, and make informed future financial decisions.
Tiller Money
Your financial life in a spreadsheet, automatically updated each day.
Tiller is the fastest, easiest way to manage your money with the unlimited flexibility of a spreadsheet.
Update your finances in one place, so you can take control of spending, optimize cash flow, and confidently plan your financial future.
Pros:
Tiller automatically updates Google Sheets and Microsoft Excel with your latest spending, balances, and transactions each day.
No more tedious data entry, CSV files, or logging into multiple accounts.
You can customize everything and finally track your money, your way.
Try Tiller Free
Tips and tricks for handling flexible expenses in your budget
Optimizing your budget while dealing with flexible expenses need not be a daunting task. Here are some tips to help:
Prioritize Savings: Always try to prioritize savings. One of our money saving challenges can help you.
Use Sinking Funds: This is money set aside to be used at a future time for a specific purchase.
Control Impulsive Spending: Limit frequent shopping trips, reduce eating out, and avoid buying unnecessary gadgets.
Substitute Luxuries with Alternatives: Option for budget-friendly alternatives like watching movies at home instead of the cinema, or cooking at home instead of dining out.
Utilize Budgeting Tools: Make use of budgeting apps or financial management tools that can track spending and help maintain your flexible expenses.
Practice Mindful Spending: Stay aware of your financial goals and make purchasing decisions that align with those goals.
Utilize Discounts: Seek opportunities for discounts that can contribute to these savings. For instance, some car insurance companies provide a discount for annual payments rather than monthly.
Remember, the goal isn’t to eliminate flexible spending entirely. But to strike a healthy balance that aligns with your long-term financial health.
Quicken
Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.
I have used this platform for over 20 years now.
Pros:
Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.
Cons:
Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.
Save 40% on New Memberships
Our Review
FAQ
By tracking and managing these expenses, you can have more control and insight into your finances as this is where most unmindful spending happens.
It enables you to understand better where your money goes each month and helps avoid unnecessary spending. When you curtail these expenses, you free up money that can be used to pay off debts, save for future goals, or invest.
Therefore, skillful handling of flexible expenses allows you to maintain a well-rounded and healthy financial state.
Rent generally falls under the category of fixed expenses rather than flexible ones as it is typically a set amount due regularly.
Ready to Solidify Your Budget with these Examples of Flexible Expenses
Conclusively, budgeting with flexible expenses is an essential skill for effective financial management and becoming financially stable.
The key lies in balancing your needs and wants, recognizing and eliminating unnecessary spending while prioritizing necessities. Making use of budgeting tools, like the 50/30/20 rule, can also be advantageous and strategic.
Remember, it’s crucial to be aware not only of your income but also of where your money is spent, as gaining control over your flexible expenses can help avoid financial strain and achieve your financial goals. Always strive to adapt your spending habits to best fit your financial situation.
Now, learn how to handle unplanned expenses.
Know someone else that needs this, too? Then, please share!!
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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.
The Essentials is a weekly series interviewing notable people in and around Columbia about some of their favorite things
After several years selling and refurbishing antiques on Instagram, Ansley Whiteside has found a brick-and-mortar location for Turner and Moss, her shop that features homewares and art on Saluda Avenue in Five Points.
The shop is filled to the brim with goodies; tons of candles and votives and glassware line the walls and antique furniture dominates the corners of the tiny shop, but the effect isn’t overwhelming. It’s like stepping into a well-loved home with a touch of whimsy, and that’s exactly what Whiteside wants people to feel.
“I really wanted to figure out a way to incorporate everything that I love,” Whiteside said. “Not just the antiques and vintage but also the small makers, the artists, people that I personally have had in my home or follow… just things that I loved.”
The shop is a haven for homemakers and entertainers looking for unique plateware or a fun set of glassware — both items Whiteside said are essential in entertaining guests at one’s home.
Whiteside gave Free Times tips and tricks to entertaining, a pastime she heartily enjoys:
It’s about the details
I want everybody to feel like they’re just having a good time and they look at their watch and they’re like, ‘Oh my God, I’ve gotta go.’ I want all the little details covered and I just want them to just enjoy, kick back, relax. So, setting up a bar, things like that. It’s all those little details.
Light some candles
I always just like to have candles lit around the house. I think it’s important. It’s cozy. It smells nice. … Even in the daytime. I do it because it’s smells good, and I’m not as big of a baker. I wish I was, but I feel like (lighting a candle) is my equivalent to baking cookies to sell a house.
Drinks at the ready
I love everybody to have a drink when you walk in. So we have some really cool vintage champagne buckets for setting up the bar. We’ve got an assortment of these. These are something I’ll always collect because I love that they make something fancy, casual. It makes it seem more approachable and chill. Which I think is great. Oh, and cocktail napkins.
I like a batch cocktail. Southern Living does a great — I forget the exact one I have it written in my recipe box — bourbon punch. But it’s just awesome. And it’s easy to do ahead of time. And I like gin, so a gimlet is really easy to reproduce in a batch. So I do that, and then I also love anything with Prosecco.
Mix it up
Always have glassware, an assortment of glassware. I’m all about the mix. I like to mix modern glassware with antique glassware, but if I find like a full set that’s not chipped, it’s coming to the shop.
And then china. I’m all about china; I love china. Mixing and matching the china is great, it’s all about layers. And I’m always looking for fun pieces.
When setting a table, you can totally mix and match, which is also the fun of it.
Make an effort so guests don’t have to
(Setting the table) makes people feel like you took the time to make it special. And I’m all about like making it easy. To give those details and give that feeling — with the brass candlesticks, it’s an easy way to elevate your tablescape real, real quick. (And actually light the candles.)
Collecting and trading Pokémon cards has been a popular hobby since the 1990s for both children and adults. In fact, as a kid, I was obsessed with Pokémon cards. I enjoyed opening new packs, collecting cards, and trading with my friends. And, I know I’m not alone. So many people have enjoyed Pokémon cards over…
Collecting and trading Pokémon cards has been a popular hobby since the 1990s for both children and adults.
In fact, as a kid, I was obsessed with Pokémon cards. I enjoyed opening new packs, collecting cards, and trading with my friends. And, I know I’m not alone. So many people have enjoyed Pokémon cards over the years as well.
As the value of certain cards continues to rise, finding the best places to sell your collection of Pokémon cards is more important than ever.
Whether you’re looking to make some extra cash, simply downsize your Pokémon card collection, or if you are decluttering everything you own and find a long lost box of childhood mementos, knowing where and how to sell your Pokémon cards can be important to make the most money.
In this article, I’ll discuss some of the best places to sell Pokémon cards online and locally and provide tips on how to price and present your cards in the best way.
Quick Summary
Identify and evaluate the value of your Pokémon cards before selling. Some cards are worth way more than others. For example, one card may be worth $0.10, and another may be worth over $100,000.
Look at your different selling options to see how you can get the most money.
Learn effective selling tips and strategies for presenting your cards to potential buyers.
How To Sell Pokemon Cards
Selling your Pokémon cards can be an exciting and profitable way to make money, especially if you have rare, holographic, or near-mint-condition cards in your collection.
To help you make the most profit, follow these tips to find the best places to sell your Pokémon cards. Before starting your Pokémon cards selling journey, it’s important to know your cards’ condition, rarity, and type.
Related: How I Made $40,000 In One Year Selling Items
Near-mint cards with no creases, scuffs, or whitening edges tend to have a higher value. Also, rare and holographic cards, like the famous Charizard, are highly wanted by fans, collectors, and trading card game enthusiasts, making them valuable in the Pokémon card market.
To figure out how rare your Pokémon card is, look for the symbols in the bottom right corner of your card and if you have a lot of cards, then you should become familiar with the Pokémon card rarity indicators, as well as the different sets and booster packs in which your cards were released.
For more accurate valuations, you may even look for professional grading services, such as Professional Sports Authenticator (PSA). They evaluate and grade cards based on their condition, ensuring buyers of their authenticity and quality.
If you’re selling Pokémon cards online, make sure to take clear, high-quality pictures that showcase your cards’ condition, as this will give potential buyers a better idea of what they’re purchasing.
By following these tips and tricks, you’ll be prepared to sell your Pokémon cards and get the most amount of money.
Best Places To Sell Pokemon Cards Online
There are many ways to sell Pokémon cards online. Here are some Pokémon selling sites to start with:
1. eBay
eBay is one of the most popular marketplaces for selling Pokémon cards due to its large reach of customers around the world.
I did a quick search on eBay and there are currently over 160,000 Pokémon cards for sale – so they definitely have a huge market!
You can choose to sell your cards through auctions or fixed price listings. When selling on eBay, be mindful of the seller fees and PayPal fees that will be deducted from your earnings. Shipping will also be another cost.
eBay is especially good for selling valuable cards, such as holographic cards or rare Charizard cards. To reach a wider audience and increase the chances of a successful sale, make sure you write detailed descriptions and add high-quality photos of your cards so that people are more likely to click on your listing.
2. Troll and Toad
Troll and Toad is an online store that specializes in collectible card games, such as selling Pokémon cards and they have been around for over 25 years.
They offer a buy list where you can sell your cards for cash or store credit. To sell on Troll and Toad, simply use their search bar to find the cards you want to sell, add them to your cart, checkout, and then ship your cards to them.
This is a great feature of Troll and Toad – the fact that you can see the exact cards they will accept and the exact amount that they will pay you for each Pokémon card. As you will learn below, many of the Pokémon card selling websites have this same feature, which is so helpful!
After you complete the list of cards that you plan on selling to them, you will print out an invoice that they give you, and then choose a payment method. Then, you will ship your box of Pokémon cards to them. Once they receive the package, they will verify the cards that you have sent to make sure they are in the correct condition as you stated. After that, they will pay you.
Troll and Toad also accepts Pokémon cards in bulk.
Keep in mind that they may be selective about the cards they accept, so it’s important to research and determine the value of your cards beforehand.
3. Mercari
Mercari is a site where you can quickly set up an account and start selling your used items, such as Pokémon cards. This site is not dedicated to just Pokémon cards, but they do have many listed and it is an easy option for Pokémon collectors.
There are well over 1,000 Pokémon cards listed on Mercari.
It’s important to create persuasive listings with photos and a relevant, detailed description, and include relevant keywords related to Pokémon cards. (Remember, they don’t just sell Pokémon cards, they also sell clothes and other items, so keywords are important!). Also, Mercari takes a minimum 10% fee from each sale you make on their platform.
4. TCGplayer
TCGplayer is a popular site with card game collectors in the U.S. and Europe.
People love selling on this site because they say it’s easy to use and they have great customer service.
To sell Pokémon cards on TCGplayer, simply list your cards on the TCGplayer marketplace, set your prices, and wait for potential buyers to purchase them. The marketplace handles the transactions, making the selling process easy.
Note: You will have to pay a commission fee of around 12–13% for each sale you make on TCGplayer, and you might also have shipping costs.
Here’s a quick guide on how to sell Pokémon cards on TCGplayer:
Create a seller account – You will need an account to get started selling Pokémon cards.
Set up your inventory – Once your seller account is created, you can start listing your Pokémon cards for sale. Enter details like the card’s name, set, condition, and quantity available.
Pricing your cards – Decide on the prices for your Pokémon cards. You can either manually set the prices or use TCGplayer’s automated pricing tool to match the market rates. TCGplayer has a pricing algorithm to help sellers be competitive and adjust prices based on the market demand.
Shipping options – Decide on the shipping options you will have for buyers.
Receiving payments – TCGplayer usually collects payments from buyers, processes the orders, and then deposits the money into your seller account. From there, you can withdraw your funds.
Maintain your inventory – Keep your inventory up to date. Remove sold items and add new ones to reflect the current availability of your Pokémon cards.
5. Card Cavern
Card Cavern is an online store that specializes in buying and selling Pokémon cards.
They have a straightforward buylist system where you can quickly find the cards they’re interested in and the prices they’re willing to pay.
Then, you ship your cards to them (they recommend purchasing tracking and insurance).
If you choose to sell your cards to Card Cavern, you’ll receive payment through PayPal or receive store credit, depending on your preference.
Their buy rates only apply to near-mint, English, tournament legal cards. You can send as many or as little Pokémon cards as you want to Card Cavern.
6. Dave & Adam’s
Dave & Adam’s is an online store for trading cards, including Pokémon cards, and it has been around for over 30 years.
They offer a buy list where you can see which cards they’re currently interested in purchasing. If your cards match their buy list, you can submit a sell request, ship your cards to them, and receive payment via check, PayPal, or store credit.
If you have a big collection, they will even travel to you.
7. Pokémon Facebook Groups
Pokémon Facebook Groups are communities of Pokémon card collectors and enthusiasts who use the platform to buy, sell, and trade cards. Pokémon Facebook Groups are exactly what you think – Facebook groups for Pokémon card collectors.
This can be a great place to sell your Pokémon cards because these groups are filled with people who are very interested in buying Pokémon cards.
These groups allow you to talk directly with fellow collectors and cater to various interests, such as specific regions, sets, or rarity levels.
To sell your Pokémon cards in these groups, make sure you follow group rules, post clear photos, and respond quickly to potential buyers’ inquiries.
8. CCG Castle
CCG Castle is a website that specializes in games since 2007.
They buy Pokémon cards that you no longer need and have a buy list on their site that will tell you exactly what they are accepting and how much they will pay you for it. They pay in either PayPal cash or store credit.
Best Places To Sell Pokemon Cards Near Me
If you’re looking to sell your collection or particular Pokémon cards, there are several options near you to consider. This section will cover the best local places where you can sell your cards, such as Facebook Marketplace, comic book stores, pawn shops, and Craigslist.
9. Facebook Marketplace
A popular and easy way to sell your Pokémon cards is through Facebook Marketplace. Nearly everyone has a Facebook account, so it can be easy for you to get started, and it allows you to connect with local buyers who might be interested in your cards.
Posting on Facebook Marketplace is simple, and you can include photos, descriptions, and set your price. Also, you can communicate with potential buyers through Facebook Messenger, making it easy to negotiate and set up a meeting location.
There are no listing fees when selling on Facebook Marketplace, which means that you get to keep everything you earn. But, you do have to handle everything yourself.
10. Local comic book stores
Comic book stores, particularly those that specialize in trading cards, card games, and board games, can be a great place to sell your collection.
Many local comic shops are interested in buying Pokémon cards to stock their inventory for other gamers and collectors.
You can visit stores in your local area, ask if they purchase Pokémon cards, and provide the store owner with a list or photos of your cards. They may make an offer on the spot or ask you to come back later. Remember, each comic store is different, so it’s a good idea to try a few stores near you to compare offers and don’t stop at just one.
11. Pawn shops
Another option to consider is pawn shops.
Pawn stores are known for buying various items, including sports cards and collectibles like Pokémon cards. Take your cards to a few pawn shops near you and see if they’re interested in buying your collection.
Keep in mind that pawn shops usually offer lower prices than other options (this is because selling Pokémon cards is not their sole business), but they can be a quick and convenient way to sell more popular cards.
12. Craigslist
Craigslist is a site for buying and selling various items locally – I’m sure you’ve heard of it. You can create a detailed listing for your Pokémon cards, including pictures, descriptions, and asking prices.
Interested buyers in your area can contact you, allowing you to arrange a meetup in a safe and convenient location.
Craigslist is usually a little more difficult to sell Pokémon cards on and that is because this site does not specialize solely in Pokémon cards and is very localized.
Where to Sell Pokemon Cards in Bulk
Selling your Pokémon cards in bulk may be something that you are interested in if you simply don’t have the time to look each one up.
When selling your Pokémon cards in bulk, it’s important to find the right platform. In this section, we’ll focus on three popular options: Full Grip Games, Safari Zone, and Sell2BBNovelties. With their unique offerings and easy-to-sell process, these companies can help you get the most value for your collection if you simply don’t have the time or have too many cards to sort through.
13. Full Grip Games
Full Grip Games is a local game shop in Ohio that buys bulk Pokémon cards online and in person.
At Full Grip Games, they make it easy for you to sell your bulk cards in increments of 100 or 1,000. Also, they accept rares and other card types as well. To make things simpler for you, their website has a bulk buy list that breaks down all the packs and cards they accept along with individual prices.
To get started, follow these easy steps:
Click on the “Buylist Instructions” link on their website.
Choose their full singles buylist or their bulk buylist.
Select the cards in your collection according to the buylist.
Review the pricing and total value of the cards submitted.
Once done, send the cards following their shipping instructions.
Once they receive your bulk cards, it will take them around one week to go through them. For the cards they accept, you can get paid via PayPal, store credit (you will get a 30% bonus if you choose the store credit option), or check via USPS mail.
14. Safari Zone
Safari Zone is another great option to consider for selling your Pokémon cards in bulk. They accept a wide range of cards, but they do need to be in near-mint condition.
Here’s what you should do to sell your cards on Safari Zone:
Create an account on the Safari Zone website.
Review the cards they purchase on their buy list.
Enter the card details.
After submitting the card information, you’ll receive a quote for your collection.
Ship your cards to Safari Zone, and they will process your payment after validating the cards.
Safari Zone only pays via store credit.
15. Sell2BBNovelties
Sell2BBNovelties is a website that has been around since 1999 that specializes in toys and collectibles, such as Pokémon cards.
They have an easy platform to sell your Pokémon cards in bulk and accept various card types, including rares, holographic, and common/uncommon cards.
To sell your Pokémon cards on Sell2BBNovelties, simply:
Go to their website and click on the “Buying Prices” tab.
Select the cards you’re selling according to their buying list.
When you’re ready, submit the form. You’ll receive a confirmation email with the total value of the cards and further instructions.
Ship your cards to Sell2BBNovelties, and they will process your payment upon receiving and verifying your cards.
You can receive payment for the cards they accept in either PayPal cash or store credit.
How to Make a Website to Sell Pokemon Cards
If you have the time and a lot of cards, you may even be interested in starting a website to sell your Pokémon cards.
Creating a website to sell your Pokémon cards is a great idea to reach a wider audience and have lower fees. Of course, there will be more work in this because you will be managing everything yourself.
Choose a platform and create your design – Look for an easy-to-use platform to build your website – my favorite is WordPress. You will want to pick a clean looking design that customers can look at on both computer and phone. Most platforms have a variety of premade themes that you can use. You can also personalize your website by adding your logo, choosing colors that represent your brand, and adding images.
Organize your products – Categorize your Pokémon cards by sets, rarity, or other criteria that make sense for your target audience. Clear product descriptions and high-quality images of each card will help potential buyers too.
Set up payment and shipping – Choose a payment gateway to securely process transactions. Options like PayPal, Stripe, or Square are widely used and reliable. Choose shipping options and rates based on your preferred carriers and shipping destinations.
Create valuable content – In addition to listing your Pokémon cards, consider creating helpful content such as blog posts or videos that add value to your website and attract more readers and buyers. Providing informative content will establish you as an expert in the field and help drive traffic to your site.
Promote your website – Use social media, search engine optimization (SEO), or even paid advertising to increase page views to your website.
Related: How To Start A Website Free Course
Pokemon Card Selling Tips and Strategies
Selling your Pokémon cards can be an exciting way to make extra money, but it’s important to have a little strategy so that you can make the most money and find the most buyers.
Here are some tips for selling your Pokémon cards successfully.
Determine the value of your cards. You should research how rare the card is, the origin, and the condition of your cards, as these factors will affect their worth. Keep an eye out for rare and valuable cards (such as first edition cards and illustrations), as these will attract more interest from collectors. Grading your cards can help with this process – professional grading services can rate the condition of your cards and encapsulate them in a case, increasing their value.
Consider where to sell your cards.There are numerous platforms for selling Pokémon cards online, such as eBay, where you can list your cards as single items or in an auction format. There are also more specialized Pokémon selling websites which are dedicated to trading cards. These sites often have dedicated communities of potential buyers who are very interested in Pokémon cards.
Write clear and accurate descriptions of your cards.You should always be clear and honest about your card’s condition. For example, are there any scratches or bends? Is there a tear or water damage?
Ship your cards carefully.Carefully package your Pokémon cards to protect your cards from damage during transit. You will want to keep your cards waterproof and not use rubber bands (rubber bands can damage the cards). Also, consider offering a tracking number and insurance to your buyer as an additional layer of security. Many of the Pokémon selling sites above have a very exact way they want you to ship the cards to them to prevent any damage, so be sure to see what their rules are.
By following these Pokémon card selling tips and tricks, you can increase the chances of finding the best places to sell your Pokémon cards.
Frequently Asked Questions
Here are answers to common questions about selling Pokémon cards.
How do I know if my Pokemon cards are worth money?
So, how do you know if the Pokémon cards that you have are worth anything? Many people have Pokémon cards, probably stuffed in a box somewhere, or maybe you came across some.
Whatever your reason is, yes, your Pokémon cards may be worth something.
Knowing the value of your Pokémon cards is important before selling, and there are a few key things to think about.
First, look at the rarity symbols on your cards: a circle indicates a common card, a square represents an uncommon card, and a star denotes a rare card. These symbols help you determine the rarity of your cards and their potential worth.
The condition of your cards also plays a big role in their value. Cards in mint condition, meaning they have no visible wear or damage, are worth more than cards with minor imperfections. Holographic cards, especially in mint condition, can be more valuable.
To take it a step further, you could even get your Pokémon cards professionally valued and graded by a reputable company like PSA. Grading involves a professional inspection of your card’s condition, assigning a numerical grade based on factors such as centering, corners, edges, and surface. The higher the graded number, the better the condition and, often, the higher the value.
Keep in mind that while Pokémon cards typically have higher values, other trading card games like Yu-Gi-Oh can also be valuable. Make sure to research the prices of similar cards sold recently, and compare the condition of your cards to decide if they’re worth selling.
How do I sell Pokemon cards for cash?
To sell your Pokémon cards for cash, first organize your cards by set and look for rare ones to see what you have. Once you’ve prepared your collection, follow the selling instructions on your chosen platform.
You can sell your Pokémon cards online, locally near you, and even in bulk.
Where can I find buyers for my Pokemon cards?
You can find buyers for your Pokémon cards on online marketplaces, local card shops, and social media groups. Websites like eBay and TCGplayer are popular places for selling Pokémon cards, as well as community forums and local collector’s events.
What are some reputable websites to sell Pokemon cards?
There are many reputable sites to sell Pokémon cards as we discussed above, such as:
eBay
Troll and Toad
Mercari
TCGplayer
Card Cavern
Dave & Adam’s
Pokémon Facebook Groups
Full Grip Games
Safari Zone
Sell2BBNovelties
Where is the best place to sell Pokemon cards?
The best place to sell your Pokémon cards depends on your preferences. eBay gives you a worldwide market and you are probably already familiar with their platform.
TCGplayer and Troll and Toad specialize in trading card sales and have a lot of Pokémon cards for sale.
Pokémon Facebook Groups are a great way to connect with those interested in Pokémon cards, and there are no listing fees – but you would be dealing with people on your own and handling everything yourself.
Are there any local stores that buy Pokemon cards?
Some local stores, like comic book shops, game stores, and pawn shops, may buy Pokémon cards. You can call local stores to see if they buy cards before bringing your collection in person.
Can you sell Pokemon cards on Etsy?
Etsy is generally geared towards handmade and vintage items, so it’s not an ideal platform for selling Pokémon cards. It’s best to stick with platforms like eBay, TCGplayer, or Troll and Toad for selling trading cards.
I did a search for Pokémon cards on Etsy and it said there were 43,326 results, but I think many of these are for custom art, in that they would be turning a picture of you or your pet into a Pokémon card. So, not the same thing.
Can I sell Pokemon cards on eBay?
Yes, you can sell Pokémon cards on eBay. It is one of the most popular sites for selling Pokémon cards and it gives you control over pricing and listing options.
Can you sell Pokemon cards at GameStop?
GameStop typically does not buy or sell individual Pokémon cards.
Do pawn shops buy Pokemon cards?
Some pawn shops may buy Pokémon cards, especially if they are valuable or rare. Call your local pawn shops or visit them in person to inquire about their interest in buying Pokémon cards. Remember, they do not specialize in Pokémon cards and have a smaller market, so you may not get as much for your Pokémon cards at a pawn store.
What does TCG and CCG mean?
As you’re going through the sites above looking for one of the best places to sell your Pokémon cards, you may come across these two terms. CCG means collectible card game and TCG means trading card game.
How can I determine the value of my Pokemon cards?
Figuring out the value of your Pokémon cards involves considering factors like:
rarity
condition
age
Websites like TCGplayer and Troll and Toad provide price guides and historical sales information to help you estimate the value of your cards.
How do I check the value of my Pokemon cards?
Check the value of your Pokémon cards by researching on websites like TCGplayer, eBay, and Pokémon Price. These platforms can give you a good idea of the current market value for individual cards.
Do you need a license to sell Pokemon cards?
You generally do not need a license to sell Pokémon cards, unless you’re planning to sell them by opening an in-person store. Check your local regulations to make sure you’re following any required guidelines.
How much is Charizard Pokemon card worth?
Charizard cards vary widely in value and can be worth anywhere from $25 to over $50,000. The Charizard Pokémon card that is worth the most is typically a mint condition 1st Edition from the base set.
What Pokemon cards are worth more than $100?
Some Pokémon cards worth more than $100 include rare Pokémon cards, such as first edition holographic cards from the original sets, high-grade cards, misprints, and promotional cards like the Pokémon Illustrator card.
What is the most expensive Pokemon card?
The most expensive Pokémon card varies over time; some examples include the Pokémon Illustrator card, the 1st Edition Charizard, or unique, one-of-a-kind promo cards handed out during official Pokémon events. The rarest Pokémon cards obviously cost more money and sell for more.
According to TCGplayer, the most expensive Pokémon cards include:
Pokémon World Championships No. 2 Trainer Promo
No. 2 Trainer Toshiyuki Yamaguchi (2000)
Neo Genesis 1st Edition Lugia (2000)
Super Secret Battle No. 1 Trainer (1999)
Family Event Trophy Kangaskhan (1998)
Test Print Blastoise Gold Border (1998)
Tsunekazu Ishihara Signed Promo (2017)
Trophy Pikachu No. 3 Trainer Bronze (1997)
Commissioned Presentation Blastoise Galaxy Star Holo (1998)
First Edition Shadowless Holographic Charizard #4 (1999)
Illustrator Pikachu (1998)
These were all sold for over $100,000 each.
Best Places To Sell Pokemon Cards – Summary
I hope you enjoyed this article on the best places to sell Pokémon cards and how to sell Pokémon cards for cash.
If you have Pokémon cards that you no longer want, there are many ways you can sell them. And, they may be worth a lot of money!
To figure out the value of the Pokémon cards that you want to sell, you’ll want to look at their rarity symbols, Pokémon card condition, grading (if applicable), and market comparisons. Understanding these factors will help you decide if your cards are worth selling and where to find the best prices.
Once your cards are sorted and evaluated, it’s now time to choose the best places to sell your Pokémon cards. Here are some popular options:
eBay – This site has millions of Pokémon cards sold every year. It’s a great place to find a worldwide audience, but remember to factor in shipping costs and eBay fees.
Facebook Marketplace and Pokémon Facebook Groups – Connect with local collectors or fans without worrying about shipping fees. This option may mean that you will meet the buyer in person.
Local comic shops – These stores can be an easy place to sell your cards, especially if they specialize in Pokémon cards or trading card games.
TCGplayer – Catering specifically to trading card game fans, this site has a dedicated space for buying and selling Pokémon cards.
Other options include Troll and Toad, Card Cavern, Dave & Adam’s, Sell2BBNovelties, pawn shops, and more.
Good luck selling your Pokémon cards!
What do you think is the best place to sell Pokemon cards for cash?
Setting up a bachelor pad often means preparing for the good, bad and ugly—weekend catch-ups, curated dinners and well, (even) unplanned visits. Having a space you can call your own is a blessing, more so if you’ve just begun adulting. While livening it up is often perceived as an investment that demands one to shell out big bucks, the key is to find creative ways and pay attention to detail. “While furniture is the foundation of a bachelor pad, it’s these finer details in decor that truly enhance the living experience and elevate a bachelor pad from simply being a space to live in, to a place that feels like a thoughtfully curated home,” opines Manjul Jayakumar, co-founder, Cananor Guild, a handcrafted luxury home decor brand, adding, “Beyond the usual furniture, your choice of bed linens, napkins, and table linen can make a marked difference in the ambiance. Good quality napkins, especially for the bar, are invaluable. They serve a functional purpose and add an air of sophistication during cocktail nights. As for those spontaneous nights when friends decide to stay over, having a few extra bath towels or at the very least having sets of hand and face towels is essential. This touch ensures that overnight guests feel comfortable.”
Hues To Choose
While the color palette may be minimal, young decorators are introducing textural interest through their choice of fabrics. Linens with different weaves, patterns, and finishes are favoured for their ability to add depth and character to the decor without overwhelming the space. “Youngsters are opting for neutral and monochromatic colour schemes in their home decor. Shades of white, beige, grey, and muted pastels dominate the scene. These colours not only create a serene atmosphere but also allow for easy mixing and matching of linens and cushions,” avers Aradhana Dalmia, founder of The Artemist, a new-age art consultancy.
A bachelor’s pad is a canvas for self-expression, where art and decor can merge to create something young and fun. “One can definitely play with some quirky sculptures, funky wallpapers and colour blocking. Bachelors would also love to have an area dedicated to entertainment which can be done up with some very cool and affordable artworks, such as our ‘deck of cards’ or ‘vintage chronicle’ series,” she says.
Common Mistakes To Avoid
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Latest Trends In Home Décor For Millennial Home Owners
As quality gathers weightage over quantity, sustainability over excess and personal expression within the boundaries of simplicity; multi-functional pieces like bed linens with storage pockets or table linens with spill-resistant coatings, are highly sought after today.
The demand for contemporary artworks, quirky sculptures, 3-D art or multi-functional installations is on the rise. However, it’s important to understand that your space should not only be Pinterest-worthy or café-like, but also functional and enjoyable for everyday living.
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